香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 CHINA INNOVATION INVESTMENT LIMITED 中 國 創 新 投 資 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ） （股份代號：1217） 截至二零二五年六月三十日止六個月 中期業績 中國創新投資有限公司（「本公司」）董事（「董事」）局（「董事局」）欣然公佈本公司截至 二零二五年六月三十日止六個月之未經審核中期業績連同二零二四年同期之比較數字如 下： 截至二零二五年六月三十日止六個月，本公司錄得營業額約為683,279,000港元（二零 二四年：269,660,000港元）。 截至二零二五年六月三十日止六個月，本公司之收益為約30,825,000港元，主要包括： 1 (i) 香港上市證券錄得股息收入約217,000港元。 (ii) 出售經損益按公平值計算之投資錄得已變現收益淨額約47,507,000港元。 (iii) 經損益按公平值計算之投資未變 ...

[Interim Results Overview](index=1&type=section&id=Interim%20Results%20Overview) Finsoft Financial Investment Holdings Limited announces its unaudited interim results for H1 2025, with shares listed on GEM for SMEs [Company Information and GEM Characteristics](index=1&type=section&id=Company%20Information%20and%20GEM%20Characteristics) Finsoft Financial Investment Holdings Limited announces its unaudited interim results for H1 2025, with shares listed on GEM for SMEs - The Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, have been announced[3](index=3&type=chunk) - The Company's shares are listed on GEM of The Stock Exchange of Hong Kong Limited, a platform for SMEs with higher investment risks and potential market volatility[8](index=8&type=chunk)[9](index=9&type=chunk)[12](index=12&type=chunk) - The Board of Directors collectively and individually accepts full responsibility for the accuracy and completeness of the information contained in this announcement[3](index=3&type=chunk)[11](index=11&type=chunk)[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's H1 2025 loss narrowed to HK$7,722 thousand, with revenue slightly up and gross profit increasing Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Revenue | 22,495 | 22,397 | | Cost of sales | (9,968) | (11,458) | | Gross profit | 12,527 | 10,939 | | Other income | 290 | 383 | | Other gains/(losses) | 1,030 | (3,456) | | Impairment loss (provision)/reversal for loans and interest receivables | (4,069) | 808 | | Administrative expenses | (17,066) | (18,323) | | Operating loss | (7,317) | (9,658) | | Finance costs | (94) | (148) | | Loss before tax | (7,427) | (9,819) | | Income tax expense | (295) | (69) | | Loss for the period | (7,722) | (9,888) | | Total comprehensive income for the period | (7,848) | (9,938) | | Basic and diluted loss per share (HK cents per share) | (1.53) | (6.34) | - Loss for the period narrowed to **HK$7,722 thousand**, a **21.9% decrease** from HK$9,888 thousand in the prior year[16](index=16&type=chunk)[17](index=17&type=chunk) - Gross profit increased by **14.5% to HK$12,527 thousand**, primarily due to a decrease in cost of sales[16](index=16&type=chunk) [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net assets decreased to HK$43,861 thousand, with net current assets at HK$35,623 thousand Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 712 | 1,099 | | Investment properties | 2,200 | 2,200 | | Right-of-use assets | 2,268 | 4,615 | | Intangible assets | 230 | 230 | | Investment in a joint venture | 54 | 70 | | Financial assets at fair value through other comprehensive income | 139 | 265 | | Loans and interest receivables | 2,669 | 2,892 | | Deferred tax assets | 136 | 113 | | **Current assets** | | | | Trade and other receivables | 5,751 | 9,103 | | Contract assets | 250 | – | | Loans and interest receivables | 28,182 | 33,925 | | Financial assets at fair value through profit or loss | 7,284 | 9,005 | | Consideration receivables | 3,512 | 3,543 | | Fixed deposits over three months | 200 | 1,000 | | Bank and cash balances | 13,435 | 10,857 | | **Current liabilities** | | | | Contract liabilities | 9,437 | 9,405 | | Accruals and other payables | 10,921 | 12,854 | | Current tax liabilities | 605 | 299 | | Lease liabilities | 2,028 | 3,973 | | **Non-current liabilities** | | | | Lease liabilities | 98 | 605 | | Deferred tax liabilities | 72 | 72 | | **Total equity** | 43,861 | 51,709 | - Net assets decreased from HK$51,709 thousand as of December 31, 2024, to **HK$43,861 thousand** as of June 30, 2025[20](index=20&type=chunk) - Net current assets were **HK$35,623 thousand**, a decrease from HK$40,902 thousand as of December 31, 2024[19](index=19&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to owners decreased to HK$43,861 thousand by June 30, 2025, primarily due to fair value losses and period loss Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Metric | Share Capital (HK$ '000) | Share Premium (HK$ '000) | Merger Reserve (HK$ '000) | Financial Assets at FVTOCI Reserve (HK$ '000) | Accumulated Losses (HK$ '000) | Total Equity (HK$ '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 (audited) | 25,212 | 236,883 | 78 | (38,052) | (172,412) | 51,709 | | Fair value change of financial assets at fair value through other comprehensive income | – | – | – | (126) | – | (126) | | Loss for the period | – | – | – | – | (7,722) | (7,722) | | Changes in equity for the period | – | – | – | (126) | (7,722) | (7,848) | | As of June 30, 2025 (unaudited) | 25,212 | 236,883 | 78 | (38,178) | (180,134) | 43,861 | - As of June 30, 2025, total equity was **HK$43,861 thousand**, a decrease of HK$7,848 thousand from the beginning of the year[22](index=22&type=chunk) - A fair value change loss of **HK$126 thousand** on financial assets at fair value through other comprehensive income was recorded during the period[22](index=22&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The Group generated net cash from operating and investing activities, with cash and cash equivalents increasing to HK$13,435 thousand Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 3,988 | (9,493) | | Net cash generated from/(used in) investing activities | 1,048 | (871) | | Net cash (used in)/generated from financing activities | (2,458) | 24,519 | | Net increase in cash and cash equivalents | 2,578 | 14,155 | | Cash and cash equivalents at beginning of period | 10,857 | 9,214 | | Cash and cash equivalents at end of period | 13,435 | 23,369 | - Operating activities generated a net cash inflow of **HK$3,988 thousand**, a turnaround from a net cash outflow of HK$9,493 thousand in the prior year[25](index=25&type=chunk) - Cash and cash equivalents at period-end were **HK$13,435 thousand**, an increase of HK$2,578 thousand from the beginning of the period[25](index=25&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the Group's accounting policies, revenue disaggregation, segment information, and other financial statement notes [General Information and Basis of Preparation](index=10&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The Group's core businesses are in financial software, IT, lending, and asset investment, with financials prepared under HKAS 34 - The Group's principal activities include financial trading software solutions, IT and internet financial platform services, money lending business, and asset investment[27](index=27&type=chunk)[30](index=30&type=chunk) - The financial statements are presented in Hong Kong dollars and comply with HKAS 34 "Interim Financial Reporting" and the GEM Listing Rules[28](index=28&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - The accounting policies adopted are consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2024[29](index=29&type=chunk)[31](index=31&type=chunk) [Accounting Standards and Fair Value Measurements](index=11&type=section&id=Accounting%20Standards%20and%20Fair%20Value%20Measurements) The Group adopted HKAS 21 (Amendment) from January 1, 2025, with financial assets and liabilities measured at fair value using a three-level hierarchy - The Group first applied HKAS 21 (Amendment) "Lack of Exchangeability" from January 1, 2025, without changing accounting policies or making retrospective adjustments[32](index=32&type=chunk)[38](index=38&type=chunk) - The carrying amounts of financial assets and liabilities approximate their fair values[33](index=33&type=chunk)[39](index=39&type=chunk) Fair Value Hierarchy Disclosure (As of June 30) | Category | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | **Non-financial assets** | | | | Investment properties (Level 2) | 2,200 | 2,200 | | **Financial assets** | | | | Financial assets at fair value through profit or loss (Level 1) | 7,284 | 9,005 | | Financial assets at fair value through other comprehensive income (Level 1) | 139 | 265 | | **Total** | 9,623 | 11,470 | [Disaggregation of Revenue](index=13&type=section&id=Disaggregation%20of%20Revenue) Total revenue for H1 2025 was HK$22,495 thousand, with customer contracts and loan financing interest as key contributors Disaggregation of Revenue by Major Service Line (For the six months ended June 30) | Service Line | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Sales of goods | 31 | 857 | | Sales of technical software systems | 2,269 | 1,021 | | System customisation and network support | 2,643 | 2,718 | | Software licensing fees | 9,609 | 9,571 | | Software maintenance services | 4,882 | 4,971 | | Server hosting and related service fees | 1,527 | 1,771 | | Outsourcing service fees | – | 566 | | **Total revenue from contracts with customers** | **20,961** | **21,475** | | Interest income from loan financing | 1,534 | 922 | | **Total revenue** | **22,495** | **22,397** | - Interest income from loan financing increased from HK$922 thousand in 2024 to **HK$1,534 thousand** in 2025, an increase of approximately **66.4%**[45](index=45&type=chunk) - Revenue recognition for financial trading software solutions remained stable, with the largest proportion recognized over time[46](index=46&type=chunk) [Segment Information](index=14&type=section&id=Segment%20Information) The Group operates five segments, with financial software as the main revenue source, significant growth in lending, and asset investment turning profitable - The Group has five operating segments: financial trading software solutions, other IT and internet financial platform services, money lending, asset investment, and others[47](index=47&type=chunk)[51](index=51&type=chunk) Segment Revenue and Profit/(Loss) (For the six months ended June 30) | Segment | 2025 Revenue (HK$ '000) | 2024 Revenue (HK$ '000) | 2025 Profit/(Loss) (HK$ '000) | 2024 Profit/(Loss) (HK$ '000) | | :--- | :--- | :--- | :--- | :--- | | Financial trading software solutions | 20,961 | 21,475 | 2,711 | 948 | | Other IT and internet financial platform services | – | – | (16) | (610) | | Money lending | 1,534 | 922 | (3,702) | 784 | | Asset investment | – | – | 973 | (3,464) | | Others | – | – | (1,658) | (1,171) | | **Total** | **22,495** | **22,397** | **(1,692)** | **(3,513)** | - Revenue from the financial trading software solutions segment slightly decreased by **2.4%**, but segment profit significantly increased[53](index=53&type=chunk) - Money lending segment revenue increased by **66.4%**, but segment loss widened[53](index=53&type=chunk) - The asset investment segment turned from a loss of HK$3,464 thousand in the prior year to a profit of **HK$973 thousand** in the current period[53](index=53&type=chunk) [Other Income and Gains/(Losses)](index=17&type=section&id=Other%20Income%20and%20Gains%2F%28Losses%29) Other income was HK$290 thousand, and other gains/losses recorded a HK$1,030 thousand gain, driven by fair value gains on listed equity investments Other Income (For the six months ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Interest income from bank deposits | 17 | 109 | | Rental income | 25 | 25 | | Interest on consideration receivables | 248 | 249 | | **Total** | **290** | **383** | Other Gains/(Losses) (For the six months ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Net fair value gain/(loss) on financial assets at fair value through profit or loss – listed equity investments | 995 | (3,422) | | Net exchange differences | 34 | – | | Reversal/(provision) for impairment loss on trade receivables | 1 | (34) | | **Total** | **1,030** | **(3,456)** | - Financial assets at fair value through profit or loss (listed equity investments) turned from a loss of HK$3,422 thousand in the prior year to a gain of **HK$995 thousand** in the current period[61](index=61&type=chunk) [Finance Costs and Loss for the Period](index=18&type=section&id=Finance%20Costs%20and%20Loss%20for%20the%20Period) Finance costs decreased to HK$94 thousand, and the period's loss is calculated after various deductions including depreciation and staff costs Finance Costs (For the six months ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Interest on lease liabilities | 94 | 148 | Loss for the Period Deductions (For the six months ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 435 | 768 | | Depreciation of right-of-use assets | 2,347 | 2,061 | | Lease payments not included in the measurement of lease liabilities | 177 | 458 | | Staff costs (including directors' emoluments) | 17,943 | 18,179 | - Staff costs (including directors' emoluments) amounted to **HK$17,943 thousand**, of which HK$8,515 thousand was included in cost of sales[66](index=66&type=chunk)[67](index=67&type=chunk) [Income Tax Expenses and Dividend](index=19&type=section&id=Income%20Tax%20Expenses%20and%20Dividend) Income tax expense was HK$295 thousand, mainly Hong Kong current tax, and no interim dividend is recommended Income Tax Expenses (For the six months ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Current tax – Hong Kong | 318 | 93 | | Deferred tax | (23) | (24) | | **Income tax expense** | **295** | **69** | - Under Hong Kong's two-tiered profits tax regime, the first **HK$2,000,000** of assessable profits is taxed at **8.25%**, and the remainder at **16.5%**[70](index=70&type=chunk)[73](index=73&type=chunk) - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025[72](index=72&type=chunk)[74](index=74&type=chunk) [Loss Per Share](index=20&type=section&id=Loss%20Per%20Share) Loss attributable to owners was HK$7,722 thousand, resulting in a basic and diluted loss per share of HK$1.53 cents Loss Per Share Calculation (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (HK$ '000) | (7,722) | (9,888) | | Weighted average number of ordinary shares ('000 shares) | 504,233 | 155,968 | | Basic and diluted loss per share (HK cents per share) | (1.53) | (6.34) | - Basic and diluted loss per share significantly improved from **HK$6.34 cents** in the prior year to **HK$1.53 cents** in the current period[76](index=76&type=chunk) - The weighted average number of ordinary shares significantly increased from 155,968 thousand shares to **504,233 thousand shares** due to the rights issue[76](index=76&type=chunk) [Property, Plant and Equipment and Right-of-Use Assets](index=20&type=section&id=Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) PPE acquisitions decreased to HK$48 thousand, and new office lease agreements in H1 2024 led to HK$2,152 thousand in right-of-use assets - Acquisitions of property, plant and equipment amounted to **HK$48 thousand** during the period, an **82.7% decrease** from HK$278 thousand in the prior year[77](index=77&type=chunk)[79](index=79&type=chunk) - In the first half of 2024, the Group entered into a new two-year lease agreement for office premises, recognizing **HK$2,152 thousand** in right-of-use assets and lease liabilities[78](index=78&type=chunk)[80](index=80&type=chunk) [Trade and Other Receivables](index=21&type=section&id=Trade%20and%20Other%20Receivables) Trade and other receivables decreased to HK$5,751 thousand, with net trade receivables at HK$1,592 thousand, primarily within 30 days Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Trade receivables (net) | 1,592 | 4,839 | | Other receivables | 752 | 645 | | Amounts due from an associate | – | 100 | | Deposits | 1,726 | 1,776 | | Prepayments | 1,681 | 1,743 | | **Total** | **5,751** | **9,103** | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | 0 – 30 days | 975 | 3,560 | | 31 – 60 days | 60 | 252 | | 61 – 90 days | 118 | 722 | | 91 – 120 days | 238 | 156 | | Over 120 days | 201 | 149 | | **Total** | **1,592** | **4,839** | - Net trade receivables significantly decreased from HK$4,839 thousand as of December 31, 2024, to **HK$1,592 thousand** as of June 30, 2025[82](index=82&type=chunk) [Loan and Interest Receivables](index=22&type=section&id=Loan%20and%20Interest%20Receivables) Loans and interest receivables decreased to HK$30,851 thousand, with a HK$4,069 thousand impairment provision due to reclassification of unsecured loans Loans and Interest Receivables (As of June 30) | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Loans receivable (net) | 29,585 | 35,677 | | Interest receivable (net) | 1,266 | 1,140 | | **Total loans and interest receivables** | **30,851** | **36,817** | | Less: Non-current portion | (2,669) | (2,892) | | **Loans and interest receivables (current portion)** | **28,182** | **33,925** | - Impairment loss provision for loans and interest receivables was **HK$4,069 thousand** during the period, compared to a reversal of HK$808 thousand in the prior year[16](index=16&type=chunk)[87](index=87&type=chunk) - The increase in impairment loss provision was primarily due to three unsecured personal loans moving from Stage 2 to Stage 3 under the expected credit loss model[131](index=131&type=chunk) Maturity Profile of Loans Receivable (As of June 30) | Maturity | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Overdue | 17,384 | 21,073 | | Due within 3 months | 7,014 | 2,021 | | Due after 3 months but within 6 months | 1,655 | 4,789 | | Due after 6 months but within 12 months | 863 | 4,902 | | Due after 12 months | 2,669 | 2,892 | | **Total** | **29,585** | **35,677** | [Accruals and Other Payables](index=25&type=section&id=Accruals%20and%20Other%20Payables) Accruals and other payables decreased to HK$10,921 thousand, mainly comprising customer deposits and bonus provisions Accruals and Other Payables (As of June 30) | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Customer deposits | 6,843 | 6,944 | | Bonus provision | 1,414 | 3,083 | | Accrued expenses and other payables | 2,640 | 2,803 | | Retirement benefit obligations | 24 | 24 | | **Total** | **10,921** | **12,854** | - Bonus provisions decreased from HK$3,083 thousand as of December 31, 2024, to **HK$1,414 thousand** as of June 30, 2025[98](index=98&type=chunk) [Share Capital](index=25&type=section&id=Share%20Capital) Authorized share capital is HK$100,000 thousand, with issued capital at HK$25,212 thousand after a 2024 rights issue Share Capital Movements (As of June 30) | Item | Number of Shares ('000) | Par Value of Shares (HK$ '000) | | :--- | :--- | :--- | | **Authorised:** | | | | As of January 1, 2024 | 200,000 | 10,000 | | Increase in authorised share capital | 1,800,000 | 90,000 | | As of June 30, 2025 | 2,000,000 | 100,000 | | **Issued and fully paid:** | | | | As of January 1, 2024 | 126,058 | 6,303 | | Shares issued through rights issue | 378,175 | 18,909 | | As of June 30, 2025 | 504,233 | 25,212 | - On January 16, 2024, authorized share capital increased from HK$10,000 thousand to **HK$100,000 thousand**[100](index=100&type=chunk)[104](index=104&type=chunk) - The rights issue of **378,174,702 new shares** contributed HK$18,909 thousand to share capital and HK$7,602 thousand to share premium, respectively[100](index=100&type=chunk)[104](index=104&type=chunk) [Related Party Transactions](index=26&type=section&id=Related%20Party%20Transactions) Directors' emoluments were HK$1,996 thousand, and a HK$2,800 thousand loan to a related company was extended Directors' Emoluments (For the six months ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Short-term benefits | 1,996 | 1,961 | - Loans receivable included a principal amount of **HK$2,800 thousand** lent to a related company, with its maturity date extended on December 23, 2024[90](index=90&type=chunk)[91](index=91&type=chunk) [Operating Lease Commitment](index=27&type=section&id=Operating%20Lease%20Commitment) The Group has no outstanding lessee lease commitments but has a one-year lessor operating lease for investment properties - As of June 30, 2025, the Group, as lessee, had no outstanding lease commitments related to unrecognized office units (December 31, 2024: HK$415 thousand)[105](index=105&type=chunk)[106](index=106&type=chunk) - As lessor, the Group's operating lease for investment properties has a **1-year term**, extendable by one year, with no right for the lessee to purchase the property at lease expiry[107](index=107&type=chunk) Minimum Lease Payments Receivable (As of June 30) | Item | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Within one year | 11 | 24 | [Events After the Reporting Period](index=27&type=section&id=Events%20After%20the%20Reporting%20Period) Post-period, the Group entered new and renewed lease agreements for properties in Shenzhen and Hong Kong - On August 6, 2025, the Company's wholly-owned subsidiary entered into a China lease agreement for a Shenzhen property for **two years**[110](index=110&type=chunk)[111](index=111&type=chunk) - On August 7, 2025, the Company renewed a Hong Kong property lease agreement for **three years**[112](index=112&type=chunk)[115](index=115&type=chunk) - Under HKFRS 16 "Leases", these lease transactions are treated as asset acquisitions, requiring recognition of right-of-use asset values[113](index=113&type=chunk)[115](index=115&type=chunk) [Management Discussion and Analysis](index=29&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, financial position, and future outlook [Business Review](index=29&type=section&id=Business%20Review) The Group's core businesses include financial software, IT, lending, and asset investment, with a focus on diversification and new technologies - The Group's principal activities include financial trading software solutions, IT and internet financial platform services, money lending business, and asset investment[117](index=117&type=chunk)[122](index=122&type=chunk) - The Hong Kong economy continued steady growth in Q2 2025, supported by government measures to boost consumption and attract investment[118](index=118&type=chunk)[123](index=123&type=chunk] - The Group actively explores new opportunities, participating in IT service tenders for AI, blockchain technology, and application development to diversify revenue[119](index=119&type=chunk)[123](index=123&type=chunk)[127](index=127&type=chunk)[130](index=130&type=chunk) [Financial Trading Software Solutions](index=29&type=section&id=Financial%20Trading%20Software%20Solutions) Financial software solutions remain the main revenue source, despite a 2.4% decrease, with plans to expand the Shenzhen R&D team - The financial trading software solutions business segment remains the Group's primary revenue source[120](index=120&type=chunk)[124](index=124&type=chunk) Financial Trading Software Solutions Revenue (For the six months ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Segment revenue from external customers | 20,961 | 21,475 | - Revenue decreased by approximately **2.4%**, mainly due to reduced revenue from sales of goods and server hosting projects and related service fees[120](index=120&type=chunk)[124](index=124&type=chunk) - The Group plans to expand its Shenzhen R&D team to further enhance research and customer support capabilities[125](index=125&type=chunk)[129](index=129&type=chunk) [Other IT and Internet Financial Platforms Services](index=30&type=section&id=Other%20IT%20and%20Internet%20Financial%20Platforms%20Services) This segment generated no revenue but actively seeks IT service tenders in AI and blockchain, anticipating future positive results - During the period, the segment providing other IT and internet financial platform services generated **no revenue**[126](index=126&type=chunk)[130](index=130&type=chunk) - The Group actively seeks opportunities and participates in tenders for other IT services, including artificial intelligence, blockchain technology, and application development[127](index=127&type=chunk)[130](index=130&type=chunk) - Some opportunities are expected to materialize into transactions, generating positive results in the coming years[127](index=127&type=chunk)[130](index=130&type=chunk) [Money Lending Business](index=30&type=section&id=Money%20Lending%20Business) Money lending revenue grew 66.4% to HK$1,534 thousand, but a HK$4,069 thousand impairment provision was recorded due to reclassified unsecured loans Money Lending Business Revenue (For the six months ended June 30) | Item | 2025 (HK$ '000) | 2024 (HK$ '000) | | :--- | :--- | :--- | | Revenue generated from money lending business segment | 1,534 | 922 | - Revenue increased by approximately **66.4%**, with interest rates ranging from **8% to 35.5% per annum**[128](index=128&type=chunk)[131](index=131&type=chunk) - An impairment loss provision of approximately **HK$4,069 thousand** for loans and interest receivables was recorded, mainly due to three unsecured personal loans moving from Stage 2 to Stage 3 under the expected credit loss model[128](index=128&type=chunk)[131](index=131&type=chunk) - The Group has implemented adequate internal control policies and operational manuals to minimize credit and default risks[132](index=132&type=chunk)[136](index=136&type=chunk) [Assets Investments](index=32&type=section&id=Assets%20Investments) Securities investments at FVTPL decreased to HK$7,284 thousand but generated a HK$995 thousand net gain, improving from a prior-year loss - The carrying amount of securities investments at fair value through profit or loss decreased from HK$9,005 thousand as of December 31, 2024, to **HK$7,284 thousand** as of June 30, 2025[138](index=138&type=chunk)[142](index=142&type=chunk) - A net fair value change gain of approximately **HK$995 thousand** was recognized from securities investments during the period, compared to a net loss of approximately HK$3,422 thousand in the prior year[138](index=138&type=chunk)[142](index=142&type=chunk) - The Directors anticipate continued volatility in the Hong Kong stock market, and the Group will maintain a **cautious investment strategy**[139](index=139&type=chunk)[142](index=142&type=chunk) [Other Investments](index=32&type=section&id=Other%20Investments) Shares in China Parenting Network decreased to HK$139 thousand, with a HK$126 thousand fair value loss transferred to FVTOCI reserve - The Group holds **3,307,000 ordinary shares** in China Parenting Network Holdings Limited, representing approximately **0.96%** of its issued shares[140](index=140&type=chunk)[143](index=143&type=chunk) - The fair value of China Parenting Network shares was approximately **HK$139 thousand**, a decrease from HK$265 thousand as of December 31, 2024[141](index=141&type=chunk)[143](index=143&type=chunk) - A fair value loss of approximately **HK$126 thousand** was transferred to the financial assets at fair value through other comprehensive income reserve during the period[141](index=141&type=chunk)[143](index=143&type=chunk) [Financial Review](index=33&type=section&id=Financial%20Review) Revenue slightly increased to HK$22,495 thousand, gross profit rose, administrative expenses decreased, and net loss after tax narrowed to HK$7,722 thousand - Revenue for the period was approximately **HK$22,495 thousand**, an increase of approximately **0.4%** year-on-year, primarily due to the combined effect of increased money lending revenue and decreased financial trading software solutions revenue[144](index=144&type=chunk)[149](index=149&type=chunk) - Gross profit was approximately **HK$12,527 thousand**, an increase of approximately **14.5%** year-on-year; gross margin was approximately **55.7%**, an increase of approximately **6.9 percentage points** year-on-year, mainly due to increased gross margin in financial trading software solutions and cost control[145](index=145&type=chunk)[149](index=149&type=chunk) - An impairment loss provision of approximately **HK$4,069 thousand** for loans and interest receivables was recorded during the period, compared to a reversal of approximately HK$808 thousand in the prior year[146](index=146&type=chunk)[150](index=150&type=chunk) - Administrative expenses were approximately **HK$17,066 thousand**, a decrease of approximately **6.8%** year-on-year, mainly due to the implementation of cost control and efficiency improvement measures[151](index=151&type=chunk)[156](index=156&type=chunk) - Net loss after tax for the period was approximately **HK$7,722 thousand**, a decrease from HK$9,888 thousand in the prior year, primarily benefiting from increased gross profit, a turnaround in fair value of financial assets, and reduced administrative expenses[152](index=152&type=chunk)[157](index=157&type=chunk) [Financial Resources, Liquidity and Capital Structure](index=34&type=section&id=Financial%20Resources%2C%20Liquidity%20and%20Capital%20Structure) The Group maintains a sound financial position with HK$13,435 thousand in cash, a 2.5x current ratio, and low gearing Financial Resources Overview (As of June 30) | Metric | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Bank and cash balances | 13,435 | 10,857 | | Net current assets | 35,623 | 40,902 | | Current ratio (times) | 2.5 | 2.5 | | Total borrowings | 478 | 692 | | Gearing ratio | 0.01 | 0.01 | - Approximately **97.6%** of cash and cash equivalents were denominated in HKD, with the remainder in RMB[153](index=153&type=chunk)[158](index=158&type=chunk) - The bank finance lease has an effective annual interest rate of **4.83%** and is due for settlement on October 27, 2026[154](index=154&type=chunk)[158](index=158&type=chunk) [Treasury and Funding Policies](index=35&type=section&id=Treasury%20and%20Funding%20Policies) The Group prudently manages treasury and funding to ensure continuous operation and maximize shareholder returns - The Group adopts a prudent approach to its treasury and funding policies, effectively managing and supervising financial and fundraising activities[160](index=160&type=chunk)[166](index=166&type=chunk) - Capital is managed to ensure continuous operation and maximize shareholder returns by optimizing the debt and equity balance[160](index=160&type=chunk)[166](index=166&type=chunk) [Foreign Exchange Exposure](index=35&type=section&id=Foreign%20Exchange%20Exposure) The Group's HKD-denominated activities posed no significant foreign exchange risk, and no hedging instruments were used - The Group's business activities were primarily denominated in Hong Kong dollars during the period[161](index=161&type=chunk)[167](index=167&type=chunk) - The Directors believe the Group was not exposed to any significant foreign exchange risk[161](index=161&type=chunk)[167](index=167&type=chunk) - The Group did not adopt any financial instruments for hedging purposes during the period[161](index=161&type=chunk)[167](index=167&type=chunk) [Contingent Liabilities and Capital Commitments](index=35&type=section&id=Contingent%20Liabilities%20and%20Capital%20Commitments) As of June 30, 2025, the Group had no contingent liabilities or capital commitments - As of June 30, 2025, the Group had **no contingent liabilities**[162](index=162&type=chunk)[168](index=168&type=chunk) - As of June 30, 2025, the Group had **no capital commitments**[163](index=163&type=chunk)[169](index=169&type=chunk) [Capital Structure and Fund Raising Activities](index=35&type=section&id=Capital%20Structure%20and%20Fund%20Raising%20Activities) The Company increased authorized capital and raised HK$27.98 million via a 2024 rights issue, fully utilized for R&D, team expansion, and working capital - On December 5, 2023, the Board proposed increasing authorized share capital to **HK$100,000 thousand** and raising approximately **HK$27.98 million** through a rights issue[164](index=164&type=chunk)[170](index=170&type=chunk) - The rights issue and placing were completed on February 28, 2024, issuing **378,174,702 ordinary shares** and raising net proceeds of approximately **HK$26.51 million**[171](index=171&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - The net proceeds from the rights issue were primarily used to support the Shenzhen R&D center, expand the Hong Kong team, develop new IT system products, and for general working capital[173](index=173&type=chunk)[176](index=176&type=chunk) Utilization of Net Proceeds from Rights Issue (As of June 30) | Planned Use | Planned Use (HK$ million) | Unutilized Proceeds as of January 1, 2025 (HK$ million) | Proceeds Utilized as of June 30, 2025 (HK$ million) | | :--- | :--- | :--- | :--- | | Support Shenzhen R&D center | 9.40 | 2.54 | 9.40 | | Expand and support Hong Kong team | 7.10 | 2.41 | 7.10 | | Develop new IT system products | 7.20 | 1.87 | 7.20 | | General working capital | 2.81 | – | 2.81 | | **Total** | **26.51** | **6.82** | **26.51** | [Charges on Assets and Material Acquisition and Disposal](index=37&type=section&id=Charges%20on%20Assets%20and%20Material%20Acquisition%20and%20Disposal) The Group had no significant asset charges or material acquisition/disposal transactions during the period - As of June 30, 2025, the Group had **no significant charges on assets**[179](index=179&type=chunk)[181](index=181&type=chunk) - During the period, the Group did not undertake any **material acquisition or disposal transactions**[180](index=180&type=chunk)[182](index=182&type=chunk) [Dividend](index=38&type=section&id=Dividend) The Board does not recommend any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the period[183](index=183&type=chunk)[189](index=189&type=chunk) [Employees and Remuneration Policy](index=38&type=section&id=Employees%20and%20Remuneration%20Policy) The Group had 66 employees, with remuneration based on performance and industry practice, and total employee benefits of HK$17,943 thousand - As of June 30, 2025, the Group had **66 employees**, consistent with December 31, 2024[184](index=184&type=chunk)[190](index=190&type=chunk) - The Group maintains and enhances employee capabilities by providing adequate and regular training[184](index=184&type=chunk)[190](index=190&type=chunk) - Total employee benefit expenses (including directors' emoluments) for the period were approximately **HK$17,943 thousand**[184](index=184&type=chunk)[190](index=190&type=chunk) [Events after the Reporting Period](index=38&type=section&id=Events%20after%20the%20Reporting%20Period) Post-period, the Group entered new and renewed lease agreements for properties in Shenzhen and Hong Kong - On August 6, 2025, the Company's wholly-owned subsidiary entered into a China lease agreement for a Shenzhen property for **two years**[186](index=186&type=chunk)[191](index=191&type=chunk) - On August 7, 2025, the Company renewed a Hong Kong property lease agreement for **three years**[187](index=187&type=chunk)[191](index=191&type=chunk) - Under HKFRS 16 "Leases", these lease transactions are treated as asset acquisitions, requiring recognition of right-of-use asset values[188](index=188&type=chunk)[192](index=192&type=chunk) [Prospect](index=39&type=section&id=Prospect) Amid high interest rates, the Group will consolidate its IT position, diversify, explore investments, and maintain a prudent lending approach - In a global high-interest rate environment, risk appetite for corporate investment, business expansion, and individual consumption is expected to remain **conservative**[193](index=193&type=chunk)[197](index=197&type=chunk) - The Group will continue to consolidate its position in the IT industry, pursue business diversification, and actively explore suitable investment opportunities[194](index=194&type=chunk)[197](index=197&type=chunk) - The money lending business will adopt a **prudent approach** to granting new loans and actively recover existing loans and related interest[195](index=195&type=chunk)[197](index=197&type=chunk) [Other Information](index=39&type=section&id=Other%20Information) This section covers directors' and substantial shareholders' interests, securities transactions, corporate governance, and other relevant disclosures [Directors' and Chief Executive's Interests](index=39&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests) Executive Director Ms. Tian Yiyu beneficially owns 28.93% of the Company's shares, with no other disclosable interests Directors' and Chief Executive's Interests in Shares (As of June 30) | Name of Director | Capacity/Nature of Interest | Number of Shares Interested | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Ms. Tian Yiyu | Beneficial owner | 145,868,000 (L) | 28.93 | - Save for Ms. Tian Yiyu, no other directors or chief executives held any interests or short positions required to be disclosed under SFO Section 352 or GEM Listing Rules 5.46 to 5.67[200](index=200&type=chunk)[202](index=202&type=chunk) [Substantial Shareholders' Interests](index=40&type=section&id=Substantial%20Shareholders%27%20Interests) Substantial shareholder Mr. Zhang Xiongfeng beneficially owns 12.37% of the Company's shares, with no other disclosable interests Substantial Shareholders' Interests in Shares (As of June 30) | Name of Shareholder | Capacity/Nature of Interest | Number of Shares Interested | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Zhang Xiongfeng | Beneficial owner | 62,394,000 (L) | 12.37 | - Save for Mr. Zhang Xiongfeng, the Directors are not aware of any other persons holding interests or short positions required to be disclosed under SFO Section 336[204](index=204&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=41&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[206](index=206&type=chunk)[213](index=213&type=chunk) [Directors' Securities Transactions](index=41&type=section&id=Directors%27%20Securities%20Transactions) All directors confirmed compliance with the Company's securities transaction code and GEM Listing Rules during the period - The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than those required by the GEM Listing Rules[207](index=207&type=chunk)[214](index=214&type=chunk) - Following specific enquiry, all directors confirmed compliance with the required dealing standards and the code of conduct during the period[207](index=207&type=chunk)[214](index=214&type=chunk) [Corporate Governance Practices](index=41&type=section&id=Corporate%20Governance%20Practices) The Company complied with all applicable corporate governance code provisions of the GEM Listing Rules during the period - During the period, the Company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 Part 2 of the GEM Listing Rules then in effect[208](index=208&type=chunk)[215](index=215&type=chunk) [Competing Interests](index=41&type=section&id=Competing%20Interests) Executive Director Ms. Tian Yiyu has a competing interest in a money lending company; no other directors have such interests - Executive Director Ms. Tian Yiyu is a director of Rich Finance Company Limited, which primarily engages in money lending, creating a competing interest with the Group's business[209](index=209&type=chunk)[216](index=216&type=chunk) - Save for the above disclosure, no other directors or their close associates held any business or interest that directly or indirectly constitutes or may constitute competition with the Group's business[210](index=210&type=chunk)[216](index=216&type=chunk) [Change of Directors and Changes in Directors' Information](index=41&type=section&id=Change%20of%20Directors%20and%20Changes%20in%20Directors%27%20Information) Director changes include new appointments for executive and independent non-executive roles, and a name change for an executive director - Effective April 1, 2025, Mr. Lam Ting resigned as Executive Director, and Mr. Yu Kwan Nam was appointed as Executive Director[211](index=211&type=chunk)[217](index=217&type=chunk) - Effective April 1, 2025, Ms. Li Kwan Ling resigned as Independent Non-executive Director, and Mr. Hung Ka Hei was appointed as Independent Non-executive Director[211](index=211&type=chunk)[217](index=217&type=chunk) - Effective May 22, 2025, Ms. Liu Mengting, Executive Director and Chief Executive Officer, changed her name to Ms. Tian Huanxin[219](index=219&type=chunk)[225](index=225&type=chunk) [Audit Committee](index=42&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviews financial information and oversees reporting, risk, and internal controls - The Audit Committee was established on September 10, 2013, with primary responsibilities including reviewing the Company's financial information and overseeing financial reporting, risk management, and internal control systems[222](index=222&type=chunk)[226](index=226&type=chunk) - The Audit Committee comprises three independent non-executive directors: Mr. Hon Ming Sang (Chairman), Mr. Tang Shu Pui, and Mr. Hung Ka Hei[223](index=223&type=chunk)[226](index=226&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated results for the period and this report, deeming them compliant with applicable accounting standards and requirements[224](index=224&type=chunk)[226](index=226&type=chunk)

Company Announcements and Financial Summary [Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) The company announced its unaudited condensed consolidated results for the six months ended June 30, 2025, reviewed by the audit committee - The company announced its unaudited condensed consolidated results for the six months ended June 30, 2025[3](index=3&type=chunk) - The interim financial statements have been reviewed by the company's audit committee[3](index=3&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue increased by 20.6%, but gross profit fell 35.8%, leading to a net loss of HK$3,297 thousand, with a basic and diluted loss per share of 1.18 HK cents Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | June 30, 2025 (HK$ '000) | June 30, 2024 (HK$ '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 567,357 | 470,383 | +20.6% | | Cost of sales | (550,797) | (444,574) | +23.9% | | Gross profit | 16,560 | 25,809 | -35.8% | | (Loss) Profit before tax | (3,199) | 5,449 | -158.7% | | (Loss) Profit for the period | (3,297) | 4,140 | -179.6% | | (Loss) Earnings per share (HK cents) | (1.18) | 1.47 | -180.3% | - Total comprehensive income attributable to owners of the company for the period was **HK$127 thousand**, a significant decrease from **HK$5,206 thousand** in the prior year[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets slightly increased, but net current assets and total assets less current liabilities decreased, with a significant rise in current liabilities Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | Change (HK$ '000) | | :--- | :--- | :--- | :--- | | Non-current assets | 23,250 | 25,400 | (2,150) | | Current assets | 194,805 | 179,255 | 15,550 | | Current liabilities | 48,133 | 27,616 | 20,517 | | Net current assets | 146,672 | 151,639 | (4,967) | | Net assets | 166,907 | 170,980 | (4,073) | | Bank balances and cash | 82,543 | 81,042 | 1,501 | - Trade payables, other payables, and accruals increased from **HK$23,127 thousand** as of December 31, 2024, to **HK$40,815 thousand** as of June 30, 2025[5](index=5&type=chunk) - Dividends payable increased from nil to **HK$4,200 thousand**[5](index=5&type=chunk) Notes to the Financial Statements [Basis of Preparation and Accounting Policies](index=3&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated financial statements are prepared under HKAS 34, with consistent accounting policies and no material impact from new HKFRS amendments - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and Appendix 16 of the Listing Rules[6](index=6&type=chunk) - These condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[7](index=7&type=chunk) - The application of HKFRS amendments during the period had no material impact on the group's financial position, performance, or disclosures[8](index=8&type=chunk) [Segment Reporting and Revenue](index=3&type=section&id=Segment%20Reporting%20and%20Revenue) The group primarily sells mobile phones in Hong Kong; no segment information is presented due to focus on brand-based revenue analysis, with revenue mainly from distribution and retail sales - The group is principally engaged in the sale and distribution of mobile phones and related products in Hong Kong[9](index=9&type=chunk) - No segment information is presented beyond entity-wide disclosures, as no separate financial information other than the group's consolidated revenue and profit is provided[9](index=9&type=chunk) - Revenue represents the net amounts received and receivable from the sale of goods arising from the distribution and retail sales of mobile phones and related products[10](index=10&type=chunk) [(Loss) Profit Before Tax and Income Tax Expense](index=4&type=section&id=%28Loss%29%20Profit%20Before%20Tax%20and%20Income%20Tax%20Expense) The company recorded a pre-tax loss of HK$3,199 thousand, with increased inventory costs and significantly reduced income tax expense, reflecting lower profitability Components of (Loss) Profit Before Tax | Item | June 30, 2025 (HK$ '000) | June 30, 2024 (HK$ '000) | | :--- | :--- | :--- | | Cost of inventories recognized as an expense | 550,797 | 444,574 | | Reversal of impairment loss under expected credit loss model | (218) | (46) | | Depreciation of property, plant and equipment | 68 | 397 | | Depreciation of right-of-use assets | 1,677 | 1,149 | | Dividend income | (400) | (325) | | Exchange (gain) loss, net | (11) | 391 | | Interest income from bank deposits | (630) | (1,274) | | Interest expense on lease liabilities | 214 | 179 | Income Tax Expense | Item | June 30, 2025 (HK$ '000) | June 30, 2024 (HK$ '000) | | :--- | :--- | :--- | | Hong Kong profits tax—current period | 98 | 1,309 | - Hong Kong profits tax is calculated at a two-tiered rate: **8.25%** on the first **HK$2,000,000** of assessable profits and **16.5%** on the remaining portion[12](index=12&type=chunk) [(Loss) Earnings Per Share](index=4&type=section&id=%28Loss%29%20Earnings%20Per%20Share) Basic and diluted loss per share was 1.18 HK cents, based on a group loss of HK$3,297 thousand and 280,000 thousand ordinary shares, with no dilutive shares (Loss) Earnings Per Share | Metric | June 30, 2025 (HK cents) | June 30, 2024 (HK cents) | | :--- | :--- | :--- | | Basic and diluted (loss) earnings per share | (1.18) | 1.47 | - The number of ordinary shares used for calculating basic and diluted (loss) earnings per share was **280,000 thousand**[14](index=14&type=chunk) - Diluted (loss) earnings per share for the six months ended June 30, 2025, and 2024, was the same as basic (loss) earnings per share due to the absence of potential dilutive shares during the interim period[14](index=14&type=chunk) [Dividend Policy](index=5&type=section&id=Dividend%20Policy) The company recognized a final dividend of 1.5 HK cents per share for 2024, totaling HK$4,200 thousand, but the board did not recommend an interim dividend - Dividends recognized for the six months ended June 30, 2025, included a final dividend of **1.5 HK cents** per share for the year ended December 31, 2024, totaling **HK$4,200 thousand**[15](index=15&type=chunk) - The directors did not recommend an interim dividend for the six months ended June 30, 2025 (2024: nil)[15](index=15&type=chunk) [Analysis of Trade and Other Receivables and Payables](index=5&type=section&id=Analysis%20of%20Trade%20and%20Other%20Receivables%20and%20Payables) Trade receivables decreased to HK$21,464 thousand, while trade payables significantly increased to HK$27,740 thousand, with a 30-day credit period Aging Analysis of Trade Receivables | Aging | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Within 30 days | 15,181 | 19,254 | | 31 to 60 days | 4,036 | 3,596 | | 61 to 90 days | 1,345 | 2,568 | | 91 to 120 days | 543 | - | | Over 120 days | 359 | - | | **Total trade receivables** | **21,464** | **25,418** | Aging Analysis of Trade Payables | Aging | June 30, 2025 (HK$ '000) | December 31, 2024 (HK$ '000) | | :--- | :--- | :--- | | Within 30 days | 21,726 | 5,806 | | 31 to 90 days | 54 | 7 | | 91 to 120 days | 1 | 2 | | Over 120 days | 5,959 | 5,970 | | **Total trade payables** | **27,740** | **11,785** | - The group offers an average credit period of **30 days** to its trade customers and does not charge interest on overdue balances[17](index=17&type=chunk) [Share Capital Structure](index=6&type=section&id=Share%20Capital%20Structure) As of June 30, 2025, authorized share capital was HK$50,000 thousand, with issued and fully paid share capital of HK$28,000 thousand, unchanged from prior year Share Capital Structure | Item | Number of Ordinary Shares (shares) | Par Value (HK$ '000) | | :--- | :--- | :--- | | Authorized share capital | 500,000,000 | 50,000 | | Issued and fully paid share capital | 280,000,000 | 28,000 | - As of June 30, 2025, the issued and fully paid share capital remained consistent with January 1, 2024, June 30, 2024, and December 31, 2024[20](index=20&type=chunk) Business Review and Outlook [Business Review](index=6&type=section&id=Business%20Review) Turnover increased by 21%, but gross profit fell 36% to a net loss of HK$3,297 thousand due to market challenges, prompting cost review and new revenue exploration - Turnover increased by **21%** compared to the prior year, reflecting the company's ability to drive sales and maintain market share[22](index=22&type=chunk) - Significant pressure on gross profit margin led to a **36%** decrease in gross profit[22](index=22&type=chunk) - A net loss of **HK$3,297 thousand** was recorded for the period, compared to a net profit of **HK$4,140 thousand** in the prior year[22](index=22&type=chunk) - The company is actively reviewing its cost structure, optimizing inventory management, and exploring new revenue streams to alleviate operational pressure[22](index=22&type=chunk) [Outlook](index=6&type=section&id=Outlook) Hong Kong's consumer outlook remains sluggish due to intense competition and changing consumer behavior, prompting the company to reassess costs and explore new business models - Hong Kong's consumer outlook remains sluggish, affected by several interconnected challenges[23](index=23&type=chunk) - Competition from mainland Chinese brands is intensifying, offering aggressive pricing and rapid innovation, further squeezing profit margins and market share[24](index=24&type=chunk) - Shifting consumer behavior, favoring value-oriented purchases and longer replacement cycles, has impacted overall demand[24](index=24&type=chunk) - The company is actively reassessing its cost structure, enhancing operational flexibility, and exploring new product categories or business models[23](index=23&type=chunk) Financial Analysis and Risk Management [Liquidity and Financial Resources](index=7&type=section&id=Liquidity%20and%20Financial%20Resources) Total assets were HK$218,055 thousand, with a current ratio of 4.0 (down from 6.5), and HK$82,543 thousand in cash, maintaining good liquidity with no bank borrowings - As of June 30, 2025, the group's total assets of **HK$218,055 thousand** comprised total equity of **HK$166,907 thousand** and total liabilities of **HK$51,148 thousand**[25](index=25&type=chunk) - The group's current ratio was approximately **4.0**, compared to approximately **6.5** as of December 31, 2024[25](index=25&type=chunk) - As of June 30, 2025, the group held bank balances and cash of **HK$82,543 thousand** (December 31, 2024: **HK$81,042 thousand**)[25](index=25&type=chunk) - There were no bank borrowings as of June 30, 2025 (December 31, 2024: nil)[25](index=25&type=chunk) [Pledged Assets and Material Investments](index=7&type=section&id=Pledged%20Assets%20and%20Material%20Investments) The group had no pledged assets; listed securities held as long-term investments appreciated by 24%, with a fair value gain of HK$3,424 thousand and dividend income of HK$400 thousand - There were no pledged assets as of June 30, 2025 (December 31, 2024: nil)[26](index=26&type=chunk) - Listed securities held by the group for long-term investment purposes appreciated by **24%** for the six months ended June 30, 2025[28](index=28&type=chunk) - A fair value gain of **HK$3,424 thousand** was recognized in other comprehensive income, and dividend income of **HK$400 thousand** was received[28](index=28&type=chunk) [Employee Information and Remuneration Policy](index=7&type=section&id=Employee%20Information%20and%20Remuneration%20Policy) The group had 54 employees, with salaries and benefits totaling HK$10,262 thousand, and no significant changes to the remuneration policy, which includes MPF, medical insurance, and performance bonuses - The group had **54 employees** as of June 30, 2025 (June 30, 2024: **51 employees**)[27](index=27&type=chunk) - Salaries and other benefits paid and payable to employees (excluding directors' emoluments) amounted to **HK$10,262 thousand** (June 30, 2024: **HK$10,886 thousand**)[27](index=27&type=chunk) - In addition to MPF contributions and medical insurance, employees receive discretionary bonuses based on performance assessments, with no significant changes to the employee remuneration policy from the prior year[27](index=27&type=chunk) [Currency Risk Management and Contingent Liabilities](index=7&type=section&id=Currency%20Risk%20Management%20and%20Contingent%20Liabilities) Some purchases, receivables, and bank balances are in USD, but due to the HKD-USD peg, no significant currency risk is expected; no hedging policy exists, and no derivative financial instruments or contingent liabilities were present - Certain of the group's purchases of goods, other receivables, and bank balances are denominated in US dollars[29](index=29&type=chunk) - As the Hong Kong dollar is pegged to the US dollar, the group's management does not expect any significant currency risk between the US dollar and the Hong Kong dollar[29](index=29&type=chunk) - The group currently has no currency hedging policy; however, management monitors currency fluctuation risks and will hedge significant currency risks when necessary[29](index=29&type=chunk) - As of June 30, 2025, the group had no contingent liabilities or guarantees (December 31, 2024: nil)[30](index=30&type=chunk) Corporate Governance and Other Information [Corporate Governance Code](index=8&type=section&id=Corporate%20Governance%20Code) The company adopted and complied with the Corporate Governance Code in Appendix C1 of the Listing Rules for the period ended June 30, 2025 - The company has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules of the Stock Exchange[31](index=31&type=chunk) - For the period ended June 30, 2025, the company has complied with the code provisions under the Code[31](index=31&type=chunk) [Standard Securities Dealing Code for Directors](index=8&type=section&id=Standard%20Securities%20Dealing%20Code%20for%20Directors) The company adopted the Standard Securities Dealing Code for Directors in Appendix C3 of the Listing Rules, and all directors confirmed compliance - The company has adopted the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' dealings in the company's securities[32](index=32&type=chunk) - Following specific enquiry with all directors, they have confirmed compliance with the Standard Code[32](index=32&type=chunk) [Audit Committee](index=8&type=section&id=Audit%20Committee) The Audit Committee, composed of all independent non-executive directors, reviewed the company's condensed consolidated financial statements and accounting policies - The Audit Committee comprises all independent non-executive directors[33](index=33&type=chunk) - The Audit Committee has reviewed the company's condensed consolidated financial statements for the six months ended June 30, 2025, including the accounting policies and practices adopted by the company[33](index=33&type=chunk) [Dealings in Listed Securities](index=8&type=section&id=Dealings%20in%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities for the period ended June 30, 2025 - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities for the period ended June 30, 2025[34](index=34&type=chunk) [Publication of Results Announcement](index=8&type=section&id=Publication%20of%20Results%20Announcement) This results announcement is published on the company and Stock Exchange websites; the 2025 interim report will be dispatched to shareholders and published by September 30, 2025 - This results announcement is published on the company's website www.sismobile.com.hk and the Stock Exchange's website www.hkexnews.hk[35](index=35&type=chunk) - The company's 2025 interim report will be dispatched to shareholders and published on the aforementioned websites on or before September 30, 2025[35](index=35&type=chunk) [Acknowledgement](index=8&type=section&id=Acknowledgement) Chairman Lam Ka Ming thanked employees, customers, partners, and shareholders, pledging continued value creation and strategic adaptation to market changes - Chairman Lam Ka Ming expressed sincere gratitude for the unwavering dedication of employees, the continued trust of customers and business partners, and the steadfast support of shareholders[36](index=36&type=chunk) - The company will continue to strive for shareholder value creation and adapt its strategies to meet the evolving market environment[36](index=36&type=chunk)

[Announcement Information](index=1&type=section&id=%E5%85%AC%E5%91%8A%E4%BF%A1%E6%81%AF) This section provides fundamental information about Hebei Construction Group Corporation Limited, including its registration, listing details, and the composition of its Board of Directors [Company Basic Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) Hebei Construction Group Corporation Limited (Stock Code: 1727), registered in the PRC with H shares listed on HKEX, announces its unaudited consolidated interim results for the six months ended June 30, 2025 - Company name: Hebei Construction Group Corporation Limited, stock code: **1727**[2](index=2&type=chunk) - The company was incorporated in the People's Republic of China, and its H shares were listed on the Main Board of the Hong Kong Stock Exchange on December 15, 2017[2](index=2&type=chunk)[97](index=97&type=chunk) - This announcement presents the unaudited consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) [Board of Directors](index=1&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%91%98) As of the announcement date, the Board comprises 5 executive directors, 1 non-executive director, and 3 independent non-executive directors - Executive Directors include Mr. Li Baozhong, Mr. Shang Jinfeng, Mr. Zhao Wensheng, Mr. Tian Wei, and Mr. Zhang Wenzhong[4](index=4&type=chunk) - Non-executive Director is Mr. Li Baoyuan[4](index=4&type=chunk) - Independent Non-executive Directors include Ms. Shen Lifeng, Ms. Chen Xin, and Mr. Chen Yisheng[4](index=4&type=chunk) [Financial Highlights](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section summarizes the company's key financial performance for the first half of 2025, highlighting significant year-on-year changes in revenue, net profit, and earnings per share [Key Financial Data for H1 2025](index=2&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E9%97%9C%E9%8D%B5%E8%B2%A1%E5%8B%99%E6%95%B8%E6%93%9A) For the six months ended June 30, 2025, the company's revenue, net profit, and EPS significantly decreased year-on-year by 28%, 21%, and 14% respectively 2025 H1 Financial Highlights (Year-on-Year) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 7,908,202 | 11,015,171 | Down 28.21% | | Net Profit | 95,244 | 120,879 | Down 21.20% | | Earnings Per Share (RMB/share) | 0.06 | 0.07 | Down 14.29% | [Business Review](index=3&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides an overview of the company's core construction businesses, including new contract performance, segment distribution, and representative projects across various categories [Company Business Overview](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A7%88) The company is a leading non-state-owned construction group in China, with main revenue from building construction, infrastructure construction, and specialized and other construction engineering; new contracts in H1 2025 decreased by 42.41% to RMB 8.039 billion - The company is a leading non-state-owned construction group in China, primarily engaged in construction engineering contracting, including building construction, infrastructure construction, and specialized and other construction engineering contracting businesses[6](index=6&type=chunk)[8](index=8&type=chunk) 2025 H1 New Contract Value Overview | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 8.039 | 13.960 | Down 42.41% | New Contract Value Distribution by Region and Segment | Category | 2025 H1 Share | 2024 H1 Share | | :--- | :--- | :--- | | **By Region** | | | | Beijing-Tianjin-Hebei | 79.71% | 88.91% | | Others | 20.29% | 11.09% | | **By Segment** | | | | Building Construction Engineering | 40.38% | 55.98% | | Infrastructure Construction Engineering | 39.05% | 18.77% | | Specialized and Other Construction Engineering | 20.57% | 25.25% | [Building Construction Business](index=4&type=section&id=%E6%88%BF%E5%B1%8B%E5%BB%BA%E7%AF%89%E6%A5%AD%E5%8B%99) This business primarily provides general contracting services for residential, public, industrial, and commercial building projects, with new contracts in H1 2025 significantly down by 58.46% to RMB 3.246 billion - The company undertakes most building construction projects as a general contractor, responsible for all major aspects including construction, foundation engineering, curtain walls, decoration, and fire protection engineering[9](index=9&type=chunk) Building Construction Business New Contract Value | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 3.246 | 7.815 | Down 58.46% | Building Construction Business New Contract Value Distribution by Segment | Segment | 2025 H1 Share | 2024 H1 Share | | :--- | :--- | :--- | | Residential Building Engineering | 35.85% | 34.54% | | Public Building Engineering | 51.27% | 46.87% | | Industrial Building Engineering | 12.88% | 18.59% | | Commercial Building Engineering | 0.00% | 0.00% | [Infrastructure Construction Business](index=5&type=section&id=%E5%9F%BA%E7%A4%8E%E8%A8%AD%E6%96%BD%E5%BB%BA%E8%A8%AD%E6%A5%AD%E5%8B%99) This business primarily offers general contracting services for municipal and transportation infrastructure projects, with new contracts in H1 2025 increasing by 19.81% to RMB 3.139 billion - Business scope includes water supply and treatment, gas and heating, urban pipelines, landscaping, roads, bridges, and airport runway facilities[11](index=11&type=chunk) - Major clients are local governments, and the company undertakes most of these construction projects as a general contractor[11](index=11&type=chunk) Infrastructure Construction Business New Contract Value | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 3.139 | 2.620 | Up 19.81% | Infrastructure Construction Business New Contract Value Distribution by Segment | Segment | 2025 H1 Share | 2024 H1 Share | | :--- | :--- | :--- | | Municipal Infrastructure Construction Engineering | 77.22% | 62.43% | | Transportation Infrastructure Construction Engineering | 22.78% | 37.57% | [Specialized and Other Construction Engineering Contracting Business](index=6&type=section&id=%E5%B0%88%E6%A5%AD%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BB%BA%E7%AF%89%E5%B7%A5%E7%A8%8B%E6%89%BF%E5%8C%85%E6%A5%AD%E5%8B%99) This business leverages professional qualifications in M&E installation, steel structures, and decoration, with new contracts in H1 2025 decreasing by 53.09% to RMB 1.654 billion, but with significant growth in new energy and water conservancy - Business scope includes construction engineering contracting projects in specialized fields such as M&E installation, steel structure construction, and decoration and renovation[13](index=13&type=chunk) Specialized and Other Construction Engineering Contracting Business New Contract Value | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Contract Value | 1.654 | 3.525 | Down 53.09% | Specialized and Other Construction Engineering Contracting Business New Contract Value Distribution by Segment | Segment | 2025 H1 Share | 2024 H1 Share | | :--- | :--- | :--- | | M&E Installation | 6.17% | 25.20% | | Steel Structure | 0.66% | 0.17% | | Decoration and Renovation | 12.52% | 5.25% | | New Energy | 55.99% | – | | Water Conservancy and Hydropower | 12.33% | – | | Other Construction Businesses | 12.33% | 69.38% | [Representative Engineering Projects](index=7&type=section&id=%E4%BB%A3%E8%A1%A8%E6%80%A7%E5%B7%A5%E7%A8%8B%E9%A0%85%E7%9B%AE) The report lists representative new, ongoing, and completed projects in H1 2025 across various categories, showcasing the company's project execution capabilities in different regions and sectors - Representative new contracts include transportation infrastructure projects (e.g., S333 Haixing to Shunping Highway Anping Section Reconstruction Project), municipal infrastructure projects (e.g., Flood Control and Drainage Project – Baoding City Pipeline Network and Supporting Municipal Infrastructure Project), residential building projects, and new energy projects (e.g., Antai (Baoding) New Energy Technology Co., Ltd. New 100MW/200MWh Independent Energy Storage Power Station Project)[15](index=15&type=chunk)[17](index=17&type=chunk) - Representative ongoing projects cover public buildings (e.g., China Academy of Chinese Medical Sciences Guang'anmen Hospital Baoding Hospital EPC Project), residential buildings (e.g., Huangshanmudian Liangmachang Resettlement Housing Project in Pingfang Township, Chaoyang District), commercial buildings, industrial buildings, transportation infrastructure construction, municipal infrastructure, and specialized construction businesses like M&E installation and decoration[18](index=18&type=chunk)[20](index=20&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - Representative completed projects include public buildings (e.g., Knowledge City ZSCXN-B3–2 (Medical City) Project), residential buildings (e.g., Botou City Longtun New City Urban Village Renovation Phase II Project), commercial buildings, industrial buildings, and transportation infrastructure construction (e.g., Chongqing Jiangbei International Airport T3B Terminal and Fourth Runway Project Airfield Engineering)[28](index=28&type=chunk) [Scientific Research Achievements and Awards](index=14&type=section&id=%E7%A7%91%E7%A0%94%E6%88%90%E6%9E%9C%E5%8F%8A%E7%8D%8E%E9%A0%85) This section highlights the company's scientific research progress and accolades in the first half of 2025, including R&D investment, technology platform development, and intellectual property achievements [H1 2025 Scientific Research Progress](index=14&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E7%A7%91%E7%A0%94%E9%80%B2%E5%B1%95) In H1 2025, the company achieved notable progress in R&D projects, technology platform development, and intellectual property, accumulating **RMB 347 million** in R&D expenses for 2024 and obtaining **35 new patents** - Awarded **19 provincial construction industry scientific and technological progress awards**, **12 new technology application demonstration projects**, and **2 green construction technology demonstration projects**[29](index=29&type=chunk) - **9 achievements** were evaluated as domestically leading, **4 scientific and technological achievements** passed provincial construction association acceptance, and **3 achievements** were evaluated as domestically leading[29](index=29&type=chunk) - Accumulated **RMB 347 million** in R&D expenses for **300 enterprise-level scientific research projects** in 2024[29](index=29&type=chunk) - As of the end of June 2025, **35 new patents** were granted (including **8 invention patents**), and **21 new patent applications** were filed[29](index=29&type=chunk) [Future Outlook](index=15&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) This section outlines the company's strategic priorities and key initiatives for the second half of the year, focusing on sustainable development and enhancing shareholder value [Key Tasks for H2](index=15&type=section&id=%E4%B8%8B%E5%8D%8A%E5%B9%B4%E9%87%8D%E9%BB%9E%E5%B7%A5%E4%BD%9C) The company will continue to focus on building quality platforms, stimulating organizational vitality, improving project quality, and strengthening safety management in H2 to achieve sustainable development and shareholder returns - Continuously build high-quality enterprise platforms, leveraging the Group's **73 years of accumulated brand reputation, qualifications, performance, financial credit, and talent reserves**[31](index=31&type=chunk) - Continue to activate the vitality of all organizational levels, encouraging innovation and entrepreneurship across the industry value chain to identify new economic growth points[31](index=31&type=chunk) - Continuously improve project quality, deeply carry out special governance for common quality issues, promote quality management standardization, and actively create high-quality projects at all levels[32](index=32&type=chunk) - Maintain constant vigilance regarding production safety, continuously strengthen safety education and publicity, and ensure stable safety production throughout the year by strictly controlling the process[32](index=32&type=chunk) [Financial Performance Analysis](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%88%86%E6%9E%90) This section provides a detailed analysis of the company's financial performance for the first half of 2025, covering revenue, costs, expenses, and profit drivers [Revenue, Cost of Sales, and Gross Profit](index=16&type=section&id=%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5%E3%80%81%E7%87%9F%E6%A5%AD%E6%88%90%E6%9C%AC%E5%8F%8A%E6%AF%9B%E5%88%A9) H1 2025 revenue was **RMB 7.908 billion**, a decrease of approximately **RMB 3.107 billion (28%)** year-on-year, primarily due to reduced revenue from the construction engineering segment, project completions, and fewer new contracts - H1 2025 revenue was **RMB 7.908 billion**, a decrease of approximately **RMB 3.107 billion**, representing a **28% decline**[34](index=34&type=chunk)[5](index=5&type=chunk) - The decrease in revenue was mainly due to a **RMB 3.174 billion** decline in revenue from the construction engineering contracting segment, attributed to the completion of some large projects and a decrease in the contract value and number of newly undertaken projects[34](index=34&type=chunk)[35](index=35&type=chunk) Operating Performance of Construction Engineering Contracting Segment | Segment | 2025 H1 Revenue (RMB billion) | 2025 H1 Gross Margin (%) | 2024 H1 Revenue (RMB billion) | 2024 H1 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Building Construction Business | 4.744 | 5.1 | 6.984 | 5.1 | | Infrastructure Construction Business | 2.218 | 7.8 | 3.099 | 7.1 | | Specialized and Other Construction Business | 0.672 | 5.5 | 0.725 | 5.4 | | **Total** | **7.634** | **5.9** | **10.808** | **5.7** | [Administrative Expenses and R&D Expenses](index=17&type=section&id=%E7%AE%A1%E7%90%86%E8%B2%BB%E7%94%A8%E8%88%87%E7%A0%94%E7%99%BC%E8%B2%BB%E7%94%A8) H1 2025 administrative expenses decreased by **RMB 89.77 million** to **RMB 122 million**, primarily due to reduced staff costs; R&D expenses decreased by **RMB 5.25 million** to **RMB 27.97 million**, mainly due to fewer new projects - Administrative expenses were **RMB 122 million**, a decrease of **RMB 89.77 million** compared to H1 2024, mainly due to reduced staff salaries, welfare, and social insurance contributions[37](index=37&type=chunk) - R&D expenses were **RMB 27.97 million**, a decrease of **RMB 5.25 million** compared to H1 2024, primarily due to fewer new projects initiated[38](index=38&type=chunk) [Credit Impairment Losses and Asset Impairment Losses](index=17&type=section&id=%E4%BF%A1%E7%94%A8%E6%B8%9B%E5%80%BC%E6%90%8D%E5%A4%B1%E8%88%87%E8%B3%87%E7%94%A2%E6%B8%9B%E5%80%BC%E6%90%8D%E5%A4%B1) H1 2025 credit impairment losses increased by **RMB 15 million** to **RMB 92 million** due to bad debt provisions for high-risk clients; asset impairment losses reversed **RMB 68 million**, mainly due to decreased original value of contract assets from lower revenue - Credit impairment losses were **RMB 92 million**, an increase of **RMB 15 million** compared to H1 2024, mainly due to the Group's individual provision for bad debts for clients with significant default risks based on their operating conditions[39](index=39&type=chunk) - Asset impairment losses reversed **RMB 68 million**, compared to a reversal of **RMB 37 million** in H1 2024, primarily due to a decrease in the original value of contract assets resulting from lower revenue in the current period, leading to a reduction in newly provided bad debt provisions for contract assets[41](index=41&type=chunk) [Investment Income and Income Tax Expense](index=18&type=section&id=%E6%8A%95%E8%B3%87%E6%94%B6%E7%9B%8A%E8%88%87%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) H1 2025 investment income improved to **RMB 0.69 million** from a loss of **RMB 1.9 million** in H1 2024, driven by continuous profitability of associates and joint ventures; income tax expense decreased by **RMB 7 million** to **RMB 28 million** due to lower pre-tax profit - Investment income was **RMB 0.69 million**, compared to an investment loss of **RMB 1.9 million** in H1 2024, mainly due to the continuous profitability of strategically invested associates and joint ventures[42](index=42&type=chunk) - Income tax expense was **RMB 28 million**, a decrease of **RMB 7 million** compared to the prior year, primarily due to a reduction in pre-tax profit for the current period[43](index=43&type=chunk) [Net Profit](index=18&type=section&id=%E6%B7%A8%E5%88%A9%E6%BD%A4) Overall, H1 2025 net profit was **RMB 95 million**, a decrease of approximately **RMB 26 million** year-on-year - H1 2025 net profit was **RMB 95 million**, a decrease of approximately **RMB 26 million** compared to the prior year[44](index=44&type=chunk) [Liquidity, Financial Resources, and Capital Structure](index=18&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E6%94%BF%E4%BE%86%E6%BA%90%E5%92%8C%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) This section analyzes the company's cash position, funding strategies, changes in receivables and payables, and key financial ratios, providing insights into its financial health and capital management [Cash and Cash Equivalents and Financial Policy](index=18&type=section&id=%E8%B2%A8%E5%B9%A3%E8%B3%87%E9%87%91%E8%88%87%E8%B2%A1%E5%8B%99%E6%94%BF%E7%AD%96) As of June 30, 2025, cash and cash equivalents were **RMB 4.315 billion**, a decrease of **RMB 1.435 billion** from year-end 2024, mainly due to net cash outflow from operating activities; the company will fund operations through operating cash and interest-bearing borrowings - As of June 30, 2025, cash and cash equivalents were **RMB 4.315 billion**, a decrease of **RMB 1.435 billion** from year-end 2024, primarily due to net cash outflow from operating activities[46](index=46&type=chunk) - The company will fund its operations through cash generated from operating activities and interest-bearing borrowings, striving to maintain an optimal liquidity level to meet working capital requirements[47](index=47&type=chunk) [Receivables and Contract Assets/Liabilities](index=19&type=section&id=%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E8%88%87%E5%90%88%E5%90%8C%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5) Receivables financing decreased by **RMB 77 million** due to a preference for bank deposits; net accounts receivable decreased by **RMB 275 million**; net contract assets decreased by **RMB 1.674 billion**, mainly due to project settlements based on performance progress - Receivables financing was **RMB 29 million**, a decrease of **RMB 77 million** compared to year-end 2024, mainly because the Group preferred bank deposit settlements over bank acceptance bills issued by real estate enterprises during the reporting period[49](index=49&type=chunk) - Net accounts receivable was **RMB 7.052 billion**, a decrease of approximately **RMB 275 million** compared to year-end 2024[50](index=50&type=chunk) - Net contract assets were **RMB 39.467 billion**, a decrease of approximately **RMB 1.674 billion** compared to year-end 2024, primarily due to engineering settlements for related construction contracts based on performance progress[52](index=52&type=chunk) [Borrowings and Accounts Payable](index=20&type=section&id=%E5%80%9F%E8%B2%B8%E8%88%87%E6%87%89%E4%BB%98%E8%B3%B4%E6%AC%BE) As of June 30, 2025, total interest-bearing borrowings were approximately **RMB 5.920 billion**, a slight decrease; accounts payable decreased by **RMB 2.883 billion** due to reduced project volume; bills payable increased by **RMB 432 million** due to adjusted payment structure - As of June 30, 2025, interest-bearing borrowings were approximately **RMB 5.920 billion** (December 31, 2024: approximately **RMB 6.056 billion**)[54](index=54&type=chunk) - Accounts payable balance was **RMB 29.464 billion**, a decrease of **RMB 2.883 billion (9%)** compared to year-end 2024, mainly due to a decrease in procurement volume resulting from reduced project volume in the current period[55](index=55&type=chunk) - Bills payable balance increased by **RMB 432 million** compared to the prior year-end, primarily because the Group diversified its payment methods, adjusted its payment structure, and increased the proportion of bill payments[55](index=55&type=chunk) [Financial Ratios](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E6%AF%94%E7%8E%87) As of June 30, 2025, both current and quick ratios remained at **1.10x**; the gearing ratio decreased from **94.8%** at year-end 2024 to **91.5%**; return on assets and return on equity both declined Key Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio (x) | 1.10 | 1.10 | | Quick Ratio (x) | 1.10 | 1.10 | | Gearing Ratio | 91.5% | 94.8% | | Return on Assets (Non-annualized) | 0.2% | 0.3% | | Return on Equity (Non-annualized) | 1.5% | 2.5% | [Other Information](index=21&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers other important aspects of the company's operations, including material events, contingent liabilities, exchange rate risks, subsequent events, dividend policy, and corporate governance practices [Material Matters and Contingent Liabilities](index=21&type=section&id=%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85%E8%88%87%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) During the reporting period, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures, nor any significant investments; as of June 30, 2025, contingent liabilities from pending litigation or arbitration amounted to **RMB 35 million** - During the reporting period, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[59](index=59&type=chunk) - As of June 30, 2025, the company held no significant investments[60](index=60&type=chunk) - As of June 30, 2025, the company's contingent liabilities arising from pending litigation or arbitration amounted to **RMB 35 million**[61](index=61&type=chunk) [Exchange Rate Risk and Subsequent Events](index=22&type=section&id=%E5%8C%AF%E7%8E%87%E9%A2%A8%E9%9A%AA%E8%88%87%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The company's business and bank loans are primarily denominated in RMB, posing no significant foreign exchange risk, and currently, there is no hedging policy; as of the announcement date, there are no material subsequent events - The company's vast majority of business and all bank loans are transacted in RMB, thus posing no significant foreign exchange fluctuation risk, and currently, there is no hedging policy against foreign exchange risk[63](index=63&type=chunk) - As of the date of this announcement, the company has no material subsequent events[64](index=64&type=chunk) [Dividends and Corporate Governance](index=22&type=section&id=%E8%82%A1%E6%81%AF%E8%88%87%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Board does not recommend an interim dividend for H1 2025; the company is committed to maintaining high corporate governance standards, with an effective framework and compliance with the Corporate Governance Code - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[65](index=65&type=chunk)[94](index=94&type=chunk) - The company is committed to achieving and maintaining a high level of corporate governance, has established an effective corporate governance structure, and strives to continuously improve its internal controls and corporate governance mechanisms[66](index=66&type=chunk) - During the reporting period, the company complied with all code provisions of the Corporate Governance Code[66](index=66&type=chunk) - The Audit Committee has reviewed and confirmed the Group's interim results announcement and unaudited interim financial statements for the six months ended June 30, 2025[69](index=69&type=chunk) [Notes to Interim Consolidated Financial Statements](index=24&type=section&id=%E4%B8%AD%E6%9C%9F%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the interim consolidated financial statements, including the balance sheet, income statement, and specific accounting policies and analyses [Interim Consolidated Balance Sheet](index=24&type=section&id=%E4%B8%AD%E6%9C%9F%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, total assets were **RMB 58.379 billion**, a decrease of approximately **RMB 3.456 billion** from year-end 2024; both current assets and liabilities decreased, while total equity attributable to owners slightly increased Summary of Interim Consolidated Balance Sheet | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Current Assets | 51,974,532 | 55,394,965 | (3,420,433) | | Total Non-current Assets | 6,404,694 | 6,440,070 | (35,376) | | **Total Assets** | **58,379,226** | **61,835,035** | **(3,455,809)** | | Total Current Liabilities | 48,916,624 | 52,260,750 | (3,344,126) | | Total Non-current Liabilities | 2,990,177 | 3,184,339 | (194,162) | | **Total Liabilities** | **51,906,801** | **55,445,089** | **(3,538,288)** | | Total Equity Attributable to Owners of Parent | 6,313,679 | 6,221,833 | 91,846 | | Non-controlling Interests | 158,746 | 168,113 | (9,367) | | **Total Equity** | **6,472,425** | **6,389,946** | **82,479** | [Interim Consolidated Income Statement](index=26&type=section&id=%E4%B8%AD%E6%9C%9F%E5%90%88%E4%BD%B5%E5%88%A9%E6%BD%A4%E8%A1%A8) H1 2025 operating revenue was **RMB 7.908 billion**, net profit was **RMB 95.24 million**, net profit attributable to owners was **RMB 104.61 million**, and basic EPS was **RMB 0.06**, all showing year-on-year decreases Summary of Interim Consolidated Income Statement | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Operating Revenue | 7,908,202 | 11,015,171 | (3,106,969) | | Cost of Sales | 7,403,489 | 10,365,625 | (2,962,136) | | Operating Profit | 122,653 | 157,082 | (34,429) | | Total Profit | 123,188 | 155,973 | (32,785) | | Income Tax Expense | 27,944 | 35,094 | (7,150) | | **Net Profit** | **95,244** | **120,879** | **(25,635)** | | Net Profit Attributable to Owners of Parent | 104,611 | 126,889 | (22,278) | | Basic and Diluted Earnings Per Share (RMB/share) | 0.06 | 0.07 | (0.01) | [Notes to Financial Statements](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes detail the basis of financial statement preparation, aging analysis of accounts and long-term receivables/payables, revenue composition and recognition, and calculation methods for income tax and EPS - The financial statements are prepared in accordance with **Accounting Standard for Business Enterprises No. 32 – Interim Financial Reporting** issued by the Ministry of Finance and the disclosure requirements of the **Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited**[77](index=77&type=chunk) Aging Analysis of Accounts Receivable | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 6,509,814 | 6,294,717 | | 1 to 2 years | 813,467 | 1,156,111 | | 2 to 3 years | 501,549 | 501,379 | | Over 3 years | 933,635 | 987,408 | | **Total (before impairment provision)** | **8,758,465** | **8,939,615** | | Less: Provision for bad debts on accounts receivable | 1,706,471 | 1,612,871 | | **Total (Net Value)** | **7,051,994** | **7,326,744** | Aging Analysis of Accounts Payable | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 18,318,232 | 20,640,524 | | 1 to 2 years | 8,526,684 | 8,877,374 | | 2 to 3 years | 1,551,425 | 1,521,756 | | Over 3 years | 1,067,217 | 1,306,994 | | **Total** | **29,463,558** | **32,346,648** | Composition of Operating Revenue | Revenue Type | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Principal Business Revenue | 7,633,670 | 10,808,378 | | Other Business Revenue | 274,532 | 206,793 | | **Total** | **7,908,202** | **11,015,171** | - Operating revenue is primarily recognized over time (construction services, sewage and reclaimed water treatment), with some recognized at a point in time (sale of goods)[86](index=86&type=chunk)[87](index=87&type=chunk) [Definitions](index=35&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and abbreviations used in the report, including currencies, company entities, accounting standards, regulatory bodies, and share types, to ensure clear understanding of the report content [Definitions of Key Terms](index=35&type=section&id=%E9%97%9C%E9%8D%B5%E8%A1%93%E8%AA%9E%E5%AE%9A%E7%BE%A9) This section provides definitions for key terms and abbreviations used in the report, including currencies, company entities, accounting standards, regulatory bodies, and share types, to ensure clear understanding of the report content - Currencies used in the report include **Hong Kong Dollars (HKD)**, the lawful currency of Hong Kong, and **Renminbi (RMB)**, the lawful currency of the PRC[96](index=96&type=chunk)[98](index=98&type=chunk) - Definitions are provided for the Company (Hebei Construction Group Corporation Limited), the Group (the Company and its subsidiaries), H shares, and other entities and share types[97](index=97&type=chunk) - References are made to **China Accounting Standards for Business Enterprises**, the **Listing Rules**, the **Corporate Governance Code**, and other regulatory and accounting standards[97](index=97&type=chunk)[98](index=98&type=chunk)

[Company Information](index=1&type=section&id=Company%20Information) [GEM Listing Characteristics and Directors' Responsibility Statement](index=1&type=section&id=GEM%20Listing%20Characteristics%20and%20Directors'%20Responsibility%20Statement) This announcement highlights the higher investment risk of the HKEX GEM market and states that the company's directors bear full responsibility for the accuracy, completeness, and non-misleading nature of the announcement's content - The GEM market is positioned as a listing platform for high-investment-risk companies, and investors should carefully consider potential risks[1](index=1&type=chunk) - The company's directors jointly and individually confirm that the information contained in this announcement is accurate, complete, and not misleading in all material respects[2](index=2&type=chunk) [Interim Results Summary](index=2&type=section&id=Interim%20Results%20Summary) [Summary of Financial Performance for H1 2025](index=2&type=section&id=Summary%20of%20Financial%20Performance%20for%20H1%202025) For the six months ended June 30, 2025, China Medical Group achieved approximately 18% growth in revenue and profit before tax, with stable gross margin, but the board does not recommend a dividend 2025 H1 Key Financial Indicators | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Revenue | 21,620,241 | 18,293,013 | 18.19% | | Profit Before Tax | 10,234,000 | 8,651,000 | 18.30% | | Gross Profit | 13,945,000 | 11,982,000 | 16.38% | | Gross Profit Margin | 64.5% | 65.5% | -1.0% | - The Board recommends not to declare any dividend for the six months ended June 30, 2025[3](index=3&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20(Unaudited)) For the six months ended June 30, 2025, the Group's revenue and operating profit both saw significant growth, with net profit up 18.31% year-on-year, and basic and diluted EPS at 0.87 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 21,620 | 18,293 | | Cost of Sales | (7,675) | (6,311) | | Staff Costs | (2,330) | (2,280) | | Administrative Expenses | (1,389) | (1,040) | | Operating Profit | 10,230 | 8,666 | | Profit Before Tax | 10,234 | 8,651 | | Net Profit for the Period | 8,699 | 7,353 | | Earnings Per Share (Basic and Diluted) | 0.87 cents | 0.74 cents | [Condensed Consolidated Statement of Financial Position (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position%20(Unaudited)) As of June 30, 2025, the Group's total assets and net assets increased, with a significant rise in trade receivables within current assets, while trade payables decreased Condensed Consolidated Statement of Financial Position (Unaudited) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-Current Assets | 8,016 | 8,324 | | Current Assets | 102,003 | 92,636 | | Trade and Bills Receivables | 63,778 | 57,584 | | Cash and Cash Equivalents | 23,732 | 14,194 | | Current Liabilities | 31,603 | 31,243 | | Trade Payables, Other Payables and Accrued Charges | 5,623 | 8,298 | | Net Current Assets | 70,400 | 61,393 | | Net Assets | 78,416 | 69,717 | | Total Equity | 78,416 | 69,717 | [Condensed Consolidated Statement of Cash Flows (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows%20(Unaudited)) For the six months ended June 30, 2025, the Group's net cash generated from operating activities significantly increased, with cash and cash equivalents at period-end reaching RMB 23,732 thousand Condensed Consolidated Statement of Cash Flows (Unaudited) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 9,538 | 2,883 | | Net Cash Used in Investing Activities | 0 | (165) | | Net Cash Used in Financing Activities | 0 | 0 | | Net Increase in Cash and Cash Equivalents | 9,538 | 2,718 | | Cash and Cash Equivalents at End of Period | 23,732 | 6,858 | [Condensed Consolidated Statement of Changes in Equity (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity%20(Unaudited)) As of June 30, 2025, the Group's total equity increased to RMB 78,416 thousand, primarily due to the contribution from net profit for the period Condensed Consolidated Statement of Changes in Equity (Unaudited) | Indicator | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Equity at Beginning of Period | 69,717 | 84,183 | | Net Profit for the Period | 8,699 | 7,353 | | Total Equity at End of Period | 78,416 | 91,536 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [General Information](index=8&type=section&id=General%20Information) China Medical Group Company Limited, incorporated in Cayman Islands and listed on HKEX, primarily provides one-stop integrated pharmaceutical services in China, aiming to become a comprehensive medical terminal service group under an internet architecture - The Company was incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange on July 10, 2003[13](index=13&type=chunk) - The principal business is to provide one-stop integrated pharmaceutical services in China, including clinical research, post-marketing surveillance, real-world studies, medical research activities, medical marketing services, and other pharmaceutical services[13](index=13&type=chunk) - The Group is committed to becoming a comprehensive medical terminal service group under an internet architecture[13](index=13&type=chunk) [Statement of Compliance with New and Revised International Financial Reporting Standards](index=8&type=section&id=Statement%20of%20Compliance%20with%20New%20and%20Revised%20International%20Financial%20Reporting%20Standards) The company complies with new and revised HKFRSs issued by HKICPA, effective January 1, 2025, which have not caused significant changes to accounting policies, financial statement presentation, or reported amounts - The Company complies with the new and revised Hong Kong Financial Reporting Standards (HKFRSs) issued by the Hong Kong Institute of Certified Public Accountants (HKICPA) relevant to its Hong Kong operations, effective January 1, 2025[13](index=13&type=chunk) - The adoption of the new and revised HKFRSs has not caused significant changes to the Company's accounting policies, financial statement presentation, or reported amounts for the current and prior periods[13](index=13&type=chunk) [Accounting Policies and Basis of Presentation](index=8&type=section&id=Accounting%20Policies%20and%20Basis%20of%20Presentation) The condensed consolidated financial statements are prepared in RMB according to applicable HKFRSs, HK GAAP, GEM Listing Rules, and Hong Kong Companies Ordinance - The unaudited condensed consolidated financial statements are prepared in accordance with all applicable Hong Kong Financial Reporting Standards issued by the HKICPA, Hong Kong Generally Accepted Accounting Principles, the applicable disclosure provisions of the GEM Listing Rules, and the disclosure requirements of the Hong Kong Companies Ordinance[15](index=15&type=chunk) - The unaudited condensed consolidated financial statements for the current period are presented in RMB, which is also the functional currency of the Group[16](index=16&type=chunk) [Revenue](index=9&type=section&id=Revenue) The Group primarily engages in research, development, academic promotion, and clinical registration services, with total revenue increasing by 18.19% year-on-year, 100% from Post-Marketing Surveillance (PMS) services - The Group is principally engaged in research, development, academic promotion, and clinical registration services[17](index=17&type=chunk) Revenue Composition | Revenue Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Post-Marketing Surveillance (PMS) | 21,620 | 18,293 | | **Total Revenue** | **21,620** | **18,293** | - The Group's total revenue for the current period increased by **18.19%** compared to the same period in 2024, with PMS revenue increasing by approximately **18.19%**[18](index=18&type=chunk) [Administrative Expenses](index=9&type=section&id=Administrative%20Expenses) Administrative expenses for the period were RMB 1,389 thousand, a 33.56% increase from the same period in 2024 Administrative Expenses | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Administrative Expenses | (1,389) | (1,040) | - Administrative expenses increased by **33.56%** compared to the same period in 2024[20](index=20&type=chunk) [Earnings Per Share](index=10&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share for the period were 0.87 cents, up from 0.74 cents in the prior year, mainly due to increased net profit attributable to company owners - Basic earnings per share are calculated by dividing the unaudited net profit attributable to owners of the Company of approximately **RMB 8,699,000** (2024: RMB 7,353,000) by the weighted average number of ordinary shares of the Company, which is **995,351,660** shares for the period[21](index=21&type=chunk) Earnings Per Share | Indicator | 2025 (cents) | 2024 (cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 0.87 | 0.74 | | Diluted Earnings Per Share | 0.87 | 0.74 | [Taxation](index=10&type=section&id=Taxation) The Group had no taxable profit in Hong Kong, with China corporate income tax rates ranging from 9%-25%, and some subsidiaries benefiting from a 15% preferential tax rate due to tax incentives - The Group did not generate any taxable profit in Hong Kong during the period, thus no provision for Hong Kong profits tax was made[22](index=22&type=chunk) - China corporate income tax rates range from **9%-25%**, and some subsidiaries enjoy a **15%** preferential income tax rate due to being located in tax-preferential regions and belonging to industries eligible for tax incentives[22](index=22&type=chunk) [Dividends](index=10&type=section&id=Dividends) The Board does not recommend the payment of any dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any dividend for the current period (2024: nil)[23](index=23&type=chunk) [Trade and Bills Receivables](index=11&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables increased to RMB 63,778 thousand, with a significant increase in amounts aged 7 to 12 months Trade and Bills Receivables Aging Analysis | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 21,689 | 27,401 | | 7 to 12 months | 27,022 | 6,043 | | 13 to 18 months | 5,185 | 5,947 | | 19 to 24 months | 4,582 | 1,225 | | 25 to 30 months | 1,225 | 0 | | Over 36 months | 4,075 | 16,968 | | **Total** | **63,778** | **57,584** | [Trade and Other Payables and Accrued Charges](index=11&type=section&id=Trade%20and%20Other%20Payables%20and%20Accrued%20Charges) As of June 30, 2025, total trade payables decreased to RMB 5,623 thousand, primarily due to a significant reduction in payables aged over 36 months Trade Payables Aging Analysis | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 6 | 81 | | 31 to 90 days | 17 | 0 | | 91 to 365 days | 51 | 58 | | Over 365 days | 5,549 | 8,159 | | **Total** | **5,623** | **8,298** | [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=13&type=section&id=Business%20Review) China Medical Group provides full-chain services from drug R&D to sales, focusing on Post-Marketing Surveillance (PMS) and Real-World Study (CHG RWS), building core capabilities through RWD, RWS, and AI to become a leader in real-world clinical research services - The Group provides full-chain services from drug research and development to market sales, initially focusing on Pharmaceutical Development Services (PDS), registration, and pre-market clinical research, and later gradually focusing on Post-Marketing Surveillance (PMS), especially Real-World Study (CHG RWS)[27](index=27&type=chunk) - The Group's business vision is to become a leader in real-world clinical research services, focusing on five major areas: mental and psychological disorders, neurological disorders, allergic diseases, rare diseases, and viral infectious diseases[27](index=27&type=chunk) - This business vision is achieved through the construction of three core capabilities: Real-World Data (RWD), Real-World Study (RWS), and Artificial Intelligence (AI)[27](index=27&type=chunk) - In the first half of 2025, the Group's business developed steadily, with strong demand for post-marketing CRSO services, and the establishment of a biosample testing laboratory to serve clinical research[28](index=28&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's revenue, profit before tax, and net profit all achieved approximately 18% year-on-year growth, while total administrative expenses and staff costs increased by 12.02% 2025 H1 Financial Performance | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Revenue | 21,620,241 | 18,293,013 | 18.19% | | Profit Before Tax | 10,234,000 | 8,651,000 | 18.30% | | Net Profit | 8,699,000 | 7,353,000 | 18.31% | | Total Administrative Expenses and Staff Costs | 3,719,000 | 3,320,000 | 12.02% | - Revenue from post-marketing medical clinical services, clinical research, medical liaison, and medical marketing services accounted for **100%** of total revenue[30](index=30&type=chunk) [Liquidity, Financial Resources, and Gearing Ratio](index=14&type=section&id=Liquidity,%20Financial%20Resources,%20and%20Gearing%20Ratio) As of June 30, 2025, the Group's net current assets and net assets both increased, funding operations through self-generated working capital with no borrowings, making the gearing ratio inapplicable. Future funding will consider various methods to support development Liquidity Indicators | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Net Current Assets | 70,400,000 | 61,393,000 | | Net Assets | 78,416,000 | 69,717,000 | - The Group funds its operations through its own working capital and has no borrowings, thus the gearing ratio is not applicable[31](index=31&type=chunk) - The Group will consider further fundraising through bank loans, new share issues, convertible notes, new bond issues, and other methods to meet working capital and long-term funding needs for future development[32](index=32&type=chunk) [Outlook](index=15&type=section&id=Outlook) Facing current pharmaceutical industry challenges, the Group aims to achieve breakthrough growth through innovative business models, digital medical capabilities, specialized field breakthroughs, brain science research, and big data labs, while building digital specialized clinics [Unicorn Business Model in New Blue Ocean Market](index=15&type=section&id=Unicorn%20Business%20Model%20in%20New%20Blue%20Ocean%20Market) The Group launched "RWS-Therapy" and "D-CRCO" models, leveraging big data clinical research and digital technology to redefine treatment and commercialization - Launched the "Research-Oriented Therapy RWS-Therapy Model" to conduct big data research on five major specialties' clinical conditions and diseases through real-world clinical studies, guiding medication treatment[34](index=34&type=chunk) - Launched the "Digital Clinical Research-Oriented Promotion D-CRCO Model" to precisely empower product commercialization using big data clinical research[34](index=34&type=chunk) [Building Digital Medical Combat Power](index=15&type=section&id=Building%20Digital%20Medical%20Combat%20Power) The Group will build a comprehensive medical terminal service complex, supported by intelligent digital and medical technologies, covering the entire scenario from R&D to patient recovery, forming a closed-loop system - Building a comprehensive medical terminal service complex supported by intelligent digital and medical technologies, covering the entire scenario from R&D to patients[35](index=35&type=chunk) - Forming a closed-loop system from scientific research to rehabilitation and cure, encompassing hospital big data clinical research, digital scientific research product promotion, digital R&D-oriented clinical research specialties, special medical drug diagnosis, and rehabilitation tourism medical services[35](index=35&type=chunk) [Breakthrough in Healing - Becoming a Leading Research and Academic Institution in Anti-Allergy](index=15&type=section&id=Breakthrough%20in%20Healing%20-%20Becoming%20a%20Leading%20Research%20and%20Academic%20Institution%20in%20Anti-Allergy) The Group aims to be a global anti-allergy center, providing services from clinical research to commercial pharmacy zones, collaborating with institutions, and utilizing RWS-THERAPY and CRCO platforms for post-marketing real-world clinical research - The Group's BaiMin Anti-Allergy Center is committed to becoming a global leading anti-allergy center, providing services in the anti-allergy field from clinical research to commercial pharmacy BaiMin specialty zones[36](index=36&type=chunk) - Collaborating with multiple medical institutions and large chains to establish BaiMin Allergy Prevention and Treatment Specialties and BaiMin Anti-Allergy Zones; currently, more than six out of ten anti-allergy drugs are completed by the BaiMin Clinical Research Center[36](index=36&type=chunk) - Utilizing RWS-THERAPY and CRCO platforms to conduct post-marketing real-world clinical research, assisting enterprises in digital academic promotion[36](index=36&type=chunk) [Pioneer in Brain Science Research and Digital Academic Promotion](index=15&type=section&id=Pioneer%20in%20Brain%20Science%20Research%20and%20Digital%20Academic%20Promotion) The Group has extensive experience in brain science, particularly Alzheimer's research, and is committed to clinical and big data research in stroke dementia, epilepsy, Parkinson's, and ALS, aiming to leverage these strengths for more projects - The XiEn Anti-Dementia Research Group has participated in clinical research for **80%** of products in this field, including Donepezil, Memantine, Rivastigmine, and traditional Chinese medicine[37](index=37&type=chunk) - The XiEn Brain Science Digital Clinical Research Center has long been committed to clinical and big data research in stroke dementia, epilepsy, Parkinson's, and Amyotrophic Lateral Sclerosis (ALS), participating in or organizing over **60%** of major national brain science clinical research projects[37](index=37&type=chunk)[38](index=38&type=chunk) [Big Data Lab for New Drug Discovery and Medication Guidance](index=16&type=section&id=Big%20Data%20Lab%20for%20New%20Drug%20Discovery%20and%20Medication%20Guidance) The Group's "RWS Wanquan Center" plans to re-screen and combine existing drugs through big data real-world clinical research to find optimal treatment plans, such as studying how drugs like Yueting prevent stroke, COPD, cardiovascular disease, and lung cancer - The "RWS Wanquan Center" plans to re-screen and combine existing drugs through big data real-world clinical research to find optimal treatment plans[39](index=39&type=chunk) - Researching how drugs like Yueting prevent diseases such as stroke, COPD, cardiovascular disease, and lung cancer in tobacco addiction[39](index=39&type=chunk) [Building Digital Specialty Clinics](index=16&type=section&id=Building%20Digital%20Specialty%20Clinics) The Group collaborates with top medical institutions and leading pharmacy chains to establish research-digital specialty clinics and zones, including Yueting Smoking Cessation, XiEn Psychology, BaiMin Fever & Cough, and Antiviral Drug Research & Treatment, with plans to expand to more hospitals and cloud institutions - Established research-digital specialty clinics and zones with multiple top medical institutions in Beijing, Shanghai, Guangzhou, and leading pharmacy chains and digital medical groups such as Gaoji Medical, Neptune Chain, Weiyi Group, and Miaoshou Medical[40](index=40&type=chunk) - Specialty zones include Yueting Smoking Cessation Research and Treatment, XiEn Psychology Research and Treatment, BaiMin Fever & Cough Research and Treatment, and Antiviral Drug Research and Treatment[40](index=40&type=chunk) - Plans to launch Group-branded specialty clinics and Wanquan specialty pharmacy zones in more hospitals and cloud institutions[41](index=41&type=chunk) [Dividends](index=16&type=section&id=Dividends) The Board does not recommend the payment of any dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025 (2024: nil)[42](index=42&type=chunk) [Material Investments](index=16&type=section&id=Material%20Investments) There were no material investments during the period - Other than as disclosed in this announcement, there were no material investments during the period (2024: nil)[43](index=43&type=chunk) [Material Commitments](index=16&type=section&id=Material%20Commitments) As of June 30, 2025, the Group had no material capital commitments - As of June 30, 2025, the Group had no material capital commitments (December 31, 2024: nil)[44](index=44&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Associates](index=16&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates) During the period, the Group did not undertake any material acquisitions or disposals of subsidiaries and associates - During this period, the Group did not undertake any material acquisitions or disposals of subsidiaries and associates (2024: nil)[45](index=45&type=chunk) [Pledges of Assets](index=17&type=section&id=Pledges%20of%20Assets) As of June 30, 2025, the Group had no available banking facilities or pledges of any assets - As of June 30, 2025, the Group had no available banking facilities (December 31, 2024: RMB 0)[46](index=46&type=chunk) - As of June 30, 2025, the Group had no pledges of any assets (2024: nil)[47](index=47&type=chunk) [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities (2024: nil)[48](index=48&type=chunk) [Capital Structure](index=17&type=section&id=Capital%20Structure) The company's capital structure remained unchanged during the period, with approximately 995,351,660 shares issued - The company's capital structure (including ordinary shares and capital reserves) remained unchanged during the period[49](index=49&type=chunk) - As of June 30, 2025, approximately **995,351,660** shares were issued[49](index=49&type=chunk) [Future Plans for Material Investments or Capital Assets](index=17&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Other than those disclosed, the Group has no future plans for material investments or capital assets - Other than those disclosed in this announcement, the Group has no future plans for material investments or capital assets[50](index=50&type=chunk) [Foreign Exchange Risk](index=17&type=section&id=Foreign%20Exchange%20Risk) The Group's transactions are predominantly denominated in RMB, and foreign currency risk is closely monitored, with hedging undertaken when necessary - During the review period, the vast majority of the Group's transactions were denominated in RMB[51](index=51&type=chunk) - The Group closely monitors its foreign currency risk from time to time and will undertake appropriate hedging when necessary[51](index=51&type=chunk) [Financial Policy](index=17&type=section&id=Financial%20Policy) The Board will continue to follow a prudent policy in managing cash and maintaining strong liquidity to capitalize on future growth opportunities - The Board will continue to follow a prudent policy in managing the Group's cash and maintaining strong and healthy liquidity[52](index=52&type=chunk) - This ensures the Group can fully capitalize on future growth opportunities[52](index=52&type=chunk) [Events After Reporting Period](index=17&type=section&id=Events%20After%20Reporting%20Period) As of the announcement date, there have been no significant subsequent events for the Company or the Group after June 30, 2025 - There have been no significant subsequent events for the Company or the Group from June 30, 2025, up to the date of this announcement[53](index=53&type=chunk) [Human Resources](index=18&type=section&id=Human%20Resources) [Employees and Remuneration Policy](index=18&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's remuneration policy is based on individual performance, offering benefits such as salaries, bonuses, medical care, pension contributions, and share option schemes. As of June 30, 2025, total employees were 44, with total salaries of approximately RMB 2,330,000 - The Group's remuneration policy is primarily determined by individual employee performance, offering benefits such as salaries, bonuses, medical and pension contributions, and a share option scheme[54](index=54&type=chunk)[56](index=56&type=chunk) - As of June 30, 2025, the Group had a total of **44** employees, and total salaries for the period, including those of employees and directors, amounted to approximately **RMB 2,330,000** (2024: approximately RMB 2,280,000)[56](index=56&type=chunk) - The Group provides employees with training and development opportunities and utilizes a share option scheme to incentivize eligible participants[55](index=55&type=chunk)[57](index=57&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) [Purchase, Sale or Redemption of the Company's Shares](index=18&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Shares) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during the period - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during this period[59](index=59&type=chunk) [Competing Interests](index=18&type=section&id=Competing%20Interests) As of June 30, 2025, none of the Company's directors, management shareholders, or their associates had any interests in businesses that compete or may compete with the Group's business - As of June 30, 2025, none of the Company's directors or management shareholders and their respective associates had any interests in businesses that compete or may compete with the Group's business[60](index=60&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and Any Associated Corporations](index=18&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20Any%20Associated%20Corporations) As of June 30, 2025, directors and the chief executive held interests in the shares, underlying shares, and debentures of the Company and its associated corporations, with Mr. Guo Xia holding approximately 72.70% of the total share interest Directors' and Chief Executive's Share Interests | Name | Capacity | Number of Shares (excluding equity derivatives) | Number of Shares held under physically settled equity derivatives | Total Number of Shares | Approximate Percentage of Interest (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Guo Xia | Beneficial Owner | 114,701,941 | 18,150,000 | 132,851,941 | 13.35% | | Guo Xia | Controlled Corporation Interest | 590,716,637 | - | 590,716,637 | 59.35% | | Former Director Song Xuemei | Beneficial Owner | 6,500 | 410,000 | 416,500 | 0.04% | | Zhang Li | Beneficial Owner | 960,000 | - | 960,000 | 0.96% | | Ni Binhui | Beneficial Owner | 100,000 | 100,000 | 200,000 | 0.02% | | Former Director Qiu Rui | Beneficial Owner | - | 120,000 | 120,000 | 0.01% | | Former Director Zhen Ling | Beneficial Owner | - | 100,000 | 100,000 | 0.01% | - Mr. Guo Xia is deemed to have substantial share interests through his wholly-owned entities, Winsland Agents Limited and Venturepharm Holdings Inc[63](index=63&type=chunk) [Substantial Shareholders' Interests](index=21&type=section&id=Substantial%20Shareholders'%20Interests) As of June 30, 2025, Winsland Agents Limited and Venturepharm Holdings Inc. were substantial shareholders, holding 35.10% and 15.01% (beneficial owner) of the Company's shares, respectively, directly or indirectly Substantial Shareholders' Share Interests | Name | Capacity | Number of Shares | Percentage of Interest | | :--- | :--- | :--- | :--- | | Winsland Agents Limited | Beneficial Owner | 349,368,873 | 35.10% | | Winsland Agents Limited | Controlled Corporation Interest | 241,347,764 | 24.25% | | Bright Excel Assets Limited | Beneficial Owner | 91,915,181 | 9.23% | | Venturepharm Holdings Inc. | Beneficial Owner | 149,432,583 | 15.01% | | Venturepharm Holdings Inc. | Controlled Corporation Interest | 91,915,181 | 9.23% | - Winsland Agents Limited and Venturepharm Holdings Inc. are deemed to have interests in the shares of Bright Excel Assets Limited[66](index=66&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=21&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) Other than the disclosed share option scheme, there were no arrangements during the period enabling directors or their associates to subscribe for shares or debentures of the Company or its associated corporations - Other than the disclosed share option scheme, at no time during the period was the Company, its holding company, or any of its subsidiaries or associated corporations a party to any arrangement that would enable the Company's directors and chief executive or their respective associates to subscribe for shares or debentures of the Company or any associated corporation, or to obtain benefits by acquiring shares or debentures of the Company or any other body corporate[67](index=67&type=chunk) [Share Option Scheme](index=22&type=section&id=Share%20Option%20Scheme) [Purpose of the Share Option Scheme](index=22&type=section&id=Purpose%20of%20the%20Share%20Option%20Scheme) The Share Option Scheme aims to acknowledge qualified participants' contributions, offer opportunities to own company shares, incentivize performance, attract and retain talent, and promote the Group's long-term development - The Share Option Scheme aims to acknowledge the contributions and potential contributions that eligible participants have made or may make to the Group[70](index=70&type=chunk) - It provides eligible participants with an opportunity to own individual shares in the Company, thereby incentivizing their performance and efficiency, attracting and retaining talent, and benefiting the Group's long-term development[70](index=70&type=chunk) [Eligible Participants](index=22&type=section&id=Eligible%20Participants) Eligible participants include the Group's directors, employees, consultants, contractors, and beneficiaries of discretionary trusts or beneficial owners of entities, as determined by the Board - Eligible participants include any director, employee (whether full-time or part-time), consultant, advisor, or contractor of the Group, or any entity in which any member of the Group holds an interest[68](index=68&type=chunk) - This also includes any discretionary trust whose discretionary objects include any director, employee, consultant, or contractor of the Group or any invested entity; and any beneficial owner company of any director, employee, consul, or contractor of the Group or any invested entity[68](index=68&type=chunk) [Exercise Price of Share Options](index=22&type=section&id=Exercise%20Price%20of%20Share%20Options) The exercise price of share options must not be less than the highest of the closing price on the offer date, the average closing price of the preceding five business days, and the nominal value of the share - The exercise price of share options shall not be less than the highest of: (i) the closing price of the shares as stated in the daily quotation sheet of the Stock Exchange on the offer date of the specific option; (ii) the average closing price for the five business days immediately preceding the offer date of the specific option; and (iii) the nominal value of the shares on the offer date of the specific option[69](index=69&type=chunk) [Maximum Number of Shares Available for Subscription Under the Share Option Scheme](index=23&type=section&id=Maximum%20Number%20of%20Shares%20Available%20for%20Subscription%20Under%20the%20Share%20Option%20Scheme) The total number of shares under the Share Option Scheme is limited to 30% of issued shares, with an initial scheme mandate limit of 10%, which can be refreshed by shareholders' approval up to 10% of issued shares - The total limit on the number of shares that may be issued upon the exercise of all granted and outstanding options shall not exceed **30%** of the issued shares (the Scheme Limit)[71](index=71&type=chunk) - The scheme mandate limit is **10%** of the total number of issued shares as of the date of approval of the Share Option Scheme[71](index=71&type=chunk) - The Company may, with the approval of shareholders in a general meeting, refresh the scheme mandate limit at any time, provided that the refreshed limit does not exceed **10%** of the issued shares as of the date of approval[71](index=71&type=chunk) [Maximum Entitlement for Each Eligible Participant](index=23&type=section&id=Maximum%20Entitlement%20for%20Each%20Eligible%20Participant) Unless approved by shareholders, the total number of shares issued and to be issued upon exercise of options granted to each eligible participant in any 12-month period shall not exceed 1% of the issued shares - Unless approved by shareholders, the total number of shares issued and to be issued upon the exercise of options granted to each eligible participant (including both exercised and outstanding options) in any 12-month period shall not exceed **1%** of the issued shares[72](index=72&type=chunk) - The total number of shares available for issue under the share option scheme is **88,947,166** shares, representing **8.94%** of the total issued shares as of the date of this interim results announcement[72](index=72&type=chunk) [Performance Targets](index=23&type=section&id=Performance%20Targets) Unless otherwise determined by the Board, there are no performance targets that must be met or achieved before exercising options - Unless otherwise determined by the Board, there are no performance targets that must be met or achieved before exercising the options[73](index=73&type=chunk) [Minimum Period for Holding Options](index=23&type=section&id=Minimum%20Period%20for%20Holding%20Options) Unless otherwise determined by the Board, there is no minimum period for holding options before they can be exercised under the terms of the Share Option Scheme - Unless otherwise determined by the Board, there is no minimum period for holding the option before it can be exercised under the terms of the Share Option Scheme[75](index=75&type=chunk) [Subscription Price of Shares](index=24&type=section&id=Subscription%20Price%20of%20Shares) The subscription price must be at least the highest of the closing price on the grant date, the average closing price of the preceding five business days, and the nominal value of the share - The subscription price must be at least the highest of: (a) the closing price of the shares as stated in the daily quotation sheet of the Stock Exchange on the date of grant; (b) the average closing price of the shares as stated in the daily quotation sheet of the Stock Exchange for the five business days immediately preceding the date of grant; and (c) the nominal value of the shares[76](index=76&type=chunk) [Amount Payable on Acceptance of Option](index=24&type=section&id=Amount%20Payable%20on%20Acceptance%20of%20Option) Each eligible participant must pay HKD 1.00 to the Company upon accepting an option offer, payable within 21 days from the offer date - Each eligible participant shall pay **HKD 1.00** to the Company upon acceptance of an option offer, which shall be payable within **21 days** from the date of the offer[77](index=77&type=chunk) [Time of Exercise of Option](index=24&type=section&id=Time%20of%20Exercise%20of%20Option) Options may be exercised at any time within the option period notified by the Board to each grantee, but not later than 10 years from the grant date - Options may be exercised at any time within the option period notified by the Board to each grantee, provided that no option shall be exercisable later than **10 years** from the date of grant[78](index=78&type=chunk) [Details of Movements in Share Options](index=25&type=section&id=Details%20of%20Movements%20in%20Share%20Options) As of June 30, 2025, the total number of share options was 21,030,000, with no grants, exercises, lapses, or cancellations during the period Share Option Movements Details | Participant Category/Name | Exercise Price Per Share (HKD) | Grant Date | Balance as of Jan 1, 2025 | Granted During Period | Exercised During Period | Lapsed During Period | Cancelled During Period | Balance as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Director Guo Xia | 0.450 | June 30, 2015 | 9,150,000 | - | - | - | - | 9,150,000 | | Director Guo Xia | 0.504 | March 24, 2021 | 9,000,000 | - | - | - | - | 9,000,000 | | Ni Binhui | 0.504 | March 24, 2021 | 100,000 | - | - | - | - | 100,000 | | Group Employees | 0.45 | June 30, 2015 | 280,000 | - | - | - | - | 280,000 | | Group Employees | 0.504 | March 24, 2021 | 2,500,000 | - | - | - | - | 2,500,000 | | **Total** | | | **21,030,000** | **-** | **-** | **-** | **-** | **21,030,000** | - No other share options were granted, exercised, cancelled, or lapsed during the period of this announcement[81](index=81&type=chunk) [Corporate Governance](index=26&type=section&id=Corporate%20Governance) [Corporate Governance Practices](index=26&type=section&id=Corporate%20Governance%20Practices) The company's corporate governance practices are based on the principles and code provisions of Appendix 15 of the GEM Listing Rules, emphasizing board quality, transparency, and accountability to shareholders, with deviations in the separation of Chairman and CEO roles and independent non-executive directors' attendance at general meetings - The Company's corporate governance practices are based on the principles and code provisions stipulated in the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules[82](index=82&type=chunk) - The Company has not appointed a Chief Executive Officer, with daily management handled by executive directors and senior management, which deviates from Code Provision C.2.1 requiring separation of Chairman and Chief Executive Officer roles[82](index=82&type=chunk) - Independent non-executive directors should attend general meetings to gain a full and fair understanding of shareholders' views, and the Board should invite the chairmen of the Audit Committee and other committees to attend annual general meetings to answer questions; the Company has deviations in this regard[82](index=82&type=chunk) [Directors' Securities Transactions](index=26&type=section&id=Directors'%20Securities%20Transactions) The Company adopted a code of conduct for directors' securities transactions no less stringent than GEM Listing Rules, confirming all directors complied during the period - The Company has adopted a code of conduct for directors' securities transactions, the terms of which are no less stringent than the required standards of dealing set out in Rules 5.48 to 5.67 of the GEM Listing Rules[83](index=83&type=chunk) - All directors' securities transactions during this period complied with the required standards of dealing and the code of conduct[83](index=83&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee, comprising four independent non-executive directors chaired by Ms. Liu Na, reviews company reports and internal controls, and has reviewed the unaudited consolidated results for the period, deeming them compliant with accounting standards and adequately disclosed - The Audit Committee comprises four independent non-executive directors, namely Ms. Liu Na (Chairperson), Dr. Ni Binhui, Mr. Guo Tong, and Mr. Wu Shuangsi[84](index=84&type=chunk) - Its primary responsibilities are to review the Company's annual reports and accounts, half-yearly reports, and quarterly reports, as well as the Group's internal control systems, and to provide advice and recommendations to the Board[84](index=84&type=chunk) - The Audit Committee has reviewed the Group's unaudited consolidated results for the current period and is of the opinion that they have been prepared in compliance with applicable accounting standards and requirements and have been adequately disclosed[84](index=84&type=chunk) [Sufficiency of Public Float](index=27&type=section&id=Sufficiency%20of%20Public%20Float) As of the announcement date, the Company maintained a sufficient public float - Based on publicly available information and to the best of the Board's knowledge as of the date of this announcement, the Company maintained a sufficient public float[85](index=85&type=chunk) [By Order of the Board](index=27&type=section&id=By%20Order%20of%20the%20Board) [Board Composition](index=27&type=section&id=Board%20Composition) As of the announcement date, the Board comprises two executive directors (Mr. Guo Xia, Mr. Guo Ruimeng), one non-executive director (Dr. Zhang Li), and four independent non-executive directors (Dr. Ni Binhui, Mr. Guo Tong, Mr. Wu Shuangsi, Ms. Liu Na) - As of the date of this announcement, the Board comprises two executive directors (Mr. Guo Xia and Mr. Guo Ruimeng), one non-executive director (Dr. Zhang Li), and four independent non-executive directors (Dr. Ni Binhui, Mr. Guo Tong, Mr. Wu Shuangsi, and Ms. Liu Na)[86](index=86&type=chunk)

（股份代號：00816） 截至2025年6月30日止六個月 中期業績公告 摘要 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。 JINMAO PROPERTY SERVICES CO., LIMITED 金茂物業服務發展股份有限公司 （於香港註冊成立之有限公司） 1 • 截至2025年6月30日止六個月，本集團總收入約為人民幣1,783.4百萬元， 較截至2024年6月30日止六個月的約人民幣1,491.4百萬元增加約人民幣 292.0百萬元或19.6%。 • 截至2025年6月30日止六個月，本集團毛利約為人民幣401.6百萬元，較截 至2024年6月30日止六個月的約人民幣366.4百萬元增加約9.6%。 • 截至2025年6月30日止六個月，本集團期內利潤約為人民幣184.4百萬元， 較截至2024年6月30日止六個月的約人民幣181.0百萬元增加約1.9%。 • 截至2025年6月30日止六個月，本公司普通權益持有人應佔每股盈利約為 每股人民 ...

[Financial and Operational Summary](index=1&type=section&id=Financial%20and%20Operational%20Summary) [Financial Summary for the Six Months Ended June 30](index=1&type=section&id=截至六月三十日止六個月財務概要) Revenue decreased by 1.9% to RMB 443.9 million, resulting in a loss attributable to owners of the parent of RMB 40.6 million, with basic loss per share at RMB 1.26 cents and operating cash outflow increasing by 25.9% **Financial Summary for the Six Months Ended June 30 (RMB millions):** | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 443.9 | 452.4 | -1.9% | | Loss / (Profit) attributable to owners of the parent | (40.6) | 8.2 | N/A | | Basic Loss / (Earnings) per share (RMB cents) | (1.26) | 0.25 | N/A | | Interim dividend per share (HK cents) | – | – | N/A | | Net cash flow (used in) / from operating activities | (188.3) | (149.5) | +25.9% | - The company shifted from a profit of **RMB 8.2 million** in the prior period to a loss of **RMB 40.6 million** in the current period[2](index=2&type=chunk) [Operational Summary for the Six Months Ended June 30](index=1&type=section&id=截至六月三十日止六個月營運概要) Total assets slightly increased, but inventory and accounts receivable turnover days rose, indicating potential operational efficiency decline, while accounts payable turnover days decreased **Operational Summary for the Six Months Ended June 30 (RMB millions/days):** | Indicator | H1 2025 | FY 2024 | H1 2024 | | :--- | :--- | :--- | :--- | | Total assets | 2,843.6 | 2,829.2 | 2,996.1 | | Inventory turnover days – Raw materials | 79.3 | 61.1 | 60.6 | | Inventory turnover days – Finished goods and work-in-progress | 322.4 | 223.4 | 232.9 | | Accounts receivable turnover days | 63.2 | 61.3 | 66.4 | | Accounts payable turnover days | 62.4 | 67.0 | 62.3 | - Inventory turnover days (raw materials and finished goods) and accounts receivable turnover days both increased, indicating a potential decline in operational efficiency[2](index=2&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=簡明綜合財務報表) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=簡明綜合損益及其他全面收益表) Revenue declined by 1.9% and gross profit by 34.5%, shifting the company from profit to a **RMB 40.586 million** loss attributable to owners of the parent, exacerbated by increased income tax expense **Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, RMB thousands):** | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 443,914 | 452,357 | | Cost of sales | (392,193) | (373,334) | | Gross profit | 51,721 | 79,023 | | Other income and gains, net | 14,525 | 31,862 | | Selling and distribution expenses | (14,961) | (18,579) | | Administrative expenses | (65,862) | (59,640) | | Finance costs | (2,548) | (3,713) | | Profit / (Loss) before tax | (21,074) | 18,703 | | Income tax expense | (18,012) | (9,724) | | Profit / (Loss) for the period | (39,086) | 8,979 | | Profit / (Loss) attributable to owners of the parent | (40,586) | 8,231 | | Profit / (Loss) attributable to non-controlling interests | 1,500 | 748 | | Basic Earnings / (Loss) per share (RMB cents) | (1.26) | 0.25 | - Profit for the period shifted from **RMB 8,979 thousand** in the prior period to a loss of **RMB 39,086 thousand** in 2025, primarily due to a significant decrease in gross profit and increased income tax expense[4](index=4&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=簡明綜合財務狀況報表) Total assets slightly decreased, driven by reduced fixed deposits and increased interest-bearing bank borrowings and dividends payable, resulting in lower net current assets and net assets **Condensed Consolidated Statement of Financial Position (As at June 30, 2025, RMB thousands):** | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 906,204 | 977,416 | | Investment properties | 78,322 | 30,828 | | Fixed deposits | 10,000 | 114,000 | | Total non-current assets | 1,162,005 | 1,289,642 | | **Current assets** | | | | Inventories | 912,803 | 813,976 | | Accounts receivable and bills receivable | 148,544 | 158,838 | | Cash and cash equivalents | 558,602 | 503,804 | | Total current assets | 1,681,619 | 1,539,538 | | **Current liabilities** | | | | Accounts payable and bills payable | 51,270 | 111,160 | | Interest-bearing bank borrowings | 410,295 | 240,285 | | Dividends payable | 117,842 | – | | Total current liabilities | 672,050 | 508,356 | | Net current assets | 1,009,569 | 1,031,182 | | Net assets | 2,133,017 | 2,292,691 | - Fixed deposits within non-current assets significantly decreased from **RMB 114,000 thousand** at the end of 2024 to **RMB 10,000 thousand** as of June 30, 2025[6](index=6&type=chunk) - Interest-bearing bank borrowings in current liabilities increased from **RMB 240,285 thousand** at the end of 2024 to **RMB 410,295 thousand** as of June 30, 2025, and dividends payable increased from zero to **RMB 117,842 thousand**[6](index=6&type=chunk) [Notes to the Condensed Interim Financial Information](index=6&type=section&id=簡明中期財務資料附註) [1. Company Information](index=6&type=section&id=1.%20公司資料) The company, registered in the Cayman Islands, primarily manufactures and sells edible collagen casings, collagen food, skincare, and medical biomaterials - The company's main business encompasses the manufacturing and sale of edible collagen casings, collagen food, skincare products, and high-molecular collagen medical biomaterials[8](index=8&type=chunk) [2.1 Basis of Preparation and Accounting Policies](index=6&type=section&id=2.1%20編製基準及會計政策) Interim financial information is prepared under HKAS 34 'Interim Financial Reporting' and should be read with the 2024 annual consolidated financial statements - Interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[9](index=9&type=chunk) [2.2 Changes in Accounting Policies](index=6&type=section&id=2.2%20會計政策變動) The company adopted HKAS 21 (Revised) 'Lack of Exchangeability', which had no impact on interim financial information due to currency convertibility - The company first adopted HKAS 21 (Revised) 'Lack of Exchangeability', but it had no impact on the financial information[10](index=10&type=chunk) [3. Operating Segment Information](index=7&type=section&id=3.%20經營分部資料) Edible collagen casings generate over 90% of revenue, primarily from mainland China, where most non-current assets are located, and a new major customer emerged - Edible collagen casing products contributed over **90%** of the Group's revenue[11](index=11&type=chunk) **Revenue from External Customers (For the six months ended June 30, RMB thousands):** | Region | 2025 | 2024 | | :--- | :--- | :--- | | Mainland China | 387,600 | 380,261 | | Asia (excluding Mainland China) | 36,246 | 48,162 | | Other countries / regions | 20,068 | 23,934 | | Total | 443,914 | 452,357 | - As of June 30, 2025, a major customer accounted for over **10%** of the Group's revenue, contributing **RMB 49,431 thousand**[14](index=14&type=chunk) [4. Revenue](index=8&type=section&id=4.%20收入) Total revenue decreased by 1.9% to **RMB 443.914 million**, with 99.99% derived from goods transferred at a point in time **Revenue Breakdown (For the six months ended June 30, RMB thousands):** | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Goods transferred at a point in time | 443,885 | 452,323 | | Services transferred over time | 29 | 34 | | Total | 443,914 | 452,357 | [5. Other Income and Gains, Net](index=8&type=section&id=5.%20其他收入及收益，淨額) Other income and gains, net, significantly decreased by **54.4%** to **RMB 14.525 million**, mainly due to reduced bank interest, government grants, and auxiliary material sales **Analysis of Other Income and Gains, Net (For the six months ended June 30, RMB thousands):** | Item | 2025 | 2024 | | :--- | :--- | :--- | | Bank interest income | 7,602 | 17,156 | | Government grants | 1,826 | 4,887 | | Sales of auxiliary materials | 1,930 | 3,596 | | Total | 14,525 | 31,862 | - Other income and gains, net, decreased by **54.4%** year-on-year, primarily due to reduced bank interest income and government grants[16](index=16&type=chunk) [6. Finance Costs](index=8&type=section&id=6.%20融資成本) Finance costs decreased by **31.4%** to **RMB 2.548 million**, primarily driven by lower bank loan interest **Finance Costs (For the six months ended June 30, RMB thousands):** | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank loans | 2,387 | 3,627 | | Interest on lease liabilities | 161 | 86 | | Total | 2,548 | 3,713 | [7. Profit / (Loss) Before Tax](index=9&type=section&id=7.%20除稅前盈利╱（虧損）) The company shifted from pre-tax profit to a **RMB 21.074 million** loss, impacted by lower gross profit, increased inventory provisions, and fair value losses **Profit / (Loss) Before Tax after deducting / (crediting) items (For the six months ended June 30, RMB thousands):** | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 335,472 | 334,283 | | Depreciation of property, plant and equipment | 37,842 | 35,150 | | Provision for obsolete and slow-moving inventories | 22,622 | 2,775 | | Impairment of accounts receivable and bills receivable | 3,027 | 6,395 | | Fair value loss / (gain) on investment properties, net | 258 | (574) | - Profit before tax shifted from **RMB 18,703 thousand** in the prior period to a loss of **RMB 21,074 thousand** in 2025[4](index=4&type=chunk) - Provision for obsolete and slow-moving inventories significantly increased from **RMB 2,775 thousand** in 2024 to **RMB 22,622 thousand** in 2025[18](index=18&type=chunk) [8. Income Tax Expense](index=9&type=section&id=8.%20所得稅開支) Income tax expense significantly increased by **85.2%** to **RMB 18.012 million**, mainly due to financial planning adjustments between China and Hong Kong entities, resulting in dividend withholding tax **Income Tax Expense (For the six months ended June 30, RMB thousands):** | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current – China | 10,712 | 12,865 | | Current – Hong Kong | 647 | 406 | | Deferred tax | 6,653 | (3,547) | | Total tax expense for the period | 18,012 | 9,724 | - Income tax expense increased from **RMB 9,724 thousand** in the prior period to **RMB 18,012 thousand** in 2025, an increase of **85.2%**[21](index=21&type=chunk) - The increase in income tax expense is primarily due to overall financial planning adjustments between the Group's companies in China and Hong Kong, resulting in dividend withholding tax expenses and provisions[48](index=48&type=chunk) [9. Dividends](index=10&type=section&id=9.%20股息) The company declared and paid **RMB 118.328 million** in 2024 final and special dividends, but the Board does not recommend an interim dividend for this period **Dividends Declared and Paid (For the six months ended June 30, RMB thousands):** | Item | 2025 | 2024 | | :--- | :--- | :--- | | Final dividend declared and paid for 2024 | 59,164 | 58,725 | | Special dividend declared and paid for 2024 | 59,164 | 58,725 | | Total | 118,328 | 117,450 | - The Board does not recommend paying any interim dividend for this reporting period[22](index=22&type=chunk) [10. Earnings / (Loss) Per Share Attributable to Owners of the Parent](index=11&type=section&id=10.%20母公司普通股權益持有人應佔每股盈利╱（虧損）) Basic loss per share attributable to owners of the parent was **RMB 1.26 cents**, a shift from **RMB 0.25 cents** profit in the prior period, with no dilutive shares **Earnings / (Loss) Per Share Attributable to Owners of the Parent (For the six months ended June 30, RMB cents per share):** | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic and diluted | (1.26) | 0.25 | - Basic earnings per share shifted from a profit of **RMB 0.25 cents** in the prior period to a loss of **RMB 1.26 cents** in the current period[23](index=23&type=chunk) [11. Accounts Receivable and Bills Receivable](index=11&type=section&id=11.%20應收賬款及應收票據) Total accounts receivable and bills receivable slightly decreased to **RMB 148.544 million**, with the majority aged within three months **Aging Analysis of Accounts Receivable and Bills Receivable (As at June 30, RMB thousands):** | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 48,496 | 72,326 | | 1 to 3 months | 47,038 | 43,777 | | 3 to 6 months | 44,576 | 33,653 | | 6 months to 1 year | 4,807 | 3,618 | | Over 1 year | 3,627 | 5,464 | | Total | 148,544 | 158,838 | [12. Accounts Payable and Bills Payable](index=11&type=section&id=12.%20應付賬款及應付票據) Total accounts payable and bills payable significantly decreased by **53.9%** to **RMB 51.270 million**, with the largest portion due within one month **Aging Analysis of Accounts Payable and Bills Payable (As at June 30, RMB thousands):** | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 35,594 | 38,257 | | 1 to 2 months | 499 | 12,168 | | 2 to 3 months | 1,162 | 9,753 | | 3 to 6 months | 6,002 | 41,396 | | Over 6 months | 8,013 | 9,586 | | Total | 51,270 | 111,160 | - Total accounts payable and bills payable significantly decreased by **53.9%** from **RMB 111,160 thousand** at the end of 2024 to **RMB 51,270 thousand** as of June 30, 2025[25](index=25&type=chunk) [13. Share Capital](index=12&type=section&id=13.%20股本) Authorized share capital remained at **HKD 200,000 thousand**, with issued and fully paid share capital at **HKD 32,305 thousand** (equivalent to **RMB 27,807 thousand**), consistent with 2024 year-end **Share Capital (As at June 30, RMB thousands):** | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Authorized share capital (20,000,000,000 ordinary shares of HKD 0.01 each) | 200,000 (HKD) | 200,000 (HKD) | | Issued and fully paid share capital (3,230,480,000 ordinary shares of HKD 0.01 each) | 32,305 (HKD) | 32,305 (HKD) | | Equivalent (RMB thousands) | 27,807 | 27,807 | [Management Discussion and Analysis](index=13&type=section&id=管理層討論及分析) [Market Review](index=13&type=section&id=市場回顧) China's GDP grew by **5.3%** in H1 2025, with future policies expected to boost domestic consumption and drive collagen casing market growth - China's GDP grew by **5.3%** year-on-year in the first half of 2025, with the national economy maintaining overall resilience[27](index=27&type=chunk) - Future policies are expected to further unleash domestic consumption potential, driving sustained growth in China's collagen casing market demand[27](index=27&type=chunk) [Business Review](index=13&type=section&id=業務回顧) The Group focused on quality and high-end products, expanding into food, skincare, and medical biomaterials, with the latter showing exceptional performance in R&D and approvals - The Group's core guiding principle is "strengthening standard management and solidifying new product quality," with a focus on increasing the proportion of high-end casing products, accounting for approximately **40%** of first-half sales volume[28](index=28&type=chunk) - The Group is intensifying market development efforts in new business areas such as collagen food, skincare products, and high-molecular collagen medical biomaterials[28](index=28&type=chunk) [Collagen Casings](index=14&type=section&id=膠原蛋白腸衣) New collagen casing products gained significant market acceptance, production efficiency improved through innovation, and raw material sourcing and cost management were enhanced - Market acceptance for the six new series of collagen casing products significantly improved after market promotion[29](index=29&type=chunk) - Production processes were optimized through technological innovation, equipment upgrades, and resource investment, enhancing production efficiency[29](index=29&type=chunk) - Raw material import channels were expanded, and domestic acquisition points increased to ensure stable supply, while standardized management of equipment and spare parts was implemented to reduce costs[29](index=29&type=chunk) [High-Molecular Collagen Medical Biomaterials, Collagen Food and Skincare Products](index=14&type=section&id=高分子膠原蛋白醫用生物材料、膠原蛋白食品及膠原蛋白護膚品) Non-casing business sales grew by **93%**, led by high-molecular collagen medical biomaterials with strong performance and progress in medical device approvals, exceeding FDA standards - Sales of business segments other than collagen casings increased by approximately **93%** year-on-year, with high-molecular collagen medical biomaterials performing exceptionally well[30](index=30&type=chunk) - The endotoxin content of medical collagen raw materials is only **0.01EU/ml**, superior to the US FDA standard of **0.5EU/ml**[30](index=30&type=chunk) - Documentation for the "Collagen Bone Graft Material (Artificial Bone)" Class III medical device product license approval is being finalized, and clinical trials for "Dental Medical Collagen Sponge" have been completed, with plans to enter the application process in the second half of the year[30](index=30&type=chunk) [Group Accolades](index=14&type=section&id=集團榮譽) The 'Shenguan' brand was recognized among China's Top 500 Most Valuable Brands, maintaining its research center status, holding **116 patents**, and collaborating on research with universities - The "Shenguan" brand was evaluated by the World Brand Lab as one of China's Top 500 Most Valuable Brands in 2025[31](index=31&type=chunk) **Group Patent Status (As at June 30, 2025):** | Patent Authority | Total Granted | In Force | Pending | | :--- | :--- | :--- | :--- | | China National Intellectual Property Administration | 108 | 71 | 22 | | Taiwan Intellectual Property Office, Ministry of Economic Affairs | 2 | 2 | – | | United States Patent and Trademark Office | 1 | 1 | – | | Intellectual Property Office of Singapore | 2 | 2 | – | | Intellectual Property Department, Ministry of Commerce, Cambodia | 1 | 1 | – | | Directorate General of Intellectual Property, Indonesia | 1 | 1 | – | | Intellectual Property Corporation of Malaysia | 1 | 1 | – | | Total | 116 | 79 | 22 | - The Group collaborates closely with Huazhong University of Science and Technology, publishing research articles in *Advanced Science* and *BioDesign Research* journals, with six co-developed patents authorized or pending[32](index=32&type=chunk)[33](index=33&type=chunk) [Quality Control](index=16&type=section&id=質量控制) Strict quality control, multiple ISO and FDA certifications enable global exports, while a subsidiary's extensive testing capabilities support high-end collagen raw material development - Collagen casing production is certified with multiple management systems including ISO9001, ISO22000, ISO10012, ISO45001, and ISO14001, and has obtained US FDA registration, allowing products to be exported to Southeast Asia, Europe, and the United States[34](index=34&type=chunk) - Subsidiary Wuzhou Zhongguan Testing Technology Service Co., Ltd. possesses over **800** physicochemical indicator testing capabilities and provides third-party impartial testing services, which helps the Group develop a high-end collagen raw material base[35](index=35&type=chunk) [Customer Relationships](index=16&type=section&id=客戶關係) The Group maintains strong, long-term relationships with domestic and international partners, ensuring a stable customer base and continuous new client acquisition - The Group maintains close relationships with leading meat product processing and sausage manufacturers in China and various overseas markets including Southeast Asia, South America, and the United States[36](index=36&type=chunk) - The Group continuously attracts new customers while maintaining its existing customer base, achieving good results[36](index=36&type=chunk) [Raw Material Supply](index=16&type=section&id=原料供應) Bovine inner hide supply has been stable since H2 2024, significantly improving from prior years, with the main supplier holding a food production license - The supply of bovine inner hide, the main raw material for collagen casings, has remained stable since the second half of 2024, showing significant improvement compared to the previous two years[37](index=37&type=chunk) - The main supplier, Guangxi Zhiguan Industrial Development Co., Ltd., has obtained a food production license valid until October 2027[38](index=38&type=chunk) [Financial Analysis](index=17&type=section&id=財務分析) Revenue decreased by 1.9% and gross profit by 34.5%, leading to a **RMB 40.6 million** loss attributable to owners of the parent, impacted by weak consumer confidence, inventory write-downs, and increased tax expense - Revenue decreased by **1.9%** to **RMB 443.9 million**, primarily due to weakened demand in the meat market caused by insufficient consumer confidence[39](index=39&type=chunk) - Gross profit decreased by **34.5%** to **RMB 51.7 million**, with the gross profit margin falling from **17.5%** to **11.7%**, mainly due to inventory write-downs and preferential sales policies for old process products[41](index=41&type=chunk) - Loss attributable to owners of the parent was approximately **RMB 40.6 million**, a reversal from a profit of approximately **RMB 8.2 million** in the prior period[50](index=50&type=chunk) [Revenue](index=17&type=section&id=收入) Revenue decreased by **1.9%** to **RMB 443.9 million**, primarily due to weakened market demand for meat products amid insufficient consumer confidence **Revenue (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 443.9 | | Prior period | 452.4 | | Change | -1.9% | [Cost of Sales](index=17&type=section&id=銷售成本) Cost of sales increased by **5.1%** to **RMB 392.2 million**, driven by a **312.5%** surge in inventory write-downs and provisions, despite slight reductions in raw material and energy costs **Cost of Sales Composition (RMB millions):** | Item | Current Period | Prior Period | Change | | :--- | :--- | :--- | :--- | | Total cost of sales | 392.2 | 373.3 | +5.1% | | Inventory write-downs and provisions | 23.1 | 5.6 | +312.5% | | Raw material costs | 163.1 | 164.7 | -1.0% | | Energy expenses | 76.2 | 76.4 | -0.2% | | Direct labor costs | 78.7 | 75.5 | +4.2% | - Inventory write-downs and provisions significantly increased from **RMB 5.6 million** in the prior period to **RMB 23.1 million** in the current period, which is the main reason for the increase in cost of sales[40](index=40&type=chunk) [Gross Profit](index=17&type=section&id=毛利) Gross profit decreased by **34.5%** to **RMB 51.7 million**, with gross profit margin falling from **17.5%** to **11.7%**, primarily due to inventory write-downs and promotional sales **Gross Profit and Gross Profit Margin (RMB millions):** | Indicator | Current Period | Prior Period | Change | | :--- | :--- | :--- | :--- | | Gross profit | 51.7 | 79.0 | -34.5% | | Gross profit margin | 11.7% | 17.5% | -5.8 percentage points | | Gross profit margin after deducting inventory write-downs and provisions | 16.8% | 18.7% | -1.9 percentage points | - The decrease in gross profit margin is primarily due to increased inventory write-downs and provisions, as well as preferential policies implemented to accelerate sales of old process products[41](index=41&type=chunk) [Other Income and Gains](index=18&type=section&id=其他收入及收益) Other income and gains decreased by **54.4%** to **RMB 14.5 million** **Other Income and Gains (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 14.5 | | Prior period | 31.9 | | Change | -54.4% | [Selling and Distribution Expenses](index=18&type=section&id=銷售及分銷開支) Selling and distribution expenses decreased by **19.5%** to **RMB 15.0 million**, with its revenue ratio falling from **4.1%** to **3.4%** **Selling and Distribution Expenses (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 15.0 | | Prior period | 18.6 | | Change | -19.5% | [Administrative Expenses](index=18&type=section&id=行政開支) Administrative expenses increased by **10.4%** to **RMB 65.9 million**, primarily due to higher staff costs and a **RMB 2.9 million** revaluation loss on investment properties **Administrative Expenses (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 65.9 | | Prior period | 59.6 | | Change | +10.4% | - The increase in administrative expenses is mainly due to higher employee remuneration and benefits expenses, and a revaluation loss of approximately **RMB 2.9 million** on investment properties[44](index=44&type=chunk) [Finance Costs](index=18&type=section&id=融資成本) Finance costs decreased by **31.4%** to **RMB 2.5 million** **Finance Costs (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 2.5 | | Prior period | 3.7 | | Change | -31.4% | [Share of Loss of an Associate](index=18&type=section&id=分佔一間聯營公司之虧損) The Group no longer shared losses from an associate in the current period, as its net investment had been reduced to zero by prior losses and impairment **Share of Loss of an Associate (RMB thousands):** | Period | Amount | | :--- | :--- | | Current period | – | | Prior period | (287) | [Impairment of Accounts Receivable and Bills Receivable](index=18&type=section&id=應收賬款及應收票據減值) Impairment of accounts receivable and bills receivable decreased to **RMB 3.0 million** from **RMB 6.4 million** in the prior period **Impairment of Accounts Receivable and Bills Receivable (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 3.0 | | Prior period | 6.4 | [Income Tax Expense](index=19&type=section&id=所得稅開支) Income tax expense significantly increased to **RMB 18.0 million** from **RMB 9.7 million**, primarily due to financial planning adjustments between China and Hong Kong entities, leading to dividend withholding tax **Income Tax Expense (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 18.0 | | Prior period | 9.7 | - Income tax expense significantly increased, primarily due to overall financial planning adjustments between the Group's companies in China and Hong Kong, resulting in dividend withholding tax expenses and provisions[48](index=48&type=chunk) [Profit Attributable to Non-Controlling Interests](index=19&type=section&id=非控股權益應佔盈利) Profit attributable to non-controlling interests increased to **RMB 1.5 million**, representing the aggregate profit from non-wholly owned subsidiaries **Profit Attributable to Non-Controlling Interests (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | 1.5 | | Prior period | 0.7 | [Loss Attributable to Owners of the Parent](index=19&type=section&id=母公司擁有人應佔虧損) The Group reported a loss attributable to owners of the parent of **RMB 40.6 million**, a reversal from a **RMB 8.2 million** profit in the prior period **Loss Attributable to Owners of the Parent (RMB millions):** | Period | Amount | | :--- | :--- | | Current period | (40.6) | | Prior period | 8.2 | [Liquidity and Capital Resources](index=19&type=section&id=流動資金及資本資源) Cash and equivalents, net of dividends, decreased to **RMB 477.1 million**, while bank borrowings rose to **RMB 410.3 million**, increasing the debt-to-equity ratio to **19.7%**; operating cash outflow was **RMB 188.3 million**, with future capital commitments of **RMB 130.2 million** - As of June 30, 2025, cash and cash equivalents, together with pledged and fixed deposits, amounted to approximately **RMB 595.0 million**, or **RMB 477.1 million** after deducting dividends, a decrease of approximately **RMB 169.2 million** from the end of 2024[51](index=51&type=chunk) - Total bank borrowings increased to approximately **RMB 410.3 million**, all repayable within one year[52](index=52&type=chunk) - The net cash position (after deducting dividends) was **RMB 66.8 million**, a decrease of approximately **RMB 339.2 million** from the end of 2024; the debt-to-equity ratio increased to **19.7%** (December 31, 2024: **10.8%**)[53](index=53&type=chunk) [Cash and Bank Borrowings](index=19&type=section&id=現金及銀行借貸) Cash and equivalents, net of dividends, decreased to **RMB 477.1 million**, while bank borrowings rose to **RMB 410.3 million**, increasing the debt-to-equity ratio to **19.7%** **Cash and Bank Borrowings Overview (RMB millions):** | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents together with pledged and fixed deposits | 595.0 | 646.3 | | Cash and cash equivalents together with pledged and fixed deposits after deducting dividends | 477.1 | – | | Total bank borrowings | 410.3 | 240.3 | | Net cash position (after deducting dividends) | 66.8 | 406.0 | | Debt-to-equity ratio | 19.7% | 10.8% | [Cash Flows](index=20&type=section&id=現金流量) Net cash outflow from operating activities was **RMB 188.3 million**, primarily due to increased inventory and reduced accounts payable, offset by inflows from investing and financing activities **Cash Flows (For the six months ended June 30, RMB millions):** | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash outflow from operating activities | (188.3) | (149.5) | | Net cash inflow from investing activities | 57.6 | – | | Net cash inflow from financing activities | 164.9 | – | - Net cash outflow from operating activities increased by **25.9%**, mainly due to increased inventory and decreased accounts payable[54](index=54&type=chunk) [Exposure to Exchange Rate Risk](index=20&type=section&id=承受匯兌風險) Operating primarily in China with RMB-denominated transactions, the Group has no formal hedging policy, as the Board anticipates no significant impact from future currency fluctuations - The Group primarily settles transactions in Renminbi and has not adopted a formal hedging policy, as the Board believes future currency fluctuations will not have a significant impact on operations[55](index=55&type=chunk) [Capital Expenditure](index=21&type=section&id=資本開支) Capital expenditure was **RMB 17.3 million**, with future commitments of **RMB 130.2 million** for capacity expansion and equipment upgrades, including **RMB 100.0 million** estimated for 2025 **Capital Expenditure and Commitments (RMB millions):** | Item | Amount | | :--- | :--- | | Capital expenditure for the current period | 17.3 | | Capital commitments as of June 30, 2025 | 130.2 | | Estimated capital expenditure for 2025 | 100.0 | - Future capital commitments are primarily related to expanding, improving, and upgrading production equipment, particularly for the renovation of high-quality collagen casing production lines[56](index=56&type=chunk) [Pledge of Assets](index=21&type=section&id=資產抵押) Pledged bank deposits totaled **RMB 26.4 million** as of June 30, 2025 **Pledged Bank Deposits (RMB millions):** | Date | Amount | | :--- | :--- | | June 30, 2025 | 26.4 | [Contingent Liabilities](index=21&type=section&id=或然負債) The Group had no significant contingent liabilities as of June 30, 2025 - The Group had no significant contingent liabilities as of the end of the reporting period[58](index=58&type=chunk) [Material Investments, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=21&type=section&id=重大投資、重大收購及出售附屬公司、聯營公司及合營企業) No significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures occurred during the period - No material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures occurred during the reporting period[59](index=59&type=chunk) [Events After the Reporting Period](index=21&type=section&id=本期間後事項) No significant post-reporting period events affecting the Group have occurred as of this announcement date - No significant events affecting the Group have occurred subsequent to the reporting period as of the date of this announcement[60](index=60&type=chunk) [Human Resources](index=21&type=section&id=人力資源) The Group had **3,010** employees with **RMB 134.7 million** in staff costs, focusing on automation to mitigate rising labor expenses **Human Resources Overview (RMB millions):** | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of contracted employees | 3,010 | 2,730 | | Total remuneration and employee benefits expenses | 134.7 | 124.0 | - The Group is committed to enhancing automated production to offset continuously rising labor costs[61](index=61&type=chunk) [Outlook](index=22&type=section&id=展望) [Macroeconomic Outlook](index=22&type=section&id=宏觀經濟展望) China's government will continue implementing policies to stabilize employment, boost consumption, and expand emerging industry investment, aiming to unleash domestic demand potential - The country will continue to promote policies to stabilize employment, boost consumption, and expand investment in emerging industries to unleash domestic demand potential[62](index=62&type=chunk) [Collagen Casing Business Outlook](index=22&type=section&id=膠原蛋白腸衣業務展望) The Group will focus on standardizing collagen casing production, enhancing new product applicability, improving efficiency, resolving bottlenecks, and strengthening market expansion efforts - Key work for the second half of the year includes strengthening standardized production management and enhancing the applicability of the six new series of products[63](index=63&type=chunk) - The Group will advance improvements in the production environment, site environment, and equipment environment to enhance production efficiency and product quality[63](index=63&type=chunk) - The Group plans to improve collagen casing production support capabilities, resolve production bottlenecks, and conduct training for market marketing and technical service teams to continuously expand the market[63](index=63&type=chunk) [High-Molecular Collagen Medical Biomaterials Industry Outlook](index=23&type=section&id=高分子膠原蛋白醫用生物材料產業展望) The Group will boost medical collagen raw material sales, expedite Class III medical device approvals for 'artificial bone' and 'oral collagen sponge,' and advance other biomaterial R&D - The Group will continue to promote the production and sales of medical collagen raw materials to enhance performance[64](index=64&type=chunk) - Efforts will be made to accelerate the finalization of supplementary materials required for "artificial bone" approval and to compile post-clinical data for "oral medical collagen sponge" in preparation for application[65](index=65&type=chunk)[66](index=66&type=chunk) - The Group will continue to advance the research and development and preclinical preparation for other high-molecular collagen medical biomaterials[67](index=67&type=chunk) [Collagen Food Industry Outlook](index=23&type=section&id=膠原蛋白食品產業展望) The Group will innovate high-molecular collagen food applications, expand marketing for 'Niu Xiaojin' and 'Boboji,' and adjust strategies via in-store and online channels to boost performance - The Group will expand marketing and promotion for products such as "Niu Xiaojin" and "Boboji"[67](index=67&type=chunk) - Marketing strategies will be adjusted, and the marketing team expanded, utilizing in-store experiences and online live streaming to strive for better performance[67](index=67&type=chunk) [Collagen Skincare Products Industry Outlook](index=23&type=section&id=膠原蛋白護膚品產業展望) The Group will research high-molecular collagen in skincare, develop new products, expand brands like 'Luxianna,' and enhance advertising and sales planning for dual online and offline sales - The Group will continue to research and develop new daily skincare and washing products, expanding the product chain for brands such as "Luxianna," "Gaojile," "Collagen Family," and "Guangcaidunsheng"[68](index=68&type=chunk) - Advertising and sales planning will be strengthened to fully promote both online (e-commerce, WeChat commerce) and offline sales[68](index=68&type=chunk) [Overall Group Strategy](index=23&type=section&id=集團整體戰略) The Group aims to accelerate Shenguan's health industry development, expand collagen technology applications, launch more products, and enhance shareholder returns - The Group's team will continue to strive to accelerate the development of Shenguan's grand health industry and further expand the technological application of collagen[68](index=68&type=chunk) - The Group will develop and launch more collagen industry chain products to the market, providing better investment returns for shareholders[68](index=68&type=chunk) [Other Information](index=24&type=section&id=其他資料) [Share Option Scheme](index=24&type=section&id=購股權計劃) The employee stock option scheme, adopted in 2020 and revised in 2024, aims to attract and retain talent, with a 10% share cap and approximately 5 years remaining; no options were transacted this period - The share option scheme aims to attract and retain qualified individuals and promote the Group's business development[69](index=69&type=chunk) - The scheme has a ten-year validity, with approximately **5 years** remaining as of June 30, 2025[69](index=69&type=chunk) - Under the scheme, the total number of shares that can be issued is capped at **10%** of the issued shares on the adoption date (**323,048,000 shares**)[72](index=72&type=chunk) [Payment of Interim Dividend](index=25&type=section&id=派付中期股息) The Board does not recommend an interim dividend for this period, prioritizing future capital expenditures and market expansion needs - The Board does not recommend paying an interim dividend for this reporting period, to support future capital expenditures and market expansion[75](index=75&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=25&type=section&id=購買、贖回或出售本公司的上市證券) Neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities during the period - During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities[76](index=76&type=chunk) [Corporate Governance Code](index=25&type=section&id=企業管治守則) The company complied with corporate governance codes, except for the combined Chairman and CEO roles, which the Board is reviewing, while the Chairman ensures board effectiveness and shareholder communication - The company did not comply with code provision C.2.1 (separation of Chairman and Chief Executive Officer roles), but the Board believes the current structure fosters strong leadership[77](index=77&type=chunk) - The company will continue to consider the feasibility of appointing a separate Chief Executive Officer[78](index=78&type=chunk) - The Chairman's responsibilities include ensuring the Board acts in the company's best interests, maintaining effective communication with shareholders, and leading the Board's effective operation[79](index=79&type=chunk)[81](index=81&type=chunk) [Model Code for Securities Transactions](index=26&type=section&id=上市規則標準守則) The company adopted the Listing Rules' Model Code for securities transactions, with all directors confirming compliance and no known breaches by senior management - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period[80](index=80&type=chunk) [Audit Committee](index=27&type=section&id=審核委員會) The Audit Committee, comprising three independent non-executive directors with a professionally qualified Chairman, reviewed and approved the interim results, confirming compliance with standards - The Audit Committee comprises three independent non-executive directors, with Mr. Xu Rongguo, the Chairman, possessing professional accounting qualifications[82](index=82&type=chunk) - The Committee has reviewed and approved the Group's unaudited condensed consolidated interim results, deeming them compliant with all applicable accounting standards and Listing Rules[82](index=82&type=chunk) [Board of Directors](index=27&type=section&id=承董事會命) [Board Members](index=27&type=section&id=董事會成員) The Board comprises four executive directors, one non-executive director, and three independent non-executive directors, including the Chairman - The Board of Directors includes four executive directors, one non-executive director, and three independent non-executive directors[83](index=83&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2025, was approximately HKD 242.8 million, a decrease of 44.0% compared to approximately HKD 433.9 million for the same period in 2024[2]. - Gross profit for the same period was approximately HKD 28.7 million, down 61.5% from approximately HKD 74.6 million in 2024[2]. - Gross margin decreased to approximately 11.8%, down 5.4% from approximately 17.2% in the previous year[2]. - Loss attributable to owners of the company was approximately HKD 26.4 million, compared to a loss of approximately HKD 5.9 million in the same period of 2024[2]. - Basic loss per share was HKD 2.20, compared to earnings of HKD 0.49 per share for the six months ended June 30, 2024[2]. - The company reported a net loss of HKD 26,394,000 for the six months ended June 30, 2025, compared to a profit of HKD 5,896,000 in the previous year[6]. - Basic and diluted loss per share for the period was HKD 0.49, compared to a profit of HKD 0.18 per share in 2024[6]. - The attributable profit for the period was approximately HKD 26.4 million, a significant decrease of about 547.5% compared to HKD 5.9 million for the same period last year[43]. Assets and Liabilities - Total assets as of June 30, 2025, were HKD 1,146.6 million, down from HKD 1,414.0 million as of December 31, 2024[4]. - Total liabilities were HKD 437.6 million as of June 30, 2025, compared to HKD 682.1 million as of December 31, 2024[5]. - Equity attributable to owners of the company was HKD 708.9 million as of June 30, 2025, down from HKD 731.9 million at the end of 2024[4]. - Cash and cash equivalents were HKD 169.2 million, down from HKD 291.0 million as of December 31, 2024[4]. - The total borrowings as of June 30, 2025, were HKD 216,941,000, with a weighted average interest rate of 3.23%, down from 4.03% as of December 31, 2024[28]. - Trade payables as of June 30, 2025, totaled HKD 10,645,000, a decrease from HKD 12,313,000 as of December 31, 2024[32]. Revenue Breakdown - Revenue from Vietnam was HKD 158,543,000, while revenue from China was HKD 68,569,000 for the six months ended June 30, 2025[21]. - Revenue from solar frames was HKD 158.1 million, accounting for 65.1% of total revenue, a decrease of approximately 46.6% year-on-year[45]. - Revenue from electronic consumer products was HKD 17.7 million, accounting for 7.3% of total revenue, a decrease of approximately 49.7% year-on-year[45]. - Revenue from electric vehicles was HKD 40.3 million, accounting for 16.6% of total revenue, a decrease of approximately 9.0% year-on-year[45]. - Revenue from industrial products was HKD 26.7 million, accounting for 11.0% of total revenue, a decrease of approximately 54.2% year-on-year[45]. Expenses - Administrative expenses increased to HKD 69,704,000 from HKD 57,441,000, reflecting a rise of approximately 21%[6]. - Distribution and selling expenses rose to HKD 12,359,000 from HKD 8,377,000, marking an increase of about 47%[6]. - Selling expenses decreased to approximately 8.4 million HKD from 12.4 million HKD in the same period of 2024, primarily due to reduced transportation costs and sales commissions[49]. - Administrative expenses decreased to approximately 57.4 million HKD from 69.7 million HKD in the same period of 2024, mainly due to a reduction in prepaid expenses[50]. Risk Management - The group faces commodity price risk primarily due to fluctuations in aluminum prices, which could impact financial performance[15]. - The group has established risk management policies to mitigate market, credit, and liquidity risks, which have not changed since the last fiscal year-end[13]. - The company has implemented stricter credit controls in the domestic market as part of its risk management strategy[42]. - The geopolitical tensions and changing trade policies have negatively impacted customer confidence and order volumes[42]. Corporate Governance - The financial statements were approved for publication by the board on August 25, 2025, ensuring compliance with relevant regulations[9]. - The audit committee reviewed the accounting principles and practices adopted by the group for the period[74]. - The interim financial results have been reviewed by the audit committee but are unaudited[75]. - The company announced the appointment of new executive directors, including Mr. Pan Zhaolong and Mr. He Baiyao[78]. - The board includes independent non-executive directors, such as Dr. Zhang Huaqiang, Mr. Chen Qinen, and Mr. Wen Yaoguang[78]. Employee and Operational Metrics - Employee costs for the period amounted to approximately HKD 32.9 million, down from HKD 34.1 million in the same period last year[66]. - The group employed approximately 615 employees as of June 30, 2025, a decrease from 720 employees as of December 31, 2024[66]. Future Outlook - The company anticipates continued challenges in the market due to weak demand in several sectors and macroeconomic uncertainties, but is focused on maintaining long-term profitability and creating shareholder value[56].

ANJOY FOODS GROUP CO., LTD. 安井食品集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2648） 截至2025年6月30日止六個月之中期業績公告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 承董事會命 | 公司資料 | 2 | | --- | --- | | 管理層討論與分析 | 4 | | 企業管治及其他資料 | 26 | | 中期簡明綜合財務報表 | 42 | | －中期簡明綜合損益表 | 42 | | －中期簡明綜合全面收益表 | 43 | | －中期簡明綜合財務狀況表 | 44 | | －中期簡明綜合權益變動表 | 46 | | －中期簡明綜合現金流量表 | 48 | | －中期簡明綜合財務報表附註 | 50 | | 釋義 | 66 | 安井食品集團股份有限公司 安井食品集團股份有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其 附屬公司截至2025年6月30日止六個月之未經審 ...

[Company Information and Declarations](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%A3%B0%E6%98%8E) This section outlines the company's profile, GEM listing features, and disclaimers [Company Profile](index=1&type=section&id=1.1%20%E5%85%AC%E5%8F%B8%E6%A6%82%E5%86%B5) Yunhong Silicon Xin Group Holdings Limited, incorporated in the Cayman Islands with stock code **8349**, primarily engages in R&D, production, and sales of FRP products and industrial silica sand - The company was incorporated in the Cayman Islands on **January 13, 2016**, and listed on GEM of the Stock Exchange since **January 13, 2017**[9](index=9&type=chunk) - The Group's principal businesses include: (i) research, development, production, and sale of fiberglass reinforced plastic (FRP) products; and (ii) sale of industrial silica sand materials[9](index=9&type=chunk) [GEM Listing Characteristics and Disclaimer](index=1&type=section&id=1.2%20GEM%E4%B8%8A%E5%B8%82%E7%89%B9%E8%89%B2%E4%B8%8E%E5%85%8D%E8%B4%A3%E5%A3%B0%E6%98%8E) This announcement highlights GEM as a listing platform for SMEs with higher investment risks, including disclaimers from the Stock Exchange and company directors to ensure information accuracy - The GEM market is positioned as a listing platform for small and medium-sized enterprises, entailing relatively **higher investment risks** and potential for significant securities market volatility[3](index=3&type=chunk) - The Board confirms that the information contained in this announcement is accurate and complete in all material respects, without misleading or fraudulent elements[4](index=4&type=chunk) [Financial Performance](index=2&type=section&id=%E8%B4%A2%E5%8A%A1%E4%B8%9A%E7%BB%A9) This section presents the Group's condensed consolidated financial statements, including income, balance sheet, equity changes, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=2.1%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue decreased by **21.21%** year-on-year, gross profit fell by **24.68%**, operating loss widened to **RMB 3,836 thousand**, and net loss expanded by **124.06%** year-on-year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,673 | 16,076 | -21.21% | | Cost of Sales | (10,800) | (13,592) | -20.40% | | Gross Profit | 1,873 | 2,484 | -24.68% | | Other Income | 330 | 117 | 182.05% | | Other Net Gains | 1 | 67 | -98.51% | | Distribution Costs | (657) | (1,964) | -66.55% | | Administrative Expenses | (5,383) | (2,309) | 133.13% | | Operating Loss | (3,836) | (1,605) | 139.00% | | Finance Costs | (54) | (102) | -47.06% | | Loss Before Tax | (3,890) | (1,707) | 127.89% | | Income Tax Expense | (105) | (76) | 38.16% | | Loss for the Period | (3,995) | (1,783) | 124.06% | | Basic and Diluted Loss Per Share (RMB cents) | (1.00) | (0.45) | 122.22% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=2.2%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets less current liabilities amounted to **RMB 56,021 thousand**, with net assets at **RMB 53,589 thousand**, a decrease from year-end 2024, primarily due to reductions in non-current and net current assets Condensed Consolidated Statement of Financial Position (As of June 30, 2025 and December 31, 2024) | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 21,716 | 23,322 | -6.97% | | Right-of-use Assets | 1,344 | 2,687 | -50.00% | | **Current Assets** | | | | | Inventories | 1,595 | 2,045 | -22.00% | | Trade and Other Receivables | 42,601 | 36,625 | 16.32% | | Cash and Cash Equivalents | 15,270 | 15,347 | -0.50% | | **Current Liabilities** | | | | | Trade and Other Payables | 21,864 | 15,376 | 42.19% | | Lease Liabilities | 2,154 | 3,519 | -38.79% | | Net Current Assets | 32,961 | 34,007 | -3.07% | | Net Assets | 53,589 | 57,584 | -6.94% | [Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=2.3%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of June 30, 2025, the company's total equity was **RMB 53,589 thousand**, a decrease of **RMB 3,995 thousand** from **January 1, 2025**, primarily due to the loss for the period Condensed Consolidated Statement of Changes in Equity (As of June 30, 2025) | Metric | January 1, 2025 (RMB '000) | Loss for the Period and Total Comprehensive Expense (RMB '000) | June 30, 2025 (RMB '000) | | :--- | :--- | :--- | :--- | | Share Capital | 3,600 | – | 3,600 | | Reserves | 53,984 | (3,995) | 49,989 | | Total | 57,584 | (3,995) | 53,589 | - As of **June 30, 2025**, total equity attributable to owners of the company was **RMB 53,589 thousand**, a decrease from **RMB 57,584 thousand** as of **December 31, 2024**[7](index=7&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=2.4%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash from operating activities significantly decreased to **RMB 1,311 thousand**, resulting in a net decrease of **RMB 77 thousand** in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 1,311 | 7,875 | -83.34% | | Net Cash from (used in) Investing Activities | 21 | (406) | -105.17% | | Net Cash used in Financing Activities | (1,409) | (1,426) | -1.19% | | Net (Decrease) Increase in Cash and Cash Equivalents | (77) | 6,043 | -101.27% | | Cash and Cash Equivalents at End of Period | 15,270 | 15,125 | 0.96% | [Notes to the Financial Statements](index=6&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) This section provides detailed notes to the financial statements, covering accounting policies, revenue, expenses, and balance sheet items [General Information and Basis of Preparation](index=6&type=section&id=3.1%20%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99%E4%B8%8E%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86) The Group's condensed consolidated interim financial statements are prepared in accordance with GEM Listing Rules and HKFRS, reviewed by the Audit Committee, with consistent accounting policies from the prior year - The Group's principal businesses are the research, development, production, and sale of fiberglass reinforced plastic (FRP) products, and the sale of industrial silica sand materials in the PRC[9](index=9&type=chunk) - The unaudited condensed consolidated results for the six months ended **June 30, 2025**, have been prepared in accordance with the GEM Listing Rules and Hong Kong Financial Reporting Standards, and reviewed by the company's Audit Committee[10](index=10&type=chunk) [Revenue Analysis](index=7&type=section&id=3.2%20%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue for the period was **RMB 12,673 thousand**, a **21.21%** year-on-year decrease, with FRP product sales significantly down, while silica sand sales grew **575.33%**, becoming a primary revenue source Revenue Composition (For the six months ended June 30) | Product Category | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | FRP Gratings | 2,050 | 9,602 | -78.65% | | Epoxy Wedges | – | 4,901 | -100.00% | | Silica Sand | 10,623 | 1,573 | 575.33% | | **Total Revenue** | **12,673** | **16,076** | **-21.21%** | - Revenue is recognized at a point in time[13](index=13&type=chunk) [Other Income and Other Net Gains](index=7&type=section&id=3.3%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E5%87%80%E6%94%B6%E7%9B%8A) Other income for the period increased to **RMB 330 thousand**, mainly due to payables unlikely to be paid, while other net gains significantly decreased Other Income and Other Net Gains (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Other Income** | | | | | Interest Income from Bank Deposits | 21 | 69 | -69.57% | | Disposal of Fixed Assets | – | 47 | -100.00% | | Payables Unlikely to be Paid | 309 | – | N/A | | Miscellaneous | – | 1 | -100.00% | | **Total Other Income** | **330** | **117** | **182.05%** | | **Other Net Gains** | | | | | Net Exchange Gain | 1 | 67 | -98.51% | [Components of Loss Before Tax](index=8&type=section&id=3.4%20%E9%99%A4%E7%A8%8E%E5%89%8D%E4%BA%8F%E6%8D%9F%E6%9E%84%E6%88%90) Loss before tax was primarily impacted by staff costs, depreciation, inventory costs, and R&D expenses; staff and R&D costs decreased, while property, plant and equipment depreciation and auditor's remuneration increased Components of Loss Before Tax (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Finance Costs** | | | | | Bank Charges | 9 | 8 | 12.50% | | Interest on Lease Liabilities | 45 | 94 | -52.00% | | **Staff Costs** | | | | | Salaries, Wages and Other Benefits | 3,824 | 3,953 | -3.26% | | Contributions to Defined Contribution Retirement Schemes | 194 | 312 | -37.82% | | **Other Items** | | | | | Auditor's Remuneration | 1,084 | 1,658 | -34.62% | | Depreciation of Right-of-use Assets | 1,343 | 1,344 | -0.07% | | Depreciation of Property, Plant and Equipment | 1,585 | 539 | 194.06% | | Cost of Inventories Recognized as Expense | 9,006 | 11,727 | -23.20% | | Research and Development Costs | 182 | 571 | -68.13% | [Income Tax Expense](index=9&type=section&id=3.5%20%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) Income tax expense for the period was **RMB 105 thousand**, primarily PRC Enterprise Income Tax, with no income tax in Cayman Islands or BVI, and no assessable profits in Hong Kong Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current Tax | | | | | PRC Enterprise Income Tax | 105 | 76 | 38.16% | - The Group is not subject to any income tax in the Cayman Islands and British Virgin Islands, and is not subject to Hong Kong profits tax[15](index=15&type=chunk) - PRC subsidiaries are subject to PRC Enterprise Income Tax at a **rate of 25%**, and dividends declared to non-resident shareholders are subject to PRC withholding tax at a **rate of 10%**[15](index=15&type=chunk) [Loss Per Share](index=10&type=section&id=3.6%20%E6%AF%8F%E8%82%A1%E4%BA%8F%E6%8D%9F) For the six months ended June 30, 2025, basic loss per share was **RMB 1.00 cent**, an increase from **RMB 0.45 cent** in the prior period, mainly due to increased loss for the period Loss Per Share (For the six months ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss used in Calculating Basic Loss Per Share | (3,995) | (1,783) | 124.06% | | Number of Shares (thousands) | 400,000 | 400,000 | 0.00% | | Basic Loss Per Share (RMB cents) | (1.00) | (0.45) | 122.22% | - Diluted loss per share is not presented as there were no potential ordinary shares outstanding during the reporting period[17](index=17&type=chunk) [Segment Reporting](index=10&type=section&id=3.7%20%E5%88%86%E9%83%A8%E6%8A%A5%E5%91%8A) The Group's business is segmented into FRP and silica sand; FRP business revenue significantly declined with a loss, while silica sand revenue grew substantially and achieved profitability, with all revenue from PRC domestic customers Segment Revenue and Profit (Loss) (For the six months ended June 30, 2025) | Segment | Revenue (RMB '000) | Profit (Loss) (RMB '000) | | :--- | :--- | :--- | | FRP Business | 2,050 | (2,356) | | Silica Sand Business | 10,623 | 1,957 | | Unallocated | – | (3,596) | | **Total** | **12,673** | **(3,995)** | Geographical Location of Revenue from External Customers (For the six months ended June 30) | Customer Type | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | PRC (excluding Hong Kong) | 12,673 | 11,009 | 15.11% | | Overseas Customers | – | 5,067 | -100.00% | | **Total** | **12,673** | **16,076** | **-21.21%** | [Trade and Other Receivables](index=11&type=section&id=3.8%20%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of **June 30, 2025**, total trade and other receivables were **RMB 42,601 thousand**, an increase from year-end 2024, with net trade receivables decreasing and net other receivables significantly increasing, mainly due to advance payments for raw material supply Trade and Other Receivables (As of June 30, 2025 and December 31, 2024) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Net Trade and Bills Receivables | 21,693 | 34,920 | -37.88% | | Net Other Receivables | 20,027 | 984 | 1935.26% | | Prepayments and Deposits | 881 | 721 | 22.19% | | **Total** | **42,601** | **36,625** | **16.32%** | - The increase in other receivables was primarily due to the company making advance payments to suppliers to secure high-quality raw material supply channels[22](index=22&type=chunk) Aging Analysis of Trade and Bills Receivables (As of June 30, 2025 and December 31, 2024) | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0–30 Days | 9,569 | 1,466 | | 31–90 Days | 2,398 | 2,801 | | 91–180 Days | 1,275 | 3,640 | | 181–365 Days | 496 | 900 | | Over 365 Days | 7,955 | 26,113 | [Trade and Other Payables](index=12&type=section&id=3.9%20%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of **June 30, 2025**, total trade and other payables were **RMB 21,864 thousand**, a significant increase from year-end 2024, primarily due to growth in trade payables and amounts due to directors Trade and Other Payables (As of June 30, 2025 and December 31, 2024) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 7,033 | 2,651 | 165.30% | | Amounts Due to Directors | 4,803 | 3,489 | 37.65% | | Other Payables | 10,028 | 9,236 | 8.58% | | **Total** | **21,864** | **15,376** | **42.19%** | - The increase in trade payables was mainly due to the outstanding payment for raw silica sand purchased from Liaotong Dayou Silica Sand Co., Ltd., for which the settlement period had not yet matured[24](index=24&type=chunk) - Amounts due to Director Ms. Zhang Yaping were **RMB 4,803 thousand**, unsecured, interest-free, and with no fixed repayment terms[26](index=26&type=chunk) - Amounts due to related party Tongliao Dayou Silica Sand Co., Ltd. for goods were **RMB 2,383 thousand**, unsecured and interest-free[27](index=27&type=chunk) [Share Capital](index=14&type=section&id=3.10%20%E8%82%A1%E6%9C%AC) As of **June 30, 2025**, the company's authorized share capital was **2,000,000 thousand shares**, and issued and fully paid share capital was **400,000 thousand shares**, both at **HKD 0.01 per share**, consistent with year-end 2024 Share Capital Structure (As of June 30, 2025 and December 31, 2024) | Category | June 30, 2025 (thousand shares) | December 31, 2024 (thousand shares) | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Authorized Share Capital | 2,000,000 | 2,000,000 | 20,000 (HKD '000) | 20,000 (HKD '000) | | Issued and Fully Paid Share Capital | 400,000 | 400,000 | 3,600 | 3,600 | [Significant Related Party Transactions](index=14&type=section&id=3.11%20%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93) Key management personnel remuneration increased this period, and raw silica sand worth **RMB 1,207 thousand** was purchased from Tongliao Dayou Silica Sand Co., Ltd., indirectly controlled by Director Mr. Li Yubao Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Short-term Employee Benefits | 1,111 | 910 | 22.09% | Related Party Transactions (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Silica Sand Purchases | 1,207 | 882 | 36.85% | - Raw silica sand was purchased from Tongliao Dayou Silica Sand Co., Ltd., a subsidiary indirectly controlled by Mr. Li Yubao, a director of the company, with pricing policy based on the comparable uncontrolled price method[30](index=30&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section reviews the Group's operational performance, financial position, and future outlook, including sales, costs, liquidity, and risk factors [Review and Outlook](index=15&type=section&id=4.1%20%E5%9B%9E%E9%A1%B9%E5%8F%8A%E5%B1%95%E6%9C%9B) The Group's core businesses are FRP products and industrial silica sand; FRP faces challenges from China's economy, subsidy cancellations, and trade war impacts, but the company is responding with technological improvements, cost control, and market expansion, while silica sand benefits from domestic demand growth - The FRP business faces challenges from China's economic environment, government cancellation of wind power equipment subsidies, and the impact of the China-US trade war, leading to a decline in export business[31](index=31&type=chunk) - The Group plans to enhance competitiveness by improving product technology, upgrading production lines, hiring professional R&D personnel, boosting R&D capabilities, increasing production efficiency, and reducing costs[32](index=32&type=chunk) - The Group will continue to adhere to its policy of promoting its products in countries along the 'Belt and Road' initiative[32](index=32&type=chunk) - Increasing domestic market demand for silica sand materials presents growth opportunities for the silica sand business[33](index=33&type=chunk) [Sales Performance](index=16&type=section&id=4.2%20%E9%94%80%E5%94%AE%E8%A1%A8%E7%8E%B0) Total sales revenue decreased by **21.21%** year-on-year; FRP product sales revenue significantly dropped by **86.0%** with negative gross margin, while silica sand sales surged by **575.33%** with improved gross margin, becoming the Group's main growth driver, and overseas sales became zero, with domestic market share increasing to **100%** Sales Revenue and Gross Profit Margin (For the six months ended June 30) | Product Category | 2025 Sales Revenue (RMB '000) | 2025 Gross Profit Margin (%) | 2024 Sales Revenue (RMB '000) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | FRP Gratings | 2,050 | -62.3 | 9,602 | 21.0 | | Epoxy Wedges | – | – | 4,901 | 4.0 | | Silica Sand | 10,623 | 29.6 | 1,573 | 18.2 | | **Total** | **12,673** | **14.8** | **16,076** | **15.5** | - The decrease in FRP sales revenue was mainly due to overcapacity in China, government cancellation of wind power subsidies, and the impact of the China-US trade war[34](index=34&type=chunk) - The significant increase in silica sand sales revenue was primarily due to silica sand being a new business with strong demand and the company's proactive market expansion[35](index=35&type=chunk) - Domestic market sales proportion increased from approximately **68.5%** in the same period of 2024 to **100%** in the same period of 2025, with overseas market sales becoming zero[34](index=34&type=chunk) [Operating Costs and Expenses](index=17&type=section&id=4.3%20%E7%BB%8F%E8%90%A5%E6%88%90%E6%9C%AC%E5%8F%8A%E5%BC%80%E6%94%AF) Distribution costs significantly decreased by **66.5%** due to the contraction of the FRP business, and administrative expenses also fell by **15.6%** due to reduced audit and legal professional fees - Distribution costs decreased by **66.5%** from approximately **RMB 1.96 million** to approximately **RMB 0.66 million**, mainly due to the contraction of the FRP business[38](index=38&type=chunk) - Administrative expenses decreased by **15.6%** from approximately **RMB 6.4 million** to approximately **RMB 5.4 million**, mainly due to reduced audit fees and legal and professional fees[38](index=38&type=chunk) [Operating Results](index=17&type=section&id=4.4%20%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9) For the six months ended June 30, 2025, the Group's net loss expanded to **RMB 4.00 million**, primarily due to the contraction of the FRP business and the reversal of expected credit loss provisions in the prior full year Net Loss (For the six months ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Loss | 4.00 | 1.78 | 124.72% | - The increase in net loss was primarily due to the contraction of the FRP business and the reversal of expected credit loss provisions in the prior full year[39](index=39&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=4.5%20%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) The Group primarily funds its operations through cash generated from operating activities, with no bank borrowings as of **June 30, 2025** - The Group primarily funds its operations through cash generated from operating activities[40](index=40&type=chunk) - As of **June 30, 2025**, the Group had no bank borrowings[40](index=40&type=chunk) [Capital Structure](index=17&type=section&id=4.6%20%E8%B5%84%E6%9C%AC%E6%9E%B6%E6%9E%84) As of **June 30, 2025**, share capital remained unchanged, while total equity attributable to equity holders of the company slightly decreased Capital Structure (As of June 30, 2025 and December 31, 2024) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Share Capital | 3.6 | 3.6 | 0.00% | | Total Equity Attributable to Equity Holders | 53.6 | 57.6 | -6.94% | [Exchange Rate Fluctuation Risk](index=18&type=section&id=4.7%20%E6%B1%87%E7%8E%87%E6%B3%A2%E5%8A%A8%E9%A3%8E%E9%99%A9) The Group primarily faces USD foreign exchange risk, but management mitigates this by controlling repayment periods and has not used financial instruments for hedging; foreign exchange risk has a negligible impact on general operations - The Group is primarily exposed to USD foreign exchange risk arising from future commercial transactions and recognized assets and liabilities denominated in non-RMB currencies[43](index=43&type=chunk) - Management mitigates foreign exchange risk by controlling repayment periods and has not used any financial instruments to hedge foreign exchange risk for the six months ended **June 30, 2025**[43](index=43&type=chunk) [Pledge of Assets](index=18&type=section&id=4.8%20%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) As of **June 30, 2025**, the Group had no pledged assets - As of **June 30, 2025**, the Group had no pledged assets[44](index=44&type=chunk) [Significant Investments, Acquisitions and Disposals](index=18&type=section&id=4.9%20%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E3%80%81%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the Group made no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - The Group held no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures for the six months ended **June 30, 2025**[45](index=45&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=4.10%20%E9%9B%87%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of **June 30, 2025**, the Group had **61 employees** with total staff costs of **RMB 4.0 million**; remuneration policy is based on qualifications, position, seniority, and performance, offering retirement benefits and training Employees and Remuneration (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Number of Employees | 61名 | 60名 | | Total Staff Costs (RMB million) | 4.0 | 4.3 | - Remuneration is determined based on employees' respective qualifications, positions, and seniority, with year-end discretionary bonuses awarded based on the Group's and individual employee's performance[46](index=46&type=chunk) [Other Information](index=19&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers additional corporate information, including dividends, post-reporting events, shareholdings, and corporate governance practices [Dividends](index=19&type=section&id=5.1%20%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended **June 30, 2025**[47](index=47&type=chunk) [Events After Reporting Period](index=19&type=section&id=5.2%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) As of the date of this announcement, the Group had no significant events after **June 30, 2025** - There were no significant events after **June 30, 2025**, and up to the date of this announcement[48](index=48&type=chunk) [Directors' and Chief Executive's Interests in Shares of the Company](index=19&type=section&id=5.3%20%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%91%98%E4%BA%8E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E7%9A%84%E6%9D%83%E7%9B%8A) As of **June 30, 2025**, Mr. Li Yubao held **40.65%** of the company's shares through controlled corporations, being the only director among key executives to disclose share interests Directors' and Chief Executive's Long Position in Shares of the Company (As of June 30, 2025) | Name | Capacity/Nature of Interest | Number of Shares Held/Interested | Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Mr. Li Yubao | Interest in Controlled Corporation | 162,600,000 | 40.65% | - Mr. Li Yubao is the ultimate controlling shareholder of LF INTERNATIONAL PTE. LTD. and Yunhong Group Co., Ltd., which together hold **162,600,000 shares** of the company[49](index=49&type=chunk) [Major Shareholders' Interests in Shares of the Company](index=21&type=section&id=5.4%20%E4%B8%BB%E8%A6%81%E8%82%A1%E4%B8%9C%E4%BA%8E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E7%9A%84%E6%9D%83%E7%9B%8A) As of **June 30, 2025**, LFS, LFB, Yunhong, and Mr. Huang Xuechao were major shareholders of the company, with LFS and LFB indirectly controlled by Mr. Li Yubao Major Shareholders' Interests in Shares of the Company (As of June 30, 2025) | Name/Designation | Capacity/Nature of Interest | Number of Ordinary Shares Held/Interested | Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | LFS | Interest in Controlled Corporation | 162,600,000 | 40.65% | | LFB | Beneficial Owner | 122,600,000 | 30.65% | | Yunhong | Beneficial Owner | 40,000,000 | 10.00% | | Mr. Huang Xuechao | Beneficial Owner | 44,880,000 | 11.22% | - LFB is wholly-owned by LFS, which is wholly-owned by Mr. Li. LFS holds a **70%** interest in Yunhong, which beneficially owns **10%** of the company's shares[57](index=57&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=5.5%20%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and there were no treasury 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 securities[55](index=55&type=chunk) - As of **June 30, 2025**, the company had no treasury shares[56](index=56&type=chunk) [Competing Interests](index=22&type=section&id=5.6%20%E7%AB%9E%E4%BA%89%E6%9D%83%E7%9B%8A) Directors confirm that for the six months ended June 30, 2025, no director or their close associates held any business interests competing or potentially competing with the Group's business - Directors confirm that for the six months ended **June 30, 2025**, no director or their respective close associates held any interest in any business directly or indirectly competing or potentially competing with the Group's business[58](index=58&type=chunk) [Directors' Securities Transactions](index=22&type=section&id=5.7%20%E8%91%A3%E4%BA%8B%E7%9A%84%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93) All directors have confirmed compliance with the dealing rules for directors' securities transactions as set out in the GEM Listing Rules for the six months ended June 30, 2025 - All directors have confirmed compliance with the dealing rules as set out in Rules **5.48** to **5.67** of the GEM Listing Rules for the six months ended **June 30, 2025**[59](index=59&type=chunk) [Corporate Governance Practices](index=22&type=section&id=5.8%20%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A7%84) The Group is committed to maintaining high corporate governance standards and has complied with all applicable code provisions in Appendix C1 Section 2 of the GEM Listing Rules for the six months ended June 30, 2025 - The company has adopted the Corporate Governance Code as set out in Appendix C1 Section **2** of the GEM Listing Rules as its own corporate governance code[60](index=60&type=chunk) - For the six months ended **June 30, 2025**, the company has complied with all applicable code provisions contained in the Corporate Governance Code[60](index=60&type=chunk) [Audit Committee](index=22&type=section&id=5.9%20%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing financial reporting, internal controls, and risk management, and has reviewed the Group's unaudited results for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors: Mr. Wu Shiliang (Chairman), Mr. Wen Peng, and Ms. Long Mei[61](index=61&type=chunk) - The Audit Committee's primary responsibilities include reviewing and overseeing financial reporting processes, internal control, and risk management systems, and it has reviewed the Group's unaudited results for the six months ended **June 30, 2025**[61](index=61&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=23&type=section&id=5.10%20%E5%88%8A%E5%8F%91%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This interim results announcement has been published on the Stock Exchange and company websites, and the interim report will be dispatched to shareholders and published in due course - This interim results announcement has been published on the Stock Exchange website (www.hkexnews.hk) and the company's website (www.nantongrate.com)[62](index=62&type=chunk) - The company's interim report for the six months ended **June 30, 2025**, will be dispatched to shareholders and published on the aforementioned websites in due course[62](index=62&type=chunk) [Resignation of Executive Director](index=23&type=section&id=5.11%20%E6%89%A7%E8%A1%8C%E8%91%A3%E4%BA%8B%E8%BE%9E%E4%BB%BB) Ms. Jin Dan resigned as an executive director effective **August 25, 2025**, due to other work commitments, confirming no disagreement with the Board - Ms. Jin Dan resigned as an executive director effective **August 25, 2025**, due to other work commitments[63](index=63&type=chunk) - Ms. Jin has confirmed that she has no disagreement with the Board and there are no other matters relating to her resignation that need to be brought to the attention of the company's shareholders and the Stock Exchange[63](index=63&type=chunk)