[Supplementary Announcement Overview](index=1&type=section&id=Supplementary%20Announcement%20Overview) This announcement supplements Beijing Dixintong Commercial Co., Ltd.'s 2024 annual report with detailed information on H-share subscription proceeds, ensuring complete shareholder and investor information [Purpose and Background of the Announcement](index=1&type=section&id=Purpose%20and%20Background%20of%20the%20Announcement) This announcement provides additional details on the use of H-share subscription proceeds, supplementing the company's 2024 annual report - This announcement is a supplement to Beijing Dixintong Commercial Co., Ltd.'s 2024 annual report, aiming to provide additional information on the use of proceeds from H-share subscriptions[2](index=2&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) [H-share Subscription and Proceeds](index=1&type=section&id=H-share%20Subscription%20and%20Proceeds) This section details the H-share subscription, including its basic terms, net proceeds, planned utilization, and actual deployment [Basic Information on the Subscription](index=1&type=section&id=Basic%20Information%20on%20the%20Subscription) The company entered into agreements on September 1, 2023, to issue **154,000,000** new H-shares in three tranches at **HK$1.70** per share - On September 1, 2023, the company entered into subscription agreements with YBN Investments Limited and Unicorn Link Group Limited[4](index=4&type=chunk) H-share Subscription Key Information | Indicator | Content | | :--- | :--- | | Subscribers | YBN Investments Limited and Unicorn Link Group Limited | | Subscription Price | HK$1.70 per H-share | | Total Subscription Shares | 154,000,000 shares | | Subscription Tranches | Three tranches | [Net Proceeds and Planned Use](index=1&type=section&id=Net%20Proceeds%20and%20Planned%20Use) The subscription yielded net proceeds of approximately **HK$260.75 million**, designated for general working capital and bank loan repayment within one year H-share Subscription Proceeds | Indicator | Amount (million HKD) | | :--- | :--- | | Total Proceeds | 261.80 | | Related Fees and Expenses | 1.05 | | Net Proceeds | 260.75 | - The net proceeds are planned for the Group's general working capital, including repayment of bank loans related to general operations, and are expected to be utilized within one year after the completion of all three tranches of the subscription[5](index=5&type=chunk) [Actual Use of Proceeds](index=2&type=section&id=Actual%20Use%20of%20Proceeds) As of December 31, 2024, the entire net proceeds of **HK$260.75 million** have been fully utilized for general working capital and bank loan repayment as planned Use of Net Proceeds as of December 31, 2024 | Item | Unutilized Net Proceeds as of January 1, 2024 (million HKD) | Net Proceeds Utilized During the Year Ended December 31, 2024 (million HKD) | Unutilized Net Proceeds as of December 31, 2024 (million HKD) | | :--- | :--- | :--- | :--- | | General working capital (including repayment of bank loans related to general operations) | 260.75 | 260.75 | 0 | - As of December 31, 2024, the net proceeds raised from the subscription have been fully utilized according to the planned use of proceeds described in the circular[5](index=5&type=chunk) [Board of Directors and Other Information](index=2&type=section&id=Board%20of%20Directors%20and%20Other%20Information) This section outlines the composition of the Board of Directors and includes a standard disclaimer regarding the announcement's content [Composition of the Board of Directors](index=2&type=section&id=Composition%20of%20the%20Board%20of%20Directors) As of the announcement date, the company's board comprises 9 members, including executive, non-executive, and independent non-executive directors - As of the announcement date, the board of directors includes Ms. Xu Jili, Ms. Xu Liping, Mr. Liu Donghai (Executive Directors), Mr. Xie Hui, Mr. Jia Zhaojie, Ms. Pan Anran (Non-executive Directors), and Mr. Lu Tingjie, Mr. Lu Pingbo, Mr. Cai Zhenhui (Independent Non-executive Directors)[8](index=8&type=chunk) [Disclaimer](index=1&type=section&id=Disclaimer) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for this announcement's content, accuracy, or completeness - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the contents of this announcement, do not guarantee its accuracy or completeness, and accept no liability for any related loss[1](index=1&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。 V & V TECHNOLOGY HOLDINGS LIMITED 時騰科技控股有限公司 （於開曼群島註冊成立的有限公司 ） （股份代號：8113） (1) 截至2025年6月30日止六個月之中期業績公告 (2) 董事辭任 (3) 董事委員會組成變動 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交 所上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在 風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主 板買賣的證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高 流通量的市場。 本公告的資料乃遵照聯交所GEM證券上市規則（「 GEM上市規則 」）而刊載，旨在 提供有關時騰科技控股有限公司（「 本公司 」）的資料。本公司的董事（「 董 ...

[Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) The group's revenue decreased by **16.8%** to **HKD 2.48 billion**, while profit attributable to owners of the company surged by **393.9%** | Metric | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,483,216 | 2,986,005 | -16.8% | | Profit attributable to owners of the company | 63,421 | 12,842 | +393.9% | | Basic earnings per share (HK cents) | 0.65 | 0.13 | +400.0% | | Interim dividend | Not recommended | Not recommended | - | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) The group's revenue for the six months ended June 30, 2025, was approximately **HKD 2.48 billion**, with profit attributable to owners of the company surging by **393.9%** to **HKD 63.42 million** | Metric | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 2,483,216 | 2,986,005 | | Cost of sales | (2,119,826) | (2,361,167) | | Gross profit | 363,390 | 624,838 | | Other income and gains, net | 74,305 | 70,575 | | Selling and distribution expenses | (25,252) | (32,246) | | General and administrative expenses | (309,410) | (655,541) | | Net gain on disposal of a subsidiary | – | 146,420 | | Other operating income/(expenses), net | 14,630 | (16,205) | | Finance costs | (25,413) | (75,001) | | Profit before tax | 92,250 | 56,976 | | Income tax expense | (8,665) | (20,680) | | Profit for the period | 83,585 | 36,296 | | Profit attributable to owners of the company | 63,421 | 12,842 | | Non-controlling interests | 20,164 | 23,454 | | Basic earnings per share (HK cents) | 0.65 | 0.13 | | Diluted earnings per share (HK cents) | 0.65 | 0.13 | [Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=%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) Total comprehensive income significantly improved to **HKD 151.62 million** from a negative **HKD 100.10 million**, primarily due to favorable exchange differences | Metric | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit for the period | 83,585 | 36,296 | | Property revaluation loss | (4,708) | (3,871) | | Exchange differences on translation of overseas operations | 71,964 | (189,640) | | Release of exchange fluctuation reserve upon disposal of a subsidiary | – | 58,671 | | Other comprehensive income/(expense) for the period (after tax) | 68,037 | (136,392) | | Total comprehensive income/(expense) for the period | 151,622 | (100,096) | | Attributable to owners of the company | 115,673 | (107,868) | | Non-controlling interests | 35,949 | 7,772 | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets slightly decreased, but net current assets and total equity increased, reflecting continuous financial improvement | Metric | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total non-current assets | 2,702,798 | 2,716,395 | | Total current assets | 4,448,538 | 4,437,841 | | Total current liabilities | 3,486,820 | 3,660,518 | | Net current assets | 961,718 | 777,323 | | Total non-current liabilities | 609,369 | 588,875 | | Net assets | 3,055,147 | 2,904,843 | | Total equity | 3,055,147 | 2,904,843 | [Notes to the Condensed Consolidated Interim Financial Statements](index=8&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Company Information](index=8&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) The company, registered in the Cayman Islands, primarily engages in investment holding, with subsidiaries manufacturing various consumer electronics and home products - The company is registered in the Cayman Islands, primarily engaged in investment holding[12](index=12&type=chunk) - Subsidiaries' main businesses include manufacturing and selling mobile phone casings and precision components, smart appliance casings, home and sports products, and network communication equipment[12](index=12&type=chunk) [Basis of Presentation](index=8&type=section&id=%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96) Interim financial statements comply with HKEX Listing Rules Appendix D2 and HKAS 34 "Interim Financial Reporting" - The interim financial statements comply with Appendix D2 of the HKEX Listing Rules and HKAS 34[13](index=13&type=chunk) [Accounting Policies](index=8&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) Accounting policies are consistent with annual consolidated financial statements, with new HKFRSs having no impact on these interim financial statements - Accounting policies are consistent with the annual consolidated financial statements[14](index=14&type=chunk) - Initial adoption of HKAS 21 (Amendment) "Lack of Exchangeability" has no impact on these interim financial statements[14](index=14&type=chunk)[15](index=15&type=chunk) [Operating Segment Information](index=9&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The group operates two reportable segments: consumer electronics structural components and home & sports products, with performance assessed based on adjusted profit before tax [Segment Business](index=9&type=section&id=%E5%88%86%E9%A1%9E%E6%A5%AD%E5%8B%99) The group's two segments are consumer electronics structural components (e.g., phone casings, network equipment) and home & sports products (e.g., household durables, sports goods) - Consumer electronics structural components segment covers mobile phone casings, precision components, smart appliance panels, network communication equipment, and other consumer electronics[17](index=17&type=chunk) - Home and sports products segment includes household durables, home tools, and sports products[17](index=17&type=chunk) [Revenue and Results Analysis](index=10&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E6%A5%AD%E7%B8%BE%E5%88%86%E6%9E%90) Consumer electronics structural components revenue decreased, while home & sports products revenue increased, with overall segment performance impacted by depreciation and amortization | Segment | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | **Segment Revenue:** | | | | Consumer electronics structural components | 1,902,809 | 2,478,496 | | Home and sports products | 580,407 | 507,509 | | **Segment Results:** | | | | Consumer electronics structural components | 7,422 | 63,390 | | Home and sports products | 51,618 | 56,756 | | Consolidated segment results | 59,040 | 120,146 | [Assets and Liabilities Analysis](index=11&type=section&id=%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5%E5%88%86%E6%9E%90) As of June 30, 2025, consumer electronics structural components saw decreased assets and liabilities, while home & sports products experienced slight asset growth and liability reduction | Segment | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | **Segment Assets:** | | | | Consumer electronics structural components | 4,372,703 | 4,453,580 | | Home and sports products | 1,600,159 | 1,573,611 | | Consolidated total assets | 7,151,336 | 7,154,236 | | **Segment Liabilities:** | | | | Consumer electronics structural components | 2,495,922 | 2,750,254 | | Home and sports products | 351,953 | 377,509 | | Consolidated total liabilities | 4,096,189 | 4,249,393 | [Geographical Information](index=12&type=section&id=%E5%9C%B0%E5%8D%80%E8%B3%87%E6%96%99) The group's revenue primarily originates from China, with smaller contributions from Asia Pacific (excluding China) and the United States | Region | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | China | 1,765,475 | 2,317,515 | | Asia Pacific (excluding China) | 258,260 | 253,473 | | United States | 5,795 | 6,028 | | Other | 453,686 | 408,989 | | Consolidated total revenue | 2,483,216 | 2,986,005 | [Major Customer Information](index=12&type=section&id=%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B6%E8%B3%87%E6%96%99) Customer A was a major customer in 2024 but not in 2025, while Customer B's revenue contribution increased, mainly from consumer electronics structural components | Customer | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Customer A | Not applicable | 381,029 | | Customer B | 357,927 | 304,210 | | Total | 357,927 | 685,239 | - Customer A is no longer a major customer in 2025, while Customer B's revenue contribution increased[22](index=22&type=chunk) [Profit Before Tax](index=13&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax is influenced by depreciation, R&D costs, salaries, and net exchange differences, with significant decreases in depreciation and R&D costs | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 123,407 | 319,192 | | Depreciation of right-of-use assets | 7,586 | 7,776 | | Amortisation of intangible assets | 380 | 389 | | Research and development costs | 120,473 | 372,080 | | Salaries and wages | 561,299 | 666,761 | | Net exchange differences | (26,630) | 11,541 | | Interest income | (7,337) | (15,175) | [Income Tax](index=14&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) Income tax expense primarily from Hong Kong and other regions, benefiting from high-tech enterprise preferential rates, with a significant reduction in total tax expenses - Hong Kong profits tax rate is **16.5%**, with some subsidiaries (e.g., Tongda Precision Technology) subject to a two-tiered tax rate of **8.25%** for the first **HKD 2 million**[24](index=24&type=chunk) - Mainland China enterprise income tax rate is **25%**, with certain subsidiaries eligible for a preferential tax rate of **15%** as high-tech enterprises[24](index=24&type=chunk) | Item | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Current – Hong Kong | 323 | 3,287 | | Current – Other regions | 10,017 | 20,377 | | Deferred | (1,675) | (2,984) | | Total tax expense for the period | 8,665 | 20,680 | [Disposal of a Subsidiary](index=15&type=section&id=%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) The group disposed of its precision business on April 3, 2024, for **HKD 2.015 billion**, recording a net gain of **HKD 146.4 million** and generating **HKD 1.615 billion** net cash inflow - The group completed the disposal of its precision micro-components business on April 3, 2024, for a total consideration of **HKD 2.015 billion**[26](index=26&type=chunk) | Item | Amount (HKD thousands) | | :--- | :--- | | Consideration received | 1,904,250 | | Net assets disposed of | (1,608,783) | | Release of exchange fluctuation reserve | (58,671) | | Gain on disposal of a subsidiary | 347,546 | | Transaction costs directly attributable to the disposal | (53,037) | | Income tax expense | (148,089) | | Net gain on disposal of a subsidiary | 146,420 | | Item | As of June 30, 2024 (HKD thousands) | | :--- | :--- | | Net cash and cash equivalents inflow from disposal of a subsidiary (after tax) | 1,614,526 | [Business Combination](index=17&type=section&id=%E6%A5%AD%E5%8B%99%E5%90%88%E4%BD%B5) The company acquired Credence Technology Limited for **HKD 60 million** to expand and create synergies, with the target committing to an EBITDA of at least **HKD 12 million** for FY2024 - The group acquired Credence Technology Limited for **HKD 60 million** on January 3, 2024[32](index=32&type=chunk)[33](index=33&type=chunk) - The acquisition aims to expand and create synergies with the existing appliance business[33](index=33&type=chunk) - The target company committed to an EBITDA of not less than **HKD 12 million** for the financial year ended December 31, 2024[33](index=33&type=chunk) | Item | Fair Value (HKD thousands) | | :--- | :--- | | Net identifiable assets acquired | 60,000 | | Total consideration paid in cash | 60,000 | | Net cash outflow arising from the acquisition | (51,695) | - The target company and its subsidiaries contributed **HKD 161 million** in revenue and **HKD 3.01 million** in profit to the group from the acquisition date to June 30, 2024[35](index=35&type=chunk) [Dividends](index=18&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend paying any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend[36](index=36&type=chunk) [Earnings Per Share](index=19&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share attributable to owners of the company were **HKD 0.65 cents**, a significant increase, with both being identical due to no potential dilutive ordinary shares | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit for basic and diluted earnings per share (HKD thousands) | 63,421 | 12,842 | | Weighted average number of ordinary shares (thousands) | 9,735,607 | 9,735,607 | | Basic and diluted earnings per share (HK cents) | 0.65 | 0.13 | - For the six months ended June 30, 2025, basic and diluted earnings per share were identical, with no adjustments made[38](index=38&type=chunk) [Property, Plant and Equipment and Intangible Assets](index=19&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E4%BB%A5%E5%8F%8A%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) The group added **HKD 88.25 million** in PPE, disposed of **HKD 6.11 million** in assets, and recorded a **HKD 4.71 million** revaluation deficit, with no write-down for consumer electronics assets - During the period, **HKD 88.25 million** was added to property, plant and equipment, and items with a net book value of **HKD 6.11 million** were disposed of[39](index=39&type=chunk) - Revaluation of Hong Kong leased buildings and related right-of-use assets resulted in a deficit of **HKD 4.71 million**, leading to a reduction in deferred tax liabilities of **HKD 0.781 million**[40](index=40&type=chunk) - After assessment, the carrying amount of assets in the consumer electronics structural components segment did not require write-down to their estimated recoverable amount[42](index=42&type=chunk) - Cash flow forecasts used a compound annual growth rate for revenue between **1.5% and 5.2%** over the next five years, with a pre-tax discount rate between **13.6% and 16.3%**[43](index=43&type=chunk) [Inventories](index=21&type=section&id=%E5%AD%98%E8%B2%A8) As of June 30, 2025, total inventories decreased to **HKD 655.29 million** from **HKD 713.83 million**, mainly due to reductions in work-in-progress and finished goods | Item | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Raw materials | 161,284 | 157,212 | | Work-in-progress | 159,334 | 180,300 | | Finished goods | 334,681 | 376,327 | | Total inventories | 655,299 | 713,839 | [Trade and Bills Receivables](index=21&type=section&id=%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE%E5%8F%8A%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills receivables were **HKD 2.092 billion**, slightly lower than **HKD 2.119 billion**, with credit terms of 1-3 months and strict monitoring | Item | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables | 1,411,801 | 1,515,435 | | Impairment allowance | (23,220) | (25,378) | | Bills receivables | 703,587 | 628,474 | | Total trade and bills receivables | 2,092,168 | 2,118,531 | - The group generally offers credit terms of **1 to 3 months** and maintains strict monitoring over outstanding receivables[45](index=45&type=chunk) | Ageing | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 1,613,812 | 1,976,360 | | 4 to 6 months | 361,855 | 138,970 | | 7 to 9 months | 119,539 | 5,499 | | 10 to 12 months | 4,274 | 2,775 | | Over 1 year | 15,908 | 20,305 | | Total | 2,115,388 | 2,143,909 | | Impairment allowance | (23,220) | (25,378) | | Net | 2,092,168 | 2,118,531 | [Financial Assets at Fair Value Through Profit or Loss](index=22&type=section&id=%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E4%B9%8B%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) Financial assets at fair value through profit or loss, including structured bank deposits and fund investments, have fair value changes recognized in "Other income and gains, net" - Financial assets at fair value through profit or loss refer to bank structured deposits and fund investments[47](index=47&type=chunk) - Changes in their fair value are recognized in "Other income and gains, net" in the condensed consolidated statement of profit or loss[47](index=47&type=chunk) [Trade and Bills Payables](index=23&type=section&id=%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE%E5%8F%8A%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills payables decreased to **HKD 2.295 billion** from **HKD 2.525 billion**, with non-interest bearing trade payables settled within 60-90 days | Item | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade payables | 1,264,981 | 1,527,152 | | Bills payables | 1,029,775 | 997,934 | | Total trade and bills payables | 2,294,756 | 2,525,086 | - Trade payables are non-interest bearing and generally settled within **60 to 90 days**[48](index=48&type=chunk) | Ageing | As of June 30, 2025 (HKD thousands) | As of December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 1,691,085 | 1,821,013 | | 4 to 6 months | 560,006 | 656,634 | | 7 to 9 months | 16,334 | 18,873 | | 10 to 12 months | 4,427 | 3,645 | | Over 1 year | 22,904 | 24,921 | | Total | 2,294,756 | 2,525,086 | [Management Discussion and Analysis](index=24&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Financial Review](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Total revenue decreased by **16.8%** due to the precision components business disposal, but profit attributable to owners surged by **395.3%**, driven by reduced finance costs, R&D, and depreciation [Revenue](index=24&type=section&id=%E6%94%B6%E5%85%A5) Revenue decreased by **16.8%** to **HKD 2.483 billion** due to the precision components business disposal; excluding this, revenue only slightly decreased by **0.5%** | Metric | Six Months Ended June 30, 2025 (HKD millions) | Six Months Ended June 30, 2024 (HKD millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 2,483.2 | 2,986.0 | -16.8% | - Revenue decrease primarily due to the disposal of the precision components business, with its revenue no longer consolidated from April 3, 2024[50](index=50&type=chunk) - Excluding the contribution from the disposed business, revenue for the period only slightly decreased by **0.5%** compared to the adjusted revenue of the prior period[50](index=50&type=chunk) [Gross Profit and Gross Profit Margin](index=24&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit decreased by **41.8%** to **HKD 363.4 million**, with margin declining by **6.3 percentage points** to **14.6%**, due to market competition and precision business disposal, partially offset by lower depreciation | Metric | Six Months Ended June 30, 2025 (HKD millions) | Six Months Ended June 30, 2024 (HKD millions) | Change (%) | | :--- | :--- | :--- | :--- | | Gross profit | 363.4 | 624.8 | -41.8% | | Gross profit margin | 14.6% | 20.9% | -6.3 percentage points | - Decrease in gross profit and gross profit margin primarily due to intense market competition and the disposal of the high-margin precision components business[51](index=51&type=chunk) - Significant reduction in depreciation expenses during the period, resulting from fixed asset impairment at the end of 2024, partially offset the decrease in gross profit and gross profit margin[51](index=51&type=chunk) [Other Income and Gains, Net](index=25&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) Other income and gains, net, increased by **5.2%** to **HKD 74.3 million**, mainly from increased rental income after precision business disposal, partially offset by lower interest income | Metric | Six Months Ended June 30, 2025 (HKD millions) | Six Months Ended June 30, 2024 (HKD millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other income and gains, net | 74.3 | 70.6 | +5.2% | - Increase primarily due to increased rental income after the disposal of the precision components business[52](index=52&type=chunk) - Part of the increase was offset by a decrease in interest income earned during the period compared to the prior period[52](index=52&type=chunk) [Selling and Distribution Expenses](index=25&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) Selling and distribution expenses decreased by **21.4%** to **HKD 25.3 million**, consistent with revenue decline, maintaining a stable proportion of revenue | Metric | Six Months Ended June 30, 2025 (HKD millions) | Six Months Ended June 30, 2024 (HKD millions) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 25.3 | 32.2 | -21.4% | | Percentage of revenue | 1.0% | 1.1% | -0.1 percentage points | - The decrease is consistent with the reduction in the group's turnover[53](index=53&type=chunk) [General and Administrative Expenses](index=25&type=section&id=%E4%B8%80%E8%88%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) General and administrative expenses significantly decreased by **52.8%** to **HKD 309.4 million**, mainly due to reduced R&D expenses post-disposal and lower bank charges from early loan repayment | Metric | Six Months Ended June 30, 2025 (HKD millions) | Six Months Ended June 30, 2024 (HKD millions) | Change (%) | | :--- | :--- | :--- | :--- | | General and administrative expenses | 309.4 | 655.5 | -52.8% | | Percentage of revenue | 12.5% | 22.0% | -9.5 percentage points | - Decrease primarily due to reduced R&D expenses during the period, as related R&D expenses are no longer incurred after the disposal of the precision components business[54](index=54&type=chunk) - Early repayment of a significant portion of long-term bank loans led to a substantial reduction in bank charges[54](index=54&type=chunk) [Other Operating Income/(Expenses), Net](index=26&type=section&id=%E5%85%B6%E4%BB%96%E7%B6%93%E7%87%9F%E6%94%B6%E5%85%A5%E2%95%84%EF%BC%88%E9%96%8B%E6%94%AF%EF%BC%89%E6%B7%A8%E9%A1%8D) The group recorded net other operating income of **HKD 14.6 million**, compared to net expenses of **HKD 16.2 million** last year, primarily due to **HKD 26.6 million** in exchange gains | Metric | Six Months Ended June 30, 2025 (HKD millions) | Six Months Ended June 30, 2024 (HKD millions) | | :--- | :--- | :--- | | Other operating income/(expenses), net | 14.6 (income) | (16.2) (expenses) | | Exchange gains/(losses) | 26.6 (gains) | (11.5) (losses) | - Primarily due to recording exchange gains of **HKD 26.6 million** during the period, compared to exchange losses of **HKD 11.5 million** in the prior period[55](index=55&type=chunk) [Finance Costs](index=26&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) Finance costs significantly decreased by **66.1%** to **HKD 25.4 million**, mainly due to the group's early repayment of substantial long-term bank loans in 2024 | Metric | Six Months Ended June 30, 2025 (HKD millions) | Six Months Ended June 30, 2024 (HKD millions) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 25.4 | 75.0 | -66.1% | - The decrease is primarily due to the group's early repayment of a significant portion of long-term bank loans in 2024[56](index=56&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=26&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) Liquidity primarily from cash, operating cash flow, and interest-bearing borrowings; as of June 30, 2025, cash and equivalents slightly increased, total assets stable, and net current assets and equity grew - The group primarily generates working capital from cash on hand, net cash generated from operating activities, and interest-bearing bank and other borrowings[57](index=57&type=chunk) | Metric | As of June 30, 2025 (HKD millions) | As of December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Cash and cash equivalents | 1,629.3 | 1,615.7 | | Of which pledged | 264.1 | 249.5 | | Total assets | 7,151.3 | 7,154.2 | | Net current assets | 961.7 | 777.3 | | Equity | 3,055.1 | 2,904.8 | - **76.9%** of cash and bank balances are denominated in RMB, **11.5%** in USD, and **11.6%** in other currencies[58](index=58&type=chunk) [Capital Expenditure](index=27&type=section&id=%E8%B3%87%E6%9C%AC%E6%94%AF%E5%87%BA) Total capital expenditure for the period was **HKD 88.3 million**, primarily for PPE acquisition to expand the home and sports products segment | Metric | Six Months Ended June 30, 2025 (HKD millions) | As of December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Total capital expenditure | 88.3 | 454.0 | - Primarily used for the acquisition of property, plant and equipment to expand the home and sports products segment[59](index=59&type=chunk) [Treasury Policy](index=27&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The group monitors foreign exchange and interest rate risks, considering hedging when necessary, given sales in RMB/USD and purchases in RMB - The group will continue to monitor overall foreign exchange risk and interest rate risk, considering hedging these risks when necessary[60](index=60&type=chunk) - Sales are primarily denominated in RMB and USD, while purchases are primarily transacted in RMB[60](index=60&type=chunk) [Pledge of Group Assets](index=27&type=section&id=%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) The group pledged bank deposits, leased buildings, right-of-use assets, and Tongda Creative Living shares as collateral for bank financing - Pledged bank deposits of **HKD 264.1 million** (December 31, 2024: HKD 249.5 million)[61](index=61&type=chunk) - Pledged leased buildings and related right-of-use assets in Hong Kong and Mainland China with a carrying value of approximately **HKD 646.9 million** (December 31, 2024: HKD 569.7 million)[61](index=61&type=chunk) - Pledged **17.2 million** issued shares of Tongda Creative Living[61](index=61&type=chunk) [Human Resources](index=27&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, the group had approximately **9,000** employees, with total salaries and wages of **HKD 561.3 million**, offering diverse compensation, benefits, and training | Metric | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | Number of permanent employees | Approximately 9,000 | Approximately 10,000 | | Total salaries and wages (HKD millions) | 561.3 | 666.8 | - The group determines remuneration based on employee performance, experience, and industry practice, providing MPF schemes, pension schemes, medical insurance, training courses, and share awards/discretionary bonuses[62](index=62&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=28&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E4%BA%8B%E9%A0%85%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) The group completed the disposal of its precision components business and the acquisition of Credence Technology Limited, with no other significant M&A activities - Completed the disposal of the precision micro-components business on April 3, 2024, for a consideration of **HKD 2.015 billion**[63](index=63&type=chunk) - Completed the acquisition of all issued shares of Credence Technology Limited for **HKD 60 million** on January 3, 2024[64](index=64&type=chunk) - No other significant acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the period[65](index=65&type=chunk) [Gearing Ratio and Borrowings](index=28&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87%E5%8F%8A%E8%B2%A0%E5%82%B5) The group's gearing ratio is not applicable; as of June 30, 2025, total bank and other borrowings were **HKD 1.11 billion**, with **HKD 661 million** repayable within one year at **1.8% to 7.0%** interest - The group's gearing ratio is not applicable[66](index=66&type=chunk) | Metric | As of June 30, 2025 (HKD millions) | As of December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Interest-bearing bank and other borrowings (current portion) | 661.3 | 548.0 | | Interest-bearing bank borrowings (non-current portion) | 448.8 | 432.4 | | Total borrowings | 1,110.1 | 980.4 | - Bank borrowings bear interest at annual rates ranging from **1.8% to 7.0%**[66](index=66&type=chunk) [Business Review](index=29&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) [Overall Business Performance](index=29&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E5%8B%99%E8%A1%A8%E7%8F%BE) As a precision structural components supplier, the group's revenue decreased by **16.8%** due to business disposal, but profit attributable to owners surged by **395.3%**, driven by reduced finance, R&D, and depreciation costs - The group's revenue was approximately **HKD 2.483 billion**, a year-on-year decrease of **16.8%**, or a slight decrease of **0.5%** if excluding the revenue contribution from the disposed precision components business[67](index=67&type=chunk) - Profit attributable to owners of the company was **HKD 63.4 million**, a year-on-year increase of approximately **395.3%**[67](index=67&type=chunk) - The increase in profit was primarily due to substantial reductions in finance costs and bank charges, a significant decrease in R&D costs, and a substantial reduction in depreciation expenses resulting from fixed asset impairment[67](index=67&type=chunk)[68](index=68&type=chunk) - The one-off net gain of approximately **HKD 146.4 million** from the disposal of the precision components business in the prior period partially offset the increase in profit for the current period[68](index=68&type=chunk) [Business Segments](index=30&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E9%83%A8) The group's business is divided into consumer electronics structural components and home & sports products segments, each showing distinct growth trends and strategic adjustments [Consumer Electronics Structural Components](index=31&type=section&id=%E6%B6%88%E8%B2%BB%E9%A1%9E%E9%9B%BB%E5%AD%90%E7%94%A2%E5%93%81%E7%B5%90%E6%A7%8B%E4%BB%B6) This segment's sales were approximately **HKD 1.903 billion**, down **23.2%**, due to business disposal and smartphone market decline; the group is optimizing its layout and opened a new Vietnam factory for network communication equipment - This segment's sales amounted to approximately **HKD 1.903 billion**, accounting for approximately **76.6%** of total revenue, a year-on-year decrease of **23.2%**[71](index=71&type=chunk) - Excluding the contribution from the disposed precision components business, this segment's revenue decreased by **4.3%** year-on-year[71](index=71&type=chunk) - Smartphone market shipments declined by **0.6%**, with economic uncertainty suppressing consumers' willingness to upgrade phones[71](index=71&type=chunk) - The group is actively integrating and optimizing its existing business layout and has commenced production at a new network communication equipment factory in Vietnam[71](index=71&type=chunk)[72](index=72&type=chunk) [Home and Sports Products](index=32&type=section&id=%E5%AE%B6%E5%B1%85%E5%8F%8A%E9%AB%94%E8%82%B2%E7%94%A2%E5%93%81) This segment's sales were approximately **HKD 580 million**, up **14.4%**, driven by broadened customer base, deepened core relationships, and enhanced efficiency from a new Malaysian Industry 4.0 factory - This segment's sales amounted to approximately **HKD 580 million**, a year-on-year increase of **14.4%**, accounting for approximately **23.4%** of total revenue[73](index=73&type=chunk) - Primarily produces household durables, home tools, sports products, and healthcare products for well-known European and American brands[73](index=73&type=chunk) - Actively broadening its customer base, deepening relationships with core customers, and advancing its international production base layout, with the new Malaysian factory having commenced production[73](index=73&type=chunk) [Total Revenue by Product Category](index=32&type=section&id=%E6%8C%89%E7%94%A2%E5%93%81%E9%A1%9E%E5%88%A5%E8%A8%88%E7%AE%97%E4%B9%8B%E7%B8%BD%E6%94%B6%E5%85%A5%E7%99%BE%E5%88%86%E6%AF%94) The proportion of consumer electronics structural components in total revenue decreased, while home and sports products increased | Product Category | 2025 | 2024 | | :--- | :--- | :--- | | Consumer electronics structural components | 76.6% | 83.0% | | Home and sports products | 23.4% | 17.0% | [Outlook](index=32&type=section&id=%E5%B1%95%E6%9C%9B) [Smartphone Market](index=33&type=section&id=%E6%99%BA%E8%83%BD%E6%89%8B%E6%A9%9F%E5%B8%82%E5%A0%B4) The group expects the smartphone market to benefit from generative AI and new materials, leveraging partnerships and technology to seize growth opportunities - Generative AI is rapidly becoming a core driver for enhancing phone value[76](index=76&type=chunk) - The group has established long-term partnerships with major global phone brands and actively participates in the development of next-generation smartphone casings and accessories[76](index=76&type=chunk) - Actively exploring new materials and advanced processes, such as glass fiber phone casings, to meet market demand for a balance of strength and weight[76](index=76&type=chunk) [Home and Sports Products Segment](index=33&type=section&id=%E5%AE%B6%E5%B1%85%E5%8F%8A%E9%AB%94%E8%82%B2%E7%94%A8%E5%93%81%E5%88%86%E9%83%A8) The home and sports products segment sees rapid growth from "product design + smart manufacturing," "plastics + hardware" integration, and stable US tariff policies, with Malaysian and Vietnamese factories boosting growth - This segment benefits from its "product design + smart manufacturing" system and "plastics + hardware" integrated development, demonstrating strong competitiveness in sports outdoor equipment, home living products, and healthcare products[77](index=77&type=chunk) - Key drivers include consumption upgrades, the advancement of smart manufacturing in China, and stable US tariff policies towards Southeast Asia[77](index=77&type=chunk) - Malaysian and Vietnamese factories will help customers more accurately forecast order demand, expected to further drive business growth[77](index=77&type=chunk) [Future Strategies](index=34&type=section&id=%E6%9C%AA%E4%BE%86%E7%AD%96%E7%95%A5) The group will achieve long-term sustainable growth by optimizing management, enhancing quality and efficiency, deepening customer cooperation, and expanding potential areas with innovative technologies - Continuously optimize internal management, enhance product quality, and improve production efficiency to effectively maintain market share and increase capacity utilization[78](index=78&type=chunk) - Closely monitor market changes, deepen cooperation with core customers, and further expand potential business areas with innovative technologies and leading processes[78](index=78&type=chunk) - Drive long-term sustainable growth and unlock asset value through efficient customer interaction, precise resource allocation, and continuously optimized manufacturing processes[78](index=78&type=chunk) [Supplementary Information](index=34&type=section&id=%E8%A3%9C%E5%85%85%E8%B3%87%E6%96%99) [Interim Dividend](index=34&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend paying any interim dividend for the period - The Board of Directors does not recommend the payment of any interim dividend for the period (2024: nil)[80](index=80&type=chunk) [Purchase, Sale or Redemption of the Company's Securities](index=34&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%AD%89%E5%88%B8) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[81](index=81&type=chunk) [Share Option and Share Award Schemes](index=35&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E5%8F%8A%20%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%88%83) The group uses share option and award schemes to attract talent; the 2013 option scheme expired, a new one adopted, some awarded shares lapsed, and Tongda Creative Living established a restricted A-share incentive plan [Share Option Scheme](index=35&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%88%83) The 2013 share option scheme expired, and a new one was adopted to attract talent and promote business success, with grants not exceeding **10%** of issued share capital - The 2013 share option scheme expired on June 24, 2023, and no further share options will be granted thereunder[82](index=82&type=chunk) - The company adopted a new share option scheme to attract and retain talent and promote the overall success of the group's business[82](index=82&type=chunk) - The total number of shares that may be granted under the new share option scheme shall not exceed **10%** of the company's issued share capital (excluding treasury shares) as of the approval date[83](index=83&type=chunk) - Granting of share options to directors, chief executives, or substantial shareholders requires approval from independent non-executive directors, and further grants exceeding **0.1%** require approval from shareholders in a general meeting[83](index=83&type=chunk)[84](index=84&type=chunk) - No share options were granted under the new share option scheme during the period and up to the date of this report[85](index=85&type=chunk) [Share Award Scheme Established by the Company](index=36&type=section&id=%E7%94%B1%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%89%80%E8%A8%AD%E7%AB%8B%E4%B9%8B%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%88%83) The company adopted a share award scheme to foster "risk-sharing, benefit-sharing" with management and retain talent; **29.05 million** awarded shares lapsed due to unfulfilled vesting conditions - The share award scheme aims to establish a "risk-sharing, benefit-sharing" mechanism with middle and senior management and to attract and retain core talent for the group[88](index=88&type=chunk) - The total number of shares awarded under the share award scheme shall not exceed **10%** of the company's total issued shares as of the adoption date of the scheme[89](index=89&type=chunk) - A total of **29.05 million** awarded shares lapsed during the period due to unfulfilled vesting conditions[89](index=89&type=chunk) - No awarded shares were granted under the share award scheme for the six months ended June 30, 2025, and 2024[90](index=90&type=chunk) [Share Award Scheme Established by a Subsidiary](index=38&type=section&id=%E7%94%B1%E4%B8%80%E9%96%93%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E6%89%80%E8%A8%AD%E7%AB%8B%E4%B9%8B%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%88%83) Tongda Creative Living established a restricted A-share incentive plan for long-term management incentives; **1.8676 million** restricted A-shares were granted, with **307,000** reserved for December 2024 - Tongda Creative Living established a restricted A-share incentive plan to provide long-term incentives for middle and senior management[91](index=91&type=chunk) - The total number of shares granted under the incentive plan does not exceed **10%** of Tongda Creative Living's total issued shares[91](index=91&type=chunk) - **1.8676 million** restricted A-shares were granted to 76 participants on January 4, 2024, at a grant price of **HKD 14.31** per share[91](index=91&type=chunk) - An additional **307,000** restricted A-shares were reserved for grant to 17 participants in December 2024, at a grant price of **RMB 11.65** per share[92](index=92&type=chunk) [Corporate Governance Code](index=39&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company complied with all applicable Corporate Governance Code provisions, with combined Chairman and CEO roles providing strong and consistent leadership - The company complied with all applicable code provisions of the Corporate Governance Code during the period[95](index=95&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Wang Yanan, which the Board believes provides strong and consistent leadership[95](index=95&type=chunk) [Audit Committee](index=39&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%91%A1%E6%9C%83) The Audit Committee, comprising three independent and one non-executive director, advises on accounting, monitors auditor independence, and reviews risk management and internal controls - The Audit Committee comprises three independent non-executive directors and one non-executive director, with Mr. Ding Lianghui serving as Chairman[96](index=96&type=chunk) - The committee is responsible for providing accounting and financial advice, monitoring the independence of external auditors, and reviewing and monitoring the group's risk management and internal control systems[96](index=96&type=chunk) - The Audit Committee and the company's auditors have reviewed the group's unaudited interim results for the period[96](index=96&type=chunk) [Model Code for Securities Transactions](index=39&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99) The company adopted the Model Code for Securities Transactions, and all directors confirmed full compliance during the period - The company has adopted the Model Code for Securities Transactions as set out in Appendix C3 of the Listing Rules[97](index=97&type=chunk) - All directors have confirmed full compliance with the standards set out in the Model Code throughout the period[97](index=97&type=chunk) [Events After the Reporting Period](index=40&type=section&id=%E6%9C%9F%E6%9C%AB%E5%BE%8C%E4%BA%8B%E9%A0%85) - No significant post-reporting period events affecting the company or its subsidiaries require disclosure[98](index=98&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=40&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E4%BD%88%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) - This announcement will be published on the HKEX and the company's website[99](index=99&type=chunk) - The full interim report will be available on the HKEX and the company's website at the appropriate time[99](index=99&type=chunk) [Acknowledgement](index=40&type=section&id=%E8%87%B4%E8%AC%9D) - The Chairman thanks all employees, management, customers, and suppliers for their support, anticipating the group's modern and advanced development[100](index=100&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) [Company Information and Announcement](index=1&type=section&id=Company%20Information%20and%20Announcement) China Shunke Long Holdings Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, which were reviewed by the Company's audit committee - China Shunke Long Holdings Limited (Stock Code: 974) announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) - The unaudited consolidated results have been reviewed by the Company's audit committee[2](index=2&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) For the six months ended June 30, 2025, the Company's revenue decreased by 20.2% to RMB 245,947 thousand, gross profit decreased by 25.7% to RMB 28,809 thousand, but loss for the period significantly narrowed by 82.5% to RMB 3,285 thousand; total assets and total liabilities also decreased by 10.2% and 12.2% respectively Financial Highlights for the Six Months Ended June 30 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 245,947 | 308,164 | -20.2% | | Gross Profit | 28,809 | 38,783 | -25.7% | | Loss for the period | (3,285) | (18,747) | -82.5% | | **As at period-end** | | | | | Total Assets | 273,622 | 304,700 | -10.2% | | Total Liabilities | 195,226 | 222,342 | -12.2% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Company's revenue was RMB 245,947 thousand, gross profit RMB 28,809 thousand, loss for the period significantly narrowed to RMB 3,285 thousand, and basic and diluted loss per share was RMB 0.01 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 245,947 | 308,164 | | Cost of inventories sold | (217,138) | (269,381) | | Gross Profit | 28,809 | 38,783 | | Other operating income | 14,014 | 8,589 | | Selling and distribution costs | (36,482) | (56,311) | | Administrative expenses | (8,043) | (6,891) | | Finance costs | (2,242) | (2,264) | | Loss before tax | (3,243) | (18,677) | | Income tax expense | (42) | (70) | | Loss for the period | (3,285) | (18,747) | | Loss for the period attributable to owners of the Company | (3,200) | (18,596) | | Loss per share - basic and diluted (RMB) | (0.01) | (0.06) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As at June 30, 2025, the Company's total non-current assets were RMB 83,912 thousand, total current assets RMB 190,810 thousand, and total current liabilities RMB 173,495 thousand; net assets decreased to RMB 78,396 thousand, mainly due to reduced retained earnings and exchange differences Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, plant and equipment | 23,625 | 23,452 | | Right-of-use assets | 45,645 | 54,785 | | Investment properties | 8,207 | 8,370 | | Deferred tax assets | 1,127 | 1,127 | | **Current Assets** | | | | Inventories | 62,459 | 77,535 | | Trade and bills receivables | 36,844 | 35,088 | | Deposits paid, prepayments and other receivables | 64,682 | 77,229 | | Cash and cash equivalents | 25,523 | 21,152 | | **Current Liabilities** | | | | Trade payables | 50,709 | 66,591 | | Other payables | 25,423 | 21,503 | | Bank borrowings | 62,000 | 62,000 | | **Net Assets** | 78,396 | 82,358 | | **Total Equity** | 78,396 | 82,358 | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the Company decreased from RMB 81,346 thousand at the beginning of the period to RMB 77,469 thousand, mainly due to a loss for the period of RMB 3,200 thousand and exchange differences of RMB 677 thousand arising from translation of financial statements Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | January 1, 2025 (RMB thousands) | Loss for the period (RMB thousands) | Exchange differences (RMB thousands) | June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the Company | 81,346 | (3,200) | (677) | 77,469 | | Non-controlling interests | 1,012 | (85) | – | 927 | | **Total Equity** | **82,358** | **(3,285)** | **(677)** | **78,396** | - Statutory reserve, in accordance with the PRC Company Law, requires 10% of annual statutory after-tax net profit (after offsetting any prior year losses) to be allocated until it reaches 50% of the registered capital[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash generated from operating activities was RMB 22,544 thousand, net cash used in investing activities RMB 3,613 thousand, and net cash used in financing activities RMB 13,912 thousand, resulting in a net increase in cash and cash equivalents of RMB 5,019 thousand Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Activity Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash from (used in) operating activities | 22,544 | (3,855) | | Net cash used in investing activities | (3,613) | (4,349) | | Net cash used in financing activities | (13,912) | (15,633) | | Net increase in cash and cash equivalents | 5,019 | (23,837) | | Cash and cash equivalents at January 1 | 21,152 | 48,683 | | Effect of foreign exchange rate changes | (648) | 272 | | Cash and cash equivalents at June 30 | 25,523 | 25,118 | [Notes to the Condensed Consolidated Interim Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [General Information and Basis of Preparation](index=7&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) China Shunke Long Holdings Limited is incorporated in the Cayman Islands, primarily operating supermarket chain stores in Guangdong Province, China, maintaining both retail and wholesale distribution channels; its shares are listed on the Main Board of the Hong Kong Stock Exchange, with Supply and Marketing Grand Bazaar Group as the controlling shareholder - The Company was incorporated in the Cayman Islands, and its shares were listed on the Main Board of The Stock Exchange of Hong Kong on September 10, 2015[10](index=10&type=chunk) - The Group operates supermarket chain stores, primarily in Guangdong Province, China, maintaining both retail and wholesale distribution channels[11](index=11&type=chunk) - The Company's controlling shareholder is Supply and Marketing Grand Bazaar Group (whose shares are listed on the Shenzhen Stock Exchange), and the ultimate controlling party is the All-China Federation of Supply and Marketing Cooperatives[11](index=11&type=chunk) [Accounting Policies](index=7&type=section&id=Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with those used for the 2024 annual consolidated financial statements; amendments to IFRS accounting standards were first applied in this interim period but did not have a significant impact on financial performance and position - The condensed consolidated financial statements are prepared on a historical cost basis and in accordance with International Accounting Standard 34 and the applicable disclosure requirements of Appendix D2 to the Listing Rules[12](index=12&type=chunk)[13](index=13&type=chunk) - Amendments to IFRS accounting standards (HKAS 21 Amendment: Lack of Exchangeability) were first applied in this interim period but did not have a significant impact on the Group's financial performance and position[14](index=14&type=chunk) [Operating Segment Information](index=8&type=section&id=Operating%20Segment%20Information) The Group has two reportable segments: retail store operations and wholesale distribution; for the six months ended June 30, 2025, retail store operations revenue was RMB 188,366 thousand and wholesale distribution revenue was RMB 57,581 thousand, with both segments reporting losses; all revenue and non-current assets primarily originate from China - The Group has two reportable segments: retail store operations (selling fresh food, groceries, and household items) and wholesale distribution (selling fast-moving consumer goods and groceries)[15](index=15&type=chunk)[17](index=17&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2025 Loss (RMB thousands) | 2024 Revenue (RMB thousands) | 2024 Loss/Profit (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Retail store operations | 188,366 | (115) | 231,307 | (16,839) | | Wholesale distribution | 57,581 | (2,568) | 76,857 | 25 | | **Total** | **245,947** | **(2,683)** | **308,164** | **(16,814)** | - The Group's revenue from external customers and non-current assets are entirely from China (domicile)[19](index=19&type=chunk)[20](index=20&type=chunk) [Revenue and Other Operating Income](index=10&type=section&id=Revenue%20and%20Other%20Operating%20Income) For the six months ended June 30, 2025, the Group's revenue primarily came from goods sales, with retail store operations contributing RMB 184,134 thousand and wholesale distribution RMB 57,581 thousand; other operating income significantly increased by 63.2% year-on-year to RMB 14,014 thousand, mainly due to increased gains from early lease terminations Revenue Analysis (For the six months ended June 30) | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | General retail sales under retail store operations | 178,602 | 218,036 | | Bulk sales under retail store operations | 5,532 | 2,770 | | Integrated wholesale under wholesale distribution | 57,581 | 76,857 | | Commission income from franchise sales under retail store operations | 532 | 6,292 | | Rental income from subleasing certain retail areas under retail store operations | 3,700 | 4,209 | | **Total Revenue** | **245,947** | **308,164** | Other Operating Income Analysis (For the six months ended June 30) | Income Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Gain from early termination of leases | 3,111 | 183 | | Gain on disposal of property, plant and equipment | 29 | 89 | | Government grants | 110 | 8 | | Interest income from bank deposits | 42 | 130 | | Promotion income from suppliers | 5,012 | 5,299 | | Net rental income from investment properties | 1,458 | 1,371 | | Others | 4,252 | 1,509 | | **Total** | **14,014** | **8,589** | - The net gain from early termination of leases in the first half of 2025 was **RMB 3,111 thousand**, a significant increase from **RMB 183 thousand** in the same period of 2024[25](index=25&type=chunk) [Loss Before Tax](index=11&type=section&id=Loss%20Before%20Tax) For the six months ended June 30, 2025, loss before tax was RMB 3,243 thousand, a significant narrowing from RMB 18,677 thousand in the prior year; major expenses included employee benefit expenses of RMB 22,175 thousand and depreciation of right-of-use assets of RMB 8,843 thousand Items Deducted from Loss Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 3,511 | 3,571 | | Depreciation of investment properties | 163 | 163 | | Depreciation of right-of-use assets | 8,843 | 14,303 | | Total employee benefit expenses | 22,175 | 29,846 | | Total finance costs | 2,242 | 2,264 | [Income Tax Expense](index=12&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was RMB 42 thousand, a decrease from the prior year; PRC subsidiaries are subject to a 25% corporate income tax rate, with preferential rates for small low-profit enterprises, while Hong Kong and Macau subsidiaries incurred no taxable profits and thus no income tax - For the six months ended June 30, 2025, income tax expense was **RMB 42 thousand**, a decrease from **RMB 70 thousand** in the same period of 2024[29](index=29&type=chunk) - PRC subsidiaries are subject to a tax rate of **25%**, but small low-profit enterprises may enjoy preferential tax rates of **5% or 10%**[29](index=29&type=chunk)[30](index=30&type=chunk) - The Group did not incur taxable profits in the Cayman Islands, British Virgin Islands, Hong Kong, and Macau, thus no related income tax was payable[29](index=29&type=chunk)[30](index=30&type=chunk) [Dividends](index=12&type=section&id=Dividends) For the six months ended June 30, 2025, the Company neither paid nor proposed any interim dividends, and no dividends have been proposed since the end of the reporting period - No dividends were paid or proposed for the six months ended June 30, 2025 (six months ended June 30, 2024: nil), and no dividends have been proposed since the end of the reporting period (2024: nil)[31](index=31&type=chunk) [Loss Per Share](index=13&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the Company was RMB 0.01, a significant narrowing from RMB 0.06 in the prior year; diluted loss per share was the same as basic loss per share due to the absence of potential dilutive ordinary shares Loss Per Share Calculation (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company | (3,200) | (18,596) | | Weighted average number of ordinary shares used for basic and diluted loss per share calculation | 290,457,000 | 290,457,000 | | Loss per share - basic and diluted (RMB) | (0.01) | (0.06) | - As there were no outstanding potential dilutive ordinary shares for both periods, the diluted loss per share was the same as the basic loss per share[32](index=32&type=chunk) [Capital Expenditure](index=13&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group added RMB 4,079 thousand in property, plant and equipment; at period-end, the carrying value of property, plant and equipment was RMB 23,625 thousand, and investment properties RMB 8,207 thousand; some buildings and investment properties were pledged to banks for financing Changes in Property, Plant and Equipment and Investment Properties (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Carrying value of property, plant and equipment at beginning of period | 23,452 | 28,095 | | Additions | 4,079 | 4,916 | | Disposals | (395) | (348) | | Depreciation/Amortisation | (3,511) | (3,571) | | Carrying value of property, plant and equipment at end of period | 23,625 | 29,092 | | Carrying value of investment properties at beginning of period | 8,370 | 8,697 | | Depreciation/Amortisation of investment properties | (163) | (163) | | Carrying value of investment properties at end of period | 8,207 | 8,534 | - As at June 30, 2025, buildings with a carrying value of **RMB 10,334 thousand** and investment properties with a carrying value of **RMB 8,207 thousand** were pledged to banks[34](index=34&type=chunk) [Leases](index=14&type=section&id=Leases) As at June 30, 2025, total right-of-use assets were RMB 45,645 thousand and total lease liabilities RMB 40,642 thousand; new right-of-use assets of RMB 4,424 thousand were added, and depreciation of right-of-use assets of RMB 8,843 thousand and lease liability interest expense of RMB 1,181 thousand were recognized; total lease cash outflow was RMB 13,298 thousand Right-of-Use Assets (As at period-end) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Other leased properties held for own use | 25,821 | 34,525 | | Ownership interests in leased land | 19,824 | 20,260 | | **Total** | **45,645** | **54,785** | Lease Liabilities (As at period-end) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current | 18,911 | 24,303 | | Non-current | 21,731 | 31,527 | | **Total** | **40,642** | **55,830** | Lease-Related Amounts Recognized in Profit or Loss (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 8,843 | 14,303 | | Interest expense on lease liabilities | 1,181 | 1,702 | | Gain from early termination of leases | 3,111 | 183 | | Short-term lease expenses | 337 | 460 | - For the six months ended June 30, 2025, total lease cash outflow was **RMB 13,298 thousand**[41](index=41&type=chunk) [Trade and Bills Receivables](index=16&type=section&id=Trade%20and%20Bills%20Receivables) As at June 30, 2025, total trade and bills receivables were RMB 36,844 thousand, a slight increase from RMB 35,088 thousand at the end of 2024; the average credit period is 0 to 180 days, with receivables within 30 days accounting for the highest proportion Trade and Bills Receivables (As at period-end) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 39,020 | 38,111 | | Less: Impairment allowance for trade receivables | (2,201) | (3,069) | | Net trade receivables | 36,819 | 35,042 | | Bills receivables | 25 | 46 | | **Total** | **36,844** | **35,088** | - The average credit period granted to customers or tenants is generally **0 to 180 days** from the invoice date[42](index=42&type=chunk) Ageing Analysis of Trade Receivables (As at period-end) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 15,378 | 13,172 | | 31 to 60 days | 6,924 | 6,742 | | 61 to 180 days | 10,549 | 7,607 | | 181 to 365 days | 299 | 3,120 | | Over 1 year to 2 years | 3,635 | 4,326 | | Over 2 years | 34 | 75 | | **Total** | **36,819** | **35,042** | [Trade Payables](index=17&type=section&id=Trade%20Payables) As at June 30, 2025, total trade payables were RMB 50,709 thousand, a decrease from RMB 66,591 thousand at the end of 2024; the Group generally obtains credit periods of 0 to 360 days from its suppliers - The Group generally obtains credit periods of **0 to 360 days** from its suppliers[43](index=43&type=chunk) Ageing Analysis of Trade Payables (As at period-end) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current to 30 days | 16,740 | 29,472 | | 31 to 60 days | 9,100 | 11,643 | | 61 to 180 days | 10,667 | 12,481 | | 181 to 365 days | 7,593 | 4,901 | | Over 1 year to 2 years | 1,829 | 2,357 | | Over 2 years | 4,780 | 5,737 | | **Total** | **50,709** | **66,591** | [Amounts Due from Related Companies](index=17&type=section&id=Amounts%20Due%20from%20Related%20Companies) As at June 30, 2025, amounts due from related companies were trade-related, unsecured, interest-free, and repayable on demand; the carrying value includes accumulated impairment losses of RMB 440 thousand - Amounts due from related companies are trade-related, unsecured, interest-free, and repayable on demand[45](index=45&type=chunk) - The carrying value includes accumulated impairment losses of **RMB 440 thousand**[45](index=45&type=chunk) [Bank Borrowings](index=17&type=section&id=Bank%20Borrowings) As at June 30, 2025, the Group had RMB 62,000 thousand in secured bank borrowings, bearing fixed annual interest rates of 3.35% to 3.45%, all repayable within one year; these borrowings are secured by certain buildings, right-of-use assets, and investment properties Bank Borrowings (As at period-end) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Secured bank borrowings classified as current liabilities | 62,000 | 62,000 | | Due within one year | 62,000 | 62,000 | - Bank borrowings bear fixed annual interest rates of **3.35% to 3.45%** (December 31, 2024: 3.45% to 3.6%)[47](index=47&type=chunk) - The Group's interest-bearing bank borrowings are secured by certain buildings, right-of-use assets, and investment properties[48](index=48&type=chunk)[49](index=49&type=chunk) [Share Capital](index=18&type=section&id=Share%20Capital) As at June 30, 2025, the Company's authorized share capital was 2,000,000,000 ordinary shares of HKD 0.01 each, with 290,457,000 issued and fully paid ordinary shares of HKD 0.01 each, having a carrying value of RMB 2,387 thousand Share Capital (As at period-end) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Authorized share capital (2,000,000,000 shares of HKD 0.01 each) | 15,826 | 15,826 | | Issued and fully paid share capital (290,457,000 shares of HKD 0.01 each) | 2,387 | 2,387 | [Operating Lease Arrangements](index=18&type=section&id=Operating%20Lease%20Arrangements) The Group, as lessor, subleases internal areas of its retail stores and leases out investment properties for terms ranging from 1 to 10 years; as at June 30, 2025, irrevocable operating lease payments receivable within one year amounted to RMB 8,966 thousand - The Group subleases certain internal areas of its retail stores and leases out its investment properties, with negotiated lease terms ranging from **1 to 10 years**[49](index=49&type=chunk) Future Operating Lease Payments Receivable (As at period-end) | Period | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within one year | 8,966 | 9,397 | [Major Non-Cash Transactions](index=19&type=section&id=Major%20Non-Cash%20Transactions) For the six months ended June 30, 2025, the Group had a non-cash increase in right-of-use assets and lease liabilities of RMB 4,424 thousand due to retail store lease arrangements; concurrently, non-cash decreases of RMB 4,721 thousand in right-of-use assets and RMB 7,832 thousand in lease liabilities resulted from early lease terminations - Due to retail store lease arrangements, there was a non-cash increase in right-of-use assets and lease liabilities of **RMB 4,424 thousand**[50](index=50&type=chunk) - Due to early lease terminations, there was a non-cash decrease in right-of-use assets of **RMB 4,721 thousand** and a non-cash decrease in lease liabilities of **RMB 7,832 thousand**[50](index=50&type=chunk) [Related Party Transactions](index=19&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, the Group had purchases of goods from related companies amounting to RMB 265 thousand, and no sales of goods; total key management personnel compensation was RMB 1,449 thousand Related Party Transactions (For the six months ended June 30) | Related Party Relationship | Nature of Transaction | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Related companies | Sales of goods | – | 4 | | Related companies | Purchases of goods | 265 | 17 | Key Management Personnel Compensation (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 1,320 | 1,305 | | Contributions to retirement benefit schemes | 129 | 97 | | **Total** | **1,449** | **1,402** | - The consideration for sales and purchase transactions was based on past transaction prices, market prices, and discount rates, with a credit period of within **90 days**[53](index=53&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=20&type=section&id=Business%20Review) The Group operates as a supermarket chain in Guangdong Province, China, encompassing retail store operations, integrated wholesale, and franchise operations; as at June 30, 2025, the number of retail stores decreased to 39, and franchised retail stores to 939, while integrated wholesale focuses on attracting more distributors - The Group operates as a supermarket chain, primarily in Guangdong Province, China, maintaining both retail and wholesale distribution channels[54](index=54&type=chunk) [Retail Stores](index=20&type=section&id=Retail%20Stores) As at June 30, 2025, the Group's total number of retail stores decreased from 51 at the beginning of the year to 39, mainly due to closing or converting inefficient stores; 38 are in Guangdong Province, China, and 1 in Macau, China Retail Store Count Changes | Period/Year | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Beginning of period/year | 61 | 51 | | Additions | 6 | 0 | | Reductions | (16) | (12) | | End of period/year | 51 | 39 | Retail Store Geographical Distribution (June 30, 2025) | Location | Number of Retail Stores | | :--- | :--- | | Foshan | 32 | | Zhaoqing | 4 | | Zhuhai | 1 | | Shenzhen | 1 | | Total Guangdong Province | 38 | | Macau | 1 | | **Total** | **39** | [Integrated Wholesale](index=21&type=section&id=Integrated%20Wholesale) As at June 30, 2025, the Group retained exclusive distribution rights for 16 brands in Foshan and Zhaoqing, with an increased focus on attracting more distributors rather than retailers as customers - The Group retains exclusive distribution rights for **16 brands** in Foshan and Zhaoqing[56](index=56&type=chunk) - The Group is focusing more on attracting distributors rather than retailers as customers[56](index=56&type=chunk) [Franchise Operations](index=21&type=section&id=Franchise%20Operations) The Group operates a franchise program, and as at June 30, 2025, the number of franchised retail stores decreased from 1,181 at the beginning of the year to 939 - The Group operates a franchise program, and revenue from selling goods to franchisees constitutes part of its wholesale distribution revenue[57](index=57&type=chunk) Franchised Retail Store Count Changes | Period/Year | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Beginning of period/year | 1,008 | 1,181 | | Additions | 173 | 3 | | Reductions | 0 | 245 | | End of period/year | 1,181 | 939 | [Recent Developments and Outlook](index=21&type=section&id=Recent%20Developments%20and%20Outlook) In the first half of 2025, Shunke Long continued its "one store, one policy" strategy, significantly narrowing losses by optimizing the supply chain, closing inefficient stores, and expanding new customers; the second half will focus on "stabilizing existing business, expanding new business, and improving quality" strategies, optimizing supply chain management, innovating procurement models, enhancing gross profit margins, and accelerating diversified growth drivers and new business formats, including launching large-scale school food delivery projects and transitioning to an integrated brand trading model - In the first half of 2025, Shunke Long continued to implement its "one store, one policy" strategy, achieving positive progress in profit improvement initiatives and significantly narrowing its losses[58](index=58&type=chunk) - The supermarket segment significantly improved operational efficiency through supply chain and cost structure optimization; the brand agency business adjusted its distribution layout and expanded its operating model; the group purchasing segment achieved strong growth; and the headquarters segment maintained stable operations through cost control and improved management efficiency[59](index=59&type=chunk) - In the second half of the year, the Company will continue to focus on the "stabilizing existing business, expanding new business, and improving quality" strategy, further optimizing supply chain management, innovating procurement models, enhancing gross profit margins, and strengthening operational guidance for adjusted stores[60](index=60&type=chunk) - The group purchasing segment will continue to expand its institutional and corporate customer base and actively prepare for the launch of large-scale school food delivery projects; the brand agency business will accelerate its transformation towards an integrated brand trading model[60](index=60&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) Revenue for the period decreased by 20.2% year-on-year to RMB 246.0 million, with gross profit margin decreasing by 0.9% to 11.7%; other operating income grew by 63.2%, selling and distribution costs significantly decreased by 35.2%, administrative expenses increased by 16.7%, finance costs slightly decreased by 1.0%, and income tax expense decreased; ultimately, net loss attributable to owners of the Company significantly narrowed by 82.8% to RMB 3.2 million [Revenue](index=22&type=section&id=Revenue) Revenue for the period was approximately RMB 246.0 million, a year-on-year decrease of 20.2%, mainly due to the optimization and closure or conversion of inefficient retail stores and a reasonable reduction in the scale of distribution agency brands - Revenue for the period was approximately **RMB 246.0 million**, a **20.2% decrease** compared to the same period in 2024[62](index=62&type=chunk) - Revenue from retail store business was approximately **RMB 188.4 million**, a **18.6% decrease** year-on-year; revenue from wholesale distribution business was approximately **RMB 57.6 million**, a **25.1% decrease** year-on-year[62](index=62&type=chunk) [Gross Profit Margin](index=22&type=section&id=Gross%20Profit%20Margin) Gross profit margin for the period was 11.7%, a decrease of 0.9% from 12.6% in the same period of 2024 - Gross profit margin for the period was **11.7%**, a **0.9% decrease** from **12.6%** in the same period of 2024[63](index=63&type=chunk) [Other Operating Income](index=23&type=section&id=Other%20Operating%20Income) Other operating income for the period was approximately RMB 14.0 million, a year-on-year increase of 63.2%, mainly due to increased gains from early termination of lease contracts and increased income from converted franchised retail stores - Other operating income for the period was approximately **RMB 14.0 million**, a **63.2% increase** compared to the same period in 2024[64](index=64&type=chunk) - The increase was mainly due to increased gains from early termination of lease contracts and increased income from converted franchised retail stores[64](index=64&type=chunk) [Selling and Distribution Costs](index=23&type=section&id=Selling%20and%20Distribution%20Costs) Selling and distribution costs for the period were approximately RMB 36.5 million, a year-on-year decrease of 35.2%, mainly due to significant reductions in labor and lease costs from optimizing and closing inefficient retail stores, and active cost control by management - Selling and distribution costs for the period were approximately **RMB 36.5 million**, a **35.2% decrease** compared to the same period in 2024[65](index=65&type=chunk) - The decrease was mainly due to significant reductions in labor costs and lease costs from optimizing and closing or converting inefficient retail stores, as well as reasonable control over vehicle delivery fees, utilities, and advertising and promotion expenses[65](index=65&type=chunk) [Administrative Expenses](index=23&type=section&id=Administrative%20Expenses) Administrative expenses for the period were approximately RMB 8.0 million, a year-on-year increase of 16.7%, mainly due to reduced lease concessions for retail stores and forfeiture of some early lease termination deposits for optimized and closed retail stores - Administrative expenses for the period were approximately **RMB 8.0 million**, a **16.7% increase** compared to the same period in 2024[66](index=66&type=chunk) - The increase was mainly due to reduced lease concessions for retail stores and forfeiture of some early lease termination deposits for optimized and closed retail stores[66](index=66&type=chunk) [Finance Costs](index=23&type=section&id=Finance%20Costs) Finance costs for the period were approximately RMB 2.2 million, a slight year-on-year decrease of 1.0%, mainly due to a decrease in unrecognized finance expenses on lease liabilities - Finance costs for the period were approximately **RMB 2.2 million**, a **1.0% decrease** compared to the same period in 2024[67](index=67&type=chunk) - The decrease was mainly due to a year-on-year decrease in unrecognized finance expenses on lease liabilities[67](index=67&type=chunk) [Income Tax Expense](index=23&type=section&id=Income%20Tax%20Expense) Income tax expense for the period was approximately RMB 42 thousand, a decrease of RMB 28 thousand year-on-year, mainly due to a subsidiary's supplementary corporate income tax payment in the prior year - Income tax expense for the period was approximately **RMB 42 thousand**, a **RMB 28 thousand decrease** compared to the same period in 2024[68](index=68&type=chunk) - The decrease was due to a subsidiary being determined not to be a small low-profit enterprise and making a supplementary corporate income tax payment in the same period of 2024[68](index=68&type=chunk) [Net Loss](index=24&type=section&id=Net%20Loss) Net loss attributable to owners of the Company for the period was approximately RMB 3.2 million, a year-on-year reduction of 82.8%, mainly due to a significant decrease in selling and distribution costs and an increase in other operating income - Net loss attributable to owners of the Company for the period was approximately **RMB 3.2 million**, an **82.8% reduction** compared to the same period in 2024[69](index=69&type=chunk) - The decrease in net loss was mainly due to a significant reduction in selling and distribution costs and an increase in other operating income[69](index=69&type=chunk) [Total Comprehensive Expense](index=24&type=section&id=Total%20Comprehensive%20Expense) Total comprehensive expense attributable to owners of the Group for the period was approximately RMB 3.9 million, a year-on-year decrease of 78.8%, consistent with the reduction in net loss - Total comprehensive expense attributable to owners of the Group for the period was approximately **RMB 3.9 million**, a **78.8% decrease** compared to the same period in 2024[70](index=70&type=chunk) - The decrease was mainly due to a significant reduction in selling and distribution costs and an increase in other operating income[70](index=70&type=chunk) [Capital Expenditure](index=24&type=section&id=Capital%20Expenditure) The Group's capital expenditure requirements primarily involve additions to property, plant and equipment for new retail stores and renovation of existing ones; expenditure for the period was approximately RMB 4.1 million - The Group's capital expenditure requirements primarily involve additions to property, plant and equipment for new retail stores and renovation of existing retail stores[71](index=71&type=chunk) - The Group's expenditure on property, plant and equipment for the period was approximately **RMB 4.1 million**[71](index=71&type=chunk) [Use of Proceeds](index=24&type=section&id=Use%20of%20Proceeds) The net proceeds from the global offering were approximately RMB 155.0 million, with an amended allocation plan to adapt to market changes; as at June 30, 2025, most of the proceeds have been utilized, with the remaining RMB 6.9 million primarily for renovating existing retail stores, expected to be fully utilized by December 31, 2026 - The net proceeds from the global offering were approximately **HKD 188.6 million** (approximately **RMB 155.0 million**), with an amended allocation plan to adapt to the slowdown in China's economic growth and the retail market outlook[72](index=72&type=chunk)[73](index=73&type=chunk) Use and Allocation of Net Proceeds | Use | Original Allocation (RMB millions) | Revised Allocation (RMB millions) | Actual Utilized as at June 30, 2025 (RMB millions) | Remaining as at June 30, 2025 (RMB millions) | | :--- | :--- | :--- | :--- | :--- | | Opening new retail stores | 116.9 | 74.4 | 74.4 | – | | Renovating existing retail stores | – | 27.1 | 20.2 | 6.9 | | Repaying bank borrowings | – | 27.9 | 27.9 | – | | Upgrading information systems | 11.2 | 11.2 | 11.2 | – | | Renovating and expanding distribution centers | 13.3 | 0.8 | 0.8 | – | | General working capital | 13.6 | 13.6 | 13.6 | – | | **Total** | **155.0** | **155.0** | **148.1** | **6.9** | - The Board expects the unutilized balance to be used as disclosed in the Company's announcement dated June 19, 2024, and is expected to be fully utilized by **December 31, 2026**[74](index=74&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20and%20Financial%20Resources) As at June 30, 2025, the Group had cash and cash equivalents of approximately RMB 25.5 million, net current assets of approximately RMB 16.2 million, and net assets of approximately RMB 78.4 million; unutilized bank facilities amounted to RMB 28.0 million; total trade and other receivables decreased by 9.6%, mainly due to reduced prepayments for goods and recovery of some long-term deposits - As at June 30, 2025, the Group had cash and cash equivalents of approximately **RMB 25.5 million** (December 31, 2024: RMB 21.2 million)[75](index=75&type=chunk) - Net current assets were approximately **RMB 16.2 million** (December 31, 2024: RMB 20.4 million), and net assets were approximately **RMB 78.4 million** (December 31, 2024: RMB 82.4 million)[75](index=75&type=chunk) - Total trade and bills receivables and deposits paid, prepayments and other receivables decreased by **9.6%**, mainly due to reduced prepayments for goods to brand manufacturers and the recovery of some long-term deposits[76](index=76&type=chunk) [Material Investments](index=25&type=section&id=Material%20Investments) The Group held no material investments during the period - The Group held no material investments during the period[77](index=77&type=chunk) [Material Acquisitions and Disposals](index=25&type=section&id=Material%20Acquisitions%20and%20Disposals) The Group did not undertake any material acquisitions or disposals of subsidiaries or associates during the period - The Group did not undertake any material acquisitions or disposals of subsidiaries or associates during the period[78](index=78&type=chunk) [Indebtedness and Pledges of Assets](index=26&type=section&id=Indebtedness%20and%20Pledges%20of%20Assets) As at June 30, 2025, the Group had RMB 62.0 million in bank borrowings, all repayable within one year, secured by certain buildings, right-of-use assets, and investment properties - As at June 30, 2025, the Group had bank borrowings of **RMB 62.0 million**, all repayable within one year[79](index=79&type=chunk) - These loans bear fixed annual interest rates of **3.35%-3.45%**[79](index=79&type=chunk) - Pledged assets include buildings with a carrying value of approximately **RMB 10.3 million**, right-of-use assets of approximately **RMB 18.1 million**, and investment properties of approximately **RMB 8.2 million**[84](index=84&type=chunk) [Gearing Ratio](index=26&type=section&id=Gearing%20Ratio) As at June 30, 2025, the Group's gearing ratio (total borrowings divided by total equity) was approximately 79.1%, an increase from 75.3% as at December 31, 2024 - As at June 30, 2025, the Group's gearing ratio was approximately **79.1%** (December 31, 2024: 75.3%)[80](index=80&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) Most of the Group's assets, liabilities, and cash flows are denominated in RMB, and management believes that exchange rate fluctuations between RMB and foreign currencies will not have a significant impact on financial position and performance; no hedging activities are intended for the current period or the near future - Most of the Group's assets, liabilities, and cash flows are denominated in RMB, and management believes that exchange rate fluctuations will not have a significant impact[81](index=81&type=chunk) - No hedging activities are intended for the current period or the near future[81](index=81&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) As at June 30, 2025, the Group had not provided any guarantees to any third parties and had no material contingent liabilities - As at June 30, 2025, the Group had not provided any guarantees to any third parties and had no material contingent liabilities[82](index=82&type=chunk) [Employees](index=26&type=section&id=Employees) As at June 30, 2025, the Group had a total of 578 employees; the Company offers competitive salaries and internal training, maintains good employee relations, and has not experienced any significant labor disputes - As at June 30, 2025, the Group had a total of **578 employees**[83](index=83&type=chunk) - Employee salaries are maintained at a competitive level, with internal training and bonuses provided[83](index=83&type=chunk) - No significant impact on operations due to labor disputes occurred during the period, nor were there any significant difficulties in recruiting senior staff[83](index=83&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board has resolved not to declare any interim dividend for the period - The Board has resolved not to declare any interim dividend for the period[85](index=85&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[86](index=86&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=27&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As at June 30, 2025, Ms. Wang Hui and Ms. Du Jing held 50,000 and 99,100 ordinary shares of Supply and Marketing Grand Bazaar Group Co., Ltd. respectively, each representing less than 0.01% of the total issued shares; no other directors or chief executives had disclosable interests or short positions Directors' Long Positions in Ordinary Shares of Associated Corporations (June 30, 2025) | Director's Name | Name of Associated Corporation | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares of Associated Corporation | | :--- | :--- | :--- | :--- | :--- | | Ms. Wang Hui | Supply and Marketing Grand Bazaar Group Co., Ltd. | Beneficial owner | 50,000 | 0.00% | | Ms. Du Jing | Supply and Marketing Grand Bazaar Group Co., Ltd. | Beneficial owner | 99,100 | 0.00% | - Save as disclosed above, no other directors and chief executives had any interests or short positions required to be recorded in the register or otherwise notified to the Company and the Stock Exchange[88](index=88&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=28&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As at June 30, 2025, the All-China Federation of Supply and Marketing Cooperatives and its multi-level controlled corporations (including Supply and Marketing Grand Bazaar International Holdings Limited) collectively held 204,558,317 shares of the Company, representing 70.42% of the total issued shares; additionally, Infini Capital Management held 27,600,000 shares, representing 9.50% Substantial Shareholders' Long Positions in Shares (June 30, 2025) | Name of Substantial Shareholder | Capacity | Number of Shares (Long Position) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | All-China Federation of Supply and Marketing Cooperatives | Interest of controlled corporation | 204,558,317 | 70.42% | | Beijing Zhonghe Nongxin Enterprise Management Consulting Co., Ltd. | Interest of controlled corporation | 204,558,317 | 70.42% | | China Supply and Marketing Group Co., Ltd. | Interest of controlled corporation | 204,558,317 | 70.42% | | China Supply and Marketing Commercial Circulation Group Co., Ltd. | Interest of controlled corporation | 204,558,317 | 70.42% | | Zhonghe Lian Investment Co., Ltd. | Interest of controlled corporation | 204,558,317 | 70.42% | | New Cooperation Commercial Chain Group Co., Ltd. | Interest of controlled corporation | 204,558,317 | 70.42% | | Supply and Marketing Grand Bazaar Group Co., Ltd. | Interest of controlled corporation | 204,558,317 | 70.42% | | Hainan Supply and Marketing Grand Bazaar Holdings Co., Ltd. | Interest of controlled corporation | 204,558,317 | 70.42% | | Hainan Supply and Marketing Grand Bazaar Supply Chain Network Technology Co., Ltd. | Interest of controlled corporation | 204,558,317 | 70.42% | | Green Industry (Hong Kong) Co., Ltd. | Interest of controlled corporation | 204,558,317 | 70.42% | | Supply and Marketing Grand Bazaar International Holdings Limited | Beneficial owner | 204,558,317 | 70.42% | | Infini Capital Management | Beneficial owner | 27,600,000 | 9.50% | - The All-China Federation of Supply and Marketing Cooperatives indirectly holds **70.42%** of the Company's shares through multi-level equity control, ultimately holding interests in Supply and Marketing Grand Bazaar International Holdings Limited[94](index=94&type=chunk) [Share Option Scheme](index=29&type=section&id=Share%20Option%20Scheme) The Company's share option scheme was approved on August 19, 2015, to incentivize management and employees; as at the date of this interim report, the maximum number of shares subject to options that may be granted is 28,647,700 shares (approximately 9.86% of issued shares); no options were granted during the period - The share option scheme was approved on **August 19, 2015**, to incentivize management and employees[92](index=92&type=chunk) - The maximum number of shares subject to options that may be granted is **28,647,700 shares** (approximately **9.86%** of issued shares)[92](index=92&type=chunk) - No share options were granted before the end of the period[92](index=92&type=chunk) [Directors' Securities Transactions](index=29&type=section&id=Directors%27%20Securities%20Transactions) The Company has adopted the Model Code as the standard for directors' securities transactions; all directors confirmed compliance with the required standards of the Model Code throughout the period - The Company has adopted the Model Code as its own code of conduct for directors' securities transactions[93](index=93&type=chunk) - All directors confirmed compliance with the required standards set out in the Model Code throughout the period[93](index=93&type=chunk) [Sufficiency of Public Float](index=30&type=section&id=Sufficiency%20of%20Public%20Float) The Directors confirm that the Company has maintained the public float as required by the Listing Rules throughout the period and up to the date of this interim report - The Directors confirm that the Company has maintained the public float as required by the Listing Rules throughout the period and up to the date of this interim report[95](index=95&type=chunk) [Corporate Governance Practices](index=30&type=section&id=Corporate%20Governance%20Practices) The Company has complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the period, including appointing a Deputy CEO, revising the Nomination Committee's terms of reference to promote board diversity, appointing Nomination Committee members, successfully holding the AGM, and changes in company secretary and principal place of business in Hong Kong - The Company has complied with all code provisions of the Corporate Governance Code throughout the period[96](index=96&type=chunk) [Senior Management Personnel Arrangements](index=30&type=section&id=Senior%20Management%20Personnel%20Arrangements) The Company appointed Mr. Bai Tao as Deputy Chief Executive Officer on April 25, 2025, to enhance the management structure, strengthen daily operational management, and improve strategic execution capabilities - On **April 25, 2025**, the Company appointed Mr. Bai Tao as Deputy Chief Executive Officer[97](index=97&type=chunk) - Mr. Bai's extensive experience in the retail industry helps to improve the management structure, strengthen daily operational management, and enhance strategic execution capabilities[97](index=97&type=chunk) [Amendments to the Terms of Reference of the Nomination Committee](index=30&type=section&id=Amendments%20to%20the%20Terms%20of%20Reference%20of%20the%20Nomination%20Committee) On May 23, 2025, the Company revised the Nomination Committee's terms of reference to clarify its composition, operation, and responsibilities, including requiring at least one director of a different gender, aiming to promote board diversity and improve corporate governance structure - On **May 23, 2025**, the Company revised the terms of reference of the Nomination Committee, further clarifying its composition, operation, and responsibilities[98](index=98&type=chunk) - The revisions include requiring the committee to have at least one director of a different gender, aiming to promote board diversity and improve the corporate governance structure[98](index=98&type=chunk) [Appointment of Members to the Nomination Committee](index=30&type=section&id=Appointment%20of%20Members%20to%20the%20Nomination%20Committee) On May 28, 2025, the Company appointed Ms. Wang Hui, Executive Director and Chief Executive Officer, and Mr. Zheng Xueqi, Independent Non-executive Director, as members of the Nomination Committee to ensure gender diversity and strengthen board governance capabilities - On **May 28, 2025**, the Company appointed Ms. Wang Hui, Executive Director and Chief Executive Officer, and Mr. Zheng Xueqi, Independent Non-executive Director, as members of the Nomination Committee[99](index=99&type=chunk) - This aims to ensure gender diversity within the committee and further strengthen board governance capabilities[99](index=99&type=chunk) [Annual General Meeting and Protection of Shareholders' Rights](index=31&type=section&id=Annual%20General%20Meeting%20and%20Protection%20of%20Shareholders%27%20Rights) The Company held its Annual General Meeting on June 6, 2025, where all proposed resolutions were passed with 100% affirmative votes, demonstrating the Company's commitment to safeguarding shareholders' participation in decision-making and maintaining transparency - The Company held its Annual General Meeting on **June 6, 2025**, with all incumbent directors attending in person or electronically, and votes scrutinized by an independent third party[100](index=100&type=chunk) - All proposed resolutions were passed with **100% affirmative votes**, fully demonstrating the Company's commitment to safeguarding shareholders' participation in decision-making and maintaining transparency[100](index=100&type=chunk) [Change of Company Secretary](index=31&type=section&id=Change%20of%20Company%20Secretary) Mr. Qiu Minghao resigned as Company Secretary on June 30, 2025; Ms. Pang Hui, President of Anfu Zhixin Management Limited, was appointed as Company Secretary, authorized representative, and agent for service of process on June 30, 2025, to ensure continuity and professionalism of the company secretarial function - Mr. Qiu Minghao resigned as Company Secretary on **June 30, 2025**[101](index=101&type=chunk) - On **June 5, 2025**, the Company signed a listed company secretarial service agreement with Anfu Zhixin Management Limited, and on **June 30, 2025**, appointed Ms. Pang Hui, President of Anfu Zhixin, as Company Secretary, authorized representative, and agent for service of process[101](index=101&type=chunk) [Change of Principal Place of Business in Hong Kong](index=31&type=section&id=Change%20of%20Principal%20Place%20of%20Business%20in%20Hong%20Kong) The Company's principal place of business in Hong Kong has changed to Room 1602, 16/F, Yan Wing Commercial Building, 9 Irving Street, Causeway Bay, Hong Kong, effective June 30, 2025 - The Company's principal place of business in Hong Kong has changed to **Room 1602, 16/F, Yan Wing Commercial Building, 9 Irving Street, Causeway Bay, Hong Kong**, effective **June 30, 2025**[102](index=102&type=chunk) [Continuing Commitments](index=31&type=section&id=Continuing%20Commitments) The Company will continue to improve its corporate governance structure, promote diversified development, enhance transparency, and increase decision-making efficiency to ensure stable operations and create long-term value for shareholders - The Company will continue to improve its corporate governance structure, promote diversified development, enhance transparency, and increase decision-making efficiency to ensure stable operations and create long-term value for shareholders[103](index=103&type=chunk) [Events After the Reporting Period](index=31&type=section&id=Events%20After%20the%20Reporting%20Period) The Board is not aware of any disclosable material events occurring after June 30, 2025, and up to the date of this interim report - The Board is not aware of any disclosable material events occurring after **June 30, 2025**, and up to the date of this interim report[104](index=104&type=chunk) [Audit Committee](index=32&type=section&id=Audit%20Committee) The Company has established an Audit Committee, primarily responsible for providing independent opinions to the Board on financial reporting processes, internal controls, and the effectiveness of risk management systems; the condensed consolidated financial statements for this period, though unaudited, have been reviewed by the Audit Committee; all committee members are independent non-executive directors, with Mr. Zheng Xueqi serving as Chairman - The Company has established an Audit Committee in compliance with the Listing Rules and the Corporate Governance Code[105](index=105&type=chunk) - The primary responsibility of the Audit Committee is to provide independent opinions to the Board on the Group's financial reporting processes, internal control procedures, and the effectiveness of its risk management systems[105](index=105&type=chunk) - The Group's condensed consolidated financial statements for the six months ended June 30, 2025, although unaudited, have been reviewed by the Audit Committee[105](index=105&type=chunk) - The Audit Committee members include Mr. Zheng Xueqi (Chairman), Mr. Gao Jingyuan, and Mr. Wu Kai, all of whom are independent non-executive directors[106](index=106&type=chunk)

[Summary](index=1&type=section&id=Summary) Greentown China reported H1 2025 unaudited interim results, showing RMB 53.368 billion revenue and RMB 210 million shareholder profit, demonstrating optimized financial structure and strong sales performance Key Financial and Operating Indicators for H1 2025 | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Revenue | 53.368 billion yuan | 69.562 billion yuan | -23.3% | | Profit Attributable to Shareholders | 210 million yuan | 2.045 billion yuan | -89.7% | | Bank Deposits and Cash (Period-end) | 66.795 billion yuan | N/A | Historical High | | Short-term Debt Ratio | 16.3% | N/A | Historical Low | | Weighted Average Interest Cost of Total Borrowings | 3.6% | 4.0% | Decreased by 40 basis points | | Total Contracted Sales | 122.2 billion yuan | N/A | Ranked Second in Industry | | Newly Added Project Value | 90.7 billion yuan | N/A | Ranked Third in Industry | | Proportion of Newly Added Project Value in Tier 1 & 2 Cities | 88% | N/A | Structural Safety | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents Greentown China's unaudited interim condensed consolidated financial statements, reflecting operating results and financial position for H1 2025 [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) H1 2025 revenue decreased 23.3% to RMB 53.368 billion, with profit attributable to shareholders significantly down 89.7% to RMB 210 million Key Profit or Loss Statement Data for H1 2025 | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 53,368,264 | 69,562,037 | -23.3% | | Gross Profit | 7,158,895 | 9,103,633 | -21.4% | | Profit Before Tax | 2,237,052 | 4,668,759 | -52.1% | | Profit for the Period | 1,211,475 | 3,319,871 | -63.5% | | Profit for the Period Attributable to Owners of the Company | 209,907 | 2,044,902 | -89.7% | | Basic Earnings Per Share | RMB 0.08 | RMB 0.81 | -90.1% | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets reached RMB 518.114 billion, with net current assets at RMB 168.775 billion and net assets at RMB 119.323 billion Key Financial Position Data as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 72,602,316 | 70,094,243 | +3.6% | | Total Current Assets | 445,511,833 | 437,690,728 | +1.8% | | Total Current Liabilities | 276,736,767 | 285,505,028 | -3.1% | | Net Current Assets | 168,775,066 | 152,185,700 | +10.9% | | Total Non-current Liabilities | 122,054,215 | 108,795,760 | +12.2% | | Net Assets | 119,323,167 | 113,484,183 | +5.1% | | Total Equity | 119,323,167 | 113,484,183 | +5.1% | [Notes to the Interim Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on the interim condensed consolidated financial statements, covering preparation basis, accounting policy changes, and specific financial items [1. Basis of Preparation](index=7&type=section&id=1.%20Basis%20of%20Preparation) Interim condensed consolidated financial information is prepared under IAS 34 and should be read with the 2024 annual consolidated financial statements - Financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", is a condensed version, and should be read in conjunction with the annual financial statements[10](index=10&type=chunk) [2. Changes in Accounting Policies and Disclosures](index=7&type=section&id=2.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) Accounting policies are consistent with 2024 annual statements, with new IFRS adoptions having no material impact on current financial data - Accounting policies are consistent with the 2024 annual statements, and the newly adopted IAS 21 amendment "Lack of Exchangeability" has no material impact on current financial data[11](index=11&type=chunk)[12](index=12&type=chunk) [3. Operating Segment Information](index=7&type=section&id=3.%20Operating%20Segment%20Information) The Group's operating segments include property development, hotel operations, property investment, project management, and other businesses, with property development being the main contributor Revenue and Results by Operating Segment for H1 2025 | Segment | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | H1 2025 Results (RMB thousand) | H1 2024 Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 49,651,391 | 63,757,038 | 818,602 | 2,082,625 | | Hotel Operations | 452,864 | 486,897 | 7,759 | 31,687 | | Property Investment | 130,827 | 138,836 | 50,967 | 60,812 | | Project Management | 1,361,194 | 1,640,031 | 315,015 | 546,749 | | Others | 1,771,988 | 3,539,235 | 7,094 | 182,664 | | **Total** | **53,368,264** | **69,562,037** | **1,199,437** | **2,904,537** | Assets and Liabilities by Operating Segment as of June 30, 2025 | Segment | June 30, 2025 Assets (RMB thousand) | December 31, 2024 Assets (RMB thousand) | June 30, 2025 Liabilities (RMB thousand) | December 31, 2024 Liabilities (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 469,007,381 | 458,561,216 | 375,997,616 | 372,811,010 | | Hotel Operations | 9,958,944 | 10,204,302 | 889,378 | 966,578 | | Property Investment | 10,884,326 | 10,779,092 | 2,223,499 | 1,698,751 | | Project Management | 6,593,473 | 6,151,467 | 2,624,175 | 2,354,250 | | Others | 18,227,739 | 18,839,969 | 14,616,950 | 14,341,998 | | **Total Segments** | **514,671,863** | **504,536,046** | **396,351,618** | **392,172,587** | [4. Revenue](index=9&type=section&id=4.%20Revenue) H1 2025 total revenue was RMB 53.368 billion, primarily from customer contracts, representing a 23.3% year-on-year decrease, mainly from China Revenue Composition for H1 2025 | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue from Contracts with Customers | 53,237,437 | 69,423,201 | -23.3% | | Rental Income | 130,827 | 138,836 | -5.8% | | **Total** | **53,368,264** | **69,562,037** | **-23.3%** | - The Group's consolidated revenue primarily originates from the China market[18](index=18&type=chunk) [5. Other Income](index=11&type=section&id=5.%20Other%20Income) H1 2025 other income totaled RMB 930 million, a 46.0% decrease year-on-year, mainly driven by reduced interest income Other Income Composition for H1 2025 | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Interest Income | 706,686 | 1,480,321 | -52.3% | | Integrated Services Income | 55,480 | 110,066 | -49.6% | | Government Grants | 30,569 | 15,942 | +91.7% | | Dividend Income from Equity Investments | 26,370 | 30,021 | -12.2% | | Others | 111,150 | 84,996 | +30.8% | | **Total** | **930,255** | **1,721,346** | **-46.0%** | [6. Other Gains / (Losses)](index=11&type=section&id=6.%20Other%20Gains%20%2F%20(Losses)) H1 2025 net other gains were RMB 75.518 million, turning from a loss in H1 2024, mainly due to positive net exchange gains Other Gains / (Losses) Composition for H1 2025 | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Net Exchange Gains / (Losses) | 36,025 | (74,064) | Turned from Loss to Profit | | Net Gains / (Losses) on Disposal of Property, Plant and Equipment and Right-of-use Assets | 1,162 | (14,609) | Turned from Loss to Profit | | Fair Value Changes (Losses) / Gains on Financial Assets Measured at Fair Value Through Profit or Loss | (1,131) | 519 | Turned from Profit to Loss | | (Losses) / Gains on Disposal of a Joint Venture | (15,458) | 2,696 | Turned from Profit to Loss | | Losses on Derecognition of Financial Liabilities Measured at Amortized Cost | (257) | (2,907) | Loss Decreased | | Others | 55,177 | – | Newly Added Gain | | **Total** | **75,518** | **(88,365)** | **Turned from Loss to Profit** | [7. Finance Costs](index=11&type=section&id=7.%20Finance%20Costs) H1 2025 total finance costs decreased 12.0% to RMB 1.141 billion, driven by a 20.2% reduction in total interest expense Finance Costs Composition for H1 2025 | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Interest on Bank and Other Borrowings and Amounts Due to Related Parties | 2,269,997 | 2,910,475 | -22.0% | | Interest on Senior Notes | 180,645 | 230,928 | -21.8% | | Interest on Corporate Debt Instruments | 491,886 | 543,607 | -9.5% | | Interest on Leases | 10,705 | 13,138 | -18.6% | | **Total Borrowing Costs** | **2,953,233** | **3,698,148** | **-20.2%** | | Less: Interest Capitalized in Properties Under Development and Construction in Progress | (1,812,544) | (2,403,144) | -24.6% | | **Total** | **1,140,689** | **1,295,004** | **-12.0%** | [8. Taxation](index=12&type=section&id=8.%20Taxation) H1 2025 total tax expense decreased 24.0% to RMB 1.026 billion, with a notable increase in Land Appreciation Tax and a decrease in Enterprise Income Tax Tax Expense Composition for H1 2025 | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | China Enterprise Income Tax (Current) | 1,864,013 | 2,206,008 | -15.5% | | China Land Appreciation Tax (Current) | 1,501,647 | 424,753 | +253.5% | | China Enterprise Income Tax (Deferred) | (1,513,233) | (1,281,873) | +18.0% | | China Land Appreciation Tax (Deferred) | (826,850) | – | Newly Added | | **Total Tax Expense for the Period** | **1,025,577** | **1,348,888** | **-24.0%** | - Some Chinese subsidiaries enjoy a **15% preferential tax rate**, while the general tax rate is 25%[24](index=24&type=chunk) - Land Appreciation Tax provision of **RMB 675 million** was recognized in H1 2025, an increase from RMB 425 million in the same period last year[25](index=25&type=chunk) [9. Dividends](index=13&type=section&id=9.%20Dividends) The Board approved a final dividend of RMB 0.3 per share for FY2024, totaling RMB 762 million, but resolved not to declare an interim dividend for H1 2025 Dividend Declaration Status | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | 2024 Final Dividend (Per Share) | RMB 0.3 | N/A | | 2024 Final Dividend (Total) | RMB 761,880,000 | N/A | | 2023 Final Dividend (Per Share) | N/A | RMB 0.43 | | 2023 Final Dividend (Total) | N/A | RMB 1,088,759,000 | | H1 2025 Interim Dividend | None | None | [10. Earnings Per Share](index=13&type=section&id=10.%20Earnings%20Per%20Share) H1 2025 profit attributable to owners was RMB 210 million, leading to basic and diluted EPS of RMB 0.08, a significant decrease from H1 2024 Earnings Per Share Calculation Data | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (RMB thousand) | 209,907 | 2,044,902 | | Basic Earnings Per Share (RMB) | 0.08 | 0.81 | | Diluted Earnings Per Share (RMB) | 0.08 | 0.81 | | Weighted Average Number of Ordinary Shares for Basic EPS Calculation | 2,536,948,750 | 2,531,998,690 | | Weighted Average Number of Ordinary Shares for Diluted EPS Calculation | 2,539,249,268 | 2,531,998,690 | [11. Trade and Other Receivables, Deposits and Prepayments](index=14&type=section&id=11.%20Trade%20and%20Other%20Receivables,%20Deposits%20and%20Prepayments) As of June 30, 2025, trade and other receivables, deposits, and prepayments totaled RMB 9.991 billion, a decrease from end of 2024 Trade and Other Receivables, Deposits and Prepayments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Net Book Value of Trade Receivables | 2,353,344 | 2,637,572 | -10.8% | | Net Book Value of Other Receivables | 6,447,400 | 7,817,669 | -17.5% | | Prepayments and Deposits | 1,190,594 | 1,045,626 | +13.9% | | **Total** | **9,991,338** | **11,500,867** | **-13.2%** | - The average credit period for trade receivables is **90 days**[30](index=30&type=chunk) [12. Amounts Due from / to Related Parties](index=15&type=section&id=12.%20Amounts%20Due%20from%20%2F%20to%20Related%20Parties) As of June 30, 2025, amounts due from related parties increased to RMB 87.540 billion, while amounts due to related parties slightly decreased to RMB 27.053 billion Amounts Due from Related Parties | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Associates | 11,214,288 | 9,248,716 | +21.2% | | Joint Ventures | 13,064,775 | 13,299,540 | -1.8% | | Non-controlling Shareholders | 63,074,103 | 57,423,771 | +9.8% | | Shareholder Companies | 43,507 | 4,625 | +840.7% | | Directors | 143,434 | 143,434 | 0% | | **Total** | **87,540,107** | **80,120,086** | **+9.3%** | Amounts Due to Related Parties | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Associates | 14,194,142 | 13,481,844 | +5.3% | | Joint Ventures | 5,937,450 | 5,616,200 | +5.7% | | Non-controlling Shareholders | 6,247,296 | 7,390,508 | -15.5% | | Shareholder Companies | 398,617 | 473,829 | -15.9% | | Directors | 275,877 | 298,191 | -7.5% | | **Total** | **27,053,382** | **27,260,572** | **-0.8%** | - As of June 30, 2025, the loss allowance for amounts due from related parties was assessed and recognized at **RMB 2.202 billion**, an increase from RMB 2.000 billion at end of 2024[31](index=31&type=chunk) [13. Trade and Other Payables](index=17&type=section&id=13.%20Trade%20and%20Other%20Payables) As of June 30, 2025, trade and other payables totaled RMB 47.802 billion, a 15.2% decrease from end of 2024 Trade and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Trade Payables | 42,369,941 | 47,149,096 | -10.2% | | Other Payables and Accruals | 5,432,443 | 9,205,082 | -41.0% | | **Total** | **47,802,384** | **56,354,178** | **-15.2%** | - Among trade payables, the highest proportion is due within 180 days, amounting to **RMB 28.300 billion**[34](index=34&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes Greentown China's H1 2025 operating performance, market environment, strategic initiatives, and financial position, including an outlook for H2 [Operating Review](index=18&type=section&id=Operating%20Review) In H1 2025, Greentown China achieved steady progress across sales, investment, financial stability, and product services, driven by its core philosophy and continuous innovation [Market Environment](index=18&type=section&id=Market%20Environment) - The real estate market continued its low-level consolidation, generally in a bottoming-out phase of "weak recovery, strong differentiation," with industry scale continuously shrinking, new and second-hand home prices persistently falling, and inventory rising[35](index=35&type=chunk) [Company Strategy and Performance](index=18&type=section&id=Company%20Strategy%20and%20Performance) - Greentown China adheres to its philosophy of "intensive cultivation for survival, reform for progress, innovation for long-term success, and striving for victory," prioritizing sales destocking, increasing revenue and reducing expenditure, cost reduction and efficiency improvement, and quality delivery as baseline tasks[36](index=36&type=chunk) - The company has been ranked among the **"Top 10 Comprehensive Strength of China's Real Estate Top 100 Enterprises" for 21 consecutive years**, and received honors such as "2025 China Real Estate Top 100 Enterprises Stability Top 10" and "2025 China Real Estate Brand Value Top 4"[36](index=36&type=chunk) [Performance](index=19&type=section&id=Performance) H1 2025 Performance Overview | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Revenue | 53.368 billion yuan | 69.562 billion yuan | -23.3% | | Profit Attributable to Shareholders | 210 million yuan | 2.045 billion yuan | -89.7% | | Area Recognized | Decreased by 22.7% year-on-year | N/A | Decrease | | Asset Impairment Loss | 1.933 billion yuan | N/A | Provision Made | [Marketing](index=19&type=section&id=Marketing) H1 2025 Marketing Data | Indicator | Data | Ranking/Change | | :--- | :--- | :--- | | Total Contracted Sales Amount | RMB 122.2 billion yuan | Ranked Second Nationally | | Contracted Sales Amount of Self-invested Projects | RMB 80.3 billion yuan | Ranked Fifth Nationally | | Equity Sales Amount | RMB 53.9 billion yuan | Ranked Fifth Nationally | | Average Selling Price of Self-invested Projects | RMB 34,984/sqm | Maintained a relatively high level in the industry | | Collection Rate | 96% | Maintained at a high level | | Average Sell-through Rate of First-launch Projects | 80% | Increased by 2 percentage points year-on-year | | Digital Marketing Proportion | 22.6% | Increased by 10.5 percentage points year-on-year, hitting a historical high | | Digital Marketing Expense Ratio | 0.7% | Effectively saved marketing expenses | | Sales Proportion in Tier 1 & 2 Cities | Approx. 86% | Increased by 6 percentage points year-on-year | | Yangtze River Delta Sales Proportion | Approx. 69% | N/A | [Investment](index=20&type=section&id=Investment) H1 2025 New Investment Data | Indicator | Data | Ranking/Change | | :--- | :--- | :--- | | Number of New Projects | 35 | N/A | | Total New GFA | Approx. 3.55 million sqm | N/A | | Costs Borne by the Group | Approx. RMB 36.2 billion yuan | N/A | | Average Floor Price | Approx. RMB 13,591/sqm | N/A | | Estimated New Project Value | RMB 90.7 billion yuan | Ranked Third in Industry | | Average Equity Ratio of Newly Acquired Projects | Approx. 77% | Maintained at a relatively high level | | Proportion of New Project Value in Tier 1 & 2 Cities | 88% | N/A | | Sales Conversion Rate of Newly Acquired Projects in the Current Year | Approx. 55% | N/A | - As of June 30, 2025, the Group had **158 land reserve projects**, with a total GFA of approximately **27.24 million sqm** and attributable GFA of approximately **17.95 million sqm**. High-tier cities accounted for approximately **80% of project value**, and the Yangtze River Delta region accounted for approximately **64%**[44](index=44&type=chunk) [Product](index=22&type=section&id=Product) - Continuously iterated "Greentown Good Houses," updated product standards, and provided practical "Good Houses" operational IP technical manuals guided by operational value[45](index=45&type=chunk) - Vigorously promoted industrialized technologies such as cross-construction and industrial interior decoration to improve engineering efficiency and product quality[46](index=46&type=chunk) - In H1, self-invested and agency construction segments collectively delivered **84 projects**, with an area of approximately **7.80 million sqm** and approximately **39,000 households** delivered[46](index=46&type=chunk) [Operations](index=23&type=section&id=Operations) - Average land acquisition to operational breakeven cycle accelerated by **7% to 11.5 months**, and land acquisition to delivery accelerated by **4% to 25.3 months**[47](index=47&type=chunk) - Average unit construction cost decreased by approximately **RMB 150** compared to end of 2024[48](index=48&type=chunk) - Centralized procurement prices for key categories decreased by over **10%**, and the "one city, one value" cost database was iterated[48](index=48&type=chunk) [Organization](index=23&type=section&id=Organization) - Organizational efficiency improved, with two-tier management units accounting for **82%**, and per capita construction area for non-marketing personnel maintained above **12,000 sqm**[49](index=49&type=chunk) - Over **160 core talents** were introduced externally, **68 key position special forces** were selected and trained internally, and **70 core talents** from headquarters were deployed to frontline positions[49](index=49&type=chunk) [Financing](index=24&type=section&id=Financing) H1 2025 Financing Costs and Activities | Indicator | Data | Change/Description | | :--- | :--- | :--- | | Weighted Average Interest Cost of Total Borrowings (End of June 2025) | 3.4% | Decreased from 3.9% at end of same period last year | | Domestic Primary Market Issuance | 9 tranches totaling RMB 7.711 billion yuan | Including 5.5 billion yuan credit bonds and 2.211 billion yuan supply chain ABN | | Mid-to-long Term Credit Bond Financing Cost (August) | 3.27% | Historical low 3-year medium-term note issuance rate | | Offshore Debt Exchange | Approx. USD 802 million | N/A | | Offshore Senior Notes Issuance | USD 500 million (3-year, 8.45%) | Reopened offshore USD bond financing channel for Chinese real estate | | Proportion of Offshore Debt | Approx. 15.3% | Decreased by 1.1 percentage points from end of 2024 | [Agency Construction Business](index=24&type=section&id=Agency%20Construction%20Business) - Greentown Management consecutively won multiple "Top 1 Leading Enterprise in China's Real Estate Agency Construction Operations" honors from China Index Academy, E-House CRIC, and CRIC[52](index=52&type=chunk) H1 2025 Agency Construction Business Data | Indicator | Data | Change | | :--- | :--- | :--- | | Newly Expanded Agency Construction Area | Approx. 19.89 million sqm | Increased by 13.9% year-on-year | | Newly Expanded Agency Construction Fees | Approx. RMB 5 billion yuan | Increased by 19.1% year-on-year | | High-quality Delivery Area | Approx. 4.65 million sqm | Ranked First in Industry | | Number of High-quality Delivered Units | 25,600 units | Ranked First in Industry | | Bank Balances and Cash (June 30, 2025) | RMB 1.64 billion yuan | Increased by 8% from end of 2024 | [Greentown+ Businesses](index=25&type=section&id=Greentown%2B%20Businesses) - In the lifestyle technology business, C-end mid-to-high-end home decoration business contract value exceeded **RMB 640 million** in H1, with a year-on-year increase of over **100%**[54](index=54&type=chunk) - Decoration business received **AAA industry credit rating for ten consecutive years**; EPC business facilitated the smooth delivery of the first affordable housing "Good House"[54](index=54&type=chunk) - Commercial operations business successfully secured full-process entrusted management and operation services for an apartment commercial complex project in Binjiang District, Hangzhou, achieving a breakthrough from zero to one in the asset-light sector[54](index=54&type=chunk) - Town operations successfully signed **2 industrial service projects**; Greentown Health & Elderly Care business achieved a new high in expansion, securing **3 asset-light projects**[54](index=54&type=chunk) [Outlook](index=25&type=section&id=Outlook) H2 2025 outlook anticipates continued real estate market consolidation, with Greentown China focusing on strategic commitments and key measures for healthy development [Market Outlook](index=25&type=section&id=Outlook-Market%20Outlook) - Policy orientation shifted from "deleveraging" to "risk prevention," market demand from "universal growth" to "differentiation," and industry competition from "scale expansion" to "quality competition"[55](index=55&type=chunk) - The industry is expected to remain in a consolidation phase in **H2 2025**, with a full market recovery still requiring time. Core cities show stronger resilience, while third and fourth-tier cities face long-term destocking pressure[55](index=55&type=chunk) [Strategic Focus and Key Initiatives](index=25&type=section&id=Outlook-Strategic%20Focus%20and%20Key%20Initiatives) - Firmly adhere to the "Three Unwavering Commitments": strategic focus (deep cultivation of "quality land, quality products, quality services"), quality belief (product strength as core competitiveness), and stable operations (moderate scale, risk prevention)[56](index=56&type=chunk) - Eight key measures will be implemented: accelerating inventory destocking, maintaining precise investment, strengthening risk control, focusing on operational upgrades, achieving product advancement, concentrating on cost reduction and potential tapping, deepening agency construction development, and promoting business focus[57](index=57&type=chunk)[58](index=58&type=chunk) [H2 Operating Expectations](index=27&type=section&id=Outlook-H2%20Operating%20Expectations) H2 2025 Operating Expectations | Indicator | Data | Description | | :--- | :--- | :--- | | Salable Value of Self-invested Projects in H2 | Approx. RMB 176.3 billion yuan | Excluding salable value of newly acquired projects after July in the current year | | Salable Area of Self-invested Projects in H2 | Approx. 5.76 million sqm | N/A | | Proportion of Project Value in Tier 1 & 2 Cities | 83% | Increased by 4 percentage points compared to the same period last year | | Total GFA of Projects/Phases Completed in Full Year 2025 | Approx. 7.89 million sqm | N/A | | Accumulated Sold but Unrecognized Revenue (June 30, 2025) | Approx. RMB 198.7 billion yuan | Equity approx. RMB 143.5 billion yuan, equity ratio approx. 72% | [Financial Analysis](index=27&type=section&id=Financial%20Analysis) This section analyzes Greentown China's H1 2025 financial performance, highlighting decreased revenue and profit, improved gross margin, optimized financial structure, and ample liquidity [Revenue](index=27&type=section&id=Financial%20Analysis-Revenue) H1 2025 Revenue Composition and Changes | Revenue Source | H1 2025 (RMB) | H1 2024 (RMB) | Proportion (2025) | Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 53.368 billion yuan | 69.562 billion yuan | 100% | -23.3% | | Property Sales Revenue | 49.651 billion yuan | 63.757 billion yuan | 93.0% | -22.1% | | Design and Decoration Revenue | 960 million yuan | 1.525 billion yuan | 1.8% | -37.0% | | Project Management Revenue | 1.361 billion yuan | 1.640 billion yuan | 2.6% | -17.0% | | Revenue from Operations of Investment Properties, etc. | 1.396 billion yuan | 1.388 billion yuan | 2.6% | +0.6% | - Property sales recognized area was **2,046,289 sqm**, a year-on-year decrease of **22.7%**; average property selling price was **RMB 24,264/sqm**, a slight increase compared to the same period last year[60](index=60&type=chunk) - Property sales revenue from Hangzhou accounted for **45.1%**, Zhejiang (excluding Hangzhou) for **15.8%**, and Shanghai for **10.3%**[61](index=61&type=chunk) [Gross Profit and Gross Margin](index=28&type=section&id=Gross%20Profit%20and%20Gross%20Margin) H1 2025 Gross Profit and Gross Margin | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 7.159 billion yuan | 9.104 billion yuan | -21.4% | | Gross Margin | 13.4% | 13.1% | +0.3 percentage points | | Property Sales Gross Margin | 12.7% | 11.7% | +1.0 percentage points | [Other Income](index=28&type=section&id=Financial%20Analysis-Other%20Income) H1 2025 Other Income Changes | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Other Income | 930 million yuan | 1.721 billion yuan | -46.0% | [Administrative Expenses](index=29&type=section&id=Administrative%20Expenses) H1 2025 Administrative Expenses Changes | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 1.523 billion yuan | 1.690 billion yuan | -9.9% | | Human Resources Costs | 804 million yuan | 809 million yuan | -0.6% | | Daily Operating Expenses | 487 million yuan | 661 million yuan | -26.3% | [Selling Expenses](index=29&type=section&id=Selling%20Expenses) H1 2025 Selling Expenses Changes | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 1.057 billion yuan | 1.126 billion yuan | -6.1% | | Human Resources Costs | 412 million yuan | 478 million yuan | -13.8% | | Marketing Activities Expenses | 471 million yuan | 470 million yuan | Remained Flat | [Finance Costs](index=29&type=section&id=Financial%20Analysis-Finance%20Costs) H1 2025 Finance Costs Changes | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Interest Expense Recognized in Profit or Loss | 1.141 billion yuan | 1.295 billion yuan | -12.0% | | Total Interest Expense | 2.953 billion yuan | 3.698 billion yuan | -20.2% | | Weighted Average Interest Cost | 3.6% | 4.0% | Decreased by 40 basis points | [Share of Results of Joint Ventures and Associates](index=30&type=section&id=Share%20of%20Results%20of%20Joint%20Ventures%20and%20Associates) H1 2025 Share of Results of Joint Ventures and Associates | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Share of Results of Joint Ventures | Loss of 419 million yuan | Loss of 659 million yuan | Loss narrowed | | Share of Results of Associates | Profit of 149 million yuan | Profit of 449 million yuan | Profit decreased | | **Total** | **Loss of 270 million yuan** | **Loss of 210 million yuan** | **Loss increased by 60 million yuan** | [Taxation Expenses](index=30&type=section&id=Financial%20Analysis-Taxation%20Expenses) H1 2025 Taxation Expenses Composition | Item | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Land Appreciation Tax | 675 million yuan | 425 million yuan | +58.8% | | Enterprise Income Tax | 351 million yuan | 924 million yuan | -62.0% | | Land Appreciation Tax as % of Revenue | 1.3% | 0.6% | +0.7 percentage points | [Impairment Losses Recognized and Reversals for Certain Assets](index=30&type=section&id=Impairment%20Losses%20Recognized%20and%20Reversals%20for%20Certain%20Assets) H1 2025 Asset Impairment Losses | Item | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Impairment Losses on Non-financial Assets | 1.717 billion yuan | 1.422 billion yuan | +20.7% | | Impairment for Expected Credit Losses | 216 million yuan | 324 million yuan | -33.3% | [Contract Liabilities](index=31&type=section&id=Contract%20Liabilities) Contract Liabilities Balance | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Group's Contract Liabilities Balance | 155.084 billion yuan | 146.959 billion yuan | +5.5% | | Contract Liabilities Balance of Joint Ventures and Associates | 22.164 billion yuan | 26.292 billion yuan | -15.7% | [Sources of Funding and Liquidity](index=31&type=section&id=Sources%20of%20Funding%20and%20Liquidity) H1 2025 Financing and Liquidity Indicators as of June 30, 2025 | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Bank Deposits and Cash | 66.795 billion yuan | 72.988 billion yuan | -8.5% | | Total Borrowings | 143.027 billion yuan | 137.187 billion yuan | +4.3% | | Net Debt | 76.232 billion yuan | 64.199 billion yuan | +18.7% | | Net Gearing Ratio | 63.9% | 56.6% | +7.3 percentage points | | Proportion of Borrowings Due Within One Year to Total Borrowings | 16.3% | 23.1% | -6.8 percentage points (Historical Low) | | Bank Deposits and Cash / Borrowings Due Within One Year | 2.9 times | 2.3 times | +0.6 times (Historical High) | [Exchange Rate Fluctuation Risk](index=31&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) - The Group's primary operations are in China, with most income and expenses settled in RMB, but it still faces foreign exchange risks related to foreign currencies[74](index=74&type=chunk) - Purchased **USD 840 million** in cross-currency interest rate swaps and forward foreign exchange contracts to reduce exchange rate risk, lowering average financing costs by **2.3 percentage points**[74](index=74&type=chunk) - Net exchange gains of **RMB 36 million** were generated in the current period, compared to a loss of RMB 74 million in the same period last year[74](index=74&type=chunk) [Contingent Liabilities](index=31&type=section&id=Contingent%20Liabilities) Mortgage Loan Guarantees | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Mortgage Loan Guarantees | 18.145 billion yuan | 24.295 billion yuan | -25.3% | [Pledged Assets](index=31&type=section&id=Pledged%20Assets) Total Pledged Assets | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Pledged Assets | 135.951 billion yuan | 135.507 billion yuan | +0.3% | [Capital Commitments](index=32&type=section&id=Capital%20Commitments) Capital Commitments | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Capital Commitments Contracted but Not Provided For | 755 million yuan | 914 million yuan | -17.4% | [Capital Expenditure Plan](index=32&type=section&id=Capital%20Expenditure%20Plan) - The Group currently has no significant capital expenditure plans and adopts a cautious approach to fund utilization[78](index=78&type=chunk) [Other Information](index=32&type=section&id=Other%20Information) This section provides supplementary non-financial information, including post-balance sheet events, listed securities transactions, human resources, and corporate governance [Post Balance Sheet Events](index=32&type=section&id=Post%20Balance%20Sheet%20Events) No material events affecting the Group have occurred after June 30, 2025, other than those already disclosed - No material events occurred after the end of the reporting period[79](index=79&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=32&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) The Company repurchased USD 451.863 million of notes in February 2025 and issued USD 500 million of 8.45% Senior Notes due 2028 - On **February 13, 2025**, the company announced an offer to repurchase its April 2025 Notes and July 2025 Notes[81](index=81&type=chunk) - On **February 26, 2025**, a total of **USD 451,863,000** of the April 2025 Notes and July 2025 Notes were accepted and repurchased, and subsequently cancelled[81](index=81&type=chunk) - On **February 24, 2025**, the company issued **USD 500 million** of **8.45% Senior Notes due 2028**[82](index=82&type=chunk) [Human Resources](index=33&type=section&id=Human%20Resources) As of June 30, 2025, the Group employed 8,792 employees, with remuneration based on performance, experience, and industry practice, incentivized by various awards Number of Employees | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Employees | 8,792 | 8,765 | +27 | - Remuneration is determined based on performance, experience, and industry practice, and employees are incentivized through bonuses, cash awards, and share options or share awards[83](index=83&type=chunk) [Corporate Governance Code](index=33&type=section&id=Corporate%20Governance%20Code) The Company has complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules - The company has complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules throughout the reporting period[84](index=84&type=chunk) [Model Code](index=33&type=section&id=Model%20Code) The Company adopted the Model Code for directors' securities transactions, and directors confirmed compliance throughout the reporting period - The company has adopted the Model Code as set out in Appendix C3 of the Listing Rules, and directors have confirmed compliance throughout the reporting period[85](index=85&type=chunk) [Review of Interim Results](index=33&type=section&id=Review%20of%20Interim%20Results) The H1 2025 interim results announcement was reviewed by the Audit Committee and approved by the Board, with auditor Ernst & Young conducting a review - The interim results announcement has been reviewed by the Audit Committee and approved by the Board[86](index=86&type=chunk) - Auditor Ernst & Young has reviewed the interim condensed consolidated financial information in accordance with Hong Kong Standard on Review Engagements 2410[86](index=86&type=chunk) [Interim Dividend](index=33&type=section&id=Interim%20Dividend) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare an interim dividend for H1 2025[87](index=87&type=chunk) [Publication of Interim Report](index=33&type=section&id=Publication%20of%20Interim%20Report) The Company's full 2025 Interim Report will be dispatched to shareholders and published on the HKEX and company website - The full 2025 Interim Report will be dispatched to shareholders and published on the HKEX and the company's website[88](index=88&type=chunk) [Forward-Looking Statements](index=34&type=section&id=Forward-Looking%20Statements) This announcement contains forward-looking statements, and actual results may differ materially due to inherent risks and uncertainties - This announcement contains forward-looking statements, involving risks and uncertainties regarding future events[89](index=89&type=chunk) - Actual operating results, financial condition, liquidity, and industry developments may differ materially from forward-looking statements[89](index=89&type=chunk) [Acknowledgements](index=34&type=section&id=Acknowledgements) The Board extends sincere gratitude to all shareholders, customers, suppliers, banks, professional advisors, and employees - The Board extends its sincere gratitude to all stakeholders[90](index=90&type=chunk) [Board of Directors](index=34&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises a Chairman, four Executive Directors, two Non-executive Directors, and four Independent Non-executive Directors - The Board of Directors includes a Chairman and Non-executive Director, four Executive Directors, two Non-executive Directors, and four Independent Non-executive Directors[91](index=91&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 WING LEE PROPERTY INVESTMENTS LIMITED 中期業績 永利地產發展有限公司（「本公司」）之董事局（「董事局」）欣然呈列本公司及其附屬 公司（統稱「本集團」）截至二零二五年六月三十日止六個月之未經審核簡明綜合業 績及截至二零二四年六月三十日止同期之比較數字。 簡明綜合損益及其他全面收益表 截至二零二五年六月三十日止六個月 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | | 千港元 | 千港元 | | | 附註 | （未經審核） | （未經審核） | | 收益 | 3 | 11,453 | 13,383 | | 直接經營開支 | | (970) | (516) | | | | 10,483 | 12,867 | | 其他收入 | | 804 | 1,310 | | 投資物業公平值 ...

四川德康農牧食品集團股份有限公司 DEKON FOOD AND AGRICULTURE GROUP （於中華人民共和國註冊成立的股份有限公司） (A joint stock company incorporated in the People's Republic of China with limited liability) 股份代號 STOCK CODE : 2419 中期報告 INTERIM REPORT 2025 四 川 德 康 農 有 限 公 品 集 團 股 牧 份 食 司 D E K O N F O OD A ND A G RIC U LTU RE G R O U | 公司資料 | 2 | | --- | --- | | 財務摘要 | 3 | | 董事長致辭 | 4 | | 釋義 | 7 | | 技術詞彙表 | 9 | | 管理層討論與分析 | 10 | | 企業管治及其他資料 | 23 | | 獨立審閱報告 | 31 | | 綜合損益及其他全面收益表 | 33 | | 綜合財務狀況表 | 35 | | 綜合權益變動表 | 37 | | 簡明綜合現金流量表 | 39 | | 未經審核中期財務報告 ...

Report Overview [Company Information and GEM Characteristics](index=1&type=section&id=Company%20Information%20and%20GEM%20Characteristics) The report presents the Company's H1 2025 unaudited interim results, detailing its GEM listing for SMEs with higher investment risk and its core business in pharmaceutical and medical device operations in China - The Company is a joint stock limited company incorporated in the People's Republic of China, with shares listed on the GEM of The Stock Exchange of Hong Kong Limited[1](index=1&type=chunk)[10](index=10&type=chunk) - The GEM market is positioned as a listing platform for small and medium-sized enterprises, carrying **higher investment risks** and potential for greater market volatility[2](index=2&type=chunk) - The Group's principal activities include the development, production, and sale of pharmaceuticals and medical devices, research and development of modern biotechnology, and the purchase and sale of pharmaceuticals, health products, and medical devices, primarily located in China[10](index=10&type=chunk) Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, the Group's revenue decreased by 8.92% to RMB 495,920'000, gross profit fell by 18.78%, and profit and total comprehensive income dropped by 46.57% to RMB 22,041'000, with basic EPS at RMB 0.0114 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 495,920 | 544,504 | -8.92% | | Cost of sales | (337,566) | (349,538) | -3.42% | | Gross profit | 158,354 | 194,966 | -18.78% | | Other income and net other income | 9,191 | 6,703 | 37.12% | | Selling and distribution expenses | (74,120) | (82,983) | -10.68% | | Administrative expenses | (45,050) | (42,379) | 6.30% | | Operating profit | 24,992 | 50,761 | -50.77% | | Profit before tax | 22,746 | 48,292 | -52.90% | | Profit and total comprehensive income for the period | 22,041 | 41,254 | -46.57% | | Profit attributable to owners of the Company | 19,065 | 37,907 | -49.71% | | Basic and diluted earnings per share | RMB 0.0114 | RMB 0.0226 | -49.56% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities decreased by 23.34% to RMB 810,728'000, with net assets falling 24.12% due to reduced time deposits and net current assets Condensed Consolidated Statement of Financial Position Key Data (As at June 30) | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 486,440 | 589,059 | -17.39% | | Current assets | 625,199 | 809,027 | -22.69% | | Current liabilities | 300,911 | 340,423 | -11.61% | | Net current assets | 324,288 | 468,604 | -30.79% | | Total assets less current liabilities | 810,728 | 1,057,663 | -23.34% | | Non-current liabilities | 31,575 | 31,564 | 0.03% | | Net assets | 779,153 | 1,026,099 | -24.12% | | Total equity | 779,153 | 1,026,099 | -24.12% | - Time deposits significantly decreased from **RMB 115,000'000** as of December 31, 2024, to **RMB 20,000'000** as of June 30, 2025[5](index=5&type=chunk) - Bank balances and cash decreased from **RMB 283,424'000** as of December 31, 2024, to **RMB 139,327'000** as of June 30, 2025[5](index=5&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For H1 2025, total equity attributable to owners of the Company decreased by 24.21% to RMB 707,260'000, primarily due to RMB 244,988'000 in dividends paid to equity holders Condensed Consolidated Statement of Changes in Equity Key Data (For the six months ended June 30) | Indicator | June 30, 2025 (RMB'000) | January 1, 2025 (RMB'000) | June 30, 2024 (RMB'000) | January 1, 2024 (RMB'000) | | :--- | :--- | :--- | :--- | :--- | | Subtotal of equity attributable to owners of the Company | 707,260 | 933,183 | 946,076 | 908,169 | | Non-controlling interests | 71,893 | 92,916 | 111,360 | 108,013 | | Total equity | 779,153 | 1,026,099 | 1,057,436 | 1,016,182 | | Profit and total comprehensive income for the period | 22,041 | N/A | 41,254 | N/A | | Dividends paid to equity holders of the Company | (244,988) | N/A | – | N/A | | Dividends paid to non-controlling interests | (23,999) | N/A | – | N/A | - In H1 2025, dividends of **RMB 244,988'000** were paid to equity holders of the Company, and **RMB 23,999'000** to non-controlling interests[7](index=7&type=chunk)[35](index=35&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, net cash from operating activities significantly increased, and investing activities turned to net inflow due to reduced time deposits; however, large dividend payments led to a substantial net outflow from financing activities, resulting in a net decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 41,171 | 21,217 | 94.05% | | Net cash generated from/(used in) investing activities | 89,648 | (79,019) | 213.45% | | Net cash used in financing activities | (274,916) | (2,457) | 11129.30% | | Net decrease in cash and cash equivalents | (144,097) | (60,259) | 139.13% | | Cash and cash equivalents at end of period | 139,327 | 311,947 | -55.49% | - Cash flow from investing activities shifted from a net outflow of **RMB 79,019'000** in the prior year to a net inflow of **RMB 89,648'000** in H1 2025, primarily due to a **RMB 95,000'000** reduction in time deposits[8](index=8&type=chunk) - Net cash outflow from financing activities significantly increased, mainly due to dividend payments of **RMB 244,988'000** to equity holders of the Company and **RMB 23,999'000** to non-controlling interests[9](index=9&type=chunk) Notes to the Financial Statements [Company Information](index=8&type=section&id=Company%20Information) Shenzhen Neptunus Interlong Bio-technique Co., Ltd., incorporated in China and listed on HKEX GEM, primarily develops, produces, sells, and procures pharmaceuticals and medical devices, with the Group controlled by Neptunus Bioengineering and ultimately by Shenzhen Neptunus Holding Group Co., Ltd - The Company's principal activities include the development, production, and sale of pharmaceuticals and medical devices, research and development of modern biotechnology, and the purchase and sale of pharmaceuticals, health products, and medical devices[10](index=10&type=chunk) - The Group is controlled by Shenzhen Neptunus Bioengineering Co., Ltd., listed on the Shenzhen Stock Exchange, with Shenzhen Neptunus Holding Group Co., Ltd. as the ultimate parent company[10](index=10&type=chunk) [Basis of Preparation and Accounting Policies](index=8&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated interim financial statements are prepared in accordance with GEM Listing Rules and HKAS 34, using the historical cost basis, presented in RMB, and authorized for issue - The condensed consolidated interim financial statements are prepared in accordance with the GEM Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[11](index=11&type=chunk) - The financial statements are prepared on a historical cost basis and presented in Renminbi, with all amounts rounded to the nearest thousand[12](index=12&type=chunk) [Adoption of Revised Hong Kong Financial Reporting Standards](index=9&type=section&id=Adoption%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group has adopted revised HKFRS effective January 1, 2025, including HKAS 21 (Amendment) "Lack of Exchangeability", with no material impact on current or prior period results or financial position, and expects no significant impact from new standards not yet effective - The Group has adopted HKAS 21 (Amendment) "Lack of Exchangeability" for the first time, with no material impact on the results and financial position for the current and prior periods[14](index=14&type=chunk) - The Board is assessing the potential impact of new Hong Kong Financial Reporting Standards that have been issued but are not yet effective, and does not expect them to have a significant impact on the condensed consolidated financial statements[16](index=16&type=chunk) [Revenue, Other Income and Net Other Income](index=10&type=section&id=Revenue,%20Other%20Income%20and%20Net%20Other%20Income) For H1 2025, the Group's total revenue decreased by 8.92% to RMB 495,920'000, mainly from production and sales of pharmaceuticals/medical devices and sales/distribution of pharmaceuticals/health products, while other income and net other income increased by 37.12% due to reversal of trade and other payables Revenue Composition (For the six months ended June 30) | Revenue Source | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Production and sales of pharmaceuticals and medical devices | 251,003 | 295,150 | -14.96% | | Sales and distribution of pharmaceuticals, health products and medical devices | 244,917 | 249,354 | -1.78% | | **Total Revenue** | **495,920** | **544,504** | **-8.92%** | Other Income and Net Other Income (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 1,553 | 1,708 | -9.08% | | Reversal of inventory write-down | 201 | 2,001 | -89.91% | | Government grants | 1,679 | 2,612 | -35.72% | | Reversal of trade and other payables | 5,642 | – | N/A | | Others | 116 | 382 | -69.63% | | **Total** | **9,191** | **6,703** | **37.12%** | - The decrease in revenue is primarily due to seasonal fluctuations in certain pharmaceuticals and a decline in medical device revenue[69](index=69&type=chunk) [Segment Reporting](index=11&type=section&id=Segment%20Reporting) The Group manages its operations through two business lines: "Production and Sales of Pharmaceuticals and Medical Devices" and "Sales and Distribution of Pharmaceuticals, Health Products, and Medical Devices," with all operations in China; in H1 2025, external customer revenue for both segments declined, and the "Production and Sales" segment shifted from profit to loss - The Group manages its operations through two business lines: "Production and Sales of Pharmaceuticals and Medical Devices" and "Sales and Distribution of Pharmaceuticals, Health Products, and Medical Devices"[19](index=19&type=chunk)[22](index=22&type=chunk) - All of the Group's operations are conducted in China, thus no geographical segment analysis is provided[20](index=20&type=chunk)[29](index=29&type=chunk) [Segment Results, Assets and Liabilities](index=11&type=section&id=Segment%20Results,%20Assets%20and%20Liabilities) For H1 2025, external customer revenue for "Production and Sales of Pharmaceuticals and Medical Devices" decreased by 14.96% year-on-year, resulting in a loss of RMB 3,562'000, while "Sales and Distribution of Pharmaceuticals, Health Products, and Medical Devices" saw revenue decline by 1.78% and profit by 14.49% to RMB 27,644'000, with total assets for both segments decreasing Segment Revenue and Profit (For the six months ended June 30) | Segment | 2025 External Customer Revenue (RMB'000) | 2024 External Customer Revenue (RMB'000) | YoY Change (%) | 2025 Segment (Loss)/Profit (RMB'000) | 2024 Segment Profit (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Production and sales of pharmaceuticals and medical devices | 251,003 | 295,150 | -14.96% | (3,562) | 17,721 | -120.10% | | Sales and distribution of pharmaceuticals, health products and medical devices | 244,917 | 249,354 | -1.78% | 27,644 | 32,281 | -14.49% | | **Total** | **495,920** | **544,504** | **-8.92%** | **24,082** | **50,002** | **-51.84%** | Segment Assets and Additions to Non-current Assets (As at June 30) | Segment | 2025 Segment Assets (RMB'000) | 2024 Segment Assets (RMB'000) | Change (%) | 2025 Additions to Non-current Segment Assets (RMB'000) | 2024 Additions to Non-current Segment Assets (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Production and sales of pharmaceuticals and medical devices | 737,235 | 895,155 | -17.64% | 7,884 | 20,558 | -61.65% | | Sales and distribution of pharmaceuticals, health products and medical devices | 694,254 | 834,669 | -16.82% | 186 | 8,544 | -97.82% | | **Total** | **1,431,489** | **1,729,824** | **-17.24%** | **8,070** | **29,102** | **-72.27%** | [Reconciliation of Reportable Segment Revenue, Profit Before Tax, Assets and Liabilities](index=13&type=section&id=Reconciliation%20of%20Reportable%20Segment%20Revenue,%20Profit%20Before%20Tax,%20Assets%20and%20Liabilities) This section provides a reconciliation of reportable segment revenue, profit before tax, assets, and liabilities to the consolidated statements, with consolidated revenue at RMB 495,920'000, profit before tax at RMB 22,746'000, total assets at RMB 1,111,639'000, and total liabilities at RMB 332,486'000 Segment to Consolidated Statement Reconciliation (For the six months ended June 30/As at June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Consolidated Revenue | 495,920 | 544,504 | | Consolidated Profit Before Tax | 22,746 | 48,292 | | Total Consolidated Assets (2025/06/30 vs 2024/12/31) | 1,111,639 | 1,398,086 | | Total Consolidated Liabilities (2025/06/30 vs 2024/12/31) | 332,486 | 371,987 | [Revenue from Major Products and Services](index=15&type=section&id=Revenue%20from%20Major%20Products%20and%20Services) For H1 2025, revenue from sales of pharmaceuticals and health products was RMB 400,411'000, a 5.55% decrease year-on-year, while medical device sales revenue was RMB 95,509'000, a 20.80% decrease year-on-year Revenue from Major Products and Services (For the six months ended June 30) | Product/Service | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sales of pharmaceuticals and health products | 400,411 | 423,917 | -5.55% | | Sales of medical devices | 95,509 | 120,587 | -20.80% | | **Total** | **495,920** | **544,504** | **-8.92%** | [Geographical Information](index=15&type=section&id=Geographical%20Information) The Group's revenue and non-current assets are entirely derived from and located in China, thus no geographical segment analysis is provided - The Group's revenue and non-current assets are entirely derived from and located in China, thus no geographical segment analysis is provided[29](index=29&type=chunk) [Disaggregation of Revenue from Contracts with Customers](index=15&type=section&id=Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers) For H1 2025, revenue from pharmacies accounted for the largest share at RMB 460,644'000, but decreased by 7.84% year-on-year, while revenue from hospitals decreased by 12.89% to RMB 34,325'000 year-on-year Revenue by Customer Category (For the six months ended June 30) | Customer Category | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hospitals | 34,325 | 39,292 | -12.89% | | Pharmacies | 460,644 | 499,812 | -7.84% | | Others | 951 | 5,400 | -82.39% | | **Total** | **495,920** | **544,504** | **-8.92%** | - Pharmacies are the Group's largest source of revenue, but their revenue decreased by **7.84%** year-on-year[30](index=30&type=chunk) [Profit Before Tax](index=16&type=section&id=Profit%20Before%20Tax) For H1 2025, profit before tax was RMB 22,746'000, a significant decrease of 52.90% year-on-year, with finance costs decreasing, staff costs increasing, and depreciation, amortization, and R&D expenses decreasing Profit Before Tax Components (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 2,246 | 2,469 | -9.03% | | Staff costs | 83,948 | 80,645 | 4.10% | | Depreciation of right-of-use assets | 2,314 | 2,593 | -10.79% | | Amortisation of intangible assets | 1,862 | 2,010 | -7.36% | | Depreciation of property, plant and equipment | 10,881 | 11,974 | -9.13% | | Cost of inventories | 333,206 | 338,296 | -1.50% | | Research and development expenses | 16,848 | 18,057 | -6.70% | | Impairment/(reversal) net - trade receivables | (1,304) | 3,197 | -140.79% | | Impairment/(reversal) net - other receivables | 2,446 | 176 | 1289.77% | | Write-down of inventories | 2,485 | 1,597 | 55.60% | | Reversal of inventory write-down | (201) | (2,001) | -89.91% | - The decline in profit before tax is primarily influenced by decreased revenue and gross margin, increased administrative expenses, and a reduction in trade receivables impairment offset by a significant increase in other receivables impairment[70](index=70&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) For H1 2025, income tax expense was RMB 705'000, a significant decrease of 89.95% year-on-year, mainly due to reduced current China corporate income tax and prior year over-provision adjustments, with three subsidiaries enjoying a 15% preferential tax rate and 200% super deduction for R&D expenses as "High-Tech Enterprises" Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current China corporate income tax | 2,367 | 8,378 | -71.74% | | Over-provision in respect of prior year | (995) | – | N/A | | Deferred tax | (667) | (1,340) | -50.15% | | **Total** | **705** | **7,038** | **-89.95%** | - Three subsidiaries are eligible as "High-Tech Enterprises" and enjoy a **15%** preferential tax rate[32](index=32&type=chunk) - The three subsidiaries are eligible for a **200%** super deduction for research and development expenses[33](index=33&type=chunk) [Dividends](index=17&type=section&id=Dividends) For H1 2025, the Company approved and paid total dividends of RMB 244,988'000, including a 2024 final dividend of RMB 0.005 per ordinary share and a special dividend of RMB 0.141 per ordinary share, with no interim dividend recommended for this reporting period Dividends Paid (For the six months ended June 30) | Dividend Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | 2024 Final dividend (RMB 0.005 per share) | 8,390 | – | | 2024 Special dividend (RMB 0.141 per share) | 236,598 | – | | **Total** | **244,988** | **–** | - The Board does not recommend the payment of any interim dividend for this reporting period[35](index=35&type=chunk)[78](index=78&type=chunk) [Earnings Per Share](index=18&type=section&id=Earnings%20Per%20Share) For H1 2025, basic earnings per share were RMB 0.0114, a 49.56% decrease from RMB 0.0226 in the prior year, with diluted earnings per share being equal to basic earnings per share due to no potential dilutive effects Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic earnings per share | RMB 0.0114 | RMB 0.0226 | -49.56% | | Profit attributable to owners of the Company | RMB 19,065'000 | RMB 37,907'000 | -49.71% | | Weighted average number of ordinary shares in issue | 1,678,000,000 shares | 1,678,000,000 shares | 0.00% | - Diluted earnings per share are equal to basic earnings per share, as there are no outstanding ordinary shares with potential dilutive effects[37](index=37&type=chunk) [Property, Plant and Equipment and Right-of-Use Assets](index=18&type=section&id=Property,%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) For H1 2025, the Group purchased property, plant and equipment costing approximately RMB 5,371'000, a 54.79% decrease year-on-year, with disposals/write-offs of RMB 1,079'000, and recognized right-of-use assets of RMB 141'000, a significant 97.06% decrease Property, Plant and Equipment and Right-of-Use Assets Movement (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of purchases of property, plant and equipment | 5,371 | 11,885 | -54.79% | | Carrying amount of property, plant and equipment disposed of/written off | 1,079 | 2,732 | -60.58% | | Right-of-use assets recognised | 141 | 4,804 | -97.06% | [Trade and Other Receivables](index=18&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables were RMB 303,689'000, a 4.66% decrease from December 31, 2024, with trade receivables (net of allowance) increasing by 8.08% and bills receivable decreasing by 52.56%, alongside significant changes in amounts due from fellow subsidiaries and related companies Trade and Other Receivables (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables (net of allowance) | 172,429 | 159,529 | 8.08% | | Bills receivable | 33,849 | 71,328 | -52.56% | | Amounts due from fellow subsidiaries | 11,575 | 24,972 | -53.65% | | Amounts due from related companies | 30,028 | 11,947 | 151.35% | | Other receivables (net of allowance) | 97,411 | 87,676 | 11.11% | | **Total** | **303,689** | **318,533** | **-4.66%** | [Ageing Analysis](index=19&type=section&id=Ageing%20Analysis) As of June 30, 2025, trade receivables due within 3 months constituted the largest portion at RMB 147,099'000, a 46.75% increase from December 31, 2024, while bills receivable due within 3 months were RMB 17,156'000 and those due in 4 to 6 months were RMB 16,693'000 Ageing Analysis of Trade Receivables (As at June 30) | Ageing | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Within 3 months | 147,099 | 100,243 | 46.75% | | 4 to 6 months | 10,507 | 31,018 | -66.13% | | 7 to 12 months | 1,798 | 12,436 | -85.54% | | Over 1 year | 13,025 | 15,832 | -17.60% | | **Total** | **172,429** | **159,529** | **8.08%** | Ageing Analysis of Bills Receivable (As at June 30) | Ageing | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Within 3 months | 17,156 | 25,753 | -33.40% | | 4 to 6 months | 16,693 | 45,575 | -63.37% | | **Total** | **33,849** | **71,328** | **-52.56%** | [Impairment of Trade Receivables](index=20&type=section&id=Impairment%20of%20Trade%20Receivables) As of June 30, 2025, the allowance for expected credit losses on trade receivables was RMB 21,269'000, a 14.37% decrease from December 31, 2024, with RMB 122'000 recognized, RMB 1,426'000 reversed, and RMB 2,265'000 written off during the period Movement in Impairment Allowance for Trade Receivables (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Balance at January 1 | 24,838 | 22,771 | 9.08% | | Expected credit losses recognised during the period | 122 | 4,246 | -97.13% | | Expected credit losses reversed during the period | (1,426) | (2) | 71200.00% | | Amounts written off during the period | (2,265) | (2,177) | 4.04% | | **Balance at end of period** | **21,269** | **24,838** | **-14.37%** | [Impairment of Other Receivables](index=20&type=section&id=Impairment%20of%20Other%20Receivables) As of June 30, 2025, the allowance for expected credit losses on other receivables was RMB 3,945'000, an 82.81% increase from December 31, 2024, with RMB 2,446'000 recognized, no reversals, and RMB 659'000 written off during the period Movement in Impairment Allowance for Other Receivables (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Balance at January 1 | 2,158 | 2,090 | 3.25% | | Expected credit losses recognised during the period | 2,446 | 822 | 197.57% | | Expected credit losses reversed during the period | – | (4) | N/A | | Amounts written off during the period | (659) | (750) | -12.13% | | **Balance at end of period** | **3,945** | **2,158** | **82.81%** | [Trade and Other Payables](index=21&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were RMB 188,856'000, a 14.90% decrease from December 31, 2024, with trade payables decreasing by 15.03% and other payables and accrued expenses decreasing by 11.79% Trade and Other Payables (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 121,564 | 143,306 | -15.03% | | Other payables and accrued expenses | 62,870 | 71,285 | -11.79% | | Amounts due to fellow subsidiaries | 3,276 | 6,545 | -49.95% | | Amounts due to intermediate parent company | 285 | 367 | -22.34% | | Amounts due to related companies | 61 | 74 | -17.57% | | Amounts due to ultimate holding company | 800 | 800 | 0.00% | | **Total** | **188,856** | **222,377** | **-14.90%** | [Interest-Bearing Borrowings](index=21&type=section&id=Interest-Bearing%20Borrowings) As of June 30, 2025, the Group's total interest-bearing borrowings were RMB 99,378'000, a 2.30% decrease from December 31, 2024, comprising short-term bank loans of RMB 90,091'000 and other borrowings of RMB 9,287'000, with some secured by properties and guaranteed by non-controlling shareholders and subsidiaries Interest-Bearing Borrowings (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current liabilities - other borrowings | 4,928 | 3,514 | 40.24% | | Current liabilities - short-term bank loans | 90,091 | 94,424 | -4.59% | | Current liabilities - other borrowings | 4,359 | 3,777 | 15.41% | | **Total** | **99,378** | **101,715** | **-2.30%** | - Bank borrowings of **RMB 61,071'000** are secured by the Group's buildings and guaranteed by non-controlling shareholders and several subsidiaries, with effective interest rates ranging from **3.25% to 3.65%**[45](index=45&type=chunk) - Bank borrowings of **RMB 29,020'000** are guaranteed by a non-controlling shareholder of a subsidiary and a subsidiary, with effective interest rates ranging from **3.75% to 4.80%**[45](index=45&type=chunk) [Lease Liabilities](index=23&type=section&id=Lease%20Liabilities) As of June 30, 2025, the present value of lease liabilities was RMB 2,511'000, a 32.43% decrease from December 31, 2024, with RMB 1,924'000 due within one year and RMB 587'000 due after one year; total cash outflow for leases during the period was approximately RMB 2,222'000, a 12.93% decrease year-on-year Lease Liabilities (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Present value of lease liabilities | 2,511 | 3,716 | -32.43% | | Due within one year | 1,924 | 1,949 | -1.30% | | Due in second to fifth years | 587 | 1,767 | -66.78% | | Total cash outflow for leases (For the six months ended June 30) | 2,222 | 2,553 | -12.93% | [Share Capital](index=24&type=section&id=Share%20Capital) As of June 30, 2025, the Company's total registered, issued, and fully paid share capital was RMB 167,800'000, comprising 1,252,000 thousand domestic shares and 426,000 thousand H shares, both with a par value of RMB 0.10, unchanged from January 1, 2025 Share Capital Composition (As at June 30) | Share Type | Number of Shares (thousands) | Amount (RMB'000) | | :--- | :--- | :--- | | Domestic shares (par value RMB 0.10 per share) | 1,252,000 | 125,200 | | H shares (par value RMB 0.10 per share) | 426,000 | 42,600 | | **Total** | **1,678,000** | **167,800** | - As of June 30, 2025, the Company's share capital structure remained unchanged from January 1, 2025[47](index=47&type=chunk) [Commitments](index=24&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments for contracted but unprovided property, plant and equipment were approximately RMB 1,005'000, an 18.37% increase from December 31, 2024, while short-term lease commitments were RMB 1,313'000, a 9.64% decrease Capital Commitments (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Property, plant and equipment (contracted but not provided for) | 1,005 | 849 | 18.37% | | Short-term lease commitments (within one year) | 1,313 | 1,452 | -9.64% | - The Group has no specific plans for material investments and capital assets[81](index=81&type=chunk) [Significant Related Party Transactions](index=25&type=section&id=Significant%20Related%20Party%20Transactions) The Group engages in various related party transactions with its intermediate parent, immediate parent, fellow subsidiaries, and related companies, primarily involving sales of goods, purchases of finished goods, office rentals, and lease expenses, all conducted on terms comparable to those with third parties in the ordinary course of business - The Group engages in related party transactions with Neptunus Group (intermediate parent company), Neptunus Bioengineering (immediate parent company), and several fellow subsidiaries and related companies, including sales of goods, purchases of finished goods, and office rentals[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - Related party transactions are conducted in the ordinary course of business on terms comparable to those with other third-party suppliers and customers[51](index=51&type=chunk) [Related Party Transactions](index=25&type=section&id=Related%20Party%20Transactions) For H1 2025, total sales of goods to related parties were RMB 28,486'000, a 29.79% decrease year-on-year, while total purchases of finished goods and merchandise from related parties were RMB 26,274'000, a 53.83% decrease year-on-year Key Related Party Transaction Amounts (For the six months ended June 30) | Transaction Nature | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sales of goods (total) | 28,486 | 40,604 | -29.79% | | Purchases of finished goods/merchandise (total) | 26,274 | 56,907 | -53.83% | | Office rental | 716 | 716 | 0.00% | | Lease expenses | 193 | 148 | 30.41% | - Purchases of finished goods from Shenzhen Neptunus Pharmaceutical Co., Ltd. amounted to **RMB 25,793'000**, a **10.40%** decrease year-on-year[48](index=48&type=chunk) - Purchases of goods from Nanning Neptunus Health Biotechnology Co., Ltd. significantly decreased from **RMB 17,282'000** to **RMB 296'000**[48](index=48&type=chunk) [Outstanding Balances with Related Parties](index=28&type=section&id=Outstanding%20Balances%20with%20Related%20Parties) As of June 30, 2025, total amounts due from related parties were RMB 41,854'000, a 12.59% increase from December 31, 2024, while total amounts due to related parties were RMB 4,422'000, a 43.21% decrease, with all balances unsecured, interest-free, and repayable on demand Outstanding Balances with Related Parties (As at June 30) | Item | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Total amounts due from related parties | 41,854 | 37,170 | 12.59% | | Total amounts due to related parties | 4,422 | 7,786 | -43.21% | | Trade nature amounts due from related parties | 41,531 | 36,850 | 12.70% | | Trade nature amounts due to related parties | 3,337 | 6,619 | -49.59% | - Among trade nature amounts due from related parties, those due within 3 months accounted for the largest portion at **RMB 24,825'000**[59](index=59&type=chunk) - All related party balances are unsecured, interest-free, and repayable on demand[57](index=57&type=chunk) [Key Management Personnel Compensation](index=32&type=section&id=Key%20Management%20Personnel%20Compensation) For H1 2025, total key management personnel compensation was RMB 2,778'000, an 8.69% increase year-on-year, primarily comprising short-term employee benefits and post-employment benefits Key Management Personnel Compensation (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Short-term employee benefits | 2,634 | 2,435 | 8.17% | | Post-employment benefits | 144 | 121 | 19.01% | | **Total** | **2,778** | **2,556** | **8.69%** | Management Discussion and Analysis [Business Review](index=33&type=section&id=Business%20Review) The Group primarily engages in pharmaceutical and medical device R&D, production, sales, and trading in China, covering various therapeutic areas; during the period, some business segments declined due to new medical insurance reform policies and rising procurement costs, but the Group actively adjusted sales strategies, optimized product structure, and strengthened medical device expansion and sales network development - The Group primarily engages in pharmaceutical and medical device research and development, production, and sales, as well as the procurement and sales of pharmaceuticals and health food in China, covering therapeutic areas such as oncology, cardiovascular, respiratory, digestive, and mental illnesses[61](index=61&type=chunk) - New medical insurance reform policies adversely affected retail pharmacy sales, consequently impacting the procurement and sales business of pharmaceuticals and health food[66](index=66&type=chunk) - The Group actively adjusted its sales strategies, focusing on key product sales, vigorously developing the health food market, and increasing product promotion through self-media[66](index=66&type=chunk) [R&D, Production and Sales of Pharmaceuticals and Medical Devices](index=33&type=section&id=R%26D,%20Production%20and%20Sales%20of%20Pharmaceuticals%20and%20Medical%20Devices) The Group operates two pharmaceutical production bases in Fuzhou and Beijing, holding 505 national drug approval numbers, most in the National Basic Medical Insurance Drug List, and continues to invest in generic drug consistency evaluation and new drug R&D, holding 97 patents with 5 varieties having passed consistency evaluation; during the period, two Fujian pharmaceutical subsidiaries saw performance decline due to rising procurement costs and reduced sales of high-margin products, while the Beijing pharmaceutical subsidiary improved operational quality through capacity expansion, product structure adjustment, and marketing model changes - The Group operates two pharmaceutical production bases in Fuzhou and Beijing, holding **505** national drug approval numbers, most of which are included in the National Basic Medical Insurance Drug List[62](index=62&type=chunk) - The Group holds **97** patents (**31** invention, **13** design, **53** utility model), with **5** varieties having passed consistency evaluation[63](index=63&type=chunk) - Two Fujian pharmaceutical subsidiaries experienced a decline in performance, primarily due to rising procurement costs and reduced sales of high-margin products[64](index=64&type=chunk) - Beijing Neptunus Zhongxin Pharmaceutical Co., Ltd. improved its operational quality through capacity expansion, product structure adjustment, and marketing model changes, striving to turn losses into profits[65](index=65&type=chunk) [Procurement and Sales of Pharmaceuticals, Health Food and Medical Devices](index=35&type=section&id=Procurement%20and%20Sales%20of%20Pharmaceuticals,%20Health%20Food%20and%20Medical%20Devices) The Group primarily distributes its own and the parent company group's pharmaceuticals, medical devices, and health food, including Neptunus Ginkgo Biloba Tablets and Neptunus Golden Zun series; new medical insurance reform policies adversely affected retail pharmacy sales, leading to a decline in this segment's performance, prompting the Group to plan H2 sales strategy adjustments, focusing on key products, vigorously developing the health food market, and strengthening medical institution terminal development to stabilize and grow the business - The Group primarily distributes and sells its own and the parent company group's pharmaceuticals, medical devices, and health food, including Neptunus Ginkgo Biloba Tablets and Neptunus Golden Zun series[66](index=66&type=chunk) - New medical insurance reform policies adversely affected retail pharmacy sales, leading to a decline in this segment's performance compared to the prior year[66](index=66&type=chunk)[68](index=68&type=chunk) - The Group plans to adjust its H2 sales strategy, focusing on key product sales, vigorously developing the health food market, and increasing product promotion through self-media[66](index=66&type=chunk) - Fuzhou Fuyao Pharmaceutical Co., Ltd. achieved significant results in medical device expansion and regional pharmaceutical and medical device agency, and plans to strengthen medical institution terminal development[67](index=67&type=chunk) [Financial Review](index=36&type=section&id=Financial%20Review) For H1 2025, the Group's revenue decreased by 8.92% to RMB 495,920'000, gross margin declined by 4 percentage points to 32%, leading to an 18.78% decrease in gross profit; sales and distribution expenses decreased by 10.68%, administrative expenses increased by 6.30%, and finance costs decreased by 9.03%, resulting in a 46.57% decrease in profit after tax and a 49.71% decrease in profit attributable to owners of the Company Key Financial Indicators Movement (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 495,920 | 544,504 | -8.92% | | Gross margin | 32% | 36% | -4 percentage points | | Gross profit | 158,354 | 194,966 | -18.78% | | Selling and distribution expenses | 74,120 | 82,983 | -10.68% | | Administrative expenses | 45,050 | 42,379 | 6.30% | | Finance costs | 2,246 | 2,469 | -9.03% | | Profit after tax | 22,041 | 41,254 | -46.57% | | Profit attributable to owners of the Company | 19,065 | 37,907 | -49.71% | - The decrease in revenue is primarily due to seasonal fluctuations in certain pharmaceuticals and a decline in medical device revenue[69](index=69&type=chunk) - The decline in gross margin is mainly due to increased procurement costs for certain products and reduced revenue from high-margin products[69](index=69&type=chunk) - The increase in administrative expenses is primarily due to higher staff costs and trademark registration fees[70](index=70&type=chunk) [Liquidity and Financial Resources](index=37&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds its operations and investing activities through internal financial resources and bank borrowings; as of June 30, 2025, short-term bank borrowings were RMB 90,091'000, with some bank financing secured by properties, and the Group faces minimal foreign exchange risk, currently not using financial instruments for hedging, while the asset-liability ratio increased to 42.67% - The Group generally funds its operating and investing activities through internal financial resources and bank borrowings[71](index=71&type=chunk) - As of June 30, 2025, short-term bank borrowings amounted to **RMB 90,091'000**[72](index=72&type=chunk) - Utilized bank financing of **RMB 61,071'000** is secured by properties with a carrying value of approximately **RMB 21,826'000**[73](index=73&type=chunk) - The Group faces minimal foreign exchange risk and currently does not use financial instruments for hedging purposes[74](index=74&type=chunk) Asset-Liability Ratio (As at June 30) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Asset-liability ratio | 42.67% | 36.25% | 6.42 percentage points | [Material Investments Held](index=37&type=section&id=Material%20Investments%20Held) Other than as disclosed in this announcement, the Company held no other material investments during the reporting period - During the reporting period, the Company held no other material investments[76](index=76&type=chunk) [Capital Structure](index=37&type=section&id=Capital%20Structure) During the reporting period, the Company's capital structure remained unchanged, with capital comprising its shares and other reserves - During the reporting period, the Company's capital structure remained unchanged, with capital comprising its shares and other reserves[77](index=77&type=chunk) [Interim Dividend](index=37&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the reporting period - The Board does not recommend the payment of any interim dividend for the reporting period[78](index=78&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=37&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[79](index=79&type=chunk) [Contingent Liabilities](index=37&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[80](index=80&type=chunk) [Future Plans for Material Investments and Capital Assets](index=37&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no specific plans for material investments and capital assets - As of June 30, 2025, the Group had no specific plans for material investments and capital assets[81](index=81&type=chunk) [No Material Changes](index=38&type=section&id=No%20Material%20Changes) Except as disclosed in this announcement, there have been no material changes in the Group's financial position or business since the publication of the latest annual report for the six months ended June 30, 2025 - Except as disclosed in this announcement, there have been no material changes in the Group's financial position or business since the publication of the latest annual report[82](index=82&type=chunk) [Employees and Remuneration Policy](index=38&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed a total of 1,474 staff, with employee costs (including directors' emoluments) of approximately RMB 83,948'000 for the period; the Group determines salaries based on employee performance and experience, offering various benefits, training, and development opportunities - As of June 30, 2025, the Group employed a total of **1,474** staff[83](index=83&type=chunk) Employee Costs (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Employee costs (including directors' emoluments) | 83,948 | 80,645 | 4.10% | - The Group determines salaries based on employee performance and work experience, offering various benefits, training, and development opportunities[83](index=83&type=chunk)[84](index=84&type=chunk) [Capital Commitments](index=38&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had contractual commitments for future capital expenditure of approximately RMB 1,005'000 - As of June 30, 2025, the Group had contractual commitments for future capital expenditure of approximately **RMB 1,005'000**[85](index=85&type=chunk) [Directors', Supervisors' and Chief Executive's Interests and Short Positions in Listed Securities](index=38&type=section&id=Directors',%20Supervisors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Listed%20Securities) As of June 30, 2025, directors Mr. Zhang Feng and Ms. Yu Lin beneficially owned approximately 0.05% and 0.03% respectively of the shares in Neptunus Bioengineering, the Company's controlling shareholder; other than this, no directors, supervisors, chief executive, or their associates had any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations Directors' Long Positions in Shares of Associated Corporations (As at June 30) | Director | Name of Associated Corporation | Number of Shares | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Zhang Feng | Neptunus Bioengineering | 1,331,093 | 0.05% | | Ms. Yu Lin | Neptunus Bioengineering | 900,000 | 0.03% | - Except as disclosed, no directors, supervisors, or chief executive had any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations[87](index=87&type=chunk) [Share Schemes, Convertible Securities and Warrants](index=39&type=section&id=Share%20Schemes,%20Convertible%20Securities%20and%20Warrants) As of June 30, 2025, neither the Company nor its subsidiaries had adopted any share schemes, nor had they granted any options, convertible securities, warrants, or other similar rights - As of June 30, 2025, neither the Company nor its subsidiaries had adopted any share schemes, nor had they granted any options, convertible securities, warrants, or other similar rights[88](index=88&type=chunk) [Options, Warrants or Convertible Bonds of Directors and Supervisors](index=39&type=section&id=Options,%20Warrants%20or%20Convertible%20Bonds%20of%20Directors%20and%20Supervisors) At no time during the reporting period were any options, warrants, or convertible bonds of the Company, its subsidiaries, or associated corporations granted to any director or supervisor, or their respective spouses or minor children - At no time during the reporting period were any options, warrants, or convertible bonds of the Company, its subsidiaries, or associated corporations granted to any director or supervisor, or their respective spouses or minor children[89](index=89&type=chunk) [Interests of Substantial Shareholders in Shares and Underlying Shares](index=40&type=section&id=Interests%20of%20Substantial%20Shareholders%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Neptunus Bioengineering directly and indirectly held approximately 73.51% of the Company's issued share capital, making it the controlling shareholder, while Neptunus Group, Neptunus Holdings, and Mr. Zhang Simin are deemed to own approximately 73.51% of the Company's interests through controlled corporations Substantial Shareholders' Long Positions in the Company's Shares (As at June 30) | Substantial Shareholder | Capacity | Number of Domestic Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Neptunus Bioengineering | Beneficial owner and interest in controlled corporation | 1,233,464,500 | 73.51% | | Shenzhen Neptunus Group Co., Ltd. | Interest in controlled corporation | 1,233,464,500 | 73.51% | | Neptunus Holdings | Interest in controlled corporation | 1,233,464,500 | 73.51% | | Mr. Zhang Simin | Interest in controlled corporation | 1,233,464,500 | 73.51% | - Neptunus Bioengineering directly and indirectly holds interests in **1,233,464,500** domestic shares of the Company, representing approximately **73.51%** of the issued share capital[93](index=93&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=41&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities, nor did they hold any treasury shares - During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities, nor did they sell any treasury shares of the Company[94](index=94&type=chunk) [Competing Interests](index=41&type=section&id=Competing%20Interests) Neptunus Bioengineering, the Company's controlling shareholder, has provided a non-competition undertaking to the Company and complied with it during the reporting period, refraining from directly or indirectly participating in or operating any business that competes with the Company's business - Neptunus Bioengineering, the Company's controlling shareholder, has provided a non-competition undertaking to the Company and complied with it during the reporting period[95](index=95&type=chunk)[96](index=96&type=chunk)[100](index=100&type=chunk) - Pursuant to the non-competition undertaking, Neptunus Bioengineering and its associates shall not directly or indirectly participate in or operate any business that directly or indirectly competes with the Company's business[100](index=100&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=41&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code of conduct for directors' securities transactions no less stringent than the GEM Listing Rules' "Required Standard of Dealings," and all directors confirmed compliance after specific inquiry - The Company has adopted a code of conduct for directors' securities transactions that is no less stringent than the "Required Standard of Dealings" set out in the GEM Listing Rules[97](index=97&type=chunk) - Following specific inquiries made to all directors, all directors confirmed their compliance with the code of conduct[97](index=97&type=chunk) [Audit Committee](index=41&type=section&id=Audit%20Committee) The Audit Committee comprises one non-executive director and two independent non-executive directors, with Mr. Yi Yongfa as Chairman; its main responsibilities include reviewing financial statements, providing advice, and reviewing accounting standards, internal controls, and financial reporting procedures, and the Committee has reviewed the Group's unaudited condensed consolidated results - The Audit Committee comprises Ms. Yu Lin, a non-executive director, and Mr. Yi Yongfa (Chairman) and Mr. Pan Jiayang, two independent non-executive directors[98](index=98&type=chunk) - The Audit Committee's primary responsibilities include reviewing the Company's annual reports, financial statements, and half-yearly reports, providing advice and recommendations to the Board, and reviewing accounting standards, internal controls, and financial reporting procedures[98](index=98&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated results for the reporting period[99](index=99&type=chunk) [Compliance with Corporate Governance Code](index=41&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code during the reporting period, except for the combined roles of Chairman and General Manager, and three independent non-executive directors serving over nine years, requiring new appointments to meet code requirements; the Board is seeking suitable candidates and has appointed Ms. Yu Lin as a member of the Nomination Committee - The roles of Chairman and General Manager are combined and held by Mr. Zhang Feng, which does not comply with Rule C.2.1 of the Corporate Governance Code[101](index=101&type=chunk) - Three independent non-executive directors have served for more than nine years, requiring the appointment of a new independent non-executive director to comply with Rule B.2.4(b) of the Corporate Governance Code[101](index=101&type=chunk) - The Board is seeking suitable candidates for new independent non-executive directors and has appointed Ms. Yu Lin, a non-executive director, as a member of the Nomination Committee[102](index=102&type=chunk)[103](index=103&type=chunk) [Events After Reporting Period](index=42&type=section&id=Events%20After%20Reporting%20Period) After the reporting period, the Board appointed Ms. Yu Lin as a member of the Nomination Committee on August 22, 2025, to address the revised Corporate Governance Code and GEM Listing Rules effective July 1, 2025; no other significant events affecting the Group occurred between the end of the reporting period and the date of this announcement - The Board appointed Ms. Yu Lin, a non-executive director, as a member of the Nomination Committee on August 22, 2025, to address the revised Corporate Governance Code and GEM Listing Rules effective July 1, 2025[103](index=103&type=chunk) - Other than the aforementioned disclosure, no other significant events affecting the Group occurred between the end of the reporting period and the date of this announcement[104](index=104&type=chunk)

[Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, Edensoft Holdings Limited saw a decrease in unaudited revenue and gross profit, but a significant increase in profit attributable to owners of the parent and basic and diluted earnings per share 2025 H1 Key Financial Data Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 455.7 | 503.6 | -9.5% | | Gross Profit | 53.9 | 61.8 | -12.8% | | Profit Attributable to Owners of the Parent for the Period | 10.9 | 7.8 | +40.8% | | Basic and Diluted Earnings Per Share Attributable to Owners of the Parent | 0.53 cents | 0.38 cents | +39.5% | - The Board does not recommend an interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) [Unaudited Condensed Consolidated Interim Financial Results](index=2&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B4%A2%E5%8A%A1%E4%B8%9A%E7%BB%A9) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, including the statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, reflecting the company's overall financial performance and changes in asset and liability structure [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) During the reporting period, the company's revenue and gross profit decreased year-on-year, but effective control over selling, administrative, and R&D expenses, along with reduced finance costs, led to a significant increase in profit attributable to owners of the parent Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 455,711 | 503,584 | -9.5% | | Cost of Sales | (401,765) | (441,749) | -9.0% | | Gross Profit | 53,946 | 61,835 | -12.8% | | Selling and Distribution Expenses | (15,179) | (16,206) | -6.3% | | Administrative Expenses | (10,221) | (12,797) | -20.1% | | Research and Development Expenses | (15,200) | (22,975) | -33.8% | | Profit Before Tax | 10,419 | 7,377 | +41.2% | | Profit for the Period | 10,919 | 7,757 | +40.8% | | Profit Attributable to Owners of the Parent for the Period | 10,919 | 7,757 | +40.8% | | Basic and Diluted Earnings Per Share Attributable to Owners of the Parent | RMB 0.53 cents | RMB 0.38 cents | +39.5% | - Other comprehensive loss during the period primarily resulted from exchange differences on currency translation, amounting to **RMB (789) thousand** in H1 2025, compared to **RMB 30 thousand** in H1 2024[4](index=4&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the company's total non-current assets slightly increased, while total current assets and total current liabilities significantly decreased, leading to growth in both net current assets and total equity Condensed Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 22,100 | 21,430 | +3.1% | | Total Current Assets | 318,965 | 416,216 | -23.4% | | Total Current Liabilities | 133,116 | 235,553 | -43.5% | | Net Current Assets | 185,849 | 180,663 | +2.9% | | Total Equity | 207,580 | 200,793 | +3.4% | | Total Equity | 207,580 | 200,793 | +3.4% | - Inventories significantly decreased from **RMB 120,278 thousand** as of December 31, 2024, to **RMB 61,720 thousand** as of June 30, 2025[5](index=5&type=chunk) - Interest-bearing bank borrowings decreased from **RMB 38,034 thousand** as of December 31, 2024, to **RMB 0 thousand** as of June 30, 2025[5](index=5&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For the six months ended June 30, 2025, total equity attributable to owners of the parent increased, mainly due to profit for the period and employee share award scheme service value, partially offset by exchange fluctuations and declared dividends Changes in Equity Attributable to Owners of the Parent (Summary) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Equity | 207,580 | 200,793 | +6,787 | | Profit for the Year | 10,919 | - | +10,919 | | Exchange Differences | (789) | - | (789) | | Employee Share Award Scheme – Employee Service Value | 40 | - | +40 | | Final Dividend Declared for 2024 | (3,383) | - | (3,383) | - For the six months ended June 30, 2024, total equity was **RMB 199,477 thousand**, and profit for the period was **RMB 7,757 thousand**[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) During the reporting period, net cash flow from operating activities significantly decreased, net cash flow from investing activities remained positive, and net cash flow used in financing activities substantially increased, resulting in a decrease in cash and cash equivalents at period-end Condensed Consolidated Statement of Cash Flows (Summary) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 30,262 | 180,789 | -150,527 | | Net Cash Flow from Investing Activities | 164 | 142 | +22 | | Net Cash Flow Used in Financing Activities | (42,805) | (15,981) | -26,824 | | Net (Decrease)/Increase in Cash and Cash Equivalents | (12,379) | 164,950 | -177,329 | | Cash and Cash Equivalents at Period-End | 71,304 | 169,724 | -98,420 | - Net cash flow from operating activities significantly decreased, primarily due to the combined effects of reduced inventories, trade receivables, and prepayments[9](index=9&type=chunk) - Net cash flow used in financing activities increased, mainly due to increased repayment of bank and other borrowings and dividends paid[10](index=10&type=chunk) [Notes to the Unaudited Condensed Consolidated Interim Financial Information](index=10&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%96%99%E9%99%84%E6%B3%A8) This section details the basis of preparation, accounting policies, segment information, specific components and changes of financial items, related party transactions, fair value of financial instruments, and other important disclosures, providing context for understanding the financial data [Company Information](index=10&type=section&id=%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99) Edensoft Holdings Limited, incorporated in the Cayman Islands, primarily provides IT infrastructure services, IT implementation and business application services, and cloud and AI services through its subsidiaries in mainland China - The company was incorporated in the Cayman Islands on **September 4, 2018**, as an investment holding company[11](index=11&type=chunk) - Its principal business is providing IT infrastructure services, IT implementation and business application services, and cloud and AI services in mainland China[11](index=11&type=chunk) [Basis of Presentation](index=10&type=section&id=%E5%91%88%E5%88%97%E5%9F%BA%E5%87%86) The interim condensed consolidated financial information is prepared in accordance with HKAS 34 and the HKEX Listing Rules, and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024 - The interim financial information is prepared in accordance with **HKAS 34** and the disclosure requirements of the Listing Rules[12](index=12&type=chunk) - It does not include all information and disclosures required in annual financial statements and should be read in conjunction with the **2024 annual consolidated financial statements**[12](index=12&type=chunk) [Changes in Accounting Policies and Disclosures](index=10&type=section&id=%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9%E5%8F%98%E5%8A%A8) This period's financial information first adopted the revised HKFRSs, with the amendments to HKAS 21 regarding lack of exchangeability having no impact on the Group's interim condensed consolidated financial information - The accounting policies adopted in preparing the interim financial information are consistent with those in the 2024 annual consolidated financial statements, but revised HKFRSs were adopted for the first time[13](index=13&type=chunk) - The amendments to HKAS 21 regarding lack of exchangeability had no impact on the Group's interim condensed consolidated financial information, as the Group's transaction and functional currencies are exchangeable[14](index=14&type=chunk) [Segment Information](index=11&type=section&id=%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group has three reportable operating segments: IT infrastructure services, IT implementation and business application services, and cloud and AI services; during the reporting period, revenue from cloud and AI services decreased, while revenue from IT infrastructure services and IT implementation and business application services increased Reportable Segment Revenue and Gross Profit Comparison | Segment | 2025 H1 Revenue (RMB thousand) | 2024 H1 Revenue (RMB thousand) | Revenue Change (%) | 2025 H1 Gross Profit (RMB thousand) | 2024 H1 Gross Profit (RMB thousand) | Gross Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | IT Infrastructure Services | 168,895 | 147,126 | +14.8% | 13,943 | 15,216 | -8.3% | | IT Implementation and Business Application Services | 75,235 | 67,186 | +12.0% | 26,655 | 19,090 | +39.6% | | Cloud and AI Services | 211,581 | 289,272 | -26.9% | 13,348 | 27,529 | -51.5% | | **Total** | **455,711** | **503,584** | **-9.5%** | **53,946** | **61,835** | **-12.8%** | - Cloud and AI services include providing design, management, and technical support using cloud platforms (self-developed and third-party)[16](index=16&type=chunk) - IT infrastructure services involve assessing customer needs, recommending hardware/software products, procurement, and installation[16](index=16&type=chunk) [Revenue, Other Income and Gains](index=12&type=section&id=%E6%94%B6%E7%9B%8A%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) The Group's revenue primarily comes from IT infrastructure services, IT implementation and business application services, and cloud and AI services, with adjustments in cloud solution services and IT design and implementation services in H1 2025; Mainland China remains the main revenue source, with increased contribution from Hong Kong; other income mainly includes bank interest, government grants, and foreign exchange gains Revenue by Service Type and Geographical Market (Summary) | Service Type/Geographical Market | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | **Service Type** | | | | Sales of Software and/or Hardware Products and Related Services | 168,895 | 147,126 | | Sales of Solution-based Software and/or Hardware Products and Related Services | 46,005 | 25,802 | | IT Support and Maintenance Services | 11,866 | 8,596 | | IT Design and Implementation Services | 17,364 | 32,788 | | Cloud Solution Services | - | 285,644 | | Cloud Platform Design Services | 131,829 | 3,628 | | **Geographical Market** | | | | Mainland China | 409,800 | 489,233 | | Hong Kong | 45,914 | 14,351 | | **Timing of Revenue Recognition** | | | | At a point in time | 294,652 | 172,928 | | Over time | 161,059 | 330,656 | Other Income Comparison | Other Income Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 222 | 154 | | Government Grants – Income Related | 573 | 820 | | Foreign Exchange Gains | 58 | - | | **Total** | **853** | **974** | [Profit Before Tax](index=13&type=section&id=%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9) The Group's profit before tax increased during the reporting period, mainly due to reduced cost of sales, R&D expenses, employee benefit expenses, and net foreign exchange differences, partially offset by increased impairment of trade and bills receivables Profit Before Tax Deductions/(Additions) (Summary) | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Cost of Goods Sold and Services Rendered | 401,765 | 441,749 | | Depreciation of Property, Plant and Equipment | 180 | 113 | | Depreciation of Right-of-Use Assets | 1,057 | 1,618 | | Research and Development Expenses | 15,200 | 22,975 | | Total Employee Benefit Expenses | 34,161 | 36,087 | | Net Foreign Exchange Differences | (58) | 914 | | Impairment of Trade and Bills Receivables | 2,846 | 1,392 | [Income Tax Expense](index=13&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) The Group faces varying income tax policies across jurisdictions, with Cayman Islands and BVI being tax-exempt; Hong Kong profits tax is 16.5% (8.25% for eligible entities); Mainland China subsidiaries enjoy preferential tax rates based on high-tech enterprise or small and micro enterprise qualifications, resulting in an income tax credit during the reporting period - Cayman Islands and British Virgin Islands are exempt from any taxation[20](index=20&type=chunk)[21](index=21&type=chunk) - Hong Kong profits tax is levied at **16.5%**, with eligible subsidiaries taxed at **8.25%** on the first **HKD 2,000,000** of assessable profits[21](index=21&type=chunk) - Mainland China subsidiaries enjoy preferential tax rates: high-tech enterprises (**15%**), small and micro enterprises (**5%** on the first **RMB 1,000,000**, **10%** on the remaining less than **RMB 3,000,000**)[22](index=22&type=chunk) Total Income Tax Credit | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Deferred | (500) | (380) | | **Total Tax Credit for the Period** | **(500)** | **(380)** | [Finance Costs](index=14&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) During the reporting period, the Group's finance costs significantly decreased, primarily due to reduced interest on bank loans and lease liabilities Finance Costs Comparison | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Interest on Bank Loans | 405 | 1,006 | | Interest on Lease Liabilities | 68 | 136 | | **Total** | **473** | **1,142** | [Dividends](index=14&type=section&id=%E8%82%A1%E6%81%AF) The company approved a final dividend of HK 0.18 cents per share for 2024 on May 23, 2025, totaling HKD 3,681,000, which was fully paid on June 23, 2025 - A final dividend of **HK 0.18 cents per share** for 2024, totaling **HKD 3,681,000**, was approved on May 23, 2025[24](index=24&type=chunk) - The related dividend was fully paid on June 23, 2025[24](index=24&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=14&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the parent were RMB 0.53 cents, an increase from RMB 0.38 cents in the prior year, calculated based on profit for the period and weighted average number of ordinary shares outstanding Earnings Per Share Comparison | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent for the Period | RMB 10,900,000 | RMB 7,800,000 | | Weighted Average Number of Ordinary Shares Outstanding | 2,044,947,350 shares | 2,044,947,350 shares | | Basic and Diluted Earnings Per Share | RMB 0.53 cents | RMB 0.38 cents | - The Group had no potentially dilutive ordinary shares outstanding during the reporting period[25](index=25&type=chunk) [Property, Plant and Equipment](index=14&type=section&id=%E7%89%A9%E4%B8%9A%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87) For the six months ended June 30, 2025, the Group's cost of assets purchased was RMB 58,379, an increase from the prior year Asset Purchase Cost Comparison | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Cost of Assets Purchased | 58,379 | 11,574 | - Assets with zero net book value were disposed of during the reporting period[26](index=26&type=chunk) [Trade and Bills Receivables](index=15&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E6%94%B6%E7%A5%A8%E6%8D%AE) As of June 30, 2025, the Group's net trade receivables increased, while bills receivables significantly decreased, leading to an overall decline in total trade and bills receivables; overdue balances are regularly reviewed by senior management Trade and Bills Receivables Comparison | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 188,774 | 172,328 | | Impairment | (23,701) | (20,855) | | Net Trade Receivables | 165,073 | 151,473 | | Bills Receivables | 262 | 30,688 | | **Total** | **165,335** | **182,161** | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 131,759 | 123,330 | | 6 to 12 months | 25,018 | 19,557 | | Over 12 months | 31,997 | 29,441 | | **Total** | **188,774** | **172,328** | [Trade and Bills Payables](index=16&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E4%BB%98%E7%A5%A8%E6%8D%AE) As of June 30, 2025, the Group's total trade and bills payables significantly decreased, primarily due to a substantial reduction in payables within 30 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 100,672 | 154,339 | | 31 to 60 days | 1,793 | 3,868 | | 61 to 90 days | – | 1,337 | | Over 90 days | 4,926 | 2,549 | | **Total** | **107,391** | **162,093** | - Trade payables are non-interest bearing and typically settled within **30 to 90 days**, with carrying amounts approximating fair values[30](index=30&type=chunk) [Share Capital](index=16&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's issued and fully paid share capital remained unchanged at 2,044,947,350 ordinary shares of HKD 0.01 each, equivalent to RMB 18,654,000 Share Capital Information | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Issued and Fully Paid Ordinary Shares | 2,044,947,350 shares | 2,044,947,350 shares | | Par Value Per Share | HKD 0.01 | HKD 0.01 | | RMB Equivalent | RMB 18,654,000 | RMB 18,654,000 | [Pledged Assets](index=16&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%A8%E6%8A%BC) As of June 30, 2025, pledged bank deposits of RMB 4,786,000 were restricted due to judicial freezing - As of June 30, 2025, pledged bank deposits of **RMB 4,786,000** were restricted due to judicial freezing[32](index=32&type=chunk) [Related Party Transactions and Balances](index=16&type=section&id=%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93%E5%8F%8A%E7%BB%93%E4%BD%99) The Group's bank financing and borrowings are guaranteed by controlling shareholder Ms. Ding Xinyun, and key management personnel's remuneration slightly increased during the reporting period Bank Financing and Borrowings Guaranteed by Related Party | Guarantor | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Ms. Ding Xinyun (Controlling Shareholder) | 175,000 | 175,000 | Key Management Personnel Remuneration Comparison | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Salaries, Allowances and Benefits in Kind | 1,666 | 1,648 | | Contributions to Retirement Benefit Schemes | 146 | 95 | | **Total** | **1,812** | **1,743** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=17&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E4%B9%8B%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E5%8F%8A%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E5%B1%82%E7%BA%A7) The fair values of the Group's financial assets and liabilities approximate their respective carrying amounts, mainly due to their short-term maturity; the company has a corporate finance team responsible for fair value measurement policies and procedures, approved by the CFO - The fair values of the Group's financial assets and financial liabilities approximate their respective carrying amounts, mainly due to their short-term maturity[36](index=36&type=chunk) - The corporate finance team is responsible for determining policies and procedures for fair value measurement of financial instruments, reporting directly to the Chief Financial Officer, with valuations approved by the Chief Financial Officer[37](index=37&type=chunk) [Events After the Reporting Period](index=17&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) The Group had no significant events after June 30, 2025, up to the date of approval of the financial statements - The Group had no significant events after June 30, 2025, and up to the date of approval of the financial statements[38](index=38&type=chunk) [Approval of Unaudited Condensed Consolidated Interim Financial Statements](index=17&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B9%8B%E6%89%B9%E5%87%86) The unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Board on August 22, 2025 - The unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Board on **August 22, 2025**[39](index=39&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section provides a detailed review of the company's business performance during the reporting period, particularly advancements in cloud services and generative AI, and outlines future strategic directions, along with an in-depth analysis of financial position, corporate governance, employee policies, and other important matters [Business Review](index=18&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B1) In H1 2025, the Group adhered to its Data+AI strategy, leveraging AI R&D capabilities and IT infrastructure and cloud service advantages to rapidly implement AI vertical industry applications and drive product AI-ization and high-value transformation, achieving significant results - The Group adhered to its **Data+AI strategy**, leveraging AI R&D capabilities and IT infrastructure and cloud service advantages to rapidly implement AI vertical industry applications[40](index=40&type=chunk) - It promoted product AI-ization and high-value transformation, achieving significant operating results and positive market feedback[40](index=40&type=chunk) [Core Business – Cloud Services and Generative AI](index=18&type=section&id=%E6%A0%B8%E5%BF%83%E4%B8%9A%E5%8A%A1%EF%BC%8D%E4%BA%91%E6%9C%8D%E5%8A%A1%E5%8F%8A%E7%94%9F%E6%88%90%E5%BC%8FAI) During the reporting period, cloud services and generative AI business revenue was approximately RMB 211.6 million, with a gross profit margin of 6.3%; the Group, as an independent third-party cloud managed service provider, offers comprehensive cloud solutions; its self-developed Yi AI Enterprise Intelligent Assistant and eCopilot Office AI Assistant rapidly responded to the market, obtaining multiple certifications and successfully deploying in finance, retail, and education sectors Cloud Services and Generative AI Business Performance | Indicator | 2025 H1 | | :--- | :--- | | Business Revenue | Approximately RMB 211.6 million | | Gross Profit Margin | 6.3% | - The Group acts as an independent third-party cloud managed service provider (MSP), offering domestic and international basic cloud resources and comprehensive cloud solutions[41](index=41&type=chunk) - Self-developed Yi AI Enterprise Intelligent Assistant and eCopilot Office AI Assistant have passed Huawei Cloud platform professional certification, Huawei Kunpeng/Ascend domestic technology certification, and successfully listed on AWS overseas Marketplace, achieving scaled deployment in finance, retail, and education markets[42](index=42&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [IT Infrastructure Services](index=20&type=section&id=IT%E5%9F%BA%E7%A1%80%E8%AE%BE%E6%96%BD%E6%9C%8D%E5%8A%A1) During the reporting period, IT infrastructure services revenue was RMB 168.9 million, a 14.8% year-on-year increase, with a gross profit margin of 8.3%, a 2.0% year-on-year decrease; the Group, through its partnership with H3C, holds a leading position in virtualization services IT Infrastructure Services Business Performance | Indicator | 2025 H1 | Year-on-Year Growth | | :--- | :--- | :--- | | Business Revenue | RMB 168.9 million | 14.8% | | Gross Profit Margin | 8.3% | Decreased by 2.0% | - The Group's IT infrastructure services cover hardware, network components, operating systems, data storage, and technical operation and maintenance services[47](index=47&type=chunk) - Successfully joined the "H3C Virtualization Software Sales Alliance," aiming to secure a leading position in the domestic virtual machine market[47](index=47&type=chunk) [IT Implementation and Business Application Services](index=20&type=section&id=IT%E5%AE%9E%E6%96%BD%E5%8F%8A%E5%95%86%E4%B8%9A%E5%BA%94%E7%94%A8%E6%9C%8D%E5%8A%A1) During the reporting period, IT implementation and business application services revenue was approximately RMB 75.2 million, a 12.0% year-on-year increase, with a gross profit margin of 35.4%, a 7.0% year-on-year increase; the Group provides business application, data and cybersecurity, infrastructure, and modern office solutions to enterprises using AI-driven tools and digital transformation methods; as a key Huawei Cloud ecosystem partner, the Group participates in the "Huawei Cloud AI Application Innovation Leading Program" IT Implementation and Business Application Services Business Performance | Indicator | 2025 H1 | Year-on-Year Growth | | :--- | :--- | :--- | | Business Revenue | Approximately RMB 75.2 million | 12.0% | | Gross Profit Margin | 35.4% | Increased by 7.0% | - The Group utilizes AI-driven tools and comprehensive digital transformation methods to provide business application, data and cybersecurity, infrastructure, and modern office solutions[48](index=48&type=chunk) - As a key Huawei Cloud ecosystem partner, it was invited to participate in the "Huawei Cloud AI Application Innovation Leading Program" to accelerate AI application deployment across various industries[49](index=49&type=chunk) [Outlook](index=21&type=section&id=%E5%B1%95%E6%9C%9B) The Group will continue to advance its Data+AI strategy, especially in GenAI, by iterating and innovating AI products, promoting the deployment of core AI products across multiple industries, and enhancing product value and profitability through AI, to capitalize on the strong growth opportunities in the cloud and AI market - Gartner data shows the global cloud computing market reached **USD 692.9 billion** in 2024, with a **20.3%** year-on-year growth, projected to approach **USD 2 trillion** by 2030[50](index=50&type=chunk) - The Group will fully commit to its **Data+AI strategy**, particularly in the **GenAI domain**, continuously monitoring global top large models and GenAI trends, and providing competitive customized solutions that meet customer business requirements[50](index=50&type=chunk) [Continuously Advancing Data+AI Strategy and Iterating AI Product Innovation](index=21&type=section&id=%E6%8C%81%E7%BB%AD%E6%8E%A8%E8%BF%9BData%2BAI%E6%88%98%E7%95%A5%EF%BC%8C%E8%BF%AD%E4%BB%A3%E5%88%9B%E6%96%B0AI%E4%BA%A7%E5%93%81) The Group will fully commit to its Data+AI strategy, especially in GenAI, continuously monitoring global top large models and GenAI trends, and providing competitive customized solutions, aiming to take a proactive stance in the new wave of intelligence and achieve long-term sustainable business growth - The Group will fully commit to its **Data+AI strategy**, particularly in the **GenAI domain**, continuously monitoring global top large models and GenAI trends[50](index=50&type=chunk) - It aims to provide competitive customized solutions that meet customer business requirements, taking a proactive stance in the new wave of intelligence to achieve long-term sustainable business growth[50](index=50&type=chunk) [Promoting Multi-Industry Deployment of Core AI Products](index=21&type=section&id=%E6%8E%A8%E5%8A%A8%E6%A0%B8%E5%BF%83AI%E4%BA%A7%E5%93%81%E5%A4%9A%E8%A1%8C%E4%B8%9A%E8%90%BD%E5%9C%B0) eCopilot, an AI office assistant plugin, has completed localization and domestic technology adaptation, and successfully listed on leading domestic and international cloud vendor marketplaces, with future plans to enhance industry-specific customization capabilities; Yi AI Enterprise Intelligent Assistant, a commercial enterprise intelligent application platform, supports AI Agent and MCP toolbox, transforming AI from a general capability into industry productivity, enabling replicable and scalable solutions - eCopilot has completed localization and domestic technology adaptation, and successfully listed on leading domestic and international cloud vendor marketplaces, with future plans to enhance industry-specific customization capabilities[51](index=51&type=chunk) - Yi AI Enterprise Intelligent Assistant supports **AI Agent** and **MCP toolbox**, enabling deep integration with various vertical industries, transforming AI from a general capability into industry productivity[52](index=52&type=chunk) - By deeply understanding customer business needs, it aims to achieve deep application of AI in enterprise business and form replicable and scalable solutions[52](index=52&type=chunk) [AI-Driven Enhancement of Product Value and Profitability](index=22&type=section&id=AI%E9%A9%B1%E5%8A%A8%E4%BA%A7%E5%93%81%E4%BB%B7%E5%80%BC%E5%92%8C%E7%9B%88%E5%88%A9%E8%83%BD%E5%8A%9B%E6%8F%90%E5%8D%87) The company significantly enhances the value of its self-developed products through vigorous R&D and promotion of AI products and deep application of AI technology, committed to continuous growth in product value and sustainable improvement in profitability - Deep application of AI technology in products has significantly enhanced the value of the company's self-developed products[53](index=53&type=chunk) - The company is committed to continuously growing product value and sustainably improving profitability through vigorous R&D and promotion of AI products[53](index=53&type=chunk) [Financial Review](index=22&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B1) This section details the changes in various financial indicators during the reporting period, including revenue, costs, profits, expenses, impairments, finance costs, taxes, profit for the period, pledged assets, capital expenditures, prepayments, litigation, liquidity, and capital structure, revealing the drivers and risk profile of the company's financial performance - Profit attributable to owners of the parent was approximately **RMB 10.9 million**, an increase of approximately **40.8%** compared to the same period last year[66](index=66&type=chunk) - As of June 30, 2025, the Group's gearing ratio was **15.6%**, a significant decrease from **38.0%** as of December 31, 2024[72](index=72&type=chunk) [Revenue](index=22&type=section&id=%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, the Group's revenue was approximately RMB 455.7 million, a 9.5% year-on-year decrease, primarily due to reduced revenue from the cloud and AI services segment Revenue Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 455.7 | 503.6 | -9.5% | - The decrease in revenue was primarily due to a reduction in the cloud and AI services segment compared to the same period last year[54](index=54&type=chunk) [Cost of Sales](index=22&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC) The Group's cost of sales decreased by 9.1% from approximately RMB 441.7 million in the same period of 2024 to approximately RMB 401.8 million in H1 2025, a reduction broadly consistent with the decrease in revenue for the period Cost of Sales Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 401.8 | 441.7 | -9.1% | - The decrease in cost of sales was broadly consistent with the decrease in revenue for the same period[55](index=55&type=chunk) [Gross Profit and Gross Profit Margin](index=22&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) The Group's gross profit decreased by 12.8% from approximately RMB 61.8 million in the same period of 2024 to approximately RMB 53.9 million in H1 2025; the gross profit margin decreased from 12.3% to 11.8%, mainly due to lower margins to expand existing customers and win orders Gross Profit and Gross Profit Margin Comparison | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 53,946 | 61,835 | -12.8% | | Gross Profit Margin | 11.8% | 12.3% | -0.5 percentage points | - The decrease in gross profit margin was primarily due to lower margins to expand new industry customers and win orders[57](index=57&type=chunk) [Other Income and Gains](index=23&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains decreased by 12.4% from approximately RMB 1.0 million in the same period of 2024 to approximately RMB 0.9 million in H1 2025, mainly due to reduced government grants during the reporting period Other Income and Gains Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 0.9 | 1.0 | -12.4% | - The decrease was primarily due to reduced government grants during the reporting period[58](index=58&type=chunk) [Selling and Distribution Expenses](index=23&type=section&id=%E9%94%80%E5%94%AE%E5%8F%8A%E5%88%86%E9%94%80%E5%BC%80%E6%94%AF) Selling and distribution expenses decreased by 6.3% from approximately RMB 16.2 million in the same period of 2024 to approximately RMB 15.2 million in H1 2025, primarily due to a decrease in staff costs Selling and Distribution Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 15.2 | 16.2 | -6.3% | - The decrease was primarily due to a decrease in staff costs incurred during the reporting period[59](index=59&type=chunk) [Administrative Expenses](index=23&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) Administrative expenses decreased by 20.1% from approximately RMB 12.8 million in the same period of 2024 to approximately RMB 10.2 million in H1 2025, primarily due to a decrease in staff costs Administrative Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 10.2 | 12.8 | -20.1% | - The decrease was primarily due to a decrease in staff costs incurred during the reporting period[60](index=60&type=chunk) [Research and Development Expenses](index=23&type=section&id=%E7%A0%94%E7%A9%B6%E5%8F%8A%E5%BC%80%E5%8F%91%E5%BC%80%E6%94%AF) Research and development expenses decreased by 33.8% from approximately RMB 23.0 million in the same period of 2024 to approximately RMB 15.2 million in H1 2025, primarily due to a strategic adjustment in the direction of some projects, leading to a short-term cost reduction Research and Development Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 15.2 | 23.0 | -33.8% | - The decrease was primarily due to a strategic adjustment in the direction of some projects during the reporting period, leading to a short-term cost reduction[61](index=61&type=chunk) [Other Expenses](index=23&type=section&id=%E5%85%B6%E4%BB%96%E5%BC%80%E6%94%AF) The Group's other expenses decreased by 55.3% from approximately RMB 1.0 million in the same period of 2024 to approximately RMB 0.4 million in H1 2025, primarily due to a narrower fluctuation in the RMB exchange rate against the USD, leading to reduced foreign exchange losses Other Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 0.4 | 1.0 | -55.3% | - The decrease was primarily due to a narrower fluctuation in the RMB exchange rate against the USD during the reporting period, leading to reduced foreign exchange losses for the Group[62](index=62&type=chunk) [Impairment Recognized](index=24&type=section&id=%E7%A1%AE%E8%AE%A4%E5%87%8F%E5%80%BC) During the reporting period, the Group recognized an impairment of approximately RMB 2.9 million for trade and bills receivables, an increase from approximately RMB 1.4 million in the same period of 2024, due to higher bad debt provisions based on the ageing of receivables Impairment of Trade and Bills Receivables Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Impairment of Trade and Bills Receivables | 2.9 | 1.4 | +107.1% | - The increase in impairment was due to higher bad debt provisions based on the ageing of receivables[63](index=63&type=chunk) [Finance Costs](index=24&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) Finance costs decreased by 58.6% from approximately RMB 1.1 million in the same period of 2024 to approximately RMB 0.5 million in H1 2025, due to reduced borrowings and interest expenses during the reporting period Finance Costs Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 0.5 | 1.1 | -58.6% | - The decrease was due to reduced borrowings and interest expenses during the reporting period[64](index=64&type=chunk) [Income Tax Credit](index=24&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E6%8A%B5%E5%85%8D) Income tax credit increased by 31.5% from approximately RMB 0.4 million in the same period of 2024 to approximately RMB 0.5 million in H1 2025, primarily due to an increase in deferred tax credit resulting from increased provisions for trade receivables Income Tax Credit Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Credit | 0.5 | 0.4 | +31.5% | - The increase in deferred tax credit was primarily due to increased provisions for trade receivables during the six months ended June 30, 2025[65](index=65&type=chunk) [Profit Attributable to Owners of the Parent for the Period](index=24&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%8B%A5%E6%9C%89%E4%BA%BA%E5%BA%94%E4%BD%94%E6%9C%9F%E5%86%85%E6%BA%A2%E5%88%A9) The Group recorded a profit attributable to owners of the parent of approximately RMB 10.9 million during the reporting period, an increase of 40.8% compared to approximately RMB 7.8 million in the same period of 2024 Profit Attributable to Owners of the Parent for the Period Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent for the Period | 10.9 | 7.8 | +40.8% | [Pledged Assets](index=24&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%A8%E6%8A%BC) As of June 30, 2025, pledged bank deposits of approximately RMB 4.8 million were restricted due to judicial freezing related to litigation - As of June 30, 2025, pledged bank deposits of approximately **RMB 4.8 million** were restricted due to judicial freezing related to litigation[67](index=67&type=chunk) [Capital Expenditure and Commitments](index=24&type=section&id=%E8%B5%84%E6%9C%AC%E5%BC%80%E6%94%AF%E5%8F%8A%E6%89%BF%E6%8B%84) As of June 30, 2025, the Group's capital expenditure for equipment purchases was RMB 58,379, an increase from December 31, 2024; the Group had no contracted but unprovided commitments Capital Expenditure Comparison | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Capital Expenditure for Equipment Purchases | 58,379 | 36,000 | - As of June 30, 2025, the Group had no contracted but unprovided commitments[68](index=68&type=chunk) [Prepayments, Deposits and Other Receivables](index=25&type=section&id=%E9%A2%84%E4%BB%98%E6%AC%BE%E9%A1%B9%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of June 30, 2025, the Group's prepayments, deposits, and other receivables were approximately RMB 12.6 million, a 42.6% decrease from December 31, 2024, primarily due to a reduction in tax receivables (recoverable VAT) Prepayments, Deposits and Other Receivables Comparison | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments, Deposits and Other Receivables | 12.6 | 21.9 | -42.6% | - The decrease was primarily due to a reduction of approximately **RMB 7.7 million** in tax receivables (i.e., recoverable VAT) during the reporting period[69](index=69&type=chunk) [Litigation and Contingent Liabilities](index=25&type=section&id=%E8%AF%89%E8%AE%BC%E5%8F%8A%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) Shenzhen Edensoft, a subsidiary of the Group, was claimed by a supplier for contract payment disputes, resulting in approximately RMB 4.8 million in its bank accounts being judicially frozen; other than this, the Group had no significant contingent liabilities - Shenzhen Edensoft was claimed by a supplier for contract payment disputes (approximately **RMB 3.38 million**)[70](index=70&type=chunk) - As of June 30, 2025, approximately **RMB 4.8 million** in Shenzhen Edensoft's bank accounts was judicially frozen[70](index=70&type=chunk) - Other than the above disclosure, the Group had no significant contingent liabilities[70](index=70&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) As of June 30, 2025, the Group's total current assets and cash and cash equivalents both decreased, but total equity increased; the gearing ratio significantly decreased to 15.6% Liquidity and Financial Resources Comparison | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Current Assets | 319.0 | 416.2 | -23.4% | | Cash and Cash Equivalents | 71.3 | 84.2 | -15.3% | | Pledged Deposits | 4.8 | 4.8 | 0% | | Total Equity | 207.6 | 200.8 | +3.4% | | Gearing Ratio | 15.6% | 38.0% | -22.4 percentage points | [Capital Structure and Exchange Rate Risk](index=26&type=section&id=%E8%B5%84%E6%9C%AC%E6%9E%B6%E6%9E%84%E5%8F%8A%E6%B1%87%E7%8E%87%E9%A3%8E%E9%99%A9) The Group's capital structure comprises debt and equity attributable to owners of the parent; the Board reviews the capital structure semi-annually and considers balancing it through new share issues, share repurchases, new debt issuance, or redemption of existing debt; the Group's monetary assets, liabilities, and transactions are primarily denominated in RMB, with no exchange rate hedging, but risks are closely monitored - The Group's capital structure comprises debt (interest-bearing bank borrowings, lease liabilities, financial liabilities from trade and other payables) and equity attributable to owners of the parent[74](index=74&type=chunk) - The Board reviews the capital structure semi-annually and considers balancing it through new share issues, share repurchases, new debt issuance, or redemption of existing debt[74](index=74&type=chunk) - The Group's monetary assets, liabilities, and transactions are primarily denominated in RMB, with no exchange rate hedging, but this risk is closely monitored[74](index=74&type=chunk) [Interest Rate Risk](index=26&type=section&id=%E5%88%A9%E7%8E%87%E9%A3%8E%E9%99%A9) The Group faces fair value interest rate risk from fixed-rate bank borrowings and cash flow interest rate risk from market interest rate fluctuations on bank deposits and borrowings; the Group has not entered into derivative agreements or used financial instruments to hedge interest rate risk, but management monitors and considers hedging when necessary - The Group faces fair value interest rate risk from fixed-rate bank borrowings and cash flow interest rate risk from market interest rate fluctuations on bank deposits and borrowings[75](index=75&type=chunk) - The Group has not entered into derivative agreements or used financial instruments to hedge interest rate risk[75](index=75&type=chunk) - Management monitors interest rate risk and will consider hedging significant interest rate risks when necessary[75](index=75&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=%E5%83%B1%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group employed 251 staff, with total employee benefit expenses of approximately RMB 34.2 million; remuneration policy considers market levels, employee responsibilities, and Group performance, offering basic salaries, fringe benefits, and discretionary bonuses; the Group also provides continuous education and training, and has adopted a share option scheme to attract and retain talent Employee Headcount and Benefit Expenses Comparison | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Employee Headcount | 251 persons | 234 persons | | Total Employee Benefit Expenses | Approximately RMB 34.2 million | Approximately RMB 36.1 million | - Remuneration is determined by reference to market salary levels paid by comparable companies, individual employee responsibilities, and the Group's performance[76](index=76&type=chunk) - The Group provides continuous education and training courses, and has adopted a share option scheme to recognize and reward employee contributions[77](index=77&type=chunk) [Share Option Scheme](index=27&type=section&id=%E8%B4%AD%E8%82%A1%E6%9D%83%E8%AE%A1%E5%88%92) The company adopted a share option scheme on April 14, 2020, to attract and retain talent and promote business development; as of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed - The company adopted a share option scheme on **April 14, 2020**, to attract and retain competent personnel and provide additional incentives[78](index=78&type=chunk) - As of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed[78](index=78&type=chunk) [Share Award Scheme](index=27&type=section&id=%E8%82%A1%E4%BB%BD%E5%A5%96%E5%8A%B1%E8%AE%A1%E5%88%92) The company adopted a share award scheme to reward eligible participants who contribute to the Group's business success; the scheme became effective on November 9, 2021, for a period of 10 years; on March 23, 2022, the Board granted 44,947,350 award shares to 42 selected employees - The company adopted a share award scheme to reward eligible participants who contribute to the Group's business success[79](index=79&type=chunk) - The scheme became effective on **November 9, 2021**, for a period of **10 years** from the adoption date[79](index=79&type=chunk) - On **March 23, 2022**, the Board granted **44,947,350 award shares** to **42 selected employees**, representing approximately **2.25%** of the issued share capital at the adoption date[81](index=81&type=chunk) [Dividends](index=28&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the reporting period - The Board does not recommend an interim dividend for the reporting period (June 30, 2024: nil)[82](index=82&type=chunk) [Material Investments, Significant Acquisitions or Disposals of Subsidiaries and Affiliated Companies](index=28&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E3%80%81%E9%99%84%E5%B1%9E%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%94%E5%B1%9E%E5%85%AC%E5%8F%B8%E4%B9%8B%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E6%88%96%E5%87%BA%E5%94%AE) The Group held no material investments or conducted any significant acquisitions or disposals of subsidiaries and affiliated companies during the reporting period, nor did it have any plans for material investments or capital assets - The Group held no material investments or conducted any significant acquisitions or disposals of subsidiaries and affiliated companies during the reporting period[83](index=83&type=chunk) - As of June 30, 2025, the Group had no plans for material investments or capital assets[83](index=83&type=chunk) [Repurchase, Sale or Redemption of the Company's Securities](index=28&type=section&id=%E8%B4%AD%E5%9B%9E%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E8%AF%81%E5%88%B8) For the six months ended June 30, 2025, and up to the date of this announcement, neither the company nor any of its subsidiaries repurchased, sold, or redeemed any of the company's securities, and the company held no treasury shares - For the six months ended June 30, 2025, and up to the date of this announcement, neither the company nor any of its subsidiaries repurchased, sold, or redeemed any of the company's securities[84](index=84&type=chunk) - As of June 30, 2025, the company held no treasury shares[84](index=84&type=chunk) [Compliance with Corporate Governance Code](index=28&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company is committed to high standards of corporate governance and has complied with Appendix C1 of the Listing Rules Corporate Governance Code, except for a deviation from code provision C.2.1 (non-segregation of roles of Chairman and Chief Executive); the Board believes Ms. Ding Xinyun's dual role benefits the Group's operations and management and will review the role segregation when appropriate - The company has complied with Appendix C1 of the Listing Rules Corporate Governance Code, except for a deviation from code provision C.2.1[85](index=85&type=chunk) - Code provision C.2.1 stipulates that the roles of Chairman and Chief Executive should be separate and not performed by the same individual; Ms. Ding Xinyun holds both positions[86](index=86&type=chunk) - The Board believes Ms. Ding's dual role benefits the Group's business operations and management and will review the role segregation when appropriate[86](index=86&type=chunk)[87](index=87&type=chunk) [Standard Code for Securities Transactions by Directors](index=29&type=section&id=%E8%91%A3%E4%BA%8B%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions; upon enquiry, all directors confirmed compliance with the required dealing standards during the reporting period - The company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[88](index=88&type=chunk) - All directors confirmed compliance with the required dealing standards set out in the Standard Code for the six months ended June 30, 2025, and up to the date of this announcement[88](index=88&type=chunk) [Review of Results by Audit Committee](index=29&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A%E5%AE%A1%E9%98%85%E4%B8%9A%E7%BB%A9) The company's Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the period ended June 30, 2025, and found the statements to comply with applicable accounting standards, Listing Rules, and legal requirements, with sufficient disclosures made - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the period ended June 30, 2025[89](index=89&type=chunk) - The Audit Committee believes the statements comply with applicable accounting standards, Listing Rules, and legal requirements, and that sufficient disclosures have been made[89](index=89&type=chunk) [Events After the Reporting Period](index=29&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) The Group had no significant events after June 30, 2025, up to the date of approval of the financial statements - The Group had no significant events after June 30, 2025, and up to the date of approval of the financial statements[90](index=90&type=chunk) [Publication of Interim Results Announcement and 2025 Interim Report on HKEX and Company Websites](index=30&type=section&id=%E4%BA%8E%E8%81%94%E4%BA%A4%E6%89%80%E7%BD%91%E7%AB%99%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%BD%91%E7%AB%99%E7%99%BB%E8%BD%BD%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%85%AC%E5%91%8A%E5%8F%8A%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This interim results announcement has been published on the HKEX website and the company's website, and the 2025 Interim Report, containing all information required by the Listing Rules, will be published on the aforementioned websites in due course - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.edensoft.com.cn)[91](index=91&type=chunk) - The 2025 Interim Report, containing all information required by the Listing Rules, will be published on the aforementioned websites in due course[91](index=91&type=chunk) [Board of Directors](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A) As of the date of this announcement, the Board of Directors includes Executive Directors Ms. Ding Xinyun (Chairman and Chief Executive Officer) and Ms. Li Yi, and Independent Non-executive Directors Mr. Leung Chu Tung, Ms. Zhu Weili, and Mr. Cai Jiong - The Board of Directors includes Executive Directors Ms. Ding Xinyun (Chairman and Chief Executive Officer) and Ms. Li Yi[93](index=93&type=chunk) - Independent Non-executive Directors include Mr. Leung Chu Tung, Ms. Zhu Weili, and Mr. Cai Jiong[93](index=93&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 EEKA Fashion Holdings Limited 贏家時尚控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：3709） 截至二零二五年六月三十日止六個月 中期業績公告 概要 1 • 截至二零二五年六月三十日止六個月的收益為人民幣3,104.02百萬元，較截 至二零二四年六月三十日止六個月的人民幣3,306.37百萬元減少6.12% 或人 民幣202.35百萬元。 • 截至二零二五年六月三十日止六個月的純利為人民幣288.99百萬元，較截至 二零二四年六月三十日止六個月的人民幣282.85百萬元增加2.17%或人民幣 6.14百萬元。 • 截至二零二五年六月三十日止六個月，經營活動產生的現金流入淨額為人 民幣895.86百萬元（截至二零二四年六月三十日止六個月：人民幣451.83百 萬元）。 • 截至二零二五年六月三十日止六個月的每股基本盈利為人民幣0.43元（截 至二零二四年六月三十 ...