ALLEGRO CULTURE LIMITED 律齊文化有限公司 ALLEGRO CULTURE LIMITED 律齊文化有限公司 (formerly known as Kingkey Intelligence Culture Holdings Limited) (前稱京基智慧文化控股有限公司) (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) (於開曼群島註冊成立並於百慕達繼續經營之有限公司) (Stock Code 股份代號：550) 2023 Annual Report | 年報 ALLEGRO CULTURE LIMITED 律齊文化有限公司 ANNUAL REPORT 2023 年 報 www.allegroculture.com.hk Room 1506, 15th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong 香港干諾道中111號永安中心15樓1506室 Contents 目錄 | Directors' ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA OVERSEAS PROPERTY HOLDINGS LIMITED 中 海 物 業 集 團 有 限 公 司 ( 在開曼群島註冊成立的有限公司 ) (股份代號: 2669) 截至二零二五年六月三十日止六個月 之未經審核中期業績公佈 財務摘要 1. 截至二零二五年六月三十日止六個月，本集團新增管理建築面積（「在管面積」） 31.8百萬平方米，其中，84.0%來自獨立第三方，新簽合約總額約為人民幣2,257.8 百萬元。住宅項目及非住宅項目分別佔新增在管面積41.0%及59.0%，合約額分別 約達人民幣1,249.6百萬元及人民幣1,008.2百萬元。 2. 同時，本集團持續優化業務結構及項目治理，並退盤26.8百萬平方米。因此，於 二零二五年六月三十日，本集團的在管面積較去年年底增加5.0百萬平方米至436.1 百萬平方米。其中，來自獨立第三方及非住宅項目的在管建築面積佔比分別為 39.1%及 ...

Financial Performance - The adjusted property EBITDA for the first half of 2025 was $1,100,000,000, a decrease of 5.9% compared to $1,170,000,000 in the first half of 2024[10]. - The total net revenue for the first half of 2025 was $3,490,000,000, down 1.7% from $3,550,000,000 in the first half of 2024[10]. - The profit for the first half of 2025 was $413,000,000, a decrease of 23.7% from $541,000,000 in the first half of 2024[10]. - The net revenue from the gaming segment for the first half of 2025 was $2,620,000,000, down 3.0% from $2,700,000,000 in the first half of 2024[19]. - Total net revenue from the Macau Venetian casino was $1,019 million, a decrease of 14.7% compared to $1,194 million in the previous year[21]. - Total net revenue from the Londoner Macau casino increased by 21.7% to $897 million from $737 million[21]. - The total revenue from the Parisian Macau casino was $316 million, a decrease of 16.8% from $380 million[21]. - For the six months ended June 30, 2025, the net revenue was $3,492 million, a decrease of 1.7% compared to $3,551 million in the same period of 2024[133]. - Operating profit for the same period was $585 million, down 15.0% from $688 million in 2024[133]. - Profit attributable to equity holders for the six months was $413 million, a decrease of 23.6% from $541 million in 2024[133]. Visitor and Gaming Revenue Trends - The Macau government reported a 19.3% increase in the total number of visitors from mainland China for the first half of 2025 compared to the same period in 2024[15]. - The gross gaming revenue in Macau increased by 4.4% for the first half of 2025 compared to the same period in 2024[15]. - The total revenue from slot machines at the Macau Venetian was $2,776 million, down 8.6% from $3,038 million[21]. - The total revenue from shopping centers increased by 7.8% to $249 million from $231 million[27]. - The total revenue from the Venetian shopping center was $121 million, an increase of 12.0% from $108 million[28]. Capital Expenditures and Investments - The Londoner Macao Phase II project, which includes the renovation of the Sheraton Grand Macao into The Londoner Hotel, has an estimated total cost of $1,200,000,000 and was largely completed in the first quarter of 2025[16]. - Capital expenditures for the six months ended June 30, 2025, amounted to $333 million, up from $218 million in the same period in 2024[53]. - The company committed to invest at least MOP 35.84 billion (approximately $4.43 billion), with MOP 33.39 billion (approximately $4.13 billion) allocated for non-gaming projects to be completed by December 2032[58]. Operating Expenses and Financial Management - Total operating expenses for the six months ended June 30, 2025, were $2.91 billion, an increase of 1.5% from $2.86 billion in the same period of 2024[33]. - Employee benefits expenses increased by $42 million, and foreign exchange losses rose by $31 million, contributing to the overall increase in operating expenses[33]. - The financing cost for the six months ended June 30, 2025, was $196 million, a decrease of 12.1% from $223 million for the same period in 2024[41]. - Net financing costs, after capitalized interest, were $195 million for the six months ended June 30, 2025, compared to $220 million for the same period in 2024, reflecting a decrease of 11.4%[41]. Shareholder Returns and Dividends - The company declared an interim dividend of HKD 0.25 per share, totaling HKD 2,020,000,000 (approximately USD 258,000,000) to be paid on September 12, 2025[59]. - A final dividend of HK$0.25 (approximately $0.032) per share was declared, totaling HK$2.02 billion (approximately $261 million), to be paid on June 20, 2025[171]. Legal and Regulatory Matters - A lawsuit was filed against the company for MOP 3,000,000,000 (approximately USD 371,000,000) regarding alleged breaches of a joint bidding agreement[62]. - The Macau court ruled in 2014 that the claims against the company were baseless, but the plaintiff appealed the decision[64]. - The plaintiff increased the claim amount to MOP 96,450,000,000 (approximately USD 11,930,000,000) in 2019, asserting it represented lost earnings from 2004 to 2018[65]. - The company will continue to actively defend against the ongoing litigation[72]. Debt and Financial Position - As of June 30, 2025, the net debt was $5,939 million, a slight decrease from $6,036 million as of December 31, 2024, resulting in a net debt to total equity ratio of 84.1% compared to 85.4%[76]. - The total equity increased to $1,120 million as of June 30, 2025, up from $1,031 million as of December 31, 2024[76]. - The company has a total of 27,052 full-time team members as of June 30, 2025, with a gender ratio of 49% male and 51% female[81]. Corporate Governance and Management - The company has established five board committees to ensure effective corporate governance, including an Audit Committee and a Remuneration Committee[90]. - Patrick Sydney Dumont was appointed as a non-executive director on August 8, 2025, indicating a potential shift in board composition[87]. - The Audit Committee has reviewed the accounting policies adopted by the group and the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, confirming compliance with applicable accounting standards[93]. Environmental, Social, and Governance (ESG) Initiatives - The company published its 2024 Environmental, Social, and Governance (ESG) report in March 2025, demonstrating its commitment to sustainability[80].

[Corporate Information](index=4&type=section&id=Corporate%20Information) [Corporate Overview](index=4&type=section&id=Corporate%20Information_Overview) This section lists the company's board members, committee compositions, company secretary, independent auditor, principal bankers, registered office, share registrar, Hong Kong head office, company website, and stock code. - The Board of Directors comprises two executive directors (Mr. Lo Ka Ming, Mr. Choi Pun Lap) and three independent non-executive directors (Mr. Leung Chun Yip, Mr. Foo Yan Ming, Ms. Lam Yuen Man)[10](index=10&type=chunk)[11](index=11&type=chunk) - The Audit Committee, Nomination Committee, and Remuneration Committee are all chaired by independent non-executive directors[10](index=10&type=chunk)[11](index=11&type=chunk) - The Company's stock code is **8366**, and it is listed on GEM of the HKEX[14](index=14&type=chunk) [Highlights](index=6&type=section&id=Highlights) [Financial Performance Highlights](index=6&type=section&id=Highlights_FinancialPerformance) This section summarizes the company's key financial indicators for the fiscal year ended April 30, 2025, including revenue, gross profit, earnings/(loss) per share, and net profit/(loss), with a comparison to the previous fiscal year. 2024/25 Fiscal Year Key Financial Data Comparison | Indicator | FY2024/25 (HK$ million) | FY2023/24 (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 279.93 | 302.10 | -7.34% | | Gross Profit | 6.11 | 5.76 | +5.90% | | Earnings/(Loss) Per Share | 0.06 HK cents | (0.02 HK cents) | Turned from loss to profit | | Net Profit/(Loss) | 1.01 | 0.35 | Turned from loss to profit | [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=7&type=section&id=Management%20Discussion%20and%20Analysis_BusinessReviewAndOutlook) The Group primarily engages in slope works, foundation works, and other general building works in Hong Kong, anticipating demand from the government's continuous increase in infrastructure projects despite a challenging competitive environment. - The Group's main business involves slope works, foundation works, and other general building works in Hong Kong, with its principal operating subsidiary, Fraser Construction Company Limited, being an approved specialist contractor for public works by the Hong Kong Government[17](index=17&type=chunk)[19](index=19&type=chunk) - Hong Kong construction companies face severe competition, slower approval of public works funding, and higher subcontracting fees and overall operating costs[18](index=18&type=chunk)[20](index=20&type=chunk) - The Board is cautiously optimistic about the Hong Kong slope works industry, expecting increased demand for slope works due to public safety concerns from the Hong Kong Government's continuous increase in construction and infrastructure projects[23](index=23&type=chunk)[26](index=26&type=chunk) [Financial Review](index=8&type=section&id=Management%20Discussion%20and%20Analysis_FinancialReview) For the year ended April 30, 2025, the Group's revenue decreased by 7.34% to HK$279.93 million, but net profit turned from loss to profit, primarily due to increased site supervision fee income and improved gross margin. Revenue and Gross Profit Changes | Indicator | FY2025 (HK$ million) | FY2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 279.93 | 302.10 | (22.17) | -7.34% | | Direct Costs | (273.83) | (296.34) | 22.51 | -7.60% | | Gross Profit | 6.10 | 5.76 | 0.34 | +5.90% | | Gross Profit Margin | 2.18% | 1.91% | +0.27% | - | - Slope works revenue decreased by approximately **7.33% to HK$279.67 million**, and foundation works revenue decreased by approximately **10.34% to HK$0.26 million**, mainly due to a reduction in total contract value and number of projects[30](index=30&type=chunk)[33](index=33&type=chunk) Other Income and Administrative Expenses Changes | Indicator | FY2025 (HK$ million) | FY2024 (HK$ million) | Change (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Other Income and Other Gains | 2.67 | 1.85 | 0.82 | +44.32% | | Administrative Expenses | (6.46) | (7.23) | 0.77 | -10.65% | | Finance Costs | (1.44) | (1.08) | (0.36) | +33.33% | - Net profit attributable to owners of the Company for the year ended April 30, 2025, was approximately **HK$1.01 million**, compared to a loss of HK$0.35 million in the same period of 2024, primarily due to increased site supervision fee income[15](index=15&type=chunk)[50](index=50&type=chunk) - The Board does not recommend the payment of a final dividend for the year ended April 30, 2025 (2024: nil)[46](index=46&type=chunk)[51](index=51&type=chunk) [Liquidity and Financial Resources](index=12&type=section&id=Management%20Discussion%20and%20Analysis_LiquidityAndFinancialResources) As of April 30, 2025, the Group's current assets were HK$62.32 million and current liabilities were HK$84.33 million, resulting in a current ratio of 0.74, with a negative debt-to-equity ratio due to equity in deficit. Liquidity and Financial Resources Overview | Indicator | April 30, 2025 (HK$ million) | April 30, 2024 (HK$ million) | Change (HK$ million) | | :--- | :--- | :--- | :--- | | Current Assets | 62.32 | 64.31 | (1.99) | | Of which: Cash and Cash Equivalents | 36.04 | 33.83 | 2.21 | | Of which: Trade and Other Receivables | 14.35 | 18.25 | (3.90) | | Current Liabilities | 84.33 | 87.52 | (3.19) | | Of which: Trade and Other Payables | 67.46 | 73.51 | (6.05) | | Current Ratio | 0.74 | 0.73 | +0.01 | - As of April 30, 2025, the Group's debt-to-equity ratio was approximately **negative 257.37%** (2024: approximately negative 220.67%), primarily due to the Group's equity being in deficit[56](index=56&type=chunk)[57](index=57&type=chunk)[61](index=61&type=chunk) - As of April 30, 2025, the Group had no pledged assets (2024: nil)[55](index=55&type=chunk)[60](index=60&type=chunk) [Foreign Exchange Exposure](index=13&type=section&id=Management%20Discussion%20and%20Analysis_ForeignExchangeExposure) The Group's majority of transactions, assets, and liabilities are denominated in Hong Kong Dollars, thus it did not face significant foreign exchange risk for the year ended April 30, 2025. - The Group's majority of transactions, assets, and liabilities are denominated in Hong Kong Dollars, and it did not face significant foreign exchange risk for the year ended April 30, 2025[63](index=63&type=chunk)[69](index=69&type=chunk) [Capital Commitments](index=13&type=section&id=Management%20Discussion%20and%20Analysis_CapitalCommitments) As of April 30, 2025, the Group had no significant capital commitments. - As of April 30, 2025, the Group had no significant capital commitments (2024: nil)[64](index=64&type=chunk)[70](index=70&type=chunk) [Employees and Remuneration Policy](index=13&type=section&id=Management%20Discussion%20and%20Analysis_EmployeesAndRemunerationPolicy) As of April 30, 2025, the Group had 70 employees, with staff costs of approximately HK$3.77 million, and reviews its remuneration policy annually based on individual performance. Employee Count and Staff Costs | Indicator | April 30, 2025 | April 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Employee Count | 70 | 73 | -3 | | Staff Costs (HK$ million) | 3.77 | 4.09 | -0.32 | - The Group reviews its employee remuneration policy and benefits annually, granting salary increases and discretionary bonuses based on individual performance assessments[65](index=65&type=chunk)[71](index=71&type=chunk) [Significant Investments, Major Acquisitions or Disposals of Subsidiaries and Affiliates, and Plans for Major Investments or Capital Assets](index=13&type=section&id=Management%20Discussion%20and%20Analysis_SignificantInvestments) As of April 30, 2025, the Group had no other plans for significant investments or capital assets. - As of April 30, 2025, the Group had no other plans for significant investments or capital assets[67](index=67&type=chunk)[72](index=72&type=chunk) [Contingent Liabilities](index=13&type=section&id=Management%20Discussion%20and%20Analysis_ContingentLiabilities) As of April 30, 2025, the Group had no significant contingent liabilities. - As of April 30, 2025, the Group had no significant contingent liabilities (2024: nil)[68](index=68&type=chunk)[73](index=73&type=chunk) [Capital Structure](index=14&type=section&id=Management%20Discussion%20and%20Analysis_CapitalStructure) For the year ended April 30, 2025, there was no change in the Company's capital structure, with a total of 1,577,200,000 issued shares at a par value of HK$0.01 per share. - For the years ended April 30, 2025 and 2024, there was no change in the Company's capital structure[75](index=75&type=chunk)[77](index=77&type=chunk) Issued Share Capital | Indicator | April 30, 2025 | April 30, 2024 | | :--- | :--- | :--- | | Issued Share Capital (HK$ million) | 15.77 | 15.77 | | Number of Issued Ordinary Shares (shares) | 1,577,200,000 | 1,577,200,000 | | Par Value Per Share (HK$) | 0.01 | 0.01 | [Principal Risks and Uncertainties](index=14&type=section&id=Management%20Discussion%20and%20Analysis_PrincipalRisksAndUncertainties) The Group faces principal risks including reliance on non-recurring government contracts, challenges in retaining key personnel, and potential adverse impacts from project delays. - The Group's past revenue was largely generated from non-recurring contracts awarded by the Hong Kong Government and statutory bodies, and a reduction in government spending could significantly impact financial performance[79](index=79&type=chunk) - The Group relies on its senior management and in-house engineers, and failure to retain staff could adversely affect business operations[79](index=79&type=chunk) - Any delays in the Group's projects could affect cash flow and adversely impact business and reputation[79](index=79&type=chunk) [Compliance with Laws and Regulations](index=15&type=section&id=Management%20Discussion%20and%20Analysis_ComplianceWithLawsAndRegulations) The Group's business primarily operates in Hong Kong and complies with relevant Hong Kong laws and regulations, with no material breaches reported as of the report date. - The Group's business is primarily conducted by its Hong Kong subsidiaries and complies with relevant Hong Kong laws and regulations[81](index=81&type=chunk)[85](index=85&type=chunk) - For the year ended April 30, 2025, and up to the date of this announcement, the Group had no material breaches of relevant current Hong Kong laws and regulations[81](index=81&type=chunk)[85](index=85&type=chunk) [Relationship with Stakeholders](index=15&type=section&id=Management%20Discussion%20and%20Analysis_RelationshipWithStakeholders) The Group maintains long-term relationships with clients, selects suppliers and subcontractors from an approved list without major disputes, and values employees by offering competitive remuneration and training. - The Group's clients primarily include Hong Kong government departments (e.g., Civil Engineering and Development Department, Lands Department), public bodies like the Hong Kong Housing Authority, and private companies[82](index=82&type=chunk)[86](index=86&type=chunk) - The Group maintains business relationships ranging from one to over ten years with most of its major clients[83](index=83&type=chunk)[86](index=86&type=chunk) - The Group maintains an internal list of approved subcontractors and selects them based on experience, scheduling, and fee quotations; no significant difficulties or disputes were encountered in procuring materials or appointing subcontractors during the year[88](index=88&type=chunk)[89](index=89&type=chunk)[94](index=94&type=chunk) - The Group offers competitive remuneration to attract and retain employees, regularly reviews compensation, and emphasizes employee training and development[90](index=90&type=chunk)[95](index=95&type=chunk) [Projects During the Year](index=16&type=section&id=Management%20Discussion%20and%20Analysis_ProjectDuringTheYear) For the years ended April 30, 2025 and 2024, the Group had no new significant projects. - For the years ended April 30, 2025 and 2024, the Group had no new significant projects[91](index=91&type=chunk)[96](index=96&type=chunk) [Material Uncertainty Related to Going Concern](index=16&type=section&id=Management%20Discussion%20and%20Analysis_MaterialUncertaintyRelatedToGoingConcern) As of April 30, 2025, the Group's net current liabilities and net liabilities were approximately HK$22,007,000 and HK$21,633,000 respectively, indicating a material uncertainty regarding its ability to continue as a going concern. Net Liabilities Situation | Indicator | April 30, 2025 (HK$) | April 30, 2024 (HK$) | | :--- | :--- | :--- | | Net Current Liabilities | 22,007,000 | 23,201,000 | | Net Liabilities | 21,633,000 | 22,643,000 | - These conditions indicate a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern[92](index=92&type=chunk)[97](index=97&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=16&type=section&id=Management%20Discussion%20and%20Analysis_PurchaseSaleOrRedemptionOfListedSecurities) For the year ended April 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities. - For the year ended April 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[93](index=93&type=chunk)[98](index=98&type=chunk) [Biographical Details of Directors and Senior Management](index=17&type=section&id=Biographical%20Details%20of%20Directors%20and%20Senior%20Management) [Executive Directors](index=17&type=section&id=Biographical%20Details%20of%20Directors%20and%20Senior%20Management_ExecutiveDirectors) This section provides biographical details of the two executive directors, Mr. Lo Ka Ming and Mr. Choi Pun Lap, including their age, appointment date, professional experience, academic qualifications, and other listed company directorships. - Mr. Lo Ka Ming (64 years old) was appointed on July 5, 2022, possesses over thirty years of experience in construction and property development, holds an MBA from The Chinese University of Hong Kong and a Bachelor of Architecture from The University of Hong Kong, and is a Chartered Quantity Surveyor of the Royal Institution of Chartered Surveyors and a member of the Hong Kong Institute of Surveyors[101](index=101&type=chunk)[102](index=102&type=chunk)[104](index=104&type=chunk) - Mr. Choi Pun Lap (47 years old) was appointed on September 30, 2021, has extensive experience in corporate finance transactions in Hong Kong, is a Fellow of the Hong Kong Institute of Certified Public Accountants, a member of CPA Australia, and holds a Master of Laws (Chinese Business Law) from Hong Kong Metropolitan University[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) [Independent Non-Executive Directors](index=19&type=section&id=Biographical%20Details%20of%20Directors%20and%20Senior%20Management_IndependentNonExecutiveDirectors) This section provides biographical details of the three independent non-executive directors, Mr. Leung Chun Yip, Mr. Foo Yan Ming, and Ms. Lam Yuen Man, including their age, appointment date, professional experience, academic qualifications, and other listed company directorships. - Mr. Leung Chun Yip (42 years old) was appointed on October 21, 2021, has over 19 years of experience in finance and asset management, and is a Certified Financial Risk Manager (FRM) and a Certified ESG Analyst (CESGA)[112](index=112&type=chunk)[113](index=113&type=chunk)[115](index=115&type=chunk) - Mr. Foo Yan Ming (60 years old) was appointed on October 21, 2021, has over 30 years of experience in accounting, auditing, internal control, and financial management, and is a Fellow of the Association of Chartered Certified Accountants[116](index=116&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) - Ms. Lam Yuen Man (55 years old) has over 20 years of experience in company secretarial matters, auditing, treasury, and finance, is a Fellow of the Association of Chartered Certified Accountants, and holds a Bachelor of Arts in Accountancy from The Hong Kong Polytechnic University[122](index=122&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) [Senior Management](index=22&type=section&id=Biographical%20Details%20of%20Directors%20and%20Senior%20Management_SeniorManagement) This section provides biographical details of senior management members Mr. Yu Sik Man (Project Director) and Mr. Lee Ho Cheong (Senior Project Manager), including their professional experience, academic qualifications, and professional designations. - Mr. Yu Sik Man is the founder and Project Director of the Group, with over 40 years of experience in the Hong Kong construction industry, holds a Bachelor of Civil Engineering from McGill University, Canada, and is a Chartered Engineer of the Engineering Council, UK[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - Mr. Lee Ho Cheong is a Senior Project Manager, joined the Group in July 2000, has over 28 years of experience in the Hong Kong construction industry, and holds a Certificate and Higher Certificate in Civil Engineering[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) [Corporate Governance Report](index=24&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Practices](index=24&type=section&id=Corporate%20Governance%20Report_CorporateGovernancePractices) The Board is committed to maintaining and implementing stringent corporate governance, promoting effective internal controls, and upholding high standards of ethics, transparency, accountability, and integrity to safeguard shareholders' interests and enhance corporate value. - The Board is committed to maintaining and implementing stringent corporate governance, promoting effective internal controls, and upholding high standards of ethics, transparency, accountability, and integrity[138](index=138&type=chunk)[140](index=140&type=chunk) - Good corporate governance is an indispensable framework for the Company to safeguard shareholders' interests, enhance corporate value, and formulate its business strategies and policies[138](index=138&type=chunk)[140](index=140&type=chunk) [Code of Conduct Regarding Securities Transactions by Directors](index=24&type=section&id=Corporate%20Governance%20Report_CodeOfConductRegardingSecuritiesTransactionsByDirectors) The Company has adopted a code of conduct for securities transactions by directors, no less stringent than required by the GEM Listing Rules, and all directors have confirmed compliance for the year ended April 30, 2025. - The Company has adopted a code of conduct for securities transactions by directors, with terms no less stringent than the required standards under Rules 5.48 to 5.67 of the GEM Listing Rules[139](index=139&type=chunk)[141](index=141&type=chunk)[148](index=148&type=chunk)[152](index=152&type=chunk) - All directors have confirmed compliance with the code of conduct for the year ended April 30, 2025, and the Company found no instances of non-compliance by relevant employees with the securities dealing code[139](index=139&type=chunk)[141](index=141&type=chunk)[149](index=149&type=chunk)[152](index=152&type=chunk) [Corporate Governance Code](index=25&type=section&id=Corporate%20Governance%20Report_CorporateGovernanceCode) The Company complied with the applicable code provisions of the Corporate Governance Code during the year, with two deviations related to the separation of Chairman and Chief Executive roles and meetings with INEDs, due to no Chairman being appointed. - The Company complied with the applicable code provisions of the Corporate Governance Code during the year, except for deviations from Code Provisions A.2.1 and A2.7[143](index=143&type=chunk)[146](index=146&type=chunk) - Deviation from A.2.1: The Company has no Chairman and Chief Executive, with these roles currently jointly held by executive directors, but the Board believes this arrangement still ensures prompt decision-making[144](index=144&type=chunk)[146](index=146&type=chunk) - Deviation from A2.7: No Chairman was appointed during the year, thus no meetings were arranged between the Chairman and independent non-executive directors without other directors present[145](index=145&type=chunk)[147](index=147&type=chunk) [Board of Directors](index=26&type=section&id=Corporate%20Governance%20Report_BoardOfDirectors) The Board oversees the Group's business, strategic decisions, and performance, ensuring effective internal controls and risk management, and promoting integrity, with a balanced composition of executive and independent non-executive directors. - The Board is responsible for overseeing the Group's business, strategic decisions, and performance, making objective decisions in the best interests of the Company, and ensuring the establishment of sound internal control and risk management systems[150](index=150&type=chunk)[153](index=153&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk) - Board members generally agree that the Board operates well and are satisfied with its composition and efficiency[151](index=151&type=chunk)[154](index=154&type=chunk) - The Group has adopted an anti-corruption and whistleblowing policy to uphold a tradition of integrity in its operations[156](index=156&type=chunk)[158](index=158&type=chunk) Board Composition | Category | Members | | :--- | :--- | | Executive Directors | Mr. Lo Ka Ming, Mr. Choi Pun Lap | | Independent Non-Executive Directors | Mr. Leung Chun Yip, Ms. Lam Yuen Man, Mr. Foo Yan Ming | [Independent Non-Executive Directors](index=29&type=section&id=Corporate%20Governance%20Report_IndependentNonExecutiveDirectors) Independent Non-Executive Directors (INEDs) ensure high standards of regulatory reporting and independent judgment, with their number and expertise meeting GEM Listing Rules requirements, and the Company provides mechanisms for independent advice. - Independent non-executive directors are responsible for ensuring the Company's regulatory reporting meets high standards and providing balance on the Board for effective independent judgment on company conduct and operations[179](index=179&type=chunk) - For the year ended April 30, 2025, the Board included three independent non-executive directors, constituting more than one-third of the Board, with at least one possessing appropriate professional qualifications or expertise in accounting or relevant financial management, meeting GEM Listing Rules requirements[165](index=165&type=chunk)[166](index=166&type=chunk)[168](index=168&type=chunk) - The Company has established mechanisms to ensure the Board has access to independent advice and information, including directors seeking professional advice from external independent parties such as legal advisors and auditors[167](index=167&type=chunk)[168](index=168&type=chunk)[179](index=179&type=chunk) [Confirmation of Independence](index=30&type=section&id=Corporate%20Governance%20Report_ConfirmationOfIndependence) The current independent non-executive directors have submitted annual confirmations of independence in accordance with Rule 5.09 of the GEM Listing Rules, and the Company considers all independent non-executive directors to be independent. - The current independent non-executive directors have submitted their annual confirmations of independence in accordance with Rule 5.09 of the GEM Listing Rules, and the Company considers all independent non-executive directors to be independent[170](index=170&type=chunk)[174](index=174&type=chunk) [Appointment/Re-election of Directors](index=30&type=section&id=Corporate%20Governance%20Report_AppointmentReElectionOfDirectors) All directors, including independent non-executive directors, are appointed for a three-year term and are subject to retirement by rotation and re-election in accordance with the Company's articles of association. - All directors, including independent non-executive directors, are appointed for a three-year term[171](index=171&type=chunk)[175](index=175&type=chunk) - In accordance with Article 108 of the Articles of Association, one-third of the directors shall retire by rotation at each annual general meeting, provided that each director shall retire by rotation at least once every three years and shall be eligible for re-election[172](index=172&type=chunk)[175](index=175&type=chunk) [Responsibilities and Accountabilities of Directors](index=31&type=section&id=Corporate%20Governance%20Report_ResponsibilitiesAndAccountabilitiesOfDirectors) The Board is collectively responsible for leading and controlling the Company's affairs, formulating strategy, monitoring performance, and ensuring sound internal control and risk management systems, with directors having access to information and independent advice, and covered by liability insurance. - The Board is responsible for leading and controlling the Company, and is collectively responsible for directing and supervising the Company's affairs, leading and guiding management by formulating strategy and overseeing its implementation, monitoring the Group's operational and financial performance, and ensuring the establishment of sound internal control and risk management systems[177](index=177&type=chunk)[178](index=178&type=chunk)[181](index=181&type=chunk)[183](index=183&type=chunk) - All directors have full and timely access to all Company information and may, when appropriate, seek independent professional advice at the Company's expense[179](index=179&type=chunk)[183](index=183&type=chunk) - The Company has arranged appropriate insurance for the liabilities of directors and senior officers for any legal actions taken against them due to company activities[182](index=182&type=chunk)[184](index=184&type=chunk) [Directors' Continuing Professional Development Programme](index=32&type=section&id=Corporate%20Governance%20Report_DirectorsContinuingProfessionalDevelopmentProgramme) Directors must stay informed of regulatory developments to effectively discharge their duties, with formal training for new appointees and encouragement for all to participate in ongoing professional development at the Company's expense. - Directors must stay informed of regulatory developments and changes to effectively discharge their duties and ensure their appropriate contribution to the Board[185](index=185&type=chunk)[189](index=189&type=chunk) - Each newly appointed director will receive formal, comprehensive, and tailored training, and all directors will be informed of the latest developments in statutory and regulatory requirements[186](index=186&type=chunk)[187](index=187&type=chunk)[189](index=189&type=chunk) - All directors should continuously participate in appropriate professional development to develop and update their knowledge and skills, and are encouraged to attend relevant training courses, with costs borne by the Company[188](index=188&type=chunk)[189](index=189&type=chunk) [Board Diversity Policy](index=32&type=section&id=Corporate%20Governance%20Report_BoardDiversityPolicy) The Company adopted a Board Diversity Policy since its listing date, aiming to enhance Board performance across various measurable aspects, with the Nomination Committee monitoring its implementation and confirming objectives achieved. - The Company adopted a Board Diversity Policy since its listing date, aiming to enhance the quality of Board performance across measurable aspects such as gender, age, cultural and educational background, professional experience, skills, knowledge, and length of service[191](index=191&type=chunk)[192](index=192&type=chunk)[194](index=194&type=chunk) - The Nomination Committee is responsible for monitoring the implementation of the Board Diversity Policy and believes the Group has achieved its policy objectives for the year ended April 30, 2025[193](index=193&type=chunk)[194](index=194&type=chunk) Board Composition Diversity Overview (as of the report date) | Indicator | Executive Directors | Independent Non-Executive Directors | Total | | :--- | :--- | :--- | :--- | | Gender: Male | 2 | 2 | 4 | | Gender: Female | 0 | 1 | 1 | | Ethnicity: Chinese | 2 | 3 | 5 | | Age Group: 41-50 years | 1 | 1 | 2 | | Age Group: 51-60 years | 0 | 2 | 2 | | Age Group: 61-70 years | 1 | 0 | 1 | | Board Service Tenure: 0-3 years | 2 | 3 | 5 | | Board Service Tenure: 3-6 years | 0 | 0 | 0 | [Corporate Governance Structure](index=34&type=section&id=Corporate%20Governance%20Report_CorporateGovernanceStructure) The Company has established a corporate governance structure comprising the Board, Audit Committee, Remuneration Committee, and Nomination Committee, each with written terms of reference to assist the Board in overseeing management functions. - The Company's corporate governance structure comprises the Board, Audit Committee, Remuneration Committee, and Nomination Committee[197](index=197&type=chunk)[198](index=198&type=chunk) - Each committee has established written terms of reference, published on the Group's website and the Stock Exchange's website[197](index=197&type=chunk)[198](index=198&type=chunk) [Board and General Meetings](index=35&type=section&id=Corporate%20Governance%20Report_BoardAndGeneralMeetings) The Board holds at least four regular meetings annually, with minutes detailing matters considered and decisions made, and an Annual General Meeting was held on October 18, 2024. - The Board shall hold at least four regular meetings annually, approximately once per quarter[203](index=203&type=chunk)[207](index=207&type=chunk) - Notices for certain regular Board meetings were issued less than fourteen days in advance, but were held with the consent of all directors at the time[203](index=203&type=chunk)[207](index=207&type=chunk) 2024 Board and Committee Meeting Attendance | Director | Annual General Meeting | Audit Committee Meetings | Board Meetings | Nomination Committee Meetings | Remuneration Committee Meetings | | :--- | :--- | :--- | :--- | :--- | :--- | | Number of Meetings | 1 | 3 | 4 | 2 | 1 | | Mr. Choi Pun Lap | 1/1 | Not Applicable | 4/4 | Not Applicable | Not Applicable | | Mr. Lo Ka Ming | 1/1 | Not Applicable | 4/4 | Not Applicable | Not Applicable | | Mr. Foo Yan Ming | 1/1 | 3/3 | 4/4 | 2/2 | 1/1 | | Mr. Leung Chun Yip | 1/1 | 3/3 | 4/4 | 2/2 | 1/1 | | Ms. Lam Yuen Man | 0/1 | 0/3 | 1/4 | 0/2 | 0/1 | - Minutes of Board meetings and Board committee meetings are drafted by the company secretary and fully record the details of matters considered and decisions reached[204](index=204&type=chunk)[207](index=207&type=chunk

Item I. Financial Data This section presents the Company's consolidated financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in shareholders' equity [Consolidated Balance Sheet](index=2&type=section&id=Consolidated%20Balance%20Sheet) Total assets grew 9% to 2,177,048 thousand RMB by June 30, 2025, driven by current asset and liability growth, while shareholders' equity slightly decreased | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,177,048 | 1,996,672 | +9.04% | | Total Liabilities | 938,906 | 752,845 | +24.71% | | Total Shareholders' Equity | 1,238,142 | 1,243,827 | -0.46% | - Inventories within current assets increased from **212,769 thousand RMB** to **313,527 thousand RMB** (**+47.35%**), and accounts receivable increased from **307,419 thousand RMB** to **336,794 thousand RMB** (**+9.56%**)[3](index=3&type=chunk) - Short-term borrowings within current liabilities increased from **79,921 thousand RMB** to **132,925 thousand RMB** (**+66.33%**), and contract liabilities increased from **159,391 thousand RMB** to **251,008 thousand RMB** (**+57.49%**)[4](index=4&type=chunk) [Consolidated Income Statement](index=4&type=section&id=Consolidated%20Income%20Statement) H1 2025 operating revenue grew 10% to 981,713 thousand RMB, with net profit up 28.47% due to revenue growth and reduced impairment losses | Metric | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Operating Revenue | 981,713 | 894,477 | 9.75% | | Net Profit | 196,019 | 152,582 | 28.47% | | Net Profit Attributable to Owners of the Parent Company | 194,736 | 152,453 | 27.74% | | Basic Earnings Per Share (RMB) | 0.469 | 0.367 | 27.79% | - Asset and credit impairment losses and fair value change losses significantly decreased from **52,823 thousand RMB** in H1 2024 to **6,106 thousand RMB** in H1 2025[5](index=5&type=chunk) [Condensed Consolidated Cash Flow Statement](index=5&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) H1 2025 saw increased operating cash inflow, expanded investing and financing outflows, leading to a net decrease in cash and cash equivalents | Cash Flow Activity | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | Change (thousand RMB) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 189,159 | 71,052 | +118,107 | | Net Cash Flow from Investing Activities | (65,296) | (61,377) | -3,919 | | Net Cash Flow from Financing Activities | (150,766) | (107,441) | -43,325 | | Net Change in Cash and Cash Equivalents | (24,764) | (95,714) | +70,950 | | Cash and Cash Equivalents at Period-End | 515,319 | 515,018 | +301 | [Condensed Consolidated Statement of Changes in Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Shareholders'%20Equity) Total shareholders' equity slightly decreased in H1 2025, mainly due to share capital and capital reserve changes, despite growth in other comprehensive income and retained earnings - Total shareholders' equity at period-end was **1,238,142 thousand RMB**, a slight decrease from **1,243,827 thousand RMB** at the beginning of the period[7](index=7&type=chunk) - Share capital changed by **(702) thousand RMB**, and capital reserves changed by **(25,661) thousand RMB**[7](index=7&type=chunk) - Other comprehensive income changed by **11,377 thousand RMB**, and retained earnings for the current period changed by **7,947 thousand RMB**[7](index=7&type=chunk) Notes to the Consolidated Financial Statements This section details the Company's accounting policies, estimates, and methods for preparing consolidated financial statements, ensuring data accuracy and comparability [1. Basis of Preparation of Financial Statements](index=7&type=section&id=1.%20Basis%20of%20Preparation%20of%20Financial%20Statements) Financial statements are prepared on a going concern basis, adhering to Chinese and Hong Kong accounting and disclosure standards, consistent with 2024 policies - Adheres to the **Enterprise Accounting Standards** and related regulations issued by the Ministry of Finance of China[8](index=8&type=chunk) - Complies with the **China Securities Regulatory Commission's (CSRC) "No. 15 Rules for Information Disclosure by Companies Issuing Securities to the Public – General Provisions on Financial Reporting" (2023 Revision)**[8](index=8&type=chunk) - Also complies with the disclosure requirements of the **Hong Kong Companies Ordinance** and the **Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited**[8](index=8&type=chunk) [2. Significant Accounting Policies, Accounting Estimates, and Methods of Preparation of Consolidated Financial Statements](index=7&type=section&id=2.%20Significant%20Accounting%20Policies%2C%20Accounting%20Estimates%2C%20and%20Methods%20of%20Preparation%20of%20Consolidated%20Financial%20Statements) This section outlines the key accounting policies, estimates, and consolidation methods used to ensure accurate and comparable financial reporting [(1) Accounting Period](index=7&type=section&id=(1)%20Accounting%20Period) The reporting period covers the six months from January 1 to June 30, 2025 - This reporting period covers the **six months from January 1 to June 30, 2025**[9](index=9&type=chunk) [(2) Functional Currency](index=7&type=section&id=(2)%20Functional%20Currency) The Company uses RMB as its functional currency, with foreign subsidiaries converting their local currency financial statements to RMB - **RMB** is adopted as the functional currency[10](index=10&type=chunk) - Overseas subsidiaries use the currency of their primary economic environment as their functional currency, converting to **RMB** when preparing financial statements[10](index=10&type=chunk) [(3) Method of Preparation of Consolidated Financial Statements](index=8&type=section&id=(3)%20Method%20of%20Preparation%20of%20Consolidated%20Financial%20Statements) All subsidiaries are included in the consolidated financial statements, with adjustments for inconsistent policies and elimination of intercompany transactions - All subsidiaries are **included in the scope of consolidated financial statements**[11](index=11&type=chunk) - When subsidiaries' accounting policies or periods are inconsistent with the Company's, **adjustments are made to ensure consistency**[11](index=11&type=chunk) - Intercompany transactions between the Company and its subsidiaries, and among subsidiaries, are **eliminated during consolidation**[11](index=11&type=chunk) [3. Operating Revenue](index=8&type=section&id=3.%20Operating%20Revenue) Operating revenue primarily stems from automotive repair equipment sales and online software upgrade services, with main business revenue growing 9.1% year-over-year in H1 2025 - Main business revenue includes **sales of automotive repair equipment** and **provision of online software purchase and upgrade services**[12](index=12&type=chunk) | Revenue Type | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Main Business Revenue | 954,753 | 875,129 | 9.10% | | Other Business Revenue: Rental Income | 26,960 | 19,348 | 39.35% | | **Total Operating Revenue** | **981,713** | **894,477** | **9.75%** | [4. Accounts Receivable](index=9&type=section&id=4.%20Accounts%20Receivable) Net accounts receivable reached 336,794 thousand RMB at period-end, an increase from year-start, with customer credit terms typically 30 to 210 days - Net accounts receivable was **336,794 thousand RMB**, compared to **307,419 thousand RMB** at the beginning of the year[15](index=15&type=chunk) - The Company primarily transacts with customers on **credit terms ranging from 30 to 210 days**[14](index=14&type=chunk) | Aging | Period-End Amount (thousand RMB) | Beginning-of-Year Amount (thousand RMB) | | :--- | :--- | :--- | | Within 1 year | 344,873 | 324,007 | | Over 1 year | 23,188 | 14,097 | | **Total** | **368,061** | **338,104** | [5. Inventories](index=9&type=section&id=5.%20Inventories) Total inventories at period-end were 313,527 thousand RMB, a significant increase from year-start, mainly due to higher finished goods and raw materials - Total inventories at period-end were **313,527 thousand RMB**, up **47.35%** from **212,769 thousand RMB** at the beginning of the year[15](index=15&type=chunk) - Finished goods increased from **183,770 thousand RMB** at the beginning of the year to **261,308 thousand RMB**[15](index=15&type=chunk) - Raw materials increased from **12,680 thousand RMB** at the beginning of the year to **32,067 thousand RMB**[15](index=15&type=chunk) [6. Accounts Payable](index=10&type=section&id=6.%20Accounts%20Payable) Total accounts payable at period-end was 249,830 thousand RMB, an increase from year-start, with most payables due within one year - Total accounts payable at period-end was **249,830 thousand RMB**, compared to **201,537 thousand RMB** at the beginning of the year[16](index=16&type=chunk) - Accounts payable due within one year accounted for **99.77%** (**249,270 thousand RMB**) of the total[16](index=16&type=chunk) [7. Retained Earnings](index=10&type=section&id=7.%20Retained%20Earnings) Retained earnings were 320,700 thousand RMB at period-end, reflecting net profit attributable to the parent company, partially offset by final dividend distribution - Retained earnings at period-end were **320,700 thousand RMB**[17](index=17&type=chunk) - Net profit attributable to owners of the parent company for the current period was **194,736 thousand RMB**[17](index=17&type=chunk) - A final dividend of **186,789 thousand RMB** was distributed[17](index=17&type=chunk) [8. Asset and Credit Impairment Losses and Fair Value Change Losses](index=10&type=section&id=8.%20Asset%20and%20Credit%20Impairment%20Losses%20and%20Fair%20Value%20Change%20Losses) H1 2025 saw a significant reduction in asset and credit impairment losses, with no material goodwill impairment due to strong overseas subsidiary performance - Asset and credit impairment losses and fair value change losses decreased from **52,823 thousand RMB** in the same period last year to **6,106 thousand RMB** in the current period[5](index=5&type=chunk)[17](index=17&type=chunk) - Based on management's assessment, there were **no significant credit impairment events related to accounts receivable** during the period[17](index=17&type=chunk) - Due to the strong performance of overseas subsidiaries in H2 2024 and 2025, there was **no significant asset impairment of goodwill for overseas subsidiaries** during the period[17](index=17&type=chunk) [9. Income Tax Expense](index=11&type=section&id=9.%20Income%20Tax%20Expense) The Company and its subsidiaries are subject to varying income tax rates, from tax-exempt to 29.84%, reflecting diverse operating regions and business nature - The Company and Shenzhen Launch Software Development Co., Ltd. are subject to an income tax rate of **15.00%**[19](index=19&type=chunk) - Launch Europe GmbH is subject to **19.00%**, and Launch Italy GmbH is subject to **24.00%**[19](index=19&type=chunk) - Launch Tech International Mena DMCC is subject to a **0.00%** tax rate, and Shenzhen Yixinyiyi Software Development Co., Ltd. is **tax-exempt**[19](index=19&type=chunk) [10. Earnings Per Share](index=12&type=section&id=10.%20Earnings%20Per%20Share) Basic earnings per share for H1 2025 was 0.469 RMB, an increase from the prior year, with no dilutive ordinary shares outstanding [(1) Basic Earnings Per Share](index=12&type=section&id=(1)%20Basic%20Earnings%20Per%20Share) This section details the calculation of basic earnings per share for the current and prior periods | Item | Current Year | Prior Year | | :--- | :--- | :--- | | Consolidated Net Profit Attributable to Ordinary Equity Holders of the Parent Company | 194,736 thousand RMB | 152,453 thousand RMB | | Weighted Average Number of Ordinary Shares Outstanding of the Parent Company | 415,554,267 shares | 415,788,100 shares | | Basic Earnings Per Share (RMB/share) | 0.469 | 0.367 | [(2) Diluted Earnings Per Share](index=12&type=section&id=(2)%20Diluted%20Earnings%20Per%20Share) No diluted earnings per share are presented as there were no dilutive potential ordinary shares in either period - Diluted earnings per share are **not presented as there were no potential ordinary shares with dilutive effect** in either 2025 or 2024[22](index=22&type=chunk) [11. Dividends](index=12&type=section&id=11.%20Dividends) The Board declared an interim dividend of RMB 0.31 per share for H1 2025, an increase from 2024, with distribution expected by September 12, 2025 - The Board resolved to declare an interim dividend of **RMB 0.31 per share** for the six months ended June 30, 2025[23](index=23&type=chunk) - The interim dividend for the same period in 2024 was **RMB 0.20 per share**[23](index=23&type=chunk) - Distribution is expected to be completed **on or before September 12, 2025**[23](index=23&type=chunk) [12. Contingent Liabilities](index=12&type=section&id=12.%20Contingent%20Liabilities) As of the end of the reporting period, the Company had no material contingent liabilities - The Company had **no material contingent liabilities** at the end of the reporting period[24](index=24&type=chunk) [13. Asset Pledges](index=12&type=section&id=13.%20Asset%20Pledges) As of June 30, 2025, the Company pledged land, buildings, and structures with an original value of approximately 264 million RMB as collateral for bank loans - The Company pledged land, buildings, and structures with an original value of approximately **264 million RMB** as collateral for certain bank loans[25](index=25&type=chunk) [14. Capital and Lease Commitments](index=12&type=section&id=14.%20Capital%20and%20Lease%20Commitments) As of June 30, 2025, the Company had no material capital and lease commitments - As of June 30, 2025, the Company had **no material capital and lease commitments**[26](index=26&type=chunk) [15. Post-Balance Sheet Events](index=12&type=section&id=15.%20Post-Balance%20Sheet%20Events) The Company has no material post-balance sheet events that require disclosure - The Company has **no material post-balance sheet events that require disclosure**[27](index=27&type=chunk) Item II. Management Discussion and Analysis This section offers a comprehensive review of the Company's financial performance, operational highlights, and strategic outlook for the reporting period [H1 2025 Review](index=13&type=section&id=H1%202025%20Review) In H1 2025, the Company achieved dual growth in revenue and net profit, driven by new strategies and significant progress in overseas business and software services [Financials](index=13&type=section&id=Financials) The Company achieved significant financial growth in H1 2025, with increased revenue, net profit, and improved cost control, driven by strong overseas performance and software sales - Operating revenue reached **982 million RMB**, a year-over-year increase of approximately **10%**; net profit was **196 million RMB**, up **28%** year-over-year; net profit margin was **20%**, an increase of **3 percentage points** year-over-year[29](index=29&type=chunk) - Overseas business (including overseas e-commerce) revenue was **746 million RMB**, accounting for approximately **76% of total revenue**, marking a historical high for the same period[29](index=29&type=chunk) - Customer software purchases amounted to **104 million RMB**, a year-over-year increase of **28%**; customer remote diagnostic service purchases amounted to **8.7 million RMB**, up **53%** year-over-year; data revenue was **7.9 million RMB**, growing **61%** year-over-year[29](index=29&type=chunk) - The cost-to-revenue ratio for main business decreased by **1 percentage point**; the four expenses (management, R&D, selling, and financial expenses) accounted for approximately **30% of main business revenue**, indicating continuous improvement in cost control[29](index=29&type=chunk) [Customers](index=14&type=section&id=Customers) The Company serves a broad customer base across the automotive industry, with a large global active user base and extensive diagnostic connections - Customers cover all segments of the automotive industry, including **repair shops, mechanics, OEMs, car owners, automotive repair schools, insurance companies, and used car dealers**[31](index=31&type=chunk) - The Company has cumulatively established connections with **over 390 million vehicles globally** through automotive diagnostic equipment, with **over 3.5 million annual active diagnostic device terminals** generating **1.05 million automotive diagnostic reports daily**[31](index=31&type=chunk) - End-users are spread globally, with approximately **1.3 million annual active users in China** and about **1 million in the US**; **6,201 customer training sessions** were held worldwide in the first half of the year[32](index=32&type=chunk) [Internal Operations](index=14&type=section&id=Internal%20Operations) The Company launched three strategic initiatives—ADS, AAS, and EVS—to enhance intelligent diagnostics, AI-driven automotive services, and new energy vehicle services - Launched three major strategies: **ADS (Intelligent Diagnostic Services), AAS (Intelligent Automotive Services), and EVS (New Energy Vehicle Services)**, achieving positive phased results[33](index=33&type=chunk) - **ADS aims to enhance the intelligence of automotive diagnostics**, enable full voice control of diagnostic hardware, build intelligent automotive fault analysis and prediction systems, and intensify overseas expansion efforts[33](index=33&type=chunk) - **AAS utilizes large AI models**, integrating multi-dimensional data and applying models like DeepSeek and Tongyi Qianwen to provide automotive AI services for car owners and repair shops, with the Launch AI automotive repair intelligent agent integrated into the diagnostic equipment workflow[33](index=33&type=chunk) - **EVS targets new energy vehicles**, selling new energy repair equipment through Launch EVS stations and providing repair bay modifications and after-sales services, with approximately **150 new energy stations established globally**[33](index=33&type=chunk) [Learning and Growth](index=15&type=section&id=Learning%20and%20Growth) The Company continues to invest in innovation, securing new patents and maintaining a high proportion of R&D personnel - **21 authorized invention patents** were obtained in the first half of the year[34](index=34&type=chunk) - As of June 30 this year, **R&D personnel accounted for approximately 49% of the total workforce**[34](index=34&type=chunk) [Outlook and Future Strategies](index=15&type=section&id=Outlook%20and%20Future%20Strategies) The Company aims to transform into a global automotive AI leader by integrating strengths, leveraging AI, and focusing on hardware, software, services, and data - With **30 years of focus and deep technological accumulation in automotive diagnostics**, the Company will integrate its strengths, based on three major strategies, with hardware, software, services, and data as cornerstones, transforming from a manufacturing enterprise to an intelligent one[35](index=35&type=chunk) - Applying **AI technology to the automotive industry**, striving to become a **global leading brand in automotive AI**[35](index=35&type=chunk) - Future strategies include: **increasing overseas business scale**, expanding super remote diagnostic transaction volume, developing Launch AI, and significantly boosting revenue from the four core businesses; **establishing digital and intelligent customer relationships**; continuing to **reduce operating and product costs** by improving efficiency through AI and advanced tools; and **attracting more strategic talent**[36](index=36&type=chunk) [Financial Analysis](index=16&type=section&id=Financial%20Analysis) This section details the Company's financial position, including profitability, asset-liability structure, and cash flow, showing improved profitability but increased liabilities [Profitability](index=16&type=section&id=Profitability) The Company's profitability improved in H1 2025, driven by increased sales and reduced impairment losses, leading to higher gross and net profit margins | Metric | Current Year | Prior Year | | :--- | :--- | :--- | | Main Business Gross Profit Margin | 48.0% | 47.3% | | Net Profit Margin | 20.0% | 17.1% | - H1 profit changes were primarily driven by a **48 million RMB increase in gross profit due to higher sales** and a **47 million RMB reduction in asset and credit provisions**, offsetting increases in operating, R&D, and financial expenses[37](index=37&type=chunk) - H1 revenue and gross profit increased, with the **gross profit margin effectively rising to 48%** and the **net profit margin also increasing to 20%**[38](index=38&type=chunk) [Assets, Liabilities, and Shareholders' Equity](index=17&type=section&id=Assets%2C%20Liabilities%2C%20and%20Shareholders'%20Equity) Total assets increased by 9% due to higher receivables, inventories, and construction in progress, while total liabilities rose by 25% mainly from increased borrowings - Total assets were **2.177 billion RMB**, an increase of **9%** from the beginning of the year, primarily due to increases in accounts receivable, inventories, and construction in progress[40](index=40&type=chunk) - Total liabilities were **939 million RMB**, an increase of **25%** from the beginning of the year, mainly due to increased borrowings[40](index=40&type=chunk) - The leverage ratio (total liabilities/shareholders' equity) at period-end was **0.76** (beginning of period: **0.61**)[40](index=40&type=chunk) [Principal Sources and Uses of Funds](index=17&type=section&id=Principal%20Sources%20and%20Uses%20of%20Funds) This section details the Company's cash flows from operating, investing, and financing activities, outlining the primary sources and applications of funds [Cash Flow from Operating Activities](index=17&type=section&id=Cash%20Flow%20from%20Operating%20Activities) Net cash inflow from operating activities for the reporting period was 189 million RMB, primarily from sales and used for operational expenses - Net cash inflow from operating activities for the reporting period was **189 million RMB**[42](index=42&type=chunk) - Cash inflows primarily originated from **revenue from goods sales**, while cash outflows were mainly for **expenditures related to production and operating activities**[42](index=42&type=chunk) [Cash Flow from Investing Activities](index=17&type=section&id=Cash%20Flow%20from%20Investing%20Activities) Net cash outflow from investing activities was 65 million RMB, mainly for property, equipment, R&D, and subsidiary acquisitions, funded primarily by internal resources - Net cash outflow from investing activities was **65 million RMB**[43](index=43&type=chunk) - A portion was used for **capital expenditures on commercial properties, equipment, and R&D**, followed by **cash paid for the acquisition of subsidiaries**[43](index=43&type=chunk) - These expenditures were primarily **funded by the Company's internal resources**[43](index=43&type=chunk) [Cash Flow from Financing Activities](index=17&type=section&id=Cash%20Flow%20from%20Financing%20Activities) Net cash outflow from financing activities was 151 million RMB, mainly for dividend payments and bank loan repayments - Net cash outflow from financing activities was **151 million RMB**[44](index=44&type=chunk) - Primarily for **final dividend payments and repayment of bank loans**[44](index=44&type=chunk) Item III. Other Significant Matters This section covers various non-financial but significant corporate matters, including changes in consolidation scope, audit committee reviews, and corporate governance [1. Scope of Consolidation](index=18&type=section&id=1.%20Scope%20of%20Consolidation) There were no material changes to the Company's scope of consolidation during the reporting period - There were **no material changes to the scope of consolidation** during the reporting period[45](index=45&type=chunk) [2. Audit Committee Review of Interim Financial Report](index=18&type=section&id=2.%20Audit%20Committee%20Review%20of%20Interim%20Financial%20Report) The Company's Board Audit Committee has reviewed and confirmed the 2025 interim financial report - The Company's Board Audit Committee has **reviewed and confirmed the 2025 interim financial report**[46](index=46&type=chunk) [3. Corporate Governance Code](index=18&type=section&id=3.%20Corporate%20Governance%20Code) The Company consistently complied with the Corporate Governance Code provisions of the HKEX Listing Rules throughout the reporting period - The Company has consistently **complied with the code provisions of the Corporate Governance Code, Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited**, throughout the reporting period[47](index=47&type=chunk) [4. Model Code for Securities Transactions by Directors and Supervisors](index=18&type=section&id=4.%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Supervisors) The Company adopted and complied with a code of conduct no less exacting than the Model Code, with all directors and supervisors adhering to it - The Company has adopted a **standard code of conduct for securities transactions by directors and supervisors** that is no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[48](index=48&type=chunk) - Following specific inquiries with all directors and supervisors, the Company confirmed that each director and supervisor has **complied with the standards for securities transactions by directors** as set out in the Model Code for the six months ended June 30, 2025[48](index=48&type=chunk) [5. Pre-emptive Rights](index=18&type=section&id=5.%20Pre-emptive%20Rights) There are no pre-emptive rights provisions under the Company's articles or Chinese law requiring proportional new share offerings to existing shareholders - There are **no provisions for pre-emptive rights** under the Company's articles of association or Chinese law that require the Company to offer new shares proportionally to existing shareholders[49](index=49&type=chunk) [6. Customers and Suppliers](index=18&type=section&id=6.%20Customers%20and%20Suppliers) Top five customers contributed 33% of revenue, top five suppliers 78% of purchases, with no director or major shareholder interests in them - The Company's top five customers contributed approximately **320 million RMB** to total operating revenue for the period, representing about **33%** of the total; the largest customer accounted for approximately **11%** of total operating revenue for the period[50](index=50&type=chunk) - The Company's top five suppliers accounted for total purchases of approximately **494 million RMB**, representing about **78%** of total purchases for the period; the largest supplier accounted for approximately **29%** of total purchases for the period[50](index=50&type=chunk) - No director, director's associate, or any shareholder (to the best of the Board's knowledge, owning more than 5% of the listed issuer's share capital) held any interest in the aforementioned customers or suppliers[50](index=50&type=chunk) [7. Share Capital](index=19&type=section&id=7.%20Share%20Capital) The Company repurchased and cancelled H shares during the period, with no other share transactions or option grants by the Company or its subsidiaries - During the reporting period, save for the **repurchase of 3,057,500 H shares** and the **cancellation of 701,500 H shares**, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's shares, nor were any share options granted under a share option scheme[51](index=51&type=chunk) - The remaining **2,356,000 repurchased H shares were cancelled on July 16, 2025**[51](index=51&type=chunk) Item IV. Interests of Directors, Supervisors, and Chief Executives in Securities This section details the equity interests and short positions held by the Company's directors, chief executives, and supervisors in the Company and its associated corporations [(a) Interests and Short Positions of Directors, Chief Executives, and Supervisors in the Share Capital of the Company and its Associated Corporations](index=19&type=section&id=(a)%20Interests%20and%20Short%20Positions%20of%20Directors%2C%20Chief%20Executives%2C%20and%20Supervisors%20in%20the%20Share%20Capital%20of%20the%20Company%20and%20its%20Associated%20Corporations) Director Mr. Liu Xin held significant beneficial and controlled corporate interests in the Company's domestic shares, totaling 73.21% of issued domestic shares and 19.08% of all issued shares - Mr. Liu Xin held a beneficial owner interest in **79,200,000 domestic shares**, representing **31.24% of the Company's issued domestic shares** and **19.08% of all the Company's issued shares**[52](index=52&type=chunk) - Mr. Liu Xin held additional domestic shares through controlled corporate interests, including **59,318,400 shares (23.39% of issued domestic shares)**, **11,938,200 shares (4.71%)**, and **35,160,000 shares (13.87%)**[52](index=52&type=chunk) - Save as disclosed above, as of June 30, 2025, none of the Company's directors, chief executives, or supervisors had any personal, family, corporate, or other interests or short positions in the shares, debentures, or underlying shares of the Company or any of its associated corporations[53](index=53&type=chunk) [(b) Persons and Substantial Shareholders with Interests or Short Positions Disclosable under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance](index=20&type=section&id=(b)%20Persons%20and%20Substantial%20Shareholders%20with%20Interests%20or%20Short%20Positions%20Disclosable%20under%20Divisions%202%20and%203%20of%20Part%20XV%20of%20the%20Securities%20and%20Futures%20Ordinance) Director Mr. Liu Xin indirectly held significant interests in the Company's domestic shares through his control over several entities - Mr. Liu Xin holds a **60.00% interest in Shenzhen Langqu Technology Development Co., Ltd.**, which holds approximately **23.39% of the Company's issued domestic shares**, and Mr. Liu Xin is deemed to have an interest in these shares[54](index=54&type=chunk) - Mr. Liu Xin holds a **40.00% interest in Shenzhen Deshiyu Investment Co., Ltd.**, which holds approximately **4.71% of the Company's issued domestic shares**, and Mr. Liu Xin is deemed to have an interest in these shares[54](index=54&type=chunk) - Shenzhen Yuanzhongchengyou Consulting Limited Partnership (controlled by Mr. Liu Xin) holds **35,160,000 domestic shares**[54](index=54&type=chunk) Item V. Directors' Interests in Contracts and Connected Transactions This section confirms that no directors held material direct or indirect interests in any significant contracts or connected transactions with the Company or its subsidiaries during the reporting period - None of the Company's directors had any direct or indirect material interest in any significant contract entered into by the Company or its subsidiaries that was subsisting at the end of or at any time during the period ended June 30, 2025[56](index=56&type=chunk) Item VI. Interim Report and Other Information This section provides additional information related to the interim report, including the declaration of cash dividends and the composition of the Board of Directors [Declaration of Cash Dividend](index=22&type=section&id=Declaration%20of%20Cash%20Dividend) The Board declared an interim cash dividend of RMB 0.31 per share, with H-share dividends payable in HKD, and announced specific arrangements including transfer registration suspension - The Board resolved to declare an interim cash dividend of **RMB 0.31 per share** (before applicable taxes)[58](index=58&type=chunk) - Dividends payable to H-share holders will be calculated in RMB and paid in HKD, at **HKD 0.34 per share**, with an exchange rate of **RMB 0.9107 to HKD 1**[59](index=59&type=chunk) - The declaration date is **August 4, 2025**. To determine the list of H-share shareholders entitled to the cash dividend, the Company will suspend H-share transfer registration from **August 19, 2025, to August 22, 2025** (both dates inclusive), with the record date being **August 22, 2025**[59](index=59&type=chunk)[60](index=60&type=chunk) [By Order of the Board](index=23&type=section&id=By%20Order%20of%20the%20Board) The Board issued this report on August 4, 2025, outlining its composition as of the report date - The date of this report is **August 4, 2025**[60](index=60&type=chunk) - The Company's Board of Directors comprises Executive Directors Mr. Liu Xin (Chairman), Mr. Liu Guozhu, Ms. Huang Zhaohuan, and Mr. Jiang Shiwen; Non-executive Director Mr. Peng Jian; and Independent Non-executive Directors Ms. Zhang Yanxiao, Mr. Bin Zhizhao, and Ms. He Xujin[60](index=60&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 就 因 本 公 告 全 部 或 任 何 部 分 內 容 所 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 Hainan Drinda New Energy Technology Co., Ltd. 海南鈞達新能源科技股份有限公司 | 公司資料 | 2 | | --- | --- | | 釋義 | 4 | | 財務概要 | 9 | | 管理層討論與分析 | 10 | | 其他資料 | 22 | | 簡明綜合損益及其他全面收益表 | 29 | | 簡明綜合財務狀況表 | 30 | | 簡明綜合權益變動表 | 32 | | 簡明綜合現金流量表 | 33 | | 截至2025年6月30日止六個月的簡明綜合財務報表附註 | 34 | （於中華人民共和國註冊成立的股份有限公司） （股份代號：02865） 截 至2025年6月30日止六個月之 中期業績公告 海 南 鈞 達 新 能 源 科 技 股 份 有 ...

Financial Performance - Medlive Technology Co., Ltd. reported a revenue of RMB 312,035,000 for the six months ended June 30, 2025, representing a year-on-year increase of 28.2% compared to RMB 243,443,000 in 2024[2]. - The gross profit for the same period was RMB 183,948,000, reflecting a 24.9% increase from RMB 147,329,000 in the previous year[2]. - The adjusted net profit under non-Hong Kong Financial Reporting Standards was RMB 166,738,000, a 6.9% increase from RMB 156,048,000 in the previous year[2]. - Net profit increased from RMB 152.7 million for the six months ending June 30, 2024, to RMB 160.4 million for the same period in 2025, with a net profit margin of 51.4%[9]. - Revenue for the six months ending June 30, 2025, was approximately RMB 312.0 million, representing a year-over-year growth of 28.2%[9]. - Revenue increased by approximately 28.2% from RMB 243.4 million for the six months ended June 30, 2024, to approximately RMB 312.0 million for the same period in 2025, primarily driven by growth in precision marketing and enterprise solutions[29]. - The group’s net profit increased by approximately 5.0% from RMB 152.7 million for the six months ended June 30, 2024, to approximately RMB 160.4 million for the same period in 2025, with a net profit margin of approximately 51.4%[42]. Client and User Growth - The number of medical clients for precision marketing and enterprise solutions increased to 191, up from 158 in the same period last year, indicating a growth of 20.9%[4]. - The average monthly active users rose to 2.78 million, compared to 2.50 million in the previous year, marking an increase of 11.2%[4]. - The number of clients covered by the precision marketing and enterprise solutions increased by 20.9% year-over-year, from 158 clients in the first half of 2024 to 191 clients in the first half of 2025[10]. - The number of products covered by the precision marketing solution rose by 32.4% year-over-year, from 336 products in the first half of 2024 to 445 products in the first half of 2025[10]. - Paid click-throughs increased from 5.98 million in the first half of 2024 to 7.69 million in the first half of 2025[10]. - The company has over 7 million registered users on its platform, with more than 4 million being practicing physicians, representing 88% of the total practicing physicians in China[6]. Product and Service Development - The company launched several AI-driven products, including MedSeeker, MedPaper, and MedAssister, aimed at enhancing clinical decision-making and research efficiency for physicians[7]. - The precision digital marketing demand is expected to continue growing sustainably, supported by favorable policies and technological advancements in the healthcare industry[5]. - The company has established a high-end GPU computing cluster to enhance model inference efficiency while ensuring data security[7]. - The clinical case database launched in April 2023 includes 5,000 high-quality clinical cases covering over 20 key departments[16]. - The number of clinical guidelines on the platform increased to 33,000, with an addition of over 1,800 new guidelines[16]. - The AI content review module reduced the content review cycle for pharmaceutical clients from three days to two hours[13]. - The company expanded its disease knowledge base with 1,700 disease entries and integrated the MedSeeker intelligent Q&A feature, enhancing clinical decision support for physicians[17]. - The company added over 3,200 Chinese drug instructions and dynamically updated more than 1,200 drug information entries, surpassing a total of 38,000 Chinese drug instructions[17]. Financial Management and Investments - The group held cash and cash equivalents of approximately RMB 2,942.5 million, a decrease from RMB 3,844.7 million as of December 31, 2024[47]. - The group’s debt investments amounted to RMB 1,474.7 million as of June 30, 2025, with expected annual returns ranging from 4.53% to 5.50%[48]. - The group plans to continuously purchase financial products upon maturity of existing investments to maximize returns on unutilized funds[49]. - The total liabilities related to debt investments increased significantly to RMB 966,261,000 as of June 30, 2025, compared to RMB 440,374,000 at the end of 2024[84]. - The net proceeds from the global offering, approximately HKD 4,677 million, are allocated for business expansion, technology investment, and strategic acquisitions[94]. - As of June 30, 2025, approximately RMB 900 million of the unutilized proceeds from the global offering has been used for purchasing financial products[96]. Corporate Governance - The company has complied with the corporate governance code, with the exception of the separation of the roles of Chairman and CEO[98]. - The board will continue to review and monitor the company's practices to maintain high standards of corporate governance[98]. - The company has adopted the "Standard Code of Conduct for Directors' Securities Transactions" as per the Listing Rules Appendix C3, confirming compliance by all directors during the reporting period[99]. - An Audit Committee has been established, consisting of three independent non-executive directors, with Ms. Wang Shan as the chairperson, confirming adherence to applicable accounting principles and regulations[100]. - The board of directors includes executive directors Tian Liping, Tian Lixin, Tian Lijun, and Zhou Xin, along with non-executive directors Chai Wu Ying Er and Jin Se Yi Xian, and independent non-executive directors Ye Lin, Ma Jun, and Wang Shan[103]. Research and Development - Research and development expenses increased to RMB 41,074,000, up 33.8% from RMB 30,675,000 in the prior period[76]. - The total employee cost for the six months ended June 30, 2025, was approximately RMB 98.8 million, an increase of 19.3% from RMB 82.8 million in 2024, primarily due to an increase in sales and platform development personnel[56]. - Capital expenditures for the six months ended June 30, 2025, were approximately RMB 25.1 million, compared to RMB 18.5 million in the same period of 2024, mainly for the acquisition of a 60% stake in Beijing Focus Innovation Technology Co., Ltd.[53]. - The company plans to enhance its medical knowledge solutions with an allocation of HKD 280.7 million, with expected utilization by December 2027[96]. - Investment in technology and R&D capabilities includes HKD 467.7 million for talent recruitment and expert collaboration, with a projected timeline for completion by December 2027[96].

Product Development and Clinical Trials - The core product HTD1801 is a novel molecular entity targeting cardio-renal metabolic diseases, showing significant clinical benefits including improved blood sugar control and reduced body weight[4]. - HTD1801 has demonstrated a unique dual mechanism by activating AMPK and inhibiting NLRP3 inflammasome, addressing unmet clinical needs in cardio-renal metabolic diseases affecting nearly 90% of adults in the US and 80% in China[5]. - The company is developing HTD1801 for multiple indications, including Type 2 Diabetes, Metabolic Associated Fatty Liver Disease, and Chronic Kidney Disease, among others[8]. - Clinical trials for HTD1801 have involved over 2,000 participants, demonstrating high safety and tolerability with primarily mild to moderate gastrointestinal adverse events[7]. - HTD1801 has shown potential in improving key inflammatory markers and restoring kidney function, indicating its broad therapeutic benefits[7]. - The Phase III clinical trial (SYMPHONY 1) demonstrated a significant reduction in HbA1c by -1.3% after 24 weeks of treatment, with 42% of patients achieving HbA1c < 7%[16]. - HTD1801 shows a dose-dependent improvement in multiple liver and cardiovascular metabolic indicators in T2DM patients with suspected MASLD[16]. - HTD1801 treatment significantly improved key glycemic and lipid metabolic markers in T2DM patients, with more pronounced effects in those with severe disease[18]. - In a Phase IIa study, HTD1801 significantly reduced liver fat content in MASH patients compared to placebo, achieving the primary endpoint[19]. - HTD1801 treatment resulted in a twofold increase in patients achieving liver histological improvement compared to the placebo group in MASH patients at risk of progression[19]. - HTD1801 demonstrated greater improvements in liver injury and inflammation markers compared to GLP-1RAs in MASH patients with T2DM[20]. - The ongoing Phase IIb study for MASH has completed patient enrollment and is expected to read out data in the second half of 2025[20]. - HTD1801 exhibited good safety and tolerability, supporting its potential as a unique oral treatment for T2DM and its complications[16]. - The company is conducting multiple Phase III studies for T2DM in China, with data readouts expected in mid-2025[17]. - HTD1801 has received two Fast Track designations and one Orphan Drug designation from the FDA, supporting its global development plan towards commercialization[15]. - The company is focused on expanding the indications for HTD1801 to maximize its therapeutic potential in addressing metabolic diseases and related comorbidities[8]. Market Opportunities and Financial Projections - The global market for metabolic diseases is projected to reach $458 billion by 2032, presenting substantial growth opportunities for the company[8]. - The company aims to commercialize HTD1801 by 2025, actively pursuing market opportunities in the US, China, Canada, and Australia[9]. - The NDA submission for HTD1801 targeting T2DM is expected by the end of 2025, following positive clinical trial data[17]. - The company plans to initiate a Phase II clinical study for HTD1801 in combination with GLP-1RA for obesity treatment, leveraging its synergistic weight loss effects[25]. - Approximately 80.0% of the remaining funds will be allocated to ongoing clinical research and development activities for HTD1801, amounting to HKD 155.2 million[69]. - The company plans to utilize the remaining unutilized funds based on actual business needs and future business development[69]. Financial Performance and Expenses - Other income decreased by 70.1%, from RMB 35.1 million to RMB 10.5 million, primarily due to a reduction in government subsidies by approximately RMB 19.1 million[40]. - The company recorded a loss of RMB 113.9 million for the six months ended June 30, 2025, an improvement from a loss of RMB 210.9 million for the same period in 2024[45]. - The adjusted net loss for the six months ended June 30, 2025, was RMB 100.735 million, compared to RMB 156.909 million for the same period in 2024, representing a 35.8% improvement[60]. - R&D expenses decreased by 47.3% from RMB 202.0 million for the six months ended June 30, 2024, to RMB 106.4 million for the six months ended June 30, 2025[42]. - Administrative expenses fell by 53.0% from RMB 46.1 million for the six months ended June 30, 2024, to RMB 21.6 million for the six months ended June 30, 2025[44]. - Total employee benefit expenses for the six months ended June 30, 2025, amounted to RMB 34.9 million, a decrease from RMB 82.9 million for the same period in 2024, indicating a reduction of 57.9%[62]. - The company had a total of 57 employees as of June 30, 2025, down from 68 employees as of June 30, 2024, reflecting a decrease of 16.2%[62]. - The company has reduced equity-settled share option expenses from RMB 54.036 million in 2024 to RMB 13.122 million in 2025, a decrease of 75.7%[60]. Regulatory and Compliance - The company has maintained compliance with the corporate governance code and has confirmed adherence to the standards for securities trading by directors during the reporting period[64][65]. - There were no significant litigations or arbitrations that could adversely affect the company's financial condition or operating performance during the reporting period[67]. - The company operates primarily in the biopharmaceutical R&D sector, with no revenue generated from major customers during the reporting periods[86][88]. - The company has adopted share incentive plans on January 22, 2020, May 24, 2023, and June 27, 2025, to enhance employee motivation and retention[63]. Taxation and Liabilities - The effective tax rate for subsidiaries in Hong Kong remains at 8.25%, consistent with the previous year[93]. - The total income tax expense for the six months ended June 30, 2025, was RMB 6,000, compared to RMB 538,000 for the same period in 2024[97]. - The group did not recognize any deferred tax liabilities in mainland China due to the subsidiaries being in a loss position and having no estimated taxable profits[94]. - The subsidiary in Maryland, USA, is required to pay federal corporate income tax at a rate of 21% and state income tax rates ranging from 5.5% to 8.84% depending on the state[96]. - The company currently has no significant contingent liabilities as of June 30, 2025[55]. Investments and Assets - The company made investments of USD 12.5 million in each of Apollo Multi-Asset Growth Fund and Chaince Capital Fund LP during the reporting period[52]. - The net asset value decreased to RMB 367,813,000 from RMB 424,168,000, reflecting a decline of 13.3%[78]. - Cash and bank balances decreased to RMB 215.506 million from RMB 310.750 million at the end of December 2024[77]. - The company had outstanding interest-bearing bank loans of approximately RMB 80.3 million as of June 30, 2025, up from RMB 56.9 million as of December 31, 2024[48]. - The debt-to-equity ratio increased to 21.8% as of June 30, 2025, compared to 13.4% as of December 31, 2024[50].

Financial Highlights The Group's revenue increased by **42.7%** to **HK$12.264 million**, with gross profit up **75.1%** to **HK$4.017 million**, though loss attributable to owners expanded by **14.6%** to **HK$2.268 million** Key Financial Performance for the Period | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,264 | 8,594 | 42.7% | | Gross Profit | 4,017 | 2,294 | 75.1% | | Loss Attributable to Owners of the Company | (2,268) | (1,979) | 14.6% (Loss expanded) | - Revenue increase primarily driven by office property and medical center projects[5](index=5&type=chunk) - The Board does not recommend an interim dividend for the period[5](index=5&type=chunk) [Unaudited Condensed Consolidated Interim Financial Results](index=4&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) [Condensed Consolidated Interim Statement of Profit or Loss](index=4&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) For the six months ended June 30, 2025, the Group's revenue significantly grew by **42.7%** to **HK$12.3 million**, and gross profit increased by **75.1%** to **HK$4.0 million**. However, due to increased selling and distribution expenses, administrative expenses, and impairment provision for trade receivables, the loss for the period expanded to **HK$2.3 million** Summary of Condensed Consolidated Interim Statement of Profit or Loss | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,264 | 8,594 | 42.7% | | Cost of Sales | (8,247) | (6,300) | 30.9% | | Gross Profit | 4,017 | 2,294 | 75.1% | | Other Income | 818 | 924 | -11.4% | | Selling and Distribution Expenses | (817) | (454) | 80.0% | | Administrative Expenses | (5,902) | (5,045) | 16.9% | | Impairment (Provision) / Reversal for Trade and Contract Assets | (276) | 315 | -187.6% | | Operating Loss | (2,160) | (1,966) | 9.9% | | Loss for the Period Attributable to Owners of the Company | (2,268) | (1,979) | 14.6% | | Basic and Diluted Loss Per Share (HK cents) | (0.24) | (0.21) | 14.3% | [Condensed Consolidated Interim Statement of Comprehensive Income](index=5&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 total comprehensive loss attributable to owners of the Company for the period was **HK$2.182 million**, an increase from **HK$2.029 million** in the prior period, mainly due to increased loss for the period, partially offset by exchange differences from translating foreign operations recognized as income Summary of Condensed Consolidated Interim Statement of Comprehensive Income | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Loss for the Period | (2,268) | (1,979) | | Exchange Differences Arising from Translation of Foreign Operations | 86 | (15) | | Fair Value Changes of Financial Assets at Fair Value Through Other Comprehensive Income | – | (35) | | Other Comprehensive Income / (Loss) for the Period, Net of Tax | 86 | (50) | | Total Comprehensive Loss for the Period Attributable to Owners of the Company | (2,182) | (2,029) | [Condensed Consolidated Interim Statement of Financial Position](index=6&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) As of June 30, 2025, the Group's total assets slightly increased to **HK$66.4 million**, primarily due to a significant increase in cash and cash equivalents. Total equity slightly decreased to **HK$59.6 million**, while total liabilities significantly increased to **HK$6.8 million**, mainly due to an increase in contract liabilities Summary of Condensed Consolidated Interim Statement of Financial Position | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current Assets | 2,041 | 2,709 | -24.6% | | Current Assets | 64,368 | 63,406 | 1.5% | | Of which: Cash and Cash Equivalents | 46,139 | 9,040 | 410.4% | | Of which: Fixed Deposits with Original Maturity Over Three Months | 7,803 | 41,694 | -81.3% | | Total Assets | 66,409 | 66,115 | 0.4% | | **Equity** | | | | | Total Equity | 59,617 | 61,799 | -3.69% | | **Liabilities** | | | | | Non-current Liabilities | 925 | 1,042 | -11.3% | | Current Liabilities | 5,867 | 3,274 | 79.2% | | Of which: Contract Liabilities | 3,422 | – | N/A | | Total Liabilities | 6,792 | 4,316 | 57.4% | [Condensed Consolidated Interim Statement of Changes in Equity](index=7&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, total equity attributable to owners of the Company decreased from **HK$61.8 million** at the beginning of the year to **HK$59.6 million**, primarily due to a loss for the period of **HK$2.268 million**, partially offset by an increase in exchange reserve Summary of Condensed Consolidated Interim Statement of Changes in Equity | Indicator | January 1, 2025 (HK$ thousand) | Loss for the Period (HK$ thousand) | Other Comprehensive Income (HK$ thousand) | June 30, 2025 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Total Equity | 61,799 | (2,268) | 86 | 59,617 | [Condensed Consolidated Interim Statement of Cash Flows](index=8&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, the Group's net increase in cash and cash equivalents was **HK$37.0 million**, mainly due to a significant increase in net cash from investing activities and a shift from cash used to cash generated from operating activities Summary of Condensed Consolidated Interim Statement of Cash Flows | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash Generated From / (Used In) Operating Activities | 2,769 | (3,766) | | Net Cash From Investing Activities | 34,484 | 24 | | Net Cash Used In Financing Activities | (240) | (321) | | Net Increase / (Decrease) in Cash and Cash Equivalents | 37,013 | (4,063) | | Cash and Cash Equivalents as at June 30 | 46,139 | 14,984 | - Net cash from investing activities significantly increased, primarily due to a **HK$33.891 million** decrease in fixed deposits with original maturity over three months[14](index=14&type=chunk) [Notes to

Financial Performance - The company reported a revenue of RMB 500 million for the first half of 2025, representing a 20% increase compared to the same period last year[3]. - For the six months ended June 30, 2025, the company reported revenue of RMB 3,655,550, a decrease from RMB 6,355,418 in the same period of 2024[17]. - The company experienced a pre-tax loss of RMB 315,610 for the first half of 2025, compared to a pre-tax loss of RMB 242,212 in the first half of 2024[17]. - The gross profit for the six months ended June 30, 2025, was RMB 0.9 million, a turnaround from a gross loss of RMB 23.8 million in the same period of 2024[38]. - The company recorded a loss of RMB 263.7 million for the six months ended June 30, 2025, compared to a loss of RMB 166.3 million in the same period of 2024[42]. - The company reported a basic and diluted loss per share of RMB 1.07, compared to RMB 0.94 in the previous year[96]. - The net loss for the period was RMB 263,655, compared to a net loss of RMB 166,337 in the previous year, representing an increase in losses of 58.5%[96]. Revenue Breakdown - Revenue for the six months ended June 30, 2025, was RMB 3,655,550,000, a decrease of approximately 42.5% compared to RMB 6,355,418,000 in the same period of 2024, primarily due to a 67.9% decline in the mainland China market[35]. - Revenue from mainland China was RMB 1,755,392,000, down from RMB 5,476,337,000 in 2024, while revenue from overseas customers increased to RMB 1,900,158,000 from RMB 879,081,000[116]. - Major customer A contributed RMB 467,940,000, representing over 10% of total revenue, compared to RMB 1,203,320,000 in 2024[117]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by the end of 2026[3]. - The company aims to leverage its technological advantages in battery production to expand its presence in overseas markets and enhance its supply capabilities[24]. - The company is exploring diverse models for overseas capacity construction, including technical cooperation and investment partnerships, to meet growing global photovoltaic market demands[30]. - The company plans to continue its focus on research and development in photovoltaic technology to enhance product offerings and market competitiveness[106]. Research and Development - Research and development expenses increased by 10% to RMB 50 million, focusing on innovative energy solutions[3]. - The company is focusing on the research and development of photovoltaic cells, which are critical for improving energy conversion efficiency and reducing costs[20]. - The company is actively developing TBC batteries, with laboratory efficiency reaching 32.08% for perovskite tandem cells, indicating its commitment to leading technology advancements[32]. - Research and development expenses decreased to RMB 74,458 from RMB 111,448, reflecting a reduction of 33.2% year-over-year[96]. Financial Position - Total assets increased to RMB 18,414,446 as of June 30, 2025, up from RMB 16,444,209 as of December 31, 2024[17]. - The company's total equity rose to RMB 4,812,261 as of June 30, 2025, compared to RMB 3,886,997 at the end of 2024[17]. - Cash and cash equivalents increased to RMB 3,253.1 million as of June 30, 2025, primarily due to proceeds from the global offering[48]. - The debt-to-asset ratio decreased from approximately 76.4% as of December 31, 2024, to approximately 73.9% as of June 30, 2025, and the current ratio improved from 1.0 times to 1.2 times[50]. Stock and Shareholder Information - The company has granted stock options under various employee incentive plans, with the latest plan (2023 B-type) allowing for 50% vesting after 12 months and the remaining 50% after 36 months[77]. - The total number of stock options granted but not exercised is 8,576,331, with 5,973,984 options exercised during the reporting period[76]. - The company’s board members and executives hold a total of 51,803,865 A-shares, representing 22.61% of the total shareholding[79]. - The company has adopted an employee incentive plan to reward eligible employees with share options[89]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and has complied with the corporate governance code throughout the reporting period[90]. - The company has not reported any changes in board member information during the reporting period[78]. - The company maintains compliance with Hong Kong Stock Exchange regulations regarding the disclosure of director and executive interests[79]. Future Outlook - The company aims to reduce carbon emissions by 50% by 2030 as part of its sustainability strategy[3]. - The company’s future outlook includes continued expansion in employee incentive plans to align interests with shareholders[77]. - The company plans to continue expanding its market presence and investing in new technologies as part of its growth strategy[146].