[Financial and Operational Summary](index=1&type=section&id=Financial%20and%20Operational%20Summary) The company's financial and operational performance for the six months ended June 30, 2025, shows a decrease in revenue but an increase in profit attributable to owners of the Company and basic earnings per share Financial and Operational Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 6,575,509 | 7,255,090 | (9.4)% | | Profit attributable to owners of the Company | 245,510 | 239,077 | 2.7% | | Basic earnings per share (HK cents) | 8.89 | 8.57 | 3.7% | | Natural gas sales volume (Thousand cubic meters) | 1,688,073 | 1,738,419 | (2.9)% | | Natural gas sales volume to LNG wholesale customers (Thousand cubic meters) | 357,900 | 178,291 | 100.7% | | New piped gas connections for industrial and commercial customers | 1,757 | 1,345 | 30.6% | | Cumulative number of integrated energy projects | 262 | 216 | 21.3% | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, reflects a decrease in revenue and gross profit, but an increase in profit attributable to owners of the Company Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 6,575,509 | 7,255,090 | (9.4)% | | Cost of sales | (5,786,266) | (6,240,798) | (7.3)% | | Gross profit | 789,243 | 1,014,292 | (22.2)% | | Other income and losses | 123,142 | (57,746) | Improvement | | Profit before tax | 400,608 | 410,177 | (2.3)% | | Profit for the period | 248,181 | 262,838 | (5.6)% | | Profit attributable to owners of the Company | 245,510 | 239,077 | 2.7% | | Total comprehensive income for the period | 373,463 | 106,121 | 251.9% | | Total comprehensive income attributable to owners of the Company | 355,853 | 91,661 | 288.2% | | Basic earnings per share (HK cents) | 8.89 | 8.57 | 3.7% | | Diluted earnings per share (HK cents) | 8.89 | 8.57 | 3.7% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The consolidated statement of financial position as of June 30, 2025, indicates an increase in total equity but a significant rise in net current liabilities Key Data from Consolidated Statement of Financial Position as of June 30, 2025 | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 19,988,244 | 19,664,880 | 1.6% | | Current assets | 6,389,654 | 6,557,744 | (2.6)% | | Current liabilities | 11,304,106 | 9,675,694 | 16.8% | | Net current liabilities | (4,914,452) | (3,117,950) | (57.6)% | | Total assets less current liabilities | 15,073,792 | 16,546,930 | (8.9)% | | Total equity | 8,611,136 | 8,380,971 | 2.7% | | Non-current liabilities | 6,462,656 | 8,165,959 | (20.9)% | [Notes](index=6&type=section&id=Notes) This section provides detailed explanations and disclosures regarding the basis of preparation, accounting policies, and specific financial statement line items [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the HKEX Listing Rules, and should be read with the annual financial statements - The condensed consolidated financial statements are prepared in compliance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Listing Rules[8](index=8&type=chunk) - The statements should be read in conjunction with the annual financial statements for the year ended December 31, 2024[8](index=8&type=chunk) [2. Significant Accounting Policies](index=6&type=section&id=2.%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared using the historical cost convention, with certain assets measured at revalued amounts or fair value, and new accounting standards had no material impact - The financial statements are primarily prepared under the historical cost convention, with certain assets such as property, plant and equipment, financial instruments, and investment properties measured at revalued amounts or fair value[9](index=9&type=chunk) - The revised Hong Kong Financial Reporting Standards, including HKAS 21 (Amendment) "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," issued by the HKICPA, were adopted for the first time in this interim period[10](index=10&type=chunk)[11](index=11&type=chunk) - The application of new accounting standards had no material impact on the Group's financial position and performance for the current and prior periods[11](index=11&type=chunk) [3. Revenue](index=7&type=section&id=3.%20Revenue) The Group's revenue for the six months ended June 30, 2025, decreased by 9.4% year-on-year, with gas sales remaining the primary source, but gas pipeline construction and smart energy revenue significantly declined Revenue from Contracts with Customers Analysis (by Product or Service Type) | Product or Service Type | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gas sales | 5,619,687 | 5,860,550 | (4.1)% | | Gas pipeline construction | 380,049 | 580,215 | (34.5)% | | Smart energy | 332,361 | 548,680 | (39.4)% | | Value-added services | 151,416 | 169,567 | (10.7)% | | Sales of compressed natural gas/liquefied natural gas at vehicle filling stations | 91,996 | 96,078 | (4.2)% | | **Total** | **6,575,509** | **7,255,090** | **(9.4)%** | Timing of Revenue Recognition from Contracts with Customers | Timing of Revenue Recognition | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | At a point in time | 6,195,460 | 6,674,875 | | Over time | 380,049 | 580,215 | | **Total** | **6,575,509** | **7,255,090** | - Revenue from contracts with customers primarily originates from China[12](index=12&type=chunk) [4. Segment Information](index=8&type=section&id=4.%20Segment%20Information) The Group's operating segments include gas sales, gas pipeline construction, smart energy, value-added services, and vehicle filling station operations, all experiencing a decline in revenue and profit for the period - The Group's operating segments include gas sales, gas pipeline construction, smart energy, value-added services, and the operation of compressed natural gas/liquefied natural gas vehicle filling stations[14](index=14&type=chunk) Segment Revenue and Profit for the Six Months Ended June 30, 2025 | Segment | Revenue (HK$ Thousand) | Profit (HK$ Thousand) | | :--- | :--- | :--- | | Gas sales | 5,619,687 | 218,055 | | Gas pipeline construction | 380,049 | 181,600 | | Smart energy | 332,361 | 28,962 | | Value-added services | 151,416 | 40,821 | | Operation of compressed natural gas/liquefied natural gas vehicle filling stations | 91,996 | 1,529 | | **Consolidated** | **6,575,509** | **470,967** | | Profit before tax | | 400,608 | Segment Revenue and Profit for the Six Months Ended June 30, 2024 | Segment | Revenue (HK$ Thousand) | Profit (HK$ Thousand) | | :--- | :--- | :--- | | Gas sales | 5,860,550 | 290,763 | | Gas pipeline construction | 580,215 | 307,699 | | Smart energy | 548,680 | 38,642 | | Value-added services | 169,567 | 61,930 | | Operation of compressed natural gas/liquefied natural gas vehicle filling stations | 96,078 | 1,847 | | **Consolidated** | **7,255,090** | **700,881** | | Profit before tax | | 410,177 | [5. Other Income and Losses](index=10&type=section&id=5.%20Other%20Income%20and%20Losses) Other income and losses for the period turned from a net loss of HK$57,746 thousand in the prior year to a net gain of HK$123,142 thousand, primarily due to foreign exchange gains Details of Other Income and Losses | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Foreign exchange gain (loss) | 126,756 | (57,176) | | Net loss on disposal of property, plant and equipment | (1,436) | (570) | | Others | (2,178) | – | | **Total** | **123,142** | **(57,746)** | [6. Finance Costs](index=10&type=section&id=6.%20Finance%20Costs) Finance costs for the six months ended June 30, 2025, decreased by 24.8% year-on-year, mainly attributable to lower effective interest rates Details of Finance Costs | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on borrowings and lease liabilities | 267,937 | 321,570 | | Amortisation of loan financing fees related to bank borrowings | 17,730 | 34,385 | | **Total borrowing costs** | **285,667** | **355,955** | | Less: Amounts capitalised in construction in progress | (77,174) | (78,520) | | **Total** | **208,493** | **277,435** | [7. Income Tax Expense](index=10&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense for the six months ended June 30, 2025, increased by 3.5% year-on-year, primarily due to a higher effective tax rate Income Tax Expense | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | China corporate income tax | 152,427 | 147,339 | - The tax rate for PRC subsidiaries is **25%**, while Hong Kong profits tax rate is **16.5%** (no assessable profits for the current period)[20](index=20&type=chunk) - PRC tax authorities levied withholding tax of **HK$30,355 thousand** (2024: HK$17,493 thousand) on dividends paid by overseas Group entities[20](index=20&type=chunk) [8. Profit for the Period](index=11&type=section&id=8.%20Profit%20for%20the%20Period) Profit for the period is stated after deducting expenses such as amortization of other intangible assets, depreciation of right-of-use assets, and depreciation of property, plant, and equipment Items Deducted from Profit for the Period | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Amortisation of other intangible assets (included in cost of sales) | 41,437 | 42,010 | | Depreciation of right-of-use assets | 9,107 | 9,948 | | Depreciation of property, plant and equipment | 251,195 | 250,214 | [9. Dividends](index=11&type=section&id=9.%20Dividends) The Board recommended a final dividend of HK 2 cents per ordinary share for the year ended December 31, 2024, totaling HK$54,966 thousand, but no interim dividend is proposed for the current period - The Board has recommended a final dividend of **HK 2 cents** per ordinary share for the year ended December 31, 2024, totaling **HK$54,966 thousand**, which has been approved by shareholders[22](index=22&type=chunk) - No dividends were paid for the six months ended June 30, 2024, and 2025[23](index=23&type=chunk) - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025, after the end of this interim period[24](index=24&type=chunk) [10. Earnings Per Share](index=11&type=section&id=10.%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners of the Company for the six months ended June 30, 2025, both increased to HK 8.89 cents Earnings Per Share Calculation Data | Item | 2025 (HK$ Thousand/Thousand Shares) | 2024 (HK$ Thousand/Thousand Shares) | | :--- | :--- | :--- | | Profit (Profit attributable to owners of the Company for the period) | 245,510 | 239,077 | | Weighted average number of ordinary shares | 2,762,021 | 2,790,825 | | **Basic and diluted earnings per share (HK cents)** | **8.89** | **8.57** | [11. Trade Receivables](index=12&type=section&id=11.%20Trade%20Receivables) Total trade receivables as of June 30, 2025, increased to HK$2,177,368 thousand compared to December 31, 2024, with a notable increase in amounts aged 0 to 180 days - The Group generally grants an average credit period of **30 to 180 days** to its trade customers[27](index=27&type=chunk) Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 180 days | 1,223,535 | 767,545 | | 181 to 360 days | 254,112 | 271,130 | | Over 360 days | 699,721 | 694,172 | | **Total trade receivables** | **2,177,368** | **1,732,847** | - As of June 30, 2025, trade receivables included **HK$953,833 thousand** of overdue debts not considered in default, primarily from debtors with no history of bad debts or low credit risk local governments in China[28](index=28&type=chunk) [12. Trade Payables](index=12&type=section&id=12.%20Trade%20Payables) Total trade payables as of June 30, 2025, decreased to HK$1,453,832 thousand compared to December 31, 2024 - The average credit period for purchases of goods is **90 days**[29](index=29&type=chunk) Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 90 days | 714,749 | 746,400 | | 91 to 180 days | 102,115 | 108,586 | | Over 180 days | 636,968 | 692,389 | | **Total trade payables** | **1,453,832** | **1,547,375** | [Liquidity, Financial Resources and Working Capital](index=13&type=section&id=Liquidity,%20Financial%20Resources%20and%20Working%20Capital) This section details the Group's treasury management, liquidity position, and financial resources, highlighting a rise in net current liabilities and a decrease in the current ratio [Treasury Management and Financing](index=13&type=section&id=Treasury%20Management%20and%20Financing) The Group's treasury management aims to maintain a diversified and balanced debt profile and financing structure, ensuring sufficient liquidity for operations and growth through centralized coordination - The Group's financing and treasury policy aims to maintain a diversified and balanced debt profile and financing structure[30](index=30&type=chunk) - Cash flows and debt positions are continuously monitored through centralized coordination to enhance the cost-effectiveness of financing activities[30](index=30&type=chunk) - A robust funding base has been established, and the Group continuously seeks cost-effective financing channels to provide financial flexibility and sufficient liquidity for operations, potential investments, and growth plans[30](index=30&type=chunk) [Liquidity](index=13&type=section&id=Liquidity) As of June 30, 2025, the Group's total assets slightly increased, but net current liabilities significantly rose due to an increase in borrowings due within one year, leading to a decrease in the current ratio - As of June 30, 2025, the Group's total assets increased by **0.6%** to **HK$26,377,898 thousand**[31](index=31&type=chunk) - Net current liabilities increased by **57.6%** to **HK$4,914,452 thousand**, primarily due to an increase in borrowings due within one year[31](index=31&type=chunk) - The current ratio was approximately **0.6** (December 31, 2024: 0.7)[31](index=31&type=chunk) - Total borrowings and lease liabilities increased by **2.9%** to **HK$13,303,738 thousand**[31](index=31&type=chunk) - Total net debt was **HK$12,646,810 thousand**, with a net gearing ratio of approximately **1.47** (December 31, 2024: 1.35)[32](index=32&type=chunk) [Financial Resources](index=13&type=section&id=Financial%20Resources) The Group primarily funds its operations through internal resources and bank borrowings, all on normal commercial terms and unaffected by seasonality, with the Board deeming working capital sufficient - The Group generally funds its operations through internally generated resources and bank and other borrowings[33](index=33&type=chunk) - All bank and other borrowings are entered into on normal commercial terms and are not subject to seasonal fluctuations[33](index=33&type=chunk)[34](index=34&type=chunk) - The Board believes the Group has sufficient working capital to meet its requirements, given its sound financial and liquidity position[35](index=35&type=chunk) [Exchange Rate Fluctuation Risk](index=14&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) The Group's monetary assets and liabilities are primarily denominated in RMB, HKD, or USD, with business transactions mainly in RMB, and it actively seeks financial instruments to hedge against potential RMB depreciation - The Group's monetary assets and liabilities are primarily denominated in Renminbi, Hong Kong Dollars, or US Dollars, with business transactions mainly conducted in Renminbi[36](index=36&type=chunk) - Due to the appreciation of the Renminbi since mid-May 2025, the Group recorded foreign exchange gains on its bank borrowings denominated in US Dollars and Hong Kong Dollars[36](index=36&type=chunk) - The Group actively seeks appropriate financial instruments to hedge against potential Renminbi depreciation, although no hedging activities were undertaken as of June 30, 2025[36](index=36&type=chunk) [Employee Information](index=14&type=section&id=Employee%20Information) As of June 30, 2025, the Group had 5,143 employees, with approximately 99.7% located in China, and total employee benefit expenses increased due to a higher headcount - As of June 30, 2025, the Group had **5,143 employees** in Hong Kong and China (2024: 5,111 employees)[37](index=37&type=chunk) - Total employee benefit expenses amounted to approximately **HK$322,884 thousand** (2024: HK$317,661 thousand), with the increase primarily due to a higher headcount[37](index=37&type=chunk) - Approximately **99.7%** of the Group's employees are located in China[37](index=37&type=chunk) - Remuneration and bonus policies are determined based on individual employee performance, and directors' remuneration is recommended by the Remuneration Committee[38](index=38&type=chunk) [Pledge of the Group's Assets](index=15&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) As of June 30, 2025, and December 31, 2024, the Group had no pledged bank deposits to secure short-term general banking facilities - As of June 30, 2025, and December 31, 2024, no bank deposits were pledged to secure short-term general banking facilities granted to the Group[39](index=39&type=chunk) [Material Investments and Major Acquisitions and Disposals](index=15&type=section&id=Material%20Investments%20and%20Major%20Acquisitions%20and%20Disposals) During the review period, the Group did not undertake any material investments or significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the review period, the Group did not undertake any material investments, nor did it engage in any major acquisitions or disposals of subsidiaries, associates, or joint ventures[40](index=40&type=chunk) [Future Plans for Material Investments or Capital Assets](index=15&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Board had no specific plans for material investments or capital assets - As of June 30, 2025, the Board had no specific plans regarding material investments or capital assets[41](index=41&type=chunk) [Capital and Other Commitments](index=15&type=section&id=Capital%20and%20Other%20Commitments) As of June 30, 2025, capital expenditure contracted but not provided for in the condensed consolidated financial statements amounted to HK$92,022 thousand, primarily for the acquisition of property, plant, and equipment and right-of-use assets Capital Expenditure Commitments | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Capital expenditure contracted but not provided for | 92,022 | 98,076 | - Capital expenditure is primarily for the acquisition of property, plant and equipment and right-of-use assets[42](index=42&type=chunk) [Contingent Liabilities](index=15&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[43](index=43&type=chunk) [Business Review](index=15&type=section&id=Business%20Review) This section provides an overview of the Group's operations, key operating data, and a detailed analysis of revenue and profitability across its various business segments [Business Overview](index=15&type=section&id=Business%20Overview) The Group primarily invests in, operates, and manages gas pipeline infrastructure in China, distributing piped gas to residential, industrial, and commercial users, while also developing smart energy, providing value-added services, and operating vehicle filling stations - The Group's principal businesses include investment, operation, and management of gas pipeline infrastructure, and distribution of piped gas to residential, industrial, and commercial users[44](index=44&type=chunk) - Other businesses include the development of smart energy, sales of stoves and other related value-added services, and the operation of compressed natural gas/liquefied natural gas vehicle filling stations[44](index=44&type=chunk) [Piped Gas Distribution Projects](index=16&type=section&id=Piped%20Gas%20Distribution%20Projects) As of June 30, 2025, the Group held exclusive operating rights for 74 gas projects in China - As of June 30, 2025, the Group held exclusive operating rights for **74 gas projects** in China[45](index=45&type=chunk) [Key Operating Data](index=16&type=section&id=Key%20Operating%20Data) The Group's natural gas distribution business saw a slight decrease in operating locations but continued growth in connectable population and residential users, with total natural gas sales volume slightly down, yet LNG wholesale sales volume doubled Key Operating Data for the Six Months Ended June 30, 2025 | Indicator | 2025 | 2024 | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Number of operating locations | 74 | 75 | (1) | | Connectable population (Thousand persons) | 25,939 | 25,244 | 2.8% | | Connectable residential users (Thousand households) | 7,411 | 7,199 | 2.9% | | New piped gas connections during the period - Residential users | 105,560 | 171,112 | (38.3)% | | New piped gas connections during the period - Industrial customers | 186 | 138 | 34.8% | | New piped gas connections during the period - Commercial customers | 1,571 | 1,207 | 30.2% | | Cumulative number of connected piped gas customers - Residential users | 5,297,310 | 5,109,629 | 3.7% | | Cumulative number of connected piped gas customers - Industrial customers | 4,764 | 4,409 | 8.1% | | Cumulative number of connected piped gas customers - Commercial customers | 28,201 | 24,323 | 15.9% | | Penetration rate of residential piped connections | 71.5% | 71.0% | 0.5% | | Piped natural gas sales volume to retail customers - Residential users (Thousand cubic meters) | 442,897 | 466,566 | (5.1)% | | Piped natural gas sales volume to retail customers - Industrial customers (Thousand cubic meters) | 621,303 | 654,231 | (5.0)% | | Piped natural gas sales volume to retail customers - Commercial customers (Thousand cubic meters) | 80,246 | 84,245 | (4.7)% | | Natural gas sales volume to wholesale customers - Piped natural gas (Thousand cubic meters) | 160,999 | 331,808 | (51.5)% | | Natural gas sales volume to wholesale customers - LNG (Thousand cubic meters) | 357,900 | 178,291 | 100.7% | | Total natural gas sales volume (Thousand cubic meters) | 1,663,345 | 1,715,141 | (3.0)% | | Vehicle natural gas sales volume (Thousand cubic meters) | 24,728 | 23,278 | 6.2% | | Cumulative number of integrated energy projects in operation | 262 | 216 | 21.3% | | Integrated energy sales volume (Million kWh) | 818 | 1,255 | (34.8)% | [Overall Review and Revenue Analysis](index=18&type=section&id=Overall%20Review%20and%20Revenue%20Analysis) The Group's revenue for the six months ended June 30, 2025, decreased by 9.4% year-on-year, primarily due to lower revenue from gas pipeline construction and smart energy, but profit attributable to owners of the Company increased by 2.7% - Revenue decreased by **9.4%** to **HK$6,575,509 thousand**, primarily due to lower revenue from gas pipeline construction and smart energy[50](index=50&type=chunk)[52](index=52&type=chunk) - Profit attributable to owners of the Company increased by **2.7%** to **HK$245,510 thousand**[50](index=50&type=chunk) Revenue by Product and Service | Product and Service | 2025 (HK$ Thousand) | Share (%) | 2024 (HK$ Thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Gas sales | 5,619,687 | 85.5% | 5,860,550 | 80.8% | (4.1)% | | Gas pipeline construction | 380,049 | 5.8% | 580,215 | 8.0% | (34.5)% | | Smart energy | 332,361 | 5.0% | 548,680 | 7.6% | (39.4)% | | Value-added services | 151,416 | 2.3% | 169,567 | 2.3% | (10.7)% | | Sales of compressed natural gas/liquefied natural gas at vehicle filling stations | 91,996 | 1.4% | 96,078 | 1.3% | (4.2)% | | **Total** | **6,575,509** | **100%** | **7,255,090** | **100%** | **(9.4)%** | [Gas Sales](index=19&type=section&id=Gas%20Sales) Gas sales decreased by 4.1% year-on-year, mainly impacted by RMB depreciation against HKD, with declines in industrial, residential, and commercial sales, but growth in wholesale gas sales driven by a doubling of LNG sales volume Gas Sales by Customer Type | Customer Type | 2025 (HK$ Thousand) | Share (%) | 2024 (HK$ Thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Industrial customers | 2,383,814 | 42.4% | 2,609,084 | 44.5% | (8.6)% | | Residential users | 1,276,873 | 22.7% | 1,367,314 | 23.3% | (6.6)% | | Commercial customers | 339,315 | 6.1% | 367,219 | 6.3% | (7.6)% | | Wholesale customers | 1,619,685 | 28.8% | 1,516,933 | 25.9% | 6.8% | | **Total** | **5,619,687** | **100%** | **5,860,550** | **100%** | **(4.1)%** | - Gas sales accounted for **85.5%** of the Group's total revenue, serving as the primary source[53](index=53&type=chunk) - Gas sales revenue in RMB terms decreased by **2.7%**, with a further reduction in HKD terms mainly due to the depreciation of RMB against HKD[53](index=53&type=chunk) [Industrial Customers](index=19&type=section&id=Industrial%20Customers) Industrial customer gas sales decreased by 8.6% year-on-year, primarily due to RMB depreciation, lower gas consumption, and reduced average selling prices, yet it remains the main source of gas sales - Industrial customer gas sales decreased by **8.6%** to **HK$2,383,814 thousand**, primarily due to RMB depreciation, a **5.0%** decrease in gas consumption, and a **2.5%** reduction in average selling price[54](index=54&type=chunk) - The Group added **186 new industrial customers**[54](index=54&type=chunk) - Industrial customer gas sales accounted for **42.4%** of total gas sales, remaining the primary source[55](index=55&type=chunk) [Residential Users](index=20&type=section&id=Residential%20Users) Residential user gas sales decreased by 6.6% year-on-year, affected by RMB depreciation and lower gas consumption, but maintained stability due to ongoing pipeline connections and clean energy heating promotion - Residential user gas sales decreased by **6.6%** to **HK$1,276,873 thousand**, primarily due to RMB depreciation and a **5.1%** decrease in gas consumption[56](index=56&type=chunk) - The Group added **105,560 new residential user connections**[56](index=56&type=chunk) - The average selling price of natural gas to residential customers slightly decreased by **0.4%**[56](index=56&type=chunk) [Commercial Customers](index=20&type=section&id=Commercial%20Customers) Commercial customer gas sales decreased by 7.6% year-on-year, primarily due to RMB depreciation, reduced market demand, and lower gas consumption, despite an increase in the number of commercial customers - Commercial customer gas sales decreased by **7.6%** to **HK$339,315 thousand**, primarily due to RMB depreciation, a **4.7%** decrease in gas consumption, and a **1.8%** reduction in average selling price[57](index=57&type=chunk) - The Group added **1,571 new commercial customers**, resulting in a **5.9%** increase in the number of commercial customers[57](index=57&type=chunk) - Demand for gas from restaurants, schools, and entertainment facilities decreased[57](index=57&type=chunk) [Wholesale Customers](index=20&type=section&id=Wholesale%20Customers) Wholesale customer gas sales increased by 6.8% year-on-year, mainly driven by a doubling of LNG sales volume, which offset the decline in piped natural gas sales volume - Wholesale customer gas sales increased by **6.8%** to **HK$1,619,685 thousand**, with sales revenue in RMB terms growing by **8.3%**[58](index=58&type=chunk) - Piped natural gas consumption decreased by **51.5%**, but the average selling price increased by **0.8%**[59](index=59&type=chunk) - LNG sales volume increased by **100.7%** to **357,900 thousand cubic meters**, but the average selling price decreased by **1.6%** due to lower international LNG prices[59](index=59&type=chunk) [Gas Pipeline Construction](index=21&type=section&id=Gas%20Pipeline%20Construction) Gas pipeline construction revenue significantly decreased by 34.5% year-on-year, primarily due to RMB depreciation and a weak domestic real estate market, leading to a substantial drop in residential user connection projects, despite an increase in average connection fees - Gas pipeline construction revenue was **HK$380,049 thousand**, a year-on-year decrease of **34.5%**[60](index=60&type=chunk) - The decline in revenue was mainly due to the depreciation of RMB against HKD and the weak performance of the domestic real estate industry[60](index=60&type=chunk) Gas Pipeline Construction Revenue by Customer Type | Customer Type | 2025 (HK$ Thousand) | Share (%) | 2024 (HK$ Thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Residential users | 319,804 | 84.1% | 511,051 | 88.1% | (37.4)% | | Non-residential customers | 60,245 | 15.9% | 69,164 | 11.9% | (12.9)% | | **Total** | **380,049** | **100%** | **580,215** | **100%** | **(34.5)%** | - Residential user gas pipeline construction revenue decreased by **37.4%**, mainly due to a reduction in completed connection projects from **171,112** to **105,560**, though the average connection fee increased from RMB2,712 to RMB2,790[63](index=63&type=chunk) - The gross profit margin for gas pipeline construction remained stable at **75.7%**[64](index=64&type=chunk) - The residential pipeline connection penetration rate was **71.5%**, and the Group will continue to increase market coverage through acquisitions[64](index=64&type=chunk) [Smart Energy](index=22&type=section&id=Smart%20Energy) Smart energy revenue decreased by 39.4% year-on-year, but the Group is actively expanding new business networks such as natural gas distributed energy, photovoltaic power generation, incremental distribution networks, and charging stations to meet diverse customer energy demands - Smart energy revenue was **HK$332,361 thousand**, a year-on-year decrease of **39.4%**[65](index=65&type=chunk) - The Group is leveraging its gas project market and customer base to establish a broad network of new businesses, including natural gas distributed energy, photovoltaic power generation, incremental distribution networks, and charging stations[65](index=65&type=chunk) - Smart energy business accounted for **5.0%** of total revenue, and the Group will continue to explore operating models and expand energy projects[65](index=65&type=chunk) [Value-Added Services](index=23&type=section&id=Value-Added%20Services) Value-added services revenue decreased by 10.7% year-on-year, mainly due to a decline in pipeline modification services and sales of corrugated pipes and alarms, though sales of stoves and other related services (excluding pipeline modification) increased by 7.3% in RMB terms - Value-added services revenue was **HK$151,416 thousand**, a year-on-year decrease of **10.7%**, primarily impacted by RMB depreciation[66](index=66&type=chunk) - The decrease in revenue was mainly due to a **37.8%** reduction in pipeline modification services and sales of corrugated pipes and alarms, from HK$64,211 thousand to **HK$39,958 thousand**[66](index=66&type=chunk) - Sales of stoves and other related services (excluding pipeline modification, etc.) increased by **7.3%** in RMB terms[66](index=66&type=chunk) - The Group is actively developing its own brand "Zhongyu Phoenix" gas water heaters, cooking appliances, and wall-mounted boilers, and expanding its market through online shopping platforms like "Zhongyu iHome"[66](index=66&type=chunk) [Sales of Compressed Natural Gas/Liquefied Natural Gas at Vehicle Filling Stations](index=23&type=section&id=Sales%20of%20Compressed%20Natural%20Gas%2FLiquefied%20Natural%20Gas%20at%20Vehicle%20Filling%20Stations) Revenue from vehicle filling stations decreased by 4.2% year-on-year, primarily due to RMB depreciation and lower average selling prices, despite an increase in vehicle natural gas sales volume. The Group owns 56 operational and 7 under-construction filling stations - Revenue from vehicle filling stations was **HK$91,996 thousand**, a year-on-year decrease of **4.2%**, primarily impacted by RMB depreciation[67](index=67&type=chunk) - Natural gas sales to vehicles increased by **6.2%** to **24,728 thousand cubic meters**, but the average selling price decreased by **8.5%** to RMB3.43 per cubic meter[67](index=67&type=chunk) - The Group operates **56** compressed natural gas/liquefied natural gas vehicle filling stations and has **7** under construction[67](index=67&type=chunk) [Gross Profit Margin](index=24&type=section&id=Gross%20Profit%20Margin) The overall gross profit margin for the period was 12.0%, a year-on-year decrease, mainly due to a reduced gross profit margin from sales of compressed natural gas/liquefied natural gas at vehicle filling stations - The overall gross profit margin was **12.0%** (2024: 14.0%), with the decrease primarily due to a reduction in the gross profit margin from sales of compressed natural gas/liquefied natural gas at vehicle filling stations[68](index=68&type=chunk)[69](index=69&type=chunk) - The gross profit margin for piped natural gas sales remained stable at **7.6%**[69](index=69&type=chunk) - The gross profit margin for gas pipeline construction remained stable at **75.7%**[69](index=69&type=chunk) - The smart energy gross profit margin increased to **14.4%** (2024: 10.2%), mainly due to the rapid development of integrated energy business and improved management operations[69](index=69&type=chunk) - The value-added services gross profit margin increased to **88.2%** (2024: 80.2%), primarily due to increased gross profit margins from sales of self-closing valves, corrugated pipes, and alarms, as well as the higher gross profit margin of newly launched gas pipeline beautification services[69](index=69&type=chunk) - The gross profit margin for sales of compressed natural gas/liquefied natural gas at vehicle filling stations was **1.1%** (2024: 2.8%), as the decrease in average selling price exceeded the decrease in procurement costs[69](index=69&type=chunk) [Other Income and Losses (Details)](index=24&type=section&id=Other%20Income%20and%20Losses%20(Details)) The Group recognized net other income of HK$123,142 thousand during the review period, primarily from foreign exchange gains due to RMB appreciation - The Group recognized net other income of **HK$123,142 thousand** during the review period (2024: net other losses of HK$57,746 thousand)[70](index=70&type=chunk) - This primarily stemmed from a net foreign exchange gain of **HK$12,756 thousand** (2024: net foreign exchange loss of HK$57,176 thousand), mainly due to the appreciation of the Renminbi as of June 30, 2025[70](index=70&type=chunk) [Selling and Distribution Costs and Administrative Expenses](index=24&type=section&id=Selling%20and%20Distribution%20Costs%20and%20Administrative%20Expenses) Selling and distribution costs decreased by 12.8% year-on-year due to lower salaries from reduced value-added services, while administrative expenses increased by 6.9% due to higher professional fees and insurance expenses - Selling and distribution costs decreased by **12.8%** to **HK$104,445 thousand**, primarily due to lower salaries resulting from a decrease in value-added services[71](index=71&type=chunk) - Administrative expenses increased by **6.9%** to **HK$297,674 thousand**, mainly due to higher professional fees and insurance expenses[71](index=71&type=chunk) [Finance Costs (Details)](index=24&type=section&id=Finance%20Costs%20(Details)) Finance costs for the six months ended June 30, 2025, decreased by 24.8% year-on-year, primarily due to a reduction in effective interest rates - Finance costs decreased by **24.8%** to **HK$208,493 thousand**, primarily due to a reduction in effective interest rates[72](index=72&type=chunk) [Income Tax Expense (Details)](index=25&type=section&id=Income%20Tax%20Expense%20(Details)) Income tax expense for the six months ended June 30, 2025, increased by 3.5% year-on-year, mainly due to an increase in the Group's effective tax rate - Income tax expense increased by **3.5%** to **HK$152,427 thousand**, primarily due to an increase in the Group's effective tax rate[73](index=73&type=chunk) [Profit Attributable to Owners of the Company](index=25&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) Profit attributable to owners of the Company for the six months ended June 30, 2025, increased by 2.7% compared to the same period last year - Profit attributable to owners of the Company was **HK$245,510 thousand**, an increase of **2.7%** compared to the same period last year[74](index=74&type=chunk) [Net Profit Margin](index=25&type=section&id=Net%20Profit%20Margin) The net profit margin for the six months ended June 30, 2025, improved to 3.7% compared to the prior year Net Profit Margin | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Net profit margin | 3.7% | 3.3% | [Earnings Per Share (Details)](index=25&type=section&id=Earnings%20Per%20Share%20(Details)) Basic and diluted earnings per share attributable to owners of the Company for the six months ended June 30, 2025, both increased compared to the prior year Earnings Per Share | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic earnings per share | 8.89 | 8.57 | | Diluted earnings per share | 8.89 | 8.57 | [Net Asset Value Per Share](index=25&type=section&id=Net%20Asset%20Value%20Per%20Share) Net asset value per share attributable to owners of the Company as of June 30, 2025, increased by 4.1% compared to December 31, 2024 Net Asset Value Per Share | Indicator | June 30, 2025 (HK$) | December 31, 2024 (HK$) | | :--- | :--- | :--- | | Net asset value per share | 2.77 | 2.66 | [Outlook](index=25&type=section&id=Outlook) Facing global economic slowdown and domestic real estate challenges, the Group focuses on its core city gas business, expanding smart energy, enhancing refined management, optimizing financing costs, driving business innovation, exploring carbon asset management, and deepening digital transformation, while strengthening ESG governance for long-term sustainable development - The global economic recovery is slowing, Sino-US tariffs are restrictive, and the sluggish real estate sector is dragging down the domestic industrial economy[78](index=78&type=chunk) - The Group adheres to a "back to basics" approach, focusing on its core city gas business to consolidate its foundation, breaking industry constraints through smart energy expansion, and mitigating external risks with refined management[78](index=78&type=chunk) - In the first half, there were zero major production safety accidents, and debt costs were significantly reduced through capital structure adjustments[79](index=79&type=chunk) - In the second half, the Group will continue to focus on stable operations, strengthen the rectification of major hidden dangers, enhance emergency response capabilities, and continuously optimize financing costs[79](index=79&type=chunk) - The urban gas business will further drive business innovation, expand commercial and agricultural project development, and in value-added services, focus on gas pipeline beautification and insurance, and expand the external market for its own brand kitchen appliance sub-products[79](index=79&type=chunk) - In energy trading, the Group successfully opened international LNG trade channels and will continue to explore new windows of opportunity for more international business cooperation[79](index=79&type=chunk) - The smart energy business will focus on biomass energy utilization, coupled with photovoltaics, wind power, heat pumps, energy storage, and waste heat, to provide zero-carbon park construction solutions and explore carbon asset management[80](index=80&type=chunk) - In terms of information technology, the Group will continue to enhance its digital system construction, focusing on upgrading and reconstructing core business application systems in the second half, empowering digital and intelligent transformation through Artificial Intelligence (AI) technology[81](index=81&type=chunk) - Regarding ESG, the Group will intensify governance risk identification, promote green finance cooperation, strengthen precise alignment of funds with low-carbon projects, and transform ESG concepts into a shared consensus and conscious action among all employees[81](index=81&type=chunk) - In the future, the Group will adhere to the "dual-driven, integrated development" business strategy, enhancing efficiency through organizational optimization, reducing costs and increasing efficiency through refined management, and empowering development through digital and intelligent transformation to achieve long-term sustainable growth[81](index=81&type=chunk) [Corporate Governance and Other Information](index=28&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the Company's corporate governance practices, including directors' and substantial shareholders' interests, compliance with governance codes, and the role of the Audit Committee [(a) Directors' Interests](index=28&type=section&id=%28a%29%20Directors%27%20Interests) As of June 30, 2025, several directors held interests in the Company's shares or related shares, with Mr. Wang Wenliang and his spouse, Ms. Feng Haiyan, collectively holding approximately 29.12% of the equity Directors' Long Positions in the Company's Shares and/or Related Shares | Director Name | Number of Shares and/or Related Shares | Nature of Interest | Approximate Shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Wang Wenliang | 800,225,206 | Beneficial interest/Interest in controlled corporation/Spouse's interest | 29.12% | | Mr. Yao Zhisheng | 188,000,000 | Interest in controlled corporation | 6.84% | | Mr. Lü Xiaoqiang | 19,002,179 | Beneficial interest | 0.69% | | Mr. Jia Kun | 7,055,031 | Beneficial interest | 0.26% | | Mr. Peng Jun | 396,000 | Beneficial interest | 0.01% | | Mr. Li Chunyan | 1,510,761 | Beneficial interest | 0.05% | | Ms. Liu Yujie | 502,900 | Beneficial interest | 0.02% | - Mr. Wang Wenliang beneficially owns a **51%** interest through Harmony Investment Holdings Limited and directly holds a portion of shares, while his spouse, Ms. Feng Haiyan, also directly holds a portion of shares[85](index=85&type=chunk) - The interests of Mr. Lü Xiaoqiang and Mr. Li Chunyan include related shares issuable under the share option scheme[85](index=85&type=chunk) [(b) Substantial Shareholders' Interests in the Company](index=30&type=section&id=%28b%29%20Substantial%20Shareholders%27%20Interests%20in%20the%20Company) As of June 30, 2025, China Gas Holdings Limited was the Company's largest substantial shareholder, holding 37.49% of the equity, with Harmony Investment Holdings Limited and Ms. Feng Haiyan also holding significant stakes Substantial Shareholders' Long Positions in the Company's Shares | Shareholder Name | Nature of Interest | Number of Shares | Approximate Shareholding (%) | | :--- | :--- | :--- | :--- | | China Gas Holdings Limited | Interest in controlled corporation | 1,030,402,000 | 37.49% | | Harmony Investment Holdings Limited | Beneficial interest | 767,962,289 | 27.94% | | Ms. Feng Haiyan | Beneficial interest/Interest in controlled corporation/Spouse's interest | 800,225,206 | 29.12% | | Huizi International Investment Limited | Beneficial interest | 188,000,000 | 6.84% | - China Gas Holdings Limited holds shares through its wholly-owned subsidiary, Rich Legend International Limited[87](index=87&type=chunk) - Ms. Feng Haiyan's interests include shares directly held by her and interests deemed to be held by Harmony Investment Holdings Limited and Mr. Wang Wenliang[87](index=87&type=chunk) [Corporate Governance Code](index=31&type=section&id=Corporate%20Governance%20Code) The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[89](index=89&type=chunk) [Standard of Dealings in Securities by Directors](index=31&type=section&id=Standard%20of%20Dealings%20in%20Securities%20by%20Directors) The Company has adopted and complied with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, with all directors confirming compliance - The Company has adopted and complied with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[90](index=90&type=chunk) - All directors have confirmed their compliance with the required dealing standards and the Model Code[90](index=90&type=chunk) [Audit Committee](index=31&type=section&id=Audit%20Committee) The Company's Audit Committee has reviewed the Group's accounting principles, practices, and financial reporting matters with management, including the interim results, with no internal disagreements on accounting treatments - The Audit Committee comprises independent non-executive directors Mr. Li Chunyan, Dr. Liu Ke, and Ms. Liu Yujie[91](index=91&type=chunk) - The Audit Committee has reviewed the Group's accounting principles and practices and financial reporting matters with management, including the interim results[91](index=91&type=chunk) - There were no disagreements within the Audit Committee regarding the accounting treatments adopted by the Company[91](index=91&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=32&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period ended June 30, 2025, the Company repurchased 29,390,000 shares on the Stock Exchange for a total consideration of HK$126,103,560, aiming to enhance net asset value per share and earnings per share - During the period ended June 30, 2025, the Company repurchased **29,390,000 shares** on the Stock Exchange for a total consideration of **HK$126,103,560**[92](index=92&type=chunk) - The share repurchases were aimed at enhancing the Company's net asset value per share and earnings per share[92](index=92&type=chunk) Share Repurchase Details | Month of Repurchase | Total Shares Repurchased | Repurchase Price Per Share (HK$) - Lowest | Repurchase Price Per Share (HK$) - Highest | Total Consideration (HK$) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 5,900,000 | 4.33 | 4.56 | 26,326,290 | | March 2025 | 1,500,000 | 4.14 | 4.29 | 6,363,790 | | April 2025 | 19,990,000 | 3.95 | 4.46 | 84,790,940 | | May 2025 | 2,000,000 | 4.28 | 4.34 | 8,622,540 | - The repurchased shares were cancelled on March 19, 2025, and June 20, 2025[92](index=92&type=chunk) [Publication of Information on the HKEX and the Company's Website](index=32&type=section&id=Publication%20of%20Information%20on%20the%20HKEX%20and%20the%20Company%27s%20Website) This announcement has been published on the HKEX and the Company's website, with the interim report to be published in September 2025 - This announcement has been published on the HKEX website www.hkex.com.hk and the Company's website www.zhongyuenergy.com[93](index=93&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be published on the HKEX and the Company's website in September 2025[93](index=93&type=chunk) [Board of Directors](index=32&type=section&id=Board%20of%20Directors) The Company's Board of Directors comprises six executive directors, including Mr. Wang Wenliang (Chairman), and three independent non-executive directors, including Mr. Li Chunyan - The Board of Directors includes executive directors Mr. Wang Wenliang (Chairman), Mr. Yao Zhisheng (Vice Chairman), Mr. Lü Xiaoqiang (Chief Executive Officer), Mr. Jia Kun (Executive President), Mr. Peng Jun, and Mr. Wang Jichao[94](index=94&type=chunk) - Independent non-executive directors include Mr. Li Chunyan, Dr. Liu Ke, and Ms. Liu Yujie[94](index=94&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SHENWAN HONGYUAN (H.K.) LIMITED 申萬宏源（香港）有限公司 於 香 港 註 冊 成 立 之 有 限 公 司 ） （股份代號：218） 截至二零二五年六月三十日止六個月之中期業績 申萬宏源（香港）有限公司（「本公司」）之董事局（「董事局」）欣然公佈，本公司及其 附屬公司（「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 連同上年度同期之比較數字。 簡明綜合損益表 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | | （未經審核） | （未經審核） | | | 附註 | 千港元 | 千港元 | | 收入 | 3 | 306,540 | 146,216 | | — 使用實際利率法計算之利息收入 | | 104,766 | 73,970 | | — 於香港財務報告準則 ...

[Financial and Operating Summary](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E7%87%9F%E6%A5%AD%E6%91%98%E8%A6%81) This section provides a concise overview of the Group's financial performance, operating statistics, and fleet information for the first half of 2025 [Group Financial Statistics](index=4&type=section&id=%E9%9B%86%E5%9C%98%E8%B2%A1%E5%8B%99%E7%B5%B1%E8%A8%88%E6%95%B8%E5%AD%97) For the six months ended June 30, 2025, Cathay Group reported robust financial performance with a 9.5% increase in revenue and a slight 1.1% rise in profit attributable to shareholders 2025 First Half Key Financial Results | Metric | 2025 First Half | 2024 First Half | Change | | :--- | :--- | :--- | :--- | | **Revenue** | HKD 54.309 billion | HKD 49.604 billion | +9.5% | | **Profit Attributable to Cathay Group Shareholders** | HKD 3.651 billion | HKD 3.613 billion | +1.1% | | **Earnings Per Ordinary Share (Basic)** | 56.7 HK cents | 52.4 HK cents | +8.2% | | **Dividend Per Ordinary Share** | 20 HK cents | 20 HK cents | – | 2025 June 30 Key Financial Position | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Funds Attributable to Cathay Group Shareholders** | HKD 51.654 billion | HKD 52.500 billion | -1.6% | | **Net Borrowings** | HKD 56.342 billion | HKD 57.941 billion | -2.8% | | **Available Unrestricted Liquidity** | HKD 21.504 billion | HKD 19.073 billion | +12.7% | | **Net Debt to Equity Ratio** | 1.09 times | 1.10 times | -0.01 times | [Operating Statistics](index=4&type=section&id=%E7%87%9F%E6%A5%AD%E7%B5%B1%E8%A8%88%E6%95%B8%E5%AD%97) In the first half of 2025, the Group's overall capacity (Available Tonne Kilometers) increased by 15.9% year-on-year, with Cathay Pacific's passenger load factor improving to 84.8% - Cathay Pacific's passenger numbers increased by **27.8%** year-on-year to **13.627 million**, with the passenger load factor rising from 82.4% to **84.8%**[10](index=10&type=chunk) - Cathay Cargo's carried cargo volume increased by **11.4%** year-on-year to **801 thousand tonnes**, though the cargo load factor slightly decreased from 59.9% to **58.6%**[10](index=10&type=chunk) - HK Express's passenger numbers increased by **33.5%** year-on-year to **3.791 million**, but the passenger load factor declined from 85.0% to **78.9%**[10](index=10&type=chunk) [Fleet Information](index=5&type=section&id=%E6%A9%9F%E9%9A%8A%E8%B3%87%E6%96%99) As of June 30, 2025, Cathay Group operated a total of 234 aircraft and had 93 new aircraft on order, demonstrating its commitment to future fleet expansion Group Fleet Size and Orders (as of June 30, 2025) | Airline | Aircraft in Operation | Aircraft on Order | | :--- | :--- | :--- | | Cathay Pacific | 179 | 71 | | HK Express | 41 | 22 | | Air Hong Kong | 14 | 0 | | **Group Total** | **234** | **93** | - The 93 new aircraft on order include **30 A330-900s**, **21 777-9 passenger aircraft**, and **6 A350F cargo aircraft**, aimed at fleet modernization and efficiency enhancement[12](index=12&type=chunk) [Chairman's Letter](index=6&type=section&id=%E4%B8%BB%E5%B8%AD%E8%87%B4%E5%87%BD) This section outlines the Group's performance, key business segment results, and future outlook, highlighting strategic investments and market confidence [Cathay Group Performance](index=6&type=section&id=%E5%9C%8B%E6%B3%B0%E9%9B%86%E5%9C%98%E7%9A%84%E8%A1%A8%E7%8F%BE) In the first half of 2025, Cathay Group reported a slight year-on-year increase in profit attributable to shareholders, driven by increased passenger volumes, stable cargo performance, and lower fuel prices 2025 First Half Performance Overview | Metric | Amount | Year-on-Year Change | | :--- | :--- | :--- | | Profit Attributable | HKD 3.651 billion | +1.1% | | Earnings Per Ordinary Share | 56.7 HK cents | +8.2% | | Interim Dividend | 20 HK cents per share | Flat | - The Group repurchased convertible bonds worth **HKD 4.558 billion** in January 2025, representing approximately **68%** of the total issued amount[16](index=16&type=chunk) - As of June 30, 2025, the Group's available unrestricted liquidity balance was **HKD 21.504 billion**[16](index=16&type=chunk) [Performance of the Four Core Businesses](index=6&type=section&id=%E5%9B%9B%E5%A4%A7%E6%A5%AD%E5%8B%99%E7%9A%84%E8%A1%A8%E7%8F%BE) Cathay Pacific's passenger revenue grew by 14.0%, while Cathay Cargo's revenue increased by 2.2%, demonstrating resilience, though HK Express recorded a pre-tax loss due to market factors - Cathay Pacific's passenger revenue was **HKD 34.208 billion**, a **14.0%** year-on-year increase, carrying **13.6 million passengers**, up **27.8%** year-on-year[17](index=17&type=chunk) - Cathay Cargo's revenue was **HKD 11.141 billion**, a **2.2%** year-on-year increase, showcasing business adaptability[18](index=18&type=chunk) - HK Express recorded a pre-tax loss of **HKD 524 million**, compared to a profit of HKD 66 million in the same period last year, primarily due to a temporary slowdown in Japan travel demand and new routes still maturing[19](index=19&type=chunk) [Performance of Subsidiaries and Associates](index=7&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E5%B1%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E6%A5%AD%E5%8B%99%E8%A1%A8%E7%8F%BE) Air Hong Kong maintained stable performance, while subsidiaries providing services to airlines saw improved results, and associate companies like Air China also showed better performance - Air Hong Kong recorded a pre-tax profit of **HKD 474 million**, largely stable compared to HKD 488 million in the same period last year, maintaining robust performance[20](index=20&type=chunk) - Associate companies' performance improved, mainly benefiting from Air China's enhanced revenue management and cost control, as well as Air Cargo's business expansion[20](index=20&type=chunk) [Outlook](index=7&type=section&id=%E5%89%8D%E6%99%AF) The Group expresses confidence in the future, investing over HKD 100 billion in its fleet, products, and digital innovation, with strong travel demand for Cathay Pacific and expected long-term profitability for HK Express - The Group is investing over **HKD 100 billion** in its fleet, cabins, lounges, and digital innovation, reaffirming its commitment to the Hong Kong International Aviation Hub[21](index=21&type=chunk) - HK Express faces short-term challenges, but flight bookings to Japan have rebounded, and new routes, despite needing time to develop, have shown enthusiastic initial responses, with long-term profitability expected[21](index=21&type=chunk) [Business Review](index=9&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides a detailed review of Cathay Pacific, Cathay Cargo, Lifestyle business, and the performance of key subsidiaries and associates, alongside the Group's strategic leadership directions [Cathay Pacific](index=9&type=section&id=%E5%9C%8B%E6%B3%B0%E8%88%AA%E7%A9%BA) In the first half of 2025, Cathay Pacific's passenger business continued its recovery, with revenue increasing by 14.0% and passenger load factor improving to 84.8% Cathay Pacific 2025 First Half Passenger Performance | Metric | 2025 First Half | Year-on-Year Change | | :--- | :--- | :--- | | Passenger Revenue | HKD 34.208 billion | +14.0% | | Available Seat Kilometers (ASK) | 66.792 billion | +26.3% | | Revenue Passenger Kilometers (RPK) | 56.651 billion | +30.0% | | Passengers Carried | 13.6 million | +27.8% | | Passenger Load Factor | 84.8% | +2.4 percentage points | | Passenger Yield | 60.4 HK cents | -12.3% | - The company launched passenger services to Hyderabad, Dallas Fort Worth, Urumqi, Rome, and Munich, and increased frequencies on other routes across its global network[24](index=24&type=chunk) - Awarded among the **top three best airlines globally** by Skytrax, also receiving accolades for "World's Best Economy Class" and "World's Best Inflight Entertainment"[14](index=14&type=chunk)[36](index=36&type=chunk) [Cathay Cargo](index=12&type=section&id=%E5%9C%8B%E6%B3%B0%E8%B2%A8%E9%81%8B) In the first half of 2025, Cathay Cargo's revenue reached HKD 11.141 billion, a 2.2% increase, demonstrating resilience despite market uncertainties like tariff changes Cathay Cargo 2025 First Half Performance | Metric | 2025 First Half | Year-on-Year Change | | :--- | :--- | :--- | | Cargo Revenue | HKD 11.141 billion | +2.2% | | Available Freight Tonne Kilometers (AFTK) | 7.336 billion | +8.1% | | Cargo Carried | 801 thousand tonnes | +11.4% | | Cargo Load Factor | 58.6% | -1.3 percentage points | | Cargo Yield | HKD 2.59 | -3.4% | - Despite the impact of increased US tariffs and the removal of de minimis exemptions on e-commerce demand, the company offset some negative effects by increasing other cargo shipments[42](index=42&type=chunk) - Awarded "Cargo Operator of the Year" by Air Transport World (ATW), recognizing its outstanding operational performance[57](index=57&type=chunk) [Lifestyle](index=15&type=section&id=%E7%94%9F%E6%B4%BB%E5%93%81%E5%91%B3) Cathay's Lifestyle business continued to grow in the first half of 2025, with increasing active membership and expanded product offerings across miles, hotels, retail, and experiences - Active Cathay membership continues to grow, with brand awareness and member engagement enhanced through initiatives like the "Cathay Member Premium Awards"[59](index=59&type=chunk) - Joint credit card partnerships with Standard Chartered Bank performed well in Asia Pacific, with re-launches in the US and Macau, while collaborations with fintech companies Mox Bank and Neo Financial helped acquire new customer segments[61](index=61&type=chunk)[63](index=63&type=chunk) - The "Miles Rewards" program expanded to **89 partner brands** and launched a global online shopping platform, "Miles Rewards Hub"; Cathay Holidays hotel platform expanded into four new markets[64](index=64&type=chunk)[65](index=65&type=chunk) - Successfully built in-house retail media sales capabilities, reducing reliance on agencies, and secured comprehensive media partnerships with premium brands like The Macallan[71](index=71&type=chunk)[76](index=76&type=chunk) [Performance and Business Review of Key Subsidiaries and Associates](index=17&type=section&id=%E9%87%8D%E8%A6%81%E9%99%84%E5%B1%AC%E5%8F%8A%E8%81%AF%E5%B1%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E8%A1%A8%E7%8F%BE%E5%8F%8A%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's subsidiaries and associates showed varied performance in the first half of 2025, with HK Express recording a loss due to market factors, while Air Hong Kong and aviation service providers improved [HK Express Airways Limited](index=17&type=section&id=%E9%A6%99%E6%B8%AF%E5%BF%AB%E9%81%8B%E8%88%AA%E7%A9%BA%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8) HK Express expanded aggressively in the first half of 2025, launching nine new routes, but recorded a pre-tax loss of HKD 524 million due to factors like a temporary slowdown in Japan travel demand HK Express 2025 First Half Operating Results | Metric | Amount (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | | Total Revenue | 3,171 | -0.1% | | Operating Expenses | (3,695) | +18.8% | | **(Loss)/Profit Before Net Finance Costs and Tax** | **(524)** | **-893.9%** | - Launched nine new routes in the first half, including Sendai, Ishigaki, Changzhou, and Cheongju, continuously expanding its Asian route network[71](index=71&type=chunk)[73](index=73&type=chunk) [Air Hong Kong Limited](index=19&type=section&id=%E9%A6%99%E6%B8%AF%E8%8F%AF%E6%B0%91%E8%88%AA%E7%A9%BA%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8) Air Hong Kong, primarily operating express cargo services for DHL Express, maintained stable performance in the first half of 2025, completing its fleet modernization to more fuel-efficient A330F freighters - Air Hong Kong's profit in the first half of 2025 was comparable to the same period in 2024, maintaining stable performance[84](index=84&type=chunk) - Completed its fleet modernization program, replacing A300-600F freighters with larger, more fuel-efficient A330F freighters[84](index=84&type=chunk) [Major Subsidiaries Providing Services to Airlines](index=19&type=section&id=%E7%82%BA%E8%88%AA%E7%A9%BA%E5%85%AC%E5%8F%B8%E6%8F%90%E4%BE%9B%E6%9C%8D%E5%8B%99%E7%9A%84%E9%87%8D%E5%A4%A7%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) As the aviation market recovered, subsidiaries providing services to airlines saw improved performance, including Cathay Pacific Catering, Cathay Pacific Cargo Terminal, and Hong Kong Airport Services - Cathay Pacific Catering: Produced **14.1 million inflight meals** in the first half, a **27%** year-on-year increase[82](index=82&type=chunk) - Cathay Pacific Cargo Terminal: Handled **795 thousand tonnes of cargo** in the first half, an **8%** year-on-year increase[85](index=85&type=chunk) - Hong Kong Airport Services: Handled **22.3%** more flights (ramp operations) and **26.5%** more flights (ground handling operations) year-on-year in the first half[87](index=87&type=chunk) [Major Associate Companies](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E8%81%AF%E5%B1%AC%E5%85%AC%E5%8F%B8) The Group's share of results from major associate companies improved, with Air China and Air Cargo showing better financial performance due to enhanced revenue management and business expansion - The Group's share of Air China's results improved; as of June 30, 2025, the net book value of the Group's investment in Air China was **HKD 9.936 billion**[88](index=88&type=chunk) - The Group's share of Air Cargo's results improved; the Group's shareholding was diluted from 21.36% to **21.01%** due to Air Cargo's exercise of its over-allotment option[88](index=88&type=chunk)[89](index=89&type=chunk)[93](index=93&type=chunk) [Our Leadership Directions](index=21&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E9%A0%98%E5%B0%8E%E6%96%B9%E5%90%91) Cathay's corporate strategy is centered on three leadership directions: safety and operational excellence, transformation into a digital pioneer, and leadership in sustainability - Cathay's three leadership directions form a crucial part of its corporate strategy: safety and operational excellence, transformation into a digital pioneer, and leadership in sustainability[91](index=91&type=chunk) [Safety and Operational Excellence](index=21&type=section&id=%E5%AE%89%E5%85%A8%E5%8F%8A%E5%8D%93%E8%B6%8A%E7%87%9F%E9%81%8B) Cathay prioritizes safety as the foundation of its success, maintaining a strong safety culture through a structured Safety Management System and leadership commitment - The company prioritizes safety, systematically ensuring the highest safety standards through a structured Safety Management System (SMS), and successfully passed the IATA Operational Safety Audit (IOSA) certification[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) - To prepare for the three-runway system, the company utilizes digital tools and an integrated operations center, improving flight punctuality by **4.7 percentage points** compared to the same period last year[97](index=97&type=chunk) [Digital Initiatives](index=22&type=section&id=%E6%95%B8%E7%A2%BC%E5%B7%A5%E4%BD%9C) Cathay is committed to transforming into a digital pioneer, investing over HKD 3 billion annually in technology R&D and making significant progress in data analytics, AI, cybersecurity, and digital talent development - Annually invests over **HKD 3 billion** in technology R&D and digital innovation, having developed over **85 machine learning models** to optimize operations[98](index=98&type=chunk)[102](index=102&type=chunk) - Established a new subsidiary, "Cathay Tech," dedicated to commercializing internally developed digital products (e.g., "Electronic Flight Bag") and collaborating with Hong Kong Science Park to support startups[102](index=102&type=chunk) - Opened a new office in Qianhai, Shenzhen, expanding its digital and IT teams in the Greater Bay Area to capitalize on AI opportunities[100](index=100&type=chunk) [Sustainability](index=23&type=section&id=%E5%8F%AF%E6%8C%81%E7%BA%8C%E7%99%BC%E5%B1%95) Cathay is committed to leadership in sustainability, pledging to achieve net-zero carbon emissions by 2050 and increase Sustainable Aviation Fuel (SAF) usage to 10% by 2030 - Key sustainability commitments include achieving **net-zero carbon emissions by 2050**, **10% SAF usage by 2030**, and significantly reducing single-use plastics[102](index=102&type=chunk) - Signed an agreement with Sinopec to uplift domestically produced SAF for some flights at Hong Kong International Airport and a SAF supply agreement with SK Energy in Korea[106](index=106&type=chunk) - As of June 30, 2025, the Group employed over **32,200 staff globally**, with approximately **27,300** based in Hong Kong[105](index=105&type=chunk) [Financial Review](index=26&type=section&id=%E8%B2%A1%E5%8B%99%E8%A9%95%E8%BF%B0) This section provides a detailed analysis of the Group's revenue, operating expenses, operating results, fuel costs, and financial position for the first half of 2025 [Revenue](index=26&type=section&id=%E6%94%B6%E7%9B%8A) In the first half of 2025, Cathay Group's total revenue increased by 9.5% year-on-year to HKD 54.309 billion, primarily driven by a 12.7% growth in passenger service revenue Cathay Group Revenue Breakdown (Six Months Ended June 30) | Revenue Category | 2025 (HKD million) | 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Passenger Services | 37,212 | 33,004 | +12.7% | | Cargo Services | 12,761 | 12,610 | +1.2% | | Other Services and Recoveries | 4,336 | 3,990 | +8.7% | | **Total Revenue** | **54,309** | **49,604** | **+9.5%** | [Operating Expenses](index=26&type=section&id=%E7%87%9F%E6%A5%AD%E9%96%8B%E6%94%AF) The Group's total operating expenses increased by 10.4% year-on-year to HKD 49.860 billion in the first half, mainly due to higher staff, landing, parking, and en-route charges driven by increased capacity Cathay Group Operating Expense Breakdown (Six Months Ended June 30) | Expense Category | 2025 (HKD million) | 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Staff | 9,382 | 7,770 | +20.7% | | Landing, Parking and En-route Charges | 8,076 | 6,572 | +22.9% | | Fuel (including hedging) | 14,654 | 14,160 | +3.5% | | **Total Operating Expenses** | **49,860** | **45,152** | **+10.4%** | - The company's cost per Available Tonne Kilometer (including fuel) decreased by **4.1%** from HKD 3.42 to **HKD 3.28**[116](index=116&type=chunk) - The company's cost per Available Tonne Kilometer (excluding fuel) decreased by **0.9%** from HKD 2.32 to **HKD 2.30**[117](index=117&type=chunk) [Operating Results Analysis](index=27&type=section&id=%E7%87%9F%E6%A5%AD%E6%A5%AD%E7%B8%BE%E5%88%86%E6%9E%90) In the first half of 2025, the Group's profit attributable to shareholders was HKD 3.651 billion, largely stable year-on-year, with a significant reduction in losses from associate companies contributing positively Operating Results Analysis (Six Months Ended June 30) | Item | 2025 (HKD million) | 2024 (HKD million) | Change | | :--- | :--- | :--- | :--- | | Profit After Tax (excluding non-recurring items) from Company and Subsidiaries | 3,832 | 3,846 | -0.4% | | Share of Losses from Associate Companies | (181) | (342) | -47.1% | | **Profit Attributable to Group Shareholders** | **3,651** | **3,613** | **+1.1%** | - Profit growth primarily stemmed from increased passenger and cargo revenue (**+HKD 4.430 billion**), offset by rising staff, fuel, and landing/parking costs[119](index=119&type=chunk) [Fuel Expenses and Hedging](index=28&type=section&id=%E7%87%83%E6%B2%B9%E9%96%8B%E6%94%AF%E5%8F%8A%E5%B0%8D%E6%B2%96) The Group's net fuel cost increased by 3.5% to HKD 14.654 billion in the first half, mainly due to a 19.0% increase in fuel consumption, partially offset by a 14.3% decrease in average aircraft fuel prices Group Fuel Cost Breakdown (Six Months Ended June 30) | Item | 2025 (HKD million) | 2024 (HKD million) | | :--- | :--- | :--- | | Total Fuel Cost | 14,436 | 14,221 | | Fuel Hedging Loss / (Profit) | 218 | (61) | | **Net Fuel Cost** | **14,654** | **14,160** | [Financial Position](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) As of June 30, 2025, the Group maintained a robust financial position with available unrestricted liquidity increasing to HKD 21.504 billion and net borrowings decreasing by 2.8% - Available unrestricted liquidity totaled **HKD 21.504 billion**, a **12.7%** increase from the end of 2024[121](index=121&type=chunk) - Net borrowings decreased by **2.8%** to **HKD 56.342 billion**[122](index=122&type=chunk) - Excluding leases without asset transfer elements, the net debt to equity ratio decreased from 0.90 times to **0.87 times**, indicating a healthy financial leverage level[122](index=122&type=chunk) [Review Report](index=29&type=section&id=%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) This section presents the conclusion of the independent review report on the Group's interim financial information [Review Report Conclusion](index=29&type=section&id=%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A%E7%B5%90%E8%AB%96) KPMG, the auditor, conducted a review of the Group's interim financial report in accordance with Hong Kong Standard on Review Engagements 2410 and found no material matters suggesting non-compliance with HKAS 34 - KPMG, the auditor, issued an unqualified review conclusion on the interim financial report[125](index=125&type=chunk)[126](index=126&type=chunk) [Condensed Financial Statements](index=30&type=section&id=%E7%B0%A1%E6%98%8E%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section provides the condensed consolidated income statement, statement of financial position, cash flow statement, and notes to the condensed financial statements [Consolidated Income Statement](index=30&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group reported total revenue of HKD 54.309 billion, operating profit of HKD 5.926 billion, and profit for the period attributable to ordinary equity holders of HKD 3.651 billion Consolidated Income Statement Summary (Six Months Ended June 30, 2025) | Metric | Amount (HKD million) | | :--- | :--- | | Total Revenue | 54,309 | | Operating Profit | 5,926 | | Profit Before Tax | 4,321 | | **Profit for the Period** | **3,651** | [Consolidated Statement of Financial Position](index=32&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets amounted to HKD 170.302 billion, with total liabilities of HKD 118.641 billion, resulting in net assets of HKD 51.661 billion Consolidated Statement of Financial Position Summary (as of June 30, 2025) | Metric | Amount (HKD million) | | :--- | :--- | | Net Non-Current Assets | 86,091 | | Net Current Liabilities | (34,430) | | **Net Assets** | **51,661** | | **Funds Attributable to Cathay Group Shareholders** | **51,654** | [Consolidated Cash Flow Statement](index=33&type=section&id=%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, the Group generated net cash inflow from operating activities of HKD 11.153 billion, with net cash outflows from investing and financing activities Consolidated Cash Flow Statement Summary (Six Months Ended June 30, 2025) | Metric | Amount (HKD million) | | :--- | :--- | | Net Cash Inflow from Operating Activities | 11,153 | | Net Cash Outflow from Investing Activities | (4,267) | | Net Cash Outflow from Financing Activities | (9,130) | | **Net Decrease in Cash and Cash Equivalents** | **(2,244)** | [Notes to the Condensed Financial Statements](index=35&type=section&id=%E7%B0%A1%E6%98%8E%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes provide detailed explanations of accounting policies, segment information, key income statement and balance sheet items, including capital commitments and contingent liabilities - Segment results show that Cathay Pacific recorded a pre-tax profit of **HKD 5.842 billion**, while HK Express recorded a loss of **HKD 524 million**[136](index=136&type=chunk) - The Board of Directors declared an interim dividend of **20 HK cents per share**, totaling **HKD 1.288 billion**[161](index=161&type=chunk) - At period-end, total approved and contracted capital commitments amounted to **HKD 97.545 billion**, with the vast majority (**HKD 96.58 billion**) for aircraft and related equipment[164](index=164&type=chunk) - Subsequent to the reporting period, the company exercised purchase rights to acquire an additional **14 Boeing 777-9 aircraft**[170](index=170&type=chunk) [Information Required by Listing Rules](index=48&type=section&id=%E6%8C%89%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E6%89%80%E9%9C%80%E6%8F%90%E4%BE%9B%E7%9A%84%E8%B3%87%E6%96%99) This section details the company's corporate governance practices, directors' interests, and major shareholders as required by the Listing Rules [Corporate Governance and Directors' Interests](index=48&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E8%91%A3%E4%BA%8B%E6%AC%8A%E7%9B%8A) The company complied with all code provisions of the Corporate Governance Code during the reporting period, and no directors or chief executives held any share interests in the company or its associated corporations - The company complied with all code provisions contained in Part 2 of Appendix C1 to the Listing Rules, "Corporate Governance Code," during the reporting period[172](index=172&type=chunk) - As of June 30, 2025, none of the company's directors or chief executives held any share interests in the company or any of its associated corporations[177](index=177&type=chunk) [Major Shareholders](index=49&type=section&id=%E5%A4%A7%E8%82%A1%E6%9D%B1) As of June 30, 2025, the company's major shareholders included Swire Pacific Limited and Air China Limited, which are deemed to jointly hold 74.96% of the share interests due to a shareholder agreement, with Qatar Airways Group holding 9.99% Major Shareholder Holdings (as of June 30, 2025) | Shareholder | Holding Percentage (%) | | :--- | :--- | | Air China (Attributable Interest) | 74.96 | | Swire Pacific (Attributable Interest) | 74.96 | | Qatar Airways Group | 9.99 | [Disclaimer](index=50&type=section&id=%E5%85%8D%E8%B2%AC%E8%81%B2%E6%98%8E) This section provides a disclaimer regarding forward-looking statements contained within the report [Forward-Looking Statements](index=50&type=section&id=%E5%89%8D%E7%9E%BB%E6%80%A7%E9%99%B3%E8%BF%B0) This report contains forward-looking statements based on assumptions, estimates, and forecasts, which are subject to inherent risks and uncertainties, and actual results may differ materially due to various uncontrollable factors - The report contains forward-looking statements, and actual results may differ materially from expectations due to various risks and uncertainties[179](index=179&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Forgame Holdings Limited 雲 遊 控 股 有 限 公 司 ˄ᯬ䮻ᴬ㗔ጦ䁫ᡀ・ѻᴹ䲀ޜਨ˅ （股份代號：484） 截至二零二五年六月三十日止六個月的 中期業績公告 雲遊控股有限公司（「本公司」或「雲遊」）董事（「董事」）會（「董事會」）公佈本公司及其附屬 公司（統稱「本集團」或「我們」）截至二零二五年六月三十日止六個月的未經審核合併中期 業績（「中期業績」）。中期業績乃根據國際會計準則第34號「中期財務報告」編製並經由本 公司獨立核數師中匯安達會計師事務所有限公司按照國際審閱準則第2410號「由實體的獨 立核數師執行的中期財務資料審閱」進行審閱。此外，中期業績亦經由本公司審核及合 規委員會（「審核及合規委員會」）審閱。 管理層討論與分析 業務回顧 二零二五年上半年，全球經濟雖經歷結構性調整，但復甦進程顯著受阻。美國關稅政策 的不確定性、俄烏戰爭的持續、中國國內市場的競爭加劇，以及高 ...

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份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Sunshine Insurance Group Company Limited 承董事會命 陽光保險集團股份有限公司 聯席公司秘書 舒高勇 香港，2025年8月22日 陽 光 保 險 集 團 股 份 有 限 公 司 （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股份代號：6963） 截至2025年6月30日止六個月之 未經審計中期業績公告 陽光保險集團股份有限公司（「本公司」）董事會謹此宣佈本公司及其附屬公司截至2025年6 月30日止六個月之未經審計中期業績。本業績公告刊載本公司2025年中期報告全文，並 符合香港聯合交易所有限公司(「香港聯交所」）證券上市規則中有關中期業績初步公告附 載的資料之要求。 本業績公告的中英文版本可在本公司網站 (www.sinosig.com)和香港聯交所網站 (www.hkexnews.hk)查閱。本公司2025年中期報告亦將 ...

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。 TechStar Acquisition Corporation （於開曼群島註冊成立的有限公司） （股份代號：7855） （權證代號：4855） | | | 2025年 | 2024年 | | --- | --- | --- | --- | | | | （未經審核）（未經審核） | | | | 附註 | 千港元 | 千港元 | | 收益 | 4 | – | – | | 利息收入 | | 1 | 2 | | 行政開支 | | (47,774) | (48,880) | | 權證負債公平值變動 | | (11,762) | – | | 除所得稅開支前虧損 | 5 | (59,535) | (48,878) | | 所得稅開支 | 6 | – | – | | 期內虧損及全面虧損總額 | | (59,535) | (48,878) | | 每股虧損 | 8 | 港元 | 港元 | | －基本及攤薄 | | ( ...

[Performance Overview](index=1&type=section&id=%E6%A5%AD%E7%B8%BE) The Group's financial performance for the first half of 2025 shows increased revenue and profit attributable to equity holders, alongside changes in comprehensive income and balance sheet items [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The Group recorded revenue of **RMB 561,692 thousand**, gross profit of **RMB 93,478 thousand**, and profit attributable to equity holders of **RMB 1,701,404 thousand** for the first half of 2025, with basic earnings per share of **RMB 0.33723**, showing growth from the prior period Condensed Consolidated Statement of Profit or Loss | Metric | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 561,692 | 518,038 | | Cost of Sales | (468,214) | (414,486) | | Gross Profit | 93,478 | 103,552 | | Other Income | 14,829 | 8,088 | | Interest Income | 78,164 | 295,169 | | Selling Expenses | (33,440) | (12,463) | | General and Administrative Expenses | (279,895) | (176,593) | | Share of Results of Associates | 2,048,529 | 2,734,677 | | Profit for the Period | 1,654,217 | 1,465,637 | | Profit Attributable to Equity Holders of the Company | 1,701,404 | 1,473,258 | | Basic Earnings Per Share | RMB 0.33723 | RMB 0.29201 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E5%A0%B1%E8%A1%A8) The Group's total comprehensive income for the first half of 2025 significantly increased to **RMB 3,243,017 thousand** from **RMB 1,196,013 thousand** in the prior period, primarily due to a turnaround in the share of other comprehensive income (expense) of associates Condensed Consolidated Statement of Comprehensive Income | Metric | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the Period | 1,654,217 | 1,465,637 | | Share of Other Comprehensive Income (Expense) of Associates | 1,588,677 | (270,274) | | Total Comprehensive Income for the Period | 3,243,017 | 1,196,013 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 3,290,204 | 1,203,634 | [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, the Group's total assets decreased to **RMB 27,406,376 thousand** from **RMB 29,105,715 thousand** at December 31, 2024, with reductions in net current assets and net assets, while total equity remained at **RMB 25,602,221 thousand** Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Non-current Assets | 15,914,768 | 15,686,102 | | Total Current Assets | 11,491,608 | 13,419,613 | | Total Current Liabilities | 1,635,457 | 1,835,649 | | Net Current Assets | 9,856,151 | 11,583,964 | | Total Assets Less Current Liabilities | 25,770,919 | 27,270,066 | | Net Assets | 25,602,221 | 27,097,881 | | Total Equity | 25,602,221 | 27,097,881 | [Notes to Financial Statements](index=6&type=section&id=%E9%99%84%E8%A8%BB) This section details the Group's organizational structure, accounting policies, segment information, and specific financial items, including provisions and receivables [Organization and Operations](index=6&type=section&id=%E7%B5%84%E7%B9%94%E5%8F%8A%E7%87%9F%E9%81%8B) Brilliance China Automotive Holdings Limited is incorporated in Bermuda, listed on the HKEX, with Shenyang Automotive Group Co., Ltd. as its ultimate largest shareholder, and its principal businesses are detailed in Note 4 - Company incorporated in Bermuda on June 9, 1992, with shares traded on the Main Board of the Hong Kong Stock Exchange[11](index=11&type=chunk) - Shenyang Automotive Group Co., Ltd. is considered the Company's single ultimate largest shareholder, indirectly holding a **29.99% equity interest**[11](index=11&type=chunk) [Compliance Statement and Accounting Policies](index=6&type=section&id=%E9%81%B5%E4%BE%8B%E8%81%B2%E6%98%8E%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated interim financial statements are prepared in accordance with HKFRS 34 and HKEX Listing Rules, adopting the same accounting policies as the 2024 annual financial statements, except for the adoption of revised HKFRSs - Condensed interim financial statements prepared in accordance with applicable disclosure provisions of the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting" issued by the HKICPA[13](index=13&type=chunk) - These statements are prepared using the same accounting policies as the consolidated annual financial statements for the year ended December 31, 2024, except for the adoption of revised HKFRSs[13](index=13&type=chunk) [Adoption of Revised HKFRSs](index=6&type=section&id=%E6%8E%A1%E7%B4%8D%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87) The Group first applied HKAS 21 (Amendment) "Lack of Exchangeability" during this period, but its adoption had no impact on the preparation and presentation of results and financial position for current or prior periods - The Group first applied HKAS 21 (Amendment) "Lack of Exchangeability"[15](index=15&type=chunk) - The adoption of revised HKFRSs had no impact on the preparation and presentation of the results and financial position for the current and prior periods[15](index=15&type=chunk) [Revenue and Segment Information](index=7&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's principal businesses include manufacturing and sales of BMW vehicles and parts, non-BMW vehicles and parts, and providing auto financing services, with non-BMW vehicle sales increasing and auto financing revenue decreasing in 1H 2025 - The Group's principal businesses include manufacturing and sales of BMW vehicles and parts through BMW Brilliance, non-BMW vehicles and parts through Jinbei Shenyang, Ningbo Yumin, and Mianyang Rui'an, and providing auto financing services through Brilliance East Asia Auto Finance[16](index=16&type=chunk) Revenue by Source | Revenue Source | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | Sales of non-BMW vehicles and auto parts | 481,951 | 405,380 | | Interest and service fee income from auto financing services | 79,741 | 112,658 | | **Total Revenue** | **561,692** | **518,038** | Segment Sales to External Customers | Segment | 1H 2025 Segment Sales to External Customers (RMB '000) | 1H 2024 Segment Sales to External Customers (RMB '000) | | :--- | :--- | :--- | | Manufacturing and sales of non-BMW vehicles and auto parts | 481,951 | 405,380 | | Manufacturing and sales of BMW vehicles and parts | 85,796,182 | 111,521,948 | | Providing auto financing services | 79,741 | 112,658 | | **Total** | **561,692** | **518,038** | [Profit Before Income Tax Expense](index=10&type=section&id=%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before income tax expense for the period decreased to **RMB 1,906,261 thousand** from **RMB 2,937,756 thousand** in the prior period, mainly due to significant increases in impairment losses on property, plant and equipment and research and development costs Items Deducted from Profit Before Income Tax Expense | Item | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | Allowance for expected credit losses on loans receivable | 34,344 | 24,608 | | Cost of inventories | 449,924 | 379,184 | | Amortisation of intangible assets | 15,519 | 9,439 | | Depreciation of property, plant and equipment | 54,203 | 48,862 | | Impairment loss on property, plant and equipment | 55,486 | – | | Employee costs | 145,550 | 116,157 | | Research and development costs | 52,701 | 16,579 | | Exchange losses, net | 21,269 | 42,577 | [Income Tax Expense](index=11&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for the period significantly decreased to **RMB 252,044 thousand** from **RMB 1,472,119 thousand** in the prior period, primarily due to a substantial reduction in PRC dividend withholding tax Income Tax Expense Breakdown | Item | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | PRC Enterprise Income Tax - Current Period | 2,044 | 969 | | PRC Dividend Withholding Tax | 250,000 | 1,474,000 | | **Total Income Tax Expense** | **252,044** | **1,472,119** | [Earnings Per Share](index=11&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for the six months ended June 30, 2025, was **RMB 0.33723**, with diluted earnings per share being the same as basic earnings per share due to no outstanding potentially dilutive ordinary shares - Basic earnings per share calculated based on profit attributable to equity holders of the Company of **RMB 1,701,404,000** divided by the weighted average of **5,045,269,000** ordinary shares[28](index=28&type=chunk) - Diluted earnings per share is the same as basic earnings per share as there were no potentially dilutive ordinary shares outstanding during the period[28](index=28&type=chunk) [Dividends](index=11&type=section&id=%E8%82%A1%E6%81%AF) The Company declared a special dividend of **HKD 1.0 per share**, totaling **RMB 4,738,677 thousand**, on March 3, 2025, and the Board declared an interim dividend of **HKD 0.8 per share** on August 22, 2025 Dividends Declared | Dividend Type | 1H 2025 (RMB '000) | 1H 2024 (RMB '000) | | :--- | :--- | :--- | | Special Dividend | 4,738,677 | 27,210,904 | | Interim Dividend | HKD 0.8/share (2025) | None (2024) | [Short-term Bank Deposits](index=12&type=section&id=%E7%9F%AD%E6%9C%9F%E9%8A%80%E8%A1%8C%E5%AD%98%E6%AC%BE) As of June 30, 2025, total short-term bank deposits were **RMB 1,236,152 thousand**, including **RMB 748,000 thousand** in time deposits and **RMB 488,152 thousand** in pledged and restricted short-term bank deposits, with restricted deposits primarily related to unauthorized guarantee events Short-term Bank Deposits Breakdown | Deposit Type | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Time Deposits | 748,000 | – | | Restricted Short-term Bank Deposits | 347,200 | 347,200 | | Short-term Bank Deposits Pledged for Bank Acceptance Bills | 140,952 | 234,915 | | **Total Short-term Bank Deposits** | **1,236,152** | **582,115** | - As of June 30, 2025, the Group had cumulatively repaid approximately **RMB 1,362,863,000** directly from restricted short-term deposits under PRC court orders, reducing the relevant restricted short-term deposits to approximately **RMB 347,200,000**[31](index=31&type=chunk) [Trade Receivables](index=13&type=section&id=%E6%87%89%E6%94%B6%E8%B3%A6%E6%AC%BE) As of June 30, 2025, total trade receivables amounted to **RMB 466,010 thousand**, with most amounts due in less than six months, and the Group maintains strict credit policies to mitigate credit risk Trade Receivables Composition | Trade Receivables Component | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables | 455,525 | 402,189 | | Amounts Due from Affiliated Companies | 10,485 | 1,362 | | **Total** | **466,010** | **403,551** | Aging Analysis of Trade Receivables | Aging Analysis | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Less than six months | 452,340 | 407,906 | | Six months to one year | 10,709 | 1,323 | | One year to two years | 1,599 | 883 | | Two years to five years | 19,302 | 20,629 | | Over five years | 19,387 | 17,957 | | Less: Allowance for Expected Credit Losses | (47,812) | (46,509) | | **Net** | **455,525** | **402,189** | - The Group's credit policy aims to minimize credit risk by conducting credit assessments for new customers and debtors and requiring deposits or letters of credit from major customers[33](index=33&type=chunk) [Trade Payables](index=14&type=section&id=%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE) As of June 30, 2025, total trade payables increased to **RMB 320,980 thousand** from **RMB 260,379 thousand** at December 31, 2024, with the majority of amounts due in less than six months Trade Payables Composition | Trade Payables Component | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Payables | 311,501 | 249,835 | | Amounts Due to Affiliated Companies | 9,479 | 10,544 | | **Total** | **320,980** | **260,379** | Aging Analysis of Trade Payables | Aging Analysis | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Less than six months | 239,456 | 178,048 | | Six months to one year | 13,959 | 9,828 | | One year to less than two years | 11,694 | 13,255 | | Two years or more | 46,392 | 48,704 | | **Total** | **311,501** | **249,835** | [Loss Provision](index=14&type=section&id=%E虧%E6%90%8D%E6%92%A5%E5%82%99) Loss provision primarily stems from estimated losses related to Jinbei Auto Control's unauthorized guarantees for Brilliance Auto Group Holdings Co., Ltd.'s bank borrowings, with **RMB 1,362,863 thousand** cumulatively settled as of June 30, 2025, and management deems the provision adequate - Loss provision refers to estimated losses arising from Jinbei Auto Control's unauthorized guarantees for bank borrowings of Brilliance Auto Group Holdings Co., Ltd[36](index=36&type=chunk) - The Group recognized a provision of approximately **RMB 1,917,062,000** for related losses in prior years[37](index=37&type=chunk) - As of June 30, 2025, the Group had cumulatively settled debts and related legal fees totaling approximately **RMB 1,362,863,000**, and management considers the provision adequate[37](index=37&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an in-depth review of the Group's business performance, market outlook, liquidity, capital structure, and significant events during the period [Business Discussion and Analysis](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) The Group's 1H 2025 revenue increased by **8.4%** to **RMB 561.7 million**, driven by electric and hybrid vehicle orders, but partially offset by reduced auto financing income; gross margin declined to **16.6%** due to new order setup costs and unrecovered fixed costs, while interest income significantly decreased by **73.5%**, and share of results of associates (BMW Brilliance) fell by **25.1%** due to a **16.7%** drop in sales - The Group's unaudited consolidated revenue for 1H 2025 was **RMB 561.7 million**, an **8.4% increase** from 1H 2024, primarily due to steady growth in orders from electric and hybrid vehicle manufacturers[38](index=38&type=chunk) - Unaudited gross profit margin decreased from **20.0%** in 1H 2024 to **16.6%** in 1H 2025, mainly due to additional initial setup costs for new orders and unrecovered fixed costs at Jinbei Shenyang[39](index=39&type=chunk) - Unaudited interest income decreased by **73.5%** from **RMB 295.2 million** in 1H 2024 to **RMB 78.2 million** in 1H 2025, attributed to lower interest rates and a general reduction in bank deposits, cash, and cash equivalents[40](index=40&type=chunk) - The Group's share of results of associates (BMW Brilliance) decreased by **25.1%** from **RMB 2,734.7 million** in 1H 2024 to **RMB 2,048.5 million** in 1H 2025, primarily due to a decline in BMW Brilliance's performance[43](index=43&type=chunk) BMW Brilliance Sales Volume | BMW Brilliance Model | 1H 2025 Sales Volume (units) | 1H 2024 Sales Volume (units) | Change (%) | | :--- | :--- | :--- | :--- | | 1 Series | 2 | 81 | -97.5% | | 3 Series | 85,486 | 103,099 | -17.1% | | 5 Series | 61,127 | 43,660 | 40.0% | | X1 | 32,588 | 51,289 | -36.5% | | X2 | 298 | – | 99.3% | | X3 | 37,188 | 68,562 | -45.8% | | X5 | 39,032 | 45,741 | -14.7% | | **Total** | **260,455** | **312,730** | **-16.7%** | | Of which BEV | 27,591 | 50,750 | -45.6% | [Outlook](index=18&type=section&id=%E5%B1%95%E6%9C%9B) China's economy expanded steadily in 1H 2025 with **11.4%** growth in total vehicle sales and **40.3%** in NEV sales; BMW Brilliance plans new models and "Neue Klasse" production, Jinbei Shenyang aims for capacity expansion, Brilliance East Asia Auto Finance seeks new business models, and new products from Mianyang Rui'an, Ningbo Yumin, and Yuxin JV are expected to launch - China's economy grew by **5.3%** year-on-year in 1H 2025, with total vehicle sales increasing by **11.4%** and new energy vehicle sales by **40.3%**[47](index=47&type=chunk) - BMW Brilliance's total sales decreased by **16.7%** in 1H 2025, but it will add several new models and is preparing for the production of "Neue Klasse" models starting in 2026[48](index=48&type=chunk)[49](index=49&type=chunk) - Jinbei Shenyang has resumed production of the Haise, Haise King, and EV models, with a focus on gradually increasing production capacity and improving domestic and international sales and after-sales service systems during the year[50](index=50&type=chunk) - Brilliance East Asia Auto Finance faces increased competition from banks entering the auto finance sector, narrowing profit margins, and limited funding, prompting it to seek new business models, lower-cost funding sources, and strengthen risk management[51](index=51&type=chunk) - Mianyang Rui'an will focus on "three key areas" (new market product development, cost control, and safe production for delivery), while Ningbo Yumin will deepen cooperation with OEMs like BYD and develop lightweight aluminum alloy new products[52](index=52&type=chunk)[53](index=53&type=chunk) - The production base of Yuxin Zhixing Technology (Shenyang) Co., Ltd. is expected to be completed and gradually put into operation in 2H 2025, with smart cockpit and display products developed for Zeekr anticipated to commence mass production soon[54](index=54&type=chunk) [Liquidity and Financial Resources](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's cash and cash equivalents significantly decreased to **RMB 5,857 million** from **RMB 10,539.6 million** at the end of 2024, while short-term bank deposits increased to **RMB 1,236.2 million** and short-term bank borrowings decreased to **RMB 130 million**, with both trade receivables and inventory turnover days increasing Liquidity and Financial Resources Summary | Metric | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 5,857,011 | 10,539,550 | | Statutory Reserve Deposits with Central Bank | – | 42,500 | | Short-term Bank Deposits | 1,236,152 | 582,115 | | Trade Payables | 320,980 | 260,379 | | Bills Payable | 178,560 | 279,853 | | Short-term Bank Borrowings | 130,000 | 330,000 | - For the six months ended June 30, 2025, the Group's trade receivables turnover days were **139 days** (Year ended December 31, 2024: **123 days**), and inventory turnover days were **119 days** (Year ended December 31, 2024: **77 days**)[60](index=60&type=chunk) [Capital Structure and Financial Policies](index=20&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B%E5%8F%8A%E8%B2%A1%E5%8B%99%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group's total assets were approximately **RMB 27,406.4 million**, primarily funded by share capital, reserves, total liabilities, and non-controlling interests, with **84.5%** of cash and cash equivalents denominated in RMB, and the Group manages short-term working capital and long-term capital expenditures through a combination of operational cash flow, bank borrowings, and other financing methods Funding Sources | Funding Source | As of June 30, 2025 (RMB '000) | As of Dec 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Assets | 27,406,400 | 29,105,700 | | Share Capital | 397,200 | 397,200 | | Reserves | 24,215,300 | 25,663,800 | | Total Liabilities | 1,804,200 | 2,007,800 | | Contribution from Non-controlling Interests | 989,700 | 1,036,900 | - Of the Group's cash and cash equivalents, **84.5%** was denominated in RMB and **15.5%** in other currencies, with the increase in foreign currency proportion mainly due to a decrease in RMB-denominated cash and cash equivalents[62](index=62&type=chunk) - The Group primarily meets short-term working capital needs through operating cash flow, short-term bank borrowings, issuance of bank acceptance bills, and credit purchases from suppliers, and funds long-term capital expenditures through a combination of operating cash flow, bank borrowings, dividends, and capital market fundraising[63](index=63&type=chunk) [Capital Expenditure and Commitments](index=21&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF%E5%8F%8A%E6%89%BF%E6%93%94) In 1H 2025, the Group incurred **RMB 1,248.5 million** in capital expenditure, mainly for tools, machinery, construction in progress, software, and investments in new associates and joint ventures, with contracted capital commitments of **RMB 210.8 million** primarily for plant and machinery purchases - In 1H 2025, the Group incurred capital expenditure of **RMB 1,248,500,000**, primarily for the purchase of tools and dies, machinery and equipment, construction in progress, special software, and investments in a new associate and a joint venture[64](index=64&type=chunk) - As of June 30, 2025, the Group's contracted capital commitments amounted to **RMB 210,800,000**, related to capital expenditure for the purchase of plant and machinery[65](index=65&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=21&type=section&id=%E6%8C%81%E6%9C%89%E4%B9%8B%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E8%B3%87%E4%BC%81%E6%A5%AD%E4%B9%8B%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the reporting period, the Group increased its equity interest in Jinbei Shenyang to **87.3364%** with an additional **RMB 500 million** investment; BMW Brilliance remains a key associate, contributing **RMB 2,051.6 million** in profit and **RMB 2,143.96 million** in dividends; and the newly formed Yuxin joint venture, with a **50%** stake, was acquired for **RMB 700 million** - The Company invested an additional **RMB 500,000,000** in Jinbei Shenyang, with the industrial and commercial registration change completed on July 7, 2025, increasing the Group's interest in Jinbei Shenyang from **80.72%** to **87.3364%**[66](index=66&type=chunk) - As of June 30, 2025, the Group held a **25% equity interest** in BMW Brilliance, with a carrying amount of **RMB 10,885,000,000**, representing **39.7%** of the Group's total assets[68](index=68&type=chunk) - The Group's share of BMW Brilliance's profit was **RMB 2,051,600,000**, a **25% decrease** year-on-year, and dividends of **RMB 2,143,960,000** were received[68](index=68&type=chunk) - Jinbei Auto Control and TCL Ningbo signed a strategic joint venture agreement to establish Yuxin, in which the Group holds a **50% equity interest** with an investment cost of **RMB 700,000,000** in cash[69](index=69&type=chunk) [New Businesses and Products](index=22&type=section&id=%E6%96%B0%E6%A5%AD%E5%8B%99%E5%8F%8A%E6%96%B0%E7%94%A2%E5%93%81) BMW Brilliance will accelerate "Neue Klasse" development for 2026 local production, Jinbei Shenyang has upgraded facilities and expanded sales, Brilliance East Asia Auto Finance focuses on NEVs and digital strategy, Ningbo Yumin secured new product orders and collaborates on lightweight aluminum, Mianyang Rui'an strengthens existing and new markets, and Yuxin's smart cockpit and display products for Zeekr are nearing mass production - BMW Brilliance will accelerate the development of the "Neue Klasse" new generation of vehicles, with the first locally produced model to be manufactured at the Lydia plant in Shenyang, expected to commence in 2026[71](index=71&type=chunk) - Jinbei Shenyang has completed production process upgrades, with Haise, Haise King, and EV models successively put into production, restoring **80 dealers** and **105 service stations** domestically, and gradually resuming and developing overseas channels[72](index=72&type=chunk) - Brilliance East Asia Auto Finance is increasingly focusing on the new energy vehicle sector and leveraging digital strategies to enhance operational efficiency, streamline organizational layers, and optimize cost structures[73](index=73&type=chunk) - Ningbo Yumin has secured **12 new product orders**, including sunroof guide rails for the new generation BMW X5 and Beijing Benz GLE models, and is collaborating with BYD on lightweight aluminum alloy products[74](index=74&type=chunk) - Yuxin's smart cockpit products and smart display products developed for Zeekr are expected to commence mass production soon[74](index=74&type=chunk) [Employees, Remuneration Policy and Training Programs](index=24&type=section&id=%E5%83%B1%E5%93%A1%E3%80%81%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96%E5%8F%8A%E5%9F%B9%E8%A8%93%E8%A8%88%E5%8A%83) As of June 30, 2025, the Group employed approximately **1,890 employees** with employee costs of **RMB 145.6 million**, maintaining competitive remuneration based on performance and offering diverse training programs covering professional skills, quality, management, and leadership Employee Metrics | Metric | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 1,890 | 1,400 | | Employee Costs (RMB '000) | 145,600 | 116,200 | - The Group is committed to ensuring employee salaries are competitive with industry practices and current market conditions, with remuneration determined based on performance[76](index=76&type=chunk) - The Group provides various online and in-person training programs covering professional skills, quality improvement, business and product knowledge, professional ethics and safety, ESG issues, anti-corruption, management skills, leadership, and teamwork[77](index=77&type=chunk) [Pledge of Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%BC%E8%A8%98) As of June 30, 2025, all short-term bank borrowings were unsecured; the Group pledged **RMB 141 million** in short-term bank deposits and approximately **RMB 38.1 million** in bank acceptance bills receivable from third parties and related parties as collateral for issued bank acceptance bills, with restricted short-term deposits of approximately **RMB 347.2 million** due to unauthorized guarantee events - As of June 30, 2025, all short-term bank borrowings were unsecured[78](index=78&type=chunk) - The Group pledged short-term bank deposits totaling **RMB 141,000,000** and bank acceptance bills receivable from third parties and affiliated companies of approximately **RMB 38,100,000** as collateral for issued bank acceptance bills[78](index=78&type=chunk) - As of June 30, 2025, due to litigation related to unauthorized guarantee events, the relevant restricted short-term deposits had been reduced to approximately **RMB 347,200,000**[79](index=79&type=chunk) [Plans for Material Investments or Additions of Capital Assets](index=25&type=section&id=%E6%9C%AA%E4%BE%86%E4%BD%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E6%B7%BB%E7%BD%AE%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E4%B9%8B%E8%A8%88%E5%8A%83) As of the date of this announcement, the Group has no future plans for material investments or additions of capital assets beyond those already disclosed - As of the date of this announcement, the Group has no future plans for material investments or additions of capital assets other than those already disclosed[80](index=80&type=chunk) [Gearing Ratio](index=25&type=section&id=%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's gearing ratio was approximately **0.07**, a decrease from **0.08** at December 31, 2024, primarily due to a reduction in current liabilities resulting from decreased short-term bank borrowings - As of June 30, 2025, the Group's gearing ratio was approximately **0.07** (December 31, 2024: approximately **0.08**)[81](index=81&type=chunk) - The decrease in the gearing ratio was primarily due to a reduction in short-term bank borrowings as of June 30, 2025, leading to a decrease in current liabilities[81](index=81&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group conducts most transactions in RMB and believes exchange rate fluctuations have no significant impact on overall financial performance, holding some HKD cash to mitigate exchange rate risk for dividend distributions and potential investments, with no outstanding hedging transactions as of June 30, 2025 - The majority of the Group's transactions are denominated in RMB, and it believes that exchange rate fluctuations do not have a significant impact on the Group's overall financial performance[82](index=82&type=chunk) - To mitigate exchange rate fluctuation risks for dividend distributions and potential future investments requiring HKD, the Company holds certain HKD cash and cash equivalents[82](index=82&type=chunk) - As of June 30, 2025, the Group had no outstanding hedging transactions[82](index=82&type=chunk) [Contingent Liabilities](index=25&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[83](index=83&type=chunk) [Dividends](index=25&type=section&id=%E8%82%A1%E6%81%AF) The Company declared a special dividend of **HKD 1.0 per ordinary share** on March 3, 2025, paid on March 28, 2025, and the Board is pleased to declare an interim dividend of **HKD 0.8 per ordinary share** for 2025, expected to be paid on September 26, 2025 - The Board declared a special dividend of **HKD 1.0 per ordinary share** of the Company, which was paid on March 28, 2025[84](index=84&type=chunk) - The Board is pleased to declare an interim dividend of **HKD 0.8 per ordinary share** of the Company for 2025, expected to be paid on September 26, 2025[84](index=84&type=chunk) [Closure of Register of Members](index=25&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E6%89%8B%E7%BA%8C) To determine eligibility for the interim dividend, the Company's register of members will be closed from September 8 to September 9, 2025, with the record date set for September 9, 2025 - To determine eligibility for the interim dividend, the Company's register of members will be closed from September 8 to September 9, 2025 (both dates inclusive)[85](index=85&type=chunk) - The record date for this dividend is set for September 9, 2025[85](index=85&type=chunk) [Material Events Affecting the Group Since 30 June 2025](index=26&type=section&id=%E8%87%AA%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E8%B5%B7%E7%99%BC%E7%94%9F%E5%BD%B1%E9%9F%BF%E6%9C%AC%E9%9B%86%E5%9C%98%E4%B9%8B%E9%87%8D%E5%A4%A7%E4%BA%8B%E4%BB%B6) Since June 30, 2025, the Group made a further capital contribution of **RMB 500 million** to Jinbei Shenyang, with the industrial and commercial registration change completed on July 7, 2025, increasing the Group's equity interest in Jinbei Shenyang to **87.3364%** - Since June 30, 2025, the Group made a further capital contribution of **RMB 500,000,000** to Jinbei Shenyang, with the industrial and commercial registration change completed on July 7, 2025, increasing the Group's equity interest in Jinbei Shenyang from **80.72%** to **87.3364%**[86](index=86&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[87](index=87&type=chunk) [Corporate Governance](index=26&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) This section outlines the Group's adherence to corporate governance codes, the composition and responsibilities of the Board and Audit Committee [Compliance with Corporate Governance Code](index=26&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The Company generally complied with the Corporate Governance Code in 1H 2025, with the exception of Mr. Zhang Yue holding both Chairman and CEO roles, which the Board believes enhances leadership and strategic efficiency while maintaining sufficient checks and balances - The Group complied with all code provisions set out in Part 2 of Appendix C1 to the Listing Rules for the six months ended June 30, 2025, except as noted below[88](index=88&type=chunk) - Code Provision C.2.1 of the Corporate Governance Code stipulates that the roles of chairman and chief executive officer should be separate and not performed by the same individual; during 1H 2025, Mr. Zhang Yue served as both Chairman of the Board and Chief Executive Officer of the Company[88](index=88&type=chunk) - The Board believes that Mr. Zhang Yue's dual role as Chairman of the Board and Chief Executive Officer facilitates consistent leadership within the Company, enhancing the efficiency and effectiveness of the Company's overall strategic planning[88](index=88&type=chunk) [Review of Financial Statements](index=27&type=section&id=%E5%AF%A9%E9%96%B1%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Company's Audit Committee reviewed the Group's accounting principles and practices, and discussed auditing, internal controls, and financial reporting matters, including the unaudited condensed consolidated interim financial statements for the period, with all committee members being independent non-executive directors - The Company's Audit Committee reviewed the Group's accounting principles and practices and discussed auditing, internal controls, and financial reporting matters, including the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[89](index=89&type=chunk) - The Audit Committee members include Mr. Jiang Bo, Mr. Song Jian, and Mr. Dong Yang, all of whom are independent non-executive directors of the Company, with Mr. Jiang Bo serving as Chairman of the Audit Committee[89](index=89&type=chunk) [Board of Directors](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) As of the announcement date, the Board of Directors comprises three executive directors (Mr. Zhang Yue, Mr. Zhang Wei, Mr. Guo Hongbo) and four independent non-executive directors (Mr. Song Jian, Mr. Jiang Bo, Mr. Dong Yang, Dr. Lin Jielan) - The Board of Directors comprises three executive directors: Mr. Zhang Yue (Chairman and Chief Executive Officer), Mr. Zhang Wei, and Mr. Guo Hongbo; and four independent non-executive directors: Mr. Song Jian, Mr. Jiang Bo, Mr. Dong Yang, and Dr. Lin Jielan[90](index=90&type=chunk)

[Important Notice](index=3&type=section&id=Important%20Notice) The Board, Supervisory Committee, and senior management guarantee the interim report's accuracy, reviewed by Grant Thornton (Hong Kong) and presented in RMB, with forward-looking statement risk reminders [Overview](index=3&type=section&id=Important%20Notice-Overview) The Board, Supervisory Committee, and senior management guarantee the interim report's accuracy, reviewed by Grant Thornton (Hong Kong) and presented in RMB, with forward-looking statement risk reminders - Report content guaranteed by Board, Supervisory Committee, and senior management, approved by relevant meetings[7](index=7&type=chunk) - Interim financial information reviewed by Grant Thornton (Hong Kong) Limited in accordance with HKSRS 2410[7](index=7&type=chunk) - Data presented in **RMB** unless otherwise specified[7](index=7&type=chunk) - Forward-looking statements regarding future plans and strategies do not constitute a substantive commitment to investors, who are reminded of investment risks[9](index=9&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section defines key terms used in the report, covering company names, shareholders, subsidiaries, regulatory bodies, financial products, and business activities for clear understanding [Key Terms](index=4&type=section&id=Section%20I%20Definitions-Key%20Terms) This section defines key terms used in the report, covering company names, shareholders, subsidiaries, regulatory bodies, financial products, and business activities for clear understanding - "The Company", "Company", "Hengtou Securities" refers to the joint-stock company established in China on December 28, 1998, approved to operate in Hong Kong under the name "Hengtou Securities" on April 27, 2015, with its H shares listed on the Main Board of the Hong Kong Stock Exchange[10](index=10&type=chunk) - "End of the Reporting Period" refers to **June 30, 2025**, and "Reporting Period" refers to the **six months ended June 30, 2025**[10](index=10&type=chunk)[13](index=13&type=chunk) - Major subsidiaries include Hengtai Capital Investment Co., Ltd., Hengtai Changcai Securities Co., Ltd., Hengtai Futures Co., Ltd., Hengtai Pioneer Investment Co., Ltd., and Xinhua Fund Management Co., Ltd[12](index=12&type=chunk)[13](index=13&type=chunk) - "Margin Financing and Securities Lending" is defined as the business activity of lending funds to clients for purchasing listed securities or lending listed securities for selling, and collecting collateral[13](index=13&type=chunk) [Section II Company Profile](index=8&type=section&id=Section%20II%20Company%20Profile) This section provides the company's basic information, including names, board and supervisory committee composition, specialized committees, secretaries, authorized representatives, addresses, website, email, and auditors [Basic Information](index=8&type=section&id=Section%20II%20Company%20Profile-Basic%20Information) This section provides the company's basic information, including names, board and supervisory committee composition, specialized committees, secretaries, authorized representatives, addresses, website, email, and auditors - The company's Chinese name is Hengtai Securities Co., Ltd., operating in Hong Kong under the name "Hengtou Securities"[17](index=17&type=chunk) - The Board of Directors consists of **1 executive director** (Mr. Zhu Yanhui as Chairman), **5 non-executive directors**, and **3 independent non-executive directors**[18](index=18&type=chunk) - The Board has four specialized committees: Strategy and Investment Decision Committee, Risk Control and Supervision Committee, Audit Committee, and Remuneration and Nomination Committee[18](index=18&type=chunk) - The company's auditors are Grant Thornton (Hong Kong) Limited (International) and Grant Thornton (Special General Partnership) (Domestic)[23](index=23&type=chunk) [Section III Summary of Accounting Data and Financial Indicators](index=11&type=section&id=Section%20III%20Summary%20of%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved significant performance growth, with total operating revenue up **42.45%** and profit attributable to ordinary equity holders up **346.86%**, indicating a robust financial position [Key Accounting Data and Financial Indicators](index=11&type=section&id=Section%20III%20Summary%20of%20Accounting%20Data%20and%20Financial%20Indicators-Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved significant performance growth, with total operating revenue up **42.45%** and profit attributable to ordinary equity holders up **346.86%**, indicating a robust financial position Key Accounting Data and Financial Indicators (For the six months ended June 30, 2025) | 項目 | 2025年1月1日至2025年6月30日 (RMB '000) | 2024年1月1日至2024年6月30日 (RMB '000) | 本期比上期增長╱（下降） | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,665,642 | 1,169,284 | 42.45% | | Profit Before Tax | 314,359 | 75,098 | 318.60% | | Profit for the Period Attributable to Ordinary Equity Holders of the Company | 240,733 | 53,872 | 346.86% | | Net Cash Generated From/(Used In) Operating Activities | 389,736 | (129,342) | 401.32% | | Basic Earnings Per Share (RMB/share) | 0.0924 | 0.0207 | 346.38% | | Diluted Earnings Per Share (RMB/share) | 0.0924 | 0.0207 | 346.38% | | Weighted Average Return on Net Assets (%) | 2.86 | 0.67 | 增加2.19個百分點 | Scale Indicators (As of June 30, 2025) | 項目 | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | 本期末比上年期末增長╱（下降） | | :--- | :--- | :--- | :--- | | Total Assets | 43,186,520 | 39,981,081 | 8.02% | | Total Liabilities | 34,261,815 | 31,274,058 | 9.55% | | Accounts Payable to Brokerage Clients | 20,121,543 | 16,700,618 | 20.48% | | Equity Attributable to Ordinary Equity Holders and Holders of Perpetual Capital Securities | 8,544,448 | 8,295,533 | 3.00% | | Total Share Capital ('000 shares) | 2,604,567 | 2,604,567 | 0.00% | | Net Assets Per Share Attributable to Ordinary Equity Holders (RMB/share) | 3.28 | 3.18 | 3.14% | | Asset-Liability Ratio (%) | 61.31 | 62.60 | 減少1.29個百分點 | [The Company's Net Capital and Other Risk Control Indicators](index=14&type=section&id=Section%20III%20Summary%20of%20Accounting%20Data%20and%20Financial%20Indicators-The%20Company%27s%20Net%20Capital%20and%20Other%20Risk%20Control%20Indicators) As of June 30, 2025, net capital decreased to **RMB 5,615.40 million**, but all risk control indicators met regulatory requirements, demonstrating sound risk management Net Capital and Risk Control Indicators (RMB '000) | 項目 | 2025年6月30日 | 2024年12月31日 | 監管標準 | | :--- | :--- | :--- | :--- | | Net Capital | 5,615,398 | 5,903,665 | Not applicable | | Of which: Core Net Capital | 5,465,398 | 5,153,665 | Not applicable | | Subordinate Net Capital | 150,000 | 750,000 | Not applicable | | Net Assets | 8,547,167 | 8,274,815 | Not applicable | | Sum of Various Risk Capital Reserves | 3,411,162 | 3,359,516 | Not applicable | | Risk Coverage Ratio | 164.62% | 175.73% | ≥100% | | Capital Leverage Ratio | 24.85% | 23.62% | ≥8% | | Liquidity Coverage Ratio | 175.47% | 182.28% | ≥100% | | Net Stable Funding Ratio | 164.45% | 173.37% | ≥100% | | Net Capital/Net Assets | 65.70% | 71.34% | ≥20% | | Net Capital/Liabilities | 43.31% | 44.21% | ≥8% | | Net Assets/Liabilities | 65.92% | 61.97% | ≥10% | | Proprietary Equity Securities and Derivatives/Net Capital | 19.39% | 22.61% | ≤100% | | Proprietary Non-Equity Securities and Derivatives/Net Capital | 166.21% | 147.18% | ≤500% | - As of June 30, 2025, the Company's net capital was **RMB 5,615.40 million**, a decrease of **RMB 288.27 million** from the end of 2024[36](index=36&type=chunk) - During the reporting period, all risk control indicators, including net capital, met regulatory requirements[36](index=36&type=chunk) [Section IV Management Discussion and Analysis](index=15&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis) This section analyzes the economic environment, market conditions, main business operations, financial performance, future outlook, and risk management strategies during the reporting period [Economic Environment and Market Conditions During the Reporting Period](index=15&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Economic%20Environment%20and%20Market%20Conditions%20During%20the%20Reporting%20Period) In H1 2025, China's economy remained stable with **5.30% GDP growth**, while the A-share market showed an upward trend with significantly increased trading activity - In the first half of 2025, China's GDP grew by **5.30%** year-on-year[39](index=39&type=chunk) - In the first half of 2025, national industrial value added above designated size increased by **6.40%** year-on-year, service industry value added increased by **5.50%** year-on-year, and total retail sales of consumer goods increased by **5.00%** year-on-year[39](index=39&type=chunk) - During the reporting period, China's A-share market showed an upward trend, with the Shanghai Composite Index rising by **2.76%**, the Shenzhen Component Index by **0.48%**, and the ChiNext Index by **0.53%**[40](index=40&type=chunk) - The total trading volume of stocks and funds in Shanghai and Shenzhen markets amounted to **RMB 188.78 trillion**, an increase from the same period in 2024, with Shanghai increasing by **50.80%** and Shenzhen by **76.35%**[40](index=40&type=chunk) [Analysis of Main Business Operations](index=16&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations) The Group achieved substantial growth in operating revenue and net profit, with strong performance in brokerage, investment banking, and proprietary trading, while investment management revenue decreased Group Operating Performance (For the six months ended June 30, 2025) | 指标 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,665.64 | 1,169.28 | 42.45% | | Net Profit | 209.50 | 18.99 | 1,003.21% | [Brokerage and Wealth Management Business](index=16&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Brokerage%20and%20Wealth%20Management%20Business) Brokerage and wealth management revenue grew **36.19%** to **RMB 950.77 million**, driven by expanded client base, increased AUM, and robust financial product sales Brokerage and Wealth Management Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 950.77 | 698.13 | 36.19% | - The securities brokerage business opened **143,900 new accounts**, bringing the total client count to **4.1189 million**, a **3.21%** increase from the end of 2024; total client assets under management reached **RMB 189,284.21 million**, an increase of **5.55%**[43](index=43&type=chunk) - Stock and fund trading volume was **RMB 1,375,839.14 million**, a **65.04%** increase from the same period in 2024; market share for stocks and funds was **0.03645%**, an increase of **0.00064%** from the same period in 2024[43](index=43&type=chunk) - The wealth management business sold **2,346 financial products**, with a sales scale of **RMB 9,019.66 million**; as of the end of the reporting period, the financial product holding scale was **RMB 19,478.06 million**[46](index=46&type=chunk) - The capital intermediary business's margin financing and securities lending balance was **RMB 5,500.31 million**[47](index=47&type=chunk) - The total scale of asset custody, fund services, and fundraising supervision was **RMB 115,050 million**[48](index=48&type=chunk) [Investment Banking Business](index=18&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Investment%20Banking%20Business) Investment banking revenue grew **41.54%** to **RMB 92.68 million**, with progress in equity financing, bond financing, and NEEQ listing recommendations Investment Banking Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 92.68 | 65.48 | 41.54% | - Equity financing completed **1 financial advisory project** for a listed company, with multiple refinancing and M&A restructuring projects steadily advancing[50](index=50&type=chunk) - Bond financing completed **24 corporate bond projects**, with a total underwriting scale of **RMB 5,652 million**[51](index=51&type=chunk) - NEEQ listing recommendation business completed **1 declaration project** and **4 financing projects**; as of the end of the reporting period, there were **132 ongoing supervision projects**[52](index=52&type=chunk) [Investment Management Business](index=19&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Investment%20Management%20Business) Investment management revenue decreased **12.85%** to **RMB 132.08 million** due to AUM decline, despite good fixed-income product performance and Xinhua Fund's AUM growth Investment Management Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 132.08 | 151.56 | -12.85% | - Total asset management scale was **RMB 15,333.40 million**, including collective asset management plans of **RMB 3,763.53 million**, single asset management plans of **RMB 2,389.28 million**, and asset-backed securities special plans of **RMB 9,180.59 million**[55](index=55&type=chunk) - Xinhua Fund managed **47 public funds**, with an AUM of **RMB 53,206 million**, a **7.68%** year-on-year increase[57](index=57&type=chunk) - Hengtai Capital managed **2 private equity funds**, with a fund management scale of **RMB 2,900 million**[58](index=58&type=chunk) - Hengtai Pioneer directly invested in **22 projects**[59](index=59&type=chunk) [Proprietary Trading Business](index=21&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Analysis%20of%20Main%20Business%20Operations-Proprietary%20Trading%20Business) Proprietary trading revenue grew **102.99%** to **RMB 475.12 million**, achieving strong returns from equity, fixed-income, and multi-strategy investments in A-share and Beijing Stock Exchange markets Proprietary Trading Business Operating Revenue | 业务 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Operating Revenue | 475.12 | 234.06 | 102.99% | - Equity investment business achieved stable dividend and growth returns by building a multi-layered equity investment system, focusing on core assets, high-dividend stocks, and growth assets[61](index=61&type=chunk) - Fixed-income business captured trading opportunities amidst bond market volatility, reduced long-duration bond positions, increased allocation to high-grade credit bonds, and actively engaged in interest rate derivative trading, yielding good returns[62](index=62&type=chunk) - Multi-strategy investment business capitalized on high-elasticity opportunities in the Beijing Stock Exchange market, increasing equity exposure, and made preliminary preparations for commodity futures investments[62](index=62&type=chunk) [Outlook and Future Plans](index=22&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Outlook%20and%20Future%20Plans) The company anticipates deepening capital market reforms and accelerated industry consolidation, planning to enhance governance, risk control, and operational efficiency, while driving business transformation and leveraging financial technology for differentiated advantages - Capital market reforms continue to deepen, and securities industry consolidation is accelerating, with leading securities firms expected to integrate faster, while small and medium-sized firms need to adopt differentiated operating strategies[63](index=63&type=chunk)[64](index=64&type=chunk) - The securities industry's traditional brokerage business is accelerating its transformation towards a buyer-side investment advisory model, investment banking will focus on "five major articles" guidance, and asset management will revolve around structural optimization, capability upgrading, and differentiated competition[64](index=64&type=chunk) - The company will continuously enhance business capabilities, promote transformation and upgrading, accelerate the construction of its business brand system, strengthen financial technology empowerment, improve client service capabilities, and develop segmented business capabilities to form differentiated competitive advantages[65](index=65&type=chunk) - Future plans include deepening refined client operations, strengthening investment advisory business development, exploring new proprietary trading profit models (such as options, ETF arbitrage, convertible bond investments), enriching asset management product strategies, and focusing investment banking business on new energy, new technology, and high-end manufacturing industries[65](index=65&type=chunk) [Financial Statement Analysis](index=24&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Financial%20Statement%20Analysis) The Group's profitability significantly improved, with substantial growth in total operating revenue and net profit attributable to shareholders, while asset and liability structures remained stable, and operating cash flow turned positive Profitability Indicators (For the six months ended June 30, 2025) | 指标 | 2025年 (RMB million) | 2024年 (RMB million) | 同比增长 | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,665.64 | 1,169.28 | 42.45% | | Net Profit Attributable to Ordinary Equity Holders of the Company | 240.73 | 53.87 | 346.86% | | Earnings Per Share (RMB) | 0.0924 | 0.0207 | 346.38% | | Weighted Average Return on Net Assets (%) | 2.86 | 0.67 | 增加2.19个百分点 | Asset and Liability Situation (As of June 30, 2025) | 指标 | 2025年6月30日 (RMB million) | 2024年12月31日 (RMB million) | 变化 | | :--- | :--- | :--- | :--- | | Total Assets | 43,186.52 | 39,981.08 | 增长8.02% | | Total Liabilities | 34,261.82 | 31,274.06 | 增长9.55% | | Equity Attributable to Ordinary Equity Holders and Holders of Perpetual Capital Securities | 8,544.45 | 8,295.53 | 增长3.00% | | Asset-Liability Ratio (%) | 61.31 | 62.60 | 减少1.29个百分点 | | Financial Leverage Ratio | 2.70 | 2.81 | 下降3.91% | - The asset structure remained stable, with cash assets accounting for **54.66%**, financing assets for **13.40%**, and financial investment assets for **27.92%**[67](index=67&type=chunk) - The company diversified its debt financing channels through issuing income certificates, re-lending, and borrowing subordinated debt, and obtained substantial comprehensive credit lines from multiple banks[70](index=70&type=chunk) Cash Flow Movement (For the six months ended June 30, 2025) | 现金流类型 | 2025年 (RMB million) | 2024年 (RMB million) | 同比变化 (RMB million) | | :--- | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 389.74 | -129.34 | 增加519.08 | | Net Cash From/(Used In) Investing Activities | 305.51 | -409.32 | 增加714.83 | | Net Cash From/(Used In) Financing Activities | -850.35 | 613.99 | 减少1,464.34 | | Cash and Cash Equivalents at End of Period | 2,086.77 | 2,109.68 | 减少22.91 | - During the reporting period, there were no changes to the Company's major accounting policies[73](index=73&type=chunk) [Branches and Subsidiaries](index=26&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Branches%20and%20Subsidiaries) The company had **7 branches** and **102 brokerage offices**, with relocations, upgrades, and changes in registered capital or legal representatives for key subsidiaries - As of the end of the reporting period, the company had a total of **7 branches** and **102 securities brokerage offices**[74](index=74&type=chunk) - During the reporting period, **5 securities brokerage offices** completed relocation, with no new establishments or cancellations[75](index=75&type=chunk) - **4 securities brokerage offices** were upgraded to branches, including Shandong Branch, Shanghai First Branch, Shanghai Second Branch, and Zhejiang Branch[76](index=76&type=chunk) - Hengtai Futures completed a change in registered capital, from **RMB 125 million** to **RMB 228.0303 million**[79](index=79&type=chunk) - Xinhua Fund completed a change in registered capital, from **RMB 217.50 million** to **RMB 627.756410 million**, with the Company's shareholding ratio changing from **58.62%** to **52.99%**[79](index=79&type=chunk) [Significant Financing Activities](index=28&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Significant%20Financing%20Activities) No equity financing occurred; debt financing included **RMB 1.35 billion** in income certificates and **RMB 150 million** in subordinated debt, with outstanding balances of **RMB 1.58 billion**, **RMB 1.50 billion**, and **RMB 1.95 billion** respectively - During the reporting period, the company had no equity financing[77](index=77&type=chunk) Issuance of Income Certificates (For the six months ended June 30, 2025) | 名称 | 发行规模 (RMB hundred million) | 发行利率 | 期限 (天) | 发行日 | 到期日 | | :--- | :--- | :--- | :--- | :--- | :--- | | Hengchuang Taifu No. 59 | 3.00 | 2.30% | 91 | 2025-1-22 | 2025-4-23 | | Hengchuang Taifu No. 60 | 4.00 | 2.80% | 356 | 2025-2-11 | 2026-2-2 | | Hengchuang Taifu No. 61 | 3.00 | 2.40% | 91 | 2025-3-28 | 2025-6-27 | | Hengchuang Taifu No. 62 | 3.00 | 2.40% | 90 | 2025-4-29 | 2025-7-28 | | Hengfu No. 41 | 0.50 | 2.60% | 347 | 2025-6-13 | 2026-5-26 | - During the reporting period, the company raised a total of **RMB 1.35 billion** through the issuance of income certificates; as of June 30, 2025, the outstanding balance of unexpired income certificates was **RMB 1.58 billion**[78](index=78&type=chunk) - During the reporting period, the company did not issue subordinated bonds; as of June 30, 2025, the outstanding balance of unexpired subordinated bonds was **RMB 1.50 billion**[81](index=81&type=chunk) - During the reporting period, the company did not issue corporate bonds; as of June 30, 2025, the outstanding balance of unexpired corporate bonds was **RMB 1.95 billion**[82](index=82&type=chunk) Borrowing of Subordinated Debt (For the six months ended June 30, 2025) | 名称 | 借入规模 (RMB hundred million) | 借款利率 | 期限 (年) | 起息日 | 到期日 | | :--- | :--- | :--- | :--- | :--- | :--- | | Subordinated Debt | 1.50 | 4.00% | 5 | 2025-5-15 | 2030-5-14 | - During the reporting period, the company borrowed a total of **RMB 150 million** in subordinated debt; as of June 30, 2025, the outstanding balance of unexpired subordinated debt was **RMB 150 million**[83](index=83&type=chunk) [Significant Investment Activities](index=29&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Significant%20Investment%20Activities) During the reporting period, the company did not engage in any significant investment activities - During the reporting period, there were no significant investment activities[84](index=84&type=chunk) [Significant Asset Acquisitions, Disposals, External Guarantees, Mortgages, Pledges, and Significant Contingent Liabilities](index=30&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Significant%20Asset%20Acquisitions%2C%20Disposals%2C%20External%20Guarantees%2C%20Mortgages%2C%20Pledges%2C%20and%20Significant%20Contingent%20Liabilities) No significant asset acquisitions, disposals, or mergers occurred; no major contingent liabilities, but counter-guarantees for Xinhua Fund and pledged properties/subsidiary equity were in place - During the reporting period, the Company did not engage in any significant asset acquisitions, disposals, or corporate mergers; nor did it incur any significant contingent liabilities or other matters affecting its financial position and operating results[85](index=85&type=chunk) - The company provided a counter-guarantee for Xinhua Fund, pledging residential property in Building 2, Unit 1, Courtyard 6, Dongjing Road, Xicheng District, Beijing (appraised value approximately **RMB 130 million**) and the Manshi Shangdu office and commercial complex on Hailaer East Street, Xincheng District, Hohhot, Inner Mongolia Autonomous Region (appraised value approximately **RMB 120 million**) to Financial Street Investment as collateral[86](index=86&type=chunk)[87](index=87&type=chunk) - **50% equity** and derivative interests of Hengtai Changcai (a wholly-owned subsidiary of the Company) (appraised value approximately **RMB 550 million**) were also used as collateral[87](index=87&type=chunk) [Risk Management](index=31&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis-Risk%20Management) The company established a comprehensive risk management system covering credit, market, liquidity, compliance, operational, and reputational risks, ensuring regulatory compliance and continuous enhancement - The main risks in the company's operations include credit risk, market risk, liquidity risk, compliance risk, operational risk, and reputational risk[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) - The company has established and regularly revises systems such as the "Hengtai Securities Co., Ltd. Comprehensive Risk Management Measures" and the "Hengtai Securities Co., Ltd. Risk Management Culture Manual"[96](index=96&type=chunk) - The company has established a four-level risk management system including the Board of Directors, Party Committee, management, risk management functional departments, and business departments, and has incorporated all subsidiaries into the comprehensive risk management system[97](index=97&type=chunk) - The company has established a risk appetite indicator system centered on net capital and liquidity, covering market risk, credit risk, operational risk, and concentration risk[99](index=99&type=chunk) - The company's Risk Management Department has established professional teams in four secondary departments: market risk, credit risk, operational risk, and comprehensive risk, with risk management personnel having over three years of relevant work experience accounting for over **2%** of all headquarters employees[101](index=101&type=chunk) - The company has established working mechanisms such as dynamic net capital monitoring, risk authorization, regular risk reporting, regular stress testing, and risk scheduling meetings, and has developed emergency response plans for major risks and emergencies[102](index=102&type=chunk) [Section V Other Important Matters](index=36&type=section&id=Section%20V%20Other%20Important%20Matters) This section covers profit distribution, share option plans, significant litigation, auditor appointments, corporate governance code compliance, company governance, and directors' and supervisors' securities trading and share acquisition rights [Profit Distribution and Profit Distribution Plan](index=36&type=section&id=Section%20V%20Other%20Important%20Matters-Profit%20Distribution%20and%20Profit%20Distribution%20Plan) The company's 2024 profit distribution plan involved no distribution, and there is no plan for H1 2025 - The Company's 2024 profit distribution plan was to make no profit distribution, which was approved at the Annual General Meeting on May 16, 2025[103](index=103&type=chunk) - The Company has no profit distribution plan for the first half of 2025[103](index=103&type=chunk) [Share Option Schemes or Equity Incentive Plans](index=36&type=section&id=Section%20V%20Other%20Important%20Matters-Share%20Option%20Schemes%20or%20Equity%20Incentive%20Plans) During the reporting period, the company had no share option schemes or equity incentive plans, nor any implementation thereof - During the reporting period, the company had no share option schemes or equity incentive plans, nor any implementation thereof[104](index=104&type=chunk) [Significant Litigation and Arbitration Matters](index=36&type=section&id=Section%20V%20Other%20Important%20Matters-Significant%20Litigation%20and%20Arbitration%20Matters) No new significant litigation or arbitration occurred; a previous dispute saw the Supreme People's Court overturn a first-instance ruling and remand the case for retrial - During the reporting period, there were no new significant litigation or arbitration matters[105](index=105&type=chunk) - In the dispute concerning the Qinghui Leasing Phase I Asset-Backed Special Plan managed by the company, the Supreme People's Court, on June 30, 2025, overturned the first-instance ruling and instructed the Beijing High People's Court to hear the case[109](index=109&type=chunk) - The case involves the company suing Qinghui Leasing and Hongyuan Petrochemical in 2018, with total claims amounting to approximately **RMB 530 million**[107](index=107&type=chunk) [Appointment of Auditors](index=37&type=section&id=Section%20V%20Other%20Important%20Matters-Appointment%20of%20Auditors) The company re-appointed Grant Thornton (Special General Partnership) as its 2025 domestic auditor and Grant Thornton (Hong Kong) Limited as its 2025 international auditor - The Company re-appointed Grant Thornton (Special General Partnership) as its 2025 domestic auditor[110](index=110&type=chunk) - The Company re-appointed Grant Thornton (Hong Kong) Limited as its 2025 international auditor[110](index=110&type=chunk) [Compliance with Corporate Governance Code](index=37&type=section&id=Section%20V%20Other%20Important%20Matters-Compliance%20with%20Corporate%20Governance%20Code) The company strictly complied with all Corporate Governance Code provisions and will continue to review and enhance its corporate governance practices - During the reporting period, the Company strictly complied with all code provisions contained in Part Two of the Corporate Governance Code[111](index=111&type=chunk) - The company will continue to review and enhance its corporate governance practices to ensure compliance with the Corporate Governance Code[111](index=111&type=chunk) [Corporate Governance Status](index=38&type=section&id=Section%20V%20Other%20Important%20Matters-Corporate%20Governance%20Status) Shareholders held **3 meetings**, the Board held **5 meetings** reviewing **27 proposals**, and specialized committees operated normally; the Supervisory Committee held **1 meeting**, reviewing **7 proposals** - During the reporting period, the General Meeting of Shareholders held **3 meetings**[112](index=112&type=chunk) - The Board of Directors consists of **9 directors** and has four specialized committees: Strategy and Investment Decision Committee, Risk Control and Supervision Committee, Audit Committee, and Remuneration and Nomination Committee[113](index=113&type=chunk) - During the reporting period, the Board of Directors held **5 meetings**, reviewing **27 proposals**; all specialized committees also held meetings[114](index=114&type=chunk) - The Supervisory Committee consists of **3 supervisors** and held **1 meeting** during the reporting period, reviewing **7 proposals**[118](index=118&type=chunk) [Compliance with the Model Code](index=39&type=section&id=Section%20V%20Other%20Important%20Matters-Compliance%20with%20the%20Model%20Code) The company adopted the Model Code for directors' and supervisors' securities transactions, with all confirming compliance during the reporting period - The company has adopted the Model Code as the code of conduct for directors and supervisors' securities transactions[119](index=119&type=chunk) - All directors and supervisors have confirmed that they have complied with the standards set out in the Model Code throughout the reporting period[119](index=119&type=chunk) [Directors' and Supervisors' Service Contracts](index=39&type=section&id=Section%20V%20Other%20Important%20Matters-Directors%27%20and%20Supervisors%27%20Service%20Contracts) No directors or supervisors have non-terminable service contracts within one year without compensation (excluding statutory compensation) with the company or its subsidiaries - No directors or supervisors have entered into service contracts with the Company or its subsidiaries that are not terminable within one year without compensation (other than statutory compensation)[120](index=120&type=chunk) [Rights of Directors and Supervisors to Acquire Shares or Debentures](index=39&type=section&id=Section%20V%20Other%20Important%20Matters-Rights%20of%20Directors%20and%20Supervisors%20to%20Acquire%20Shares%20or%20Debentures) No directors, supervisors, or their associates acquired rights to company shares or debentures, nor were any arrangements made by the company for such acquisitions - During the reporting period, no directors, supervisors, or their respective spouses or children under 18 years of age acquired rights to shares or debentures of the Company through purchase[121](index=121&type=chunk) - Nor were any arrangements made by the Company or any of its subsidiaries for the Company's directors, supervisors, or their respective spouses or children under 18 years of age to acquire such rights in any other body corporate[121](index=121&type=chunk) [Section VI Changes in Shares and Shareholder Information](index=40&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information) This section details major shareholders' and other persons' interests and short positions in company shares, and interests of directors, supervisors, and chief executives [Interests and Short Positions of Major Shareholders and Other Persons in the Company's Shares and Related Shares](index=40&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information-Interests%20and%20Short%20Positions%20of%20Major%20Shareholders%20and%20Other%20Persons%20in%20the%20Company%27s%20Shares%20and%20Related%20Shares) As of June 30, 2025, major shareholders, including Huarong, Financial Street entities, Xicheng District SASAC, Tianfeng Securities, Baotou Huazi, Huifa Technology, Hongzhi Huitong, and H-share holders, held long positions Major Shareholder Holdings (As of June 30, 2025) | 主要股東名稱 | 股份類別 | 權益性質 | 持有的股份數目（股） | 佔本公司已發行股份總數的概約百分比 (%) | 佔本公司已發行內資股╱H股的概約百分比 (%) | 好倉╱淡倉╱可供借出的股份 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huarong Comprehensive Investment | Domestic Shares | Beneficial Owner | 569,895,304 | 21.8806 | 26.4610 | Long Position | | Financial Street Investment | Domestic Shares | Controlled Corporation Interest | 781,367,619 | 29.9999 | 36.2799 | Long Position | | Xicheng District SASAC | Domestic Shares | Controlled Corporation Interest | 781,367,619 | 29.9999 | 36.2799 | Long Position | | Tianfeng Securities | Domestic Shares | Beneficial Owner | 440,618,114 | 16.9171 | 20.4585 | Long Position | | Baotou Huazi | Domestic Shares | Beneficial Owner | 308,000,000 | 11.8254 | 14.3008 | Long Position | | Huifa Technology | Domestic Shares | Beneficial Owner | 154,000,000 | 5.9127 | 7.1504 | Long Position | | Hongzhi Huitong | Domestic Shares | Beneficial Owner | 123,500,000 | 4.7417 | 5.7343 | Long Position | | Glowing Lane Limited | H Shares | Beneficial Owner | 124,724,000 | 4.7887 | 27.6644 | Long Position | | Ravi Global Limited | H Shares | Beneficial Owner | 123,206,000 | 4.7304 | 27.3277 | Long Position | - As of June 30, 2025, the Company had a total of **2,604,567,412 issued shares**, including **2,153,721,412 domestic shares** and **450,846,000 H shares**[124](index=124&type=chunk) [Interests and Short Positions of Directors, Supervisors and Chief Executive in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=42&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information-Interests%20and%20Short%20Positions%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executive%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, no directors, supervisors, or chief executive held disclosable interests or short positions in the company's or its associated corporations' shares or debentures - As of June 30, 2025, no directors, supervisors, or chief executive of the Company held any interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations that are required to be disclosed under the Securities and Futures Ordinance or the Model Code[125](index=125&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=42&type=section&id=Section%20VI%20Changes%20in%20Shares%20and%20Shareholder%20Information-Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, redeemed, or sold any listed securities, and no treasury shares were held at period-end - During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[126](index=126&type=chunk) - As of the end of the reporting period, the Company held no treasury shares[126](index=126&type=chunk) [Section VII Directors, Supervisors, Senior Management and Employees](index=43&type=section&id=Section%20VII%20Directors%2C%20Supervisors%2C%20Senior%20Management%20and%20Employees) This section details changes in directors, supervisors, and senior management, along with information on employees, remuneration policies, and training programs [Changes in Directors, Supervisors and Senior Management](index=43&type=section&id=Section%20VII%20Directors%2C%20Supervisors%2C%20Senior%20Management%20and%20Employees-Changes%20in%20Directors%2C%20Supervisors%20and%20Senior%20Management) Mr. Pang Jiemin was appointed non-executive director, Mr. Yu Lei resigned, and Mr. Yang Jinliang was appointed Vice President, with other changes in directors' and supervisors' positions - On January 10, 2025, Mr. Pang Jiemin was appointed as a non-executive director of the Fifth Board of Directors, and Mr. Yu Lei resigned[128](index=128&type=chunk) - During the reporting period, there were no changes in supervisors[129](index=129&type=chunk) - On March 29, 2025, Mr. Yang Jinliang was appointed as Vice President of the company[130](index=130&type=chunk) - Some directors and supervisors had other changes in their positions, for example, Mr. Zhu Yanhui no longer served as a director of Beijing Xicheng Charity Association, and Mr. Li Yanyong no longer served as the legal representative and chairman of Baotou Huazi Industrial Co., Ltd., but served as a senior advisor[131](index=131&type=chunk)[135](index=135&type=chunk) [Employees, Remuneration Policy and Training](index=44&type=section&id=Section%20VII%20Directors%2C%20Supervisors%2C%20Senior%20Management%20and%20Employees-Employees%2C%20Remuneration%20Policy%20and%20Training) The Group had **2,491 employees**; the company established a robust remuneration mechanism with diversified structure, deferred payment, and clawback provisions, providing extensive training with **100%** coverage - As of the end of the reporting period, the Group had a total of **2,491 employees**, including **2,075 employees** of the Company and **416 employees** of subsidiaries[133](index=133&type=chunk) - The company has established a diversified remuneration structure consisting of fixed remuneration, variable remuneration, and benefits, and has implemented a deferred payment mechanism for remuneration distribution and a clawback mechanism for salaries[133](index=133&type=chunk) - In 2025, the company launched and implemented an enterprise annuity plan, further enhancing employee welfare and security[133](index=133&type=chunk) - During the reporting period, the company organized and implemented **41 internal and external training sessions**, with a total of **7,849 participants**, achieving a training coverage rate of **100%**[134](index=134&type=chunk) - The company implemented layered and categorized training programs such as the "Kunpeng Plan" and "Hundred Talents Plan," focusing on the development of talent pipelines for key positions[134](index=134&type=chunk) [Independent Review Report](index=45&type=section&id=Independent%20Review%20Report) Grant Thornton (Hong Kong) Limited reviewed Hengtou Securities' interim financial information for H1 2025, concluding no non-compliance with IAS 34 based on HKSRS 2410 [Introduction and Conclusion](index=45&type=section&id=Independent%20Review%20Report-Introduction%20and%20Conclusion) Grant Thornton (Hong Kong) Limited reviewed Hengtou Securities' interim financial information for H1 2025, concluding no non-compliance with IAS 34 based on HKSRS 2410 - Grant Thornton (Hong Kong) Limited has reviewed the Company's interim financial information for the six months ended June 30, 2025[137](index=137&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants, and its scope is less than an audit, thus no audit opinion is expressed[138](index=138&type=chunk) - Based on the review, nothing has come to the auditor's attention that causes them to believe that the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting"[139](index=139&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=47&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, the Group's total operating revenue was **RMB 1,665,642 thousand**, up **42.45%**, with profit for the period significantly growing **1,003.21%** to **RMB 209,500 thousand** [Profit or Loss and Comprehensive Income](index=47&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income-Profit%20or%20Loss%20and%20Comprehensive%20Income) For H1 2025, the Group's total operating revenue was **RMB 1,665,642 thousand**, up **42.45%**, with profit for the period significantly growing **1,003.21%** to **RMB 209,500 thousand** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Fee and commission income | 838,699 | 572,872 | | Interest income | 353,446 | 353,347 | | Net investment income | 258,674 | 187,962 | | Other income and gains | 214,823 | 55,103 | | **Total Operating Revenue** | **1,665,642** | **1,169,284** | | Fee and commission expenses | (118,523) | (74,127) | | Interest expenses | (195,238) | (198,485) | | Staff costs | (604,588) | (362,163) | | Depreciation and amortization | (92,141) | (103,729) | | Taxes and surcharges | (8,662) | (6,694) | | Other operating expenses | (208,881) | (158,110) | | Asset impairment losses, net | (106,746) | (42,409) | | Unrealized fair value loss on financial assets measured at fair value through profit or loss | (16,504) | (148,469) | | **Total Operating Expenses** | **(1,351,283)** | **(1,094,186)** | | **Profit Before Tax** | **314,359** | **75,098** | | Income tax expense | (104,859) | (56,104) | | **Profit for the Period** | **209,500** | **18,994** | Profit for the Period and Comprehensive Income Attributable (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Profit for the period attributable to: | | | | Ordinary equity holders of the Company | 240,733 | 53,872 | | Non-controlling interests | (31,233) | (34,878) | | **Total Profit for the Period** | **209,500** | **18,994** | | Total comprehensive income for the period attributable to: | | | | Ordinary equity holders of the Company | 248,915 | 68,494 | | Non-controlling interests | (31,233) | (34,878) | | **Total Comprehensive Income for the Period** | **217,682** | **33,616** | | Earnings per share (basic and diluted) | RMB 0.0924 | RMB 0.0207 | [Condensed Consolidated Statement of Financial Position](index=49&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased **8.02%** to **RMB 43,186,520 thousand**, total liabilities increased **9.55%** to **RMB 34,261,815 thousand**, and total equity increased to **RMB 8,924,705 thousand** [Assets, Liabilities and Equity](index=49&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position-Assets%2C%20Liabilities%20and%20Equity) As of June 30, 2025, total assets increased **8.02%** to **RMB 43,186,520 thousand**, total liabilities increased **9.55%** to **RMB 34,261,815 thousand**, and total equity increased to **RMB 8,924,705 thousand** Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | 項目 | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | **Total Non-current Assets** | **2,817,668** | **2,411,328** | | Amounts due from financing clients | 5,445,620 | 5,840,304 | | Financial assets measured at fair value through other comprehensive income | 2,073,637 | 2,418,119 | | Financial assets measured at fair value through profit or loss | 9,983,470 | 9,645,475 | | Cash held on behalf of brokerage clients | 19,271,204 | 16,178,519 | | Cash and cash equivalents | 1,759,952 | 1,907,249 | | **Total Current Assets** | **40,368,852** | **37,569,753** | | **Total Assets** | **43,186,520** | **39,981,081** | | Debt instruments (current) | 3,067,462 | 2,420,000 | | Accounts payable to brokerage clients | 20,121,543 | 16,700,618 | | Financial assets sold under repurchase agreements | 3,776,815 | 4,099,600 | | **Total Current Liabilities** | **31,458,996** | **26,978,763** | | Debt instruments (non-current) | 1,923,894 | 3,394,895 | | **Total Non-current Liabilities** | **2,802,819** | **4,295,295** | | **Total Liabilities** | **34,261,815** | **31,274,058** | | **Total Equity** | **8,924,705** | **8,707,023** | | Equity attributable to ordinary equity holders of the Company | 8,544,448 | 8,295,533 | [Condensed Consolidated Statement of Changes in Equity](index=52&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For H1 2025, equity attributable to ordinary equity holders increased from **RMB 8,295,533 thousand** to **RMB 8,544,448 thousand**, primarily due to profit for the period and other comprehensive income [Changes in Equity](index=52&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity-Changes%20in%20Equity) For H1 2025, equity attributable to ordinary equity holders increased from **RMB 8,295,533 thousand** to **RMB 8,544,448 thousand**, primarily due to profit for the period and other comprehensive income Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | 項目 | Share Capital (RMB '000) | Share Premium (RMB '000) | Surplus Reserve (RMB '000) | General Risk Reserve (RMB '000) | Trading Risk Reserve (RMB '000) | Investment Revaluation Reserve (RMB '000) | Retained Earnings (RMB '000) | Subtotal Attributable to Ordinary Equity Holders of the Company (RMB '000) | Non-controlling Interests (RMB '000) | Total Equity (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 (audited) | 2,604,567 | 1,665,236 | 682,940 | 1,073,607 | 804,352 | (9,122) | 1,473,953 | 8,295,533 | 411,490 | 8,707,023 | | Profit for the period | – | – | – | – | – | – | 240,733 | 240,733 | (31,233) | 209,500 | | Other comprehensive income for the period | – | – | – | – | – | 8,182 | – | 8,182 | – | 8,182 | | Total comprehensive income for the period | – | – | – | – | – | 8,182 | 240,733 | 248,915 | (31,233) | 217,682 | | Transfer to general risk reserve | – | – | – | 6,458 | – | – | (6,458) | – | – | – | | As of June 30, 2025 (unaudited) | 2,604,567 | 1,665,236 | 682,940 | 1,080,065 | 804,352 | (940) | 1,708,228 | 8,544,448 | 380,257 | 8,924,705 | [Condensed Consolidated Statement of Cash Flows](index=53&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, net cash from operating activities was **RMB 389,736 thousand**, from investing activities **RMB 305,507 thousand**, and used in financing activities **RMB 850,352 thousand**, with period-end cash and cash equivalents of **RMB 2,086,770 thousand** [Cash Flows](index=53&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows-Cash%20Flows) For H1 2025, net cash from operating activities was **RMB 389,736 thousand**, from investing activities **RMB 305,507 thousand**, and used in financing activities **RMB 850,352 thousand**, with period-end cash and cash equivalents of **RMB 2,086,770 thousand** Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 389,736 | (129,342) | | Net cash generated from/(used in) investing activities | 305,507 | (409,316) | | Net cash (used in)/generated from financing activities | (850,352) | 613,992 | | Net (decrease)/increase in cash and cash equivalents | (155,109) | 75,334 | | Cash and cash equivalents at beginning of period | 2,242,066 | 2,034,205 | | Effect of foreign exchange rate changes | (187) | 138 | | Cash and cash equivalents at end of period | 2,086,770 | 2,109,677 | [Notes to the Condensed Consolidated Financial Statements](index=54&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering preparation basis, new IFRS adoption, and breakdowns of income, expense, asset, and liability items [Basis of Preparation](index=54&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Basis%20of%20Preparation) Interim financial information is prepared per IAS 34 and HKEX Listing Rules, to be read with 2024 annual statements, with data in **RMB thousand** unless specified - The interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the disclosure requirements of the Hong Kong Stock Exchange Listing Rules[151](index=151&type=chunk) - The interim financial data should be read in conjunction with the Group's financial statements for the year ended December 31, 2024[151](index=151&type=chunk) - Unless otherwise specified, the interim financial information is presented in **RMB thousand**[152](index=152&type=chunk) [Adoption of New and Revised International Financial Reporting Standards](index=54&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Adoption%20of%20New%20and%20Revised%20International%20Financial%20Reporting%20Standards) The Group adopted IAS 21 amendment "Lack of Exchangeability" effective January 1, 2025, with no significant impact, and lists other issued but not yet effective IFRS - The Group has adopted the amendment to International Accounting Standard 21 "Lack of Exchangeability" effective January 1, 2025[153](index=153&type=chunk) - The adoption of these revised International Financial Reporting Standards has no significant impact on the interim financial report[154](index=154&type=chunk) - Standards issued but not yet effective include amendments to IAS 18, IAS 19, IFRS 9 and IFRS 7, IFRS 10 and IAS 28, among others[156](index=156&type=chunk) [Fee and Commission Income](index=56&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Fee%20and%20Commission%20Income) For H1 2025, fee and commission income significantly increased to **RMB 838,699 thousand**, primarily driven by securities brokerage, with growth in asset management, underwriting, futures brokerage, and investment advisory Fee and Commission Income Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Securities brokerage business | 544,618 | 364,314 | | Asset management business | 95,994 | 93,099 | | Underwriting and sponsorship business | 66,631 | 35,861 | | Financial advisory business | 21,237 | 22,077 | | Futures brokerage business | 68,469 | 35,663 | | Investment advisory business | 37,051 | 14,317 | | Custody business | 4,699 | 7,541 | | **Total** | **838,699** | **572,872** | - Revenue recognized at a point in time was **RMB 679,718 thousand**, and revenue recognized over time was **RMB 158,981 thousand**[158](index=158&type=chunk) [Interest Income](index=57&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Interest%20Income) For H1 2025, total interest income was **RMB 353,446 thousand**, largely stable year-on-year, primarily from financing activities and deposits with financial institutions Interest Income Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Financing | 182,693 | 168,188 | | Deposits with financial institutions | 143,221 | 145,729 | | Financial assets purchased under resale agreements | 2,136 | 7,485 | | Financial assets measured at fair value through other comprehensive income | 25,396 | 31,204 | | Debt investments at amortized cost | – | 741 | | **Total** | **353,446** | **353,347** | [Net Investment Income](index=57&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Net%20Investment%20Income) For H1 2025, net investment income increased to **RMB 258,674 thousand**, primarily from dividends, interest income on financial assets, and realized gains from disposals Net Investment Income Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Dividend and interest income from financial assets measured at fair value through profit or loss and other comprehensive income | 110,132 | 116,625 | | Net realized gains from disposal of financial assets measured at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, debt investments at amortized cost, and derivative financial instruments | 148,542 | 71,337 | | **Total** | **258,674** | **187,962** | [Other Income and Gains](index=58&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Other%20Income%20and%20Gains) For H1 2025, other income and gains significantly increased to **RMB 214,823 thousand**, mainly due to substantial unrealized fair value gains on financial assets and derivative financial instruments Other Income and Gains Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Exchange losses/(gains), net | (186) | 138 | | Rental income | 2,342 | 2,219 | | Government grants | 2,803 | 2,305 | | Gains on disposal of property and equipment | 126 | 62 | | Unrealized fair value gains on financial assets measured at fair value through profit or loss and derivative financial instruments | 209,372 | 49,616 | | Others | 366 | 763 | | **Total** | **214,823** | **55,103** | [Fee and Commission Expenses](index=58&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Fee%20and%20Commission%20Expenses) For H1 2025, fee and commission expenses increased to **RMB 118,523 thousand**, primarily due to higher expenses in securities brokerage business Fee and Commission Expenses Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Securities brokerage business | 112,604 | 67,383 | | Underwriting and sponsorship business | 5,919 | 5,800 | | Financial advisory business | – | 944 | | **Total** | **118,523** | **74,127** | [Interest Expenses](index=59&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Interest%20Expenses) For H1 2025, interest expenses slightly decreased to **RMB 195,238 thousand**, with major expenditures on debt instruments, borrowings from financial institutions, and financial assets sold under repurchase agreements Interest Expenses Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Accounts payable to brokerage clients | 9,426 | 10,972 | | Borrowings from a financial institution | 31,375 | 27,293 | | Financial assets sold under repurchase agreements | 37,462 | 45,381 | | Finance costs on lease liabilities | 2,033 | 2,940 | | Debt instruments | 108,411 | 104,817 | | Short-term borrowings from direct holding company | 713 | – | | Amounts payable to related companies | 773 | – | | Other investors in consolidated asset management plans | (255) | 7,082 | | Compensation payable | 5,300 | – | | **Total** | **195,238** | **198,485** | [Staff Costs](index=59&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Staff%20Costs) For H1 2025, staff costs significantly increased to **RMB 604,588 thousand**, mainly due to higher short-term benefits and contributions to defined contribution plans Staff Costs Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Short-term benefits | 540,362 | 320,339 | | Termination benefits | 3,356 | 2,545 | | Defined contribution plans | 60,870 | 39,279 | | **Total** | **604,588** | **362,163** | - The Group is required to participate in pension schemes in Chinese jurisdictions and has established an annuity plan, making contributions at a certain percentage of employee salaries[165](index=165&type=chunk) [Depreciation and Amortization](index=60&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Depreciation%20and%20Amortization) For H1 2025, total depreciation and amortization decreased to **RMB 92,141 thousand**, including property and equipment, right-of-use assets, and intangible assets Depreciation and Amortization Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Depreciation: Property and equipment | 18,077 | 22,563 | | Depreciation: Investment properties | 1,088 | 1,076 | | Depreciation: Right-of-use assets | 35,588 | 41,840 | | Amortization: Intangible assets | 31,405 | 31,679 | | Amortization: Leasehold improvements, long-term prepaid expenses and other assets held for debt settlement | 5,983 | 6,571 | | **Total** | **92,141** | **103,729** | [Other Operating Expenses](index=60&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Other%20Operating%20Expenses) For H1 2025, other operating expenses increased to **RMB 208,881 thousand**, primarily due to higher electronic equipment operating costs, postage and communication, and other daily expenses Other Operating Expenses Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Business entertainment expenses | 6,457 | 6,854 | | Travel expenses | 6,256 | 6,371 | | Consulting fees | 11,951 | 9,960 | | Electronic equipment operating costs | 53,719 | 35,476 | | Office miscellaneous expenses | 531 | 802 | | Other commission expenses | 20,066 | 21,726 | | Labor service fees | 17,609 | 15,685 | | Postage and communication expenses | 10,652 | 5,415 | | Litigation compensation | 8,843 | 3,389 | | Short-term lease payments | 3,981 | 14,091 | | Securities investor protection fund | 8,214 | 4,854 | | Utilities and property management fees | 9,243 | 10,191 | | Others | 51,359 | 23,296 | | **Total** | **208,881** | **158,110** | [Asset Impairment Losses, Net](index=61&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Asset%20Impairment%20Losses%2C%20Net) For H1 2025, net asset impairment losses significantly increased to **RMB 106,746 thousand**, mainly due to substantial impairment losses on other current assets, with impairment reversals on financial instruments Asset Impairment Losses, Net Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Financing | 3,598 | 3,755 | | Financial assets purchased under resale agreements | – | 34,890 | | Financial instruments measured at fair value through other comprehensive income | (105,753) | (483) | | Debt investments at amortized cost | – | (674) | | Other current assets | 208,901 | 4,921 | | **Total** | **106,746** | **42,409** | [Income Tax Expense](index=61&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Income%20Tax%20Expense) For H1 2025, income tax expense increased to **RMB 104,859 thousand**, comprising current and deferred tax, with China's corporate income tax at **25%** Income Tax Expense Details (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Current tax | 70,786 | 1,564 | | Deferred tax | 34,073 | 54,540 | | **Total** | **104,859** | **56,104** | - Provision for China corporate income tax is calculated at the statutory rate of **25%**[170](index=170&type=chunk) [Earnings Per Share](index=62&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Earnings%20Per%20Share) For H1 2025, profit attributable to ordinary equity holders was **RMB 240,733 thousand**, with basic and diluted EPS significantly increasing to **RMB 0.0924**, and no potential dilutive ordinary shares Earnings Per Share Calculation (For the six months ended June 30, 2025) | 項目 | 2025年 (RMB '000) | 2024年 (RMB '000) | | :--- | :--- | :--- | | Profit for the period attributable to ordinary equity holders of the Company | 240,733 | 53,872 | | Weighted average number of ordinary shares in issue for basic earnings per share calculation ('000 shares) | 2,604,567 | 2,604,567 | | **Basic and diluted earnings per share** | **RMB 0.0924** | **RMB 0.0207** | - For the six months ended June 30, 2025 and 2024, the Company had no potential dilutive ordinary shares, thus diluted earnings per share were the same as basic earnings per share[172](index=172&type=chunk) [Property and Equipment](index=62&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Property%20and%20Equipment) For H1 2025, the Group purchased **RMB 8,990 thousand** in property and equipment and disposed of **RMB 22 thousand** - During the six months ended June 30, 2025, the Group purchased property and equipment amounting to approximately **RMB 8,990 thousand**[173](index=173&type=chunk) - Disposals of property and equipment amounted to approximately **RMB 22 thousand**[173](index=173&type=chunk) [Right-of-Use Assets](index=62&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Right-of-Use%20Assets) For H1 2025, the Group signed **9 new property lease contracts** (2-5 year terms), resulting in new right-of-use assets of **RMB 8,697 thousand** - During the six months ended June 30, 2025, the Group entered into **9 new property lease contracts** with lease terms ranging from two to five years[174](index=174&type=chunk) - New right-of-use assets amounted to **RMB 8,697 thousand**[174](index=174&type=chunk) [Other Non-current Assets](index=63&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements-Other%20Non-current%20Assets) As of June 30, 2025, total other non-current assets were **RMB 75,277 thousand**, primarily comprising leasehold improvements, long-term prepaid expenses, other assets held for debt settlement, and prepayments Other Non-current Assets Details (As of June 30, 2025) | 項目 | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Leasehold improvements, long-term prepaid expenses and other assets held for debt settlement | 37,640 | 31,749 | |

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。 BANK OF CHONGQING CO., LTD.* 重慶銀行股份有限公司* （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股份代號：1963） 截至2025年6月30日止六個月中期業績公告 重慶銀行股份有限公司*（「本行」）董事會（「董事會」）欣然公佈本行及所屬子公司截至2025 年6月30日止六個月之未經審計中期業績。本公告列載本行2025年中期報告全文，並符 合香港聯合交易所有限公司證券上市規則中有關中期業績初步公告附載資料之要求。 本行2025年中期報告將於2025年9月向本行H股股東提供，並可於其時在本行網站 (www.cqcbank.com)及香港聯合交易所有限公司網站(www.hkexnews.hk)閱覽。 發佈業績公告 本業績公告的中英文版本可在本行網站(www.cqcbank.com)及香港聯合交易所有限公司網 站(www.hkexnews. ...

[Financial Summary and Performance Announcement](index=1&type=section&id=I.%20Financial%20Summary%20and%20Performance%20Announcement) [Financial Summary](index=1&type=section&id=1.1%20Financial%20Summary) Wuhan Organic Holdings Company Limited announced its interim results for the six months ended June 30, 2025, with revenue, gross profit, net profit, and basic earnings per share all decreasing compared to the same period last year H1 2025 Financial Summary (Year-on-Year) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,440.2 | 1,651.1 | (210.9) | (12.8%) | | Gross Profit | 163.0 | 186.6 | (23.6) | (12.7%) | | Net Profit | 38.7 | 48.1 | (9.4) | (19.4%) | | Basic and Diluted EPS (RMB) | 0.42 | 0.63 | (0.21) | (33.3%) | [Performance Announcement](index=1&type=section&id=1.2%20Performance%20Announcement) The company's board of directors announced the unaudited condensed consolidated interim results for the six months ended June 30, 2025, with comparable data for the same period in 2024 - The Group announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025, providing comparable data for the same period in 2024[3](index=3&type=chunk) [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=II.%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statement of Profit or Loss](index=2&type=section&id=2.1%20Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue, gross profit, and profit for the period all decreased compared to the same period last year Key Data from Condensed Consolidated Interim Statement of Profit or Loss (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 1,440,232 | 1,651,158 | | Cost of Sales | (1,277,195) | (1,464,482) | | Gross Profit | 163,037 | 186,676 | | Profit Before Tax | 47,492 | 63,424 | | Income Tax Expense | (8,762) | (15,375) | | Profit for the Period | 38,730 | 48,049 | | Profit Attributable to Owners of the Parent | 38,730 | 48,049 | | Basic and Diluted EPS (RMB) | 0.42 | 0.63 | [Condensed Consolidated Interim Statement of Comprehensive Income](index=3&type=section&id=2.2%20Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the six months ended June 30, 2025, decreased due to lower profit and exchange differences Key Data from Condensed Consolidated Interim Statement of Comprehensive Income (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period | 38,730 | 48,049 | | Exchange Differences on Translation of Foreign Operations | (51) | 26 | | Other Comprehensive Income for the Period (Net of Tax) | (51) | 26 | | Total Comprehensive Income for the Period | 38,679 | 48,075 | | Attributable to Owners of the Parent | 38,679 | 48,075 | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=2.3%20Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, total non-current and current assets increased, but net current liabilities remained negative, indicating liquidity pressure, while total assets less current liabilities and total non-current liabilities also increased Key Data from Condensed Consolidated Interim Statement of Financial Position (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-current Assets | 1,507,752 | 1,401,521 | | Total Current Assets | 1,102,244 | 950,201 | | Total Current Liabilities | 1,641,759 | 1,574,966 | | Net Current Liabilities | (539,515) | (624,765) | | Total Assets Less Current Liabilities | 968,237 | 776,756 | | Total Non-current Liabilities | 300,722 | 103,131 | | Net Assets | 667,515 | 673,625 | | Total Equity | 667,515 | 673,625 | [Condensed Consolidated Interim Statement of Changes in Equity](index=6&type=section&id=2.4%20Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to owners of the parent as of June 30, 2025, slightly decreased from the beginning of the year, influenced by profit, declared dividends, and exchange fluctuations Key Data from Condensed Consolidated Interim Statement of Changes in Equity (RMB thousand) | Metric | January 1, 2025 | Profit for the Period | Exchange Fluctuations | Dividends Declared | Share-based Payments | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Equity | 673,625 | 38,730 | (51) | (44,999) | 210 | 667,515 | H1 2024 Changes in Equity (RMB thousand) | Metric | January 1, 2024 | Profit for the Period | Exchange Fluctuations | Issue of New Shares | Share Issue Expenses | Share-based Payments | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Equity | 529,617 | 48,049 | 26 | 91,687 | (26,263) | 210 | 643,326 | [Condensed Consolidated Interim Statement of Cash Flows](index=7&type=section&id=2.5%20Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) Net cash from operating activities significantly decreased, net cash used in investing activities increased, and net cash from financing activities substantially grew, resulting in a net increase in cash and cash equivalents Key Data from Condensed Consolidated Interim Statement of Cash Flows (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 2,501 | 126,124 | | Net Cash Used in Investing Activities | (128,048) | (28,097) | | Net Cash from Financing Activities | 246,331 | 43,525 | | Net Increase in Cash and Cash Equivalents | 120,784 | 141,552 | | Cash and Cash Equivalents at End of Period | 194,413 | 207,011 | - Net cash from operating activities significantly decreased year-on-year, primarily due to increased inventories, trade receivables, and income tax paid[11](index=11&type=chunk) - Net cash used in investing activities significantly increased, mainly due to a substantial increase in expenditures for the purchase of property, plant, and equipment[12](index=12&type=chunk) - Net cash from financing activities substantially grew, primarily benefiting from increased proceeds from interest-bearing bank and other borrowings[12](index=12&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=9&type=section&id=III.%20Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [Company and Group Information](index=9&type=section&id=3.1%20Company%20and%20Group%20Information) Wuhan Organic Holdings Company Limited, incorporated in the Cayman Islands, manufactures and sells toluene derivatives through its Chinese subsidiaries and was listed on the Hong Kong Stock Exchange in June 2024 - The Company was incorporated in the Cayman Islands on September 23, 2016, as an investment holding company[13](index=13&type=chunk) - Its principal subsidiaries in China are engaged in the manufacturing and sale of toluene oxidation products, toluene chlorination products, and their derivatives[13](index=13&type=chunk) - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since June 18, 2024[13](index=13&type=chunk) [Basis of Preparation](index=9&type=section&id=3.2%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared under HKAS 34 and on a going concern basis, as management believes the Group has sufficient funds to continue operations despite net current liabilities - The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[14](index=14&type=chunk) - Despite net current liabilities of approximately **RMB 540 million** as of June 30, 2025, the Board believes the Group has sufficient available funds to continue as a going concern, including future operating cash inflows and approximately **RMB 650 million** in available credit facilities[15](index=15&type=chunk) [Changes in Accounting Policies](index=10&type=section&id=3.3%20Changes%20in%20Accounting%20Policies) This period saw the first-time adoption of the revised HKAS 21 'Lack of Exchangeability', clarifying currency exchangeability assessment and spot exchange rate estimation methods, and requiring related disclosures - The revised Hong Kong Accounting Standard 21 'Lack of Exchangeability' was adopted for the first time in the current period[16](index=16&type=chunk) - This amendment clarifies how an entity should assess currency exchangeability and estimate the spot exchange rate in the absence of exchangeability, and requires disclosure of related information[16](index=16&type=chunk) [Operating Segment Information](index=10&type=section&id=3.4%20Operating%20Segment%20Information) No operating segment information is presented as the chief operating decision-maker reviews overall financial performance, with all non-current assets in mainland China and no single customer exceeding 10% of revenue - The chief operating decision-maker reviews the Group's overall financial performance, thus no operating segment information is presented[17](index=17&type=chunk) - As of June 30, 2025, and December 31, 2024, all of the Group's non-current assets were located in mainland China[19](index=19&type=chunk) - For the six months ended June 30, 2024, and 2025, no revenue from transactions with a single external customer accounted for **10%** or more of the Group's total revenue[21](index=21&type=chunk) [Revenue](index=11&type=section&id=3.5%20Revenue) For the six months ended June 30, 2025, total revenue was RMB 1,440,232 thousand, primarily from toluene oxidation products, toluene chlorination products, and product trading, with mainland China contributing the largest share Revenue Analysis (RMB thousand) | Type of Goods or Services | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Toluene Oxidation Products | 894,653 | 1,025,415 | | Toluene Chlorination Products | 348,943 | 335,685 | | Product Trading | 196,636 | 290,058 | | **Total** | **1,440,232** | **1,651,158** | | Geographical Market | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Mainland China | 1,100,924 | 1,219,025 | | Asia (excluding Mainland China) | 158,832 | 171,413 | | European Union | 107,574 | 135,583 | | Americas | 64,930 | 111,118 | | Other Countries/Regions | 7,972 | 14,019 | | **Total** | **1,440,232** | **1,651,158** | - All revenue is recognized at a point in time when goods are transferred[24](index=24&type=chunk) [Profit Before Tax](index=12&type=section&id=3.6%20Profit%20Before%20Tax) For the six months ended June 30, 2025, profit before tax decreased, with key adjustments including increased depreciation, amortization, R&D expenses, and government grants and exchange differences Profit Before Tax Adjustments (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Before Tax | 47,492 | 63,424 | | Finance Costs | 17,487 | 21,134 | | Depreciation of Property, Plant and Equipment | 65,131 | 58,757 | | Research and Development Costs (Expensed in the Year) | 72,737 | 58,855 | | Government Grants Related to Income | (9,708) | (3,705) | | Employee Benefit Expenses | 61,803 | 51,123 | - Amortization of other intangible assets is included in 'Administrative expenses' in the statement of profit or loss[25](index=25&type=chunk) [Income Tax Expense](index=13&type=section&id=3.7%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense decreased, with varying tax rates by region, including a 15% preferential rate for high-tech enterprises in mainland China Income Tax Expense Analysis (RMB thousand) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Hong Kong Current | 38 | 92 | | Mainland China Current | 12,132 | 6,371 | | Deferred Income Tax | (3,408) | 8,912 | | **Total Tax Expense for the Period** | **8,762** | **15,375** | - Entities incorporated in the Cayman Islands and British Virgin Islands are not subject to income tax[28](index=28&type=chunk) - The statutory corporate income tax rate in mainland China is **25%**, but high-tech enterprises (such as Wuhan Organic Industrial Co., Ltd. and Qianjiang Xinyihong Organic Chemical Co., Ltd.) enjoy a preferential tax rate of **15%**[30](index=30&type=chunk) [Dividends](index=14&type=section&id=3.8%20Dividends) On May 15, 2025, the company's shareholders approved and declared a final dividend of RMB 0.4823 per ordinary share for 2024, totaling approximately RMB 44,999 thousand - On May 15, 2025, the Company declared a final dividend of **RMB 0.4823** per ordinary share for 2024, totaling approximately **RMB 44,999 thousand**[31](index=31&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=14&type=section&id=3.9%20Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic earnings per share decreased due to lower profit and an increase in the weighted average number of ordinary shares outstanding EPS Calculation (RMB) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Ordinary Equity Holders of the Parent (RMB thousand) | 38,730 | 48,049 | | Weighted Average Number of Ordinary Shares Outstanding for the Period | 93,300,000 | 76,307,143 | | Earnings Per Share (Basic and Diluted) | 0.42 | 0.63 | - For the six months ended June 30, 2025, and 2024, the Company had no potential dilutive share options or other financial instruments related to its ordinary shares outstanding[32](index=32&type=chunk) [Property, Plant and Equipment](index=15&type=section&id=3.10%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired assets at a cost of RMB 151,745 thousand, generated a net gain of RMB 27 thousand from asset disposals, and pledged certain buildings for bank loans - For the six months ended June 30, 2025, the Group's cost of acquiring property, plant, and equipment was **RMB 151,745 thousand**, a significant increase from **RMB 90,654 thousand** in the same period last year[37](index=37&type=chunk) - As of June 30, 2025, certain buildings with a gross carrying amount of **RMB 133,337 thousand** were pledged to secure bank and other borrowings[37](index=37&type=chunk) [Trade and Bills Receivables](index=15&type=section&id=3.11%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables increased, with a higher proportion of bills receivables and most trade receivables aged within 4 months Trade and Bills Receivables (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables | 152,059 | 154,044 | | Bills Receivables | 185,003 | 158,781 | | Impairment | (1,282) | (1,410) | | **Total** | **335,780** | **311,415** | Trade Receivables Aging Analysis (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 4 months | 127,556 | 133,608 | | Over 4 months but within 6 months | 20,084 | 13,839 | | Over 6 months but within 12 months | 3,137 | 5,188 | Bills Receivables Maturity Analysis (RMB thousand) | Maturity | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 85,624 | 101,203 | | Over 3 months but within 6 months | 99,379 | 57,578 | [Trade and Bills Payables](index=16&type=section&id=3.12%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables slightly increased, with the vast majority aged within 1 year Trade and Bills Payables Aging Analysis (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 371,354 | 360,695 | | 1 to 2 years | — | 61 | | Over 2 years | 21 | 22 | | **Total** | **371,375** | **360,778** | [Interest-bearing Bank and Other Borrowings](index=17&type=section&id=3.13%20Interest-bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, total interest-bearing bank and other borrowings significantly increased, with a higher proportion of current borrowings and new non-current secured and unsecured bank loans Interest-bearing Bank and Other Borrowings Analysis (RMB thousand) | Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Current Borrowings** | | | | Bank Loans — Secured | 288,500 | 98,500 | | Bank Loans — Unsecured | 668,408 | 709,950 | | Current Portion of Long-term Bank Loans — Secured | 10,428 | 42,000 | | Current Portion of Long-term Bank Loans — Unsecured | — | 23,500 | | Other Borrowings — Unsecured | 30,000 | 49,000 | | **Total Current** | **997,336** | **922,950** | | **Non-current Borrowings** | | | | Bank Loans — Secured | 157,412 | — | | Bank Loans — Unsecured | 48,000 | — | | **Total Non-current** | **205,412** | **—** | | **Total** | **1,202,748** | **922,950** | - Most bank and other borrowings are denominated in RMB and bear fixed interest rates, while some secured bank loans bear floating interest rates[46](index=46&type=chunk) - The Group plans to repay maturing loans on schedule through extensions, utilization of unused bank financing, and operating cash inflows[46](index=46&type=chunk) [Share Capital](index=18&type=section&id=3.14%20Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital remained consistent with December 31, 2024, comprising 93,300,000 ordinary shares of USD 0.0001 each Share Capital Information (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Issued and Fully Paid Share Capital | 61 | 61 | | Number of Ordinary Shares | 93,300,000 | 93,300,000 | [Commitments](index=18&type=section&id=3.15%20Commitments) As of June 30, 2025, the Group's contractual commitments were RMB 38,911 thousand, primarily related to plant and machinery, with bank and other borrowings secured by certain assets Contractual Commitments (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted but not provided for: Plant and machinery | 38,911 | 27,794 | - The Group's bank and other borrowings are secured by property, plant and equipment, and buildings with a gross carrying amount of **RMB 133,337 thousand**, and leasehold land with a gross carrying amount of **RMB 112,844 thousand**[46](index=46&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) [Performance Review](index=19&type=section&id=4.1%20Performance%20Review) The Group's overall revenue and gross profit decreased due to weak global chemical industry demand, declining raw material prices, and intensified competition, while striving to maintain profitability through optimized strategies - The Group is a renowned supplier of toluene derivatives, primarily engaged in the manufacturing and sale of toluene oxidation products, toluene chlorination products, and their derivatives, as well as product trading[47](index=47&type=chunk) - During the reporting period, the Group's overall revenue decreased by **12.8%** year-on-year to **RMB 1,440.2 million**, and gross profit decreased by **12.7%** year-on-year to **RMB 163.0 million**, primarily due to a decrease in the overall average selling price per unit of products[51](index=51&type=chunk) - Profit attributable to owners of the parent decreased by **19.4%** to **RMB 38.7 million**, and net profit margin decreased by **0.2** percentage points to **2.7%**[52](index=52&type=chunk)[53](index=53&type=chunk) [Performance by Product Type](index=19&type=section&id=4.1.1%20Performance%20by%20Product%20Type) Toluene oxidation product revenue decreased but gross margin improved, toluene chlorination product revenue grew but gross margin declined, and product trading revenue and gross profit both significantly fell Performance Overview by Product Type (RMB thousand) | Product Type | H1 2025 Revenue | H1 2024 Revenue | H1 2025 Gross Margin | H1 2024 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Toluene Oxidation Products and Their Derivatives | 894,653 | 1,025,415 | 12.9% | 11.6% | | Toluene Chlorination Products and Their Derivatives | 348,943 | 335,685 | 13.5% | 18.8% | | Product Trading | 196,636 | 290,058 | 0.4% | 1.4% | | **Total** | **1,440,232** | **1,651,158** | **11.3%** | **11.3%** | - The overall average selling price per ton of products decreased by approximately **RMB 1,341/ton**, which was the primary reason for the reduction in revenue and gross profit[51](index=51&type=chunk) - Overall gross margin remained flat year-on-year, mainly due to the improved gross margin of toluene oxidation products offsetting declines in other products[51](index=51&type=chunk) [Revenue by Customer Geographical Location](index=20&type=section&id=4.1.2%20Revenue%20by%20Customer%20Geographical%20Location) During the reporting period, both domestic and export sales decreased, with a more significant decline in export sales Revenue by Customer Geographical Location (RMB thousand) | Sales Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Domestic Sales | 1,100,924 | 1,219,025 | | Export Sales | 339,308 | 432,133 | | **Total** | **1,440,232** | **1,651,158** | [Toluene Oxidation Products and Their Derivatives](index=21&type=section&id=4.1.3%20Toluene%20Oxidation%20Products%20and%20Their%20Derivatives) Revenue from toluene oxidation products and their derivatives decreased by 12.8% year-on-year, but gross margin increased by 1.3 percentage points to 12.9%, driven by differentiated strategies and high-value-added products - Revenue from toluene oxidation products and their derivatives accounted for approximately **62.1%** of the Group's total revenue[54](index=54&type=chunk) - Revenue decreased by **12.8%** to **RMB 894.7 million**, mainly due to the pass-through of lower raw material costs to reduced average product selling prices[54](index=54&type=chunk) - Gross margin increased by **1.3** percentage points to **12.9%**, primarily due to differentiated business strategies, improved capacity utilization, and increased gross margin for high-value-added products[55](index=55&type=chunk) [Toluene Chlorination Products and Their Derivatives](index=21&type=section&id=4.1.4%20Toluene%20Chlorination%20Products%20and%20Their%20Derivatives) Revenue from toluene chlorination products and their derivatives increased by 3.9% year-on-year, with sales volume up 46.5%, but gross profit and gross margin declined due to weak downstream demand and price promotions - Revenue from toluene chlorination products and their derivatives accounted for approximately **24.2%** of the Group's total revenue[57](index=57&type=chunk) - Revenue increased by **3.9%** to **RMB 348.9 million**, with sales volume growing by **46.5%** to **62,046 tons**, but the average unit selling price decreased by **29.1%**[57](index=57&type=chunk)[58](index=58&type=chunk) - Gross profit decreased by **25.2%** to **RMB 47.3 million**, and gross margin decreased by **5.3** percentage points to **13.5%**, primarily because the decline in unit price was greater than the decline in cost[58](index=58&type=chunk) [Product Trading](index=22&type=section&id=4.1.5%20Product%20Trading) Product trading revenue decreased by 32.2% year-on-year to RMB 196.6 million, gross profit fell to RMB 0.7 million, and gross margin decreased to 0.4%, primarily due to losses from toluene trading - Product trading revenue accounted for approximately **13.7%** of the Group's total revenue[59](index=59&type=chunk) - Revenue decreased by **32.2%** to **RMB 196.6 million**, primarily affected by both price and sales volume declines[59](index=59&type=chunk) - Gross profit decreased to **RMB 0.7 million**, and gross margin decreased to **0.4%**, primarily due to losses from toluene trading[59](index=59&type=chunk)[60](index=60&type=chunk) [Exports](index=23&type=section&id=4.1.6%20Exports) Export revenue decreased by 21.5% year-on-year, with its proportion of total revenue declining, mainly due to lower raw material costs, sluggish global chemical demand, and US tariff policies - Export revenue decreased by **21.5%** to **RMB 339.3 million**[61](index=61&type=chunk) - Export revenue accounted for approximately **23.6%** of total revenue, a decrease of **2.6** percentage points from the same period last year[61](index=61&type=chunk) - Reasons for the decline include lower raw material costs leading to reduced selling prices, persistent sluggish demand in the global chemical industry, and US tariff policies[61](index=61&type=chunk) [Business Outlook](index=23&type=section&id=4.2%20Business%20Outlook) The Group will monitor market dynamics, adjust strategies, expand sales networks, enhance R&D, and implement cost reduction measures to improve profitability, while continuing investment in the Hubei Xinxuanhong production base expansion - The global chemical industry faces weak demand and high competitive pressure, with weakening macroeconomic growth momentum, volatile downward trends in the international crude oil market, and US tariff policies exacerbating trade friction[62](index=62&type=chunk) - The Group will implement several strategic initiatives, including flexible scheduling of production facility maintenance, optimizing product sales strategies, expanding global sales and marketing networks, enhancing R&D capabilities to develop high-value products, and achieving cost reduction and efficiency improvement through production process optimization, energy efficiency enhancement, and technological transformation[63](index=63&type=chunk) - The second phase expansion plan for the Hubei Xinxuanhong production base is expected to commence construction in the second half of 2025, with some capacity commencing production in 2026 and the remainder phased into use until 2029, to promote business growth[64](index=64&type=chunk) [Financial Review](index=25&type=section&id=4.3%20Financial%20Review) The Group experienced decreased revenue and gross profit, partially offset by expense control and capitalized interest, maintaining sound liquidity despite increased borrowings and a higher debt-to-equity ratio, while continuing investment in capacity expansion and managing working capital - The Group's daily working capital is primarily sourced from operating cash flows, bank borrowings, and net proceeds from the global offering[74](index=74&type=chunk) - As of June 30, 2025, interest-bearing bank and other borrowings increased by **30.3%** to **RMB 1,202.7 million**, primarily for daily business operations and capacity expansion[75](index=75&type=chunk) - The Group has **RMB 650 million** in unused bank credit facilities to meet liquidity needs[75](index=75&type=chunk) [Revenue and Gross Profit](index=25&type=section&id=4.3.1%20Revenue%20and%20Gross%20Profit) During the reporting period, revenue and gross profit decreased by 12.8% and 12.7% respectively, but gross margin remained flat at 11.3% year-on-year Revenue and Gross Profit (RMB million) | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,440.2 | 1,651.2 | (12.8%) | | Gross Profit | 163.0 | 186.7 | (12.7%) | | Gross Margin | 11.3% | 11.3% | 0.0% | [Other Income and Gains](index=25&type=section&id=4.3.2%20Other%20Income%20and%20Gains) Other income and gains decreased by RMB 2.3 million to RMB 28.4 million, primarily due to reduced VAT super deduction, partially offset by government grants Other Income and Gains (RMB million) | Metric | H1 2025 | H1 2024 | Change (RMB million) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 28.4 | 30.7 | (2.3) | - The decrease was mainly due to a reduction in VAT super deduction, partially offset by government grants received for foreign economic and trade development[66](index=66&type=chunk) [Selling and Distribution Expenses](index=25&type=section&id=4.3.3%20Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by RMB 1.1 million to RMB 12.3 million, primarily due to reduced staff remuneration resulting from lower sales volume Selling and Distribution Expenses (RMB million) | Metric | H1 2025 | H1 2024 | Change (RMB million) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 12.3 | 13.4 | (1.1) | - Selling and distribution expenses as a percentage of revenue increased from **0.8%** to **0.9%**[67](index=67&type=chunk) [Administrative Expenses](index=25&type=section&id=4.3.4%20Administrative%20Expenses) Administrative expenses decreased by RMB 10.1 million to RMB 50.1 million, primarily due to the absence of listing expenses in the current period Administrative Expenses (RMB million) | Metric | H1 2025 | H1 2024 | Change (RMB million) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 50.1 | 60.2 | (10.1) | - Administrative expenses as a percentage of revenue decreased from **3.6%** to **3.5%**[68](index=68&type=chunk) [Research and Development Expenses](index=26&type=section&id=4.3.5%20Research%20and%20Development%20Expenses) R&D expenses increased by RMB 13.8 million to RMB 72.7 million, primarily due to increased material input as new process R&D projects entered the verification and testing phase Research and Development Expenses (RMB million) | Metric | H1 2025 | H1 2024 | Change (RMB million) | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 72.7 | 58.9 | 13.8 | - R&D expenses as a percentage of revenue increased from **3.6%** to **5.1%**[69](index=69&type=chunk) [Finance Costs](index=26&type=section&id=4.3.6%20Finance%20Costs) Finance costs decreased by RMB 3.6 million to RMB 17.5 million, primarily due to lower borrowing interest rates and capitalization of interest for the Xinxuanhong project Finance Costs (RMB million) | Metric | H1 2025 | H1 2024 | Change (RMB million) | | :--- | :--- | :--- | :--- | | Finance Costs | 17.5 | 21.1 | (3.6) | [Income Tax Expense](index=26&type=section&id=4.3.7%20Income%20Tax%20Expense) Income tax expense decreased by RMB 6.6 million to RMB 8.8 million, primarily due to lower profit before tax and the absence of non-deductible listing expenses in the current period, with the effective tax rate decreasing Income Tax Expense (RMB million) | Metric | H1 2025 | H1 2024 | Change (RMB million) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 8.8 | 15.4 | (6.6) | - The effective tax rate decreased from **24.2%** to **18.5%**, primarily due to the absence of non-deductible listing expenses in the current period[71](index=71&type=chunk) [Profit for the Period](index=26&type=section&id=4.3.8%20Profit%20for%20the%20Period) Net profit for the period decreased by RMB 9.4 million to RMB 38.7 million, with net profit margin decreasing from 2.9% to 2.7% Profit for the Period (RMB million) | Metric | H1 2025 | H1 2024 | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Profit | 38.7 | 48.1 | (9.4) | (19.4%) | | Net Profit Margin | 2.7% | 2.9% | (0.2%) | | [Liquidity and Capital Structure](index=27&type=section&id=4.3.9%20Liquidity%20and%20Capital%20Structure) The Group maintained sound liquidity with increased cash and cash equivalents, while interest-bearing bank and other borrowings increased for operations and capacity expansion Liquidity and Borrowings (RMB million) | Metric | June 30, 2025 | December 31, 2024 | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 194.4 | 73.7 | 120.7 | 163.8% | | Pledged Deposits | 81.2 | 125.4 | (44.2) | (35.2%) | | Interest-bearing Bank and Other Borrowings | 1,202.7 | 923.0 | 279.7 | 30.3% | - The Group has revolving credit accounts totaling **RMB 1.94 billion**, of which **RMB 650 million** is unused credit facilities[75](index=75&type=chunk) - The Group does not have any risk hedging instruments or foreign currency investment hedges[76](index=76&type=chunk) [Gearing Ratio](index=27&type=section&id=4.3.10%20Gearing%20Ratio) As of June 30, 2025, the equity-to-debt ratio increased to 140.5% from 108.4% as of December 31, 2024, primarily due to increased borrowings Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Equity-to-Debt Ratio | 140.5% | 108.4% | - The increase in the equity-to-debt ratio was primarily due to increased borrowings[77](index=77&type=chunk) [Basic and Diluted Earnings Per Share](index=28&type=section&id=4.3.11%20Basic%20and%20Diluted%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share was RMB 0.42, a year-on-year decrease of 33.3% Basic and Diluted Earnings Per Share (RMB) | Metric | H1 2025 | H1 2024 | Change (RMB) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share | 0.42 | 0.63 | (0.21) | (33.3%) | [Current Assets](index=28&type=section&id=4.3.12%20Current%20Assets) As of June 30, 2025, total current assets increased to RMB 1,102.2 million, primarily comprising inventories, trade and bills receivables, prepayments, and cash equivalents Current Assets Composition (RMB million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | 1,102.2 | 950.2 | | Inventories | 335.8 | 292.4 | | Trade and Bills Receivables | 335.8 | 311.4 | | Prepayments, Deposits and Other Receivables | 155.0 | 147.3 | | Cash and Cash Equivalents | 194.4 | 73.7 | | Pledged Deposits | 81.2 | 125.4 | [Inventories](index=28&type=section&id=4.3.13%20Inventories) Inventories increased by RMB 43.4 million to RMB 335.8 million, and inventory turnover days increased from 37 to 45, primarily due to the full-capacity rapid turnover strategy being affected by weak market demand and new products' market expansion not meeting expectations Inventories and Turnover Days (RMB million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Inventories | 335.8 | 292.4 | | Inventory Turnover Days | 45 days | 37 days | - The increase in inventories was mainly due to the full-capacity rapid turnover strategy being affected by weak downstream demand for chlorination products, and the market expansion of new products from Xinxuanhong not meeting expectations[80](index=80&type=chunk) [Trade and Bills Receivables](index=29&type=section&id=4.3.14%20Trade%20and%20Bills%20Receivables) Trade and bills receivables increased by RMB 24.4 million to RMB 335.8 million, and turnover days increased from 34 to 41, primarily due to an increase in bills receivables received that did not meet derecognition criteria Trade and Bills Receivables (RMB million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade and Bills Receivables | 335.8 | 311.4 | | Turnover Days | 41 days | 34 days | - The increase in trade receivables balance and turnover days was primarily attributable to an increase in bills receivables received by the Group that did not meet derecognition criteria[81](index=81&type=chunk) [Prepayments and Other Receivables](index=29&type=section&id=4.3.15%20Prepayments%20and%20Other%20Receivables) Prepayments and other receivables increased by RMB 7.7 million to RMB 155.0 million, primarily due to increased prepayments for raw material purchases Prepayments and Other Receivables (RMB million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments and Other Receivables | 155.0 | 147.3 | | Change | 7.7 | | - The increase was mainly due to increased prepayments for raw material purchases[82](index=82&type=chunk) [Current Liabilities](index=29&type=section&id=4.3.16%20Current%20Liabilities) Total current liabilities increased to RMB 1,641.8 million, primarily including trade and bills payables, other payables, accrued expenses and contract liabilities, and interest-bearing bank and other borrowings Current Liabilities Composition (RMB million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Liabilities | 1,641.8 | 1,575.0 | | Trade and Bills Payables | 371.4 | 360.8 | | Other Payables, Accrued Expenses and Contract Liabilities | 263.1 | 286.0 | | Interest-bearing Bank and Other Borrowings | 997.3 | 923.0 | | Lease Liabilities | 10.0 | 3.9 | [Trade and Bills Payables](index=29&type=section&id=4.3.17%20Trade%20and%20Bills%20Payables) Trade and bills payables increased by RMB 10.6 million to RMB 371.4 million, and turnover days increased from 32 to 52, primarily due to suppliers offering more relaxed payment terms Trade and Bills Payables (RMB million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade and Bills Payables | 371.4 | 360.8 | | Turnover Days | 52 days | 32 days | - The increase was primarily attributable to suppliers providing more relaxed payment terms[84](index=84&type=chunk) [Other Payables, Accrued Expenses and Contract Liabilities](index=30&type=section&id=4.3.18%20Other%20Payables%2C%20Accrued%20Expenses%20and%20Contract%20Liabilities) Total other payables, accrued expenses, and contract liabilities decreased by RMB 22.9 million to RMB 263.1 million, primarily due to the settlement of Xinxuanhong Phase I project payments Other Payables, Accrued Expenses and Contract Liabilities (RMB million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total | 263.1 | 286.0 | | Change | (22.9) | | - The decrease was mainly due to the settlement of Xinxuanhong Phase I project payments[85](index=85&type=chunk) [Pledge of Assets](index=30&type=section&id=4.3.19%20Pledge%20of%20Assets) As of June 30, 2025, the Group pledged property, plant and equipment, and leasehold land with a net book value of approximately RMB 246.2 million to secure bank and other borrowings and bank facilities Net Book Value of Pledged Assets (RMB million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Book Value of Pledged Assets | 246.2 | 258.8 | [Material Acquisitions, Disposals and Major Investments](index=30&type=section&id=4.3.20%20Material%20Acquisitions%2C%20Disposals%20and%20Major%20Investments) Aside from the production expansion of the Hubei Xinxuanhong production base, the Group had no other material acquisitions, disposals, or major investments during the reporting period - Aside from the production expansion of the Hubei Xinxuanhong production base, the Group had no other material acquisitions, disposals, or major investments during the reporting period[87](index=87&type=chunk) [Capital Expenditure and Capital Commitments](index=30&type=section&id=4.3.21%20Capital%20Expenditure%20and%20Capital%20Commitments) Capital expenditure during the reporting period was RMB 166.1 million, primarily related to the purchase of property, plant and equipment, and leasehold land, with period-end contractual commitments of RMB 38.9 million Capital Expenditure and Commitments (RMB million) | Metric | H1 2025 | | :--- | :--- | | Capital Expenditure | 166.1 | | Contractual Commitments (Period-end) | 38.9 | [Future Plans for Material Investments or Capital Assets](index=30&type=section&id=4.3.22%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Aside from the Hubei Xinxuanhong production base expansion plan and the construction of Kangxin Industrial Park, the Group has no other future plans for material investments or capital assets - The Group's future plans include the Hubei Xinxuanhong production base expansion plan and the construction of Kangxin Industrial Park[89](index=89&type=chunk) [Contingent Liabilities](index=30&type=section&id=4.3.23%20Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[90](index=90&type=chunk) [Other Information](index=31&type=section&id=V.%20Other%20Information) [Foreign Exchange and Interest Rate Risks](index=31&type=section&id=5.1%20Foreign%20Exchange%20and%20Interest%20Rate%20Risks) The Group's primary business is RMB-denominated, facing minimal foreign exchange and interest rate risks, with no current hedging policies - The Group's principal operations are conducted in China and denominated in RMB, and management believes there is no significant foreign exchange risk[91](index=91&type=chunk) - Currently, the Group does not have any foreign currency hedging policies[91](index=91&type=chunk) - Except for some floating-rate borrowings, all bank and other borrowings are denominated in RMB and bear fixed interest rates, and interest rate risk is considered minimal and controllable[91](index=91&type=chunk) [Use of Proceeds from Global Offering](index=31&type=section&id=5.2%20Use%20of%20Proceeds%20from%20Global%20Offering) The Company, listed in June 2024, utilized HKD 10.0 million of its HKD 25.9 million global offering proceeds for working capital and sales & marketing, with most funds still allocated for Hubei Xinxuanhong production base expansion Use of Proceeds from Global Offering and Utilization (HKD million) | Use of Proceeds | Percentage (%) | Net Proceeds from Global Offering | Amount Utilized as of June 30, 2025 | Amount Unutilized as of June 30, 2025 | Expected Timeline for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Construction of new production facilities to increase capacity at Hubei Xinxuanhong production base | 82.0% | 21.2 | 6.4 | 14.8 | On or before December 2028 | | Research and Development Activities | 3.0% | 0.8 | 0.2 | 0.6 | On or before December 2026 | | Sales and Marketing Activities | 5.0% | 1.3 | 0.8 | 0.5 | On or before December 2026 | | Working Capital and General Corporate Purposes | 10.0% | 2.6 | 2.6 | — | — | | **Total** | **100%** | **25.9** | **10.0** | **15.9** | | - Net proceeds from the global offering were approximately **HKD 25.9 million**[92](index=92&type=chunk) [Employees and Remuneration Policy](index=32&type=section&id=5.3%20Employees%20and%20Remuneration%20Policy) The Group had 631 employees, with total employee costs of RMB 61.8 million, a year-on-year increase, mainly due to salary adjustments, increased social security expenses, and employee bonuses from cost reduction and efficiency improvement measures Employee and Remuneration Information (RMB million) | Metric | June 30, 2025 | December 31, 2024 | H1 2025 Employee Costs | H1 2024 Employee Costs | | :--- | :--- | :--- | :--- | :--- | | Number of Employees | 631 | 626 | | | | Total Employee Costs | | | 61.8 | 51.1 | - The increase in employee costs was mainly due to salary adjustments, increased social security expenses, and increased employee bonuses resulting from cost reduction and efficiency improvement measures[95](index=95&type=chunk) [Events After Reporting Period](index=33&type=section&id=5.4%20Events%20After%20Reporting%20Period) After the reporting period, Hubei Kangxin Chemical Trading Co., Ltd., an indirect wholly-owned subsidiary of the Company, entered into a construction contract with Hubei Tongsheng Construction Engineering Co., Ltd. for the construction of Kangxin Industrial Park - On July 8, 2025, Hubei Kangxin Chemical Trading Co., Ltd. entered into a construction contract with Hubei Tongsheng Construction Engineering Co., Ltd. for the construction of Kangxin Industrial Park[96](index=96&type=chunk) [Interim Dividend](index=33&type=section&id=5.5%20Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the reporting period - The Board does not recommend the payment of an interim dividend for the reporting period[97](index=97&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=5.6%20Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares, and the Company held no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[98](index=98&type=chunk) - As of June 30, 2025, the Company held no treasury shares[98](index=98&type=chunk) [Compliance with Corporate Governance Code](index=33&type=section&id=5.7%20Compliance%20with%20Corporate%20Governance%20Code) The Group is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules of the Stock Exchange throughout the reporting period - The Group is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules of the Stock Exchange[99](index=99&type=chunk) - Throughout the reporting period, the Company has complied with all applicable code provisions set out in the Corporate Governance Code[100](index=100&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=34&type=section&id=5.8%20Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules, and all directors confirmed compliance with the code throughout the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules[101](index=101&type=chunk) - Following enquiry, each Director confirmed compliance with the requirements set out in the Model Code throughout the reporting period, and the Company was not aware of any non-compliance[101](index=101&type=chunk) [Audit Committee and Review of Financial Statements](index=34&type=section&id=5.9%20Audit%20Committee%20and%20Review%20of%20Financial%20Statements) The Audit Committee has reviewed the Group's unaudited interim financial statements for the six months ended June 30, 2025, and Ernst & Young, the independent auditor, has performed an independent review - The Audit Committee has reviewed the Group's unaudited interim financial statements for the six months ended June 30, 2025[102](index=102&type=chunk) - Ernst & Young, the independent auditor, has performed an independent review of the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[102](index=102&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=35&type=section&id=5.10%20Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement will be published on the Stock Exchange website and the Company's website, and the interim report will be dispatched to shareholders and published on the websites in due course - This interim results announcement will be published on the Stock Exchange website www.hkexnews.hk and the Company's website www.chinaorganic.com[103](index=103&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the aforementioned websites in due course[103](index=103&type=chunk) [Board of Directors Information](index=35&type=section&id=5.11%20Board%20of%20Directors%20Information) As of the announcement date, the Board of Directors comprises Executive, Non-executive, and Independent Non-executive Directors - The Board of Directors comprises Executive Directors Mr. Zou Xiaohong (Chairman) and Mr. Chen Ping[104](index=104&type=chunk) - Non-executive Directors include Mr. Gao Lei, Mr. Shen Yingming, and Ms. Li Deye[104](index=104&type=chunk) - Independent Non-executive Directors include Mr. Liao Qiyu, Dr. Liu Zhongdong, and Dr. Yuan Kang[104](index=104&type=chunk)