[Chairman's Report](index=1&type=section&id=Chairman%27s%20Report) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For H1 2025, BOE Varitronix reported HK$6.671 billion revenue (up 8%), HK$180.5 million profit (up 5%), and HK$4.748 billion cash resources (up 15%) 2025 First Half Key Financial Data | Indicator | As of June 30, 2025 (million HKD) | As of June 30, 2024 (million HKD) | | :--- | :--- | :--- | | Revenue | 6,671 | 6,157 | | EBITDA | 338 | 315 | | Profit attributable to shareholders | 180.5 | 172.1 | | Basic earnings per share | 22.9 HK cents | 21.9 HK cents | | Diluted earnings per share | 22.8 HK cents | 21.8 HK cents | | Operating cash inflow | 533 | 795 | | Indicator | As of June 30, 2025 (million HKD) | As of December 31, 2024 (million HKD) | | :--- | :--- | :--- | | Cash resources | 4,748 | 4,122 | | Cash and time deposit balances | 3,772 | 3,544 | - The Group recorded revenue of **HK$6.671 billion**, an increase of approximately **8%** compared to the same period in 2024[4](index=4&type=chunk) - Profit attributable to shareholders was **HK$180.5 million**, an increase of approximately **5%** compared to 2024[4](index=4&type=chunk) - As of June 30, 2025, the Group's total cash resources amounted to **HK$4.748 billion**, an increase of approximately **15%** from the end of 2024[5](index=5&type=chunk) [Business Review](index=3&type=section&id=Business%20Review) Revenue growth was driven by TFT, touchscreen, and in-vehicle system sales, with automotive displays contributing 94% of total revenue, achieving profit growth despite margin pressure via strategic investments and operational optimization - The Group's revenue growth was primarily driven by increased sales of Thin-Film Transistor ("TFT") products, touchscreen display modules, and in-vehicle system products[5](index=5&type=chunk) - The Group's TFT module business and touchscreen display module business accounted for approximately **94%** of the Group's revenue, with the automotive display business also accounting for **94%**[5](index=5&type=chunk) - Gross margin was affected by price adjustments and product mix changes, but overall profit attributable to shareholders improved through enhanced profitability of other businesses, such as net interest income, government subsidies, and equity investment income[6](index=6&type=chunk) - EBITDA increased by approximately **7%** to **HK$338 million**, with an EBITDA margin of approximately **5.1%** of the Group's revenue[7](index=7&type=chunk) - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[8](index=8&type=chunk) [Automotive Display Business](index=3&type=section&id=Automotive%20Display%20Business) Automotive display revenue grew 9% to HK$6.245 billion, comprising 94% of total revenue, driven by system business growth and leading global market share in in-vehicle displays, with significant sales expansion in China's new energy vehicle sector - Revenue from the automotive display business was **HK$6.245 billion**, an increase of approximately **9%** compared to the same period in 2024[9](index=9&type=chunk) - This business accounted for approximately **94%** of the Group's total revenue, with the system business becoming a new growth engine[9](index=9&type=chunk) - The Group maintained the **number one market share** globally in in-vehicle display shipments and area, especially for displays 8 inches and above[9](index=9&type=chunk) - In China, sales significantly increased, and the customer base expanded to include the **top 20 Chinese automakers** and most new energy vehicle manufacturers[9](index=9&type=chunk)[10](index=10&type=chunk) - Overseas business faced challenges from geopolitical tensions, energy shortages, and high interest rates, but revenue in Europe achieved growth[10](index=10&type=chunk) - Chengdu factory operations significantly improved efficiency, and system business revenue is expected to grow significantly in 2025[11](index=11&type=chunk) - Quality was significantly improved, quality costs were reduced, and numerous supplier awards were received from leading new energy vehicle manufacturers[12](index=12&type=chunk) [Industrial Display Business](index=5&type=section&id=Industrial%20Display%20Business) Industrial display revenue grew 5% to HK$426 million, accounting for 6% of total revenue, primarily driven by consumer electronics demand, with continued product promotion for new applications and emerging markets - The industrial display business recorded revenue of **HK$426 million**, an increase of approximately **5%** compared to the same period in 2024[13](index=13&type=chunk) - This business accounted for approximately **6%** of the Group's total revenue, with the increase primarily driven by growth in demand for consumer electronics products[13](index=13&type=chunk) [Industry Review](index=5&type=section&id=Industry%20Review) H1 2025 saw strong global new energy vehicle growth despite economic challenges, led by China's over 40% production and sales increase (44.3% of total sales) and robust exports, while Europe grew 26%, and North America and Japan experienced slower growth - The global new energy vehicle industry maintained strong and rapid growth, accelerating technological innovation and intensifying market competition[14](index=14&type=chunk) - The Chinese market continued to be the main growth driver for the new energy vehicle industry, with the government introducing multiple supportive policies[14](index=14&type=chunk) - In the first half of 2025, China's new energy vehicle production and sales reached **6.9 million units** each, increasing by **41.4%** and **40.3%** year-on-year respectively, accounting for **44.3%** of total vehicle sales during the same period[15](index=15&type=chunk) - China's new energy vehicle exports performed outstandingly, with passenger vehicle exports increasing by **71.3%** and commercial vehicle exports by **230%** year-on-year in the first half of 2025[16](index=16&type=chunk) - The European market saw new energy vehicle sales grow by **26%**, and the European Commission will invest **EUR 852 million** to support electric vehicle battery manufacturing projects[16](index=16&type=chunk) - New energy vehicle sales growth in North America slowed to **3%**, affected by shifts in US government policy and Canadian policy reviews[17](index=17&type=chunk) - The Japanese market for new energy vehicles remained weak, primarily focusing on hybrid vehicles, with lagging policy and infrastructure development[17](index=17&type=chunk) - The South Korean government set a target to increase the number of electric vehicles to **2 million** by 2030 and plans to accelerate the construction of charging stations[17](index=17&type=chunk) [Business Outlook](index=8&type=section&id=Business%20Outlook) The Group targets automotive and industrial displays as key growth drivers, projecting the automotive market to reach HK$400 billion by 2030, and plans to expand globally, optimize operations, and enhance quality to mitigate risks and boost profitability amid intense competition - The automotive display sector and industrial display business will be the Group's two main growth drivers[19](index=19&type=chunk) - Escalating global geopolitical tensions may lead to tariffs on new energy vehicles manufactured in China, adversely affecting the Group[19](index=19&type=chunk) - The global automotive display equipment market is projected to reach **HK$400 billion** by 2030, with a Compound Annual Growth Rate (CAGR) of **9.93%** from 2024 to 2030[20](index=20&type=chunk) - The Group will collaborate with suppliers and leverage BOE Group's new 8.6-generation OLED production line in Chengdu to enhance competitiveness[20](index=20&type=chunk) - Automotive display systems have evolved from traditional dashboards into interactive centers integrating information, control, and entertainment functions[21](index=21&type=chunk) - Facing intense market competition, the Group will enhance risk awareness, focus on leading customers, continuously improve product quality and technical capabilities[22](index=22&type=chunk) - The Group will expand its supplier sourcing, explore expanding existing factories, overseas mergers and acquisitions, and establishing overseas production bases to meet market demand[23](index=23&type=chunk) - Proactive measures to address geopolitical conflicts include cost transfer, establishing overseas factories, and collaborating with overseas partners[23](index=23&type=chunk) [Automotive Display Business](index=8&type=section&id=Automotive%20Display%20Business) The automotive display market is expected to grow strongly, with LCD remaining the primary solution, but demand for high-quality displays will drive advanced technology adoption; the Group will leverage BOE Group's OLED production lines to enhance competitiveness and focus on innovative technologies like smart cockpits, multi-screen, and large-screen displays to meet market competition and customer needs - The global automotive display equipment market size is projected to reach **HK$400 billion** by 2030, with a compound annual growth rate of **9.93%**[20](index=20&type=chunk) - LCD technology remains the primary solution due to cost competitiveness, but demand for higher quality displays will drive the application of advanced technologies[20](index=20&type=chunk) - Automotive display systems have evolved from traditional dashboards into interactive centers integrating information, control, and entertainment functions[21](index=21&type=chunk) - The Group will enhance risk awareness, focus on leading customers, continuously improve product quality and technical capabilities, and optimize factory operational efficiency and services[22](index=22&type=chunk) - The Group will expand its supplier sourcing, explore expanding existing factories, overseas mergers and acquisitions, and establishing overseas production bases[23](index=23&type=chunk) [Industrial and Other Display Business](index=10&type=section&id=Industrial%20and%20Other%20Display%20Business) The industrial and other display market is projected to exceed HK$60 billion by 2030, with a compound annual growth rate of 6.7%, characterized by long product cycles and stable demand, where the Group will focus on developing high-end, high-tech, and high-profit products, while strengthening customer service and marketing strategies to drive business growth - The global industrial display market size is projected to exceed **HK$60 billion** by 2030, with a compound annual growth rate of **6.7%** from 2025 to 2030[24](index=24&type=chunk) - This sector features long product cycles and stable demand, and the Group has established a strong customer base and partnerships in the industrial and other display markets[24](index=24&type=chunk) - The Group will strengthen customer service and marketing strategies to foster closer communication with customers and provide optimal solutions[24](index=24&type=chunk) [Development Strategy](index=11&type=section&id=Development%20Strategy) The Group maintains an asset-light model, leveraging BOE's R&D to lead in high-end automotive displays, with a core strategy to expand overseas markets for a 50/50 sales split, consolidate leadership, enhance system market share, seize smart cockpit opportunities, and promote a dual-engine business model - The Group maintains an **asset-light model**, leveraging BOE Group's existing production and R&D capabilities to maintain a leading position in high-end and large-size products[25](index=25&type=chunk) - Expanding overseas markets is a core strategic focus, aiming to achieve an equal split between domestic and overseas sales in recent years[25](index=25&type=chunk) - The Group continues to execute its **"three-step development strategy"**: consolidating its leading position in automotive display equipment, increasing market share in automotive display systems, and seizing opportunities in system and smart cockpit solutions[26](index=26&type=chunk) - "HERO" (Health, Entertainment, Recreation, Office) application scenarios and AI-enabled smart cockpit solutions have been launched in the Chinese market[26](index=26&type=chunk) - The Group will leverage existing resources to explore opportunities in the industrial and other display sectors, promoting the rapid growth of a **"dual-engine driven"** business model[26](index=26&type=chunk) - Digital management systems will be strengthened, utilizing AI to improve operational and management efficiency[27](index=27&type=chunk) - The Group is committed to sustainable development, targeting **carbon neutrality by 2050**[27](index=27&type=chunk) [Research and Development](index=12&type=section&id=Research%20and%20Development) Adhering to the 'V+' strategy, the Group deepens its in-vehicle presence via a 'component-system-smart cockpit' path, building a new display ecosystem with nearly HK$900 million R&D investment, 464 R&D staff, covering OLED, smart interaction, and AI integration for HERO smart cockpit scenarios - In-vehicle display, as a core business, adheres to the "V+" operating strategy and "Vehicle" concept, following a "component-system-smart cockpit" three-step development path[28](index=28&type=chunk) - AI, multi-modal interaction, and other cutting-edge technologies are fully integrated into the overall smart cockpit solution, with the "HERO" smart cockpit concept gaining high market recognition[28](index=28&type=chunk) - Cumulative R&D investment over the past three years reached nearly **HK$900 million**, and the R&D team expanded to **464 employees**[30](index=30&type=chunk) - Technology layout covers automotive-grade OLED devices, irregular structures, smart interaction, transparent imaging, HUD, and other core directions, promoting deep integration of AI with in-vehicle displays[30](index=30&type=chunk) [Panoramic Head-Up Display (PHUD)](index=13&type=section&id=Panoramic%20Head-Up%20Display%20%28PHUD%29) PHUD is an advanced in-vehicle head-up display technology that projects key information onto the windshield, reducing driver's eyes-off-road time and providing a seamless experience, with multiple projects secured from various automakers and a 44.8-inch panoramic head-up display showcased at SID 2025 - PHUD utilizes optical technology to project key information such as navigation and vehicle speed onto the windshield in front of the driver's line of sight, reducing the time drivers take their eyes off the road[31](index=31&type=chunk) - PHUD has secured multiple projects with various automakers and showcased a **44.8-inch** panoramic head-up display at SID 2025[31](index=31&type=chunk) [UB Cell (ADS-Pro)](index=13&type=section&id=UB%20Cell%20%28ADS-Pro%29) UB Cell is a high-end TV display solution integrating ADS Pro advanced LCD technology, offering ultra-high color gamut, full-angle color neutrality, high contrast, and low reflectivity, comparable to OLED picture quality, with a vehicle-grade UB Cell display prototype first demonstrated at SID 2025 achieving a contrast ratio of 2,300:1 and targeting 3,000:1 - UB Cell integrates ADS Pro advanced LCD technology, featuring ultra-high color gamut, full-angle color neutrality, **1400:1** ultra-high ambient light contrast ratio, and **0.7%** ultra-low panel reflectivity[32](index=32&type=chunk) - A vehicle-grade UB Cell display prototype was first demonstrated at SID 2025, achieving a contrast ratio of up to **2,300:1**, with a target of **3,000:1**[32](index=32&type=chunk) [f-OLED](index=14&type=section&id=f-OLED) f-OLED represents high-end flexible organic light-emitting diode technology, offering vibrant colors, versatile forms, and high integration, with multiple in-vehicle f-OLED displays already in mass production, and ongoing development of panel-integrated light control technology and active privacy features to enhance driving safety and privacy - f-OLED boasts industry-leading advantages such as vibrant colors, versatile forms, and high integration, with multiple in-vehicle f-OLED displays already entering mass production[33](index=33&type=chunk)[34](index=34&type=chunk) - Panel-integrated light control technology is under development to avoid windshield projection, significantly enhancing driving safety[34](index=34&type=chunk) - Panel-integrated active privacy features are being developed to support free switching between shared and privacy modes, ensuring co-driver entertainment content does not distract the driver[34](index=34&type=chunk) [Far-field Light Field Display](index=14&type=section&id=Far-field%20Light%20Field%20Display) Far-field light field display utilizes light field folding technology to achieve large-screen, long-distance imaging within the limited space of a vehicle, providing a broad view for rear-seat passengers, reducing visual fatigue, and delivering a mobile cinema experience, with a prototype developed and exhibited at SID in the first half of 2025, and continuous upgrades and expansion into new industrial product scenarios like learning, education, and gaming planned for the second half - Utilizing light field folding technology, it achieves large-screen, long-distance imaging within the limited space of a vehicle, reducing visual fatigue and dizziness[35](index=35&type=chunk) - A prototype was completed in the first half of 2025, attracting customer attention at the SID exhibition, with continuous upgrades and expansion into new industrial product scenarios planned for the second half[35](index=35&type=chunk) [Dual-View Dual-Touch Display Technology](index=14&type=section&id=Dual-View%20Dual-Touch%20Display%20Technology) Dual-view dual-touch display technology enables two different perspectives on the same screen, facilitating multi-user interaction and simplifying in-car space, with a successful proof-of-concept prototype developed in the first half of 2025 garnering significant customer interest, and active promotion and testing on in-vehicle platforms planned for the second half to achieve mass production soon - Dual-view display technology can show two different perspectives on the same screen, enabling multi-user interaction, applicable in aviation, high-speed rail, in-vehicle, medical, and educational training fields[36](index=36&type=chunk) - In the first half of 2025, dual-view dual-touch display functionality was successfully achieved, producing a POC prototype that garnered significant customer attention[37](index=37&type=chunk) - Active promotion to clients and joint testing on in-vehicle platforms are planned for the second half, aiming for early mass production[37](index=37&type=chunk) [Privacy On Demand Display Technology (POD)](index=15&type=section&id=Privacy%20On%20Demand%20Display%20Technology%20%28POD%29) Privacy On Demand Display Technology (POD) samples are being developed with Tier-1 clients in Europe, South Korea, and the US, with mass production expected to commence in 2026, representing another growth point for the in-vehicle market, and further improvements in POD development for better, thinner, and more flexible solutions are anticipated in Q4 2025 to maintain BOEVX's leadership in switchable privacy technology - Privacy On Demand Display Technology (POD) samples are being developed with Tier-1 clients in Europe, South Korea, and the US, with mass production expected to commence in 2026[38](index=38&type=chunk) - This value-added technology will be another growth point for the in-vehicle market, with further improvements in developing better, thinner, and more flexible POD anticipated in the fourth quarter of 2025[38](index=38&type=chunk) [Smart Cockpit Display System](index=15&type=section&id=Smart%20Cockpit%20Display%20System) The Group is advancing smart cockpit display system technology by enhancing existing product lines and exploring new solutions, participating in industry standard-setting, and developing a dual-axis parallel intelligent control swing screen that overcomes multi-motor high-precision collaborative control challenges, improving driver concentration and driving safety, thereby redefining human-screen interaction paradigms - The Group participated in the formulation of national standards such as "Technical Requirements and Test Methods for In-vehicle Display Terminals" led by the China Automotive Research Center[39](index=39&type=chunk) - A dual-axis parallel intelligent control swing screen was developed, overcoming the challenge of high-precision collaborative control for multiple motors, achieving multi-degree-of-freedom compound motion with dual dynamic coupling[39](index=39&type=chunk) - This dual-axis parallel intelligent control solution can increase driver concentration by **20%** and driving safety by **30%**[39](index=39&type=chunk) [Adaptive Far-field Headrest Display](index=16&type=section&id=Adaptive%20Far-field%20Headrest%20Display) Through independently developed eye-tracking algorithms, the Group achieves monocular measurement of viewing distance and angle, combined with stepless rotation of electric mechanisms, addressing the limitations of viewing distance and height for far-field screens, projecting a 3-meter distant 50-inch image from a minimal headrest volume, reducing ciliary muscle adjustment by over 90%, and providing an immersive cinema-grade experience - Through independently developed eye-tracking algorithms, it achieves monocular measurement of viewing distance and angle, with centimeter-level recognition accuracy[40](index=40&type=chunk) - It projects a **3-meter distant 50-inch** image from a minimal headrest volume, reducing ciliary muscle adjustment by over **90%**, leading to more relaxed viewing[40](index=40&type=chunk) - Equipped with rich interface options such as HDMI, USB3.0, Type-C, and wireless screen mirroring, it creates an ultimate comfortable and immersive cinema-grade experience[40](index=40&type=chunk) [OLED Under-Display Fingerprint Smart Steering Wheel 2.0](index=16&type=section&id=OLED%20Under-Display%20Fingerprint%20Smart%20Steering%20Wheel%202.0) The OLED Under-Display Fingerprint Smart Steering Wheel 2.0, a technological highlight, was first applied in the OLED health smart cockpit and debuted at SID 2025, featuring in-vehicle under-display fingerprint recognition, an ECG & HOD system for high-sensitivity early warnings, and memory interaction between different ID users' OLED under-display fingerprints and smart seats - First applied in the OLED health smart cockpit and made a stunning debut at SID 2025[41](index=41&type=chunk) - Achieves in-vehicle under-display fingerprint recognition, equipped with an ECG & HOD system for high-sensitivity early warnings[41](index=41&type=chunk) - Enables memory interaction between different ID users' OLED under-display fingerprints and smart seats[41](index=41&type=chunk) [AI In-vehicle Digital Amplifier Audio System](index=16&type=section&id=AI%20In-vehicle%20Digital%20Amplifier%20Audio%20System) The first self-developed acoustic product, leveraging AI to empower an immersive in-vehicle acoustic experience, pioneered in-vehicle original sound quality restoration technology, AIGC model deployment on constrained edge devices, and a multi-modal noise reduction technology architecture, significantly enhancing amplifier noise reduction capabilities and sound quality, with basic functional research and development initially completed and a plan to exhibit at BOE IPC in 2025 - The first self-developed acoustic product, leveraging AI to empower an immersive in-vehicle acoustic experience[42](index=42&type=chunk) - Pioneered in-vehicle original sound quality restoration technology, AIGC model deployment on constrained edge devices, and a multi-modal noise reduction technology architecture, significantly enhancing amplifier noise reduction capabilities and sound quality[42](index=42&type=chunk) - Basic functional research and development have been initially completed, with a plan to exhibit at BOE IPC in 2025[42](index=42&type=chunk) [Significant Events After June 30, 2025](index=17&type=section&id=Significant%20Events%20After%20June%2030%2C%202025) As of the date of this announcement, the Group has no significant events after June 30, 2025, that require disclosure - As of the date of this announcement, the Group has no significant events requiring disclosure[43](index=43&type=chunk) [Appreciation](index=17&type=section&id=Appreciation) The Chairman expresses gratitude to business partners, clients, management, employees, shareholders, investors, and business partners for their support, stating that the Group will continue to capitalize on automotive industry trends and strive to become a leading integrated smart cockpit display system solution provider - The Group achieved higher revenue growth and a recovery in profitability through relentless efforts[44](index=44&type=chunk) - The Group will continue to seize upcoming trends in the automotive industry and implement its strategy to become a leading integrated smart cockpit display system solution provider[44](index=44&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Asset Structure](index=18&type=section&id=Asset%20Structure) As of June 30, 2025, the Group's total assets reached HK$11.834 billion, primarily due to improved working capital, with cash resources increasing to HK$4.748 billion, inventory rising by approximately 4% to HK$1.854 billion, and trade receivables decreasing due to strict aging monitoring - As of June 30, 2025, the Group's total assets reached **HK$11.834 billion**, primarily due to improved working capital[46](index=46&type=chunk) - For the six months ended June 30, 2025, the Group's cash resources amounted to **HK$4.748 billion**, attributed to strict control over working capital[46](index=46&type=chunk) - Inventory at period-end increased by approximately **4%** to **HK$1.854 billion**, mainly for strategic capacity allocation[46](index=46&type=chunk) - Trade receivables decreased due to the implementation of stricter aging monitoring[46](index=46&type=chunk) [Liquidity and Financial Resources](index=18&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total equity was HK$4.717 billion, with a current ratio of 1.42, cash resources increasing to HK$4.748 billion (including HK$3.772 billion in cash and time deposits and HK$730 million in other financial assets), and bank loans rising to HK$434 million, resulting in a slight increase in the debt-to-asset ratio to 9.2%, reflecting additional borrowing for long-term growth - As of June 30, 2025, the Group's total equity was **HK$4.717 billion**[48](index=48&type=chunk) - The Group's current ratio was **1.42** as of June 30, 2025[48](index=48&type=chunk) Cash Resources Composition | Item | As of June 30, 2025 (million HKD) | As of December 31, 2024 (million HKD) | | :--- | :--- | :--- | | Cash resources | 4,748 | 4,122 | | Cash and time deposit balances | 3,772 | 3,544 | | Other financial assets | 730 | 390 | | Restricted bank deposits | 246 | 188 | - The Group's bank loans amounted to **HK$434 million**, of which **HK$176 million** were long-term loans, primarily used to facilitate capital expenditures[49](index=49&type=chunk) - The debt-to-asset ratio was approximately **9.2%**, a slight increase reflecting additional borrowing for long-term growth[49](index=49&type=chunk) - Inventory turnover days were **54 days**, and trade receivables turnover days were **63 days**, with the increase in receivables turnover days due to an expanded customer base from new businesses[50](index=50&type=chunk) [Cash Flow](index=19&type=section&id=Cash%20Flow) During the review period, net cash inflow from operating activities was HK$533 million, primarily driven by a decrease in trade and other receivables, while net cash outflow from investing activities was HK$469 million, mainly for the purchase of property, plant and equipment, time deposits, and other financial assets, and net cash inflow from financing activities was HK$33 million, primarily from increased net bank loan inflows - Net cash from operating activities reached **HK$533 million** (2024: HK$795 million)[51](index=51&type=chunk) - Net cash outflow used in investing activities reached **HK$469 million** (2024: HK$1.177 billion), primarily for the purchase of property, plant and equipment totaling **HK$84 million**, a net increase of **HK$40 million** in time deposits over three months, and a net increase of **HK$318 million** in other financial assets[51](index=51&type=chunk) - Net cash inflow from financing activities reached **HK$33 million** (2024: outflow of HK$29 million), mainly due to an increase in net bank loan inflows[52](index=52&type=chunk) [Capital Structure](index=19&type=section&id=Capital%20Structure) The Group's long-term capital combines shareholders' equity and liabilities, primarily comprising share capital, reserves, and bank loans, with no significant changes in capital structure during the period, bank loans increasing to HK$434 million, and cash resources totaling HK$4.748 billion, including HK$2.889 billion in cash and cash equivalents - The Group's long-term capital combines shareholders' equity and liabilities, primarily comprising share capital, reserves, and bank loans, with no significant changes in capital structure during the period[53](index=53&type=chunk) - As of June 30, 2025, bank loans increased to **HK$434 million**[53](index=53&type=chunk) - As of June 30, 2025, the Group's cash resources amounted to **HK$4.748 billion**, of which cash and cash equivalents were **HK$2.889 billion**[53](index=53&type=chunk) Cash and Cash Equivalents by Currency | Original Currency | As of June 30, 2025 (million HKD) | As of December 31, 2024 (million HKD) | | :--- | :--- | :--- | | RMB | 1,236 | 1,286 | | USD | 1,590 | 1,297 | | HKD | 9 | 13 | | Other currencies | 54 | 104 | | **Total** | **2,889** | **2,700** | [Foreign Exchange and Interest Rate Risk](index=19&type=section&id=Foreign%20Exchange%20and%20Interest%20Rate%20Risk) The Group's foreign exchange risk primarily arises from sales and purchases denominated in non-functional currencies, mainly USD, EUR, JPY, and RMB, which it primarily hedges through operations and monitors interest rate changes, with bank loans comprising both fixed and floating rates - The Group's foreign exchange risk primarily arises from sales and purchases denominated in currencies other than the functional currency of the relevant business, mainly USD, EUR, JPY, and RMB[55](index=55&type=chunk) - The Group primarily hedges foreign exchange risk through operations and does not use any financial instruments for hedging purposes[56](index=56&type=chunk) - As of June 30, 2025, the Group's bank loans comprised **HK$77 million** at fixed rates and **HK$357 million** at floating rates[56](index=56&type=chunk) [Financial Guarantees and Pledged Assets](index=20&type=section&id=Financial%20Guarantees%20and%20Pledged%20Assets) As of June 30, 2025, bank loans of HK$195 million were secured by certain land, buildings, plant, machinery, and equipment of a Group subsidiary to support its long-term development, with no other financial guarantees or pledged assets during the period - As of June 30, 2025, bank loans of **HK$195 million** were secured by certain land, buildings, plant, machinery, and equipment of a Group subsidiary[57](index=57&type=chunk) - Other than as disclosed above, the Group had no other financial guarantees or pledged assets during the period[57](index=57&type=chunk) [Commitments](index=20&type=section&id=Commitments) As of June 30, 2025, outstanding capital commitments not provided in the Group's financial statements amounted to approximately HK$214 million, primarily for the purchase of plant, machinery, tools, and equipment, to be funded by internal resources and/or external financing - As of June 30, 2025, outstanding capital commitments not provided in the Group's financial statements amounted to approximately **HK$214 million**[58](index=58&type=chunk) - These are primarily for the purchase of plant, machinery, tools, and equipment, to be funded by the Group's internal resources and/or external financing[58](index=58&type=chunk) [Other Investments](index=20&type=section&id=Other%20Investments) As of June 30, 2025, the Group held a diversified investment portfolio, including equity investments in securities related to the automotive industry, with the results of these investments appropriately reflected in the financial statements - As of June 30, 2025, the Group held a diversified investment portfolio, including equity investments in securities related to the automotive industry[59](index=59&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Company had no significant contingent liabilities - As of June 30, 2025, the Company had no significant contingent liabilities[60](index=60&type=chunk) [Operating Review](index=21&type=section&id=Operating%20Review) The Group's operating review is segmented by customer purchasing decision location, with China market revenue growing 21% to HK$4.448 billion, accounting for 67% of total revenue, driven by new energy vehicle policy support and supply chain optimization; European market revenue increased 9% to HK$1.209 billion; Americas market revenue decreased 17% to HK$325 million due to geopolitical and policy impacts; Japan market revenue decreased 34% to HK$413 million due to economic weakness and HEV dominance; and South Korea market revenue decreased 20% to HK$160 million, though government policies indicate future growth potential - The Group changed its presentation of geographical revenue information from "revenue by place of delivery" to "revenue by location of customer purchasing decision" starting from the preparation of the 2024 annual report[83](index=83&type=chunk) [China](index=21&type=section&id=China) The China market recorded revenue of HK$4.448 billion, an approximate 21% year-on-year increase, accounting for about 67% of the Group's total revenue, primarily from the automotive display business, driven by new energy vehicle policy support, supply chain optimization, improved quality management, and enhanced efficiency at the Chengdu factory, with the Group establishing strategic partnerships with leading enterprises and successfully increasing TFT and touchscreen display module revenue, while the system business also made significant progress - Revenue in China reached **HK$4.448 billion**, an increase of approximately **21%** compared to the same period in 2024, accounting for approximately **67%** of the Group's total revenue[61](index=61&type=chunk) - This was primarily from the automotive display business, benefiting from new energy vehicle policy support[61](index=61&type=chunk) - Through comprehensive optimization of supply chain, quality, production, and sales processes, the Group continuously gained customer trust, solidifying its leading position in the Chinese market[61](index=61&type=chunk) - Revenue from various TFT and touchscreen display modules was successfully increased, and in-vehicle displays were launched in collaboration with several automakers[62](index=62&type=chunk) - The system business made significant progress in China, boasting a more diversified and robust Tier-1 customer base[62](index=62&type=chunk) - The new TFT and touch panel factory in Chengdu enhanced production capacity and strengthened its workforce, technology, and quality systems[63](index=63&type=chunk) [Europe](index=22&type=section&id=Europe) The European market recorded revenue of HK$1.209 billion, an approximate 9% year-on-year increase, accounting for about 18% of the Group's total revenue, primarily due to the delivery of TFT display module orders secured from multiple automotive clients in previous years commencing in 2025, and successfully winning orders from several renowned European automakers, laying a foundation for sustained growth in the coming years - Revenue in Europe reached **HK$1.209 billion**, an increase of approximately **9%** compared to the same period in 2024, accounting for approximately **18%** of the Group's total revenue[64](index=64&type=chunk) - The growth was primarily due to the delivery of TFT display module orders secured from multiple automotive clients in previous years commencing in 2025[64](index=64&type=chunk) - The Group successfully won orders from several renowned European automakers, laying a foundation for sustained order supply in the coming years[64](index=64&type=chunk) [Americas](index=23&type=section&id=Americas) The Americas market recorded revenue of HK$325 million, an approximate 17% year-on-year decrease, accounting for about 5% of the Group's total revenue, primarily due to escalating geopolitical conflicts, slower-than-expected interest rate declines, and government cancellation of new energy vehicle incentives; the Group remains committed to capitalizing on new energy vehicle trends, promoting TFT display modules and semi-system products, and plans to increase local sales team headcount and explore overseas M&A to meet customer demand - Revenue in the Americas reached **HK$325 million**, accounting for approximately **5%** of the Group's total revenue, a decrease of approximately **17%** compared to last year[65](index=65&type=chunk) - The decrease was primarily affected by escalating geopolitical conflicts, slower-than-expected interest rate declines, and government cancellation of new energy vehicle incentives[65](index=65&type=chunk) - The Group remains committed to capitalizing on new energy vehicle trends, promoting products to existing and new customers, and participating in international consumer electronics shows[65](index=65&type=chunk) - Potential revenue growth in the US market is anticipated with customers launching new car models and increased demand for higher-priced semi-system products[65](index=65&type=chunk) - The Group plans to increase the headcount of its local sales team in Central and South America to enhance responsiveness to customer needs[66](index=66&type=chunk) [Japan](index=24&type=section&id=Japan) The Japan market recorded revenue of HK$413 million, an approximate 34% year-on-year decrease, accounting for about 6% of the Group's revenue, primarily due to inflation, weak economic growth, and traditional automakers' focus on hybrid vehicles leading to soft new energy vehicle demand; the Group has expanded its local sales and technical teams in the Nagoya office to enhance customer service capabilities, anticipating significant future revenue growth potential - Revenue in Japan reached **HK$413 million**, a decrease of approximately **34%** compared to last year, accounting for approximately **6%** of the Group's revenue[67](index=67&type=chunk) - The decrease was primarily due to inflation and weak economic growth, as well as traditional automakers' primary focus on hybrid vehicles, leading to soft demand for new energy vehicles[67](index=67&type=chunk) - The new office in Nagoya commenced operations in 2024, equipped with an expanded local sales force and technical team, with significant potential for revenue growth from Japanese customers anticipated[67](index=67&type=chunk)[68](index=68&type=chunk) [South Korea](index=24&type=section&id=South%20Korea) The South Korea market recorded revenue of HK$160 million, an approximate 20% year-on-year decrease, accounting for about 2% of the Group's revenue, primarily due to weak new energy vehicle demand; despite this, South Korea remains an important market, with the government setting a target to increase electric vehicle numbers to 2 million by 2030 and offering purchase subsidies and tax incentives, signaling an optimistic outlook for future new energy vehicle adoption - Revenue in South Korea reached **HK$160 million**, a decrease of approximately **20%** compared to the same period last year, accounting for approximately **2%** of the Group's revenue[69](index=69&type=chunk) - The decrease in revenue was primarily due to weak demand for new energy vehicles[69](index=69&type=chunk) - The South Korean government has set a target to increase the number of electric vehicles to **2 million** by 2030 and plans to accelerate the construction of charging stations, offering purchase subsidies and tax incentives[69](index=69&type=chunk) [Consolidated Financial Statements](index=25&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=25&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group's revenue was HK$6.671 billion, operating profit was HK$201 million, and profit before tax was HK$196 million, with profit for the period at HK$170 million, of which HK$180 million was attributable to shareholders, and basic earnings per share at 22.9 HK cents Consolidated Income Statement Summary (For the 6 months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 6,670,596 | 6,157,319 | | Other operating income, net | 168,557 | 94,770 | | Operating profit | 201,253 | 193,651 | | Finance costs | (5,567) | (8,540) | | Profit before tax | 195,686 | 185,111 | | Income tax | (26,140) | (9,734) | | Profit for the period | 169,546 | 175,377 | | Profit attributable to shareholders | 180,476 | 172,100 | | Basic earnings per share | 22.9 HK cents | 21.9 HK cents | | Diluted earnings per share | 22.8 HK cents | 21.8 HK cents | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=26&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, profit for the period was HK$170 million, with other comprehensive income primarily including a net change in exchange reserves from overseas currency translation adjustments of HK$75.7 million, resulting in a total comprehensive income for the period of HK$245 million, of which HK$255 million was attributable to shareholders Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (For the 6 months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Profit for the period | 169,546 | 175,377 | | Overseas currency translation adjustment: net change in exchange reserves | 75,745 | (23,776) | | Total comprehensive income for the period | 245,291 | 151,601 | | Total comprehensive income attributable to shareholders | 255,274 | 148,324 | | Total comprehensive income attributable to non-controlling interests | (9,983) | 3,277 | [Consolidated Statement of Financial Position](index=27&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total non-current assets were HK$2.221 billion, total current assets were HK$9.613 billion, and total current liabilities were HK$6.754 billion, resulting in net assets of HK$4.717 billion, of which HK$4.662 billion was attributable to shareholders Consolidated Statement of Financial Position Summary (As of June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 2,220,727 | 2,269,640 | | Current assets | 9,612,893 | 9,195,302 | | **Liabilities** | | | | Current liabilities | 6,753,785 | 6,499,601 | | Non-current liabilities | 362,723 | 364,846 | | **Equity** | | | | Net assets | 4,717,112 | 4,600,495 | | Equity attributable to shareholders | 4,661,886 | 4,535,286 | | Non-controlling interests | 55,226 | 65,209 | | Total equity | 4,717,112 | 4,600,495 | [Notes to the Financial Statements](index=29&type=section&id=Notes%20to%20the%20Financial%20Statements) [General Information](index=29&type=section&id=General%20Information) The Company is incorporated in Bermuda, listed on the Hong Kong Stock Exchange, with its ultimate controlling party being BOE Technology Group Co., Ltd., primarily engaged in investment holding, and the Group mainly operates in the automotive and industrial display businesses, possessing monochrome display manufacturing capacity and TFT module assembly capacity - The Company is incorporated in Bermuda, with its shares listed on The Stock Exchange of Hong Kong Limited[74](index=74&type=chunk) - The Group's ultimate controlling party is BOE Technology Group Co., Ltd., incorporated in the People's Republic of China[74](index=74&type=chunk) - The Group is primarily engaged in the automotive and industrial display businesses, possessing monochrome display manufacturing capacity and TFT module assembly capacity[75](index=75&type=chunk) [Independent Review](index=29&type=section&id=Independent%20Review) This interim financial report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410 and by the Company's Audit Committee - This interim financial report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[76](index=76&type=chunk) - This interim financial report has been reviewed by the Company's Audit Committee[76](index=76&type=chunk) [Basis of Preparation](index=30&type=section&id=Basis%20of%20Preparation) This interim financial report is prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants, approved for issue on August 25, 2025, with accounting policies consistent with the 2024 annual financial statements, except for necessary changes to reflect accounting policy updates - This interim financial report is prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants[77](index=77&type=chunk) - The accounting policies adopted in the preparation of this interim financial report are consistent with those applied in the preparation of the 2024 annual financial statements[77](index=77&type=chunk) [Changes in Accounting Policies and Their Application](index=30&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Their%20Application) The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" issued by the Hong Kong Institute of Certified Public Accountants to this interim financial report, which had no significant impact, and has not early adopted any new standards or interpretations not yet effective - The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" issued by the Hong Kong Institute of Certified Public Accountants to this interim financial report, but it had no significant impact on this interim financial report[78](index=78&type=chunk) - The Group has not early adopted any new standards or interpretations that are not yet effective for this accounting period[79](index=79&type=chunk) [Revenue and Segment Reporting](index=30&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's primary business is the design, manufacture, and sale of liquid crystal displays and related products, classified as a single operating segment; to enhance reporting clarity, the presentation of geographical revenue information has been changed from "revenue by place of delivery" to "revenue by location of customer purchasing decision," with comparative figures for the prior reporting period restated, and the China region accounts for the highest proportion of revenue, reaching 67% - The Group's primary business is the design, manufacture, and sale of liquid crystal displays and related products, constituting the sole reportable segment[80](index=80&type=chunk)[81](index=81&type=chunk) - To enhance the clarity of reported figures, the Group changed its presentation of geographical revenue information from "revenue by place of delivery" to "revenue by location of customer purchasing decision" starting from the preparation of the 2024 annual report[83](index=83&type=chunk) [Operating Segment Results](index=30&type=section&id=Operating%20Segment%20Results) The Group manages its business as a single unit, thus the design, manufacture, and sale of liquid crystal displays and related products constitute the sole reportable segment, with all revenue and operating profit derived from this business segment, and the Board of Directors, as the chief operating decision-maker, reviews internal reports to assess performance and allocate resources - The Group manages its business as a single unit; therefore, the design, manufacture, and sale of liquid crystal displays and related products constitute the sole reportable segment[81](index=81&type=chunk) - The chief operating decision-maker is the Board of Directors, which reviews the Group's internal reports to assess performance and allocate resources[81](index=81&type=chunk) [Geographical Information](index=31&type=section&id=Geographical%20Information) The Group has changed the presentation of geographical revenue information from "revenue by place of delivery" to "revenue by location of customer purchasing decision" to better reflect customer relationships and market influence, restating comparative figures for the prior reporting period, with the China region contributing the majority of the Group's revenue and designated non-current assets - To enhance the clarity of reported figures, the Group changed its presentation of geographical revenue information from "revenue by place of delivery" to "revenue by location of customer purchasing decision" starting from the preparation of the 2024 annual report[83](index=83&type=chunk) - The China region contributed the majority of the Group's revenue (**HK$4.448 billion** in 2025) and designated non-current assets (**HK$2.068 billion** in 2025)[84](index=84&type=chunk)[85](index=85&type=chunk) The Group's Revenue from External Customers (by location of customer purchasing decision) | Region | 2025 (thousand HKD) | 2024 (thousand HKD) (Restated) | | :--- | :--- | :--- | | China | 4,448,176 | 3,687,551 | | Europe | 1,208,630 | 1,105,916 | | Americas | 325,251 | 391,682 | | Japan | 412,530 | 622,591 | | South Korea | 159,576 | 198,655 | | Other | 116,433 | 150,924 | | **Consolidated Revenue** | **6,670,596** | **6,157,319** | The Group's Designated Non-Current Assets (by physical location of assets) | Region | As of June 30, 2025 (thousand HKD) | As of December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | China | 2,068,373 | 2,074,262 | | Other | 13,891 | 15,551 | | **Total** | **2,082,264** | **2,089,813** | [Other Operating Income, Net](index=32&type=section&id=Other%20Operating%20Income%2C%20Net) For the six months ended June 30, 2025, other operating income, net, was HK$169 million, a significant increase from HK$94.8 million in the prior year, primarily driven by government subsidies (HK$59.66 million), net gains from current other financial assets measured at fair value through profit or loss (HK$31.84 million), and proceeds from the sale of financial assets at fair value through profit or loss (HK$5.75 million) Other Operating Income, Net (For the 6 months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Government subsidies | 59,658 | 16,328 | | Interest income from financial assets measured at amortized cost | 52,005 | 58,067 | | Net gains from current other financial assets measured at fair value through profit or loss | 31,835 | 1,833 | | Net exchange gains | 9,244 | 13,513 | | Proceeds from sale of financial assets at fair value through profit or loss | 5,751 | - | | Net gains on disposal of property, plant and equipment | 1,455 | 353 | | Other income | 8,609 | 4,652 | | **Total** | **168,557** | **94,770** | - Government subsidies include **HK$2.831 million** for R&D and other subsidies for high-tech manufacturing, **HK$11.963 million** for amortization of government grants for equipment purchases, **HK$43.762 million** for production-related incentives, and **HK$1.102 million** for employee retention incentives[86](index=86&type=chunk) [Profit Before Tax](index=33&type=section&id=Profit%20Before%20Tax) For the six months ended June 30, 2025, profit before tax was net of finance costs of HK$5.57 million (primarily HK$4.82 million in bank loan interest) and other operating expenses of HK$362 million, with a significant increase in expected credit losses for trade receivables to HK$44.65 million and sales, marketing, commission, and quality assurance expenses at HK$63.63 million Profit Before Tax Deductions (For the 6 months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | **(a) Finance costs** | | | | Interest on lease liabilities | 743 | 655 | | Bank loan interest | 4,824 | 7,885 | | **Total** | **5,567** | **8,540** | | **(b) Other items** | | | | Cost of inventories | 6,100,343 | 5,454,644 | | **(c) Other operating expenses** | | | | Amortization of intangible assets | 2,412 | 1,929 | | Auditor's remuneration | 2,202 | 2,108 | | Bank charges | 5,392 | 2,800 | | Property management fees | 4,481 | 4,227 | | Factory consumables, cleaning and security service fees | 24,162 | 17,774 | | Freight charges | 49,376 | 47,641 | | Insurance expenses | 3,937 | 2,868 | | Legal and professional fees | 6,716 | 4,164 | | Office expenses | 6,014 | 6,670 | | Other taxes, surcharges and duties | 18,414 | 15,594 | | Expected credit losses for trade receivables | 44,646 | 4,719 | | Repair and maintenance | 15,910 | 22,674 | | Sales, marketing, commission and quality assurance expenses | 63,626 | 52,289 | | Subcontracting fees | 32,989 | 28,264 | | Trademark license fees | 12,353 | 13,294 | | Travel and entertainment expenses | 18,802 | 14,883 | | Utilities expenses | 41,104 | 42,428 | | Miscellaneous expenses | 9,216 | 9,714 | | **Total** | **361,752** | **294,040** | - Expected credit losses for trade receivables significantly increased to **HK$44.646 million** (2024: HK$4.719 million)[87](index=87&type=chunk) [Income Tax in Consolidated Income Statement](index=34&type=section&id=Income%20Tax%20in%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, total income tax was HK$26.14 million, with Hong Kong profits tax calculated at 16.5%, China income tax at a standard rate of 25%, but certain subsidiaries (e.g., Varitronix Heyuan, Ruihe, Varitronix Huizhou, Chengdu Automotive) enjoying a preferential tax rate of 15% due to high-tech enterprise status or Western Development policy, and Pillar Two income tax of HK$5.5 million recognized for the first time in this period Income Tax in Consolidated Income Statement (For the 6 months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Current tax – Hong Kong profits tax | 9,262 | 15,441 | | Pillar Two income tax | 5,500 | - | | Current tax – China income tax | 10,779 | 28,103 | | Current tax – Jurisdictions outside Hong Kong and China | 729 | (3,173) | | Deferred tax | (130) | (30,637) | | **Total** | **26,140** | **9,734** | - Hong Kong profits tax is calculated at a rate of **16.5%**, and the standard corporate income tax rate for Chinese enterprises is **25%**[88](index=88&type=chunk) - Varitronix Heyuan, Ruihe, Varitronix Huizhou, and Chengdu Automotive are eligible for a reduced income tax rate of **15%**[89](index=89&type=chunk) - Effective January 1, 2025, the Group's profits in the Hong Kong Special Administrative Region and certain other jurisdictions are subject to Pillar Two income tax, with **HK$5.5 million** recognized in this period[90](index=90&type=chunk) [Dividends](index=35&type=section&id=Dividends) The Board of Directors resolved not to recommend an interim dividend for the six months ended June 30, 2025, while the final dividend of HK$134 million (17.0 HK cents per share) for the previous financial year was approved and recognized as dividends payable in this interim period - The Board of Directors resolved not to recommend an interim dividend for the six months ended June 30, 2025[91](index=91&type=chunk) Dividends Payable to Shareholders Approved | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Final dividend for the previous financial year of 17.0 HK cents per share (2024: 19.0 HK cents) | 134,095 | 149,660 | - The final dividend was recognized as dividends payable in the consolidated statement of financial position as of June 30, 2025[93](index=93&type=chunk) [Earnings Per Share](index=36&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were 22.9 HK cents and diluted earnings per share were 22.8 HK cents, calculated based on the consolidated profit attributable to shareholders of HK$180 million and the weighted average number of shares outstanding during the period - Basic earnings per share are calculated based on the consolidated profit attributable to ordinary shareholders of the Company of **HK$180 million** for the period and the weighted average of **788 million** ordinary shares outstanding during the interim period, amounting to **22.9 HK cents**[94](index=94&type=chunk) - Diluted earnings per share are calculated based on the consolidated profit attributable to ordinary shareholders of the Company of **HK$180 million** for the period and the weighted average of **790 million** ordinary shares, amounting to **22.8 HK cents**[95](index=95&type=chunk) [Trade and Other Receivables, Deposits and Prepayments and Other Contract Costs](index=36&type=section&id=Trade%20and%20Other%20Receivables%2C%20Deposits%20and%20Prepayments%20and%20Other%20Contract%20Costs) As of June 30, 2025, total trade and bills receivables amounted to HK$2.601 billion, net of a loss allowance of HK$101 million, with the majority (HK$1.711 billion) due within 60 days from the invoice date, and trade and bills receivables generally due within 60 to 90 days after the invoice date Aging Analysis of Trade and Bills Receivables (Net of loss allowance) | Aging | As of June 30, 2025 (thousand HKD) | As of December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 60 days from invoice date | 1,711,256 | 2,140,687 | | 61 to 90 days after invoice date | 451,995 | 435,973 | | 91 to 120 days after invoice date | 304,539 | 183,870 | | Over 120 days but less than 12 months after invoice date | 133,114 | 135,036 | | **Total** | **2,600,904** | **2,895,566** | - Loss allowance was **HK$101 million** (December 31, 2024: HK$54.955 million)[96](index=96&type=chunk) - Trade and bills receivables are generally due within **60 to 90 days** after the invoice date[96](index=96&type=chunk) [Other Financial Assets](index=37&type=section&id=Other%20Financial%20Assets) As of June 30, 2025, non-current other financial assets were HK$1.73 million (primarily unlisted equity securities outside Hong Kong), and current other financial assets were HK$785 million (primarily structured deposit products issued by financial institutions outside Hong Kong) Other Financial Assets (As of June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | **Non-current portion** | | | | Financial assets measured at fair value through profit or loss - Unlisted equity securities outside Hong Kong | 1,726 | 1,700 | | **Current portion** | | | | Financial assets measured at fair value through profit or loss - Listed equity securities within Hong Kong | 54,935 | - | | Financial assets measured at fair value through profit or loss - Issued by financial institutions outside Hong Kong | 729,623 | 389,759 | | **Total** | **786,284** | **429,945** | - The balance of current other financial assets as of June 30, 2025, represents investments in structured deposit products with guaranteed principal and floating returns[97](index=97&type=chunk) [Trade and Other Payables](index=37&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and bills payables amounted to HK$5.430 billion, with the majority (HK$4.700 billion) due within 60 days from the supplier's invoice date Aging Analysis of Trade and Bills Payables (As of reporting date) | Aging | As of June 30, 2025 (thousand HKD) | As of December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 60 days from supplier's invoice date | 4,700,365 | 4,386,214 | | 61 to 120 days after supplier's invoice date | 586,483 | 477,513 | | Over 120 days but less than 12 months after supplier's invoice date | 110,541 | 297,842 | | Over 12 months after supplier's invoice date | 32,549 | 205,657 | | **Total** | **5,429,938** | **5,367,226** | [Commitments](index=38&type=section&id=Commitments) As of June 30, 2025, contracted but unfulfilled capital commitments not provided in the financial information amounted to approximately HK$214 million, primarily for the purchase of plant, machinery, tools, and equipment - As of the reporting date, contracted but unfulfilled capital commitments not provided in the financial information amounted to approximately **HK$214 million**[99](index=99&type=chunk) - These are primarily for the purchase of plant, machinery, tools, and equipment[58](index=58&type=chunk) [Other Information](index=38&type=section&id=Other%20Information) [Interim Dividend](index=38&type=section&id=Interim%20Dividend) The Group's dividend policy remains unchanged, and the Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Group's dividend policy remains unchanged[100](index=100&type=chunk) - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[100](index=100&type=chunk) [Employees](index=39&type=section&id=Employees) As of June 30, 2025, the Group employed a total of 7,562 staff globally, with the majority located in China, and adopts a performance-based remuneration policy, offering training and development programs to attract, motivate, and retain talented employees - As of June 30, 2025, the Group employed a total of **7,562 staff** globally, with **7,365** based in China[101](index=101&type=chunk) - The Group adopts a performance-based remuneration policy, where salary reviews and performance bonuses are determined by work performance[101](index=101&type=chunk) - Various training and development programs are provided to attract, motivate, and retain talented employees[101](index=101&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=39&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period ended June 30, 2025, the trustee of the share award scheme purchased 1.106 million shares for a total consideration of approximately HK$5.576 million, and the Board granted 3.339 million award shares to selected participants under the scheme, with no other purchases, sales, or redemptions of any listed securities by the Company or its subsidiaries - The trustee of the share award scheme purchased **1.106 million shares** on the Stock Exchange in the first half of 2025, for a total consideration of approximately **HK$5.576 million**[102](index=102&type=chunk) - The Board granted a total of **3.339 million award shares** to certain selected participants under the share award scheme[102](index=102&type=chunk) - Other than the above, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period ended June 30, 2025[104](index=104&type=chunk) [Corporate Governance](index=40&type=section&id=Corporate%20Governance) The Directors believe that the Company has complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the period ended June 30, 2025, except for one independent non-executive Director who was unable to attend the Annual General Meeting due to other business arrangements - The Directors believe that the Company has complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the period ended June 30, 2025[106](index=106&type=chunk) - Mr. Zhu Hehua, an independent non-executive Director, was unable to attend the Company's Annual General Meeting held on June 25, 2025, due to other business arrangements[107](index=107&type=chunk) [Standard Code for Securities Transactions by Directors](index=40&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Direct

1. 穩定收入增長及利潤提升 根據金界控股有限公司（「本公司」，連同其附屬公司稱為「本集團」）於該期間 的未經審核綜合財務報表，有關半年度財務表現的分析如下： 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。 NAGACORP LTD. 金界控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3918） 截至二零二五年六月三十日止六個月 中期業績公告 截至二零二五年六月三十日止六個月（「該期間」或「二零二五年上半年」）未經審 核簡明綜合中期業績摘要： 1 ‧ 博 彩 總 收 入（「博彩總收入 」）較 去 年 同 期283,400,000美元增長17.2%至 332,300,000美元 ‧ 中場博彩總收入較去年同期192,000,000美元增長20.9%至232,100,000美 元 ‧ 貴賓市場博彩總收入較去年同期91,400,000美元增長9.6%至100,200,000美 元 ‧ 中場分部毛利率（扣除博彩稅）為89.1%，佔博彩總收入69. ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 KEEN OCEAN INTERNATIONAL HOLDING LIMITED 僑洋國際控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8070） 截至2025年6月30日止六個月之 中期業績公告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交 所上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在 風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣 之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量 的市場。 本公告的資料乃遵照《香港聯合交易所有限公司GEM證券上市規則》（「GEM上市 規則」）而刊載，旨在提供有關僑洋國際控股有限公司（「本公司」或「我們」）及其附 屬公司（統稱「本集團」）的資料；本公司董事（ ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容 而產生或因依賴該等內容而引致的任何損失承擔任何責任。 截至2025年6月30日止六個月 （以人民幣列示） | | | 截至2025年 | 截至2024年 | | --- | --- | --- | --- | | | | 6月30日止 | 6月30日止 | | | | 六個月 | 六個月 | | | 附註 | 人民幣千元 | 人民幣千元 | | | | （未經審計） | （未經審計） | | 收入 | 4 | 41,371 | 46,119 | | 銷售成本 | | (24,827) | (31,362) | | 毛利 | | 16,544 | 14,757 | | 投資物業估值（虧損）╱收益 | | (2,166) | 1,048 | | 其他收入淨額 | 5 | 3,620 | 7,836 | | 其他應收款項減值虧損 | | (513) | (1,341) | | 銷售開支 | | (3,970) | (3,724) | | 行政開支 | | (13 ...

[Interim Results Summary](index=1&type=section&id=%E6%A6%82%E8%A6%81) This section presents a high-level overview of the Group's financial performance and key operational highlights for the six months ended June 30, 2025 [Results for the Six Months Ended June 30, 2025](index=1&type=section&id=%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%94%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E6%A5%AD%E7%B8%BE) Soft International Limited achieved RMB 8.507 billion in revenue, a 7.3% year-on-year increase, with profit attributable to owners growing by 10.4% and basic earnings per share by 15.6% | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,506,642 | 7,926,183 | 7.3% | | Service Revenue | 8,248,232 | 7,647,920 | 7.8% | | Profit Before Tax | 348,946 | 295,834 | 18.0% | | Profit for the Period | 315,031 | 285,353 | 10.4% | | Profit Attributable to Owners of the Company | 315,563 | 285,720 | 10.4% | | Basic EPS (RMB cents) | 12.64 | 10.93 | 15.6% | - The Board **does not recommend** an interim dividend for the six months ended June 30, 2025[3](index=3&type=chunk) [Management Discussion and Analysis](index=2&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides a detailed analysis of the Group's operational performance, financial results, and strategic initiatives during the reporting period [Key Operating Data](index=2&type=section&id=%E4%B8%BB%E8%A6%81%E9%81%8B%E7%87%9F%E8%B3%87%E6%96%99) The Group's business returned to growth in the first half of 2025, with revenue, service revenue, profit for the period, and basic earnings per share all increasing year-on-year - The Group's business returned to growth, with revenue increasing by **7.3%** year-on-year and service revenue by **7.8%**[4](index=4&type=chunk) - Profit for the period and profit attributable to owners of the Group both increased by **10.4%** year-on-year[4](index=4&type=chunk) - Basic earnings per share increased by **15.6%** year-on-year[4](index=4&type=chunk) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,506,642 | 7,926,183 | 7.3% | | Service Revenue | 8,248,232 | 7,647,920 | 7.8% | | Profit for the Period | 315,031 | 285,353 | 10.4% | | Profit Attributable to Owners of the Group | 315,563 | 285,720 | 10.4% | | Basic EPS (cents) | 12.64 | 10.93 | 15.6% | [Overall Review](index=3&type=section&id=%E7%B8%BD%E9%AB%94%E6%A6%82%E8%BF%B0) The company is advancing its full-scenario AI strategy, achieving a 130% revenue surge in AI business, and making significant progress in KaihongOS, R1-AgentDIM, and cloud computing - The company is steadfastly advancing its full-scenario AI strategy, focusing on "1+3" core tracks, with cloud intelligence and computing power as the foundation, synergizing three major business segments: Harmony AIoT and Digital Twin, Intelligent Agent and Model Factory Services, and ERP Consulting Implementation and Digital Transformation Services[6](index=6&type=chunk) - Full-scenario AI business achieved revenue of **RMB 656 million**, a year-on-year surge of **130%**, becoming the core engine driving the company's performance growth[6](index=6&type=chunk) - KaihongOS, the world's first open-source HarmonyOS system meeting microsecond-level hard real-time requirements, obtained Level 4 security certification from the Ministry of Public Security and, in collaboration with DeepKaihong, released the world's first distributed heterogeneous multi-machine collaborative robot operating system, M-Robots OS[7](index=7&type=chunk) - The R1-AgentDIM Platform and R1-DMP Data Management Platform were launched, with over **300 AI assistant projects** implemented across manufacturing, healthcare, finance, and energy sectors, and more than **50 large model collaboration projects** with Huawei[8](index=8&type=chunk) - The company continues to lead the Huawei Cloud ecosystem, maintaining the top position in business scale and ecosystem share, building a complete service system of "cloud sales - cloud services - AI enablement," and actively participating in computing center construction, helping clients improve AI inference efficiency by **15%**[10](index=10&type=chunk) - Since its listing in 2003, revenue has achieved a compound annual growth rate of **24.6%**, and service revenue a compound annual growth rate of **30.8%**[11](index=11&type=chunk) [Customers](index=6&type=section&id=%E5%AE%A2%E6%88%B6) The Group serves a global customer base, with significant achievements in Greater China, Asia Pacific, and the Middle East, and a high concentration of service revenue from top clients - Customers are located globally, with significant achievements in Greater China, Asia Pacific, and the Middle East[13](index=13&type=chunk) - The company has long-standing relationships with numerous renowned domestic and international large enterprise clients, including Huawei, HSBC, Honor, Tencent, Alibaba, Ping An, China Mobile, China Telecom, Bank of Communications, China National Petroleum Corporation, CNOOC, and State Grid[13](index=13&type=chunk) | Indicator | 2025 H1 | | :--- | :--- | | Top 5 Customers' Service Revenue Share | 57.3% | | Top 10 Customers' Service Revenue Share | 65.0% | | Number of Major Customers with Service Revenue > RMB 6 million | 191 | [Markets](index=6&type=section&id=%E5%B8%82%E5%A0%B4) The Group focuses on industry-specific AI solutions based on HarmonyOS, expanding domestically in developed regions and internationally in Asia Pacific and the Middle East - The company focuses on industries such as power, finance, government, transportation, public utilities, and enterprise manufacturing, creating industry-specific scenario solutions based on the HarmonyOS ecosystem and AI technology[14](index=14&type=chunk) - The domestic market strategy emphasizes economically developed regions like the Greater Bay Area, Yangtze River Delta, and Beijing-Tianjin-Hebei, as well as central and western hub regions, deeply cultivating key cities[14](index=14&type=chunk) - The overseas market uses Hong Kong as a strategic hub, driven by a "technology export + ecosystem localization" dual-wheel model, to build a global service system covering the Asia Pacific and Middle East regions, with progress in projects like the Kai Tak Sports Park in Hong Kong and NEOM in Saudi Arabia[14](index=14&type=chunk) [Human Resources](index=7&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) The Group's total headcount increased by 7.7% to 75,249 employees by June 30, 2025, driven by business recovery and rapid expansion of full-scenario AI operations | Indicator | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Employees | 75,249 persons | 69,898 persons | 7.7% | - Employee growth primarily stemmed from increased demand for human resource support due to the steady recovery of cornerstone businesses and the rapid expansion of full-scenario AI businesses, which led to a surge in demand for specialized talent[15](index=15&type=chunk) [Operating Results](index=8&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE) This section details the Group's operating results for the first half of 2025, highlighting revenue, gross profit, expenses, and profit performance, driven by full-scenario AI business and efficiency improvements | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,506,642 | 7,926,183 | 7.3% | | Service Revenue | 8,248,232 | 7,647,920 | 7.8% | | Gross Profit | 1,874,898 | 1,831,400 | 2.4% | | Profit Before Tax | 348,946 | 295,834 | 18.0% | | Profit for the Period | 315,031 | 285,353 | 10.4% | | Profit Attributable to Owners of the Group | 315,563 | 285,720 | 10.4% | | Basic EPS (cents) | 12.64 | 10.93 | 15.6% | | Adjusted Profit | 277,093 | 247,534 | 11.9% | [Revenue](index=9&type=section&id=%E6%94%B6%E5%85%A5) In the first half of 2025, total revenue grew by 7.3% to RMB 8.507 billion, with service revenue up 7.8%, and full-scenario AI business revenue surging by 130% to RMB 656 million | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 8,506,642 | 7,926,183 | 7.3% | | Service Revenue | 8,248,232 | 7,647,920 | 7.8% | | Full-Scenario AI Business Revenue | 656,000 | 285,217 (estimated) | 130% | - Full-scenario AI business emerged as a new growth engine, achieving revenue of approximately **RMB 656 million**, a significant year-on-year increase of **130%**[19](index=19&type=chunk) [Gross Profit](index=9&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit increased by 2.4% to RMB 1.875 billion, though the overall gross profit margin decreased by 1.1% to 22.0% due to client price reductions, partially offset by AI business growth | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 1,874,898 | 1,831,400 | 2.4% | | Overall Gross Profit Margin | 22.0% | 23.1% | -1.1% | | Gross Profit as % of Service Revenue | 22.7% | 23.9% | -1.2% | - The decline in gross profit margin was primarily due to price reductions from some of the Group's major clients, but the increase in the proportion of full-scenario AI business and the application of AI programming tools in projects effectively drove a quarter-on-quarter gross profit margin rebound of **0.8%** (compared to 21.2% in 2024 H2)[20](index=20&type=chunk) - Future efforts will focus on continuously increasing the proportion of full-scenario AI products and services business and improving delivery efficiency (through AI tool application) to enhance the overall gross profit margin[20](index=20&type=chunk) [Operating Expenses](index=10&type=section&id=%E7%B6%93%E7%87%9F%E8%B2%BB%E7%94%A8) Sales and distribution costs slightly increased by 0.1%, while administrative expenses grew by 0.5%, with both expense ratios decreasing due to optimized resource allocation and AI tool applications | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Sales and Distribution Costs | 426,462 | 425,950 | 0.1% | | Sales and Distribution Costs as % of Revenue | 5.0% | 5.4% | -0.4% | | Administrative Expenses | 1,118,980 | 1,113,278 | 0.5% | | Administrative Expenses as % of Revenue | 13.2% | 14.0% | -0.8% | - The company developed an AI sales assistant through the R1-AgentDIM platform, enhancing sales personnel efficiency and controlling the need for additional sales staff despite revenue growth[21](index=21&type=chunk) - By strengthening budget management and applying self-developed AI tools for recruitment and operations, the company significantly improved the management efficiency of its recruitment and operations departments, reducing the administrative expense ratio[21](index=21&type=chunk) [Other Income](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income increased by 3.5% to RMB 97.907 million, primarily driven by higher government grants, despite a reduction in interest income | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 97,907 | 94,577 | 3.5% | - The increase was primarily due to a year-on-year increase in government grants, partially offset by a decrease in interest income[22](index=22&type=chunk) [Other Gains or Losses](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E6%88%96%E8%99%A7%E6%90%8D) Other gains decreased by 18.2% to RMB 85.785 million, mainly due to the absence of investment gains from the disposal of equity interests recorded in the prior year | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Gains or Losses | 85,785 | 104,890 | -18.2% | - The decrease was primarily due to the recognition of investment gains from the disposal of equity interests in certain associate companies in 2024, with no similar transactions occurring in the current reporting period[23](index=23&type=chunk) [Finance Costs and Income Tax](index=11&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8%E5%92%8C%E6%89%80%E5%BE%97%E7%A8%85) Finance costs decreased by 38.6% to RMB 61.329 million, while income tax expense surged by 223.6% to RMB 33.915 million, with the effective tax rate rising to 9.7% | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 61,329 | 99,837 | -38.6% | | Income Tax Expense | 33,915 | 10,481 | 223.6% | | Effective Tax Rate | 9.7% | 3.5% | +6.2% | - The decrease in finance costs was mainly due to reduced interest expenses on syndicated loans and a one-off expense incurred in the first half of 2024 from early repayment of syndicated loans[24](index=24&type=chunk) - The increase in income tax was primarily due to the prior year's corporate income tax reconciliation and the recognition of deferred income tax expense from fair value changes of financial assets measured at fair value[24](index=24&type=chunk) [Other Non-Cash Expenses](index=11&type=section&id=%E5%85%B6%E4%BB%96%E9%9D%9E%E7%8F%BE%E9%87%91%E9%96%8B%E6%94%AF) Other expenses increased by 17.3% to RMB 52.363 million, and impairment losses under expected credit loss model rose by 23.0% to RMB 19.017 million, both maintaining similar proportions to revenue | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 52,363 | 44,638 | 17.3% | | Impairment Losses under Expected Credit Loss Model | 19,017 | 15,455 | 23.0% | - The proportion of other expenses and impairment losses under the expected credit loss model to revenue remained consistent with the prior year[25](index=25&type=chunk) [Liquidity, Financial and Capital Resources](index=11&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's available cash balance was RMB 2.937 billion, with net current assets of RMB 7.471 billion and a current ratio of 2.3, while the net gearing ratio turned positive at 12.8% | Indicator | 2025 H1 (RMB thousand) | 2024 Year-end (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Available Cash Balance | 2,936,842 | 4,747,142 | Decrease | | Net Current Assets | 7,470,686 | 6,687,092 | Increase | | Current Ratio | 2.3 | 2.1 | +0.2 | | Total Borrowings | 4,436,629 | 4,416,097 | Slight Increase | | Net Gearing Ratio | 12.8% | Negative | Turned Positive | [Profit for the Period and Earnings Per Share](index=12&type=section&id=%E6%9C%AC%E6%9C%9F%E6%BA%A2%E5%88%A9%E5%92%8C%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Profit for the period increased by 10.4% to RMB 315.031 million, with profit attributable to owners also up 10.4%, and basic earnings per share growing by 15.6% to RMB 0.1264 | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 315,031 | 285,353 | 10.4% | | Profit Attributable to Owners of the Group | 315,563 | 285,720 | 10.4% | | Basic EPS (RMB cents) | 12.64 | 10.93 | 15.6% | - Profit growth was primarily attributable to the initial success of the Group's AI transformation in enhancing quality and efficiency during the reporting period[27](index=27&type=chunk) - The increase in basic earnings per share was due to the company's focus on shareholder returns through share repurchases and cancellations[27](index=27&type=chunk) [Adjusted Profit](index=13&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4%E6%BA%A2%E5%88%A9) Adjusted profit increased by 11.9% to RMB 277.093 million, with the adjusted profit margin rising by 0.2% to 3.3%, reflecting enhanced profitability from strategic initiatives | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Adjusted Profit | 277,093 | 247,534 | 11.9% | | Adjusted Profit Margin (as % of Revenue) | 3.3% | 3.1% | +0.2% | | Adjusted Profit Margin (as % of Service Revenue) | 3.4% | 3.2% | +0.2% | - The company achieved a significant improvement in profitability through proactive strategic planning, precise implementation, and a series of initiatives to enhance quality and efficiency[28](index=28&type=chunk) [Fundraising Activities](index=14&type=section&id=%E9%9B%86%E8%B3%87%E6%B4%BB%E5%8B%95) The Group undertook no new fundraising activities during the period, with approximately HKD 394 million from the 2021 placement allocated for HarmonyOS and OpenHarmony development expected to be utilized by December 31, 2025 - The Group did not undertake any fundraising activities during the current year or the prior year[29](index=29&type=chunk) | Net Proceeds Allocation (HKD) | Intended Use of Proceeds | Actual Use of Proceeds | Balance as of June 30, 2025 (HKD) | Expected Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Approx. 788 million | R&D of full-stack cloud intelligent products and solutions, and investments/M&A related to the company's core business | Approx. HKD 788 million used for R&D of full-stack cloud intelligent products and solutions, and investments/M&A related to the company's core business | — | — | | Approx. 788 million | Building HarmonyOS, OpenHarmony software and hardware products and solutions, R&D of full-stack technology for atomic services, and investments/M&A around the HarmonyOS and OpenHarmony industry ecosystem | Approx. HKD 394 million used for building HarmonyOS, OpenHarmony software and hardware products and solutions, R&D of full-stack technology for atomic services, and investments/M&A around the HarmonyOS and OpenHarmony industry ecosystem | Approx. HKD 394 million | Before December 31, 2025 | | Approx. 394 million | General working capital of the company | Approx. HKD 394 million used for general working capital of the company | — | — | [Interim Financial Statements](index=15&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) This section presents the unaudited interim financial statements, including the comprehensive income statement, statement of financial position, statement of changes in equity, and cash flow statement [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=15&type=section&id=%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) The unaudited consolidated statement of comprehensive income shows year-on-year growth in revenue, gross profit, profit for the period, and EPS, with exchange differences turning from loss to gain | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 8,506,642 | 7,926,183 | | Cost of Sales and Services | (6,631,744) | (6,094,783) | | Gross Profit | 1,874,898 | 1,831,400 | | Other Income | 97,907 | 94,577 | | Other Gains or Losses | 85,785 | 104,890 | | Sales and Distribution Costs | (426,462) | (425,950) | | Other Expenses | (52,363) | (44,638) | | Administrative Expenses | (1,118,980) | (1,113,278) | | Finance Costs | (61,329) | (99,837) | | Profit Before Tax | 348,946 | 295,834 | | Income Tax Expense | (33,915) | (10,481) | | Profit for the Period | 315,031 | 285,353 | | Exchange Differences Arising from Translation of Foreign Operations | 9,056 | (2,420) | | Total Comprehensive Income for the Period | 324,087 | 282,933 | | Basic EPS (cents) | 12.64 | 10.93 | | Diluted EPS (cents) | 12.05 | 10.56 | [Unaudited Condensed Consolidated Statement of Financial Position](index=17&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) The unaudited consolidated statement of financial position indicates a slight decrease in non-current assets, changes in current assets and liabilities, and an increase in net current assets and total equity | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property, Plant and Equipment | 1,409,375 | 1,341,755 | | Intangible Assets | 382,518 | 377,431 | | Goodwill | 843,654 | 843,654 | | Fixed Deposits | 760,000 | 1,384,000 | | **Current Assets** | | | | Trade and Other Receivables | 7,968,818 | 6,458,917 | | Contract Assets | 2,174,950 | 2,292,057 | | Bank Balances and Cash | 1,290,856 | 3,130,989 | | **Current Liabilities** | | | | Trade and Other Payables | 1,845,267 | 1,976,013 | | Borrowings | 3,599,918 | 3,640,752 | | Net Current Assets | 7,470,686 | 6,687,092 | | **Total Equity** | 11,733,041 | 11,438,494 | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=19&type=section&id=%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) The unaudited consolidated statement of changes in equity outlines movements in equity for the six months ended June 30, 2025, including profit for the period, other comprehensive income, and share-based payments | Equity Item | June 30, 2025 (RMB thousand) | January 1, 2024 (RMB thousand) | | :--- | :--- | :--- | | Share Capital | 123,434 | 133,029 | | Share Premium | 4,296,705 | 5,474,719 | | Treasury Shares | (864,400) | (1,114,363) | | Accumulated Profits | 7,589,312 | 6,743,079 | | Total Equity Attributable to Owners of the Company | 11,711,054 | 11,742,461 | | Non-Controlling Interests | 21,987 | 24,299 | | Total Equity | 11,733,041 | 11,766,760 | | Profit for the Period | 315,031 | 285,353 | | Other Comprehensive Income for the Period | 9,056 | (2,420) | | Equity-Settled Share-Based Payment Expenses Recognized | 92,656 | 107,861 | | Dividends Paid to Ordinary Shareholders | (122,196) | (190,683) | [Unaudited Condensed Consolidated Statement of Cash Flows](index=20&type=section&id=%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) The unaudited consolidated statement of cash flows shows increased cash used in operating activities, decreased cash used in investing activities, and reduced cash generated from financing activities, leading to a net decrease in cash and cash equivalents | Cash Flow Category | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (990,209) | (686,433) | | Net Cash Used in Investing Activities | (653,449) | (910,800) | | Net Cash Generated from Financing Activities | (191,291) | (332,717) | | Net Decrease in Cash and Cash Equivalents | (1,834,949) | (1,929,950) | | Cash and Cash Equivalents at End of Period | 1,290,856 | 1,841,571 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=21&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes and explanations supporting the unaudited condensed consolidated financial statements, covering general information, accounting policies, and specific financial items [1. General Information](index=21&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Soft International Limited, incorporated in Cayman Islands in 2000 and listed on HKEX, primarily provides IT solution, outsourcing, and training services, with financial statements presented in RMB - The Company was incorporated in the Cayman Islands on February 16, 2000, listed on the GEM Board of The Stock Exchange of Hong Kong Limited on June 20, 2003, and transferred to the Main Board on December 29, 2008[37](index=37&type=chunk) - The principal activities of the Group are the development and provision of information technology solution services, information technology outsourcing services, and training services[38](index=38&type=chunk) - The consolidated financial statements are presented in RMB[38](index=38&type=chunk) [2. Basis of Presentation](index=21&type=section&id=2.%20%E5%91%88%E5%A0%B1%E5%9F%BA%E6%BA%96) The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and applicable HKEX Listing Rules disclosure requirements - The condensed consolidated financial statements are prepared in accordance with the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[39](index=39&type=chunk) [3. Principal Accounting Policies](index=21&type=section&id=3.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared on a historical cost basis, consistent with 2024 policies, with no significant impact from new HKAS adoption in 2025 - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[40](index=40&type=chunk) - The adoption of the amendment to HKAS 21 "Lack of Exchangeability" had no significant impact on the Group's unaudited condensed consolidated financial statements[41](index=41&type=chunk) [4. Revenue and Segment Information](index=22&type=section&id=4.%20%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's revenue primarily derives from services and product sales, with a single operating segment due to the integrated assessment of business performance under the full-scenario AI strategy | Nature of Goods and Services | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Project-based Development Services | 914,902 | 1,125,174 | | Outsourcing Services | 7,238,584 | 6,418,172 | | Other Services | 94,746 | 104,574 | | Sales of Software and Hardware Products | 258,410 | 278,263 | | Total Revenue | 8,506,642 | 7,926,183 | - The Group has only one operating segment and is not required to provide any segment information, as it has reshaped its organizational structure and evaluates business performance as an integrated business[43](index=43&type=chunk) [5. Finance Costs](index=23&type=section&id=5.%20%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) The Group's finance costs for the first half of 2025 totaled RMB 61.329 million, primarily comprising interest on borrowings and lease liabilities, showing a decrease from the prior year | Finance Cost Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Interest on Borrowings | 58,420 | 96,377 | | Interest on Lease Liabilities | 2,910 | 3,460 | | Total | 61,329 | 99,837 | [6. Taxation](index=23&type=section&id=6.%20%E7%A8%85%E9%A0%85) The Group's tax expense for the first half of 2025 was RMB 33.915 million, mainly including PRC corporate income tax, other taxes, and deferred tax, representing a significant increase year-on-year | Tax Expense Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | PRC Corporate Income Tax | 21,450 | 8,281 | | Others | 3,495 | 2,200 | | Deferred Tax | 8,970 | – | | Total | 33,915 | 10,481 | [7. Dividends](index=23&type=section&id=7.%20%E8%82%A1%E6%81%AF) The company declared a final dividend of HKD 0.0533 per ordinary share for 2024, but the Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Company declared a final dividend of **HKD 0.0533 per ordinary share** for the year ended December 31, 2024, payable on June 23, 2025, from the share premium account[45](index=45&type=chunk) - The Board resolved **not to declare** an interim dividend for the six months ended June 30, 2025[46](index=46&type=chunk) [8. Earnings Per Share](index=24&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This note provides data for calculating basic and diluted earnings per share attributable to ordinary equity holders, with basic EPS at RMB 0.1264 and diluted EPS at RMB 0.1205 for the first half of 2025 | Indicator | 2025 H1 (RMB thousand/Number of Shares) | 2024 H1 (RMB thousand/Number of Shares) | | :--- | :--- | :--- | | Profit for Calculating Basic and Diluted EPS | 315,563 | 285,720 | | Weighted Average Number of Ordinary Shares for Basic EPS | 2,497,482,058 | 2,614,104,739 | | Potentially Dilutive Ordinary Shares (Share Award Scheme) | 120,893,564 | 92,010,310 | | Weighted Average Number of Ordinary Shares for Diluted EPS | 2,618,375,622 | 2,706,115,049 | [9. Trade and Other Receivables](index=24&type=section&id=9.%20%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E8%B3%87%E6%AC%BE) As of June 30, 2025, total trade and other receivables amounted to RMB 7.971 billion, with trade receivables (net of allowance) at RMB 7.131 billion, and credit terms ranging from 30 to 180 days | Receivables Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (net of allowance) | 7,130,716 | 5,998,723 | | Advances to Suppliers | 488,169 | 205,284 | | Deposits, Prepayments and Other Receivables (net of allowance) | 352,343 | 260,494 | | Total | 7,971,228 | 6,464,501 | | Trade Receivables Aging Analysis | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 4,726,848 | 4,243,934 | | Between 91 and 180 days | 813,408 | 711,423 | | Between 181 and 365 days | 1,026,989 | 647,626 | | Between 1 and 2 years | 563,471 | 395,740 | | Total | 7,130,716 | 5,998,723 | - The Group's credit period ranges from **30 to 180 days**, and it assesses the credit quality of potential customers and determines credit limits for each customer[49](index=49&type=chunk) [10. Trade and Other Payables](index=25&type=section&id=10.%20%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE) As of June 30, 2025, total trade and other payables were RMB 1.845 billion, with an average credit period of 90 days for purchases, and the Group maintains financial risk management policies | Payables Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 802,186 | 930,191 | | Other Payables | 1,043,081 | 1,045,822 | | Total | 1,845,267 | 1,976,013 | | Trade Payables Aging Analysis | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 174,710 | 520,624 | | Between 91 and 180 days | 96,424 | 111,743 | | Between 181 and 365 days | 315,028 | 126,724 | | Between 1 and 2 years | 84,020 | 77,046 | | Over 2 years | 132,004 | 94,054 | | Total | 802,186 | 930,191 | - The average credit period for purchases of goods is **90 days**, and the Group has established financial risk management policies to ensure sufficient working capital to settle debts as they fall due[50](index=50&type=chunk) [11. Borrowings](index=26&type=section&id=11.%20%E5%80%9F%E8%B2%B8) As of June 30, 2025, total borrowings amounted to RMB 4.437 billion, comprising unsecured and secured bank loans, subject to financial covenants which the Group has complied with | Borrowing Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unsecured Bank Loans | 3,924,616 | 3,979,365 | | Secured Bank Loans | 512,013 | 436,732 | | Total Borrowings | 4,436,629 | 4,416,097 | | Repayable within One Year | 3,599,918 | 3,640,752 | | Amount Classified as Non-Current Liabilities | 836,711 | 775,345 | - The Group is subject to financial covenants to maintain consolidated tangible net worth of **not less than RMB 3.8 billion** and other ratio requirements, which the Group has complied with during the reporting period[54](index=54&type=chunk) - Floating rate borrowings bear interest at rates published by the People's Bank of China, with an average annual interest rate of **1.40%** (2024: 1.89%), while fixed rate borrowings bear interest at annual rates ranging from **1.15% to 2.60%**[54](index=54&type=chunk) [12. Share Capital](index=27&type=section&id=12.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized share capital was HKD 200 million, with issued and fully paid share capital of 2,732,079,358 shares, valued at RMB 123.434 million, reduced due to share cancellations | Share Capital Item | Number of Shares | Par Value (HKD) | Amount in Financial Statements (RMB thousand) | | :--- | :--- | :--- | :--- | | Authorized Share Capital | 4,000,000,000 | 200,000,000 | - | | Issued and Fully Paid as at January 1, 2024 | 2,943,299,358 | 147,164,969 | 133,029 | | Shares Cancelled | (133,546,000) | (6,677,300) | (6,057) | | Issued and Fully Paid as at June 30, 2025 | 2,732,079,358 | 136,603,969 | 123,434 | [13. Capital Commitments](index=28&type=section&id=13.%20%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, capital expenditures contracted but not provided for totaled RMB 381.020 million, primarily for property, plant, and equipment construction, with further commitments for investments in entities | Capital Commitment Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 5,237 | 17,058 | | Construction of Property, Plant and Equipment | 375,783 | 438,150 | | Total Capital Expenditure Contracted but Not Provided For | 381,020 | 455,208 | | Commitments for Further Capital Contributions to Investment Entities | 248,008 | 269,767 | [14. Related Party Transactions](index=29&type=section&id=14.%20%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93) The Group engaged in IT outsourcing, IT solution, and other service transactions with related parties during the first half of 2025, which the directors consider to be on normal commercial terms | Type of Transaction | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | IT Outsourcing Services Provided by the Group | 19,589 | 4,604 | | IT Solution Services Provided by the Group | 2,712 | 2,388 | | Other Services Provided by the Group | 424 | 1,801 | - The Directors believe that the above transactions were conducted on **normal commercial terms** in the ordinary course of the Company's business[56](index=56&type=chunk) [15. Employees and Other Information](index=29&type=section&id=15.%20%E5%83%B1%E5%93%A1%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) Employee remuneration for the first half of 2025 was approximately RMB 7.011 billion, including directors' emoluments, with intangible asset amortization and depreciation expenses also reported | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Employee Remuneration | 7,010,805 | 6,526,599 | | Directors' Emoluments (included in Employee Remuneration) | 18,437 | 22,389 | | Amortization Expense of Intangible Assets | 52,363 | 44,638 | | Depreciation | 101,796 | 130,436 | [Corporate Governance and Other Information](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers the company's corporate governance practices, directors' securities transactions, share interests, share incentive schemes, and major shareholders [Code on Corporate Governance Practices](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F%E5%AE%88%E5%89%87) The company generally complied with the Corporate Governance Code, with deviations noted regarding independent non-executive directors' attendance at AGM and the combined roles of Chairman and CEO - The Company has complied with the Corporate Governance Code as set out in Appendix C1 to the Listing Rules, with two deviations noted[58](index=58&type=chunk) - Three independent non-executive directors and two non-executive directors were **unable to attend** the Annual General Meeting held on May 20, 2025, deviating from Code Provision C.1.6[58](index=58&type=chunk) - Dr. Chen Yuhong holds both the roles of Chairman and Chief Executive Officer, deviating from Code Provision C.2.1, an arrangement the Board believes is **beneficial to the Group's business prospects**[59](index=59&type=chunk) [Directors' Securities Transactions](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E4%B9%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The company adopted the Model Code for Securities Transactions by Directors, and all directors confirmed full compliance for the year ended June 30, 2025 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its code of conduct for directors' securities transactions[60](index=60&type=chunk) - All Directors confirmed their **full compliance** with the required standards set out in the Model Code for Securities Transactions by Directors for the year ended June 30, 2025[60](index=60&type=chunk) [Directors' Interests in Shares](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A) As of June 30, 2025, several directors held long positions in the company's shares, including Dr. Chen Yuhong, Dr. He Ning, Dr. Tang Zhenming, Dr. Zhang Yaqin, and Mr. Yang Debin, partly from vested share awards | Name | Capacity | Number of Issued Ordinary Shares Held | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | Chen Yuhong | Beneficial owner, interest through controlled corporation, founder of discretionary trust and beneficiary of trust | 315,488,861 | 11.55% | | He Ning | Beneficial owner and beneficiary of trust | 6,000,000 | 0.22% | | Tang Zhenming | Beneficial owner and beneficiary of trust | 24,891,765 | 0.91% | | Zhang Yaqin | Beneficial owner | 250,000 | 0.01% | | Yang Debin | Beneficial owner and beneficiary of trust | 1,000,000 | 0.04% | - Dr. Chen Yuhong had **1,650,000 awarded shares** vested and transferred in April 2025 during the reporting period[65](index=65&type=chunk) - Dr. Tang Zhenming had **576,000 awarded shares** vested and transferred in April 2025 during the reporting period[65](index=65&type=chunk) [Share Incentive Scheme](index=33&type=section&id=%E8%82%A1%E4%BB%BD%E6%BF%80%E5%8B%B5%E8%A8%88%E5%88%83) The company's 2018 Share Award Scheme aims to recognize employee contributions and retain talent, with 27.008 million and 142.380 million awarded shares from 2020 and 2023 respectively remaining unvested as of June 30, 2025 - The Share Award Scheme aims to recognize employees' contributions and provide incentives for them to remain with the Group for its continued operation and development, as well as to attract suitable personnel to drive the Group's further growth[66](index=66&type=chunk) - As of June 30, 2025, **27,008,000 awarded shares** granted on June 1, 2020, remained unvested, representing **0.99%** of the Company's issued share capital[67](index=67&type=chunk) - As of June 30, 2025, **142,380,000 awarded shares** granted on August 30, 2023, remained unvested, representing **5.21%** of the Company's issued share capital[67](index=67&type=chunk) - As of June 30, 2025, **230,662,326 shares** of the Company were held by the independent trustee of the Share Award Scheme, representing **8.44%** of the Company's issued ordinary shares[70](index=70&type=chunk) [Directors' Rights to Acquire Shares](index=35&type=section&id=%E8%91%A3%E4%BA%8B%E6%94%B6%E8%B3%BC%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E5%88%A9) For the six months ended June 30, 2025, no directors were granted any options to subscribe for company shares, nor did any directors possess any rights to acquire company shares, other than those disclosed - For the six months ended June 30, 2025, **no options** to subscribe for shares of the Company were granted to any Directors, other than those disclosed above[71](index=71&type=chunk) - As of June 30, 2025, **no Directors possessed any rights** to subscribe for shares of the Company, other than those disclosed above[71](index=71&type=chunk) [Required Standard of Securities Transactions by Directors](index=35&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E8%A6%8F%E5%AE%9A%E6%A8%99%E6%BA%96) The company adopted a code of conduct for directors' securities transactions no less exacting than the Model Code, and all directors confirmed compliance for the year ended June 30, 2025 - The Company has adopted a code of conduct for directors' securities transactions with terms **no less exacting** than the required standard of dealings set out in the Model Code for Securities Transactions by Directors[72](index=72&type=chunk) - Following specific enquiries of all Directors, the Directors have **complied** with the required standard of dealings and the code of conduct for directors' securities transactions for the year ended June 30, 2025[72](index=72&type=chunk) [Major Shareholders](index=36&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1) As of June 30, 2025, major shareholders (excluding directors or chief executives) included Bank of Communications Trustee Limited holding 9.20% and UBS Group AG holding 5.09% of the company's shares | Name | Nature of Interest | Approximate Number of Shares | Approximate Percentage of Total Ordinary Share Capital | | :--- | :--- | :--- | :--- | | Bank of Communications Trustee Limited | Trust | 251,368,914 | 9.20% | | UBS Group AG | Interest in controlled corporation | 138,992,423 | 5.09% | - Bank of Communications Trustee Limited holds shares as the **trustee of the Share Award Scheme**[76](index=76&type=chunk) - UBS Group AG is deemed to be interested in the Company's shares held by its wholly-owned subsidiaries[76](index=76&type=chunk) [Competing Interests](index=36&type=section&id=%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A) As of June 30, 2025, no directors, management shareholders, or their associates had any interests in businesses competing or potentially competing with the Group's operations - As of June 30, 2025, **none of the Directors**, management shareholders, or their respective associates had any interests in any business that competes or is likely to compete with the Group's business[75](index=75&type=chunk) [Audit Committee](index=37&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, established in 2003 and comprising three independent non-executive directors, reviewed the Group's interim results for the six months ended June 30, 2025, and found them compliant with accounting standards and Listing Rules - The primary responsibilities of the Audit Committee are to **review and supervise** the Group's financial reporting process and internal control systems[77](index=77&type=chunk) - The Audit Committee comprises three independent non-executive directors: Professor Mo Lai Lan (Chairperson), Dr. Lai Kwun Wing, and Mr. Yang Debin, JP[77](index=77&type=chunk) - The Audit Committee has reviewed the Group's interim results for the six months ended June 30, 2025, and is of the opinion that they were prepared in accordance with applicable accounting standards and in compliance with the Listing Rules and statutory requirements, with **adequate disclosures** made[77](index=77&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=37&type=section&id=%E8%B3%BC%E5%9B%9E%E3%80%81%E8%B4%96%E5%9B%9E%E6%88%96%E5%87%BA%E5%94%AE%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities - For the six months ended June 30, 2025, **neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities**[78](index=78&type=chunk) [Sufficiency of Public Float](index=37&type=section&id=%E5%85%85%E8%B6%B3%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) Based on publicly available information and directors' knowledge, the company maintained a sufficient public float throughout the six months ended June 30, 2025 - The Company maintained a **sufficient public float** throughout the six months ended June 30, 2025, based on information publicly available and within the knowledge of the Directors[79](index=79&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Maoyan Entertainment 貓眼娛樂 （於開曼群島註冊成立的有限公司） （股份代號：1896） 截 至2025年6月30日止六個月的中期業績公告 董事會欣然宣佈本集團截至2025年6月30日止六個月的未經審核綜合業績。該等 業績已經由審核委員會連同本公司管理層及核數師審閱。 表現摘要 | | 截 至6月30日止六個月 | | | | --- | --- | --- | --- | | | 2025年 | 2024年 | 同比變動 | | | 人民幣百萬元 | 人民幣百萬元 | % | | | （未經審核） | （未經審核） | | | 收 益 | 2,472.2 | 2,170.9 | 13.9 | | 毛 利 | 936.5 | 1,156.2 | (19.0) | | 經營溢利 | 261.1 | 406.9 | (35.8) | | 期內溢利 | 178.5 | 284.8 | (3 ...

[Report Overview](index=1&type=section&id=Report%20Overview) [GEM Market Features and Disclaimer](index=2&type=section&id=1.1%20GEM%20Market%20Features%20and%20Disclaimer) This section outlines the positioning of the GEM market of the Stock Exchange of Hong Kong, noting its provision of listing opportunities for small and medium-sized companies, accompanied by higher investment risks and market volatility - The GEM market provides a listing platform for small and medium-sized companies, entailing **higher investment risks** and potential for **significant market volatility** in securities[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the contents of this report, make no representation as to its accuracy or completeness, and accept no liability whatsoever for any loss arising from or in reliance upon the whole or any part of the contents of this report[2](index=2&type=chunk) - The Company's directors confirm that the information contained in this report is **accurate and complete** in all material respects and is not misleading or fraudulent[3](index=3&type=chunk) [Company Information](index=3&type=section&id=1.2%20Company%20Information) This section details the composition of the company's board of directors, including executive, non-executive, and independent non-executive directors, as well as members of the audit, nomination, and remuneration committees - The Board of Directors comprises **3 executive directors, 3 non-executive directors, and 3 independent non-executive directors**[4](index=4&type=chunk) - The Company Secretary is Mr. Tsang Hing Wan, and the auditor is **Ernst & Young**[4](index=4&type=chunk) - The Company's registered office is in the Cayman Islands, its principal place of business in Hong Kong is in Kwai Chung, and its **stock code is 8362**[4](index=4&type=chunk)[5](index=5&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Prospects](index=4&type=section&id=2.1%20Business%20Review%20and%20Prospects) The Group primarily engages in the processing, sale, and transportation of fresh, frozen, and cooked foods, and operates restaurants in Hong Kong - The Group primarily engages in the processing and sale of fresh, frozen, and cooked foods (including provision of transportation services) and operates restaurants in Hong Kong[6](index=6&type=chunk) - The Group holds a **55% interest** in Wing Tai Catering, a joint venture established with Wing's Global Holdings Limited, participating in the Hong Kong catering and food business[6](index=6&type=chunk) - A joint venture, Sun King Tai Limited, was established with Tin King Limited, in which the Group holds a **60% interest**, and serves as the **primary supplier of food and beverage materials** to all its restaurants, expected to enhance future sales and revenue[7](index=7&type=chunk)[8](index=8&type=chunk) [Financial Review](index=5&type=section&id=2.2%20Financial%20Review) For the six months ended June 30, 2025, the Group's revenue slightly increased, but the cost of inventories consumed and operating loss before tax significantly rose, leading to a decrease in gross profit and gross margin, and an expanded net loss for the period Key Financial Indicators Comparison for H1 2025 | Indicator | 2025 H1 (HKD Thousand) | 2024 H1 (HKD Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 55,106 | 54,172 | +1.7% | | Food Processing and Trading Revenue | 48,300 | 43,600 | +10.8% | | Restaurant Operations Revenue | 6,800 | 10,600 | -35.9% | | Cost of Inventories Consumed | 32,800 | 29,400 | +11.6% | | Operating Loss Before Tax | 2,100 | 600 | +250.0% | | Gross Profit | 22,300 | 24,800 | -10.1% | | Gross Margin | 40.5% | 45.8% | -5.3 percentage points | | Employee Benefit Expenses | 12,400 | 12,900 | -3.9% | | Net Loss for the Period | 2,200 | 800 | +175.0% | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[16](index=16&type=chunk) [Liquidity and Financial Resources](index=6&type=section&id=2.3%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's net current assets increased, cash at bank slightly decreased, and the gearing ratio remained low Liquidity and Financial Resources Overview as of June 30, 2025 | Indicator | 2025-06-30 (HKD Thousand) | 2024-12-31 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 18,600 | 14,900 | Increase 3,700 | | Cash at Bank | 11,800 | 13,200 | Decrease 1,400 | | Bank Borrowings | 2,000 | 2,200 | Decrease 200 | | Gearing Ratio | 2.2% | 2.4% | Decrease 0.2 percentage points | - The Company has **1,400,000,000 issued shares** with a par value of **HKD 0.01 per share**, and its capital structure has remained unchanged since listing[19](index=19&type=chunk) - The Group adopts **prudent financial management measures** for its treasury policy, maintaining a **robust liquidity position** during the period, with no significant contingent liabilities or capital commitments[20](index=20&type=chunk)[21](index=21&type=chunk)[24](index=24&type=chunk) - Leasehold land and buildings held for own use by the Group, with a net book value of approximately **HKD 55.6 million**, have been pledged to secure bank financing[22](index=22&type=chunk) [Employees and Remuneration Policy](index=7&type=section&id=2.4%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 73 staff, with a competitive remuneration policy offering performance-linked incentives and other benefits such as MPF, insurance, and medical compensation - As of June 30, 2025, the Group employed **73 staff** (June 30, 2024: 73 staff)[26](index=26&type=chunk) - The Group's employee remuneration scale is maintained at a **competitive level**, offering **performance-linked incentives** and other employee benefits, including MPF, insurance, and medical compensation[26](index=26&type=chunk) [Post Balance Sheet Events](index=7&type=section&id=2.5%20Post%20Balance%20Sheet%20Events) No significant events have occurred after the six months ended June 30, 2025, other than those already disclosed in this report - Save as disclosed above, no significant events have occurred after the six months ended June 30, 2025[27](index=27&type=chunk) [Directors' and Chief Executive's Interests](index=8&type=section&id=2.6%20Directors'%20and%20Chief%20Executive's%20Interests) This section discloses the interests of directors and the chief executive in the Company's shares as of June 30, 2025, where Ms. Au Hung Lin and Mr. Chung Yuk Wah hold 70% of the shares, and Ms. Au Hung Lin is the spouse of Mr. Chung Yuk Wah Directors' and Chief Executive's Interests in the Company's Shares (June 30, 2025) | Director's Name | Number of Shares | Approximate Percentage | | :--- | :--- | :--- | | Lai Ho Yin | 14,000,000 | 1.00% | | Ho Kin Wah | 28,000,000 | 2.00% | | Yu Ting Hei | 28,000,000 | 2.00% | | Au Hung Lin | 980,000,000 | 70.00% | | Chung Yuk Wah | 980,000,000 | 70.00% | - Ms. Au Hung Lin is the **spouse of Mr. Chung Yuk Wah**[28](index=28&type=chunk) - Save as disclosed, no director or chief executive of the Company had any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations[29](index=29&type=chunk) [Substantial Shareholders' Interests](index=9&type=section&id=2.7%20Substantial%20Shareholders'%20Interests) As of June 30, 2025, Kin King Ventures Limited was a substantial shareholder of the Company, holding 70% of the issued share capital Substantial Shareholders' Interests in the Company's Shares (June 30, 2025) | Shareholder Name | Number of Shares | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | | Kin King Ventures Limited | 980,000,000 | 70% | - Save as disclosed, no other person had any interests or short positions in the shares or underlying shares of the Company or any of its associated corporations that were required to be entered in the register[30](index=30&type=chunk) [Share Option Scheme](index=9&type=section&id=2.8%20Share%20Option%20Scheme) The Company adopted a share option scheme on June 5, 2017, valid for ten years, but no share options have been granted since its adoption - The Company has a share option scheme, approved and adopted by shareholders on **June 5, 2017**, with a **ten-year validity period**[31](index=31&type=chunk) - **No share options have been granted** under the share option scheme since its adoption[32](index=32&type=chunk) [Directors' Rights to Acquire Shares](index=9&type=section&id=2.9%20Directors'%20Rights%20to%20Acquire%20Shares) At no time during the six months ended June 30, 2025, were any rights to acquire benefits by means of the acquisition of shares or debentures of the Company granted to or exercised by the directors or their respective spouses or children under 18 years of age - At no time during the six months ended June 30, 2025, were any rights to acquire benefits by means of the acquisition of shares or debentures of the Company granted to or exercised by the directors or their respective spouses or children under 18 years of age[33](index=33&type=chunk) [Purchase, Sale or Redemption of Securities](index=9&type=section&id=2.10%20Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities[34](index=34&type=chunk) [Other Information](index=10&type=section&id=Other%20Information) [Compliance with Model Code for Securities Transactions by Directors](index=10&type=section&id=3.1%20Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a model code for securities transactions by directors, no less exacting than that set out in the GEM Listing Rules, and all directors have confirmed compliance with this code during the six months ended June 30, 2025 - The Company has adopted a model code for securities transactions by directors, with terms **no less exacting** than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[35](index=35&type=chunk) - Following specific enquiries made to all directors, all directors have confirmed their **compliance** with the required standard of dealings and the model code for securities transactions by directors adopted by the Company for the six months ended June 30, 2025[35](index=35&type=chunk) [Competing Interests](index=10&type=section&id=3.2%20Competing%20Interests) As of June 30, 2025, no director, substantial shareholder, or their respective associates had any interest in a business that directly or indirectly competes or may compete with the Group's business - As of June 30, 2025, no director, substantial shareholder, or their respective associates had any interest in a business that directly or indirectly competes or may compete with the Group's business[36](index=36&type=chunk) [Corporate Governance](index=10&type=section&id=3.3%20Corporate%20Governance) The Company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules, with an exception regarding the engagement of the company secretary - The Company has adopted the principles and code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules and has **complied with them throughout the review period**, save for the engagement of the company secretary[37](index=37&type=chunk) - The Company has appointed Mr. Lai Ho Yin, an executive director, as the contact person for the company secretary, Mr. Tsang Hing Wan, to ensure prompt access to the Group's developments and provision of professional advice[37](index=37&type=chunk) [Audit Committee](index=11&type=section&id=3.4%20Audit%20Committee) The Company has established an Audit Committee in compliance with the GEM Listing Rules, comprising three independent non-executive directors - The Company has established an Audit Committee in compliance with the GEM Listing Rules, comprising **three independent non-executive directors**: Mr. Lo Sun Tong (Chairman), Mr. Chow Chun Wai, and Mr. Lam Lai Kiu[38](index=38&type=chunk) - The Audit Committee has **reviewed this report** and considers that it complies with applicable accounting standards and has made **adequate disclosures**[38](index=38&type=chunk) [Board Approval](index=11&type=section&id=3.5%20Board%20Approval) This report was approved and authorized for issue by the Board of Directors on August 8, 2025 - The condensed consolidated financial statements were **approved and authorized for issue by the Board** on August 8, 2025[39](index=39&type=chunk) [Condensed Consolidated Financial Statements](index=12&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=12&type=section&id=4.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group recorded revenue of HKD 55.1 million, but due to increased cost of inventories consumed and operating expenses, the operating loss before tax expanded to HKD 2.142 million, resulting in a net loss for the period of HKD 2.24 million and basic loss per share of HKD 0.17 cents Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30, 2025) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 55,106 | 54,172 | | Cost of Inventories Consumed | (32,813) | (29,443) | | Operating Loss Before Tax | (2,142) | (648) | | Loss for the Period | (2,240) | (807) | | Loss Attributable to Owners of the Company | (2,387) | (414) | | Basic Loss Per Share (HK Cents) | (0.17) | (0.03) | [Condensed Consolidated Statement of Comprehensive Income](index=13&type=section&id=4.2%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive income for the period was a loss of HKD 933 thousand, a deterioration from the previous year's income of HKD 489 thousand, primarily due to increased loss for the period, partially offset by a net revaluation surplus Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30, 2025) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Loss for the Period | (2,240) | (807) | | Net Revaluation Surplus | 1,565 | 1,552 | | Total Comprehensive Income for the Period | (933) | 489 | | Total Comprehensive Income Attributable to Owners of the Company | (1,080) | 882 | [Condensed Consolidated Statement of Financial Position](index=14&type=section&id=4.3%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total non-current assets slightly decreased to HKD 78.052 million, net current assets remained stable at HKD 18.585 million, while net assets and equity attributable to owners of the Company both slightly decreased Key Data from Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | 2025-06-30 (HKD Thousand) | 2024-12-31 (HKD Thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 78,052 | 79,188 | | Total Current Assets | 32,484 | 32,859 | | Total Current Liabilities | 13,899 | 14,216 | | Net Current Assets | 18,585 | 18,643 | | Net Assets | 87,283 | 88,216 | | Equity Attributable to Owners of the Company | 89,718 | 90,798 | [Condensed Consolidated Statement of Changes in Equity](index=16&type=section&id=4.4%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the Company decreased from HKD 90,798 thousand at the beginning of the period to HKD 89,718 thousand at the end, primarily due to a loss for the period of HKD 2,387 thousand, partially offset by a net revaluation surplus in other comprehensive income Changes in Equity Attributable to Owners of the Company (As of June 30, 2025) | Indicator | 2025-01-01 (HKD Thousand) | Loss for the Period (HKD Thousand) | Other Comprehensive Income for the Period (HKD Thousand) | 2025-06-30 (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 90,798 | (2,387) | 1,307 | 89,718 | [Condensed Consolidated Statement of Cash Flows](index=17&type=section&id=4.5%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash flows from operating activities significantly decreased to HKD 1.327 million, cash outflows from investing activities increased, and cash outflows from financing activities decreased, ultimately leading to a net decrease in cash and cash equivalents of HKD 1.346 million at period-end Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2025) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 1,327 | 8,024 | | Net Cash Flows Used in Investing Activities | (443) | (86) | | Net Cash Flows Used in Financing Activities | (2,230) | (4,109) | | Net Increase/(Decrease) in Cash and Cash Equivalents | (1,346) | 3,829 | | Cash and Cash Equivalents at End of Period | 11,809 | 14,112 | [Notes to the Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Company Information (Notes)](index=19&type=section&id=5.1%20Company%20Information%20(Notes)) This section discloses the company's place of incorporation, principal activities, ultimate holding company, functional currency, and the unaudited status of the financial information - The Company is an exempted company incorporated in the Cayman Islands under the Companies Law of the Cayman Islands, with its principal activities being **investment holding, food processing and trading, and restaurant operations**[48](index=48&type=chunk) - The Directors consider the Company's ultimate holding company to be **Kin King Ventures Limited**[48](index=48&type=chunk) - The condensed consolidated financial information is presented in **Hong Kong Dollars**, the Company's functional currency, and is **unaudited**[49](index=49&type=chunk)[50](index=50&type=chunk) [Basis of Preparation](index=19&type=section&id=5.2%20Basis%20of%20Preparation) The condensed consolidated financial information is prepared in accordance with the applicable disclosure requirements of the GEM Listing Rules and Hong Kong Accounting Standards issued by the HKICPA, using the historical cost convention, except for leasehold land and buildings held for own use, classified as right-of-use assets and property, plant and equipment, which are measured at fair value - The condensed consolidated financial information has been prepared in accordance with the applicable disclosure requirements of the GEM Listing Rules and **Hong Kong Accounting Standards** ("HKASs") issued by the Hong Kong Institute of Certified Public Accountants[51](index=51&type=chunk) - The condensed consolidated financial information has been prepared on the **historical cost basis**, except for leasehold land and buildings held for own use, classified as right-of-use assets and property, plant and equipment respectively, which are measured at **fair value**[51](index=51&type=chunk) [Accounting Policies](index=20&type=section&id=5.3%20Accounting%20Policies) The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial information are consistent with those used for the Group's financial information for the year ended December 31, 2024 - The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial information are **consistent** with those used for the Group's financial information for the year ended December 31, 2024[52](index=52&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards has **no significant impact** on the results and financial position[53](index=53&type=chunk) [Segment Information](index=20&type=section&id=5.4%20Segment%20Information) The Group has two reportable operating segments: food processing and trading (including transportation services) and restaurant operations - The Group is organised into **two reportable operating segments** based on products and services: food processing and trading (including provision of transportation services) and restaurant operations[54](index=54&type=chunk)[56](index=56&type=chunk) Segment Revenue and Results (For the six months ended June 30, 2025) | Segment | 2025 Revenue (HKD Thousand) | 2024 Revenue (HKD Thousand) | 2025 Results (HKD Thousand) | 2024 Results (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Food Processing and Trading | 48,289 | 43,564 | (2,561) | (2,960) | | Restaurant Operations | 6,817 | 10,608 | 324 | 2,143 | | Total | 55,106 | 54,172 | (2,237) | (817) | - No further analysis of geographical information is presented as **all the Group's revenue from external customers is derived from Hong Kong**, and **all non-current assets are located in Hong Kong**[58](index=58&type=chunk) - **Customer A** is a major customer of the food processing and trading segment, contributing **HKD 22,171 thousand in revenue** for the six months ended June 30, 2025[58](index=58&type=chunk) [Revenue](index=22&type=section&id=5.5%20Revenue) For the six months ended June 30, 2025, the Group's total revenue from contracts with customers was HKD 55.1 million Revenue Breakdown (For the six months ended June 30, 2025) | Type of Goods or Services | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Sales of Food | 48,249 | 43,534 | | Revenue from Provision of Transportation Services | 40 | 30 | | Revenue from Restaurant Operations | 6,817 | 10,608 | | Total | 55,106 | 54,172 | - Performance obligations for **food sales and restaurant operations** are satisfied at a **point in time** upon delivery of products or completion of services, while performance obligations for **provision of transportation services** are satisfied **over time**[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [Loss Before Tax](index=25&type=section&id=5.6%20Loss%20Before%20Tax) For the six months ended June 30, 2025, the Group's loss before tax was HKD 2.24 million, primarily impacted by increased cost of inventories consumed and total depreciation, while employee benefit expenses and bank interest income decreased Key Components of Loss Before Tax (For the six months ended June 30, 2025) | Indicator | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Cost of Inventories Consumed | 32,813 | 29,766 | | Total Depreciation | 3,338 | 3,107 | | Total Employee Benefit Expenses | 12,425 | 12,879 | | Bank Interest Income | (47) | (95) | [Income Tax](index=26&type=section&id=5.7%20Income%20Tax) For the six months ended June 30, 2025, the Group recorded no income tax expense or credit - For the six months ended June 30, 2025, **no income tax expense or credit** was recorded[65](index=65&type=chunk) - Hong Kong profits tax is provided at **16.5%** on the estimated assessable profits arising in Hong Kong, with the first **HKD 2,000,000** for qualifying subsidiaries taxed at a rate of **8.25%** under the two-tiered profits tax rate regime[64](index=64&type=chunk) [Dividends](index=26&type=section&id=5.8%20Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does **not recommend the payment of an interim dividend** for the six months ended June 30, 2025 (2024: nil)[65](index=65&type=chunk) [Earnings/(Loss) Per Share](index=27&type=section&id=5.9%20Earnings%2F(Loss)%20Per%20Share) For the six months ended June 30, 2025, the basic loss per share attributable to owners of the Company was HKD 0.17 cents, an increase from the prior year Earnings/(Loss) Per Share (For the six months ended June 30, 2025) | Indicator | 2025 (HK Cents) | 2024 (HK Cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (0.17) | (0.03) | - The weighted average number of ordinary shares in issue used for calculating basic loss per share was **1,400,000 thousand shares**[67](index=67&type=chunk) - No diluted adjustment was made to the basic loss per share presented for the six months ended June 30, 2025 and 2024, as the Group had **no potentially dilutive ordinary shares** in issue during these periods[67](index=67&type=chunk) [Trade Receivables](index=28&type=section&id=5.10%20Trade%20Receivables) As of June 30, 2025, the Group's net book value of trade receivables was HKD 11.568 million, primarily from third-party customers Net Book Value and Ageing Analysis of Trade Receivables (As of June 30, 2025) | Indicator | 2025-06-30 (HKD Thousand) | 2024-12-31 (HKD Thousand) | | :--- | :--- | :--- | | Net Book Value | 11,568 | 11,795 | | Of which: Third-party Customers | 10,613 | 11,345 | | Related Companies | 1,367 | 862 | | Impairment | (412) | (412) | | Ageing: Within 1 month | 9,707 | 6,851 | | 1 to 2 months | 1,495 | 3,828 | | 2 to 3 months | 366 | 1,116 | - The Group's trade terms with customers are primarily on a credit basis, with credit periods generally ranging from **30 to 45 days**[68](index=68&type=chunk) - The Group strives to maintain **strict control over outstanding receivables** to minimize credit risk and holds no collateral or other credit enhancements for its trade receivables balances[68](index=68&type=chunk) [Balances with Related Parties and Ultimate Holding Company](index=29&type=section&id=5.11%20Balances%20with%20Related%20Parties%20and%20Ultimate%20Holding%20Company) Balances with related companies are non-trade in nature, unsecured, interest-free, and repayable on demand - Balances with related companies are **non-trade in nature, unsecured, interest-free, and repayable on demand**[69](index=69&type=chunk) [Trade and Bills Payables](index=29&type=section&id=5.12%20Trade%20and%20Bills%20Payables) As of June 30, 2025, the Group's total trade and bills payables amounted to HKD 4.179 million, primarily to third-party suppliers, with settlement terms typically ranging from 30 to 60 days Total Trade and Bills Payables and Ageing Analysis (As of June 30, 2025) | Indicator | 2025-06-30 (HKD Thousand) | 2024-12-31 (HKD Thousand) | | :--- | :--- | :--- | | Total Trade and Bills Payables | 4,179 | 3,866 | | Of which: Third-party Suppliers | 4,179 | 3,327 | | Related Companies | – | 539 | | Ageing: Within 1 month | 4,179 | 3,866 | - Trade payables are **non-interest bearing** and usually have settlement periods of **30 to 60 days**[69](index=69&type=chunk) [Interest-bearing Bank Borrowings](index=30&type=section&id=5.13%20Interest-bearing%20Bank%20Borrowings) As of June 30, 2025, the Group's total interest-bearing bank borrowings amounted to HKD 2.014 million, all of which are secured loans with an effective interest rate of prime rate minus 3.0%, maturing between July 2025 and 2030 Interest-bearing Bank Borrowings (As of June 30, 2025) | Type | Effective Interest Rate (%) | Maturity Date | 2025-06-30 (HKD Thousand) | 2024-12-31 (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Current Bank Loans | Prime rate minus 3.0 | July 2025 to June 2026 | 376 | 372 | | Non-Current Bank Loans | Prime rate minus 3.0 | July 2026 to 2030 | 1,638 | 1,827 | | **Total** | | | **2,014** | **2,199** | - All bank loans are **secured**[70](index=70&type=chunk) [Share Capital](index=30&type=section&id=5.14%20Share%20Capital) As of June 30, 2025, the Company's authorised share capital was HKD 100,000 thousand, with issued and fully paid share capital of HKD 14,000 thousand, corresponding to 1,400,000,000 ordinary shares of HKD 0.01 each Share Capital Details (As of June 30, 2025) | Type | Number of Shares | Par Value (HKD/Share) | Amount (HKD Thousand) | | :--- | :--- | :--- | :--- | | Authorised Ordinary Shares | 10,000,000,000 | 0.01 | 100,000 | | Issued and Fully Paid Ordinary Shares | 1,400,000,000 | 0.01 | 14,000 | [Contingent Liabilities](index=31&type=section&id=5.15%20Contingent%20Liabilities) As of the end of the reporting period, the Group had no significant contingent liabilities - As of the end of the reporting period, the Group had **no significant contingent liabilities**[72](index=72&type=chunk) [Commitments](index=31&type=section&id=5.16%20Commitments) As of the end of the reporting period, the Group had no capital commitments - As of the end of the reporting period, the Group had **no capital commitments**[73](index=73&type=chunk) [Related Party Transactions](index=31&type=section&id=5.17%20Related%20Party%20Transactions) This section discloses significant related party transactions between the Group and several directors and their associates (e.g., Yau Hing, Wing Chi, Wing's Group), including sales of goods, purchases, and transportation service revenue, all conducted on mutually agreed terms - The Group identified Ms. Yeung Suk Ying, Yau Hing, Yau Yip Property Investment Limited, Guangzhou Geyun, Wing Chi, Wing's Holdings Limited and its subsidiaries as **related parties**[74](index=74&type=chunk) Significant Related Party Transactions (For the six months ended June 30, 2025) | Related Party | Type of Transaction | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | :--- | | Yau Hing | Sales of Goods | 3,930 | 2,787 | | Yau Hing | Transportation Service Revenue | 40 | 30 | | Wing Chi | Sales of Goods | 706 | – | | Wing Chi | Purchases of Goods | 2,878 | 875 | | Wing's Group | Sales of Goods | 3,524 | 2,980 | - Transactions with related companies were conducted on **mutually agreed terms and conditions**[77](index=77&type=chunk) - Total remuneration for the Group's key management personnel amounted to **HKD 2.83 million** (2024: HKD 2.498 million)[77](index=77&type=chunk) [Approval of Condensed Consolidated Financial Statements](index=33&type=section&id=5.18%20Approval%20of%20Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 8, 2025 - The condensed consolidated financial statements were **approved and authorized for issue by the Board** on August 8, 2025[78](index=78&type=chunk)

[Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) [Interim Results Summary Table](index=1&type=section&id=Interim%20Results%20Summary%20Table) For the six months ended June 30, 2025, the company's revenue decreased by 20.8% year-on-year to RMB 821.8 million, but gross profit margin significantly increased by 6.2 percentage points to 52.2%. Loss for the period narrowed substantially by 78.3%, and adjusted net profit of RMB 10.3 million was achieved, turning around from an adjusted net loss of RMB 160.7 million in the prior year period | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 821,752 | 1,037,343 | (20.8) | | Gross Profit | 429,080 | 477,322 | (10.1) | | Gross Profit Margin (%) | 52.2 | 46.0 | 6.2 percentage points | | Loss for the Period | (35,429) | (163,353) | (78.3) | | Adjusted Net Profit/(Loss) for the Period | 10,347 | (160,690) | (106.4) | | Adjusted Net Profit/(Loss) Margin (%) | 1.3 | (15.5) | 16.8 percentage points | - The company achieved its first adjusted net profit of **RMB 10.3 million**, successfully turning around losses, with an adjusted net profit margin of **1.3%**[3](index=3&type=chunk) [Management Discussion and Analysis](index=2&type=section&id=Management%20Discussion%20and%20Analysis) [Overall Strategy and Performance Overview](index=2&type=section&id=Overall%20Strategy%20and%20Performance%20Overview) Keep successfully advanced its dual strategy of AI-driven platform architecture transformation and operational turnaround in H1 2025, achieving adjusted net profit by streamlining non-core businesses, optimizing product structure, and enhancing gross margin and operational efficiency for long-term sustainable development - The company focused on two strategic directions: advancing AI-driven platform architecture transformation and achieving an operational turnaround[6](index=6&type=chunk) - In H1 2025, the company completed AI infrastructure reconstruction, launched the basic AI coach, and achieved adjusted net profit, marking a profitability inflection point[6](index=6&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) - Total revenue contracted by **20.8%** to **RMB 821.8 million** year-on-year, primarily due to the company's strategic focus on AI and active streamlining of non-core, low-efficiency businesses[9](index=9&type=chunk) - Gross profit margin increased by **6.2 percentage points** year-on-year to **52.2%** for the period, benefiting from improved gross margins in online, consumer goods, and advertising businesses[9](index=9&type=chunk) [Key Operating Data](index=2&type=section&id=Key%20Operating%20Data) Despite a decrease in average monthly active users and subscribers, membership penetration and average monthly revenue per MAU increased, reflecting the company's strategic shift to prioritize user activity and retention over scale expansion before the AI product system is fully developed | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Average Monthly Active Users (thousands) | 22,486 | 29,660 | | Average Monthly Revenue Per Monthly Active User (RMB) | 6.1 | 5.8 | | Average Monthly Subscribing Members (thousands) | 2,787 | 3,282 | | Membership Penetration | 12.4% | 11.1% | - Membership penetration reached **12.4%**, an increase from **11.1%** in the same period of 2024[10](index=10&type=chunk) - Average monthly revenue per monthly active user increased year-on-year to **RMB 6.1**, a **4.5%** increase from **RMB 5.8** in the prior year period[10](index=10&type=chunk) - Customer acquisition costs decreased by approximately **60%** year-on-year, reflecting the company's optimized marketing efficiency[10](index=10&type=chunk) [Reshaping Online Fitness Services: Centered on AI-Powered and Data-Driven Coaching Services](index=4&type=section&id=Reshaping%20Online%20Fitness%20Services%3A%20Centered%20on%20AI-Powered%20and%20Data-Driven%20Coaching%20Services) Keep is transforming from a content-driven platform to an AI-driven, data-centric fitness intelligent entity, achieving key AI milestones in H1 2025, including Multi-Agent System (MAS) implementation, AI coach core function iteration, and AIGC workflow innovation, aiming to provide personalized, intelligent, and scientific fitness experiences - Keep is transforming from a content-driven platform to an AI-driven, data-centric fitness intelligent entity[12](index=12&type=chunk) - In H1 2025, three major AI milestones were completed: Multi-Agent System (MAS) implementation, AI coach core function iteration, and Artificial Intelligence Generated Content (AIGC) workflow innovation[12](index=12&type=chunk) [AI Milestones and Core Functions](index=4&type=section&id=AI%20Milestones%20and%20Core%20Functions) The company successfully deployed MAS infrastructure, integrated large language models with fitness tools, and launched the trial version of its first AI coach 'Kaka,' enhancing personalized training, voice guidance, diet tracking, data analysis, and posture assessment capabilities, while upgrading AIGC content architecture to improve course production efficiency and personalization - Achieved Multi-Agent System (MAS) infrastructure construction, integrating large language models with full-platform fitness tool services, and optimizing the self-developed vertical model Kinetic.ai[13](index=13&type=chunk) - Launched the trial version of its first AI coach 'Kaka' in March 2025, offering personalized training plan generation, voice guidance, diet recording and suggestions, exercise data recording and analysis, and posture and movement assessment functions[13](index=13&type=chunk) - Through a triple upgrade of the AIGC content architecture, AI training plans were launched (covering **70%** of user needs), new course production processes and evaluation systems were established (covering **50%** of course demand points), and AI voice guidance scenarios were implemented[14](index=14&type=chunk) [Early Achievements and Outlook of AI Coach 'Kaka'](index=5&type=section&id=Early%20Achievements%20and%20Outlook%20of%20AI%20Coach%20%27Kaka%27) AI coach 'Kaka' has opened core functions to all users, showing positive early trends with over **150,000** AI core daily active users (DAU), particularly in AI diet recording, which demonstrates significant retention advantages. Future plans include a tiered coaching service matrix to drive member ARPU growth and a self-reinforcing flywheel effect for user scale, membership penetration, and commercial value growth - AI coach 'Kaka' has opened core functions to all users, with usage frequency restrictions for non-members[15](index=15&type=chunk) - According to July 2025 data, AI core daily active users (DAU) exceeded **150,000**[15](index=15&type=chunk) - The AI diet recording function covers **one-third** of AI dialogue users, with a next-day retention rate of **50%**, and has boosted the App DAU retention rate to **79%**[15](index=15&type=chunk) - Looking ahead, the company plans to launch a tiered coaching service matrix to drive growth in member Average Revenue Per User (ARPU) and achieve triple growth in user scale, membership penetration, and commercial value through a self-reinforcing flywheel effect[16](index=16&type=chunk) [Online Sports Events and Advertising Business](index=5&type=section&id=Online%20Sports%20Events%20and%20Advertising%20Business) Online sports event revenue contracted due to insufficient top-tier IP event scheduling, but the company is solidifying long-term development by optimizing operations, focusing on niche categories, and enhancing the medal event system. Advertising and other segments saw overall revenue decline due to Keepland's closure, yet advertising revenue remained stable with a significant gross margin improvement, and the K-MARS city running IP event performed strongly - Online sports event business revenue contracted, primarily due to insufficient scheduling of top-tier IP events[16](index=16&type=chunk) - The company optimized event business processes, focused on niche categories like ACG and gaming, and enhanced the medal event operating system[16](index=16&type=chunk) - Overall revenue for the advertising and other segments decreased year-on-year, mainly due to the gradual closure of Keepland operations, but advertising revenue remained stable year-on-year[17](index=17&type=chunk) - Gross profit margin for the advertising and other segments increased by **34.7 percentage points**, primarily benefiting from optimized advertising business costs and the positive impact of Keepland's closure[17](index=17&type=chunk) - The advertising business focused on building the K-MARS city running IP event, achieving increases in both advertiser industry coverage and average customer transaction value[17](index=17&type=chunk) [Consumer Goods Business](index=6&type=section&id=Consumer%20Goods%20Business) Facing consumer recovery pressure and intensified industry competition, Keep's consumer goods business drove profitability improvement through structural optimization. Revenue for the period was approximately **RMB 400 million**, with gross profit margin increasing by **3.3 percentage points** year-on-year to **34.8%**, primarily due to category structure optimization, refined channel operations, and supply chain efficiency improvements - Consumer goods business revenue was approximately **RMB 400 million**, with gross profit margin increasing by **3.3 percentage points** year-on-year to **34.8%**[19](index=19&type=chunk) - Category structure optimization: actively scaled back low-margin businesses (e.g., large home fitness equipment) and developed high-potential categories such as equipment, apparel, and wearables[19](index=19&type=chunk) - Refined channel operations: established a 'category-channel' profit and loss analysis model, focusing on improving operational capabilities on third-party e-commerce platforms like Tmall and Douyin[19](index=19&type=chunk) - Supply chain efficiency: core categories leveraged economies of scale and engineering cost reduction to deepen supply chain integration efficiency[20](index=20&type=chunk) [Category Structure Optimization](index=6&type=section&id=Category%20Structure%20Optimization) The company actively scaled back low-margin businesses in consumer goods, shifting to high-potential categories. Equipment business contributed over **50%** of revenue, enhancing competitiveness through differentiated positioning and product iteration. Apparel focused on aesthetic design, constructing all-season development capabilities. Smart wearables evolved around vertical scenarios, strengthening software differentiation. Food business advanced health-oriented product iteration and improved supply chain efficiency - Equipment business revenue contribution increased to over **50%**, enhancing competitiveness through differentiated product positioning, classic product iteration, and filling missing categories[19](index=19&type=chunk) - Apparel business improved merchandise operational capabilities, focusing on aesthetic design and building all-season product development capabilities[19](index=19&type=chunk) - Smart wearables continued to evolve around vertical scenarios, with watches focusing on advanced runner needs and bands expanding to interest-based sports users[19](index=19&type=chunk) [Refined Channel Operations and Supply Chain Efficiency](index=6&type=section&id=Refined%20Channel%20Operations%20and%20Supply%20Chain%20Efficiency) The company refined operations on third-party e-commerce platforms like Tmall and Douyin, and expanded distribution channels by building a 'category-channel' profit and loss analysis model to increase the share of high-potential emerging channels. Concurrently, it deepened supply chain integration efficiency through scale and engineering cost reductions, optimizing core category costs and enhancing overall operational efficiency and profitability - Established a 'category-channel' horizontal and vertical profit and loss analysis model, focusing on improving operational capabilities on third-party e-commerce platforms like Tmall and Douyin, and enhancing marketing efficiency[19](index=19&type=chunk) - Core categories leveraged economies of scale and engineering cost reduction to deepen supply chain integration efficiency[20](index=20&type=chunk) [Future Outlook](index=7&type=section&id=Future%20Outlook) For H2 2025, the company will simultaneously advance gross margin improvement and operational efficiency optimization strategies, and while ensuring profitability, seize key marketing windows to enhance product exposure and drive business scale recovery. This includes continuous iteration of AI coach core capabilities, enhancing consumer product strength, and focusing on AI-driven motion tracking, real-time health monitoring, and other innovative technologies through self-development and fund investments for long-term sustainable growth - In H2 2025, the company will simultaneously advance strategies for gross margin improvement and operational efficiency optimization, and while ensuring profitability, enhance product exposure to drive business scale recovery[21](index=21&type=chunk) - Continuously iterate AI coach core capabilities and strengthen exposure at key nodes to attract user return[21](index=21&type=chunk) - Enhance consumer goods business product strength, driving scale growth through precise channel expansion and increased volume in high-potential categories[21](index=21&type=chunk) - Smart wearables business will focus on long-term innovation in sports science and breakthroughs in next-generation products around AI, paying attention to AI-driven motion tracking, real-time health monitoring, and personalized training and other innovative technologies[22](index=22&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) [Revenue](index=8&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue was RMB 821.8 million, a year-on-year decrease of 20.8%, primarily due to reduced revenue from self-branded sports products and online membership and paid content, linked to the company's active streamlining of inefficient categories and decreased online sports event revenue | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 396,650 | 501,477 | (20.9) | | Online Membership and Paid Content | 337,122 | 436,996 | (22.9) | | Advertising and Other | 87,980 | 98,870 | (11.0) | | **Total** | **821,752** | **1,037,343** | **(20.8)** | - Revenue from self-branded sports products decreased by **20.9%**, primarily due to the active streamlining of inefficient categories[23](index=23&type=chunk) - Revenue from online membership and paid content decreased by **22.9%**, mainly due to reduced online sports event revenue[24](index=24&type=chunk) - Advertising and other revenue decreased by **11.0%**, primarily due to the gradual closure of Keepland operations in 2024, but advertising revenue remained stable year-on-year[24](index=24&type=chunk) [Cost of Sales](index=8&type=section&id=Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales was RMB 392.7 million, a year-on-year decrease of 29.9%, consistent with the revenue trend. Costs across all business segments significantly declined, primarily benefiting from lower inventory sales costs, supply chain optimization, reduced online sports event costs, and cost savings from Keepland's closure | Cost Source | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 258,653 | 343,301 | (24.7) | | Online Membership and Paid Content | 96,609 | 140,368 | (31.2) | | Advertising and Other | 37,410 | 76,352 | (51.0) | | **Total** | **392,672** | **560,021** | **(29.9)** | - Cost of self-branded sports products decreased by **24.7%**, primarily due to lower inventory sales costs and supply chain optimization[27](index=27&type=chunk) - Cost of online membership and paid content decreased by **31.2%**, mainly attributable to reduced online sports event costs and channel expenses[28](index=28&type=chunk) - Cost of advertising and other decreased by **51.0%**, mainly attributable to optimized advertising production costs and reduced costs related to Keepland's closure[28](index=28&type=chunk) [Gross Profit and Gross Profit Margin](index=9&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Despite a 10.1% decrease in total gross profit due to reduced revenue, the total gross profit margin significantly increased by 6.2 percentage points to 52.2%, primarily benefiting from business structure and related cost optimization. Gross profit margins improved across all business segments, with the advertising and other segment showing the largest increase - Gross profit was **RMB 429.1 million**, a year-on-year decrease of **10.1%**[29](index=29&type=chunk) - Gross profit margin was **52.2%**, an increase of **6.2 percentage points** from the prior year period, primarily due to business structure and related cost optimization[29](index=29&type=chunk) - Gross profit margin for self-branded sports products increased by **3.3 percentage points** to **34.8%**[29](index=29&type=chunk) - Gross profit margin for online membership and paid content increased by **3.4 percentage points** to **71.3%**[30](index=30&type=chunk) - Gross profit margin for advertising and other increased by **34.7 percentage points** to **57.5%**[30](index=30&type=chunk) [Operating Expenses](index=10&type=section&id=Operating%20Expenses) During the reporting period, all operating expenses decreased. Fulfillment expenses, selling and marketing expenses, administrative expenses, and research and development expenses decreased by 29.3%, 30.9%, 8.5% and 17.0% respectively, primarily due to reduced sales, optimized promotion efficiency, lower professional fees, and increased labor productivity from AI technology enhancements - Fulfillment expenses were **RMB 43.8 million**, a year-on-year decrease of **29.3%**, primarily due to reduced sales of self-branded sports products and online sports events, as well as optimized logistics and warehousing expenses[31](index=31&type=chunk) - Selling and marketing expenses were **RMB 223.5 million**, a year-on-year decrease of **30.9%**, primarily benefiting from optimized promotion efficiency, with brand and marketing promotion expenses decreasing by **RMB 102.8 million**[32](index=32&type=chunk) - Administrative expenses were **RMB 82.8 million**, a year-on-year decrease of **8.5%**, primarily due to reduced professional fees, partially offset by an increase in share-based compensation expenses[33](index=33&type=chunk) - Research and development expenses were **RMB 162.4 million**, a year-on-year decrease of **17.0%**, primarily due to reduced R&D personnel costs and increased labor productivity from AI technology enhancements[34](index=34&type=chunk) [Loss/Profit for the Period](index=11&type=section&id=Loss%2FProfit%20for%20the%20Period) For the six months ended June 30, 2025, the company's loss significantly narrowed to RMB 35.4 million, a 78.3% reduction from RMB 163.4 million in the prior year period. After adjustments, the company achieved a net profit of RMB 10.3 million, successfully turning around losses, primarily due to increased gross profit margin and reduced operating expenses - Loss for the period was **RMB 35.4 million**, a **78.3%** decrease from **RMB 163.4 million** in the prior year period[35](index=35&type=chunk) - Adjusted net profit (non-IFRS measure) was **RMB 10.3 million**, compared to an adjusted net loss of **RMB 160.7 million** in the prior year period, achieving a turnaround to profitability[35](index=35&type=chunk) [Non-IFRS Measures](index=11&type=section&id=Non-IFRS%20Measures) The company uses adjusted net profit/(loss) as an additional financial measure to supplement IFRS-presented consolidated financial information. This metric is defined as loss for the period excluding share-based compensation expenses, as it does not involve cash outflow, helping investors more clearly assess operating performance - Adjusted net profit/(loss) is defined as loss for the period, excluding share-based compensation expenses, as it does not involve cash outflow[36](index=36&type=chunk) Adjusted Net Profit/(Loss) for the Period (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (35,429) | (163,353) | | Share-based Compensation Expenses | 45,776 | 2,663 | | **Adjusted Net Profit/(Loss) for the Period** | **10,347** | **(160,690)** | [Liquidity and Capital Resources](index=12&type=section&id=Liquidity%20and%20Capital%20Resources) [Total Available Funds](index=12&type=section&id=Total%20Available%20Funds) As of June 30, 2025, the company's total available funds were RMB 1 billion, a decrease from RMB 1.2 billion as of December 31, 2024. Available funds primarily include cash and cash equivalents, short-term time deposits, restricted bank deposits, and short-term investments, mostly denominated in USD and RMB - As of June 30, 2025, total available funds were **RMB 1 billion**, compared to **RMB 1.2 billion** as of December 31, 2024[39](index=39&type=chunk) - Total available funds include cash and cash equivalents, short-term time deposits, restricted bank deposits, and short-term investments[39](index=39&type=chunk) [Cash and Cash Equivalents](index=12&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the company's cash and cash equivalents were RMB 534.0 million, a decrease from RMB 764.3 million as of December 31, 2024, primarily due to investments in financial assets and cash used in operating activities - As of June 30, 2025, cash and cash equivalents were **RMB 534.0 million**, compared to **RMB 764.3 million** as of December 31, 2024[39](index=39&type=chunk) - The decrease in cash and cash equivalents was primarily due to investments in financial assets and cash used in operating activities[39](index=39&type=chunk) [Other Financial Information](index=13&type=section&id=Other%20Financial%20Information) [Material Investments](index=13&type=section&id=Material%20Investments) As of June 30, 2025, the company held no material investments representing 5% or more of the Group's total assets - As of June 30, 2025, the company held no material investments representing **5%** or more of the Group's total assets[40](index=40&type=chunk) [Material Acquisitions and/or Disposals of Subsidiaries, Associates and Joint Ventures](index=13&type=section&id=Material%20Acquisitions%20and%2For%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the reporting period, the company did not undertake any material acquisitions and/or disposals of subsidiaries, associates, and joint ventures - During the reporting period, the company did not undertake any material acquisitions and/or disposals of subsidiaries, associates, and joint ventures[41](index=41&type=chunk) [Future Plans for Material Investments and Capital Assets](index=13&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of the date of this announcement, the company has no other specific future plans for material investments and capital assets - As of the date of this announcement, the company has no other specific future plans for material investments and capital assets[42](index=42&type=chunk) [Employees and Remuneration](index=13&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the company had 669 full-time employees. Total employee benefit expenses were RMB 270.2 million, a decrease from the prior year period. The company offers competitive remuneration and benefits, along with comprehensive career development and talent cultivation systems - As of June 30, 2025, the number of full-time employees was **669**[43](index=43&type=chunk) - Total employee benefit expenses were **RMB 270.2 million**, a decrease from **RMB 282.0 million** in the prior year period[43](index=43&type=chunk) [Bank Borrowings and Gearing Ratio](index=13&type=section&id=Bank%20Borrowings%20and%20Gearing%20Ratio) As of June 30, 2025, the company had no outstanding bank borrowings. The gearing ratio improved to 0.25 from 0.29 as of December 31, 2024, indicating a more robust financial structure - As of June 30, 2025, the company had no outstanding bank borrowings[44](index=44&type=chunk) - The gearing ratio was **0.25**, an improvement from **0.29** as of December 31, 2024[44](index=44&type=chunk) [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no material contingent liabilities or guarantees - As of June 30, 2025, the company had no material contingent liabilities or guarantees[45](index=45&type=chunk) [Pledge of Assets](index=14&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the company had no material pledge of assets - As of June 30, 2025, the company had no material pledge of assets[46](index=46&type=chunk) [Interest Rate Risk and Foreign Exchange Risk](index=14&type=section&id=Interest%20Rate%20Risk%20and%20Foreign%20Exchange%20Risk) The company's exposure to interest rate risk and foreign exchange risk is not material, primarily because it holds no significant assets or liabilities accounted for at floating rates, most transactions are settled in RMB, and financial assets and liabilities are mainly composed of fixed-rate instruments - The company's interest rate risk is not material, primarily because it holds no significant assets or liabilities accounted for at floating rates[47](index=47&type=chunk) - The company's foreign exchange risk is not material, primarily because most transactions are settled in RMB, and it holds no significant financial assets or liabilities denominated in currencies other than its functional currency[47](index=47&type=chunk) [Condensed Consolidated Financial Statements](index=15&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company reported revenue of RMB 821.8 million and gross profit of RMB 429.1 million. Operating loss significantly narrowed to RMB 42.4 million, with loss for the period at RMB 35.4 million, and basic and diluted loss per share both at RMB 0.08 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 821,752 | 1,037,343 | | Cost of Sales | (392,672) | (560,021) | | Gross Profit | 429,080 | 477,322 | | Operating Loss | (42,353) | (187,816) | | Loss Before Income Tax | (35,429) | (163,353) | | Loss for the Period Attributable to Owners of the Company | (35,429) | (163,353) | | Basic Loss Per Share (RMB) | (0.08) | (0.35) | | Diluted Loss Per Share (RMB) | (0.08) | (0.35) | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=16&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's loss for the period was RMB 35.4 million. Other comprehensive expenses primarily included currency translation differences of RMB 2.8 million, resulting in a total comprehensive expense for the period attributable to owners of the company of RMB 38.2 million, a significant narrowing from the prior year period | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (35,429) | (163,353) | | Currency Translation Differences | (2,787) | 7,518 | | Total Comprehensive Expense for the Period Attributable to Owners of the Company | (38,216) | (155,835) | [Condensed Consolidated Statement of Financial Position](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were RMB 1.7946 billion, a decrease from RMB 1.9058 billion as of December 31, 2024. Total equity was RMB 1.3503 billion, and total liabilities were RMB 444.3 million, maintaining a robust asset and liability structure | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 263,259 | 169,867 | | Current Assets | 1,531,378 | 1,735,935 | | **Total Assets** | **1,794,637** | **1,905,802** | | **Equity** | | | | Total Equity | 1,350,331 | 1,355,802 | | **Liabilities** | | | | Non-current Liabilities | 8,334 | 23,101 | | Current Liabilities | 435,972 | 526,899 | | **Total Liabilities** | **444,306** | **550,000** | | **Total Equity and Liabilities** | **1,794,637** | **1,905,802** | [Notes to the Condensed Consolidated Interim Financial Information](index=19&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [General Information](index=19&type=section&id=General%20Information) Keep Inc. was incorporated in the Cayman Islands on April 21, 2015, and listed on the Main Board of the Hong Kong Stock Exchange on July 12, 2023. The company and its subsidiaries primarily operate an integrated online and offline fitness service platform and online retail of fitness-related products in China, with Mr. Wang Ning as the single largest shareholder - Keep Inc. was incorporated in the Cayman Islands on April 21, 2015, and listed on the Main Board of the Hong Kong Stock Exchange on July 12, 2023[52](index=52&type=chunk) - The company primarily operates an integrated online and offline fitness service platform and online retail of fitness-related products in China[52](index=52&type=chunk) - Mr. Wang Ning is the single largest shareholder of the company[53](index=53&type=chunk) [Basis of Preparation](index=19&type=section&id=Basis%20of%20Preparation) The unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, was prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules, consistent with accounting policies used for the consolidated financial statements for the year ended December 31, 2024 - The unaudited condensed consolidated interim financial information was prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules[55](index=55&type=chunk) - The accounting policies adopted are consistent with those used for the consolidated financial statements for the year ended December 31, 2024[55](index=55&type=chunk) [Adoption of New and Revised IFRS Accounting Standards](index=19&type=section&id=Adoption%20of%20New%20and%20Revised%20IFRS%20Accounting%20Standards) The Group first applied IAS 21 (Amendment) 'Lack of Exchangeability' from January 1, 2025, but did not change its accounting policies or make retrospective adjustments as a result - The Group first applied IAS 21 (Amendment) 'Lack of Exchangeability' from January 1, 2025[56](index=56&type=chunk) - The Group did not change its accounting policies or make retrospective adjustments as a result of adopting the above revised standard[56](index=56&type=chunk) [Segment Information](index=20&type=section&id=Segment%20Information) The company's chief operating decision-maker assesses the performance of three operating segments based on revenue and gross profit: self-branded sports products, online membership and paid content, and advertising and other. During the reporting period, revenue and gross profit varied across segments, with no material inter-segment sales, and the vast majority of operations and non-current assets are located in China - The company's operating segments include: self-branded sports products, online membership and paid content, and advertising and other[57](index=57&type=chunk)[60](index=60&type=chunk) - The chief operating decision-maker primarily assesses the performance of operating segments based on their revenue and gross profit[57](index=57&type=chunk) Segment Results for the Six Months Ended June 30, 2025 (RMB thousands) | Segment | Revenue | Cost of Sales | Gross Profit | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 396,650 | (258,653) | 137,997 | | Online Membership and Paid Content | 337,122 | (96,609) | 240,513 | | Advertising and Other | 87,980 | (37,410) | 50,570 | | **Total** | **821,752** | **(392,672)** | **429,080** | Segment Results for the Six Months Ended June 30, 2024 (RMB thousands) | Segment | Revenue | Cost of Sales | Gross Profit | | :--- | :--- | :--- | :--- | | Self-branded Sports Products | 501,477 | (343,301) | 158,176 | | Online Membership and Paid Content | 436,996 | (140,368) | 296,628 | | Advertising and Other | 98,870 | (76,352) | 22,518 | | **Total** | **1,037,343** | **(560,021)** | **477,322** | [Revenue](index=21&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue was RMB 821.8 million. Revenue breakdown shows online retail and wholesale channel sales constitute self-branded sports product revenue, with online membership and paid content, and advertising and other as the other two major revenue sources | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | **Self-branded Sports Products** | | | | – Online Retail | 230,142 | 337,647 | | – Wholesale Channel Sales | 166,508 | 163,830 | | Online Membership and Paid Content | 337,122 | 436,996 | | Advertising and Other | 87,980 | 98,870 | | **Total** | **821,752** | **1,037,343** | [Net Other Income](index=21&type=section&id=Net%20Other%20Income) For the six months ended June 30, 2025, net other income was RMB 13.4 million, a significant increase from RMB 2.5 million in the prior year period, primarily due to a substantial increase in net fair value gains on financial assets measured at fair value through profit or loss | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Loss on Disposal of Property and Equipment | (98) | (877) | | Net Fair Value Gains on Financial Assets Measured at Fair Value Through Profit or Loss | 12,127 | 4,266 | | Net Foreign Exchange Gains/(Losses) | 352 | (775) | | Investment Income from Financial Assets Measured at Amortized Cost | 170 | 334 | | Other | 835 | (417) | | **Total** | **13,386** | **2,531** | [Income Tax Expense](index=22&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025 and 2024, the company made no provision for PRC corporate income tax, Hong Kong profits tax, and Singapore corporate income tax, primarily due to no estimated taxable profits or available unused tax losses to offset - For the six months ended June 30, 2025 and 2024, no provision was made for PRC corporate income tax, Hong Kong profits tax, and Singapore corporate income tax[64](index=64&type=chunk) - The reason for no provision was the absence of estimated taxable profits or available unused tax losses to offset[64](index=64&type=chunk) [Loss for the Period](index=22&type=section&id=Loss%20for%20the%20Period) The Group's loss for the period was RMB 35.4 million, primarily derived after deducting items such as employee benefit expenses, cost of sales of self-branded sports products, online sports event costs, depreciation and amortization, credit loss provisions, and inventory impairment provisions | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Employee Benefit Expenses | 270,215 | 282,011 | | Cost of Sales of Self-branded Sports Products | 253,414 | 329,503 | | Online Sports Event Costs | 45,477 | 70,920 | | Depreciation of Property and Equipment | 4,235 | 5,685 | | Depreciation of Right-of-Use Assets | 8,945 | 16,637 | | Amortization of Intangible Assets | 1,328 | 1,938 | | Provision for Credit Losses on Trade and Other Receivables | 841 | 449 | | Provision for Impairment of Inventories | 312 | 5,989 | [Loss Per Share](index=23&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted loss per share were RMB 0.08, a significant narrowing from RMB 0.35 in the prior year period. As the company incurred a loss, potential ordinary shares had an anti-dilutive effect, resulting in identical basic and diluted loss per share amounts | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Net Loss Attributable to Owners of the Company (RMB thousands) | (35,429) | (163,353) | | Weighted Average Number of Ordinary Shares in Issue (thousands of shares) | 459,558 | 469,109 | | Basic Loss Per Share (RMB) | (0.08) | (0.35) | - As the company incurred a loss during the reporting period, potential ordinary shares had an anti-dilutive effect, thus the diluted loss per share amount was the same as the basic loss per share amount[68](index=68&type=chunk) [Trade and Bills Receivables](index=23&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, trade and bills receivables totaled RMB 217.0 million. The credit period for trade receivables is generally three months, and the provision for credit losses decreased, reflecting improved trade receivables management Trade and Bills Receivables (RMB thousands) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 238,819 | 237,178 | | Bills Receivables | 1,600 | – | | Less: Provision for Credit Losses | (23,403) | (31,987) | | **Total** | **217,016** | **205,191** | - The credit period for trade receivables is generally three months[70](index=70&type=chunk) Aging Analysis of Trade Receivables (RMB thousands) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 189,405 | 158,405 | | 3 to 6 Months | 17,581 | 23,403 | | 6 to 9 Months | 4,192 | 11,903 | | 9 Months to 1 Year | 3,117 | 2,172 | | Over 1 Year | 24,524 | 41,295 | | **Total** | **238,819** | **237,178** | - The provision for credit losses decreased from **RMB 31,987 thousand** as of December 31, 2024, to **RMB 23,403 thousand** as of June 30, 2025[70](index=70&type=chunk) [Dividends](index=25&type=section&id=Dividends) For the six months ended June 30, 2025 and 2024, the company neither paid nor declared any dividends - For the six months ended June 30, 2025 and 2024, the company neither paid nor declared any dividends[71](index=71&type=chunk) [Trade Payables](index=25&type=section&id=Trade%20Payables) As of June 30, 2025, trade payables were RMB 156.5 million, primarily for amounts due within three months. Trade payables are unsecured and typically settled within three months from the invoice date Aging Analysis of Trade Payables (RMB thousands) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 156,549 | 149,240 | - Trade payables are unsecured and generally settled within three months from the invoice date[72](index=72&type=chunk) [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) No material events occurred after June 30, 2025, for the company or the Group - No material events occurred after June 30, 2025, for the company or the Group[73](index=73&type=chunk) [Corporate Governance and Other Information](index=26&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Compliance with Corporate Governance Code](index=26&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with all applicable code provisions during the reporting period, except for the deviation where the roles of Chairman and Chief Executive Officer are combined - The company adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules[74](index=74&type=chunk) - During the reporting period, the company complied with all applicable code provisions of the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are combined and held by Mr. Wang Ning[74](index=74&type=chunk)[75](index=75&type=chunk) [Chairman and Chief Executive Officer](index=26&type=section&id=Chairman%20and%20Chief%20Executive%20Officer) Mr. Wang Ning currently holds both the Chairman and Chief Executive Officer positions. The Board believes this arrangement ensures consistent leadership within the Group, enhances strategic planning efficiency, and does not compromise the balance of power and authority - Mr. Wang Ning currently holds both the Chairman and Chief Executive Officer positions, deviating from Code Provision C.2.1 of the Corporate Governance Code[75](index=75&type=chunk) - The Board believes that combining these roles ensures consistent leadership within the Group, making overall strategic planning more effective and efficient[75](index=75&type=chunk) [Standard Code for Securities Transactions by Directors of Listed Issuers](index=26&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its code of conduct for directors' dealings in company securities. Upon enquiry, all directors confirmed strict compliance with the Standard Code during the reporting period - The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules[76](index=76&type=chunk) - All directors confirmed strict compliance with the required standards set out in the Standard Code during the reporting period[76](index=76&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, the company repurchased a total of 3,207,500 shares on the Stock Exchange for a total consideration of HKD 14,805,147, aiming to benefit the company and create shareholder value. As of June 30, 2025, the company held 11,235,400 treasury shares and 3,510,600 repurchased shares pending cancellation - During the reporting period, the company repurchased a total of **3,207,500** shares on the Stock Exchange for a total consideration of **HKD 14,805,147**[77](index=77&type=chunk) Share Repurchases on the Stock Exchange | Month of Repurchase | Number of Shares Repurchased | Price Paid Per Share (Highest/Lowest HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | | January 2025 | 1,300,000 | 5.66 / 4.65 | 6,447,178 | | March 2025 | 207,700 | 4.71 / 4.56 | 968,952 | | April 2025 | 1,078,800 | 4.98 / 3.76 | 4,673,227 | | May 2025 | 621,000 | 4.75 / 3.83 | 2,715,790 | | **Total** | **3,207,500** | | **14,805,147** | - As of June 30, 2025, **11,235,400** shares of the company were held as treasury shares by the company, and **3,510,600** repurchased shares of the company were pending cancellation[78](index=78&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The company's Audit Committee comprises three independent non-executive directors, with Ms. Ge Xin as Chairwoman. Its primary responsibilities include reviewing and overseeing financial reporting processes, internal control systems, and connected transactions, and it has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors, with Ms. Ge Xin as Chairwoman[79](index=79&type=chunk) - The primary responsibilities of the Audit Committee include reviewing and overseeing the Group's financial reporting processes and internal control systems, and reviewing and approving connected transactions[79](index=79&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, and agreed with the accounting treatments adopted by the company[79](index=79&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) [Independent External Auditor](index=28&type=section&id=Independent%20External%20Auditor) The company's independent external auditor, RSM Hong Kong, has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410 - The independent external auditor, RSM Hong Kong, has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025[80](index=80&type=chunk) [Material Events After Reporting Period](index=28&type=section&id=Material%20Events%20After%20Reporting%20Period) The company is not aware of any material events that occurred from June 30, 2025, up to the date of this announcement that could affect the Group - The company is not aware of any material events that occurred from June 30, 2025, up to the date of this announcement that could affect the Group[81](index=81&type=chunk) [Use of Proceeds](index=28&type=section&id=Use%20of%20Proceeds) The net proceeds from the company's share listing, approximately HKD 192.0 million, have been and will continue to be used for the purposes stated in the prospectus, with no change in the intended use. Unutilized proceeds will be held as short-term deposits, cash, and cash equivalents with licensed banks or financial institutions - The net proceeds from the global offering, approximately **HKD 192.0 million**, have been and will continue to be used for the purposes stated in the prospectus[82](index=82&type=chunk) - As of the date of this announcement, there has been no change in the intended use of the net proceeds[82](index=82&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) 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[83](index=83&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=28&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the Stock Exchange website and the company's website. 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 - This interim results announcement has been published on the Stock Exchange website www.hkexnews.hk and the company's website https://keep.com[84](index=84&type=chunk) [Acknowledgement](index=29&type=section&id=Acknowledgement) The Board extends its sincere gratitude to the Group's shareholders, management team, employees, business partners, and customers for their support and contributions to the Group - The Board extends its sincere gratitude to the Group's shareholders, management team, employees, business partners, and customers[85](index=85&type=chunk) [Board of Directors](index=29&type=section&id=Board%20of%20Directors) As of the date of this announcement, the company's executive directors are Mr. Wang Ning, Mr. Peng Wei, and Mr. Liu Dong; independent non-executive directors are Ms. Ge Xin, Mr. Shan Yigang, and Mr. Wang Haining - The executive directors are Mr. Wang Ning, Mr. Peng Wei, and Mr. Liu Dong; independent non-executive directors are Ms. Ge Xin, Mr. Shan Yigang, and Mr. Wang Haining[87](index=87&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部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。 （於百慕達註冊成立之有限公司） （股份代號：00124） 2025 年中期業績公告 摘要 | | 截至 6 月 30 | 日止六個月 | | | --- | --- | --- | --- | | | 2025 年 | 2024 年 | 變動 | | 收入（千港元） | 5,751,820 | 2,803,824 | +105.1% | | 毛利（千港元） | 2,062,754 | 115,920 | +1,679.5% | | 投資物業公允值(虧損)/收益（千港元） | (131,749) | 193 | 不適用 | | 歸屬於本公司持有者溢利/(虧損) | | | | | （千港元） | 282,053 | (217,031) | 不適用 | | 每股基本溢利/(虧損)（港仙） | 16.48 | (12.68) | 不適用 | | | 於 2025 年 | 於 2024 年 | | | | 6 ...

[Company Overview and Performance Highlights](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88%E8%88%87%E6%A5%AD%E7%B8%BE%E4%BA%AE%E9%BB%9E) [Interim Dividend](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The company declared an increased interim dividend of 2.3 HK cents per share for 2025, payable in September, reflecting a higher payout than the previous year Interim Dividend Overview | Metric | 2025 Interim | 2024 Interim | | :--- | :--- | :--- | | Dividend Per Share (HK cents) | 2.3 HK cents | 2.0 HK cents | | Total Amount (HKD) | Approx. 17,129,000 HKD | - | | Payment Date | September 19, 2025 | - | | Record Date | September 11, 2025 | - | [Performance Review](index=1&type=section&id=%E5%9B%9E%E9%A1%A7) Despite global economic uncertainties, the Group achieved robust H1 2025 performance with a slight revenue decrease but significant net profit growth and improved gross profit margin - The Group is a leading pan-fashion brand marketing group in Greater China, focusing on experiential marketing, digital marketing and promotion, and IP expansion services, with a **13.8% market share** in Greater China's high-end fashion brand experiential marketing market in 2024[5](index=5&type=chunk) 2025 Interim Core Financial Performance | Metric | 2025 Interim (RMB million) | 2024 Interim (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 311.7 | 316.4 | -1.5% | | Net Profit | 35.1 | 30.2 | +16.2% | | Gross Profit Margin | 33.7% | 32.7% | +1.0 percentage points | - The Group successfully mitigated external pressures and enhanced profitability through strategic cost optimization and operational adjustments[6](index=6&type=chunk) [Macroeconomic and Market Environment](index=2&type=section&id=%E5%AE%8F%E8%A7%80%E7%B6%93%E6%BF%9F%E5%8F%8A%E5%B8%82%E5%A0%B4%E7%92%B0%E5%A2%83) In H1 2025, global and Chinese luxury markets faced macroeconomic challenges, leading to weakened consumer confidence and sales contraction, while market structure shifted with increased competition and diversified consumer preferences - Global luxury sales are projected to contract by **2%-5%** for the full year, with the Chinese market slowing due to weak real estate and exchange rate fluctuations, impacting consumer confidence[8](index=8&type=chunk) - Chinese consumers are more cautious in luxury purchases, influenced by price sensitivity, brand value, and cultural relevance[8](index=8&type=chunk) - The Chinese luxury market structure is shifting, with intense brand competition and diversified consumer preferences; brands integrating local culture and precise strategies show strong performance[9](index=9&type=chunk) [Outlook](index=3&type=section&id=%E5%B1%95%E6%9C%9B) The Group anticipates a stable and improving Chinese economy in H2 2025, planning to integrate experiential and digital marketing into a one-stop platform and selectively expand services to new brand categories - China's economy is expected to stabilize and improve in the second half, with consumption policies gradually revitalizing the market and creating growth opportunities for the industry[10](index=10&type=chunk) - The Group will integrate experiential and digital marketing to create a one-stop service platform, utilizing data-driven insights and immersive marketing approaches[10](index=10&type=chunk) - The Group will selectively expand its services in sports fashion, beauty, and high-end Chinese brands, and assist Chinese brands in international expansion[11](index=11&type=chunk) [Business Review](index=4&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) [Geographical Review](index=4&type=section&id=%E5%9C%B0%E5%8D%80%E5%9B%9E%E9%A1%A7) In H1 2025, the Group's revenue primarily originated from Mainland China, accounting for 97.0% of total revenue with year-on-year growth, while contributions from Hong Kong and Singapore decreased to 3.0% Revenue Breakdown by Region | Region | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 302,187 | 97.0% | 288,530 | 91.2% | | Hong Kong & Singapore | 9,471 | 3.0% | 27,831 | 8.8% | | **Total** | **311,658** | **100.0%** | **316,361** | **100.0%** | [Business Segment Review](index=4&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8%E5%9B%9E%E9%A1%A7) In H1 2025, experiential marketing generated RMB 246.3 million, digital marketing and promotion RMB 65.2 million, and IP expansion RMB 0.2 million, with strong growth in digital marketing offsetting a significant decline in IP expansion Revenue by Service Line | Service Line | 2025 (RMB million) | 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Experiential Marketing | 246.3 | 257.5 | -4.3% | | Digital Marketing and Promotion | 65.2 | 48.9 | +33.3% | | IP Expansion | 0.2 | 9.9 | -98.0% | | **Total** | **311.7** | **316.3** | **-1.5%** | [Experiential Marketing](index=5&type=section&id=%E9%AB%94%E9%A9%97%E7%87%9F%E9%8Š%B7) Experiential marketing remains the Group's core business, contributing 79.0% of total revenue despite a 4.3% decrease to RMB 246.3 million, as the Group adapts to client preferences for integrated marketing solutions - The Group remains the largest high-end fashion brand experiential marketing service provider in Greater China, with a **13.8% market share** in 2024[16](index=16&type=chunk) - Experiential marketing revenue decreased by **4.3%** year-on-year to **RMB 246.3 million**, yet still accounted for **79.0%** of total revenue[18](index=18&type=chunk) - The revenue decline reflects industry trends where clients prefer multi-channel integrated marketing solutions, prompting the Group to adjust its strategy by combining experiential marketing with digital promotion[18](index=18&type=chunk)[19](index=19&type=chunk) - Successfully executed numerous campaigns for renowned brands such as BMW, CARTIER, and LOUIS VUITTON, demonstrating exceptional capabilities[17](index=17&type=chunk) [Digital Marketing and Promotion](index=6&type=section&id=%E6%95%B8%E5%AD%97%E7%87%9F%E9%8Š%B7%E8%88%87%E6%8E%A8%E5%BB%A3) Digital marketing and promotion revenue significantly increased by 33.3% to RMB 65.2 million, representing 20.9% of total revenue, demonstrating strong synergy with experiential marketing and aligning with younger consumer trends - Digital marketing and promotion revenue increased by **33.3%** year-on-year to **RMB 65.2 million**, accounting for **20.9%** of total revenue[23](index=23&type=chunk) - This business, combined with experiential marketing, promotes brands through platforms like Weibo, WeChat, Douyin, and Xiaohongshu, offering data-driven interactive services and celebrity/influencer live-streaming sales[21](index=21&type=chunk)[22](index=22&type=chunk) - This integrated strategy aligns with the trend of younger generations (Gen Y, Z, and Alpha) becoming the primary luxury consumer group, projected to account for **75% to 85%** of global consumption by 2030[22](index=22&type=chunk) [IP Expansion](index=7&type=section&id=IP%E6%8B%93%E5%B1%95) IP expansion revenue sharply declined by 98.0% to RMB 0.2 million, accounting for 0.1% of total revenue, primarily due to macroeconomic factors and business seasonality, with projects concentrated in the second half of the year - IP expansion revenue significantly decreased by **98.0%** to **RMB 0.2 million**, representing **0.1%** of total revenue[25](index=25&type=chunk) - The revenue decrease was primarily due to macroeconomic conditions, policy environment, and business seasonality, with IP-related activities and collaboration projects mainly scheduled for the second half of the year[24](index=24&type=chunk)[25](index=25&type=chunk) - The Group will continue to commit to IP expansion as a long-term strategy, enhancing existing IP operations, unlocking new IP potential, and strengthening synergies with digital and experiential marketing[25](index=25&type=chunk) [Financial Review](index=8&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) [Key Income Statement Items](index=8&type=section&id=%E6%90%8D%E7%9B%8A%E8%A1%A8%E9%97%9C%E9%8D%B5%E9%A0%85%E7%9B%AE) Profitability improved with increased gross profit and net profit margins, driven by a decrease in cost of sales [Cost of Sales](index=8&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales decreased from RMB 213.0 million in 2024 interim to RMB 206.6 million in 2025 interim, aligning with the revenue decline Cost of Sales Change | Metric | 2025 Interim (RMB million) | 2024 Interim (RMB million) | | :--- | :--- | :--- | | Cost of Sales | 206.6 | 213.0 | [Gross Profit and Gross Profit Margin](index=8&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased by 1.6% to RMB 105.1 million in 2025 interim from RMB 103.4 million in 2024 interim, with the overall gross profit margin improving from 32.7% to 33.7% Gross Profit and Gross Profit Margin Change | Metric | 2025 Interim (RMB million) | 2024 Interim (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Gross Profit | 105.1 | 103.4 | +1.6% | | Gross Profit Margin | 33.7% | 32.7% | +1.0 percentage points | [Other Income and Gains](index=8&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains remained stable at approximately RMB 5.4 million in 2025 interim Other Income and Gains | Metric | 2025 Interim (RMB million) | 2024 Interim (RMB million) | | :--- | :--- | :--- | | Other Income and Gains | 5.4 | 5.3 | [Selling and Distribution Expenses](index=8&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8Š%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses decreased from RMB 37.1 million in 2024 interim to RMB 35.5 million in 2025 interim, primarily due to lower employee costs Selling and Distribution Expenses Change | Metric | 2025 Interim (RMB million) | 2024 Interim (RMB million) | | :--- | :--- | :--- | | Selling and Distribution Expenses | 35.5 | 37.1 | [General and Administrative Expenses](index=9&type=section&id=%E4%B8%80%E8%88%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) General and administrative expenses significantly decreased from RMB 29.4 million in 2024 interim to RMB 19.6 million in 2025 interim, mainly due to a substantial reduction in share-based payment expenses General and Administrative Expenses Change | Metric | 2025 Interim (RMB million) | 2024 Interim (RMB million) | | :--- | :--- | :--- | | General and Administrative Expenses | 19.6 | 29.4 | | Share-based Payment Expenses | 0.3 | 9.6 | [Other Net Expenses](index=9&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF%E6%B7%A8%E9%A1%8D) Other net expenses decreased from RMB 1.2 million in 2024 interim to RMB 1.0 million in 2025 interim Other Net Expenses Change | Metric | 2025 Interim (RMB million) | 2024 Interim (RMB million) | | :--- | :--- | :--- | | Other Net Expenses | 1.0 | 1.2 | [Finance Costs](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs remained stable at approximately RMB 0.2 million in 2025 interim Finance Costs Change | Metric | 2025 Interim (RMB million) | 2024 Interim (RMB million) | | :--- | :--- | :--- |\ | Finance Costs | 0.2 | 0.2 | [Net Profit and Net Profit Margin](index=9&type=section&id=%E6%B7%A8%E5%88%A9%E6%BD%A4%E5%8F%8A%E6%B7%A8%E5%88%A9%E6%BD%A4%E7%8E%87) The Group's net profit increased by 16.2% to RMB 35.1 million in 2025 interim, with the net profit margin improving to 11.3% Net Profit and Net Profit Margin Change | Metric | 2025 Interim (RMB million) | 2024 Interim (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net Profit | 35.1 | 30.2 | +16.2% | | Net Profit Margin | 11.3% | 9.5% | +1.8 percentage points | [Liquidity and Financial Resources](index=9&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintained strong liquidity with RMB 288.7 million in cash and no borrowings, deferring unutilized global offering proceeds [Cash and Cash Equivalents](index=9&type=section&id=%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9) As of June 30, 2025, the Group's cash and cash equivalents amounted to RMB 288.7 million, a decrease from RMB 379.2 million as of December 31, 2024 Cash and Cash Equivalents | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 288.7 | 379.2 | [Net Proceeds from Global Offering](index=9&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E6%B7%A8%E9%A1%8D) The net proceeds from the global offering were approximately HKD 345.0 million, with HKD 166.7 million remaining unutilized, which the company decided to defer until 2026 to mitigate risk exposure - The net proceeds from the global offering were approximately **HKD 345.0 million**, with **HKD 166.7 million** remaining unutilized as of June 30, 2025[35](index=35&type=chunk)[37](index=37&type=chunk) - The Company decided to postpone the expected full utilization timetable for unutilized net proceeds allocated for strategic investments to 2026 to reduce risk exposure[38](index=38&type=chunk) [Borrowings and Pledges of Group Assets](index=11&type=section&id=%E5%80%9F%E6%AC%BE%E5%8F%8A%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E7%9A%84%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had no interest-bearing borrowings or pledges of assets - As of June 30, 2025, the Group had no interest-bearing borrowings or pledges of assets[39](index=39&type=chunk) [Gearing Ratio](index=11&type=section&id=%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's gearing ratio was zero due to no bank borrowings, indicating a strong liquidity position - As of June 30, 2025, the Group's gearing ratio was zero[40](index=40&type=chunk) - The Group maintains a strong liquidity position with sufficient financial resources to meet working capital requirements and future expansion[40](index=40&type=chunk) [Employees and Remuneration Policy](index=11&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had approximately 224 employees, with employee benefit expenses of approximately RMB 44.4 million, and the company provides comprehensive remuneration and invests in staff training Employees and Benefit Expenses | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Employees | 224 employees | 233 employees | | Employee Benefit Expenses (RMB million) | 44.4 | 54.1 | - The Group offers comprehensive remuneration packages determined by market terms and individual performance, and invests in employee continuing education and training[41](index=41&type=chunk) [Trade Receivables and Trade Payables](index=11&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E8%88%87%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade receivables decreased to RMB 211.3 million, and trade payables decreased to RMB 206.6 million Trade Receivables and Payables | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Trade Receivables | 211.3 | 264.9 | | Trade Payables | 206.6 | 294.7 | [Contingent Liabilities](index=12&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[43](index=43&type=chunk) [Acquisition and Disposal of Subsidiaries and Associates](index=12&type=section&id=%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8) During the 2025 interim period, the Group had no material acquisitions or disposals of subsidiaries and associates - During the 2025 interim period, the Group had no material acquisitions or disposals of subsidiaries and associates[44](index=44&type=chunk) [Capital Commitments](index=12&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's capital commitments amounted to approximately RMB 5.1 million for future capital expenditures Capital Commitments | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Capital Commitments | 5.1 | 5.1 | [Material Investments](index=12&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of June 30, 2025, the Group had no material investments - As of June 30, 2025, the Group had no material investments[46](index=46&type=chunk) [Future Plans for Material Investments or Capital Assets](index=12&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of the date of this announcement, the Group had no plans for material investments and capital assets for the year ending December 31, 2025 - As of the date of this announcement, the Group had no plans for material investments and capital assets for the year ending December 31, 2025[47](index=47&type=chunk) [Foreign Exchange Risk](index=12&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The majority of the Group's revenue and expenses are denominated in RMB, resulting in no significant foreign exchange risk, and the company will continue to monitor the foreign exchange market and explore hedging arrangements - The majority of the Group's revenue and expenses are denominated in RMB, resulting in no significant foreign exchange risk[48](index=48&type=chunk) [Interim Condensed Consolidated Financial Statements](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The statement of profit or loss shows revenue of RMB 311,658 thousand and net profit of RMB 35,136 thousand for 2025 interim, with basic earnings per share of RMB 4.31 cents Interim Condensed Consolidated Statement of Profit or Loss Summary | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 311,658 | 316,361 | | Cost of Sales | (206,593) | (212,970) | | Gross Profit | 105,065 | 103,391 | | Profit Before Tax | 54,434 | 42,087 | | Profit for the Period | 35,136 | 30,153 | | Profit Attributable to Owners of the Parent | 32,028 | 26,858 | | Basic Earnings Per Share (RMB cents) | 4.31 | 3.70 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=14&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The statement of comprehensive income shows total comprehensive income of RMB 32,788 thousand for 2025 interim, including other comprehensive loss from exchange differences on translation of foreign operations Interim Condensed Consolidated Statement of Comprehensive Income Summary | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 35,136 | 30,153 | | Exchange Differences on Translation of Foreign Operations | (2,348) | (7,457) | | Total Comprehensive Income for the Period | 32,788 | 22,696 | | Total Comprehensive Income Attributable to Owners of the Parent | 29,680 | 19,401 | [Interim Condensed Consolidated Statement of Financial Position](index=15&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) The statement of financial position shows total assets of RMB 602,733 thousand, total liabilities of RMB 261,493 thousand, and total equity of RMB 341,240 thousand as of June 30, 2025 Interim Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 74,385 | 72,979 | | Total Current Assets | 528,348 | 672,930 | | Total Current Liabilities | 251,260 | 375,560 | | Net Current Assets | 277,088 | 297,370 | | Total Assets Less Current Liabilities | 351,473 | 370,349 | | Total Non-current Liabilities | 10,233 | 9,205 | | Total Equity | 341,240 | 361,144 | [Notes to the Interim Condensed Consolidated Financial Information](index=17&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [Company and Group Information](index=17&type=section&id=%E5%85%AC%E5%8F%B8%E5%8F%8A%E9%9B%86%E5%9C%98%E8%B3%87%E6%96%99) Aidevi XUAN Group Holdings Limited is registered in the Cayman Islands, with its principal place of business in Shanghai, China, and its shares listed on the HKEX on January 16, 2020 - The Company is an investment holding company, with its subsidiaries primarily engaged in experiential marketing services, digital marketing and promotion services, and IP expansion services[54](index=54&type=chunk)[57](index=57&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=17&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The interim condensed consolidated financial information is prepared under HKAS 34 and adopted revised HKFRS accounting standards for the first time, with no material impact from HKAS 21 amendments - The financial information is prepared in accordance with Hong Kong Accounting Standard 34 and has adopted the revised Hong Kong Financial Reporting Standards for the first time[54](index=54&type=chunk)[55](index=55&type=chunk) - The amendments to Hong Kong Accounting Standard 21, concerning the assessment of a currency lacking exchangeability, had no impact on the Group's interim condensed consolidated financial information[56](index=56&type=chunk) [Operating Segment Information](index=18&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group is managed and evaluated based on three operating segments: experiential marketing services, digital marketing and promotion services, and IP expansion, with segment results assessed by adjusted profit/loss before tax - The Group is organized into three reportable operating segments: experiential marketing services, digital marketing and promotion services, and IP expansion services[58](index=58&type=chunk)[59](index=59&type=chunk) 2025 Interim Operating Segment Results | Segment | Revenue (RMB thousand) | Result (RMB thousand) | | :--- | :--- | :--- | | Experiential Marketing Services | 246,234 | 41,983 | | Digital Marketing and Promotion Services | 65,193 | 14,588 | | IP Expansion | 231 | 454 | | **Total** | **311,658** | **57,025** | 2024 Interim Operating Segment Results | Segment | Revenue (RMB thousand) | Result (RMB thousand) | | :--- | :--- | :--- | | Experiential Marketing Services | 257,517 | 45,595 | | Digital Marketing and Promotion Services | 48,936 | 4,545 | | IP Expansion | 9,908 | 3,879 | | **Total** | **316,361** | **54,019** | [Revenue, Other Income and Gains](index=21&type=section&id=%E6%94%B6%E7%9B%8A%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Revenue primarily derived from experiential and digital marketing services in Mainland China, with significant contributions from clients C, D, E, and F in 2025 interim, and other income mainly from bank interest and government grants Revenue by Geographical Location (RMB thousand) | Region | Experiential Marketing Services (2025) | Experiential Marketing Services (2024) | Digital Marketing and Promotion Services (2025) | Digital Marketing and Promotion Services (2024) | IP Expansion (2025) | IP Expansion (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China | 236,874 | 230,729 | 65,082 | 47,893 | 231 | 9,908 | | Hong Kong & Singapore | 9,360 | 26,788 | 111 | 1,043 | - | - | Revenue Contribution by Major Clients (RMB thousand) | Client | 2025 | 2024 | | :--- | :--- | :--- | | Client A | 42,468 | 68,303 | | Client B | —* | 39,209 | | Client C | 54,572 | 34,744 | | Client D | 46,468 | —* | | Client E | 42,605 | —* | | Client F | 33,061 | —* | Other Income and Gains (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Bank interest income | 1,696 | 1,010 | | Government grants and subsidies | 3,184 | 4,107 | | Others | 480 | 210 | | **Total** | **5,360** | **5,327** | [Profit Before Tax](index=23&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax is calculated after deducting costs of services, depreciation of property, plant and equipment, right-of-use assets, amortization of intangible assets, net impairment loss on trade receivables, and net exchange differences Profit Before Tax Deductions (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of services provided | 206,593 | 212,970 | | Depreciation of property, plant and equipment | 1,033 | 1,149 | | Depreciation of right-of-use assets | 1,310 | 1,362 | | Amortisation of intangible assets | 125 | 135 | | Net impairment loss on trade receivables | 605 | 1,128 | | Net exchange differences | 46 | 2 | [Income Tax](index=24&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) Income tax expense for 2025 interim was RMB 19,298 thousand, primarily comprising Mainland China corporate income tax (25%), Hong Kong profits tax (16.5% or 8.25%), and Singapore income tax (17%) - Mainland China's corporate income tax rate is **25%**, Hong Kong's profits tax rate is **16.5%** (with **8.25%** for qualifying profits), and Singapore's income tax rate is **17%**[70](index=70&type=chunk) Income Tax Expense (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current — China | 19,294 | 11,288 | | Deferred | 4 | 646 | | **Total Tax Expense for the Period (RMB thousand)** | **19,298** | **11,934** | [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=24&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for 2025 interim was RMB 4.31 cents, and diluted earnings per share was RMB 4.31 cents, calculated based on profit attributable to ordinary equity holders and adjusted weighted average shares Earnings Per Share (RMB cents) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic | 4.31 | 3.70 | | Diluted | 4.31 | 3.61 | Number of Shares for EPS Calculation | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Weighted average number of shares for basic EPS | 742,979,050 | 725,104,265 | | Dilutive effect — share awards | 569,342 | 18,718,272 | | Number of shares for diluted EPS | 743,548,392 | 743,822,537 | [Dividends](index=25&type=section&id=%E8%82%A1%E6%81%AF) The Company declared an interim dividend of 2.3 HK cents per ordinary share for 2025 interim, totaling RMB 15,879 thousand Declared Dividends (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interim dividend (per ordinary share) | 2.3 HK cents | 2.0 HK cents | | Total Amount | 15,879 | 13,868 | [Trade Receivables](index=25&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables amounted to RMB 211,273 thousand, comprising RMB 68,526 thousand billed and RMB 142,747 thousand unbilled Trade Receivables Aging Analysis (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Billed** | | | | Within one month | 63,329 | 98,802 | | One to three months | 3,938 | 434 | | Over three months | 1,259 | 794 | | **Subtotal** | **68,526** | **100,030** | | **Unbilled** | **142,747** | **164,705** | | **Total** | **211,273** | **264,935** | [Trade Payables](index=26&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables amounted to RMB 206,579 thousand, with RMB 150,650 thousand due within one month, and are generally interest-free and settled within 60 to 90 days Trade Payables Aging Analysis (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within one month | 150,650 | 234,741 | | One to three months | 1,868 | 37,821 | | Over three months | 54,061 | 22,139 | | **Total** | **206,579** | **294,701** | - Trade payables are interest-free and generally settled within 60 to 90 days[77](index=77&type=chunk) [Other Information](index=27&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Closure of Register of Members](index=27&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) The Company will close its register of members from September 6 to September 11, 2025, to determine shareholders entitled to the interim dividend - The register of members will be closed from Saturday, September 6, 2025, to Thursday, September 11, 2025, to determine shareholders entitled to the interim dividend[78](index=78&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the 2025 interim period, neither the Company nor its subsidiaries repurchased, sold, or redeemed any listed securities, and no treasury shares were held as of June 30, 2025 - During the 2025 interim period, neither the Company nor its subsidiaries repurchased, sold, or redeemed any listed securities[79](index=79&type=chunk) - As of June 30, 2025, the Company held no treasury shares[79](index=79&type=chunk) [Compliance with the Corporate Governance Code](index=27&type=section&id=%E9%81%B5%E5%AE%88%E3%80%8A%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87%E3%80%8B) The Company has adopted and generally complied with the Corporate Governance Code, though the roles of Co-Chairman and CEO are combined, an arrangement the Board will regularly review - The Company has adopted and generally complied with the Corporate Governance Code, though Mr. Liu Jin Yao concurrently holds the roles of Co-Chairman and Chief Executive Officer, an arrangement the Board will regularly review[80](index=80&type=chunk) [Model Code for Securities Transactions](index=28&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E8%A1%8C%E7%82%BA%E5%AE%88%E5%89%87) The Company has adopted the Model Code for Securities Transactions and confirmed strict compliance by all directors and relevant employees during the 2025 interim period - The Company has adopted the Model Code to regulate securities transactions by directors and relevant employees, confirming strict compliance by all directors and relevant employees during the 2025 interim period[81](index=81&type=chunk) [Audit Committee and Review of Financial Statements](index=28&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%8F%8A%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%AF%A9%E9%96%B1) The Audit Committee, composed of three independent non-executive directors, reviewed the 2025 interim unaudited results, confirming compliance with accounting principles and adequate disclosure - The Audit Committee, comprising three independent non-executive directors, has reviewed the 2025 interim unaudited interim results, confirming compliance with accounting principles and adequate disclosure[82](index=82&type=chunk) [Publication of 2025 Interim Results and Interim Report](index=28&type=section&id=%E5%88%8A%E7%99%BC2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The 2025 interim results announcement has been published on the HKEX and Company websites, with the interim report to be published in September 2025 - The 2025 interim results announcement has been published on the HKEX and Company websites, with the interim report to be published in September 2025[83](index=83&type=chunk) [Acknowledgement](index=29&type=section&id=%E8%87%B4%E8%AC%9D) The Board extends its sincere gratitude to the Group's management, employees, regulatory bodies, shareholders, and clients - The Board expresses its sincere gratitude to the Group's management, employees, regulatory bodies, shareholders, and clients[84](index=84&type=chunk)