[Supplemental Announcement to the 2024 Annual Report](index=1&type=section&id=Supplemental%20Announcement%20Regarding%20the%20Annual%20Report%20for%20the%20Year%20Ended%20December%2031%2C%202024) This announcement provides supplementary details to the 2024 Annual Report, focusing on the share option scheme and board composition [Supplemental Details of Share Option Scheme](index=1&type=section&id=Supplemental%20Details%20of%20Share%20Option%20Scheme) This section details the specific terms, conditions, and procedures of the company's share option scheme, including offer, exercise, and validity [Consideration Payable and Offer Period for Share Options](index=1&type=section&id=%28H%29%20Consideration%20Payable%20and%20Offer%20Period%20for%20Share%20Options) - Eligible persons may accept the offer of granted share options within **28 days** from the offer date[2](index=2&type=chunk) - The consideration for share options is a non-refundable remittance of **HK$1.0**[2](index=2&type=chunk) - Offers not accepted by the acceptance date will be deemed irrevocably rejected[2](index=2&type=chunk) [Share Option Exercise Conditions and Procedures](index=2&type=section&id=Share%20Option%20Exercise%20Conditions%20and%20Procedures) - Share options must be exercised by the grantee via written notice to the company within the option period, specifying the number of shares to be exercised[3](index=3&type=chunk) - Each exercise notice must be accompanied by the full remittance of the total subscription price for the shares involved[3](index=3&type=chunk) - The exercise of share options may be subject to a vesting schedule determined at the sole discretion of the Board[4](index=4&type=chunk) - In case of grantee's death or permanent disability, their legal representative may exercise unexercised options within **12 months** of death/disability[4](index=4&type=chunk) - Upon termination of employment (except in specific cases), unexercised options will lapse unless otherwise decided by the Board[4](index=4&type=chunk) - In the event of a general offer or scheme of arrangement, grantees are entitled to exercise unexercised options within a specified period[4](index=4&type=chunk) - During corporate restructuring or merger, grantees may exercise all or part of their options within a specific period[6](index=6&type=chunk) - In case of voluntary liquidation, grantees may exercise options up to **two business days** before the shareholders' meeting[6](index=6&type=chunk) [Term of Share Option Scheme](index=3&type=section&id=%28J%29%20Term%20of%20Share%20Option%20Scheme) - The share option scheme is valid for **10 years** from March 31, 2023[5](index=5&type=chunk) - The scheme will expire on March 30, 2033, with no further options granted or offered thereafter[5](index=5&type=chunk) - All options granted before expiry and unexercised at that time remain valid and exercisable under the scheme's terms[5](index=5&type=chunk) [Other Supplemental Information](index=4&type=section&id=Other%20Supplemental%20Information) This section confirms the supplementary nature of this announcement to the 2024 Annual Report and lists the Board of Directors as of the announcement date - The additional information above supplements the 2024 Annual Report and should be read in conjunction with it, without affecting other information contained therein[7](index=7&type=chunk) - The Board of Directors includes Executive Directors Ms. Zhang Yuqiu (Chairperson), Mr. Shan Yuzhu, Mr. Li Xiquan, Mr. Li Peng; and Independent Non-executive Directors Dr. Lai King Ran, Dr. Song Xiaofeng, Mr. Leung Tsz Wing[8](index=8&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 的 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。 C&D Property Management Group Co., Ltd 建發物業管理集團有限公司 （於英屬處女群島註冊成立的有限公司） （股份代號：2156） 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 摘 要 – 1 – 1. 本集團本期收入約為人民幣1,822.9百萬元，較上年同期約人民幣1,602.4 百 萬 元 增 長 約13.8%。 2. 本 集 團 本 期 毛 利 約 為 人 民 幣458.7百 萬 元，較 上 年 同 期 約 人 民 幣403.2 百 萬 元 增 加 約13.8%。本 期 毛 利 率 約 為25.2%，較 上 年 同 期 毛 利 率 約 為 ...

截至2025年6月30日止六個月 中期業績公告 精技集團有限公司*（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附屬公 司（以下統稱「本集團」）截至2025年6月30日止六個月之中期業績及未經審核中 期簡明綜合財務報表，連同截至2024年6月30日止六個月之比較數字。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部份內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 Kinergy Corporation Ltd. 精技集團有限公司 * （於新加坡註冊成立的有限公司） （股份代號：3302） | | 截至以下日期止六個月 | | | | | --- | --- | --- | --- | --- | | | 2025年 | 2024年 | | 變動 | | | 6月30日 | 6月30日 | 變動 | 百分比 | | | （未經審核） | （未經審核） | | | | | （千新加坡元） | （千新加坡元） | （千新加坡元） | | | 收益 | 50,280 | 51,523 | (1,243 ...

[Announcement Summary](index=2&type=section&id=%E5%85%AC%E5%91%8A%E6%A6%82%E8%A6%81) The Group reported H1 2025 revenue and gross profit growth, enhancing profitability, but no interim dividend is recommended [Financial Performance Summary](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A6%81) The Group's H1 2025 unaudited results show increased revenue, gross profit, and profitability, with no interim dividend recommended 2025 H1 Key Financial Indicators | Indicator | 2025 H1 (thousand RMB) | YoY Growth | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | :--- | | Revenue | 129,323 | Approx. 7% | 121,183 | | Gross Profit | 76,787 | Approx. 12% | 68,837 | | Gross Profit Margin | Approx. 59% | 2 percentage points | Approx. 57% | | Profit | 42,985 | Approx. 12% | 38,317 | | Profit attributable to owners of the parent company | 44,726 | Approx. 8% | 41,483 | | Basic Earnings Per Share | 6.39 cents | - | 5.93 cents | - The Board does not recommend an interim dividend for the six months ended June 30, 2025[5](index=5&type=chunk) [Interim Financial Statements](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group's H1 2025 revenue, gross profit, and period profit grew, with basic EPS reaching **6.39 cents** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) | Indicator | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Revenue | 129,323 | 121,183 | | Cost of Sales | (52,536) | (52,346) | | Gross Profit | 76,787 | 68,837 | | Other Income | 1,056 | 1,332 | | Selling and Distribution Expenses | (7,402) | (7,624) | | Administrative Expenses and Others | (15,990) | (16,310) | | Reversal of Credit Impairment Losses | 612 | 1,177 | | Finance Costs | (78) | (74) | | Profit Before Tax | 54,985 | 47,338 | | Taxation | (12,000) | (9,021) | | Profit for the Period | 42,985 | 38,317 | | Attributable to equity holders of the Company | 44,726 | 41,483 | | Attributable to non-controlling interests | (1,741) | (3,166) | | Basic Earnings Per Share (RMB cents) | 6.39 | 5.93 | [Condensed Consolidated Statement of Financial Position](index=4&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, net current assets and total equity decreased, mainly from reduced trade and other payables Condensed Consolidated Statement of Financial Position (Unaudited) | Indicator | June 30, 2025 (thousand RMB) | Dec 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Total | 30,862 | 31,950 | | **Current Assets** | | | | Trade Receivables | 52,557 | 40,239 | | Cash and Cash Equivalents | 288,638 | 358,735 | | Total | 344,027 | 405,671 | | **Current Liabilities** | | | | Trade Payables | 8,028 | 14,382 | | Other Payables | 12,307 | 49,817 | | Contract Liabilities | 161,649 | 138,669 | | Total | 194,318 | 221,724 | | Net Current Assets | 149,709 | 183,947 | | Total Assets Less Current Liabilities | 180,571 | 215,897 | | **Non-current Liabilities** | | | | Lease Liabilities | 2,295 | 3,106 | | Net Assets | 178,276 | 212,791 | | **Equity** | | | | Total equity attributable to equity holders of the Company | 149,933 | 183,460 | | Total Equity | 178,276 | 212,791 | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, total equity attributable to shareholders decreased, primarily due to a reduction in retained profits Condensed Consolidated Statement of Changes in Equity (Unaudited) | Indicator | June 30, 2025 (thousand RMB) | Jan 1, 2024 (thousand RMB) | | :--- | :--- | :--- | | Issued Share Capital | 70,000 | 70,000 | | Capital Reserve | (21,257) | (20,004) | | Statutory Surplus Reserve | 35,000 | 35,000 | | Investment Revaluation Reserve | (188) | (148) | | Retained Profits | 66,378 | 74,489 | | Subtotal of equity attributable to equity holders of the Company | 149,933 | 159,337 | | Non-controlling interests | 28,343 | 26,559 | | Total Equity | 178,276 | 185,896 | | Changes during the period (2025 H1) | (34,515) | - | | Changes during the period (2024 H1) | - | 38,317 | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) H1 2025 net cash from operations decreased, with significant financing outflows, reducing period-end cash and equivalents Condensed Consolidated Statement of Cash Flows (Unaudited) | Indicator | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | | :--- | :--- | :--- | | Net cash flows from operating activities | 7,504 | 36,204 | | Net cash flows from (used in) investing activities | 288 | (4) | | Net cash flows used in financing activities | (77,889) | — | | Change in cash and cash equivalents | (70,097) | 36,200 | | Cash and cash equivalents at beginning of period | 358,735 | 299,686 | | Cash and cash equivalents at end of period | 288,638 | 335,886 | [Notes to the 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) [Basis of Presentation and Principal Accounting Policies](index=8&type=section&id=%E5%91%88%E5%A0%B1%E5%9F%BA%E6%BA%96%E5%8F%8A%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) Unaudited results adhere to HKFRSs, Hong Kong Companies Ordinance, and Listing Rules, using historical cost and consistent policies -

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承 擔 任 何 責 任。 截至二零二五年六月三十日止六個月的 未經審核中期業績公佈 浩 森 金 融 科 技 集 團 有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」）欣 然 宣 佈 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，連 同 二 零 二 四 年 同 期 的 比 較 數 據 如 下： 未經審核簡明綜合全面收入表 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 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ...

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。 Design Capital Limited 設計都會有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （未 經 審 核）（未 經 審 核） 附 註 千新加坡元 千新加坡元 （股 份 代 號：1545） 截 至2025年6月30日止六個月 中期業績公告 | 財務撮要 | | | | | --- | --- | --- | --- | | | 截至以下日期止六個月 | | | | | 2025年 | 2024年 | | | | 6月30日 | 6月30日 | 變 動 | | | 千新加坡元 | 千新加坡元 | % | | 收 益 | 23,202 | 31,459 | -26.2% | | 毛 利 | 7,332 | 9,180 | -20.1% | | 期 內（虧 損）╱溢 利 | (2,263) | 239 | N ...

[Financial Summary](index=1&type=section&id=2025%20First%20Half%20Financial%20Summary) This section provides an overview of the company's financial performance for the first half of 2025, highlighting key financial indicators and dividend decisions [Interim Results Overview](index=1&type=section&id=Interim%20Results) During the reporting period, the company's revenue, gross profit, profit for the period, and basic earnings per share all decreased year-on-year, and the board resolved not to declare an interim dividend Key Financial Performance Indicators | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 332.4 | 370.2 | -10.2% | | Gross Profit | 243.4 | 268.7 | -9.4% | | Profit for the Period | 15.3 | 33.4 | -54.2% | | Basic EPS | RMB 1.62 cents | RMB 3.53 cents | -54.1% | - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 (2024 H1: nil)[4](index=4&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the interim condensed consolidated financial statements, including the statement of profit or loss, other comprehensive income, and financial position [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) In the first half of 2025, the company's revenue decreased by 10.2% year-on-year, and net profit decreased by 54.2%, but exchange differences turned from loss to gain, partially offsetting the decline in operating performance Key Financial Performance Indicators | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 332,364 | 370,189 | -10.2% | | Cost of Sales | (88,975) | (101,503) | -12.3% | | Gross Profit | 243,389 | 268,686 | -9.4% | | Profit Before Tax | 17,803 | 40,333 | -55.8% | | Profit for the Period | 15,322 | 33,409 | -54.2% | | Exchange Differences (Other Comprehensive Income) | 13,689 | (2,523) | N/A | - Basic earnings per share attributable to ordinary equity holders of the parent was **RMB 1.62 cents**, compared to **RMB 3.53 cents** in the same period last year[5](index=5&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and total equity both increased, net current assets significantly rose, but non-current assets slightly decreased, with new short-term borrowings added Key Financial Performance Indicators | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 216,385 | 218,226 | -0.8% | | Total Current Assets | 332,943 | 287,331 | +15.9% | | Total Assets | 549,328 | 505,557 | +8.7% | | Total Current Liabilities | 82,748 | 69,139 | +19.7% | | Net Current Assets | 250,195 | 218,192 | +14.7% | | Total Equity | 423,107 | 394,096 | +7.4% | - New interest-bearing loans of **RMB 20,000 thousand** were added, compared to nil as of December 31, 2024[6](index=6&type=chunk) [Notes to the Interim Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the interim condensed consolidated financial statements, covering accounting policies, segment information, and key financial items [Basis of Preparation and Changes in Accounting Policies](index=5&type=section&id=1.%20Basis%20of%20Preparation%20and%20Changes%20in%20the%20Group's%20Accounting%20Policies) The financial statements are prepared in accordance with HKAS 34 and presented in RMB; revised HKFRS accounting standards were adopted for the first time this period, but had no material impact due to the Group's currency convertibility - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting and presented in RMB[8](index=8&type=chunk) - The Group first adopted the revised HKAS 21 'Lack of Exchangeability', but as the currencies used for transactions and functional currencies are convertible, the revision had no impact on the financial information[9](index=9&type=chunk)[10](index=10&type=chunk) [Operating Segment Information](index=6&type=section&id=2.%20Operating%20Segment%20Information) The Group primarily operates a single business segment: manufacturing and selling nutritional supplements and packaged health foods in China, Australia, and New Zealand, with revenue and non-current assets concentrated in these regions - The Group operates a single reportable segment, which is the manufacturing and sale of nutritional supplements and the sale of packaged health foods in China, Australia, and New Zealand[11](index=11&type=chunk) Revenue Analysis by Major Market | Region | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 273,002 | 304,902 | | New Zealand | 52,571 | 52,862 | | Australia | 437 | 3,463 | | Other Countries | 6,354 | 8,962 | | **Total** | **332,364** | **370,189** | Geographical Distribution of Non-current Assets | Region | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 134,373 | 138,178 | | New Zealand | 37,445 | 37,564 | | Australia | 179 | 173 | | **Total** | **171,997** | **175,915** | - No revenue from transactions with a single external customer accounted for **10% or more** of the Group's revenue[15](index=15&type=chunk) [Revenue, Other Income and Gains](index=7&type=section&id=3.%20Revenue,%20Other%20Income%20and%20Gains) Revenue primarily derives from goods sales, recognized upon transfer; other income and gains include bank interest, government grants, reversal of trade receivables impairment, and net exchange differences - All revenue is derived from the sale of goods, recognized at the point in time when goods or services are transferred[17](index=17&type=chunk) Analysis of Other Income and Gains | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 798 | 572 | | Government Grants | 628 | 573 | | Reversal of Impairment Loss on Trade Receivables | 163 | – | | Net Exchange Differences | 108 | – | | Rental Income | 1,899 | 2,089 | | Others | 223 | 258 | | **Total** | **3,819** | **3,492** | [Profit Before Tax](index=8&type=section&id=4.%20Profit%20Before%20Tax) Profit before tax is derived after deducting costs of inventories sold, staff costs, depreciation, amortization, lease payments, R&D expenses, and includes reversal of trade receivables impairment, net exchange differences, and government grants Key Deductions/(Additions) to Profit Before Tax | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 88,975 | 101,503 | | Staff Costs | 46,712 | 46,473 | | Depreciation of Property, Plant and Equipment | 4,325 | 4,446 | | Research and Development Expenses | 440 | 416 | | Reversal of/(Impairment Loss on) Trade Receivables | (163) | 837 | | Net Exchange Differences | (108) | 4,737 | | Government Grants | (628) | (573) | [Income Tax Expense](index=8&type=section&id=5.%20Income%20Tax%20Expense) In the first half of 2025, income tax expense significantly decreased year-on-year, mainly due to lower pre-tax profit of the New Zealand subsidiary; income tax is calculated at statutory rates of 25% for China, 28% for New Zealand, and 30% for Australia Analysis of Income Tax Expense | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Current — New Zealand | 2,318 | 8,218 | | Deferred | 163 | (1,294) | | **Total** | **2,481** | **6,924** | - The decrease in income tax expense was mainly due to a reduction in the pre-tax profit of Good Health Products Limited, a New Zealand subsidiary of the company, during the reporting period compared to the same period last year[37](index=37&type=chunk) - The income tax rate for Chinese subsidiaries is **25%**, New Zealand **28%**, and Australia **30%**[20](index=20&type=chunk) [Dividends](index=9&type=section&id=6.%20Dividends) The Board resolved not to declare any interim dividend for the reporting period and did not recommend any dividend for the year 2024 - The Board has resolved not to declare any interim dividend for the reporting period (for the six months ended June 30, 2024: nil)[21](index=21&type=chunk) - The Board did not recommend the declaration of any dividend for the year ended December 31, 2024[21](index=21&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=9&type=section&id=7.%20Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) Basic earnings per share is calculated based on profit for the period attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares outstanding during the reporting period, with no potential dilutive ordinary shares - Basic earnings per share is calculated based on the profit for the period attributable to ordinary equity holders of the parent and the weighted average number of **946,298,370 ordinary shares** outstanding during the reporting period[22](index=22&type=chunk) - For the periods ended June 30, 2025 and 2024, the Group had no potential dilutive ordinary shares outstanding[23](index=23&type=chunk) [Property, Plant and Equipment](index=9&type=section&id=8.%20Property,%20Plant%20and%20Equipment) No impairment losses on property, plant and equipment were recognized during the reporting period, and additions significantly decreased year-on-year - No impairment losses on property, plant and equipment were recognized for the reporting period and the same period last year[24](index=24&type=chunk) - Additions to property, plant and equipment during the reporting period amounted to **RMB 253,000** (for the six months ended June 30, 2024: **RMB 9,028,000**)[24](index=24&type=chunk) [Inventories](index=9&type=section&id=9.%20Inventories) As of June 30, 2025, total inventories decreased by 5.5% year-on-year, mainly due to reduced raw materials to meet e-commerce channel development and optimize inventory management Composition of Inventories | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw Materials | 7,032 | 18,332 | | Work in Progress | 3,175 | 1,523 | | Finished Goods | 102,057 | 99,144 | | Purchased Goods | 203 | 86 | | **Total** | **112,467** | **119,085** | [Trade Receivables](index=10&type=section&id=10.%20Trade%20Receivables) As of June 30, 2025, net trade receivables significantly increased by 49.2% year-on-year, mainly due to increased sales revenue from cross-border e-commerce channels and higher e-commerce platform receivables Carrying Amount of Trade Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 65,990 | 45,429 | | Impairment | (3,508) | (3,527) | | **Carrying Amount** | **62,482** | **41,902** | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 44,046 | 38,962 | | 1 to 3 months | 17,834 | 2,543 | | 3 months to 1 year | 429 | 303 | | Over 1 year | 173 | 94 | | **Total** | **62,482** | **41,902** | [Trade Payables](index=10&type=section&id=11.%20Trade%20Payables) As of June 30, 2025, trade payables increased by 39.8% year-on-year, mainly due to continuous growth in cross-border e-commerce sales and increased raw material procurement to boost core product output Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 14,912 | 11,310 | | 1 to 3 months | 1,836 | 124 | | 3 months to 1 year | 360 | 556 | | Over 1 year | 760 | 760 | | **Total** | **17,868** | **12,750** | - Trade payables are interest-free and generally settled within **30 to 90 days**[27](index=27&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) This section offers management's perspective on the Group's business performance, financial position, and operational highlights for the reporting period [Business Review](index=11&type=section&id=Business%20Review) The Group's H1 performance was significantly impacted by slow global economic growth, uncertain trade policies, and intensified industry competition, leading to notable declines in revenue and profit; gross profit margin remained stable, but selling and distribution expenses as a percentage of sales revenue increased; the Group continues to focus on its 'Good Health' brand cross-border e-commerce business, enhancing market influence through diversified promotions and new product launches - In the first half of 2025, the Group's performance declined due to slow global economic growth, uncertain trade policies, and intensified industry competition, with revenue decreasing by **10.2%** and profit by **54.2%**[28](index=28&type=chunk) - Gross profit margin remained stable at approximately **73.2%**, but selling and distribution expenses as a percentage of sales revenue increased by approximately **7.1%** to **57.4%**[28](index=28&type=chunk) - The Group continues to focus on its 'Good Health' brand cross-border e-commerce business, building traffic through Douyin influencer promotions, off-site promotions, self-broadcasting, and short video combinations, while expanding sales channels such as distributors, pharmacies, duty-free shops, and e-commerce platforms[29](index=29&type=chunk) - For the six months ended June 30, 2025, the Group launched a total of **11 new products**, including **9** from the 'Good Health' series and **2** from the 'Living Nature' series[30](index=30&type=chunk) [Performance Analysis](index=12&type=section&id=Performance) This section provides a detailed analysis of changes in financial indicators during the reporting period and their main causes, including decreased revenue, stable gross profit, increased selling and distribution expenses, and reduced income tax expense [Revenue](index=12&type=section&id=Revenue) In the first half of 2025, revenue decreased by 10.2% year-on-year to RMB 332.4 million, primarily due to a decline in income from infant and child products on domestic distributor platforms - Revenue for the first half of 2025 was approximately **RMB 332.4 million**, a decrease of approximately **RMB 37.8 million** or **10.2%** compared to the first half of 2024[32](index=32&type=chunk) - The decrease in revenue was mainly due to a decline in income generated from infant and child products on domestic distributor platforms during the reporting period[32](index=32&type=chunk) [Gross Profit](index=12&type=section&id=Gross%20Profit) In the first half of 2025, gross profit decreased by 9.4% year-on-year to RMB 243.4 million, but the gross profit margin remained stable at 73.2% - Gross profit for the first half of 2025 was approximately **RMB 243.4 million**, a decrease of approximately **RMB 25.3 million** or **9.4%** compared to the first half of 2024[33](index=33&type=chunk) - The gross profit margin for the first half of 2025 was approximately **73.2%**, remaining stable compared to approximately **72.6%** in the first half of 2024[33](index=33&type=chunk) [Other Income and Gains](index=12&type=section&id=Other%20Income%20and%20Gains) In the first half of 2025, other income and gains increased by approximately RMB 0.3 million year-on-year to RMB 3.8 million, mainly driven by higher bank interest income - Other income and gains for the first half of 2025 were approximately **RMB 3.8 million**, an increase of approximately **RMB 0.3 million** compared to approximately **RMB 3.5 million** in the first half of 2024[34](index=34&type=chunk) - The increase was mainly due to higher bank interest income[34](index=34&type=chunk) [Selling and Distribution Expenses](index=13&type=section&id=Selling%20and%20Distribution%20Expenses) In the first half of 2025, selling and distribution expenses increased by 2.4% year-on-year to RMB 190.7 million, rising to 57.4% of sales revenue, mainly due to increased promotional investment in cross-border e-commerce channels and higher personnel costs from staff expansion - Selling and distribution expenses for the first half of 2025 were approximately **RMB 190.7 million**, an increase of approximately **RMB 4.4 million** or **2.4%** compared to the first half of 2024[35](index=35&type=chunk) - Selling and distribution expenses as a percentage of sales revenue for the first half of 2025 were approximately **57.4%**, an increase of **7.1%** compared to approximately **50.3%** in the first half of 2024[35](index=35&type=chunk) - The increase in expenses was mainly due to the Group's continued vigorous development of the 'Good Health' brand's cross-border e-commerce business in the Chinese market, increased investment in sales promotion resources, and expanded personnel in the cross-border e-commerce department, leading to higher labor costs[35](index=35&type=chunk) [Administrative Expenses](index=13&type=section&id=Administrative%20Expenses) In the first half of 2025, administrative expenses decreased by 2.4% year-on-year to RMB 36.5 million, with its proportion to sales revenue remaining largely stable - Administrative expenses for the first half of 2025 were approximately **RMB 36.5 million**, a decrease of approximately **RMB 0.9 million** or **2.4%** compared to approximately **RMB 37.4 million** in the first half of 2024[36](index=36&type=chunk) - Administrative expenses as a percentage of sales revenue remained largely stable[36](index=36&type=chunk) [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) In the first half of 2025, income tax expense decreased by RMB 4.4 million year-on-year to RMB 2.5 million, mainly due to reduced pre-tax profit of the New Zealand subsidiary - Income tax expense for the first half of 2025 was approximately **RMB 2.5 million**, a decrease of approximately **RMB 4.4 million** compared to approximately **RMB 6.9 million** in the first half of 2024[37](index=37&type=chunk) - The decrease in income tax expense was mainly due to a reduction in the pre-tax profit of Good Health Products Limited, a New Zealand subsidiary of the company, during the reporting period compared to the same period last year[37](index=37&type=chunk) [Overall Performance Summary](index=14&type=section&id=Overall%20Performance%20Summary) Considering all factors, the Group's profit margin for the first half of 2025 decreased from 9.0% in the first half of 2024 to 4.6%, mainly due to lower revenue and increased selling and distribution expenses as a percentage of sales - The profit margin for the first half of 2025 was approximately **4.6%**, a decrease of approximately **4.4%** compared to approximately **9.0%** in the first half of 2024[38](index=38&type=chunk) - The decrease in profit margin was mainly due to reduced revenue and an increase in selling and distribution expenses as a percentage of sales revenue[38](index=38&type=chunk) [Other Comprehensive Income](index=14&type=section&id=Other%20Comprehensive%20Income) In the first half of 2025, the Group recorded an exchange gain of approximately RMB 13.7 million, compared to an exchange loss in the same period last year, mainly due to a significant appreciation of the New Zealand dollar against the RMB - An exchange gain of approximately **RMB 13.7 million** was recorded in the first half of 2025, compared to an exchange loss of approximately **RMB 2.5 million** in the first half of 2024[39](index=39&type=chunk) - This year's gain was mainly due to a significant appreciation of the New Zealand dollar against the RMB[39](index=39&type=chunk) [Liquidity and Capital Resources](index=14&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the Group's cash and cash equivalents increased, mainly due to net cash inflow from financing activities and exchange rate effects; inventories decreased, while trade receivables and payables both grew, and new short-term borrowings were added [Cash Flow](index=14&type=section&id=Cash%20Flow) As of June 30, 2025, cash and cash equivalents increased by approximately RMB 31.6 million compared to the end of 2024, primarily contributed by net cash inflow from operating activities, net cash inflow from financing activities, and exchange rate effects - As of June 30, 2025, cash and cash equivalents increased by approximately **RMB 31.6 million** compared to December 31, 2024[40](index=40&type=chunk) - Net cash inflow from operating activities was approximately **RMB 9.5 million**; net cash outflow from investing activities was approximately **RMB 0.03 million**; net cash inflow from financing activities was approximately **RMB 17.7 million**; and cash inflow from exchange rate effects was **RMB 4.4 million**[40](index=40&type=chunk) [Inventories](index=14&type=section&id=Inventories) As of June 30, 2025, inventories decreased by approximately RMB 6.6 million (5.5% decline), mainly due to increased raw material usage to meet e-commerce channel sales demand and enhanced raw material procurement management - As of June 30, 2025, the Group's inventories were approximately **RMB 112.5 million** (December 31, 2024: approximately **RMB 119.1 million**), a decrease of approximately **RMB 6.6 million** or **5.5%**[41](index=41&type=chunk) - The decrease in inventories was mainly due to the vigorous development of the 'Good Health' e-commerce channel, leading to increased raw material usage to meet H2 e-commerce sales demand, coupled with strengthened raw material procurement management[41](index=41&type=chunk) [Trade Receivables](index=15&type=section&id=Trade%20Receivables) As of June 30, 2025, trade receivables increased by approximately RMB 20.6 million (49.2% growth), mainly due to increased sales revenue from cross-border e-commerce channels, particularly higher e-commerce platform receivables - As of June 30, 2025, the Group's trade receivables were approximately **RMB 62.5 million** (December 31, 2024: approximately **RMB 41.9 million**), an increase of approximately **RMB 20.6 million** or **49.2%**[42](index=42&type=chunk) - The increase in trade receivables was mainly due to increased sales revenue from cross-border e-commerce channels, particularly the growth in receivables from e-commerce platforms[42](index=42&type=chunk) [Trade Payables](index=15&type=section&id=Trade%20Payables) As of June 30, 2025, trade payables increased by approximately RMB 5.1 million (39.8% growth), mainly due to continuous growth in cross-border e-commerce sales and increased raw material procurement to boost core product output - As of June 30, 2025, the Group's trade payables were approximately **RMB 17.9 million** (December 31, 2024: approximately **RMB 12.8 million**), an increase of approximately **RMB 5.1 million** or **39.8%**[43](index=43&type=chunk) - The increase in trade payables was mainly due to the continuous growth in cross-border e-commerce sales, leading to increased procurement of raw materials required for production to meet market demand and boost output of certain core products[43](index=43&type=chunk) [Exchange Rate Risk](index=15&type=section&id=Exchange%20Rate%20Risk) The Group manages foreign exchange risk through regular review and supervision; the Board considers the risk exposure controllable, and no hedging or alternative policies were implemented during the reporting period - The Group's domestic business transactions are primarily conducted in RMB, while overseas business transactions are mainly conducted in New Zealand Dollars, US Dollars, and Australian Dollars[44](index=44&type=chunk) - The Group manages its foreign exchange risk by regularly reviewing and monitoring its foreign exchange exposure, and the Directors consider the risk exposure to be controllable[44](index=44&type=chunk) - No hedging or other alternative policies were implemented to address such risks during the reporting period[44](index=44&type=chunk) [Borrowings and Pledged Assets](index=15&type=section&id=Borrowings%20and%20Pledged%20Assets) As of June 30, 2025, the Group added new borrowings of RMB 20.0 million at an annual interest rate of 2.6%, pledging approximately RMB 1.5 million in property as collateral - As of June 30, 2025, the Group's borrowings amounted to **RMB 20.0 million** at an annual interest rate of **2.6%** (December 31, 2024: nil)[45](index=45&type=chunk) - As of June 30, 2025, the Group pledged properties with a carrying amount of approximately **RMB 1.5 million** to secure the aforementioned borrowings[45](index=45&type=chunk) [Capital Expenditure](index=15&type=section&id=Capital%20Expenditure) In the first half of 2025, capital expenditure significantly decreased to RMB 0.3 million, primarily for fixed asset investments - In the first half of 2025, the Group invested approximately **RMB 0.3 million** (2024 H1: approximately **RMB 5.8 million**) in fixed assets[46](index=46&type=chunk) [Capital Commitments and Contingent Liabilities](index=16&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities (December 31, 2024: nil)[47](index=47&type=chunk) [Outlook](index=16&type=section&id=Outlook) This section outlines the macroeconomic environment and the Group's strategic priorities and operational focus for the upcoming period [Macroeconomic Outlook](index=16&type=section&id=Macroeconomic%20Outlook) In the first half of 2025, the global economy experienced slow growth, uncertain trade policies, and intensified industry competition; this trend is expected to continue in the second half, with China's economy facing structural breakthroughs and domestic demand challenges, but policies like supply-side reform, AI+ technology manufacturing, and expanded opening-up will inject vitality - In the first half of 2025, the global economy faced a complex situation of escalating risks and uneven recovery, with slower global economic growth and institutions like the World Bank and IMF generally lowering their full-year growth forecasts[48](index=48&type=chunk) - China's economy achieved better-than-expected growth amidst internal and external pressures, but still faces unresolved deflationary pressure, increased employment pressure, and insufficient consumer confidence[48](index=48&type=chunk) - In the second half of 2025, the global economic situation is expected to generally continue the first half's trend, and China's economic development will face challenges of structural breakthroughs and domestic demand stabilization[49](index=49&type=chunk) - The vigorous promotion and implementation of policies such as Supply-Side Reform 2.0, AI+ technology manufacturing, stabilizing employment and expanding domestic demand, and expanding high-level opening-up will inject vitality into China's high-quality economic development[49](index=49&type=chunk) [Group Strategy and Operational Focus](index=17&type=section&id=Group%20Strategy%20and%20Operational%20Focus) In the second half of the year, the Group will continue to focus on its年初-established operational management objectives, including vigorously developing e-commerce platforms, strengthening supply chain management, and optimizing promotional expenses to enhance overall profitability [Human Resources Management](index=17&type=section&id=Human%20Resources%20Management) The Group enhances employee capabilities in nutritional supplements, maternal and infant nutrition, and cross-border e-commerce operations and promotion through regular comprehensive training and corporate culture education, while offering competitive compensation and benefits - As of June 30, 2025, the Group employed **481 staff** (including **350** in China, **128** in New Zealand, and **3** in Australia)[50](index=50&type=chunk) - Total salaries and related costs for the six months ended June 30, 2025, were approximately **RMB 51.5 million** (2024 H1: approximately **RMB 51.7 million**)[50](index=50&type=chunk) - The Group enhances employee capabilities in nutritional supplements, maternal and infant nutrition, and cross-border e-commerce operations and promotion through regular comprehensive training and corporate culture education[50](index=50&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=17&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 listed securities, nor did they hold any treasury shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities[51](index=51&type=chunk) - During the reporting period, the Group did not hold any treasury shares[51](index=51&type=chunk) [Core Business Objectives](index=17&type=section&id=Core%20Business%20Objectives) The Group will focus on developing e-commerce platforms to expand sales and brand influence; strengthen supply chain management to enhance production capacity and operational efficiency; and optimize promotional expenses to improve overall profitability - Vigorously develop e-commerce platforms to continuously expand sales scale: optimize innovative promotion strategies to increase brand user numbers; for some core products, strive to achieve the goal of being the top seller in their category on e-commerce platforms for the full year, expanding brand influence; accelerate new product R&D[52](index=52&type=chunk) - Strengthen supply chain management, develop high-quality suppliers, enhance production capacity, timely meet customer demand, and strive to shorten production and procurement cycles to improve operational efficiency[52](index=52&type=chunk) - Optimize promotional expenses to enhance overall profitability[52](index=52&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) This section provides additional corporate governance and administrative information, including compliance, post-reporting events, and board details [Standard Code for Securities Transactions](index=18&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company has adopted the Standard Code for Securities Transactions as set out in Appendix C3 of the Listing Rules, and all directors and supervisors confirmed compliance during the reporting period and up to the announcement date - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[53](index=53&type=chunk) - The company has made specific enquiries with the Directors and Supervisors, and all Directors and Supervisors have confirmed that they have complied with the Standard Code for the six months ended June 30, 2025, and up to the date of this announcement[53](index=53&type=chunk) [Corporate Governance Code](index=18&type=section&id=Corporate%20Governance%20Code) The Board believes the company has complied with Part 2 of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the reporting period and up to the announcement date - The Directors believe that the company has complied with Part 2 of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules for the six months ended June 30, 2025, and up to the date of this announcement[54](index=54&type=chunk) [Events After the Reporting Period](index=18&type=section&id=Events%20After%20the%20Reporting%20Period%20for%20the%20Six%20Months%20Ended%20June%2030,%202025) As of the announcement date, no significant events affecting the Group occurred after the reporting period - No significant events affecting the Group occurred after the six months ended June 30, 2025, and up to the date of this announcement[55](index=55&type=chunk) [Interim Dividends](index=18&type=section&id=Interim%20Dividends) The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[56](index=56&type=chunk) [Review of Interim Results](index=18&type=section&id=Review%20of%20Interim%20Results) The Group's unaudited condensed consolidated interim results have been reviewed by the company's Audit Committee, comprising three independent non-executive directors, responsible for reviewing and monitoring financial reporting, internal controls, and risk management systems - The Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, have been reviewed by the company's Audit Committee[57](index=57&type=chunk) - The Audit Committee comprises three independent non-executive Directors, Mr. Yu Bo, Mr. Ye Bangyin, and Mr. Cheng Jianming, with Mr. Ye Bangyin serving as the Chairman of the Audit Committee[57](index=57&type=chunk) - The primary responsibilities of the Audit Committee are to review and monitor the company's financial reporting, internal control, and risk management systems[57](index=57&type=chunk) [Publication of Interim Report](index=19&type=section&id=Publication%20of%20Interim%20Report) This interim results announcement has been published on the HKEX and company websites, and the full interim report will be dispatched to shareholders and published online in due course - This interim results announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.zs-united.com)[58](index=58&type=chunk) - The Group's interim report for the six months ended June 30, 2025, containing all relevant information required by the HKEX Listing Rules, will be dispatched to the company's shareholders (upon request) and published on the aforementioned websites in due course[58](index=58&type=chunk) [Board Information](index=19&type=section&id=By%20Order%20of%20the%20Board) The announcement is issued by Mr. Gui Pinghu, Chairman of the Board, on behalf of the Board, and lists the executive and independent non-executive directors as of the announcement date - The announcement is issued by Mr. Gui Pinghu, Chairman of the Board of Nanjing ZhongSheng United Co., Ltd., on behalf of the Board[59](index=59&type=chunk) - As of the date of this announcement, the executive Directors are Mr. Gui Pinghu, Ms. Zhang Yuan, and Ms. Zhu Feifei; and the independent non-executive Directors are Mr. Yu Bo, Mr. Ye Bangyin, and Mr. Cheng Jianming[60](index=60&type=chunk)

Company Information and Financial Summary [Company Overview](index=1&type=section&id=Company%20Overview) Zhengye International Holdings Company Limited announced its interim results for the six months ended June 30, 2025, with stock code 3363 - Company Name: **ZHENGYE INTERNATIONAL HOLDINGS COMPANY LIMITED**[2](index=2&type=chunk) - Stock Code: **3363**[2](index=2&type=chunk) - Reporting Period: Six months ended **June 30, 2025**[2](index=2&type=chunk)[3](index=3&type=chunk) [Financial Summary](index=1&type=section&id=Financial%20Summary) For the six months ended June 30, 2025, the company's revenue decreased by 2.11% year-on-year, gross profit margin significantly declined to 9.09%, and profit attributable to owners of the company and basic earnings per share both substantially decreased Financial Summary for the Six Months Ended June 30 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 1,137,332 | 1,161,830 | -2.11% | | Gross Profit Margin | 9.09% | 14.08% | -4.99 percentage points | | Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) | 89,094 | 110,867 | -19.64% | | Profit and Total Comprehensive Income Attributable to Owners of the Company for the Period | 2,325 | 15,026 | -84.53% | | Return on Equity Attributable to Owners of the Company for the Period | 0.21% | 1.36% | -1.15 percentage points | | Basic Earnings Per Share (RMB cents) | 0.46 | 3.01 | -84.72% | Condensed Consolidated 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 the six months ended June 30, 2025, the Group's revenue decreased by 2.11% year-on-year, with increased cost of sales leading to a 36.89% significant reduction in gross profit, while profit before tax and total comprehensive income for the period both substantially declined by 80.29% and 88.57% respectively 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) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 1,137,332 | 1,161,830 | -2.11% | | Cost of Sales | (1,033,911) | (998,232) | +3.57% | | Gross Profit | 103,421 | 163,598 | -36.89% | | Other Income | 42,804 | 34,170 | +25.27% | | Other Gains and Losses | 7,806 | (1,591) | N/A (from loss to profit) | | Distribution and Selling Expenses | (33,835) | (46,800) | -27.69% | | Administrative and Other Expenses | (57,940) | (66,391) | -12.73% | | Finance Costs | (21,187) | (23,135) | -8.42% | | Research and Development Expenses | (36,116) | (40,198) | -10.16% | | Profit Before Tax | 3,792 | 19,238 | -80.29% | | Income Tax Expense | (1,691) | (851) | +98.71% | | Profit and Total Comprehensive Income for the Period | 2,101 | 18,387 | -88.57% | | Profit for the Period Attributable to Owners of the Company | 2,325 | 15,026 | -84.53% | | Non-controlling Interests | (224) | 3,361 | N/A (from profit to loss) | | Basic Earnings Per Share (RMB cents) | 0.46 | 3.01 | -84.72% | [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 slightly increased, non-current assets rose, while net current assets decreased, with a significant increase in bank and other borrowings leading to higher current and total liabilities Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 1,468,012 | 1,427,194 | +2.86% | | Investment Properties | 143,876 | 115,138 | +24.96% | | Intangible Assets | 18,322 | 10,995 | +66.64% | | Total Non-current Assets | 1,777,012 | 1,726,327 | +2.94% | | **Current Assets** | | | | | Inventories | 212,352 | 200,510 | +5.91% | | Trade and Other Receivables | 728,077 | 686,735 | +6.02% | | Bank Balances and Cash | 198,228 | 187,379 | +5.79% | | Total Current Assets | 1,225,158 | 1,149,633 | +6.57% | | **Current Liabilities** | | | | | Trade and Other Payables | 337,852 | 362,337 | -6.76% | | Bank and Other Borrowings (due within one year) | 749,742 | 591,788 | +26.69% | | Total Current Liabilities | 1,102,088 | 971,159 | +13.48% | | Net Current Assets | 123,070 | 178,474 | -31.04% | | **Total Equity** | 1,409,043 | 1,406,942 | +0.15% | | **Non-current Liabilities** | | | | | Bank and Other Borrowings | 444,315 | 446,896 | -0.58% | | Total Non-current Liabilities | 491,039 | 497,859 | -1.37% | Notes to the Condensed Consolidated Financial Statements [Basis of Preparation and Principal Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, using the historical cost basis, with no significant impact from new HKFRS amendments applied this period - Preparation basis: **Hong Kong Accounting Standard 34** and **Appendix D2 of the Listing Rules**[8](index=8&type=chunk) - Accounting basis: **Historical cost basis**[9](index=9&type=chunk) - Application of new accounting policies: First-time application of amendments to **Hong Kong Financial Reporting Standards** had no significant impact on the financial position and performance for the current and prior periods[9](index=9&type=chunk) [Segment Information](index=6&type=section&id=Segment%20Information) The Group operates in packaging paper and paper packaging segments, with packaging paper revenue increasing and paper packaging revenue decreasing, leading to a slight decline in total group revenue, while packaging paper profit significantly decreased and paper packaging segment turned from profit to loss Segment Revenue and Profit (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenue** | | | | | Packaging Paper | 815,784 | 792,912 | +2.88% | | Paper Packaging | 321,548 | 368,918 | -12.84% | | **Segment Profit/(Loss)** | | | | | Packaging Paper | 2,840 | 10,318 | -72.47% | | Paper Packaging | (1,467) | 13,200 | N/A (from profit to loss) | | Group Profit Before Tax | 3,792 | 19,238 | -80.29% | [Other Income](index=7&type=section&id=Other%20Income) For the six months ended June 30, 2025, the Group's other income increased by 25.27% year-on-year, primarily due to higher government grants and miscellaneous income Details of Other Income (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interest Income from Bank Deposits | 1,282 | 1,659 | -22.72% | | Government Grants | 30,224 | 27,810 | +8.68% | | Miscellaneous Income | 11,269 | 4,671 | +141.25% | | Total | 42,804 | 34,170 | +25.27% | [Other Gains and Losses](index=8&type=section&id=Other%20Gains%20and%20Losses) During the reporting period, the Group's other gains and losses turned from a loss to a gain, primarily due to a net gain of approximately RMB8,454,000 from the disposal of investment properties - Net gain of approximately **RMB8,454,000** from the disposal of investment properties led to a shift from loss to gain in other gains and losses[15](index=15&type=chunk) - Net foreign exchange losses increased from **RMB48,000** to **RMB428,000**[15](index=15&type=chunk) - Net loss on disposal of property, plant and equipment decreased from **RMB1,543,000** to **RMB220,000**[15](index=15&type=chunk) [Finance Costs](index=8&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs decreased by 8.42% year-on-year, mainly due to reduced interest on bank and other borrowings Details of Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interest on Bank Borrowings | 18,913 | 20,038 | -5.61% | | Interest on Other Borrowings | 1,705 | 1,984 | -14.06% | | Interest on Lease Liabilities | 569 | 680 | -16.32% | | Total | 21,187 | 23,135 | -8.42% | [Profit Before Tax and Income Tax Expense](index=8&type=section&id=Profit%20Before%20Tax%20and%20Income%20Tax%20Expense) The Group's profit before tax significantly decreased by 80.29%, while income tax expense increased by 98.71% year-on-year, with depreciation and amortization being key deductions, and Chinese subsidiaries benefiting from preferential tax rates - Key deductions from profit before tax included depreciation of property, plant and equipment of **RMB55,395,000** (2024: RMB61,870,000)[17](index=17&type=chunk) - Income tax expense increased from **RMB851,000** in 2024 to **RMB1,691,000** in 2025[18](index=18&type=chunk) - Chinese subsidiaries enjoy preferential tax rates of **15%** or a two-tier system based on their classification as high-tech enterprises or small-profit enterprises[19](index=19&type=chunk) [Dividends](index=9&type=section&id=Dividends) The Board of Directors decided not to declare an interim dividend for the six months ended June 30, 2025 - No interim dividend declared for the first half of **2025**[21](index=21&type=chunk)[74](index=74&type=chunk) [Earnings Per Share](index=9&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share significantly decreased to RMB0.46 cents from RMB3.01 cents in the prior year Basic Earnings Per Share (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company Used to Calculate Basic Earnings Per Share | 2,325 | 15,026 | -84.53% | | Number of Ordinary Shares Used to Calculate Basic Earnings Per Share | 500,000,000 | 500,000,000 | 0% | | Basic Earnings Per Share (RMB cents) | 0.46 | 3.01 | -84.72% | [Property, Plant and Equipment](index=10&type=section&id=Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the carrying amount of property, plant and equipment increased to RMB1,468,012,000, primarily due to additions of RMB98,974,000, offset by depreciation and disposals - Carrying amount of property, plant and equipment increased from **RMB1,427,194,000** as of January 1, 2025, to **RMB1,468,012,000** as of June 30, 2025[24](index=24&type=chunk) - Additions to plant and equipment during the period amounted to **RMB98,974,000**[24](index=24&type=chunk) - Depreciation during the period amounted to **RMB55,395,000**[24](index=24&type=chunk) [Investment Properties](index=10&type=section&id=Investment%20Properties) As of June 30, 2025, the carrying amount of investment properties increased to RMB143,876,000, mainly due to increased construction costs and transfers of investment properties under construction, partially offset by disposals - Carrying amount of investment properties increased from **RMB115,138,000** as of January 1, 2025, to **RMB143,876,000** as of June 30, 2025[25](index=25&type=chunk) - Construction costs incurred during the period amounted to **RMB38,729,000**[25](index=25&type=chunk) - Net gain of approximately **RMB8,454,000** from the disposal of investment properties during the period[15](index=15&type=chunk) [Intangible Assets](index=11&type=section&id=Intangible%20Assets) As of June 30, 2025, the carrying amount of intangible assets increased to RMB18,322,000, primarily due to new additions of RMB9,534,000 during the period, amortized on a straight-line basis over five years - Carrying amount of intangible assets increased from **RMB10,995,000** as of January 1, 2025, to **RMB18,322,000** as of June 30, 2025[27](index=27&type=chunk) - New intangible assets added during the period amounted to **RMB9,534,000**[27](index=27&type=chunk) - Intangible assets are amortized on a straight-line basis over **five years**[28](index=28&type=chunk) [Trade and Other Receivables](index=11&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables increased to RMB728,077,000, with a significant increase in trade receivables backed by bills and a change in the aging structure of trade receivables not backed by bills - Total trade and other receivables increased from **RMB686,735,000** as of December 31, 2024, to **RMB728,077,000** as of June 30, 2025[29](index=29&type=chunk) - Trade receivables backed by bills increased from **RMB204,515,000** to **RMB247,030,000**[29](index=29&type=chunk) - Among trade receivables not backed by bills, the proportion of **0-60 days** aging decreased, while **61-180 days** and above aging increased[31](index=31&type=chunk) - The Group provides an average credit period of **30 to 120 days** to trade customers[30](index=30&type=chunk) [Bank Balances and Cash / Pledged Bank Deposits](index=12&type=section&id=Bank%20Balances%20and%20Cash%20%2F%20Pledged%20Bank%20Deposits) As of June 30, 2025, bank balances and cash increased to RMB198,228,000, and pledged bank deposits rose to RMB76,232,000, serving as collateral for bank financing - Bank balances and cash increased from **RMB187,379,000** as of December 31, 2024, to **RMB198,228,000** as of June 30, 2025[6](index=6&type=chunk)[32](index=32&type=chunk) - Pledged bank deposits increased from **RMB64,428,000** as of December 31, 2024, to **RMB76,232,000** as of June 30, 2025, serving as collateral for bank financing[6](index=6&type=chunk)[32](index=32&type=chunk) - Bank balances bear interest at annual rates ranging from **0.05% to 1.8%**, while pledged bank deposits bear interest at annual rates ranging from **0.05% to 1.4%**[32](index=32&type=chunk) [Trade and Other Payables](index=13&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased to RMB337,852,000, primarily due to a reduction in trade payables and secured bills payable - Total trade and other payables decreased from **RMB362,337,000** as of December 31, 2024, to **RMB337,852,000** as of June 30, 2025[33](index=33&type=chunk) - Trade payables decreased from **RMB227,394,000** to **RMB178,589,000**[33](index=33&type=chunk) - Bills payable (secured) increased from **RMB9,334,000** to **RMB52,429,000**[33](index=33&type=chunk) - Credit period for material purchases ranges from **30 to 120 days**[33](index=33&type=chunk) [Amounts Due to Directors](index=13&type=section&id=Amounts%20Due%20to%20Directors) As of June 30, 2025, amounts due to directors were unsecured, interest-free, and repayable on demand - Amounts due to directors are **unsecured, interest-free, and repayable on demand**[34](index=34&type=chunk) [Bank and Other Borrowings](index=14&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, total bank and other borrowings increased to RMB1,129,957,000, with a significant portion being secured borrowings and a notable increase in borrowings due within one year - Total bank and other borrowings increased from **RMB995,054,000** as of December 31, 2024, to **RMB1,129,957,000** as of June 30, 2025[35](index=35&type=chunk) - Borrowings due within one year increased from **RMB548,158,000** to **RMB685,642,000**[35](index=35&type=chunk) - Most borrowings consist of **secured bank borrowings (RMB1,014,445,000)** and **secured other borrowings (RMB115,512,000)**[35](index=35&type=chunk) - Fixed-rate borrowings have effective annual interest rates ranging from **0.68% to 5.98%**, while floating-rate borrowings range from **3.15% to 4.50%**[36](index=36&type=chunk) [Deferred Taxation](index=15&type=section&id=Deferred%20Taxation) As of June 30, 2025, net deferred tax liabilities decreased to RMB6,794,000 from RMB7,889,000 as of December 31, 2024, with no deferred tax liabilities recognized for taxable temporary differences related to undistributed earnings of Chinese subsidiaries - Net deferred tax liabilities decreased from **RMB7,889,000** as of December 31, 2024, to **RMB6,794,000** as of June 30, 2025[37](index=37&type=chunk) - No deferred tax liabilities were recognized for taxable temporary differences related to undistributed earnings of Chinese subsidiaries, amounting to approximately **RMB863,507,000**[38](index=38&type=chunk) [Share Capital](index=16&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued share capital was HKD50,000,000, comprising 500,000,000 ordinary shares, with no changes during the reporting period - Issued share capital: **HKD50,000,000**[39](index=39&type=chunk) - Number of ordinary shares issued: **500,000,000** shares, with a par value of **HKD0.1** per share[39](index=39&type=chunk) - No changes in authorized and issued share capital during the reporting period[61](index=61&type=chunk) [Pledge of Assets](index=16&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group's total pledged assets increased to RMB653,654,000, primarily including buildings and construction in progress, plant and machinery, leasehold land, trade receivables backed by bills, pledged bank deposits, and inventories - Total pledged assets increased from **RMB599,729,000** as of December 31, 2024, to **RMB653,654,000** as of June 30, 2025[40](index=40&type=chunk) - Key pledged assets include **buildings and construction in progress (RMB236,316,000)**, **plant and machinery (RMB78,395,000)**, and **trade receivables backed by bills (RMB136,118,000)**[40](index=40&type=chunk) [Capital Commitments](index=17&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments (contracted and authorized) amounted to approximately RMB87,861,000, primarily for the acquisition of property, plant and equipment and investment properties, a significant decrease from the end of last year - Total capital commitments decreased from **RMB176,628,000** as of December 31, 2024, to **RMB87,861,000** as of June 30, 2025[42](index=42&type=chunk)[68](index=68&type=chunk) - Primarily for the acquisition of **property, plant and equipment** and **investment properties**[68](index=68&type=chunk) [Related Party Transactions and Balances](index=17&type=section&id=Related%20Party%20Transactions%20and%20Balances) The Group's related party balances primarily consist of amounts due to directors, and total remuneration for key management personnel decreased during the reporting period - Amounts due to directors are disclosed in the **condensed consolidated statement of financial position**[43](index=43&type=chunk) - Remuneration and other benefits for key management personnel decreased from **RMB11,478,000** in 2024 to **RMB9,285,000** in 2025[44](index=44&type=chunk) Management Discussion and Analysis [Business Review](index=18&type=section&id=Business%20Review) The Group manufactures paper packaging products and produces corrugated medium and kraftliner, aiming to be an eco-friendly packaging enterprise, with total revenue decreasing by 2.11% and profit attributable to owners of the company significantly down by 84.53% due to macroeconomic and trade policy impacts - Main business: Providing **paper packaging products** and integrated packaging solutions for manufacturers of home appliances, food, consumer electronics, cosmetics, etc.; producing **corrugated medium** and **kraftliner** using recycled waste paper[45](index=45&type=chunk) - Strategic goal: To become one of the **world's leading eco-friendly packaging ecosystem enterprises**[46](index=46&type=chunk) - Product scope: **Kraftliner cartons, color-printed cartons, honeycomb paper products, exquisite color box packaging, corrugated medium, kraftliner**[46](index=46&type=chunk) - Operating entities: Owns **10 wholly-owned subsidiaries** and **4 non-wholly-owned subsidiaries** in different regions of China[46](index=46&type=chunk) - Operating revenue: **RMB1,137,332,000**, a year-on-year decrease of **2.11%**[49](index=49&type=chunk) - Profit attributable to owners of the company: **RMB2,325,000**[52](index=52&type=chunk) - Basic earnings per share: **RMB0.0046**[52](index=52&type=chunk) [Macroeconomic Environment](index=19&type=section&id=Macroeconomic%20Environment) The global economic recovery remains weak with trade and policy uncertainties, while China's economy shows long-term positive trends, but traditional manufacturing and service sectors face significant transformation pressures - Global economic recovery is weak, with numerous uncertainties in the trade and policy environment[50](index=50&type=chunk) - China's economy maintains a long-term positive trend, with manufacturing demonstrating advantages in skill density, supply chain maturity, and industrial collaboration efficiency[50](index=50&type=chunk) - Traditional manufacturing and service industries face significant pressure for transformation and upgrading[50](index=50&type=chunk) [Paper Packaging Business Performance](index=19&type=section&id=Paper%20Packaging%20Business%20Performance) The paper packaging business saw a significant decline in sales unit price and gross profit margin, with revenue decreasing by 12.84% due to tariff increases and trade policy uncertainties, despite stable order volumes from new customer development - Export orders from existing downstream customers significantly declined due to tariff increases and trade policy uncertainties[51](index=51&type=chunk) - Order growth from newly developed fast-moving consumer goods and home appliance customers kept order volume largely stable[51](index=51&type=chunk) - Sales unit price significantly decreased by approximately **13.10%**[51](index=51&type=chunk) - Operating revenue was approximately **RMB321,548,000**, a year-on-year decrease of approximately **12.84%**[51](index=51&type=chunk) - Gross profit margin was approximately **15.44%**, a significant year-on-year decrease of approximately **8.05 percentage points**[51](index=51&type=chunk) - Raw paper prices significantly decreased by approximately **5.12%**[51](index=51&type=chunk) [Papermaking Business Performance](index=20&type=section&id=Papermaking%20Business%20Performance) The papermaking business achieved over 10% capacity increase through production line upgrades, leading to an 11.94% sales volume growth, despite an 8.09% drop in sales unit price and a 3.95% rise in raw material costs, resulting in a 2.88% revenue increase and a 3.12 percentage point decline in gross profit margin - Completed speed-up modifications for some paper machine production lines, increasing capacity by over **10%**[53](index=53&type=chunk) - Sales volume increased by approximately **11.94%** year-on-year[53](index=53&type=chunk) - Sales unit price significantly decreased by approximately **8.09%**[53](index=53&type=chunk) - Raw material waste paper prices increased by approximately **3.95%** year-on-year[53](index=53&type=chunk) - Operating revenue was approximately **RMB815,784,000**, a year-on-year increase of approximately **2.88%**[53](index=53&type=chunk) - Gross profit margin was approximately **6.59%**, a year-on-year decrease of approximately **3.12 percentage points**[53](index=53&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) The Group's total revenue for the first half decreased by 2.11% to RMB1,137,332,000, with gross profit margin falling from 14.08% to 9.09%, and profit attributable to owners of the company significantly declining to RMB2,325,000, mainly due to reduced sales unit prices in the paper packaging business and intensified industry competition - Group's total revenue was **RMB1,137,332,000**, a year-on-year decrease of **2.11%**[54](index=54&type=chunk) - Group's gross profit margin was **9.09%**, a significant decrease from **14.08%** in the prior year[54](index=54&type=chunk) - Profit attributable to owners of the company was **RMB2,325,000**, a significant decrease from **RMB15,026,000** in the prior year[55](index=55&type=chunk) - The papermaking segment stabilized market share and achieved sales volume growth through **technological innovation, capacity enhancement, and cost reduction and efficiency improvement**[54](index=54&type=chunk) - The paper packaging segment's gross profit margin significantly declined due to **trade policy uncertainties, decreased existing customer orders, and a substantial drop in sales unit prices**[55](index=55&type=chunk) [Business Outlook](index=21&type=section&id=Business%20Outlook) Looking ahead, global economic challenges persist, with China focusing on expanding domestic demand and consumption, while the paper packaging industry faces intense competition but also opportunities from AI technology and green transformation, prompting the Group to pursue green and intelligent transformation through technological innovation, industrial integration, and overseas business expansion with a 'long-termism' strategy - Global economy faces challenges with weak investment growth, and the Chinese government will adopt comprehensive strategies to address inflation, with **expanding domestic demand and promoting consumption** as key priorities[56](index=56&type=chunk) - The paper packaging industry faces intense competition, but the application of **AI technology** and **green transformation** under the 'dual carbon' goals present development opportunities[57](index=57&type=chunk) - The Group will leverage its integrated industry chain advantages to pursue **technological innovation, industrial integration, and business model transformation**, exploring low-carbon growth models[58](index=58&type=chunk) - Exploring expansion into **overseas packaging businesses** to seek new growth directions and strategic layouts[58](index=58&type=chunk) - Promoting enterprise transformation towards **green, intelligent, and digital intelligence**, centered on 'user needs', driven by 'technological innovation', and supported by 'ecological cooperation'[58](index=58&type=chunk) [Current Assets, Liquidity and Financial Resources](index=22&type=section&id=Current%20Assets%2C%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's net assets slightly increased, bank and cash balances rose, but total borrowings significantly increased, leading to a rise in the net gearing ratio from 70.23% to 81.91% and a slight decrease in the current ratio Summary of Liquidity and Financial Resources (As of June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Net Assets | 1,409,043 | 1,406,942 | +0.15% | | Bank and Cash Balances | 198,228 | 187,379 | +5.79% | | Total Borrowings | 1,194,057 | 1,038,684 | +14.96% | | Equity Attributable to Owners of the Company | 1,122,753 | 1,120,428 | +0.21% | | Current Ratio | 1.11 | 1.18 | -0.07 | | Net Gearing Ratio | 81.91% | 70.23% | +11.68 percentage points | - Primary sources of funds are **cash generated from operating activities** and **bank loans**[59](index=59&type=chunk) [Capital Structure](index=22&type=section&id=Capital%20Structure) As of June 30, 2025, the company's issued share capital was HKD50,000,000, comprising 500,000,000 ordinary shares, with no changes during the reporting period - Issued share capital: **HKD50,000,000**[61](index=61&type=chunk) - Number of ordinary shares issued: **500,000,000** shares, with a par value of **HKD0.1** per share[61](index=61&type=chunk) - No changes in authorized and issued share capital during the reporting period[61](index=61&type=chunk) [Cash Flow](index=22&type=section&id=Cash%20Flow) For the six months ended June 30, 2025, net cash flow from operating activities turned into an inflow of RMB3,666,000, with net cash outflow from investing activities of RMB109,204,000 and net cash inflow from financing activities of RMB116,387,000 - Net cash flow from operating activities: **RMB3,666,000** inflow in 2025 (2024: RMB298,220,000 outflow)[62](index=62&type=chunk) - Net cash flow from investing activities: **RMB109,204,000** outflow, primarily for the acquisition of long-term assets[62](index=62&type=chunk) - Net cash flow from financing activities: **RMB116,387,000** inflow, mainly comprising proceeds from borrowings and repayment of borrowings[64](index=64&type=chunk) - Group's net cash inflow: **RMB10,849,000** inflow in 2025 (2024: RMB29,659,000 outflow)[64](index=64&type=chunk) - If the IFRIC agenda decision were not applied, net cash from operating activities would increase by **RMB177,197,000**, and net cash from financing activities would decrease by the same amount[66](index=66&type=chunk) [Capital Expenditure](index=23&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's total capital expenditure was approximately RMB83,129,000, with the papermaking division accounting for 80.11% and the packaging division for 19.89% Details of Capital Expenditure (For the six months ended June 30) | Division | Amount (RMB thousands) | Proportion | | :--- | :--- | :--- | | Papermaking Division | 66,593 | 80.11% | | Packaging Division | 16,536 | 19.89% | | Total | 83,129 | 100.00% | [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities or material litigation or arbitration - No significant contingent liabilities or material litigation or arbitration[69](index=69&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=Foreign%20Exchange%20Risk) The Group primarily operates in China, with most assets, revenue, and cash settled in RMB, and the directors believe exchange rate fluctuations have no significant impact on performance, currently having no foreign exchange hedging policy but will monitor closely - Primarily operates in China, with most assets, revenue, and cash settled in **RMB**[70](index=70&type=chunk) - Directors believe exchange rate fluctuations have **no significant impact** on performance[70](index=70&type=chunk) - Currently has **no foreign exchange hedging policy**, but will monitor closely and consider hedging arrangements[70](index=70&type=chunk) [Human Resources Management](index=24&type=section&id=Human%20Resources%20Management) As of June 30, 2025, the Group had 2,605 employees, with production and quality control personnel accounting for the largest proportion, and R&D technical and engineering personnel making up 13.40% - Total number of employees: **2,605** (December 31, 2024: 2,705)[71](index=71&type=chunk) - Approximately **522** employees are engineers, technical personnel, or have higher education backgrounds[71](index=71&type=chunk) Employee Functional Distribution (As of June 30) | Function | Number of Employees | Proportion | | :--- | :--- | :--- | | Management and Administration | 348 | 13.36% | | Sales and Marketing | 115 | 4.41% | | Research and Development, Technical and Engineering | 349 | 13.40% | | Production and Quality Control | 1,793 | 68.83% | | Total | 2,605 | 100.00% | Other Information [Repurchase, Sale or Redemption of Securities](index=25&type=section&id=Repurchase%2C%20Sale%20or%20Redemption%20of%20Securities) During the reporting period, neither the company nor its subsidiaries repurchased, sold, or redeemed any of the company's listed securities, and the company held no treasury shares - No repurchase, sale, or redemption of listed securities during the reporting period[73](index=73&type=chunk) - The company held no treasury shares[73](index=73&type=chunk) [Dividend Policy](index=25&type=section&id=Dividend%20Policy) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - No interim dividend recommended for the first half of **2025**[74](index=74&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance) During the reporting period, the company consistently complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules and adopted most best practices - Complied with all applicable code provisions of the **Corporate Governance Code** set out in **Appendix C1 of the Listing Rules** during the reporting period[75](index=75&type=chunk) - Adopted most **best practices**[75](index=75&type=chunk) [Standard Securities Dealing Code for Directors](index=25&type=section&id=Standard%20Securities%20Dealing%20Code%20for%20Directors) All current directors confirmed compliance with the Standard Securities Dealing Code for Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules during the reporting period - All current directors confirmed compliance with the **Standard Code** set out in **Appendix C3 of the Listing Rules**[76](index=76&type=chunk) [Events After Reporting Period](index=25&type=section&id=Events%20After%20Reporting%20Period) No significant events affecting the Group occurred after the reporting period and up to the announcement date, other than those disclosed in the announcement - No significant events after the reporting period[77](index=77&type=chunk) [Review by Audit Committee](index=25&type=section&id=Review%20by%20Audit%20Committee) The Group's condensed consolidated financial statements for the six months ended June 30, 2025, although unaudited, have been reviewed by the company's Audit Committee, comprising all independent non-executive directors - Condensed consolidated financial statements are **unaudited**[78](index=78&type=chunk) - Reviewed by the company's **Audit Committee**, comprising all independent non-executive directors[78](index=78&type=chunk) [Publication of Interim Results and Interim Report](index=25&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company, with the interim report to be published in due course - Interim results announcement published on the websites of **Hong Kong Exchanges and Clearing Limited** and the **company**[79](index=79&type=chunk) - Interim report will be published on the aforementioned websites in due course[79](index=79&type=chunk) [Acknowledgement](index=26&type=section&id=Acknowledgement) The Board of Directors extends gratitude to the management team, employees for their contributions, and all shareholders and business partners for their support - The Board of Directors thanks the **management team and employees** for their contributions[80](index=80&type=chunk) - Appreciation to all **shareholders and business partners** for their support[80](index=80&type=chunk) - Information on **Board members**[81](index=81&type=chunk)

截至2025年6月30日止六個月之中期業績公告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不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。 MBV INTERNATIONAL LIMITED 中國大人國際有限公司 （ 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ） （股份代號：1957） 財務摘要 截至2025年6月30日止六個月（「本期間」）： 中國大人國際有限公司（「本公司」）董事（「董事」）會（「董事會」）提呈本公司及其附屬公司 （統稱「本集團」）於本期間的未經審核中期業績，連同去年同期的比較數字如下。中期業 績未經外聘核數師審核，惟已經本公司審核委員會審閱。 — 1 — • 本集團（定義見下文）錄得未經審核收益約87,300,000令吉，較截至2024年6月30日止 六個月（「去年同期」）的約92,700,000令吉減少約5.8%； • 本集團於本期間錄得本公司擁有人應佔期內溢利約8,200,000令吉，較去年同期的約 6,200,000令吉增加約32.3%； • 本集團於 ...

[Financial Overview](index=1&type=section&id=Financial%20Overview) [Overall Performance and Key Drivers](index=1&type=section&id=Overall%20Performance%20and%20Key%20Drivers) Sunpac Holdings Limited recorded revenue growth during the reporting period, but a significant increase in operating expenses due to arbitration and legal costs, bad debt provisions, and intensified market competition led to a decline in gross margin and a substantial widening of loss for the period, partially offset by an increase in other income Financial Overview for the Six Months Ended June 30, 2025 | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Change Amount (HK$ million) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Revenue | 62.2 | 47.5 | 14.7 | ↑30.9% | | Gross Profit | 9.6 | 7.9 | 1.7 | ↑21.5% | | Gross Margin | 15.4% | 16.6% | - | ↓1.2% | | Operating Expenses | (41.1) | (19.8) | (21.3) | ↑107.6% | | Operating Loss | (31.5) | (11.9) | (19.6) | ↑164.7% | | Other Income and Gains/Losses | 8.9 | 1.4 | 7.5 | ↑535.7% | | Loss for the Period | (22.6) | (10.5) | (12.1) | ↑115.2% | | Loss Before Interest, Tax, Depreciation, and Amortization (EBITDA) | (21.5) | (9.4) | (12.1) | ↑128.7% | | Basic and Diluted Loss Per Share (HK cents) | (4.1) | (2.0) | (2.1) | ↑105.0% | - Revenue grew by **30.9%** to **HK$62.2 million**, primarily benefiting from increased project volume in the interior decoration and special projects business[4](index=4&type=chunk)[5](index=5&type=chunk) - Gross margin slightly decreased by **1.2 percentage points** to **15.4%**, mainly due to intensified market competition[4](index=4&type=chunk)[5](index=5&type=chunk) - Operating expenses surged by **107.6%** to **HK$41.1 million**, primarily due to arbitration and legal costs for the interior decoration and special projects business, and significant bad debt and expected credit loss provisions resulting from a deteriorating business environment in Hong Kong[4](index=4&type=chunk)[5](index=5&type=chunk) - Other income and gains/losses increased from **HK$1.4 million** to **HK$8.9 million**, mainly from interest income on restricted cash pledged for performance bonds and fair value gains on financial assets[4](index=4&type=chunk)[5](index=5&type=chunk) - Loss attributable to owners of the Company was approximately **HK$22.6 million**, a significant increase of **115.2%** from **HK$10.5 million** in the prior year[4](index=4&type=chunk)[6](index=6&type=chunk) [Business Review and Outlook](index=3&type=section&id=Business%20Review%20and%20Outlook) [Business Overview](index=3&type=section&id=Business%20Overview) The Group primarily operates two business segments: interior decoration and special projects, and China property and facilities management - The Group primarily operates two major business segments: interior decoration and special projects business, and China property and facilities management business[7](index=7&type=chunk) [Segment Business Performance](index=3&type=section&id=Segment%20Business%20Performance) The interior decoration and special projects business saw significant growth in revenue and gross profit, but increased operating expenses led to a wider loss; the China property and facilities management business experienced declines in revenue and gross profit, turning from profit to loss due to contract expiry Segment Business Performance (Six Months Ended June 30, HK$ million) | Metric | Interior Decoration and Special Projects Business (2025) | Interior Decoration and Special Projects Business (2024) | Change % | China Property and Facilities Management Business (2025) | China Property and Facilities Management Business (2024) | Change % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 60.0 | 43.9 | ↑36.7% | 2.2 | 3.7 | ↓40.5% | | Gross Profit | 7.8 | 5.4 | ↑44.4% | 1.8 | 2.5 | ↓28.0% | | Operating Expenses | (35.8) | (14.7) | ↑143.5% | (2.1) | (2.3) | ↓8.7% | | Operating (Loss)/Profit | (28.0) | (9.3) | ↑201.1% | (0.3) | 0.2 | ↓250.0% | | Loss/(Profit) for the Period | (27.9) | (9.0) | ↑210.0% | (0.3) | 0.3 | ↓200.0% | [Interior Decoration and Special Projects Business](index=3&type=section&id=Interior%20Decoration%20and%20Special%20Projects%20Business) As the Group's primary revenue source, this business achieved revenue and gross profit growth by securing new contracts through strong client relationships and excellent performance, despite macroeconomic instability and intense competition; however, arbitration and legal fees, along with bad debt provisions, led to a surge in operating expenses and a net loss - This business is the Group's primary revenue source, contributing over **90%** of revenue, having completed over **266 projects** with a total contract value exceeding **HK$9.3 billion** since its acquisition in late 2012[9](index=9&type=chunk) [Market Environment and Operational Performance](index=4&type=section&id=Market%20Environment%20and%20Operational%20Performance) In H1 2025, the construction industry faced macroeconomic instability, geopolitical uncertainties, inflation, and subdued market sentiment, leading to suppressed investment and increased competition; despite this, the business demonstrated resilience, securing new contracts totaling over HK$85 million, including residential, commercial, school, and yacht renovation projects - The construction industry faces multiple challenges including macroeconomic instability, geopolitical uncertainties, trade protectionism, inflationary pressures, rising vacancy rates, and declining consumer spending, leading to suppressed investment appetite, fewer tenders, and intensified market competition[10](index=10&type=chunk) - Successfully secured several new contracts, including a residential development project on Middle Gap Road, commercial and residential unit renovation projects, hoarding/demolition/addition and alteration works for a school in Causeway Bay, and a custom yacht refurbishment project[10](index=10&type=chunk) - A total of over **HK$85 million** in new contracts were awarded during the reporting period, maintaining stable performance compared to the same period[10](index=10&type=chunk) - Revenue was approximately **HK$60 million**, a **36.7%** increase from the prior period; gross profit was approximately **HK$7.8 million**, a **44.4%** increase, reflecting improved operational efficiency[11](index=11&type=chunk) - Operating expenses surged by **143.5%** to approximately **HK$35.8 million**, primarily due to arbitration hearing and litigation preparation costs, and substantial bad debt and expected credit loss provisions arising from the deteriorating business environment in Hong Kong and financial instability of developers[12](index=12&type=chunk) - Recorded an operating loss of approximately **HK$28 million**, with a net loss for the period of approximately **HK$27.9 million**[12](index=12&type=chunk) [Strategy and Outlook](index=5&type=section&id=Strategy%20and%20Outlook) Facing ongoing challenges, this business will adopt a proactive multi-pronged strategy, including timely project completion, cautious bidding for new projects to balance volume and profit margins, focusing on luxury residential and high-end renovations, pursuing existing client expansion, capitalizing on hotel renovation opportunities, and benefiting from government housing initiatives - Will adopt a proactive, multi-pronged strategy to ensure timely completion of existing projects and maintain high client satisfaction[13](index=13&type=chunk) - Will adopt a cautious bidding approach for new projects, balancing project volume with profit margins, and employ an industry-focused strategy, concentrating on luxury residential development and high-end renovation projects[13](index=13&type=chunk) - Actively pursuing expansion projects from existing clients, seizing hotel renovation opportunities, and benefiting from the recovery in construction and interior decoration demand driven by the government's plan to complete **60,000 housing units**[13](index=13&type=chunk) - As of the announcement date, tenders for new construction, renovation, addition, and alteration works totaling approximately **HK$600 million** have been submitted for approval; as of June 30, 2025, the total value of outstanding contracts on hand was approximately **HK$173.3 million**, expected to be recognized as revenue over the next two years[10](index=10&type=chunk) [China Property and Facilities Management Business](index=6&type=section&id=China%20Property%20and%20Facilities%20Management%20Business) Operating in a challenging market, the China property and facilities management business experienced significant declines in revenue and gross profit, turning to a net loss, primarily due to the expiry of a major Shanghai commercial property management contract, despite signs of market recovery; the Group will maintain a conservative organizational structure and seek service diversification and alternative businesses to support sustainable growth amidst a complex and unstable external environment - Performance declined due to economic uncertainty, subdued consumer sentiment in both mainland China and Hong Kong, and intense competition, exacerbated by the expiry of a major commercial property management contract in Shanghai[15](index=15&type=chunk) - Revenue significantly decreased by **40.5%** to approximately **HK$2.2 million** compared to the prior year, and gross profit decreased by **28.0%** to approximately **HK$1.8 million**[15](index=15&type=chunk) - Recorded a net loss of approximately **HK$0.3 million**, compared to a net profit of approximately **HK$0.3 million** in the prior period[15](index=15&type=chunk) - Observed a gradual recovery in the China market supported by government policy relaxation and economic stimulus plans, and was awarded a new residential property management contract after the reporting period[16](index=16&type=chunk) - Will maintain a conservative organizational structure, enhance business resilience and competitiveness through service diversification, and actively seek new alternative businesses to expand revenue streams[16](index=16&type=chunk) [Group Outlook](index=6&type=section&id=Group%20Outlook) The Group anticipates continued economic challenges in the local market but will actively implement strategies including diversifying its project portfolio, focusing on stable market segments, maintaining robust liquidity, and remains optimistic about long-term sustainable growth and shareholder value creation - The local market is expected to continue facing economic challenges, including cautious sentiment from potential business partners and property owners, escalating global inflationary pressures, and financial constraints on major developers[17](index=17&type=chunk) - Actively implementing response strategies, diversifying the project portfolio, and focusing on expanding into relatively stable market segments such as luxury residential development and renovation, commercial properties, and local residential projects[17](index=17&type=chunk) - Maintaining robust liquidity to support potential large-scale projects, and with a strong track record, extensive industry experience, and professional team, is capable of undertaking major projects and delivering high-quality results[17](index=17&type=chunk) - Remains optimistic about the long-term outlook, expecting to maintain solid financial performance, achieve sustainable growth, and continue creating value for shareholders in the coming years[18](index=18&type=chunk) - Core operations are built on customer-centricity, integrity, teamwork, innovative thinking, and the pursuit of excellence, committed to enhancing customer satisfaction[18](index=18&type=chunk) [Financial Position and Financial Risk Management](index=7&type=section&id=Financial%20Position%20and%20Financial%20Risk%20Management) [Sources of Funding and Liquidity](index=7&type=section&id=Sources%20of%20Funding%20and%20Liquidity) The Group currently has no bank loans, with funding primarily from retained earnings and internally generated cash flow from operations; future financial needs will be met through shareholders' equity and bank credit, while planning to utilize cash to strengthen competitive advantages, purchase performance bonds, and cover upfront costs to expand business - As of June 30, 2025, the Group had no outstanding bank loans[19](index=19&type=chunk) - Funding sources are primarily supported by retained earnings from operating activities and internally generated cash flow[19](index=19&type=chunk) - Management expects to meet foreseeable future financial needs through shareholders' equity and bank credit facilities[19](index=19&type=chunk) - Existing cash and cash equivalents balances are intended to consolidate competitive advantages, purchase performance bonds, and cover upfront costs to bid for more large-scale projects and improve success rates[19](index=19&type=chunk) - Management will continue to actively and regularly monitor the financial position and capital structure to maintain sufficient working capital and liquidity[19](index=19&type=chunk) [Financial Position Overview](index=7&type=section&id=Financial%20Position%20Overview) As of June 30, 2025, the Group's total assets and net assets decreased, while the current ratio remained healthy, though net asset value per share declined Financial Position (HK$ thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 285,217 | 297,556 | | Trade and Other Receivables, Retention Monies, and Other Assets | 180,313 | 191,978 | | Restricted Cash Deposits, Pledged Bank Deposits/Deposits with Original Maturity Over Three Months, and Cash and Cash Equivalents | 102,739 | 103,681 | | Current Assets | 283,052 | 295,659 | | Current Liabilities | 146,683 | 146,813 | | Non-current Liabilities | 473 | 437 | | Net Assets | 138,061 | 150,306 | | Net Asset Value Per Share (HK cents) | 19.2 | 29.8 | | Current Ratio | 1.9 | 2.0 | [Risk Management](index=7&type=section&id=Risk%20Management) The Group prudently manages financial risks and resources, with minimal foreign exchange exposure and no significant investments, capital commitments, or contingent liabilities (except for one lawsuit), maintaining sufficient liquidity through a centralized cash management system - The Group adopts a prudent approach to managing its financial risks and resources[20](index=20&type=chunk) - Foreign exchange risk is minimal as most assets and liabilities are denominated in HKD, and no foreign exchange hedging is deemed necessary[21](index=21&type=chunk) - There are no significant investments, capital commitments, or contingent liabilities, except for a writ of summons concerning the Yuen Long factory development[21](index=21&type=chunk) - A centralized cash management system is in place, with surplus cash balances primarily held as short-term bank deposits with various licensed banks in Hong Kong[22](index=22&type=chunk) [Human Resources](index=8&type=section&id=Human%20Resources) [Human Resources Management](index=8&type=section&id=Human%20Resources%20Management) As of June 30, 2025, the Group employed 240 staff, a reduction from year-end, prioritizing strategic workforce management, maintaining a lean and flexible structure, and investing in wellness programs, operational efficiency, competitive compensation, and employee development to retain top talent and support sustainable growth - As of June 30, 2025, the Group employed a total of **240 staff** in Hong Kong and China (December 31, 2024: **316 staff**)[23](index=23&type=chunk) - Continues to prioritize strategic workforce management, particularly in the interior decoration and special projects business, to maintain a lean and flexible staff structure in response to economic headwinds[24](index=24&type=chunk) - Launched various wellness programs to promote employees' physical and mental health, support employee well-being, and work-life balance[24](index=24&type=chunk) - Enhanced operational efficiency through the adoption of flexible policies, remote work, and digital work models[24](index=24&type=chunk) - Continuously invests in competitive compensation and benefits packages, and actively invests in employee development, providing resources that support personal and professional growth[24](index=24&type=chunk) [Interim Dividend](index=8&type=section&id=Interim%20Dividend) [Interim Dividend Resolution](index=8&type=section&id=Interim%20Dividend%20Resolution) The Board of Directors resolved not to declare an interim dividend for the reporting period - The Board of Directors resolved not to declare an interim dividend for the reporting period (six months ended June 30, 2025) (2024: nil)[25](index=25&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group recorded a loss for the period of HK$22,635 thousand, a significant increase from a loss of HK$10,489 thousand in the prior year, primarily due to higher cost of sales, surging operating expenses, and impairment loss provisions, despite an increase in other income and gains/losses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30, HK$ thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 62,243 | 47,547 | | Cost of Sales and Services | (52,682) | (39,658) | | Gross Profit | 9,561 | 7,889 | | Other Income and Gains/Losses | 8,887 | 1,380 | | General and Administrative Expenses | (37,118) | (20,839) | | Interest Expense | (27) | (34) | | Impairment Loss (Provision)/Reversal of Trade Receivables and Contract Assets, Net | (3,936) | 1,112 | | Loss Before Tax | (22,633) | (10,492) | | Taxation | (2) | 3 | | Loss for the Period | (22,635) | (10,489) | | Other Comprehensive Income/(Loss): Exchange Differences Arising from Translation of Foreign Operations | 425 | (202) | | Total Comprehensive Loss for the Period Attributable to Owners of the Company | (22,210) | (10,691) | | Basic and Diluted Loss Per Share (HK cents) | (4.1) | (2.0) | [Condensed Consolidated Statement of Financial Position](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and net assets decreased compared to December 31, 2024, with net current assets and total equity also reducing, mainly influenced by capital reorganization activities such as capital reduction and rights issue Condensed Consolidated Statement of Financial Position (HK$ thousand) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 1,948 | 1,678 | | Deferred Tax Assets | 217 | 219 | | **Total Non-current Assets** | **2,165** | **1,897** | | **Current Assets** | | | | Contract Assets | 73,895 | 74,874 | | Trade and Other Receivables and Retention Monies | 86,799 | 89,045 | | Deposits and Prepayments | 1,929 | 2,042 | | Financial Assets at Fair Value Through Profit or Loss | 17,690 | 26,017 | | Restricted Cash Deposits | 67,307 | 62,620 | | Pledged Bank Deposits/Deposits with Original Maturity Over Three Months | 14,812 | 19,471 | | Cash and Cash Equivalents | 20,620 | 21,590 | | **Total Current Assets** | **283,052** | **295,659** | | **Current Liabilities** | | | | Trade and Other Payables and Accruals | 143,054 | 142,444 | | Lease Liabilities | 2,368 | 3,480 | | Tax Payable | 1,261 | 889 | | **Total Current Liabilities** | **146,683** | **146,813** | | **Net Current Assets** | **136,369** | **148,846** | | **Total Assets Less Current Liabilities** | **138,534** | **150,743** | | **Non-current Liabilities** | | | | Long Service Payment Liabilities | 279 | 279 | | Lease Liabilities | 194 | 158 | | **Total Non-current Liabilities** | **473** | **437** | | **Net Assets** | **138,061** | **150,306** | | **Equity Attributable to Owners of the Company** | | | | Share Capital | 7,173 | 50,486 | | Reserves | 130,888 | 99,820 | | **Total Equity** | **138,061** | **150,306** | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Basis of Preparation](index=12&type=section&id=Basis%20of%20Preparation) These condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, with accounting policies consistent with the prior year's annual report, and the initial adoption of revised Hong Kong Financial Reporting Standards is not expected to have a significant impact on the Group's financial statements - These unaudited condensed consolidated interim financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the relevant disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[29](index=29&type=chunk) - The initial adoption of revised Hong Kong Financial Reporting Standards, including HKAS 21 (Amendment) 'Lack of Exchangeability', is not expected to have any significant impact on the Group's condensed consolidated financial statements[29](index=29&type=chunk)[30](index=30&type=chunk) [Significant Accounting Estimates and Judgements](index=13&type=section&id=Significant%20Accounting%20Estimates%20and%20Judgements) The significant judgments, estimates, and assumptions made in preparing these condensed consolidated interim financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024 - In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended December 31, 2024[32](index=32&type=chunk) [Segment Information](index=13&type=section&id=Segment%20Information) The Group's reportable operating segments are interior decoration and special projects business and China property and facilities management business, with the former showing revenue and gross profit growth but expanded operating loss, and the latter experiencing revenue and gross profit decline, turning from profit to loss - The Group's reportable operating segments are the interior decoration and special projects business and the China property and facilities management business[33](index=33&type=chunk) Segment Results (Six Months Ended June 30, HK$ thousand) | Metric | Interior Decoration and Special Projects Business (2025) | China Property and Facilities Management Business (2025) | Subtotal (2025) | Administrative Expenses (2025) | Total (2025) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 60,065 | 2,178 | 62,243 | - | 62,243 | | Gross Profit | 7,804 | 1,757 | 9,561 | - | 9,561 | | Gross Margin | 13.0% | 80.7% | 15.4% | - | 15.4% | | Operating Expenses | (35,788) | (2,045) | (37,833) | (3,221) | (41,054) | | Operating Loss | (27,984) | (288) | (28,272) | (3,221) | (31,493) | | Loss/(Profit) for the Period | (27,880) | (361) | (28,241) | 5,606 | (22,635) | | Metric | Interior Decoration and Special Projects Business (2024) | China Property and Facilities Management Business (2024) | Subtotal (2024) | Administrative Expenses (2024) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 43,887 | 3,660 | 47,547 | - | 47,547 | | Gross Profit | 5,381 | 2,508 | 7,889 | - | 7,889 | | Gross Margin | 12.3% | 68.5% | 16.6% | - | 16.6% | | Operating Expenses | (14,701) | (2,300) | (17,001) | (2,726) | (19,727) | | Operating (Loss)/Profit | (9,320) | 208 | (9,112) | (2,726) | (11,838) | | Loss/(Profit) for the Period | (9,024) | 288 | (8,736) | (1,753) | (10,489) | [Other Income and Gains/Losses](index=15&type=section&id=Other%20Income%20and%20Gains%2FLosses) Other income and gains/losses significantly increased to HK$8,887 thousand this period, primarily driven by bank interest income and fair value changes of financial assets at fair value through profit or loss Other Income and Gains/Losses (Six Months Ended June 30, HK$ thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Other income | 74 | 245 | | Bank interest income | 4,920 | 952 | | Dividends from financial assets at fair value through profit or loss | 465 | 358 | | Fair value changes of financial assets at fair value through profit or loss | 3,543 | (229) | | Exchange (loss)/gain | (115) | 54 | | **Total** | **8,887** | **1,380** | [Loss Before Tax](index=15&type=section&id=Loss%20Before%20Tax) The loss before tax for the period was HK$22,633 thousand, mainly impacted by staff costs, depreciation, and a substantial increase in professional and legal fees Loss Before Tax Has Been Arrived At After Charging/(Crediting) the Following (Six Months Ended June 30, HK$ thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Staff costs (including directors' emoluments) | 21,140 | 22,428 | | Depreciation of property, plant and equipment | 1,081 | 1,095 | | Professional and legal fees included in general and administrative expenses | 22,398 | 7,570 | [Taxation](index=15&type=section&id=Taxation) The Group's Hong Kong profits tax is calculated at a 16.5% rate, while overseas profits tax is based on prevailing rates in the operating countries, with the current period's tax of HK$(2) thousand primarily representing deferred tax - Hong Kong profits tax is provided at a rate of **16.5%** on the estimated assessable profit for the period, after deducting available tax losses carried forward[37](index=37&type=chunk) - The Group's overseas profits tax is calculated at the prevailing tax rates in the countries where it operates[37](index=37&type=chunk) Taxation Amount Charged to Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30, HK$ thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Deferred tax | (3) | 2 | [Loss Per Share](index=16&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share for the period increased to HK4.1 cents from HK2.0 cents in the prior year, primarily due to the expanded loss for the period - Basic loss per share is calculated by dividing the unaudited loss attributable to owners of the Group by the weighted average number of ordinary shares in issue during the period, adjusted for the bonus element of the rights issue on May 8, 2025[39](index=39&type=chunk) Loss Per Share Calculation (Six Months Ended June 30, HK$ thousand) | Item | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Loss attributable to owners of the Company for the period | (22,635) | (10,489) | | Weighted average number of ordinary shares in issue (thousands) | 557,020 | 532,770 | | Basic loss per share (HK cents) | (4.1) | (2.0) | | Diluted loss per share is the same as basic loss per share as the assumed conversion of convertible preference shares would have an anti-dilutive effect. | | | [Dividends](index=16&type=section&id=Dividends) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - At the Board meeting held on August 22, 2025, the Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[41](index=41&type=chunk) [Trade and Other Receivables and Retention Monies](index=17&type=section&id=Trade%20and%20Other%20Receivables%20and%20Retention%20Monies) The Group's trade receivables generally have credit terms of 30 to 60 days; as of June 30, 2025, total trade and other receivables amounted to HK$49,273 thousand, retention monies to HK$42,373 thousand, with corresponding impairment provisions, and the maximum credit risk is the carrying amount of these balances - The credit period for the Group's trade receivables generally ranges from **30 to 60 days**[42](index=42&type=chunk) Ageing Analysis of Trade Receivables (HK$ thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | 0 to 30 days | 14,073 | 14,000 | | 31 to 60 days | 115 | 306 | | 61 to 90 days | 66 | 299 | | Over 90 days | 24,183 | 27,058 | | **Total trade receivables** | **38,437** | **41,663** | | Other receivables | 10,836 | 10,828 | | **Total trade and other receivables** | **49,273** | **52,491** | | Impairment of trade and other receivables | (4,249) | (4,086) | | Retention monies | 42,373 | 40,786 | | Impairment of retention monies | (598) | (146) | | **Total trade and other receivables and retention monies** | **86,799** | **89,045** | - Retention monies are contract assets under HKFRS 15, expected to be realized within the normal operating cycle[43](index=43&type=chunk) - The maximum credit risk exposure at the reporting date is the carrying amount of the aforementioned trade and other receivables and retention monies[43](index=43&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=18&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group's financial assets at fair value through profit or loss primarily consist of Hong Kong-listed equity securities, totaling HK$17,690 thousand as of June 30, 2025, a decrease from year-end 2024, classified as current assets and measured at Level 1 fair value using quoted closing prices in active markets Financial Assets at Fair Value Through Profit or Loss (HK$ thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Hong Kong-listed equity securities | 17,690 | 26,017 | - Listed equity securities are classified as current assets as management expects to realize these financial assets within twelve months after the reporting period[44](index=44&type=chunk) - Financial assets are measured at fair value, categorized as Level 1 fair value hierarchy, with valuation based on quoted closing prices in active markets[46](index=46&type=chunk)[47](index=47&type=chunk) [Restricted Cash Deposits](index=19&type=section&id=Restricted%20Cash%20Deposits) As of June 30, 2025, the Group's restricted cash deposits increased to HK$67,307 thousand, designated to settle potential claims related to a court case with a custodian, for which interest income was recognized Restricted Cash Deposits (HK$ thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Restricted Cash Deposits | 67,307 | 62,620 | - These cash deposits have been placed in designated interest-bearing bank accounts in Hong Kong as arranged by the custodian, and can only be used to settle potential claims related to the court case with the custodian in the future[48](index=48&type=chunk) - For the six months ended June 30, 2025, the Group recognized interest income of approximately **HK$4,687 thousand** from restricted cash deposits, which is included in other income and gains/losses[48](index=48&type=chunk) - As of June 30, 2025, the restricted cash deposits had not yet been released[49](index=49&type=chunk) [Trade and Other Payables and Accruals](index=19&type=section&id=Trade%20and%20Other%20Payables%20and%20Accruals) The Group's trade payables generally have credit terms of 30 to 60 days; as of June 30, 2025, total trade payables were HK$79,448 thousand, with an increase in balances over 90 days, and retention monies, other payables, and accruals totaled HK$63,606 thousand - The credit period for the Group's trade payables generally ranges from **30 to 60 days**[50](index=50&type=chunk) Ageing Analysis of Trade Payables (HK$ thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | 0 to 30 days | 32,754 | 43,022 | | 31 to 60 days | 8,015 | 6,457 | | 61 to 90 days | 6,999 | 5,346 | | Over 90 days | 31,680 | 21,000 | | **Total trade payables** | **79,448** | **75,825** | | Retention monies payable, other payables and accruals | 63,606 | 66,619 | | **Total** | **143,054** | **142,444** | [Share Capital](index=20&type=section&id=Share%20Capital) The Group underwent a capital reorganization during the reporting period, including capital reduction and share subdivision, and announced a rights issue on May 8, 2025, issuing 212,425,000 new ordinary shares, which altered the issued share capital structure and adjusted the conversion price of convertible preference shares Overview of Share Capital Changes (HK$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Authorised Share Capital** | | | | Ordinary shares (par value HK$0.01) | 900,000 | 900,000 | | Convertible preference shares (par value HK$0.01) | 100,000 | 100,000 | | **Issued and fully paid share capital** | | | | Ordinary shares | 6,373 | 42,486 | | Convertible preference shares | 800 | 8,000 | | **Total Equity** | **7,173** | **50,486** | - The Company completed a capital reorganization on April 9, 2025, involving a capital reduction (par value per share reduced from **HK$0.1** to **HK$0.01**) and a share subdivision (each share with a par value of **HK$0.1** subdivided into **ten shares** with a par value of **HK$0.01**)[51](index=51&type=chunk)[53](index=53&type=chunk) - A rights issue was announced on May 8, 2025, on the basis of **one rights share** for every **two existing ordinary shares** held, at a subscription price of **HK$0.051**. The rights issue was completed on May 20, 2025, with a total of **212,425,000 new ordinary shares** issued[52](index=52&type=chunk) - Due to the rights issue, the conversion price of the convertible preference shares was adjusted from **HK$0.75 per ordinary share** to **HK$0.57 per ordinary share**[52](index=52&type=chunk) - The Group has continuously maintained sufficient public float as required by the Listing Rules of the Stock Exchange[52](index=52&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period, and no treasury shares were held as of June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[54](index=54&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[54](index=54&type=chunk) [Events After the Reporting Period](index=22&type=section&id=Events%20After%20the%20Reporting%20Period) No events with significant financial impact on the Company occurred after the reporting period - No events with significant financial impact on the Company occurred after the reporting period[55](index=55&type=chunk) [Review of Interim Results](index=22&type=section&id=Review%20of%20Interim%20Results) The Group's unaudited interim results have been reviewed by the Company's Audit Committee and its external auditor, BDO Limited - The Group's unaudited interim results for the reporting period have been reviewed by the Company's Audit Committee and the Company's external auditor, BDO Limited, in accordance with Hong Kong Standard on Review Engagements 2410[56](index=56&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=22&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) All directors of the Company confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, throughout the reporting period - Following specific enquiries made to all Directors, all Directors confirmed that they have complied with the required standards set out in the Model Code throughout the reporting period[57](index=57&type=chunk) [Compliance with the Corporate Governance Code](index=22&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) During the reporting period, the Company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules - During the reporting period, the Company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[58](index=58&type=chunk)