[Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) [Business Summary](index=1&type=section&id=%E4%B8%9A%E5%8A%A1%E6%91%98%E8%A6%81) Tianjin Tianbao Energy Co., Ltd. and its subsidiaries experienced a 6.6% year-on-year decrease in consolidated operating revenue in the first half of 2025, yet profit attributable to company shareholders surged by 453.3%, with basic and diluted earnings per share increasing by 451.8% 2025 First Half Key Financial Highlights | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Consolidated Operating Revenue | 379,076 | 405,828 | -6.6% | | Profit Attributable to Equity Holders of the Company | 9,888 | 1,787 | +453.3% | | Basic and Diluted Earnings Per Share (cents) | 6.18 | 1.12 | +451.8% | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E7%BB%BC%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue decreased by 6.6% year-on-year to RMB 379,076 thousands, but operating profit and profit before tax both achieved significant growth through sales cost control and reduced finance costs, with total profit and comprehensive income for the period surging by 150.3% Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 379,076 | 405,828 | -6.6% | | Cost of Sales | (346,788) | (378,928) | -8.5% | | Gross Profit | 32,288 | 26,900 | +20.0% | | Operating Profit | 21,916 | 15,430 | +42.0% | | Profit Before Tax | 15,705 | 7,119 | +120.6% | | Total Profit and Comprehensive Income for the Period | 12,450 | 4,974 | +150.3% | | Profit Attributable to Equity Holders of the Company | 9,888 | 1,787 | +453.3% | | Basic Earnings Per Share (cents) | 6.18 | 1.12 | +451.8% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the company's total assets slightly decreased, but effective management led to a significant reduction in current liabilities, turning net current assets from negative to positive, with both net assets and total equity increasing, indicating an improved financial structure Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 717,875 | 739,183 | -2.9% | | Current Assets | 299,167 | 331,591 | -9.8% | | Current Liabilities | 272,932 | 334,767 | -18.5% | | Net Current Assets/(Liabilities) | 26,235 | (3,176) | From negative to positive | | Net Assets | 475,855 | 465,641 | +2.2% | | Total Equity | 475,855 | 465,641 | +2.2% | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For the six months ended June 30, 2025, the company's total equity increased from RMB 465,641 thousands at the beginning of the year to RMB 475,855 thousands, primarily due to profit for the period of RMB 12,450 thousands, of which RMB 9,888 thousands was attributable to equity holders of the company Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Equity Holders of the Company | 323,997 | 316,345 | +2.4% | | Non-controlling Interests | 151,858 | 149,296 | +1.7% | | Total Equity | 475,855 | 465,641 | +2.2% | | Profit for the Period (Total) | 12,450 | 4,974 (2024 corresponding period) | +150.3% | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash from operating activities increased year-on-year, but cash outflow from investing activities significantly decreased, while cash outflow from financing activities substantially increased, leading to an expanded net decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 51,813 | 40,716 | +27.3% | | Net Cash Used in Investing Activities | (3,525) | (39,932) | -91.2% (outflow decreased) | | Net Cash Used in Financing Activities | (63,083) | (10,920) | +477.7% (outflow increased) | | Net Decrease in Cash and Cash Equivalents | (14,795) | (10,136) | +45.9% (decrease expanded) | | Cash and Cash Equivalents at June 30 | 113,909 | 134,171 | -15.1% | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) [1. Company and Group Information](index=7&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E5%8F%8A%E9%9B%86%E5%9B%A2%E8%B5%84%E6%96%99) Tianjin Tianbao Energy Co., Ltd. is incorporated in China and listed on the Main Board of the Hong Kong Stock Exchange, primarily engaged in providing integrated energy solutions - The company is incorporated in China, listed on the Main Board of the Hong Kong Stock Exchange, and primarily engaged in providing integrated energy solutions[10](index=10&type=chunk)[11](index=11&type=chunk) [2. Basis of Preparation and 3. Accounting Policies](index=7&type=section&id=2.%20%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86%E5%8F%8A3.%20%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and the Listing Rules of the Stock Exchange, using the historical cost basis, with accounting policies consistent with the prior year, and new amendments applied this period having no significant impact on financial performance - Financial statements adhere to International Accounting Standard 34 and the Listing Rules of the Stock Exchange, adopting the historical cost basis[12](index=12&type=chunk)[13](index=13&type=chunk) - Amendments to International Financial Reporting Standards (IAS 21 amendments) first applied this period have no significant impact on the Group's financial performance and position[14](index=14&type=chunk) [4. Revenue and Segment Reporting](index=8&type=section&id=4.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E6%8A%A5%E5%91%8A) The Group's business is divided into four reportable segments: power distribution and sales, energy production and supply, photovoltaic power generation and sales, and others; total revenue for the first half of 2025 decreased by 6.6% year-on-year, mainly due to a decline in revenue from the energy production and supply segment, though photovoltaic power generation and sales revenue increased - The Group's business is categorized into four reportable segments: power distribution and sales, energy production and supply, photovoltaic power generation and sales, and others[15](index=15&type=chunk)[17](index=17&type=chunk) - The acquisition of **95% equity** in Yangzhou Qingchang Solar Technology Co., Ltd. was completed on February 29, 2024, adding a new photovoltaic power generation and sales business segment[16](index=16&type=chunk) Revenue from Contracts with Customers by Segment | Segment | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Power Distribution and Sales | 102,201 | 103,731 | -1.5% | | Energy Production and Supply | 258,581 | 280,736 | -7.9% | | Photovoltaic Power Generation and Sales | 4,415 | 4,260 | +3.6% | | Others | 13,879 | 17,101 | -18.8% | | **Total** | **379,076** | **405,828** | **-6.6%** | Adjusted EBITDA by Segment (Segment Profit) | Segment | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Power Distribution and Sales | 4,014 | 7,711 | -48.0% | | Energy Production and Supply | 46,282 | 36,187 | +27.9% | | Photovoltaic Power Generation and Sales | 4,063 | 3,531 | +15.1% | | Others | 3,984 | 5,865 | -32.1% | | **Total** | **58,343** | **53,294** | **+9.5%** | [5. Profit Before Tax](index=12&type=section&id=5.%20%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax for the first half of 2025 was RMB 15,705 thousands, a significant year-on-year increase of 120.6%, primarily benefiting from a substantial decrease in finance costs (26.2%) and reduced depreciation and amortization expenses Components of Profit Before Tax | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Finance Costs | 6,341 | 8,595 | -26.2% | | Total Depreciation and Amortization | 25,391 | 25,939 | -2.1% | | Cost of Purchased Electricity | 92,398 | 98,354 | -6.1% | | Fuel Costs | 178,844 | 195,652 | -8.6% | [6. Income Tax Expense](index=12&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%8E%E8%B4%B9%E7%94%A8) Income tax expense for the first half of 2025 was RMB 3,255 thousands, a year-on-year increase of 51.7%, primarily due to a significant increase in profit for the period Income Tax Expense | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 3,255 | 2,145 | +51.7% | [7. Earnings Per Share](index=13&type=section&id=7.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for the first half of 2025 was RMB 6.18 cents, a significant year-on-year increase of 451.8%, identical to diluted earnings per share due to the absence of potential dilutive ordinary shares Earnings Per Share Data | Indicator | 2025 First Half (RMB thousands/cents) | 2024 First Half (RMB thousands/cents) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company for the Period | 9,888 | 1,787 | +453.3% | | Basic Earnings Per Share (cents) | 6.18 | 1.12 | +451.8% | | Weighted Average Number of Ordinary Shares (thousands) | 159,921 | 159,921 | 0% | [8. Right-of-Use Assets and Property, Plant and Equipment](index=13&type=section&id=8.%20%E7%89%A9%E4%B8%9A%E4%BD%BF%E7%94%A8%E6%9D%83%E8%B5%84%E4%BA%A7%E5%8F%8A%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87) In the first half of 2025, the Group's acquisition cost for plant, machinery, and construction in progress projects was RMB 5,677 thousands, a significant year-on-year decrease of 62.6% Acquisition Cost of Property, Plant and Equipment | Indicator | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Cost of Acquisition of Plant, Machinery and Construction in Progress Projects | 5,677 | 15,206 | -62.6% | - Right-of-use assets primarily refer to prepayments for land use rights in China[30](index=30&type=chunk) [9. Goodwill](index=14&type=section&id=9.%20%E5%95%86%E8%AA%89) As of June 30, 2025, the carrying amount of goodwill was RMB 1,614 thousands, with no impairment loss incurred, primarily allocated to Lingang Thermal Power and Yangzhou Qingchang, two cash-generating units within the energy production and supply segment Carrying Amount of Goodwill | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Carrying Amount of Goodwill | 1,614 | 1,614 | 0% | - Goodwill is primarily allocated to Lingang Thermal Power and Yangzhou Qingchang, two cash-generating units[32](index=32&type=chunk) [10. Trade Receivables](index=14&type=section&id=10.%20%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE) As of June 30, 2025, total trade receivables amounted to RMB 116,455 thousands, a 7.8% decrease from the end of 2024, with the highest proportion aged within 3 months, and the Group grants customers a 90-day credit period Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 115,176 | 123,649 | | 4 to 6 months | 942 | 1,365 | | 7 to 9 months | 337 | 789 | | 10 to 12 months | — | 506 | | Over 12 months | — | 45 | | **Total** | **116,455** | **126,354** | - The Group grants a **90-day** credit period to trade customers[33](index=33&type=chunk) [11. Other Receivables and Assets](index=15&type=section&id=11.%20%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E8%B5%84%E4%BA%A7) As of June 30, 2025, total other receivables and assets amounted to RMB 65,278 thousands, a 5.6% decrease from the end of 2024, primarily comprising price subsidies, value-added tax, and advances to suppliers Composition of Other Receivables and Assets | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Price Subsidies | 38,689 | 38,689 | | Value-added Tax and Other Recoverable Taxes | 3,935 | 2,106 | | Advances to Suppliers | 22,023 | 27,857 | | Others | 631 | 470 | | **Subtotal (Current)** | **65,278** | **69,122** | | Deposits with Third Parties (Non-current) | 1,612 | 1,612 | [12. Bank Balances and Cash](index=15&type=section&id=12.%20%E9%93%B6%E8%A1%8C%E7%BB%93%E4%BD%99%E5%8F%8A%E7%8E%B0%E9%87%91) As of June 30, 2025, bank balances and cash amounted to RMB 113,909 thousands, an 11.6% decrease from the end of 2024, primarily due to loan repayments Bank Balances and Cash | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Bank Cash | 113,909 | 128,795 | -11.6% | [13. Trade and Other Payables](index=15&type=section&id=13.%20%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E8%B4%A6%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other payables amounted to RMB 89,337 thousands, a 3.4% decrease from the end of 2024, with amounts payable to third-party trade being the largest component Composition of Trade and Other Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Amounts Payable to Third-Party Trade | 55,227 | 56,923 | | Bills Payable | 20,000 | 20,000 | | Amounts Payable for Acquisition of Property, Plant and Equipment | 8,193 | 6,331 | | **Total** | **89,337** | **92,459** | - All trade and other payables are expected to be settled within one year[34](index=34&type=chunk) Ageing Analysis of Trade Payables and Bills Payable | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 38,835 | 60,510 | | 4 to 6 months | 844 | 13,198 | | 7 to 12 months | 33,151 | 849 | | Over 12 months | 2,397 | 2,366 | | **Total** | **75,227** | **76,923** | [14. Loans and Borrowings](index=16&type=section&id=14.%20%E8%B4%B7%E6%AC%BE%E5%8F%8A%E5%80%9F%E6%AC%BE) As of June 30, 2025, total loans and borrowings amounted to RMB 375,782 thousands, a 13.5% decrease from the end of 2024, with bank loans constituting a larger proportion; some loans are secured or guaranteed, and there are restrictive covenants related to financial performance indicators Analysis of Loans and Borrowings Repayment Schedule | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Loans (Total) | 365,367 | 421,785 | | Other Borrowings (Total) | 10,415 | 12,500 | | **Total** | **375,782** | **434,285** | - As of June 30, 2025, secured bank loans are collateralized by **45%** of the total paid-up capital of Lingang Thermal Power, a non-wholly owned subsidiary[37](index=37&type=chunk) - Some bank loan agreements contain restrictive covenants related to financial performance indicators such as debt-to-asset ratio, liquidity ratio, and net profit, but no breaches occurred during the reporting period[39](index=39&type=chunk)[40](index=40&type=chunk) [15. Dividends](index=18&type=section&id=15.%20%E8%82%A1%E6%81%AF) In the first half of 2025, the company approved a final dividend of RMB 0.014 per ordinary share for the financial year ended December 31, 2024, totaling RMB 2,236 thousands Approved and Payable Dividends | Dividend Type | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | | :--- | :--- | :--- | | 2024 Final Dividend (RMB 0.014 per share) | 2,236 | — | [16. Fair Value Measurement of Financial Instruments](index=18&type=section&id=16.%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9A%84%E5%85%AC%E5%B9%B3%E5%80%BC%E8%AE%A1%E9%87%8F) As of June 30, 2025, and December 31, 2024, there were no material differences between the carrying amounts and fair values of trade receivables, other receivables and assets, and trade and other payables - There are no material differences between the carrying amounts and fair values of trade receivables, other receivables and assets, and trade and other payables[42](index=42&type=chunk) [17. Commitments](index=18&type=section&id=17.%20%E6%89%BF%E6%8B%85) As of June 30, 2025, the Group's unfulfilled capital commitments for which no provision has been made in the interim financial report amounted to RMB 8,193 thousands, primarily for the acquisition of property, plant and equipment and construction in progress Capital Commitments | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted Capital Expenditure for Acquisition of Property, Plant and Equipment and Construction in Progress | 8,193 | 6,331 | [18. Significant Related Party Transactions](index=19&type=section&id=18.%20%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93) The Group has multiple transactions with related parties, including prepayments for gas to related parties outside Tianbao Group, amounts receivable from Tianbao Group and its subsidiaries, sales and purchases of goods, provision and receipt of services, and receipt of guarantees Related Party Balances | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Prepayments for Gas to Related Parties Other Than Tianbao Group | 17,695 | 27,138 | | Amounts Receivable from Tianbao Group and its Subsidiaries | 1,492 | 1,717 | | Advances from Subsidiaries of Tianbao Group | 130 | 253 | Related Party Transaction Amounts | Transaction Type | 2025 First Half (RMB thousands) | 2024 First Half (RMB thousands) | | :--- | :--- | :--- | | Sales of Goods to Subsidiaries of Tianbao Group | 2,526 | 906 | | Purchases of Goods from Companies Controlled by the Same Ultimate Controlling Party of Non-wholly Owned Subsidiaries | 131,080 | 124,770 | | Guarantees Received from Equity Holders of Non-wholly Owned Subsidiaries | 49,000 | 49,000 | [19. Non-Adjusting Events After the Reporting Period](index=20&type=section&id=19.%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E7%9A%84%E9%9D%9E%E8%B0%83%E6%95%B4%E4%BA%8B%E4%BB%B6) No significant post-reporting period events have occurred for the Group since June 30, 2025 - No significant non-adjusting events occurred after the reporting period[50](index=50&type=chunk) [Business Review and Analysis](index=21&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5%E4%B8%8E%E5%88%86%E6%9E%90) [Business Review Summary for the First Half of 2025](index=21&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5%E6%A6%82%E8%A6%81) In the first half of 2025, China's economy showed stable and positive growth, but due to US-China trade policies and customs inspection and quarantine policies, the Group's grain and oil enterprise customers reduced production, leading to decreased energy demand; the Group actively responded by lowering procurement prices, exploring cost reduction and efficiency improvement potential, and expanding new energy businesses to address challenges - China's economy remained generally stable and showed positive growth, with **GDP increasing by 5.3%** year-on-year[51](index=51&type=chunk) - Due to US-China trade policies and customs inspection and quarantine policies, grain and oil enterprise customers reduced production, leading to decreased energy demand[51](index=51&type=chunk) - The Group actively responded by adopting strategies such as lowering natural gas procurement prices, exploring cost reduction and efficiency improvement potential, and expanding new energy businesses like contract energy management and photovoltaic power[51](index=51&type=chunk) [Key Initiatives Implemented by the Group in the First Half of 2025](index=21&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E6%9C%AC%E9%9B%86%E5%9B%A2%E9%87%8D%E7%82%B9%E5%B7%A5%E4%BD%9C%E5%AE%9E%E6%96%BD%E4%B8%BE%E6%8E%AA) In the first half of 2025, the Group successfully advanced contract energy management and green electricity businesses, expanded distributed photovoltaic projects, orderly commenced energy storage project construction, and steadily progressed equity acquisition projects to achieve business diversification and enhance profitability - Successfully won the bid for the second phase of the Tianjin Port Free Trade Zone Smart Street Light Contract Energy Management project[52](index=52&type=chunk) - Approximately **8 million kWh** of green electricity transactions were completed in the first half of the year, and green electricity transaction cooperation was established with new energy power plants outside the region[52](index=52&type=chunk) - The Lingang Thermal Power distributed photovoltaic project has been connected to the grid, the Tianbao Logistics warehouse photovoltaic project has entered the implementation phase, and the Huaxiang Auto Interior Customization factory photovoltaic project is about to commence construction[53](index=53&type=chunk) - The Tianjin Port Free Trade Zone Seaport Area Distribution Network **1.72 MWh** Phase II energy storage power station project has completed on-site installation and is planned to be operational within the year[54](index=54&type=chunk) - Continuously monitoring acquisition opportunities for multiple distributed photovoltaic projects, and preliminary acquisition intentions have been reached for some projects with investment value[55](index=55&type=chunk) [Operating Performance and Analysis](index=22&type=section&id=%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E5%8F%8A%E5%88%86%E6%9E%90) In the first half of 2025, the Group's sales of steam and electricity both decreased, but through cost control and new energy project development, gross profit and profit before tax achieved significant growth, with profit attributable to the parent company increasing substantially by 453.3% 2025 First Half Key Operating Data | Indicator | 2025 First Half | 2024 First Half | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Steam Sales | 75.7 tens of thousands of tons | 79.2 tens of thousands of tons | -4.4% | | Electricity Sales | 13,164.9 tens of millions of kWh | 13,945.7 tens of millions of kWh | -5.6% | | On-grid Electricity | 10,516.2 tens of millions of kWh | 11,817.8 tens of millions of kWh | -11.0% | [Operating Revenue](index=23&type=section&id=%E8%90%A5%E4%B8%9A%E6%94%B6%E5%85%A5) Consolidated operating revenue for the first half of 2025 decreased by 6.6% year-on-year to RMB 37,907.6 tens of thousands, primarily due to reduced energy demand from grain and oil enterprise customers caused by production cuts Operating Revenue by Segment | Segment | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Consolidated Operating Revenue | 37,907.6 | 40,582.8 | -6.6% | Reduced production by grain and oil enterprise customers | | Power Distribution and Sales | 10,220.1 | 10,373.1 | -1.5% | Normal business fluctuations | | Energy Production and Supply | 25,858.1 | 28,073.6 | -7.9% | Reduced production by grain and oil enterprise customers | | Photovoltaic Power Generation and Sales | 441.5 | 426.0 | +3.6% | New projects connected to the grid | | Others | 1,387.9 | 1,710.1 | -18.8% | Decrease in O&M and power engineering revenue | [Other Net Income](index=24&type=section&id=%E5%85%B6%E4%BB%96%E5%87%80%E6%94%B6%E5%85%A5) Other net income for the first half of 2025 decreased by 51.7% year-on-year to RMB 81.0 tens of thousands, primarily due to increased expenditure on purchased carbon emission allowances Other Net Income | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Other Net Income | 81.0 | 167.8 | -51.7% | - The main reason is the increase in expenditure on purchased carbon emission allowances compared to the previous period[62](index=62&type=chunk) [Segment Costs](index=24&type=section&id=%E5%88%86%E9%83%A8%E6%88%90%E6%9C%AC) In the first half of 2025, segment costs generally decreased, with the energy production and supply segment's cost decreasing by 10.7% primarily due to falling coal prices, and the power distribution and sales segment's cost decreasing by 2.3% due to energy-saving renovations Segment Cost Performance | Segment | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Power Distribution and Sales | 9,838.9 | 10,068.9 | -2.3% | Energy-saving renovations | | Energy Production and Supply | 23,511.2 | 26,342.1 | -10.7% | Falling coal prices | | Photovoltaic Power Generation and Sales | 240.8 | 262.1 | -8.1% | Cost reduction and efficiency improvement | | Others | 1,087.9 | 1,219.7 | -10.8% | Decreased revenue | [Segment Gross Profit](index=25&type=section&id=%E5%88%86%E9%83%A8%E6%AF%9B%E5%88%A9) In the first half of 2025, gross profit for the power distribution and sales, energy production and supply, and photovoltaic power generation and sales segments all increased, with the energy production and supply segment showing the most significant growth of 35.5%, primarily due to falling coal prices and cost reduction and efficiency improvement Segment Gross Profit Performance | Segment | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Power Distribution and Sales | 381.2 | 304.2 | +25.3% | Energy-saving renovations | | Energy Production and Supply | 2,346.9 | 1,731.5 | +35.5% | Falling coal prices and cost reduction and efficiency improvement | | Photovoltaic Power Generation and Sales | 200.7 | 163.9 | +22.5% | Cost reduction and efficiency improvement | | Others | 300.0 | 490.4 | -38.8% | Decrease in O&M and power engineering revenue | [Segment EBITDA](index=26&type=section&id=%E5%88%86%E9%83%A8%E9%99%A4%E6%81%AF%E7%A8%8E%E6%8A%98%E6%BB%A9%E5%89%8D%E7%9B%88%E5%88%A9) Segment EBITDA for the first half of 2025 increased by 9.5% year-on-year to RMB 5,834.3 tens of thousands, primarily due to energy-saving renovations of boilers and heat exchange stations, and the implementation of new energy projects Segment EBITDA | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Segment EBITDA | 5,834.3 | 5,329.4 | +9.5% | - The main reasons are energy-saving renovations of boilers and heat exchange stations, and the implementation of new energy projects[71](index=71&type=chunk) [Finance Costs](index=26&type=section&id=%E8%B4%A2%E5%8A%A1%E6%88%90%E6%9C%AC) Finance costs for the first half of 2025 decreased by 26.2% year-on-year to RMB 634.1 tens of thousands, primarily due to reduced interest expenses from loan repayments Finance Costs | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Finance Costs | 634.1 | 859.5 | -26.2% | - The main reason is the decrease in interest expenses due to loan repayments[72](index=72&type=chunk) [Fuel Costs](index=26&type=section&id=%E7%87%83%E6%96%99%E6%88%90%E6%9C%AC) Fuel costs for the first half of 2025 decreased by 8.6% year-on-year to RMB 17,884.4 tens of thousands, primarily due to falling coal prices Fuel Costs | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Fuel Costs | 17,884.4 | 19,565.2 | -8.6% | - The main reason is falling coal prices[73](index=73&type=chunk) [Profit Before Tax](index=26&type=section&id=%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax for the first half of 2025 significantly increased by 120.6% year-on-year to RMB 1,570.5 tens of thousands, primarily benefiting from energy-saving renovations and the implementation of new energy projects Profit Before Tax | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit Before Tax | 1,570.5 | 711.9 | +120.6% | - Primarily due to energy-saving renovations of boilers and heat exchange stations, and the implementation of new energy projects[74](index=74&type=chunk) [Income Tax Expense](index=27&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E8%B4%B9%E7%94%A8) Income tax expense for the first half of 2025 increased by 51.7% year-on-year to RMB 325.5 tens of thousands, primarily due to increased net profit Income Tax Expense | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 325.5 | 214.5 | +51.7% | - The main reason is increased net profit[75](index=75&type=chunk) [Profit Attributable to the Parent Company for the Period](index=27&type=section&id=%E5%BD%92%E5%B1%9E%E4%BA%8E%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%9A%84%E6%9C%9F%E5%86%85%E6%BA%A2%E5%88%A9) Profit attributable to the parent company for the first half of 2025 significantly increased by 453.3% year-on-year to RMB 988.8 tens of thousands, primarily benefiting from energy-saving renovations and the implementation of new energy projects Profit Attributable to the Parent Company for the Period | Indicator | 2025 First Half (RMB tens of thousands) | 2024 First Half (RMB tens of thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Profit Attributable to the Parent Company for the Period | 988.8 | 178.7 | +453.3% | - Primarily due to energy-saving renovations of boilers and heat exchange stations, and the implementation of new energy projects[76](index=76&type=chunk) [Financial Position](index=27&type=section&id=%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5) As of the end of June 2025, the Group's total assets and liabilities both decreased, but total equity attributable to ordinary shareholders increased by 2.4%, and the debt-to-equity ratio decreased by 12.3%, indicating an improved financial structure Assets, Liabilities and Equity | Indicator | June 30, 2025 (RMB tens of thousands) | December 31, 2024 (RMB tens of thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 101,704.2 | 107,077.4 | -5.0% | | Total Liabilities | 54,118.7 | 60,513.3 | -10.6% | | Total Equity Attributable to Ordinary Shareholders | 32,399.7 | 31,634.5 | +2.4% | | Current Assets | 29,916.7 | 33,159.1 | -9.8% | | Current Liabilities | 27,293.2 | 33,476.7 | -18.5% | | Non-current Liabilities | 26,825.5 | 27,036.6 | -0.8% | Bank Balances and Cash | Indicator | June 30, 2025 (RMB tens of thousands) | December 31, 2024 (RMB tens of thousands) | Change | | :--- | :--- | :--- | :--- | | Bank Balances and Cash | 11,390.9 | 12,879.5 | -11.6% | - The decrease in bank balances and cash was primarily due to loan repayments[79](index=79&type=chunk) Debt-to-Equity Ratio | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Debt-to-Equity Ratio | 1.14 | 1.30 | -12.3% | - The decrease in the debt-to-equity ratio was due to a reduction in liabilities from loan repayments[80](index=80&type=chunk) [Other Significant Matters](index=28&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) [1. Capital Expenditure and Capital Commitments](index=28&type=section&id=1.%20%E8%B5%84%E6%9C%AC%E6%94%AF%E5%87%BA%E5%8F%8A%E8%B5%84%E6%9C%AC%E6%89%BF%E6%8B%85) In the first half of 2025, the Group's total capital expenditure was approximately RMB 352.5 tens of thousands, primarily for photovoltaic projects and new energy heavy-duty truck integrated energy station projects; as of June 30, capital commitments provision amounted to RMB 819.3 tens of thousands Capital Expenditure for the First Half of 2025 | Project | Amount (RMB tens of thousands) | | :--- | :--- | | Huaxiang Auto Interior Customization Factory Distributed Photovoltaic Project | 152.0 | | New Energy Heavy-Duty Truck Integrated Energy Station Project | 134.5 | | Other Projects | 66.0 | | **Total** | **352.5** | Capital Commitments Provision | Indicator | June 30, 2025 (RMB tens of thousands) | | :--- | :--- | | Capital Commitments Provision | 819.3 | [2. Liquidity and Financial Resources](index=29&type=section&id=2.%20%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) As of June 30, 2025, the Group held bank balances and cash of RMB 11,390.9 tens of thousands, with total loans and borrowings of RMB 37,578.2 tens of thousands, of which short-term borrowings accounted for 42.7% and long-term borrowings for 57.3%; the Group did not engage in financial instrument hedging or foreign currency investments Liquidity and Borrowing Structure | Indicator | Amount (RMB tens of thousands) | Percentage | | :--- | :--- | :--- | | Bank Balances and Cash | 11,390.9 | - | | Total Loans and Borrowings | 37,578.2 | - | | Short-term Borrowings | 16,046.6 | 42.7% | | Long-term Borrowings | 21,531.6 | 57.3% | | Secured or Guaranteed Loans and Borrowings | 20,328.2 | 54.1% | | Unsecured Borrowings | 17,250.0 | 45.9% | | Fixed-rate Loans and Borrowings | 21,906.6 | 58.3% | | Floating-rate Loans and Borrowings | 15,671.6 | 41.7% | - The Group has not entered into any financial instruments for hedging purposes, nor does it have any foreign currency investments[82](index=82&type=chunk) [3. Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=29&type=section&id=3.%20%E6%9C%89%E5%85%B3%E9%99%84%E5%B1%9E%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%94%E8%90%A5%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E8%90%A5%E4%BC%81%E4%B8%9A%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - No significant acquisition or disposal activities occurred during the reporting period[83](index=83&type=chunk) [4. Significant Investments](index=29&type=section&id=4.%20%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84) For the six months ended June 30, 2025, the Group had no significant investments - No significant investments occurred during the reporting period[84](index=84&type=chunk) [5. Contingent Liabilities](index=29&type=section&id=5.%20%E6%88%96%E6%9C%89%E8%B4%9F%E5%80%BA) As of June 30, 2025, the Group had no contingent liabilities - No contingent liabilities existed at the end of the reporting period[85](index=85&type=chunk) [6. Group Bank Borrowings and 7. Other Group Debts](index=29&type=section&id=6.%20%E6%9C%AC%E9%9B%86%E5%9B%A2%E9%93%B6%E8%A1%8C%E5%80%9F%E6%AC%BE%E5%8F%8A7.%20%E6%9C%AC%E9%9B%86%E5%9B%A2%E5%85%B6%E4%BB%96%E5%80%BA%E5%8A%A1) As of June 30, 2025, the Group's total loans and borrowings amounted to RMB 37,578.2 tens of thousands, comprising RMB 16,046.6 tens of thousands in short-term borrowings and RMB 21,531.6 tens of thousands in long-term borrowings, in addition to lease liabilities of approximately RMB 168.4 tens of thousands Group Bank Borrowings and Other Debts | Indicator | Amount (RMB tens of thousands) | | :--- | :--- | | Total Loans and Borrowings | 37,578.2 | | Short-term Borrowings | 16,046.6 | | Long-term Borrowings | 21,531.6 | | Lease Liabilities | 168.4 | [8. Group Asset Mortgages and Pledges](index=30&type=section&id=8.%20%E6%9C%AC%E9%9B%86%E5%9B%A2%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC%E5%8F%8A%E8%B4%A8%E6%8A%BC) As of June 30, 2025, the company pledged gas supply facilities, equipment, and related components valued at RMB 2,423.3 tens of thousands as collateral for finance leases, and used Lingang Thermal Power equity and Yangzhou Qingchang photovoltaic project assets and electricity receivables as pledges for bank loans - The company pledged gas supply facilities, equipment, and related components valued at **RMB 2,423.3 tens of thousands** as collateral for finance leases[88](index=88&type=chunk) - The company pledged Lingang Thermal Power equity as collateral for **RMB 1,265.0 tens of thousands** in bank loans[88](index=88&type=chunk) - Secured bank loans of **RMB 1,222.6 tens of thousands** are pledged against assets and related electricity receivables of the Yangzhou Qingchang Kaixiang Phase II **4.0 MW** rooftop distributed photovoltaic power generation project[88](index=88&type=chunk) [9. Capital Structure](index=30&type=section&id=9.%20%E8%B5%84%E6%9C%AC%E6%9E%B6%E6%9E%84) The company's H shares were listed on the Main Board of the Stock Exchange on April 27, 2018, and after the completion of the H-share "full circulation" scheme on July 29, 2020, the capital structure consists solely of H shares - The company's H shares were listed on the Main Board of the Stock Exchange on **April 27, 2018**[89](index=89&type=chunk) - After the completion of the H-share "full circulation" scheme on **July 29, 2020**, the capital structure consists solely of H shares[89](index=89&type=chunk) [10. Share Schemes](index=30&type=section&id=10.%20%E8%82%A1%E4%BB%BD%E8%AE%A1%E5%88%92) As of June 30, 2025, the company had not implemented any share schemes - No share schemes were implemented during the reporting period[90](index=90&type=chunk) [11. Foreign Exchange and Exchange Rate Risk](index=30&type=section&id=11.%20%E5%A4%96%E6%B1%87%E5%8F%8A%E6%B1%87%E7%8E%87%E9%A3%8E%E9%99%A9) The Group primarily operates in China, with transactions denominated and settled in RMB, and apart from a small amount of foreign currency bank deposits, there is no significant foreign exchange rate fluctuation risk, and no hedging arrangements have been made - The Group primarily operates in China, with transactions denominated and settled in RMB[91](index=91&type=chunk) - Except for bank deposits denominated in foreign currencies, there is no significant foreign exchange rate fluctuation risk[91](index=91&type=chunk) - No hedging arrangements were made during the reporting period[91](index=91&type=chunk) [Business Outlook for the Second Half of 2025](index=31&type=section&id=2025%E5%B9%B4%E4%B8%8B%E5%8D%8A%E5%B9%B4%E4%B8%9A%E5%8A%A1%E5%B1%95%E6%9C%9B) The Group plans to accelerate new business expansion in the second half of 2025, promote the implementation and revenue generation of distributed photovoltaic projects, strive for a 42.5% increase in full-year photovoltaic power generation installed capacity, further expand its green electricity trading share, and commence the "15th Five-Year Plan" strategic planning - Accelerate the progress of distributed photovoltaic power generation projects, expedite construction and operation, with a planned **42.5%** increase in full-year photovoltaic power generation installed capacity[92](index=92&type=chunk) - Continuously follow up on high-quality equity acquisition projects, conduct thorough project evaluations, and accelerate their implementation[92](index=92&type=chunk) - Strive to complete **6.5 million kWh** of green electricity transactions in the second half of the year, and establish green electricity trading cooperation for 2026 with regions such as Gansu and Xinjiang[93](index=93&type=chunk) - Commence work on the "15th Five-Year Plan" strategic planning to build a diversified, clean, and efficient energy supply system[94](index=94&type=chunk) [Human Resources and Training](index=31&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B5%84%E6%BA%90%E5%8F%8A%E5%9F%B9%E8%AE%AD) As of June 30, 2025, the Group had 70 employees, with staff costs of approximately RMB 1,088.9 tens of thousands; the Group emphasizes employee training and development, providing continuous education and professional skills training, and maintaining good working relationships with employees Employee Headcount and Composition | Function | Headcount | Percentage of Total | | :--- | :--- | :--- | | Management, Administration and Finance | 24 | 34.3% | | Marketing | 7 | 10.0% | | Procurement | 5 | 7.1% | | Engineering and Technical | 34 | 48.6% | | **Total** | **70** | **100.0%** | Staff Costs | Indicator | 2025 First Half (RMB tens of thousands) | | :--- | :--- | | Staff Costs (including salaries, benefits and allowances) | 1,088.9 | - The Group participates in defined contribution retirement schemes managed and operated by local governments for its employees[97](index=97&type=chunk) - The Group emphasizes employee training and development, providing continuous education and professional skills training, with **36 training sessions** completed in the first half of the year[97](index=97&type=chunk)[98](index=98&type=chunk) - The Group maintains good working relationships with employees, who have joined trade unions[99](index=99&type=chunk) [Corporate Governance](index=33&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The Board is committed to maintaining high standards of corporate governance and has complied with the Corporate Governance Code in Appendix C1 and the Model Code in Appendix C3 of the Listing Rules; during the reporting period, the controlling shareholder did not pledge shares, and the Group did not provide any discloseable loans or financial assistance to any entity; the Audit Committee has reviewed the interim results - The Board is committed to maintaining high standards of corporate governance and has complied with the Corporate Governance Code and the Model Code[100](index=100&type=chunk)[101](index=101&type=chunk) - During the reporting period, the controlling shareholder did not pledge any shares to secure the Group's debts[102](index=102&type=chunk) - During the reporting period, the Group did not provide any loans discloseable under Listing Rule 13.13, nor did it provide financial assistance or guarantees discloseable under Listing Rule 13.16 to any entity[104](index=104&type=chunk)[105](index=105&type=chunk) [Audit Committee](index=34&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee comprises 3 non-executive directors, the majority of whom are independent non-executive directors, responsible for reviewing and monitoring the Group's financial reporting, risk management, and internal control systems, and has reviewed this interim results announcement and financial statements - The Audit Committee comprises **3 non-executive directors**, the majority of whom are independent non-executive directors, including **1 independent non-executive director** with accounting expertise[106](index=106&type=chunk) - The Audit Committee has reviewed the Group's 2025 interim results announcement, interim report, and financial statements[106](index=106&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities or Redeemable Securities](index=34&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8%E6%88%96%E5%8F%AF%E8%B5%8E%E5%9B%9E%E8%AF%81%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 or redeemable securities, and no treasury shares were held - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed or redeemable securities[107](index=107&type=chunk) - As of the end of the reporting period, the company held no treasury shares[107](index=107&type=chunk) [Interim Dividend](index=34&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board has not proposed any recommendation for the payment of an interim dividend for the six months ended June 30, 2025 - The Board has not recommended the payment of an interim dividend[108](index=108&type=chunk) [Publication of Interim Results and Definitions](index=35&type=section&id=%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%8A%E9%87%8A%E4%B9%89) [Publication of Interim Results and Interim Report](index=35&type=section&id=%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This results announcement has been published on the Stock Exchange's "Disclosure of Interests" website and the company's website, and the interim report will be dispatched to shareholders and published on the company's and Stock Exchange's websites in due course - This results announcement has been published on the Stock Exchange's "Disclosure of Interests" website and the company's website[110](index=110&type=chunk) - The 2025 interim report will be dispatched to shareholders and published on the company's and Stock Exchange's websites in due course[110](index=110&type=chunk) [Definitions](index=35&type=section&id=%E9%87%8A%E4%B9%89) This section provides definitions for key terms and entities used in the report, including Articles of Association, Board, Company, Controlling Shareholder, Directors, Domestic Shares, Group, H Shares, Hong Kong, HKD, IFRS, Lingang Thermal Power, Listing Rules, Model Code, PRC, Reporting Period, RMB, Shares, Shareholders, Stock Exchange, Supervisors, Tianjin Free Trade Zone Investment Holding, Tianbao Holding, and Yangzhou Qingchang - Provides definitions for key terms and entities used in the report, ensuring clear understanding of the content[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) This chapter summarizes key financial indicators for the six months ended June 30, 2025, showing stable revenue, significant growth in gross profit and profit attributable to equity holders, and a corresponding increase in earnings per share | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 816,637 | 815,977 | +0.1% | | Gross Profit | 137,257 | 133,039 | +3.2% | | EBITDA | 66,673 | 68,704 | -3.0% | | Profit attributable to equity holders | 4,405 | 2,756 | +59.8% | | Earnings per share | 0.93 HK cents | 0.58 HK cents | +60.3% | [Introduction to Interim Results](index=1&type=section&id=Introduction%20to%20Interim%20Results) The Board is pleased to announce the unaudited interim results of the Company and its subsidiaries for the six months ended June 30, 2025 - The Board of Directors of Man Yue Technology Holdings Limited announced the unaudited interim results for the six months ended June 30, 2025[4](index=4&type=chunk) [Unaudited Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) [Unaudited Consolidated Statement of Profit or Loss](index=2&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue remained stable, gross profit increased, but operating profit slightly decreased. Profit attributable to equity holders significantly increased, with basic and diluted earnings per share both at 0.93 HK cents | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 816,637 | 815,977 | | Cost of sales | (679,380) | (682,938) | | Gross Profit | 137,257 | 133,039 | | Other income | 8,481 | 3,842 | | Net other losses | (11,203) | (49) | | Selling and distribution expenses | (24,152) | (26,117) | | Administrative expenses | (79,093) | (78,469) | | Operating profit | 31,290 | 32,246 | | Finance expenses | (21,763) | (25,852) | | Finance income | 2,796 | 3,222 | | Share of results of a joint venture | (4,641) | (2,483) | | Profit before tax | 7,682 | 7,133 | | Income tax | (7,032) | (4,741) | | Profit for the period | 650 | 2,392 | | Profit attributable to equity holders of the Company | 4,405 | 2,756 | | Profit/(loss) attributable to non-controlling interests | (3,755) | (364) | | Basic earnings per share | 0.93 HK cents | 0.58 HK cents | [Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's profit for the period was 650 Thousand HKD, but due to revaluation deficit on properties and exchange differences, total comprehensive income for the period turned positive, reaching 33,149 Thousand HKD | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Profit for the period | 650 | 2,392 | | Revaluation (deficit)/surplus on properties, net of tax | (20,816) | 3,890 | | Exchange differences | 53,315 | (22,228) | | Other comprehensive income for the period, net of tax | 32,499 | (18,338) | | Total comprehensive income for the period | 33,149 | (15,946) | | Total comprehensive income attributable to equity holders of the Company | 34,544 | (14,273) | | Total comprehensive income attributable to non-controlling interests | (1,395) | (1,673) | [Unaudited Consolidated Statement of Financial Position](index=4&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total non-current assets slightly increased, while total current assets and total current liabilities both decreased, leading to a reduction in net current assets. Net assets and equity attributable to equity holders of the Company both increased | Indicator | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total non-current assets | 1,502,730 | 1,494,114 | | Total current assets | 1,612,993 | 1,653,763 | | Total current liabilities | 1,476,129 | 1,506,574 | | Net current assets | 136,864 | 147,189 | | Total assets less current liabilities | 1,639,594 | 1,641,303 | | Total non-current liabilities | 113,447 | 145,975 | | Net assets | 1,526,147 | 1,495,328 | | Equity attributable to equity holders of the Company | 1,498,944 | 1,466,730 | | Total equity | 1,526,147 | 1,495,328 | - Cash and cash equivalents decreased from **HKD 208.17 million** as of December 31, 2024, to **HKD 143.79 million** as of June 30, 2025[7](index=7&type=chunk) [Notes to the Unaudited Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) [1 Basis of Preparation](index=6&type=section&id=1%20Basis%20of%20Preparation) These interim financial statements have been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34, and have been reviewed by KPMG - The interim financial statements have been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[9](index=9&type=chunk) [2 Changes in Accounting Policies](index=6&type=section&id=2%20Changes%20in%20Accounting%20Policies) The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability", but due to the absence of relevant foreign currency transactions, there is no significant impact on the interim financial statements. No other new standards or interpretations not yet effective have been adopted in this accounting period - Application of amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" has no significant impact on the interim financial statements[10](index=10&type=chunk) [3 Estimates](index=7&type=section&id=3%20Estimates) The preparation of interim financial statements involves management's judgments, estimates, and assumptions, the primary sources of which are consistent with those applied in the 2024 annual consolidated financial statements - The significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty are consistent with those applied in the 2024 annual consolidated financial statements[12](index=12&type=chunk) [4 Segment Information](index=7&type=section&id=4%20Segment%20Information) The Group comprises two main operating segments: manufacturing, sales and distribution of electronic components, and investment. The electronic components segment contributed all external customer revenue with a gross profit margin of 16.8% and an operating profit margin of 2.9%. The investment segment contributed some other income and operating profit. Mainland China is the primary source of revenue and location of non-current assets - The Group's principal operating segments are (i) manufacturing, sales and distribution of electronic components; and (ii) investment[14](index=14&type=chunk) Segment Performance | Segment | 2025 External Customer Revenue (Thousand HKD) | 2025 Segment Gross Profit (Thousand HKD) | 2025 Operating Profit (Thousand HKD) | | :--- | :--- | :--- | :--- | | Manufacturing, sales and distribution of electronic components | 816,637 | 137,257 | 23,448 | | Investment | – | – | 7,842 | | **Total** | **816,637** | **137,257** | **31,290** | Geographical Information | Geographical Location | 2025 External Customer Revenue (Thousand HKD) | 2024 External Customer Revenue (Thousand HKD) | | :--- | :--- | :--- | | Mainland China | 625,553 | 620,439 | | Taiwan | 79,906 | 81,856 | | Hong Kong | 30,741 | 40,239 | | Southeast Asia | 34,716 | 29,460 | | United States | 17,723 | 9,629 | | Europe | 17,649 | 20,596 | [5 Revenue](index=10&type=section&id=5%20Revenue) The Group's principal activities are the manufacturing and trading of electronic components and raw materials, with revenue recognized when control is transferred to customers. For the six months ended June 30, 2025, customer contract revenue from manufacturing and trading of electronic components was 816,637 Thousand HKD, consistent with the prior year period - Revenue primarily derived from manufacturing and trading of electronic components, recognized upon transfer of control[20](index=20&type=chunk) Customer Contract Revenue by Product Line | Product Line | 2025 Customer Contract Revenue (Thousand HKD) | 2024 Customer Contract Revenue (Thousand HKD) | | :--- | :--- | :--- | | Manufacturing and trading of electronic components | 816,637 | 815,977 | [6 Other Income](index=10&type=section&id=6%20Other%20Income) For the six months ended June 30, 2025, other income significantly increased to 8,481 Thousand HKD, primarily due to higher government grants, rental income from investment properties, and other miscellaneous income | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Government grants | 2,035 | 261 | | Rental income from investment properties | 1,846 | 2,787 | | Others | 4,477 | 3,422 | | **Total** | **8,481** | **3,842** | [7 Net Other Losses](index=10&type=section&id=7%20Net%20Other%20Losses) For the six months ended June 30, 2025, net other losses significantly increased to 11,203 Thousand HKD, mainly due to net exchange losses and fair value losses on financial assets at fair value through profit or loss, despite an increase in fair value gains on investment properties | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Fair value gains on investment properties | 7,266 | 674 | | Net exchange (losses)/gains | (15,477) | 13,345 | | Fair value losses on financial assets at fair value through profit or loss | (1,270) | (9,706) | | **Total** | **(11,203)** | **(49)** | [8 Operating Profit](index=11&type=section&id=8%20Operating%20Profit) Operating profit is achieved after deducting expenses such as depreciation, amortization, write-down of inventories, and net reversal of expected credit losses | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Depreciation expense (owned property, plant and equipment) | 24,735 | 24,802 | | Depreciation expense (right-of-use assets) | 12,209 | 10,618 | | Write-down of inventories | 3,000 | 1,751 | | Net reversal of expected credit losses on trade and other receivables | 1,642 | 61 | [9 Finance Expenses](index=11&type=section&id=9%20Finance%20Expenses) For the six months ended June 30, 2025, total finance expenses were 21,763 Thousand HKD, a decrease from the prior year period, mainly due to lower interest expenses on bank and other borrowings | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Interest expense on bank and other borrowings | 21,592 | 25,061 | | Interest expense on lease liabilities | 971 | 1,375 | | Less: Interest expense capitalized into construction in progress | (800) | (584) | | **Total** | **21,763** | **25,852** | [10 Finance Income](index=11&type=section&id=10%20Finance%20Income) For the six months ended June 30, 2025, finance income was 2,796 Thousand HKD, primarily from interest income on loans to a joint venture | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Interest income on loans to a joint venture | 2,647 | 2,692 | | Interest income on fixed deposits and bank balances | 149 | 530 | | **Total** | **2,796** | **3,222** | [11 Income Tax](index=12&type=section&id=11%20Income%20Tax) For the six months ended June 30, 2025, total income tax expense for the period was 7,032 Thousand HKD, mainly from current tax outside Hong Kong and deferred tax. Some subsidiaries in Mainland China enjoy a preferential tax rate of 15%, while others are taxed at 25% | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Current tax: Outside Hong Kong | 4,871 | 4,948 | | Deferred tax | 2,161 | (207) | | **Total income tax expense for the period** | **7,032** | **4,741** | - Some subsidiaries in Mainland China enjoy a preferential tax rate of **15%**, while others are subject to the statutory tax rate of **25%**[27](index=27&type=chunk) [12 Earnings Per Share](index=12&type=section&id=12%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were 0.93 HK cents, an increase from the prior year period. Diluted earnings per share were the same as basic earnings per share due to the absence of potential dilutive ordinary shares | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company | 4,405,000 HKD | 2,756,000 HKD | | Weighted average number of ordinary shares in issue | 475,547,534 shares | 475,547,534 shares | | Basic earnings per share | 0.93 HK cents | 0.58 HK cents | | Diluted earnings per share | 0.93 HK cents | 0.58 HK cents | [13 Dividends](index=12&type=section&id=13%20Dividends) The Board does not recommend the payment of an interim dividend for the period. As of June 30, 2025, dividends payable of 2,330,000 HKD were approved and recognized, representing the final dividend for the previous financial year - The Board does not recommend the payment of an interim dividend for the period[30](index=30&type=chunk) - As of June 30, 2025, dividends payable of **HKD 2.33 million** were approved and recognized, representing the final dividend of **0.49 HK cents** per ordinary share for the previous financial year[30](index=30&type=chunk) [14 Trade and Other Receivables, Prepayments, Deposits and Other Receivables](index=13&type=section&id=14%20Trade%20and%20Other%20Receivables%2C%20Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, total trade receivables were 685,865 Thousand HKD, with credit terms generally 90 days, extendable to 150 days for major customers. The company manages credit risk through its credit control department and credit insurance, and regularly reviews overdue balances | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade receivables | 685,865 | 660,194 | | Prepayments, deposits and other receivables | 146,248 | 158,520 | | **Total** | **832,113** | **818,714** | - Credit terms are generally **90 days**, extendable to a maximum of **150 days** for major customers, with credit risk hedged through credit insurance[31](index=31&type=chunk)[32](index=32&type=chunk) Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | 1 to 3 months | 618,427 | 576,119 | | 4 to 6 months | 28,094 | 58,732 | | 7 to 12 months | 24,130 | 25,276 | | Over 1 year | 15,214 | 67 | [15 Trade and Bills Payables](index=14&type=section&id=15%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables were 313,861 Thousand HKD, with most trade payables falling within 1 to 3 months | Item | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Trade payables (1 to 3 months) | 278,538 | 261,234 | | Trade payables (4 to 6 months) | 23,028 | 40,506 | | Trade payables (7 to 12 months) | 1,150 | 2,230 | | Trade payables (Over 1 year) | 4,245 | 14,904 | | Bills payable | 6,900 | 4,934 | | **Total** | **313,861** | **323,808** | [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Performance](index=15&type=section&id=Financial%20Performance) Despite global trade tensions and tariff adjustments, the Group maintained robust financial performance for the six months ended June 30, 2025. Revenue remained stable, gross profit margin was approximately 16%, and net profit attributable to equity holders significantly increased by nearly 60%, driven by cost control, new product commercialization, reduced finance expenses, and improved operational efficiency - Revenue remained stable at **HKD 816.64 million**, consistent with the prior year period, despite global trade tensions and tariff adjustments[35](index=35&type=chunk) - Gross profit margin remained stable year-on-year at approximately **16%**, reflecting optimized product mix and improved operational efficiency[35](index=35&type=chunk) - Finance expenses decreased by nearly **16%** compared to the prior year period, attributed to loan portfolio restructuring from high-interest HKD financing to lower-interest RMB financing[36](index=36&type=chunk) - Net profit attributable to equity holders increased by **59.8%** from **HKD 2.76 million** in H1 2024 to **HKD 4.41 million** in the current period[36](index=36&type=chunk) [Business Review](index=16&type=section&id=Business%20Review) While demand in traditional applications for the global passive electronic components market was sluggish, advanced energy sectors (energy storage systems and AI infrastructure) emerged as key growth drivers. The Group successfully strengthened its market position in these high-growth areas through focused R&D and product portfolio adjustments, achieving stable revenue and operational resilience - In the global passive electronic components market, advanced energy sectors (advanced energy storage systems and AI infrastructure) are significant market drivers[37](index=37&type=chunk) - The AI revolution has created unprecedented demand for specialized passive components in AI servers and accelerators, which command a price premium[37](index=37&type=chunk) - The Group continues to focus R&D on advanced energy sectors and rapidly adjusts its product portfolio and manufacturing capabilities to high-value areas, achieving stable revenue[37](index=37&type=chunk) - Implementation of advanced production optimization techniques and stringent cost controls enhanced manufacturing efficiency, supporting net profit growth[38](index=38&type=chunk) - R&D investment and a diversified business model effectively expanded market share in high-growth areas such as AI infrastructure and advanced energy storage solutions[39](index=39&type=chunk) [Market Overview](index=16&type=section&id=Market%20Overview) Against a backdrop of subdued demand in traditional applications, the global passive electronic components market sees advanced energy sectors, particularly advanced energy storage systems and AI infrastructure, as new growth engines, driving demand for high-voltage capacitors and high-performance, high-safety components - Advanced energy storage drives demand for high-voltage capacitors and high-performance, high-safety capacitors[37](index=37&type=chunk) - The AI revolution creates immense demand for specialized passive components in AI servers and accelerators, which command a price premium[37](index=37&type=chunk) [Operational Review](index=16&type=section&id=Operational%20Review) The Group demonstrated strong operational resilience by implementing advanced production optimization techniques, stringent cost controls, and supply chain optimization. R&D investment and a diversified business model successfully expanded market share in high-growth areas, achieving sustainable profitable growth through technological innovation and financial discipline - Implementation of advanced production optimization techniques and stringent cost controls enhanced manufacturing efficiency[38](index=38&type=chunk) - R&D-driven product development strategy successfully expanded market share in high-growth areas such as AI infrastructure and advanced energy storage solutions[39](index=39&type=chunk) - Financial discipline is central to operations, including comprehensive cost optimization measures and targeted R&D investments[39](index=39&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's cash and cash equivalents were 143.79 Million HKD, and total outstanding bank and other borrowings were 976.09 Million HKD. The net gearing ratio was 54.5%, and the current ratio was 1.09 times, indicating slightly tightened but still robust liquidity | Indicator | June 30, 2025 (Million HKD) | December 31, 2024 (Million HKD) | | :--- | :--- | :--- | | Cash and cash equivalents | 143.79 | 208.17 | | Total outstanding bank and other borrowings | 976.09 | 1,002.05 | | Net gearing ratio | 54.5% | 53.1% | | Net working capital | 136.86 | 147.19 | | Current ratio | 1.09 times | 1.10 times | - The Group closely monitors foreign exchange risk, primarily transacting in HKD, RMB, USD, and JPY[40](index=40&type=chunk) [Outlook and Prospects](index=18&type=section&id=Outlook%20and%20Prospects) Looking ahead to the second half of 2025, the global economic environment remains challenging, but the Group maintains its strategic advantage through a diversified business model and customer-centric strategy. Future focus will be on expanding and diversifying the customer portfolio, deepening relationships, and transforming from a traditional capacitor supplier to an integrated solution partner, especially in high-value applications such as advanced energy storage, AI infrastructure power management, and EV charging - The International Monetary Fund maintains its 2025 global economic growth forecast at **3.0%**, but warns of inflationary pressures and geopolitical uncertainties[41](index=41&type=chunk) - The Group will expand and diversify its customer portfolio, deepen relationships with existing customers, and provide customized engineering support and technical collaboration[41](index=41&type=chunk) - Strategic priorities include transforming from a traditional capacitor supplier to an integrated solution partner, focusing on advanced energy storage systems, AI infrastructure power management, and electric vehicle charging solutions[41](index=41&type=chunk) - The Group's geographically diversified manufacturing footprint and localized supply chain initiatives provide resilience amidst trade disputes and prepare for normalization of trade relations[42](index=42&type=chunk) [Other Information](index=19&type=section&id=Other%20Information) [Employment and Remuneration Policies](index=19&type=section&id=Employment%20and%20Remuneration%20Policies) As of June 30, 2025, the Group employed 2,553 employees. Remuneration policies are based on fair reward, meritocracy, and market competitiveness, offering benefits such as provident funds, medical insurance, and performance-linked bonuses | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total number of employees | 2,553 | 2,227 | - Remuneration policies are based on fair reward, incentivization, meritocracy, and market-competitive compensation, offering provident funds, medical insurance, and performance-linked bonuses[43](index=43&type=chunk) [Purchase, Sale or Redemption of the Company's Shares](index=19&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Shares) 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 shares - During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any shares[44](index=44&type=chunk) [Compliance with the Corporate Governance Code](index=19&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the period - The Company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules[45](index=45&type=chunk) [Compliance with the Model Code](index=19&type=section&id=Compliance%20with%20the%20Model%20Code) The Company has adopted the Model Code as set out in Appendix C3 to the Listing Rules, which governs directors' dealings in securities. All directors confirmed full compliance with the Model Code during the period - All directors confirmed full compliance with the Model Code as set out in Appendix C3 to the Listing Rules during the period[46](index=46&type=chunk) [Scope of Work of the Audit Committee and KPMG](index=19&type=section&id=Scope%20of%20Work%20of%20the%20Audit%20Committee%20and%20KPMG) The Audit Committee has reviewed the Group's unaudited consolidated financial statements for the six months ended June 30, 2025, which have been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410 - The Audit Committee has reviewed the interim financial statements, which were reviewed by KPMG[47](index=47&type=chunk) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the period. Dividends payable of 2,330,000 HKD were approved and recognized, representing the final dividend for the previous financial year - The Board does not recommend the payment of an interim dividend for the period[48](index=48&type=chunk) - Dividends payable of **HKD 2.33 million** were approved and recognized, representing the final dividend of **0.49 HK cents** per ordinary share for the previous financial year[48](index=48&type=chunk) [Publication of 2025 Interim Results and Interim Report](index=20&type=section&id=Publication%20of%202025%20Interim%20Results%20and%20Interim%20Report) This announcement has been published on HKEXnews and the Company's website. The interim report containing all information will be dispatched to shareholders and published on the relevant websites on or before September 30, 2025 - This announcement has been published on HKEXnews and the Company's website[49](index=49&type=chunk) - The interim report will be dispatched to shareholders and published on HKEXnews and the Company's website on or before September 30, 2025[49](index=49&type=chunk) [Acknowledgement and Board Information](index=20&type=section&id=Acknowledgement%20and%20Board%20Information) The Board expresses gratitude to all employees, customers, suppliers, banks, and shareholders for their support. As of the announcement date, the Board members include Executive Directors Ms. Ji Chulian, Mr. Chen Yucheng, Mr. Chen Dachang, and Independent Non-executive Directors Mr. Luo Guigui, Mr. Ma Shaoyuan, Mr. Rong Yongqi - The Board expresses gratitude to employees, customers, suppliers, banks, and shareholders for their support[50](index=50&type=chunk) - The Board comprises three executive directors and three independent non-executive directors[52](index=52&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company achieved a 2.6% revenue growth and significantly narrowed losses, with adjusted net loss improving by 78.2% for the period [Interim Results Highlights](index=1&type=section&id=Interim%20Results%20Highlights) For the six months ended June 30, 2025, the company's revenue increased by 2.6% year-on-year, with a significant narrowing of losses, including a 42.1% reduction in loss for the period, a 78.2% reduction in adjusted net loss (non-IFRS measure), and a 1 percentage point improvement in adjusted net loss margin Interim Results Highlights (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,326,907 | 2,267,894 | Increase 2.6% | | Loss for the period | (52,021) | (89,801) | Narrowed 42.1% | | Loss for the period attributable to owners of the Company | (51,671) | (84,491) | Narrowed 38.8% | | Adjusted net loss (non-IFRS measure) | (5,759) | (26,448) | Narrowed 78.2% | | Adjusted net loss margin (non-IFRS measure) | (0.2%) | (1.2%) | Improved 1 percentage point | [Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) Total revenue grew by 2.6% with significant loss reduction and gross margin improvement, driven by strategic optimization and a focus on omni-channel retail [Business Review](index=3&type=section&id=Business%20Review) Total revenue grew by 2.6% with significant loss reduction and gross margin improvement, driven by strategic optimization and a focus on omni-channel retail - Total revenue reached **RMB 2,326.9 million**, a **2.6% year-on-year increase**, primarily attributed to optimized urban layout, expanded smart pharmacy network, and improved supply chain services[4](index=4&type=chunk) - Net loss narrowed to **RMB 52.0 million**, and adjusted net loss narrowed to **RMB 5.8 million**; excluding net exchange losses, the loss would further narrow to RMB 1.7 million[5](index=5&type=chunk) - Gross margin improved to **35.0%**, a **1.9 percentage point increase** year-on-year, reflecting the effectiveness of refined operations and cost reduction initiatives[5](index=5&type=chunk) - The company focuses on an omni-channel instant retail business model, emphasizing a full lifecycle health management and full disease course management strategy, forming a "medical, testing, pharmacy, insurance" collaborative ecosystem[7](index=7&type=chunk) - Actively responding to national policies promoting health consumption, guiding new health consumption scenarios such as "Internet + e-prescription + online and offline"[6](index=6&type=chunk) [Quick Medicine Business](index=4&type=section&id=Quick%20Medicine%20Business) Quick medicine business showed steady growth, particularly in online direct sales, supported by enhanced supply chain and cold chain logistics - The quick medicine business maintained steady overall growth, strengthening urban smart central warehouses and cold chain home delivery logistics capabilities[8](index=8&type=chunk)[9](index=9&type=chunk) Quick Medicine Business Revenue Details (For the six months ended June 30) | Channel | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Online Direct Sales | 1,688.5 | 1,612.7 | Increase 4.7% | | Business Distribution | 266.7 | 274.3 | Decrease 2.8% | | Offline Retail | 305.0 | 323.1 | Decrease 5.6% | | Other Businesses | 66.7 | 57.8 | Increase 15.4% | [Online Consultation](index=6&type=section&id=Online%20Consultation) Online consultation services are provided by over 800 doctors and 400 pharmacists, integrated with a smart inquiry system across the pharmacy network - The medical team includes over **800 doctors** and **400 medical pharmacists**, providing online consultation services combined with a smart inquiry system[14](index=14&type=chunk) [Chronic Disease and Health Management](index=6&type=section&id=Chronic%20Disease%20and%20Health%20Management) The company leverages AI and health data to provide chronic disease management and medication adherence services, partnering with medical institutions for patient care - Through AI systems, health profiles, and medical knowledge bases, the company provides health record management and DOT medication adherence services[15](index=15&type=chunk) - Actively collaborates with medical institutions and top-tier hospitals to explore patient and medical services, offering disease course management, remote consultation, and health management[15](index=15&type=chunk) [Public Welfare and Social Responsibility](index=6&type=section&id=Public%20Welfare%20and%20Social%20Responsibility) The company actively fulfills social responsibility through initiatives like supporting children with leukemia and ensuring medication access during public holidays - Launched the "Big City, Small Love, Lighting the Medical Path" initiative to care for children with leukemia and their families[17](index=17&type=chunk) - Continuously conducted the "Open During Spring Festival" activity for **9 consecutive years**, ensuring residents' health service needs for consultation and medication purchase are met during the Spring Festival[17](index=17&type=chunk) [Future Outlook](index=7&type=section&id=Future%20Outlook) The company plans to advance digital healthcare through online-offline integration, expand health management strategies, and develop smart central warehouses for integrated pharmaceutical retail - Will focus on digital healthcare, popularizing user habits and improving accessibility through online and offline integration, while enabling online medical insurance purchases[18](index=18&type=chunk) - Based on the omni-channel instant retail business model, will prioritize full lifecycle health management and full disease course management strategies, and actively promote smart central warehouse construction to integrate wholesale and retail pharmaceutical goods[18](index=18&type=chunk) - Will continue to consolidate service advantages in major cities like Beijing, Shanghai, and Shenzhen, continuously expanding scale and improving service density, and "strengthening product power and enhancing sales power"[18](index=18&type=chunk) [Revenue](index=8&type=section&id=Revenue) Revenue increased by 2.6% to RMB 2,326.9 million, primarily from pharmaceutical and healthcare business growth due to network expansion and product diversification Revenue (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 2,326.9 | 2,267.9 | Increase 2.6% | | Pharmaceutical and Healthcare Business Revenue | 2,260.2 | 2,210.1 | Increase 2.3% | - Revenue growth primarily attributed to the expanded smart pharmacy network and diversified product categories[19](index=19&type=chunk) [Cost of Revenue](index=8&type=section&id=Cost%20of%20Revenue) Cost of revenue decreased by 0.3% to RMB 1,511.1 million, driven by enhanced operating efficiency and shifts in product sales mix Cost of Revenue (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Cost of Revenue | 1,511.1 | 1,516.2 | Decrease 0.3% | - The decrease in cost of revenue was primarily due to improved operating efficiency and changes in the product sales mix[20](index=20&type=chunk) [Gross Profit and Gross Margin](index=8&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased to RMB 815.8 million, with gross margin rising to 35.0%, reflecting improved operating efficiency and product mix Gross Profit and Gross Margin (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 815.8 | 751.7 | Increase 8.5% | | Gross Margin | 35.0% | 33.1% | Increase 1.9 percentage points | - The increase in gross margin was primarily due to improved operating efficiency and changes in the product sales mix[21](index=21&type=chunk) [Fulfillment Expenses](index=8&type=section&id=Fulfillment%20Expenses) Fulfillment expenses decreased by 0.6% to RMB 222.0 million, improving as a percentage of revenue due to enhanced system efficiency Fulfillment Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Fulfillment Expenses | 222.0 | 223.3 | Decrease 0.6% | | Fulfillment Expenses as % of Revenue | 9.5% | 9.8% | Decrease 0.3 percentage points | - The decrease in fulfillment expenses was primarily due to continuous optimization of the fulfillment system, which improved fulfillment efficiency[22](index=22&type=chunk) [Sales and Marketing Expenses](index=9&type=section&id=Sales%20and%20Marketing%20Expenses) Sales and marketing expenses increased by 8.2% to RMB 525.9 million, rising as a percentage of revenue due to expanded activities Sales and Marketing Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Sales and Marketing Expenses | 525.9 | 485.9 | Increase 8.2% | | Sales and Marketing Expenses as % of Revenue | 22.6% | 21.4% | Increase 1.2 percentage points | - This increase was primarily due to increased sales and marketing activities[23](index=23&type=chunk) [R&D Expenses](index=9&type=section&id=R%26D%20Expenses) R&D expenses increased by 2.5% to RMB 25.0 million, maintaining a stable 1.1% of revenue R&D Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | R&D Expenses | 25.0 | 24.4 | Increase 2.5% | | R&D Expenses as % of Revenue | 1.1% | 1.1% | Remained stable | [General and Administrative Expenses](index=9&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by 19.3% to RMB 101.7 million, improving as a percentage of revenue due to reduced employee welfare costs General and Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | General and Administrative Expenses | 101.7 | 126.1 | Decrease 19.3% | | General and Administrative Expenses as % of Revenue | 4.4% | 5.6% | Decrease 1.2 percentage points | - The decrease in general and administrative expenses was primarily due to lower employee welfare expenses[25](index=25&type=chunk) [Other Gains and Losses, Net](index=9&type=section&id=Other%20Gains%20and%20Losses%2C%20Net) The company reported a net other loss of RMB 3.5 million, shifting from a gain, mainly due to increased exchange losses and reduced fair value gains Other Gains and Losses, Net (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Other Gains and Losses, Net | (3.5) | 6.7 | Shifted from gain to loss | | Reasons for Change | Increased net exchange losses and reduced fair value gains on financial assets | | | [Other Income](index=9&type=section&id=Other%20Income) Other income remained stable at RMB 24.3 million for the six months ended June 30, 2025 Other Income (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Other Income | 24.3 | 25.3 | Remained stable | [Finance Costs](index=10&type=section&id=Finance%20Costs) Finance costs increased by 25.0% to RMB 5.5 million for the six months ended June 30, 2025 Finance Costs (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Finance Costs | 5.5 | 4.4 | Increase 25.0% | [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 27.9% to RMB 7.8 million, primarily driven by higher taxable income Income Tax Expense (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 7.8 | 6.1 | Increase 27.9% | - The increase in income tax expense was primarily due to an increase in taxable income[29](index=29&type=chunk) [Loss for the Period](index=10&type=section&id=Loss%20for%20the%20Period) Net loss for the period decreased by 42.1% to RMB 52.0 million Loss for the Period (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Loss for the Period | (52.0) | (89.8) | Decrease 42.1% | [Non-IFRS Measures: Adjusted Net Loss and Adjusted Net Loss Margin](index=10&type=section&id=Non-IFRS%20Measures%3A%20Adjusted%20Net%20Loss%20and%20Adjusted%20Net%20Loss%20Margin) Adjusted net loss and adjusted net loss margin are presented as supplementary metrics, with adjusted net loss significantly narrowing after non-cash adjustments - Adjusted net loss (non-IFRS measure) is derived from loss for the period by excluding certain reconciling items, such as share-based payment expenses, goodwill impairment, and amortization of other intangible assets[31](index=31&type=chunk) Reconciliation of Net Loss to Adjusted Net Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net loss for the period | (52,021) | (89,801) | | Add: Share-based payments | 36,961 | 51,283 | | Add: Impairment loss recognized on goodwill | – | 1,104 | | Add: Amortization of other intangible assets arising from acquisitions (net of income tax effect) | 9,301 | 10,966 | | Adjusted net loss for the period (non-IFRS measure) | (5,759) | (26,448) | | Adjusted net loss margin (non-IFRS measure) | (0.2%) | (1.2%) | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue grew and gross profit improved, while loss for the period and total comprehensive expenses significantly narrowed [Profit or Loss Statement](index=12&type=section&id=Profit%20or%20Loss%20Statement) Revenue grew and gross profit improved, while loss for the period and total comprehensive expenses significantly narrowed Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 2,326,907 | 2,267,894 | | Cost of revenue | (1,511,098) | (1,516,158) | | Gross profit | 815,809 | 751,736 | | Fulfillment expenses | (222,034) | (223,307) | | Sales and marketing expenses | (525,884) | (485,874) | | R&D expenses | (24,993) | (24,355) | | General and administrative expenses | (101,737) | (126,087) | | Other gains and losses, net | (3,515) | 6,654 | | Other income | 24,301 | 25,296 | | Finance costs | (5,516) | (4,351) | | Loss before income tax | (44,246) | (83,664) | | Income tax expense | (7,775) | (6,137) | | Loss for the period | (52,021) | (89,801) | | Total comprehensive expenses for the period | (41,675) | (128,546) | | Loss per share (RMB) | (0.04) | (0.06) | [Condensed Consolidated Statement of Financial Position](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets increased to RMB 2,892.8 million, with notable shifts in non-current and current assets, and a significant rise in total liabilities [Financial Position Statement](index=14&type=section&id=Financial%20Position%20Statement) Total assets increased to RMB 2,892.8 million, with notable shifts in non-current and current assets, and a significant rise in total liabilities Summary of Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 538,880 | 431,062 | | Total Current Assets | 2,353,949 | 2,201,613 | | Total Assets | 2,892,829 | 2,632,675 | | **Equity** | | | | Total Equity | 1,675,179 | 1,680,230 | | **Liabilities** | | | | Total Non-current Liabilities | 220,655 | 120,425 | | Total Current Liabilities | 996,995 | 832,020 | | Total Liabilities | 1,217,650 | 952,445 | - Right-of-use assets increased from **RMB 167.1 million** to **RMB 277.8 million**, and equity instruments at fair value through other comprehensive income increased from **RMB 60.0 million** to **RMB 70.3 million**[36](index=36&type=chunk) - Among current assets, financial assets at fair value through profit or loss increased from nil to **RMB 345.0 million**, time deposits increased from nil to **RMB 437.9 million**, while cash and cash equivalents decreased from **RMB 1,218.0 million** to **RMB 576.3 million**[36](index=36&type=chunk) - Non-current lease liabilities increased from **RMB 97.7 million** to **RMB 200.2 million**, and trade payables increased from **RMB 351.2 million** to **RMB 516.2 million**[37](index=37&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the basis of preparation, accounting policies, and specific line items within the condensed consolidated financial statements [General Information](index=16&type=section&id=General%20Information) The company, incorporated in the Cayman Islands and listed on HKEX, primarily operates in China's pharmaceutical and healthcare sector, with financials presented in RMB - The company was incorporated in the Cayman Islands, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited since September 14, 2022[38](index=38&type=chunk) - Primarily engaged in providing pharmaceutical and healthcare businesses within China, and the condensed consolidated financial statements are presented in RMB[38](index=38&type=chunk)[39](index=39&type=chunk) [Basis of Preparation](index=16&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules disclosure requirements - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[40](index=40&type=chunk) [Accounting Policies](index=16&type=section&id=Accounting%20Policies) Financial statements are prepared on a historical cost basis, with no significant impact from revised IFRS accounting standards during the interim period - The condensed consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments measured at fair value[41](index=41&type=chunk) - The application of amendments to International Financial Reporting Standards during this interim period had no significant impact on the Group's financial position and performance for the current and prior periods[43](index=43&type=chunk) [Segment Information](index=17&type=section&id=Segment%20Information) The Group operates as a single reportable segment, with all non-current assets and revenue originating from China and no significant customer concentration - The Group has only one reportable segment, with the chief operating decision-maker reviewing consolidated results[44](index=44&type=chunk) - All of the Group's non-current assets and revenue are located in China, and no revenue from transactions with a single external customer accounted for 10% or more of the Group's revenue[44](index=44&type=chunk) [Revenue (Note 5)](index=18&type=section&id=Revenue%20%28Note%205%29) Customer contract revenue primarily stems from pharmaceutical and healthcare businesses, with recognition mostly occurring at a point in time Breakdown of Revenue from Contracts with Customers (For the six months ended June 30) | Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Pharmaceutical and healthcare businesses | 2,260,218 | 2,210,057 | | Others* | 66,689 | 57,837 | | **Total Revenue from Contracts with Customers** | **2,326,907** | **2,267,894** | | Timing of revenue recognition: At a point in time | 2,260,218 | 2,210,057 | | Timing of revenue recognition: Over time | 66,689 | 57,837 | * Others refer to marketing services, market service fees and other income. [Loss Before Income Tax (Note 6)](index=19&type=section&id=Loss%20Before%20Income%20Tax%20%28Note%206%29) Loss before income tax accounts for various expenses including cost of inventories, employee benefits, depreciation, amortization, and auditor's remuneration Deductions for Loss Before Income Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 1,507,543 | 1,515,673 | | Impairment provision for inventories | 3,555 | 485 | | Total employee benefit expenses | 221,591 | 258,927 | | Depreciation of property and equipment | 7,475 | 7,739 | | Depreciation of right-of-use assets | 44,056 | 43,494 | | Amortization of other intangible assets | 15,095 | 18,541 | | Auditor's remuneration | 940 | 1,180 | [Other Gains and Losses, Net (Note 7)](index=20&type=section&id=Other%20Gains%20and%20Losses%2C%20Net%20%28Note%207%29) Net other gains and losses shifted to a loss, mainly due to increased exchange losses, asset disposal losses, and reduced fair value gains on financial assets Details of Other Gains and Losses, Net (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net exchange (losses) / gains | (4,086) | 3,008 | | Loss on disposal of property and equipment | (408) | (5) | | Fair value gains on financial assets at fair value through profit or loss | 1,982 | 4,502 | | Loss on early termination of leases | (1,271) | (706) | | Impairment loss recognized on goodwill | – | (1,104) | | Others | 268 | 959 | | **Total** | **(3,515)** | **6,654** | [Other Income (Note 8)](index=20&type=section&id=Other%20Income%20%28Note%208%29) Other income comprises bank interest, lease deposit interest, government grants, rental income, and dividends from equity instruments Details of Other Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank deposit interest income | 15,002 | 13,826 | | Lease deposit interest | 262 | 259 | | Government grants | 3,921 | 5,017 | | Rental income – fixed | 1,060 | 2,345 | | Dividends from equity instruments at fair value through other comprehensive income | 4,056 | 3,849 | | **Total** | **24,301** | **25,296** | [Finance Costs (Note 9)](index=21&type=section&id=Finance%20Costs%20%28Note%209%29) Finance costs increased during the reporting period - Finance costs increased from **RMB 4.4 million** in 2024 to **RMB 5.5 million** in 2025[28](index=28&type=chunk) [Impairment Losses under ECL Model (Note 10)](index=21&type=section&id=Impairment%20Losses%20under%20ECL%20Model%20%28Note%2010%29) Total impairment losses under the ECL model amounted to RMB 677 thousand, mainly from trade receivables, partially offset by other receivables reversals Impairment Losses under ECL Model (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 1,107 | 2,542 | | Other receivables | (430) | (343) | | **Total** | **677** | **2,199** | [Income Tax Expense (Note 11)](index=21&type=section&id=Income%20Tax%20Expense%20%28Note%2011%29) Income tax expense, totaling RMB 7,775 thousand, is composed of current and deferred income tax Income Tax Expense Details (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax – current period | 10,528 | 7,910 | | Current income tax – under-provision in prior periods | – | 390 | | Deferred income tax | (2,753) | (2,163) | | **Total** | **7,775** | **6,137** | [Earnings Per Share (Note 12)](index=22&type=section&id=Earnings%20Per%20Share%20%28Note%2012%29) Basic and diluted loss per share narrowed to RMB 0.04, with no difference due to the anti-dilutive effect of restricted share units Loss Per Share and Number of Shares (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (RMB thousand) | (51,671) | (84,491) | | Weighted average number of ordinary shares | 1,299,372,897 | 1,322,658,246 | | Basic and diluted loss per share (RMB) | (0.04) | (0.06) | - For the six months ended June 30, 2025, potential ordinary shares were not included in the calculation of diluted loss per share as they had an anti-dilutive effect, thus diluted loss per share was the same as basic loss per share[63](index=63&type=chunk) [Trade and Other Receivables and Prepayments (Note 13)](index=23&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments%20%28Note%2013%29) Total trade and other receivables and prepayments were RMB 363.5 million, with overdue trade receivables not impaired due to expected settlement and stable credit quality Details of Trade and Other Receivables and Prepayments (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Subtotal of Trade Receivables | 128,141 | 118,245 | | Subtotal of Other Receivables and Prepayments | 235,363 | 255,891 | | **Total** | **363,504** | **374,136** | | Lease deposits (non-current) | 17,099 | 15,495 | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 106,443 | 99,516 | | 3 to 6 months | 6,676 | 7,784 | | 6 to 12 months | 15,169 | 7,396 | | Over 12 months | 3,655 | 6,244 | | Less: Provision for expected credit losses | (3,802) | (2,695) | | **Total** | **128,141** | **118,245** | - As of June 30, 2025, the balance of trade receivables included gross amounts of **RMB 34.3 million** that were past due but not impaired, as the company is confident in subsequent settlements and customer credit quality has not deteriorated[65](index=65&type=chunk) [Trade and Other Payables (Note 14)](index=25&type=section&id=Trade%20and%20Other%20Payables%20%28Note%2014%29) Total trade and other payables significantly increased to RMB 845.9 million, with most trade payables due within three months Details of Trade and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Subtotal of Trade Payables | 521,133 | 374,151 | | Subtotal of Other Payables | 324,765 | 335,375 | | **Total** | **845,898** | **709,526** | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 473,838 | 307,142 | | 3 to 6 months | 27,251 | 33,299 | | 6 to 12 months | 8,368 | 13,531 | | Over 12 months | 11,676 | 20,179 | | **Total** | **521,133** | **374,151** | [Dividends (Note 15)](index=26&type=section&id=Dividends%20%28Note%2015%29) No dividends were paid or proposed to ordinary shareholders or non-controlling interests for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Company neither paid nor proposed any dividends to ordinary shareholders[68](index=68&type=chunk) - For the six months ended June 30, 2025, certain subsidiaries did not declare and pay dividends to non-controlling interests (RMB 8,949 thousand was paid in the corresponding period of 2024)[68](index=68&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) This section covers liquidity, capital resources, commitments, investments, foreign exchange risk, contingent liabilities, employee information, and corporate governance matters [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased to RMB 576.3 million, with increased operating cash flow offset by higher investing activities for financial assets and time deposits Cash Flow Summary (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash from operating activities | 188,171 | 75,009 | | Net cash (used in) / from investing activities | (778,922) | 32,245 | | Net cash used in financing activities | (46,826) | (62,620) | | Net (decrease) / increase in cash and cash equivalents | (637,577) | 44,634 | | Cash and cash equivalents at end of period | 576,274 | 1,233,580 | - Net cash from operating activities increased primarily due to a decrease in loss before income tax, as well as adjustments for non-cash and non-operating items and changes in working capital[71](index=71&type=chunk) - Net cash used in investing activities was mainly attributable to the purchase of financial assets at fair value through profit or loss of **RMB 830.0 million** and placement of time deposits of **RMB 432.2 million**, partially offset by the redemption of financial assets of **RMB 487.0 million**[72](index=72&type=chunk) - Net cash used in financing activities was primarily attributable to the repayment of lease liabilities of **RMB 41.3 million** and payment of interest of **RMB 5.5 million**[73](index=73&type=chunk) [Borrowings and Capital Liabilities](index=28&type=section&id=Borrowings%20and%20Capital%20Liabilities) The company had no bank borrowings as of June 30, 2025, thus no gearing ratio was presented - As of June 30, 2025, the company had no bank borrowings, and therefore, no gearing ratio was presented[74](index=74&type=chunk) [Capital Expenditure](index=28&type=section&id=Capital%20Expenditure) Capital expenditure totaled RMB 13.4 million, mainly for property, equipment, right-of-use assets, and other intangible assets Capital Expenditure (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Capital Expenditure | 13.4 | 13.8 | - Capital expenditure primarily included purchases of property and equipment, payments for right-of-use assets, and purchases of other intangible assets[75](index=75&type=chunk) [Capital Commitments](index=28&type=section&id=Capital%20Commitments) The company had no significant capital commitments as of June 30, 2025 - As of June 30, 2025, the company had no significant capital commitments[76](index=76&type=chunk) [Asset Pledges](index=29&type=section&id=Asset%20Pledges) The company had no significant asset pledges as of June 30, 2025 - As of June 30, 2025, the company had no significant asset pledges[77](index=77&type=chunk) [Major Investments Held](index=29&type=section&id=Major%20Investments%20Held) The company made or held no major investments for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the company made or held no major investments[78](index=78&type=chunk) [Future Plans for Major Investments and Capital Assets](index=29&type=section&id=Future%20Plans%20for%20Major%20Investments%20and%20Capital%20Assets) The Group has no additional plans for major investments or capital assets beyond those disclosed in the prospectus - As of June 30, 2025, other than those disclosed in the "Future Plans and Use of Proceeds" section of the prospectus, the Group had no other plans for major investments and capital assets[79](index=79&type=chunk) [Significant Acquisitions and/or Disposals of Subsidiaries and Affiliates](index=29&type=section&id=Significant%20Acquisitions%20and%2For%20Disposals%20of%20Subsidiaries%20and%20Affiliates) The company had no significant acquisitions or disposals of subsidiaries and affiliates for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the company had no significant acquisitions and/or disposals of subsidiaries and affiliates[80](index=80&type=chunk) [Foreign Exchange Risk](index=29&type=section&id=Foreign%20Exchange%20Risk) The Group's functional currency is RMB, with foreign exchange risk arising from non-RMB transactions, and no hedging contracts are in place - The functional currency of the Group's entities is RMB, and foreign exchange risk arises when future commercial transactions or recognized financial assets and liabilities are denominated in a currency other than the functional currency[81](index=81&type=chunk) - The company has not entered into any forward foreign exchange contracts to hedge its exposure to foreign exchange risk[81](index=81&type=chunk) [Contingent Liabilities](index=29&type=section&id=Contingent%20Liabilities) The company had no significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the company had no significant contingent liabilities[82](index=82&type=chunk) [Employees](index=30&type=section&id=Employees) The company employed 2,266 full-time staff in China, with total employee benefit expenses of RMB 221.6 million, focusing on competitive compensation and development - As of June 30, 2025, the company had **2,266 full-time employees**, primarily located in China[83](index=83&type=chunk) Employee Functional Distribution (As of June 30, 2025) | Employee Function | Number of Employees | | :--- | :--- | | Sales, Marketing and Business Development | 1,521 | | Technology and R&D | 312 | | Management | 258 | | Administration | 175 | | **Total** | **2,266** | - Total employee benefit expenses (including share-based payment expenses) amounted to **RMB 221.6 million**, a decrease from RMB 258.9 million in the corresponding period last year[88](index=88&type=chunk) [Use of Net Proceeds from Global Offering](index=31&type=section&id=Use%20of%20Net%20Proceeds%20from%20Global%20Offering) Net proceeds of HKD 341.6 million from the global offering were fully utilized by June 30, 2025, including funds for potential investments - The company raised net proceeds of approximately **HKD 341.6 million** from the global offering, which were fully utilized as of June 30, 2025[89](index=89&type=chunk)[90](index=90&type=chunk) Utilization of Net Proceeds from Global Offering (As of June 30, 2025) | Use | Percentage of Total Net Proceeds | Net Proceeds from Global Offering (HKD million) | Amount Utilized as of June 30, 2025 (HKD million) | | :--- | :--- | :--- | :--- | | Business Expansion | 45.0% | 153.7 | 153.7 | | Optimization of Technology Systems and Operating Platforms | 15.0% | 51.2 | 51.2 | | Enhancement of Services and Businesses | 10.0% | 34.2 | 34.2 | | Potential Investments and Acquisitions or Strategic Collaborations | 20.0% | 68.3 | 68.3 | | Working Capital and Other General Corporate Purposes | 10.0% | 34.2 | 34.2 | | **Total** | **100.0%** | **341.6** | **341.6** | - The remaining net proceeds of approximately **HKD 23.5 million** allocated for potential investments and acquisitions or strategic collaborations were fully utilized by June 30, 2025; the Directors believe the delay in utilization did not have a material adverse impact on the Group's business[90](index=90&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The company adheres to high corporate governance standards, complying with the Listing Rules' code, with the Chairman and CEO roles combined for strategic efficiency - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and complied with the code provisions during the reporting period[92](index=92&type=chunk) - The roles of Chairman and Chief Executive Officer are performed by Mr. Yang Wenlong; the Board believes this arrangement facilitates leadership consistency and efficient strategic planning, and independent non-executive directors adequately safeguard the overall interests of the company and its shareholders[93](index=93&type=chunk) [Standard Code for Securities Transactions by Directors](index=33&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code for directors' securities transactions, with all directors confirming compliance during the reporting period - The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with the required standards of the Standard Code during the reporting period[95](index=95&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held - 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 or its subsidiaries' listed securities[96](index=96&type=chunk) - As of June 30, 2025, the company held no treasury shares[96](index=96&type=chunk) [Changes in Directors' and Chief Executive's Information](index=34&type=section&id=Changes%20in%20Directors%27%20and%20Chief%20Executive%27s%20Information) Changes in directorships and committee memberships occurred, including resignations and new appointments for non-executive directors - Ms. Cai Li resigned as a non-executive director and a member of the remuneration committee, effective May 30, 2025[97](index=97&type=chunk) - Ms. Li Chuheng was appointed as a non-executive director and a member of the remuneration committee and nomination committee, effective May 30, 2025[97](index=97&type=chunk) - Mr. Jiang Shan, an independent non-executive director, was appointed as a member of the nomination committee, effective May 30, 2025[97](index=97&type=chunk) [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[98](index=98&type=chunk) [Events After Reporting Period](index=34&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period of June 30, 2025 - No significant events occurred after June 30, 2025[99](index=99&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, oversees financial reporting, internal controls, and risk management - The Audit Committee comprises three independent non-executive directors: Mr. Jiang Shan (Chairman), Mr. Zhang Shouchuan, and Dr. Fan Zhenhong[100](index=100&type=chunk) - The primary duties of the Audit Committee include reviewing and overseeing the Group's financial reporting process, internal control and risk management systems, and supervising the audit process[100](index=100&type=chunk) [Review of Accounts](index=35&type=section&id=Review%20of%20Accounts) The Audit Committee reviewed the unaudited condensed consolidated financial statements, which were also reviewed by Deloitte Touche Tohmatsu - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and discussed them with senior management and the auditor[101](index=101&type=chunk) - The condensed consolidated financial statements have been reviewed by Deloitte Touche Tohmatsu in accordance with International Standard on Review Engagements 2410[101](index=101&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=35&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The interim results announcement and report are published on the HKEX and company websites, with printed copies available upon request - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.ddjkjt.com)[102](index=102&type=chunk) - The Group's interim report for the six months ended June 30, 2025, will be published on the aforementioned websites and will be sent to shareholders who have indicated a wish to receive printed corporate communications, at the appropriate time[102](index=102&type=chunk)

香港交易及結算所有限公司和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 Disclaimer and Name's of Directors 10pt font size, 16pt leading 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依賴該等內容而引致 的任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：1205） 截至2025年6月30日止六個月的中期業績公告 中信資源控股有限公司（「本公司」）董事會（「董事會」）宣佈本公司和其附屬公司（統 稱「本集團」）截至2025年6月30日止六個月（「本期間」）的未經審核綜合中期業績。 財務摘要 | 截至6月30日止六個月 | 2025年 | 2024年 | 變動 | | --- | --- | --- | --- | | 未經審核 | 百萬港元 | 百萬港元 | | | 收入 | 9,382.3 | 3,944.6 | 137.9% | | EBITDA1 | 510.8 | 795.5 | (35.8%) | | 經調整EBITDA2 | 754.7 | 1,096.6 | (31.2%) ...

Company Announcements and Financial Summary This section provides an overview of the company's interim results and key financial highlights [Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) Unaudited H1 2025 results show decreased revenue and expanded losses attributable to ordinary shareholders | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 3,019,320 | 3,429,871 | -11.97% | | Operating Loss | (1,137,652) | (355,699) | Loss increased by 781,953 | | Loss Attributable to Ordinary Shareholders | (1,647,124) | (769,580) | Loss increased by 877,544 | | Core Operating Loss (after tax, excluding fair value changes) | (1,475,877) | (586,427) | Loss increased by 889,450 | | Fair Value Change Loss on Investment Properties (after tax) | (171,247) | (183,153) | Decreased by 11,906 | Interim Condensed Consolidated Financial Statements This section presents the company's interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) H1 2025 saw RMB 3.019 billion revenue, a gross loss, and expanded operating and period losses | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 3,019,320 | 3,429,871 | | Cost of Sales | (3,327,281) | (2,941,989) | | Gross Loss / Profit | (307,961) | 487,882 | | Operating Loss | (1,137,652) | (355,699) | | Finance Costs – Net | (473,734) | (350,972) | | Loss Before Income Tax | (1,609,845) | (706,872) | | Loss for the Period | (1,765,459) | (880,432) | | Loss Attributable to Ordinary Shareholders of the Company | (1,647,124) | (769,580) | | Loss Per Share (Basic and Diluted) | (48.92) cents | (22.86) cents | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's total comprehensive loss for the period was RMB 1.765 billion, consistent with the loss for the period, with no other comprehensive income | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (1,765,459) | (880,432) | | Other Comprehensive Income | – | – | | Total Comprehensive Loss for the Period | (1,765,459) | (880,432) | | Attributable to Ordinary Shareholders of the Company | (1,647,124) | (769,580) | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets decreased by 5.73% to RMB 54.316 billion as of June 30, 2025, with ordinary shareholders' equity down 10.12% | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Assets | 54,315,622 | 57,619,449 | | Non-current Assets | 20,120,058 | 20,580,436 | | Current Assets | 34,195,564 | 37,039,013 | | Total Liabilities | 37,080,146 | 39,268,837 | | Non-current Liabilities | 20,499,763 | 23,017,509 | | Current Liabilities | 16,580,383 | 16,251,328 | | Net Assets | 17,235,476 | 18,350,612 | | Equity Attributable to Ordinary Shareholders of the Company | 14,636,281 | 16,283,405 | - Equity attributable to ordinary shareholders of the Company decreased by **10.12%** compared to December 31, 2024, primarily due to the loss incurred during the period[90](index=90&type=chunk) Notes to the Financial Statements This section provides detailed notes to the interim financial statements, covering accounting policies, segment information, operating loss, finance costs, and tax expenses [1. Summary of Significant Accounting Policies and Basis of Preparation](index=6&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies%20and%20Basis%20of%20Preparation) Interim financial information is prepared under HKAS 34, with accounting policies consistent with 2024 annual statements, and HKAS 21 amendments having no material impact - Interim financial information is prepared in accordance with **HKAS 34** and has been reviewed but not audited[10](index=10&type=chunk)[11](index=11&type=chunk) - The amendment to **HKAS 21 "Lack of Exchangeability"** became effective on January 1, 2025, and was first adopted, but it has no material impact on the Group's interim financial information[11](index=11&type=chunk)[12](index=12&type=chunk) [2. Segment Information](index=7&type=section&id=2.%20Segment%20Information) Segment information shows Convention, Exhibition (including Hotel) and Commercial Properties' profit slightly up, while Property Development's loss significantly widened - The Board assesses business based on product and service perspectives, with primary segments being **Convention, Exhibition (including Hotel) and Commercial Properties** and **Property Development**[13](index=13&type=chunk) - Segment results are evaluated based on adjusted loss before income tax, excluding fair value losses on investment properties, but including land appreciation tax and depreciation/impairment provisions for investment properties[13](index=13&type=chunk) [2.1 Segment Revenue](index=8&type=section&id=2.1%20Segment%20Revenue) Convention, Exhibition (including Hotel) and Commercial Properties revenue increased, while Property Development revenue decreased, leading to an overall group revenue decline | Segment | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Convention, Exhibition (including Hotel) and Commercial Properties | 1,476,714 | 1,248,098 | +18.32% | | Property Development | 1,461,344 | 2,079,049 | -29.71% | | Other Segments | 81,262 | 102,724 | -20.90% | | **Total Revenue** | **3,019,320** | **3,429,871** | **-11.97%** | | Revenue Type | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue recognized at a point in time | 1,681,085 | 2,478,389 | | Revenue recognized over time | 618,808 | 488,827 | [2.2 Segment Results](index=10&type=section&id=2.2%20Segment%20Results) Convention, Exhibition (including Hotel) and Commercial Properties' profit before tax slightly increased, while Property Development's loss significantly widened | Segment | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Convention, Exhibition (including Hotel) and Commercial Properties | 201,526 | 198,372 | +1.59% | | Property Development | (1,606,723) | (801,340) | Loss widened by 100.49% | | Other Segments | (26,631) | (34,567) | Loss narrowed by 22.96% | | **Reportable Segment Loss Before Income Tax** | **(1,431,828)** | **(637,535)** | **Loss widened by 124.59%** | [2.3 Segment Assets and Liabilities](index=11&type=section&id=2.3%20Segment%20Assets%20and%20Liabilities) Total segment assets were RMB 40.283 billion and liabilities RMB 21.535 billion as of June 30, 2025, with property development holding the largest asset share | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Segment Assets | 40,283,161 | 42,883,165 | | Total Segment Liabilities | 21,535,488 | 22,866,101 | | Contract Liabilities | 1,818,089 | 1,475,855 | | Additions to Non-current Assets | 13,181 | 103,727 | [2.4 Segment Reconciliation Items](index=12&type=section&id=2.4%20Segment%20Reconciliation%20Items) Revenue from opening contract liabilities decreased significantly, with reconciliation items including headquarters expenses, finance costs, and investment property fair value losses | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue recognized from opening contract liabilities balance | 526,953 | 1,459,686 | -63.90% | | Revenue recognized by Property Development segment | 248,997 | 1,341,945 | -81.45% | | Reconciliation Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Reportable Segment Loss Before Income Tax | (1,431,828) | (637,535) | | Fair Value Loss on Investment Properties | (228,821) | (245,672) | | Reversal of Depreciation and Impairment Losses on Investment Properties | 146,930 | 203,401 | | Land Appreciation Tax | (25,559) | 78,128 | | **Loss Before Income Tax** | **(1,609,845)** | **(706,872)** | - All revenue from external customers is generated in **China**, with no significant revenue from specific external customers[30](index=30&type=chunk)[31](index=31&type=chunk) [3. Operating Loss](index=14&type=section&id=3.%20Operating%20Loss) Operating loss was primarily driven by a significant increase in impairment losses on properties under development and completed properties held for sale | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Fair value loss on investment properties expensed in profit or loss | (228,821) | (245,672) | Decreased by 7.06% | | Impairment losses on properties under development and completed properties held for sale | (1,077,353) | (478,572) | Increased by 125.13% | | Net impairment losses on financial assets | (60,932) | (133,539) | Decreased by 54.37% | | Government grants | 3,763 | 1,075 | Increased by 250.05% | | Investment income | 8,350 | 26,738 | Decreased by 68.86% | - Impairment losses on properties under development and completed properties held for sale are included in **cost of sales** in the interim condensed consolidated statement of profit or loss[33](index=33&type=chunk) [4. Finance Income and Costs](index=14&type=section&id=4.%20Finance%20Income%20and%20Costs) Net finance costs increased by 35.00% to RMB 474 million, primarily due to reduced capitalized interest | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Interest expense | (532,611) | (626,436) | Decreased by 14.98% | | Less: Amount capitalized in properties under development | 43,320 | 206,150 | Decreased by 78.98% | | Finance costs | (489,291) | (420,286) | Increased by 16.42% | | Finance income – interest income | 19,974 | 72,307 | Decreased by 72.38% | | **Net Finance Costs** | **(473,734)** | **(350,972)** | **Increased by 35.00%** | [5. Income Tax Expense](index=15&type=section&id=5.%20Income%20Tax%20Expense) Income tax expense was RMB 156 million, slightly lower than prior year, with standard corporate and land appreciation taxes applicable | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | China Corporate Income Tax | 92,946 | 175,727 | | China Land Appreciation Tax | (25,559) | 78,128 | | Deferred Income Tax | 88,227 | (80,295) | | **Income Tax Expense** | **155,614** | **173,560** | - China Corporate Income Tax rate is **25%**, with certain high-tech enterprises (e.g., Shoudu Convention & Exhibition and North Star Times Convention & Exhibition) subject to a **15%** rate[36](index=36&type=chunk) - The company is subject to **Land Appreciation Tax** at progressive rates ranging from **30% to 60%**[36](index=36&type=chunk) [6. Loss Per Share](index=16&type=section&id=6.%20Loss%20Per%20Share) H1 2025 basic and diluted loss per share significantly widened to RMB 0.4892 from RMB 0.2286 in the prior year | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss Attributable to Ordinary Shareholders of the Company (RMB thousands) | (1,647,124) | (769,580) | | Number of Ordinary Shares Issued (thousands of shares) | 3,367,020 | 3,367,020 | | Loss Per Share (Basic and Diluted, RMB cents) | (48.92) | (22.86) | - The company had no potential dilutive ordinary shares for the six months ended June 30, 2025, thus diluted loss per share is equal to basic loss per share[39](index=39&type=chunk) [7. Dividends](index=17&type=section&id=7.%20Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, and no final dividend was declared for the year ended December 31, 2024 - The Board resolved **not to declare an interim dividend** for the six months ended June 30, 2025[42](index=42&type=chunk) - The annual general meeting in May 2025 resolved **not to declare a final dividend** for the year ended December 31, 2024[42](index=42&type=chunk) [8. Trade and Other Receivables and Prepayments](index=17&type=section&id=8.%20Trade%20and%20Other%20Receivables%20and%20Prepayments) Total trade receivables increased to RMB 343 million as of June 30, 2025, with a notable rise in older receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 65,143 | 125,889 | | 31 to 90 days | 39,516 | 29,836 | | Over 90 days | 237,854 | 125,985 | | **Total Trade Receivables** | **342,513** | **281,710** | - The Group's majority of sales are conducted on a **cash or prepayment basis**, with the remaining amounts having credit terms of **30 to 90 days**[43](index=43&type=chunk) [9. Trade and Other Payables and Borrowings from Other Parties](index=18&type=section&id=9.%20Trade%20and%20Other%20Payables%20and%20Borrowings%20from%20Other%20Parties) Total trade payables decreased to RMB 4.103 billion as of June 30, 2025, with the largest portion being long-aged | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 180 days | 803,263 | 1,499,404 | | 181 to 365 days | 515,678 | 578,138 | | Over 365 days | 2,784,375 | 2,587,259 | | **Total Trade Payables** | **4,103,316** | **4,664,801** | [Reconciliation of Differences between PRC GAAP and HKFRS](index=19&type=section&id=Reconciliation%20of%20Differences%20between%20PRC%20GAAP%20and%20HKFRS) Reconciliation of PRC GAAP and HKFRS financial data highlights differences in investment property depreciation reversal and fair value adjustments | Item | H1 2025 Loss Attributable to Owners (RMB thousands) | H1 2024 Loss Attributable to Owners (RMB thousands) | June 30, 2025 Equity Attributable to Owners (RMB thousands) | December 31, 2024 Equity Attributable to Owners (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Under PRC GAAP | (1,585,414) | (738,317) | 8,113,729 | 9,699,143 | | Reversal of investment property depreciation and impairment under PRC GAAP | 109,537 | 151,890 | 2,995,689 | 2,886,152 | | Fair value adjustment of investment properties under HKFRS | (171,247) | (183,153) | 3,526,863 | 3,698,110 | | **Under HKFRS** | **(1,647,124)** | **(769,580)** | **14,636,281** | **16,283,405** | Discussion of the Company's Industry and Principal Business Operations During the Reporting Period This section outlines the company's business segments and the broader industry trends impacting its operations during the reporting period [(I) Business Overview](index=20&type=section&id=%28I%29%20Business%20Overview) Core businesses include convention, exhibition (including hotel) and commercial properties, and property development, focusing on full industry chain and national expansion - The company's Convention, Exhibition (including Hotel) business, relying on Shoudu Convention & Exhibition, strengthens the expansion of new businesses and technologies in the MICE industry, actively promoting a **full industry chain layout** and becoming a professional operator for the CIFTIS[47](index=47&type=chunk) - Commercial property business, relying on Beijing North Star Commercial Management Co., Ltd., provides professional asset operation and property management services for various asset types, including **office buildings, apartments, and integrated commercial properties**[48](index=48&type=chunk) - Property development business has formed a **multi-regional, multi-level national development layout**, with projects distributed in 15 core cities including Beijing-Tianjin-Hebei, the Yangtze River Economic Belt, Chengdu-Chongqing urban cluster, Hainan Free Trade Port, and the Guangdong-Hong Kong-Macao Greater Bay Area[49](index=49&type=chunk) [(II) Industry Development](index=21&type=section&id=%28II%29%20Industry%20Development) H1 2025 saw China's GDP grow 5.3%, rapid MICE sector development, recovering hotel occupancy, and a stabilizing Beijing office market, with the property market repairing - China's GDP grew by **5.3%** in H1 2025, with the economy operating steadily and showing positive momentum overall[50](index=50&type=chunk) - The **MICE industry** developed rapidly, with expanding market scale, accelerated digital transformation, and significantly enhanced internationalization; hotel occupancy moderately recovered, but average room rates were under pressure[51](index=51&type=chunk) - The **property market** continued its repair trend, with increased policy support from central and local governments, but transaction volume slightly decreased in H1, with commercial residential sales area down **3.7%** YoY and sales value down **5.2%** YoY[52](index=52&type=chunk) Analysis of Core Competencies During the Reporting Period Core competencies include leading convention and exhibition brand influence, integrated property development, and low financing costs from its 'headquarters financing' model - The company leverages nearly **30 years of professional MICE operation and international service experience**, actively building a MICE ecosystem, and organizing major exhibitions such as CIFTIS and China Refrigeration Expo[54](index=54&type=chunk) - MICE venue management scale remains **number one nationwide**, having entered 33 cities and regions through self-owned and asset-light management output models[54](index=54&type=chunk) - The company possesses **integrated property development and operation capabilities**, covering multiple property types, and actively innovates development models, promoting the linkage of "MICE + Property" projects[54](index=54&type=chunk) - Utilizing the advantages of its **"headquarters financing" model**, the company has established strategic partnerships with multiple banks and financial institutions, maintaining relatively **low financing costs**, and actively exploring diversified financing channels such as medium-term notes, corporate bonds, and asset securitization[55](index=55&type=chunk) Discussion and Analysis of Operations This section provides a detailed review of the company's operating performance and strategic initiatives across its business segments [(I) Operating Review](index=23&type=section&id=%28I%29%20Operating%20Review) H1 2025 revenue decreased by 11.97% to RMB 3.019 billion, primarily due to lower property development settlement, leading to significantly expanded losses | Indicator | H1 2025 (RMB tens of thousands) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 301,932.0 | -11.97% | | Loss Before Tax | 160,984.5 | Loss increased by 90,297.3 | | Loss Attributable to Ordinary Shareholders | 164,712.4 | Loss increased by 87,754.4 | | Core Operating Loss from Principal Business (after tax, excluding fair value change loss) | 147,587.7 | Loss increased by 88,945.0 | | Fair Value Change Loss on Investment Properties (after tax) | 17,124.7 | - | | Loss Per Share | 0.4892 RMB | - | [1. Convention, Exhibition (including Hotel) and Commercial Properties](index=24&type=section&id=1.%20Convention%2C%20Exhibition%20%28including%20Hotel%29%20and%20Commercial%20Properties) This segment's revenue rose 18.32% to RMB 1.477 billion, with profit before tax up 1.59%, driven by successful events and expanded management | Indicator | H1 2025 (RMB tens of thousands) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 147,671.4 | +18.32% | | Profit Before Tax | 20,152.6 | +1.59% | - Successfully completed service support for major state and government events, including the **4th Ministerial Meeting of the China-Latin American Forum** and the **10th Annual Meeting of the Asian Infrastructure Investment Bank in 2025**[57](index=57&type=chunk) - Successfully hosted the **29th World Gas Conference** and the **2025 China Refrigeration Expo**, with the World Gas Conference exhibition area exceeding **50,000 square meters** and China Refrigeration Expo reaching **115,000 square meters**, both setting new historical highs[57](index=57&type=chunk) - Self-owned venues and hotels hosted **1,071 exhibitions and events**, a YoY increase of approximately **58.9%**; signed **3 new entrusted management projects** for venues and hotels, and **3 consulting projects**, with management output business now in **33 cities nationwide**[58](index=58&type=chunk) - The **National Convention Center Phase II** and **Shoudu International Convention & Exhibition Center** officially commenced operations, forming a world-class MICE complex and successfully undertaking multiple large-scale conferences and exhibitions[59](index=59&type=chunk) - Promoted the normalized operation of the **Asian Olympic Business District New Consumption Innovation Alliance**, organized "MICE Markets," and developed the "Asian Olympic Consumption Pass" to foster integrated development of "MICE, business, culture, tourism, and sports"[64](index=64&type=chunk) - Actively carried out investment promotion for the **Chaoyang Data Industrial Park**, successfully signing **14 industrial enterprises**, contributing to the construction of Beijing's International Science and Technology Innovation Center[66](index=66&type=chunk) | Project Name | Business Type | Building Area (square meters) | Rental Income (RMB tens of thousands) | | :--- | :--- | :--- | :--- | | National Convention Center | Conference, Exhibition | 270,800 | 20,011 | | Beijing International Convention Center | Conference, Exhibition | 58,000 | 4,039 | | North Star Times Tower | Office Building | 131,300 | 6,972 | | North Star Century Center | Office Building | 149,800 | 9,503 | | Beijing Wuzhou Hotel | Hotel | 42,000 | 5,233 | | North Star Huiyuan Hotel Apartment | Apartment | 184,300 | 12,518 | | Changsha North Star Delta Joy City | Commercial | 100,000 | 6,482 | [2. Property Development](index=33&type=section&id=2.%20Property%20Development) Property development revenue decreased by 29.71% to RMB 1.461 billion, with profit before tax loss widening, due to reduced settlement and lower gross margins | Indicator | H1 2025 | YoY Change | | :--- | :--- | :--- | | Operating Revenue (including parking spaces) | 146,134.4 RMB tens of thousands | -29.71% | | Loss Before Tax | 160,672.3 RMB tens of thousands | Loss increased by 80,538.3 RMB tens of thousands | | Contract Sales Value (including parking spaces) | 2.282 billion RMB | +4.03% | | Sales Area | 174,900 square meters | +15.34% | | Settlement Area | 137,400 square meters | -15.83% | | Settlement Value | 1.461 billion RMB | -29.71% | - The **North Star Hongxiang Villa project** achieved strong initial sales, with cumulative sales of **RMB 480 million**; the **Chongqing North Star Yuelai No. 1 project** achieved sales of **RMB 330 million**[69](index=69&type=chunk) - During the reporting period, the company achieved **1,093,900 square meters** of commenced and resumed construction area, **27,400 square meters** of completed area, and the **A2-1 building of Changsha North Star Delta project** was successfully topped out[69](index=69&type=chunk)[74](index=74&type=chunk) - The company's total land reserve is **3,696,900 square meters**, with equity land reserve of **3,445,800 square meters**, and no new property reserves added[71](index=71&type=chunk) - As of the end of the reporting period, the area pending settlement was **198,287 square meters**[77](index=77&type=chunk) [3. Digital Transformation](index=38&type=section&id=3.%20Digital%20Transformation) Digital transformation integrated marketing across segments and established an asset-operations-finance platform to enhance management efficiency - The company integrated digital marketing capabilities across its **convention, exhibition, commercial property, and property development** segments, forming a unified external digital marketing outlet to enhance resource utilization efficiency and market competitiveness[78](index=78&type=chunk) - Completed the construction of an **asset-operations-finance integrated digital platform**, promoting integrated management of asset management, business operations management, and financial management to improve resource allocation efficiency[78](index=78&type=chunk) [4. Financing Activities](index=39&type=section&id=4.%20Financing%20Activities) Total financing reached RMB 23.69 billion, with average financing cost reduced to 3.66%, ensuring stable operational funding | Indicator | Amount (RMB tens of thousands) | | :--- | :--- | | Total Financing at Period End | 2,368,745 | | Overall Average Financing Cost | 3.66% | | Capitalized Interest Amount | 4,332 | - The company strengthened capital planning, enhanced debt control, maintained a stable interest-bearing debt scale, and continuously optimized its debt structure to reduce funding costs[79](index=79&type=chunk) [(II) Company Development Strategy](index=39&type=section&id=%28II%29%20Company%20Development%20Strategy) Strategy focuses on synergistic development and innovation, advancing convention and exhibition, accelerating property transformation, and enhancing commercial property operations - The **Convention and Exhibition business segment** aims to build an international first-class, domestic leading MICE brand, strengthen the full industry chain layout, fully serve and guarantee state and government events, innovate and enhance the market-oriented operation of CIFTIS, and expand its hosting and organizing business[83](index=83&type=chunk) - The **Commercial Property business segment** aims to build a domestic leading brand in public building and industrial park asset operation and management, deeply promote the innovative development of the Asian Olympic Business District New Consumption Alliance, strengthen asset management, and accelerate the investment promotion and infrastructure construction of industrial parks[84](index=84&type=chunk) - The **Property Development business segment** will focus on the "one core, two wings" strategy, accelerate the disposal of existing projects, with an estimated sales area of **288,200 square meters** and contract sales of **RMB 3.228 billion** in H2, and promote deep synergy of "MICE + Property + Commercial Management"[85](index=85&type=chunk) - **Digital transformation** will actively cultivate new digital businesses, systematically promoting digital transformation around the MICE industry's upstream and downstream service ecosystem, the Asian Olympic urban consumption center business district ecosystem, and the company's various business types[86](index=86&type=chunk) - In terms of **financing and capital expenditure**, the company will strengthen capital planning, innovate financing methods, and enhance debt control, with an estimated fixed asset investment of **RMB 40 million** in H2[87](index=87&type=chunk) Risks the Company May Face This section identifies key risks, including market downturns in the property sector and challenges in talent acquisition and retention [1. Market Risk](index=41&type=section&id=1.%20Market%20Risk) Property market adjustment and subdued buyer confidence may lead to low sales volumes and prices, impacting cash collection efficiency - A sustained downturn in the property market may lead to continued low sales volumes and prices, directly impacting cash collection efficiency and posing risks to the company's operational stability[88](index=88&type=chunk) - The company will select cities and regions with **mature market development, favorable investment environments, and net population inflow**, and is committed to improving its cash collection ratio[88](index=88&type=chunk) [2. Talent Reserve Risk](index=41&type=section&id=2.%20Talent%20Reserve%20Risk) Business expansion increases demand for specialized and senior management talent, posing a significant talent shortage risk - The company faces a significant increase in demand for various talents, especially **specialized and senior management talent**, posing a risk of talent shortage[89](index=89&type=chunk) - The company actively builds a "grand talent" work framework, attracting and gathering talent through "excellent training programs," school-enterprise cooperation, and market-oriented recruitment, while strengthening the cultivation of young management talent[89](index=89&type=chunk) Discussion and Analysis of Financial Performance This section analyzes the company's financial resources and liquidity position, highlighting changes in equity and debt structure [Financial Resources and Liquidity Position](index=42&type=section&id=Financial%20Resources%20and%20Liquidity%20Position) Ordinary shareholders' equity decreased by 10.12% due to period losses, with total bank and other borrowings at RMB 13.361 billion and an asset-liability ratio of 68% - Equity attributable to ordinary shareholders of the Company decreased by **10.12%** compared to December 31, 2024, primarily due to the loss of **RMB 1.647 billion** incurred during the period[90](index=90&type=chunk) | Borrowing Type | Net Amount at Period End (RMB tens of thousands) | | :--- | :--- | | Bank and Other Borrowings (excluding bonds) | 1,336,060.2 | | Five-year Corporate Bonds | 225,571.3 | | Three-year Corporate Bonds | 32,445.5 | | Two-year Corporate Bonds | 87,289.6 | | Five-year Medium-Term Notes | 330,138.3 | | Three-year Medium-Term Notes | 71,382.8 | | Asset-Backed Special Plan Financing | 285,857.0 | | Indicator | June 30, 2025 (RMB tens of thousands) | | :--- | :--- | | Current Assets | 3,419,556.4 | | Current Liabilities | 1,658,038.3 | | Bank Deposits and Cash (excluding restricted bank deposits) | 623,737.7 | | Asset-Liability Ratio | 68% | - The Group's operations are all conducted within **Mainland China** and settled in **RMB**, with no significant foreign exchange fluctuation risk[92](index=92&type=chunk) - As of June 30, 2025, outstanding phased guarantees amounted to **RMB 4.074 billion**, which had no material impact on the financial position[92](index=92&type=chunk) Share Capital and Major Shareholder Holdings This section details the company's share capital structure, major shareholder information, and directors' interests [Share Capital](index=43&type=section&id=Share%20Capital) Total registered share capital was 3,367,020,000 shares as of June 30, 2025, including domestically listed A-shares and overseas listed H-shares | Share Class | Number of Shares | Percentage | | :--- | :--- | :--- | | Domestically Listed A-shares | 2,660,000,000 shares | 79.002% | | Overseas Listed H-shares | 707,020,000 shares | 20.998% | | **Total Registered Share Capital** | **3,367,020,000 shares** | **100%** | [Major Shareholder Holdings](index=43&type=section&id=Major%20Shareholder%20Holdings) Beijing North Star Industrial Group Co., Ltd. was the largest shareholder as of June 30, 2025, holding 35.02% of total share capital | Shareholder Name | Nature of Interest | Capacity | Share Class | Number of Shares Held | Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing North Star Industrial Group Co., Ltd. | Corporate Interest | Beneficial Owner | A-shares | 1,179,122,931 shares | 35.02% | [Directors' Interests](index=43&type=section&id=Directors%27%20Interests) No directors, chief executives, or their associates held registrable interests or short positions in the company's or its associated corporations' securities as of June 30, 2025 - As of June 30, 2025, no directors, chief executives, or their respective associates held any registrable interests or short positions in any shares, underlying shares, or debentures of the company or its associated corporations[95](index=95&type=chunk) Corporate Governance This section outlines the company's commitment to high corporate governance standards, including compliance with codes and the role of the audit committee [Corporate Governance Code](index=43&type=section&id=Corporate%20Governance%20Code) The company fully complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, maintaining high governance standards - The company fully complied with all code provisions of the **Corporate Governance Code** as set out in Appendix C1 of the Listing Rules during the period[96](index=96&type=chunk) [Model Code for Securities Transactions by Directors](index=44&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Model Code, confirming directors and former supervisors complied with its standards during the reporting period - The company has adopted the **Model Code**, and confirmed that its directors and former supervisors have complied with the required standards set out in the Model Code during the reporting period[97](index=97&type=chunk) [Audit Committee](index=44&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, reviews financial reporting and internal controls, and has reviewed the interim results - The Audit Committee is composed of three independent non-executive directors: **Dr. Zhou Yongjian, Mr. Gan Peizhong, and Ms. Qian Aimin**[98](index=98&type=chunk) - The Audit Committee and the Board have reviewed the Group's unaudited interim results for the six months ended June 30, 2025[98](index=98&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=44&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[99](index=99&type=chunk) [Entrusted Deposits and Matured Time Deposits](index=44&type=section&id=Entrusted%20Deposits%20and%20Matured%20Time%20Deposits) No entrusted deposits were held; all cash deposits were in Chinese commercial banks, with no issues retrieving matured bank deposits - The Group had no entrusted deposits placed with Chinese financial institutions, and all cash deposits were held in commercial banks in China[100](index=100&type=chunk) - The Group has not encountered any situations where bank deposits could not be retrieved after maturity[100](index=100&type=chunk) [Employees](index=44&type=section&id=Employees) The company had 5,039 employees as of June 30, 2025, with performance-based remuneration and regular training, but no share option schemes or bonuses - As of June 30, 2025, the company had **5,039 employees**[101](index=101&type=chunk) - The company reviews employee remuneration based on performance and profitability, with total employee wages linked to the company's economic benefits, and no share option schemes or bonuses are provided to employees[101](index=101&type=chunk) - The company regularly provides training to its operating managers in areas such as business management, foreign languages, computer skills, business knowledge, and policy regulations[101](index=101&type=chunk) [Staff Quarters](index=44&type=section&id=Staff%20Quarters) The company did not provide any staff quarters to its employees during the reporting period - The company did not provide any staff quarters to its employees during the period[102](index=102&type=chunk) Significant Events After the Reporting Period No significant events affecting the company occurred after June 30, 2025, as of the announcement date - No significant events affecting the company occurred after June 30, 2025, and up to the date of this announcement[103](index=103&type=chunk) Other Information This section provides details on the publication of the interim report, availability of documents for inspection, and the composition of the Board of Directors [Publication of Interim Report](index=45&type=section&id=Publication%20of%20Interim%20Report) The company's 2025 interim report will be published on the HKEX and company websites in due course - The company's 2025 interim report will be published on the HKEX website and the company's website in due course[104](index=104&type=chunk) [Documents Available for Inspection](index=45&type=section&id=Documents%20Available%20for%20Inspection) The original 2025 interim report, signed by the Chairman, will be available for inspection at the Board of Directors' Office - The original copy of the 2025 interim report, signed by the Chairman, will be available for inspection at the Board of Directors' Office[105](index=105&type=chunk) [Board Composition and Language Discrepancy](index=45&type=section&id=Board%20Composition%20and%20Language%20Discrepancy) The Board comprises eight directors, five executive and three independent non-executive, with the Chinese version prevailing in case of discrepancy - The company's Board of Directors consists of **eight directors**, including Mr. Zhang Jie, Ms. Liang Jie, Mr. Yang Huasen, Ms. Zhang Wenlei, and Mr. Wei Mingqian as executive directors, and Dr. Zhou Yongjian, Mr. Gan Peizhong, and Ms. Qian Aimin as independent non-executive directors[106](index=106&type=chunk) - In case of any discrepancy between the Chinese and English versions of this announcement, the **Chinese version shall prevail**[107](index=107&type=chunk)

中流擊水 奮勇前行 太平洋航運 2025 中期報告 股份代號：2343 #共邁遠途 業務 照片展示從智利的Paqueta Island輪的艦橋上看到的景觀 封面照片展示我們同事工作的模樣、Barrow Island輪在西班牙港口停泊、 以及太平洋航運貨船在紐西蘭裝載原木 封底照片展示我們的船員正在進行救生艇檢查以及我們的Cook Strait輪團隊 業務簡介 我們是乾散貨船船東及營運商，我們的航運業務本着以客戶及貨物為先的宗旨， 以現貨及長期貨運合約，為逾600名工業買家及乾散貨商品貿易商及生產商提 供安全、可靠及具競爭力的貨運服務。太平洋航運於香港上市並於全球營運， 在全球各主要地點設有當地辦事處以及在全球營運一支於世界各地進行貨運 的龐大船隊，為國際貨運客戶提供服務 406 名岸上員工分布於 14 個辦事處 4,300 名船員支援 我們 600+ 名行業客戶的需要 260+ 艘貨船 於2025年上半年完成1,100 次 航程 我們的船隊 我們營運全球最大型的現代化小靈便型及超靈便型乾散貨船船隊之一。我們 配備起重機的乾散貨船靈活通用及可自行裝卸貨物，並有90%以上的時間載 有貨物，主要是非化石燃料商品小宗 ...

( 於中華人民共和國註冊成立的股份有限公司 ) (股份代號：00548) 2025 年半年度業績初步公告 一、 重要提示 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。 1.1 重要提示 | 股票種類 | A 股 | H 股 | | --- | --- | --- | | 股票簡稱 | 深高速 | 深圳高速 | | 股票代碼 | 600548 | 00548 | | 股票上市交易所 | 上交所 | 聯交所 | | 聯繫人和聯繫方式 | 董事會秘書 | 證券事務代表 | | 姓名 | 趙桂萍 | 龔欣、肖蔚 | | 電話 | (86) 755-8669 8069 | (86) 755-8669 8065 | | 傳真 | (86) 755-8669 8002 | | | 電子信箱 | secretary@sz-expressway.com | | 除特別說明外，本公告中之金額幣種為人民幣。 1.2 公司簡介 - 1 - 二、 中期利潤分配方案 董事會建 ...

[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides detailed information about the company's basic registration, board members, key management, auditors, principal bankers, and registered and operational addresses [Board of Directors](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The Board of Directors comprises executive directors Ms. Huang Wei (Chairperson) and Mr. Dou Sheng, and independent non-executive directors Mr. Hu Zijing, Mr. Su Yiquan, and Ms. Zheng Hui, with Ms. Huang Wei also serving as Compliance Officer and Authorized Representative - The Board of Directors includes **2 executive directors** (Ms. Huang Wei as Chairperson) and **3 independent non-executive directors**[3](index=3&type=chunk) [Company Information (Continued)](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99%EF%BC%88%E7%BA%8C%EF%BC%89) The company is registered in the Cayman Islands, with its principal place of business in Hong Kong, and Union Securities Registrars Limited serves as the Hong Kong share registrar - The company is registered in the Cayman Islands, with Hong Kong as its principal place of business[4](index=4&type=chunk) - The company's stock code is **8179**[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the unaudited condensed consolidated statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows for the six months ended June 30, 2025, with comparative figures for 2024 [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company experienced a significant decrease in revenue, leading to a substantial reduction in profit for the period and earnings per share Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 64,368 | 218,804 | -70.58% | | Gross Profit | 8,573 | 48,338 | -82.28% | | Profit Before Tax | 1,397 | 39,135 | -96.43% | | Profit for the Period | 1,032 | 32,818 | -96.85% | | Basic and Diluted Earnings Per Share (HK cents) | 0.05 | 2.73 | -98.17% | [Condensed Consolidated Statement of Financial Position](index=7&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 company's net current assets slightly increased, and total equity remained stable, with inventory as the largest current asset and borrowings as the primary current liability Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 86 | 440 | -80.45% | | Current Assets | 581,866 | 579,730 | +0.37% | | Inventories | 571,071 | 561,570 | +1.69% | | Bank Balances and Cash | 2,613 | 7,298 | -64.20% | | Current Liabilities | 142,384 | 141,621 | +0.54% | | Borrowings | 116,894 | 116,894 | 0.00% | | Total Equity | 439,568 | 438,536 | +0.24% | [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, equity attributable to owners slightly increased due to profit for the period, while the prior period saw a significant increase from profit, foreign currency translation reserve, and share issuance Condensed Consolidated Statement of Changes in Equity | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 439,568 | 422,759 | | Profit for the Period | 1,032 | 32,818 | | Foreign Currency Translation Reserve | 0 | 150 | | Shares Issued under Subscription Agreement | 0 | 23,683 | [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, both operating and investing activities resulted in cash outflows, leading to a significant decrease in cash and cash equivalents at period-end Condensed Consolidated Statement of Cash Flows | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (4,531) | (6,001) | +24.49% (decrease in outflow) | | Net Cash (Used in)/Generated from Investing Activities | (103) | 675 | -115.26% (from inflow to outflow) | | Net Cash (Used in)/Generated from Financing Activities | (51) | 5,417 | -100.94% (from inflow to outflow) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (4,685) | 91 | -5248.35% (from increase to decrease) | | Cash and Cash Equivalents at End of Period | 2,613 | 3,459 | -24.46% | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated financial statements, covering general information, accounting policies, significant estimates, segment information, income and expense components, asset and liability details, and related party transactions [General Information](index=11&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The company was incorporated in the Cayman Islands in 2011 and listed on GEM in the same year, primarily engaged in investment holding, with subsidiaries focused on wine and food product sales and distribution - The company's principal business is investment holding, with subsidiaries engaged in the sale and distribution of **wine products and food products**[14](index=14&type=chunk) [Basis of Preparation](index=11&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, using the historical cost basis and presented in HKD, with no significant impact from new or revised HKFRSs applied this period - The financial statements are prepared on a historical cost basis and presented in **Hong Kong Dollars**[16](index=16&type=chunk) [Going Concern](index=12&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F) As of June 30, 2025, the company reported net cash outflow from operating activities, low bank balances and cash, and overdue bank borrowings and interest payable, indicating significant going concern uncertainty, which management plans to mitigate through negotiation and cost control - As of June 30, 2025, net cash outflow from operating activities was **HKD 4,531 thousand**, and bank balances and cash were **HKD 2,613 thousand**[17](index=17&type=chunk) - Overdue bank borrowings of **HKD 90,000 thousand** and interest payable of **HKD 5,352 thousand** constitute a significant uncertainty to going concern[17](index=17&type=chunk) - The company plans to negotiate with banks for deferral of loan and rental repayments, and strengthen cost control to improve cash flow[18](index=18&type=chunk) [Critical Accounting Estimates and Judgements](index=13&type=section&id=3.%20%E9%87%8D%E8%A6%81%E4%BC%B0%E8%A8%88%E5%8F%8A%E5%88%A4%E6%96%B7) Management must make judgments, estimates, and assumptions affecting accounting policy application and the amounts of assets, liabilities, income, and expenses when preparing financial statements, with key uncertainties consistent with the 2024 annual report - Management makes significant judgments and estimates in preparing financial statements, and actual results may differ from these estimates[19](index=19&type=chunk) [Revenue and Segment Information](index=13&type=section&id=4.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The company is divided into two reportable segments based on goods sold: wine business and food business, with wine business revenue significantly decreasing this period while food business revenue increased - The company's operating segments include **wine business** (sale and distribution of wine products and related by-products) and **food business** (sale and distribution of food and drinking water products)[22](index=22&type=chunk) [Segment Revenue and Results](index=13&type=section&id=%E5%88%86%E9%83%A8%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%A5%AD%E7%B8%BE) For the six months ended June 30, 2025, wine business revenue significantly decreased, leading to a substantial drop in segment profit, while food business revenue and profit both increased Segment Revenue and Results | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | Revenue Change | 2025 Profit (HKD thousands) | 2024 Profit (HKD thousands) | Profit Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wine Business | 63,853 | 218,761 | -70.81% | 8,440 | 45,237 | -81.36% | | Food Business | 515 | 43 | +1097.67% | 133 | 21 | +533.33% | | Total | 64,368 | 218,804 | -70.58% | 8,573 | 45,258 | -81.07% | [Segment Assets and Liabilities](index=14&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%82%B5) As of June 30, 2025, wine business assets and liabilities remained stable, while the food business had a smaller scale of assets and liabilities Segment Assets and Liabilities | Segment | June 30, 2025 Assets (HKD thousands) | December 31, 2024 Assets (HKD thousands) | June 30, 2025 Liabilities (HKD thousands) | December 31, 2024 Liabilities (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Wine Business | 581,158 | 579,366 | 118,234 | 117,901 | | Food Business | 19 | 384 | 33 | 3 | | Total | 581,952 | 580,170 | 142,384 | 141,634 | [Geographical Information](index=15&type=section&id=%E5%9C%B0%E5%8D%80%E8%B3%87%E6%96%99) The Group's operations are primarily located in Hong Kong and Australia, with external customer revenue from Hong Kong significantly decreasing and high customer concentration, while non-current assets are mainly in Hong Kong External Customer Revenue by Region | Region | 2025 External Customer Revenue (HKD thousands) | 2024 External Customer Revenue (HKD thousands) | Revenue Change | | :--- | :--- | :--- | :--- | | Hong Kong | 64,368 | 218,804 | -70.58% | - Approximately **HKD 39,677 thousand** (2024: HKD 128,606 thousand) of revenue was derived from **four major customers**[30](index=30&type=chunk) Non-current Assets by Region | Region | June 30, 2025 Non-current Assets (HKD thousands) | December 31, 2024 Non-current Assets (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 86 | 440 | | Australia | – | – | [Profit Before Tax](index=16&type=section&id=5.%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) For the six months ended June 30, 2025, profit before tax significantly decreased, primarily due to reduced revenue and expenses recognized for inventory costs, while a gain on disposal of a subsidiary was recorded this period Profit Before Tax Components | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Gain on disposal of a subsidiary | 79 | – | N/A | | Employee benefit expenses | 2,081 | 1,847 | +12.67% | | Cost of inventories recognized as an expense | 55,795 | 170,466 | -67.27% | | Depreciation of right-of-use assets | 40 | 927 | -95.69% | [Finance Costs](index=17&type=section&id=6.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs slightly decreased, primarily comprising interest on borrowings and interest on lease liabilities Finance Costs | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Interest on borrowings | 3,460 | 3,742 | -7.54% | | Interest on lease liabilities | 2 | 32 | -93.75% | | Total finance costs | 3,462 | 3,774 | -8.30% | [Income Tax Expense](index=17&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense significantly decreased, mainly due to a reduction in Hong Kong profits tax provision calculated under the two-tiered tax regime Income Tax Expense | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Provision for Hong Kong profits tax | 365 | 6,317 | -94.22% | - The company is **not subject to income tax** in the Cayman Islands and British Virgin Islands[39](index=39&type=chunk) [Earnings Per Share](index=17&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic and diluted earnings per share significantly decreased, consistent with the trend of reduced profit for the period Earnings Per Share | Item | 2025 (HK cents) | 2024 (HK cents) | Change | | :--- | :--- | :--- | :--- | | Basic and diluted earnings per share | 0.05 | 2.73 | -98.17% | - Diluted earnings per share is the same as basic earnings per share as there were **no potential ordinary shares** in issue for both periods[42](index=42&type=chunk) [Dividends](index=18&type=section&id=9.%20%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does **not recommend** the payment of an interim dividend for 2025[43](index=43&type=chunk) [Inventories](index=18&type=section&id=10.%20%E5%AD%98%E8%B2%A8) As of June 30, 2025, the company's inventories, primarily bottled wine, slightly increased, with HKD 300 million of inventory pledged as collateral for bank loans Inventories | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Finished goods (bottled wine) | 571,071 | 561,570 | +1.69% | - **HKD 300,000 thousand** of inventories have been pledged as collateral for bank loans[44](index=44&type=chunk) [Biological Assets](index=19&type=section&id=11.%20%E7%94%9F%E7%89%A9%E8%B3%87%E7%94%A2) As of June 30, 2025, the company no longer held biological assets, primarily due to the disposal of biological assets (grapes) through the sale of a subsidiary in December 2024 Biological Assets | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | At beginning of period/year | – | 187 | | Disposal of a subsidiary | – | (197) | | At end of period/year | – | – | - Biological assets (grapes) were disposed of on **December 16, 2024**, through the sale of a subsidiary[48](index=48&type=chunk) [Trade Receivables, Prepayments, Deposits and Other Receivables](index=20&type=section&id=12.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E3%80%81%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables decreased, and the aging analysis shows all receivables are within 30 days Trade Receivables, Prepayments, Deposits and Other Receivables | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Net trade receivables | 7,725 | 10,270 | -24.88% | | Prepayments, deposits and other receivables | 224 | 352 | -36.36% | | Total | 7,949 | 10,622 | -25.16% | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 30 days | 7,725 | 3,579 | | 31 to 60 days | – | 5,922 | | Over 90 days | – | 769 | - Credit terms granted to customers primarily range from **30 to 120 days**[50](index=50&type=chunk) [Trade Payables, Other Payables, Accrued Charges and Deposits Received](index=21&type=section&id=13.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8%E5%8F%8A%E5%B7%B2%E6%94%B6%E6%8C%89%E9%87%91) As of June 30, 2025, trade payables significantly increased, while other payables, accrued charges, and deposits received decreased Trade Payables, Other Payables, Accrued Charges and Deposits Received | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 17,607 | 11,606 | +51.71% | | Other payables and accrued charges | 1,261 | 8,765 | -85.59% | | Interest payable | 5,983 | 3,175 | +88.46% | | Deposits received | 220 | 778 | -71.72% | | Total | 25,071 | 24,324 | +3.07% | Aging Analysis of Trade Payables | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Within 30 days | 17,607 | 215 | | 31 to 60 days | – | 6,503 | | Over 90 days | – | 4,738 | [Borrowings](index=22&type=section&id=14.%20%E5%80%9F%E8%B2%B8) As of June 30, 2025, total company borrowings remained at HKD 116.9 million, comprising HKD 90 million in secured and overdue bank loans and HKD 26.9 million in unsecured non-financial institution loans, all classified as current liabilities Borrowings | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Bank loans, secured | 90,000 | 90,000 | | Loans from non-financial institutions, unsecured | 26,894 | 26,894 | | Total borrowings | 116,894 | 116,894 | - Bank loans and corresponding interest payable (**HKD 5,352 thousand**) are **overdue**, secured by a floating charge over inventories and a corporate guarantee from the company[56](index=56&type=chunk) - The effective annual interest rate for borrowings ranges from **6.07% to 8.00%**[55](index=55&type=chunk) [Lease Liabilities](index=24&type=section&id=15.%20%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) As of June 30, 2025, lease liabilities significantly decreased and are entirely due within one year Lease Liabilities | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Lease liabilities payable | 54 | 416 | -87.02% | | Within one year | 54 | 403 | -86.59% | | After one year but within two years | – | 13 | -100% | - For the six months ended June 30, 2025, the weighted average incremental borrowing rate for lease liabilities was **2.50% per annum**[57](index=57&type=chunk) [Share Capital](index=25&type=section&id=16.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's issued and fully paid share capital was HKD 190,780 thousand, comprising 1,907,798,274 shares, with new shares issued in 2024 through subscription agreements and rights issues Share Capital | Item | June 30, 2025 (HKD thousands) | January 1, 2024 (HKD thousands) | | :--- | :--- | :--- | | Issued and fully paid share capital | 190,780 | 119,624 | - On June 28, 2024, the company issued **236,832,000 ordinary shares**, with net proceeds used for general working capital and loan repayment[59](index=59&type=chunk) - On November 21, 2024, the company issued **474,729,773 rights shares** on a rights issue basis, raising approximately **HKD 47,482 thousand**[59](index=59&type=chunk) [Disposal of a Subsidiary](index=26&type=section&id=17.%20%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) On May 30, 2025, the company disposed of its entire equity interest in the wholly-owned subsidiary Happy Profit Group for a total cash consideration of USD 1, recording a gain on disposal of HKD 79 thousand - On May 30, 2025, the company disposed of its entire equity interest in the wholly-owned subsidiary Happy Profit Group for a cash consideration of **USD 1**[60](index=60&type=chunk) Financial Impact of Disposal | Item | Amount (HKD thousands) | | :--- | :--- | | Net assets disposed of | 523 | | Gain on disposal | 79 | | Net cash outflow arising from disposal | (91) | [Related Party Transactions](index=27&type=section&id=18.%20%E9%97%9C%E9%80%A3%E6%96%B9%E4%BA%A4%E6%98%93) During the period, the company engaged in transactions with related parties, including rental expenses and key management personnel remuneration Related Party Transactions | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Rental expenses paid to a related company | 468 | 1,008 | -53.57% | | Key management personnel salaries and other benefits | 432 | 432 | 0.00% | | Key management personnel retirement benefit scheme contributions | 13 | 13 | 0.00% | - Rental expenses were paid to a related company owned by the spouse of Ms. Huang Wei, an executive director and substantial shareholder of the company[62](index=62&type=chunk) [Management Discussion and Analysis](index=28&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides a review of the company's interim results for the six months ended June 30, 2025, including business performance, financial position, future outlook, liquidity management, and other significant matters [Business Review](index=28&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In mid-2025, the company's main businesses were the sale and distribution of wine products and related accessories, and food products, with wine business revenue significantly decreasing while food business revenue increased - The company's principal businesses include the **sale and distribution of wine products** and the **sale and distribution of food products**[65](index=65&type=chunk) [Wine Business](index=28&type=section&id=%E8%91%A1%E8%90%84%E9%85%92%E6%A5%AD%E5%8B%99) The wine business remains the largest revenue segment but experienced significant reductions in revenue and segment profit due to a sluggish market and weak customer demand, with declining gross profit margin, as the company actively expands local markets and sales channels Wine Business Performance | Metric | 2025 (HKD millions) | 2024 (HKD millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | 63.9 | 218.8 | -70.80% | | Segment Profit | 8.4 | 45.2 | -81.42% | | Gross Profit Margin | 13.2% | 22.1% | -8.9 percentage points | - The company is actively expanding its local market, including participating in exhibitions, developing sales networks and agencies, and establishing new retail models[66](index=66&type=chunk) [Food Business](index=28&type=section&id=%E9%A3%9F%E5%93%81%E6%A5%AD%E5%8B%99) The food business achieved significant growth in both revenue and profit, and the company will continue to monitor the market and seek potential growth opportunities Food Business Performance | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 515 | 43 | +1097.67% | | Profit | 133 | 21 | +533.33% | [Financial Review](index=29&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In mid-2025, the company's revenue significantly decreased, with a corresponding reduction in cost of sales; employee benefit expenses increased due to higher salaries and activity costs; administrative expenses decreased due to reduced advertising and right-of-use asset depreciation; and finance costs also slightly decreased Financial Performance Summary | Item | 2025 (HKD millions) | 2024 (HKD millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | 64.4 | 218.8 | -154.4 (HKD millions) | | Cost of sales | 55.8 | 170.5 | -67.3% | | Employee benefit expenses | 2.1 | 1.8 | +12.7% | | Administrative expenses | 1.8 | 3.8 | -51.8% | | Finance costs | 3.5 | 3.8 | -8.3% | [Outlook and Prospects](index=30&type=section&id=%E5%B1%95%E6%9C%9B%E5%8F%8A%E5%89%8D%E6%99%AF) Facing domestic and international economic uncertainties, the company will maintain a prudent operating strategy, strictly manage expenses, control inventories, and improve resource efficiency, while continuing to enhance brand awareness through exhibitions and actively seeking growth opportunities in the food market - The company will maintain a prudent operating strategy, strictly manage expenses, control inventories, and improve the efficiency of existing resources[70](index=70&type=chunk) - It will enhance product and brand awareness through participating in exhibitions and actively seek growth and expansion opportunities in the food market[70](index=70&type=chunk) [Liquidity, Financial and Capital Resources](index=30&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E9%87%91%E8%B3%87%E6%BA%90) This section outlines the company's capital structure, cash position, borrowings, gearing ratio, exchange rate risk, capital expenditure, and asset pledges, with the capital structure comprising borrowings, lease liabilities, and equity attributable to owners [Capital Structure](index=30&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The company manages capital to ensure sustainable operations and maximize shareholder returns, with its capital structure including borrowings, lease liabilities, and equity attributable to owners - The company's capital structure comprises **borrowings and lease liabilities** (net of bank balances and cash) and **equity attributable to owners of the company**[71](index=71&type=chunk) [Cash Position](index=30&type=section&id=%E7%8F%BE%E9%87%91%E7%8B%80%E6%B3%81) As of June 30, 2025, the company's bank balances and cash significantly decreased Bank Balances and Cash | Item | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | Change | | :--- | :--- | :--- | :--- | | Bank balances and cash | 2.6 | 7.3 | -64.38% | [Borrowings](index=31&type=section&id=%E5%80%9F%E8%B2%B8) As of June 30, 2025, the company's total borrowings remained at HKD 116.9 million, of which HKD 90 million was utilized bank facilities Borrowings | Item | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Carrying amount of borrowings | 116.9 | 116.9 | | Bank facilities | 90.0 | 90.0 | [Gearing Ratio](index=31&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the company's gearing ratio slightly increased Gearing Ratio | Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing ratio | 26% | 25% | +1 percentage point | [Exchange Rate Risk](index=31&type=section&id=%E5%8C%AF%E5%85%8C%E9%A2%A8%E9%9A%AA) The company's operations are primarily denominated in HKD, with some assets and liabilities denominated in AUD; currently, exchange rate risk is not hedged but managed through close monitoring of foreign exchange fluctuations - The company's operations are primarily denominated in **HKD**, with some assets and liabilities denominated in **AUD**[75](index=75&type=chunk) - Exchange rate risk is currently **not hedged** but managed through close monitoring of foreign exchange fluctuations[76](index=76&type=chunk) [Capital Expenditure and Commitments](index=31&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF%E5%8F%8A%E6%89%BF%E6%93%94) As of June 30, 2025, the company had no significant capital commitments - As of June 30, 2025, the company had **no significant capital commitments**[77](index=77&type=chunk) [Pledge of Assets](index=31&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, approximately HKD 90 million in utilized bank facilities were pledged by a corporate guarantee and a floating charge over inventories - Approximately **HKD 90 million** in utilized bank facilities are secured by a corporate guarantee and a floating charge over inventories[78](index=78&type=chunk) [Contingent Liabilities](index=31&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the company had no other significant contingent liabilities - As of June 30, 2025, the company had **no other significant contingent liabilities**[79](index=79&type=chunk) [Dividends](index=32&type=section&id=%E8%82%A1%E6%81%AF) Dividend details are provided in Note 9 to the interim financial statements, and the Board of Directors does not recommend an interim dividend - Dividend details are set out in **Note 9** to the interim financial statements[80](index=80&type=chunk) [Number of Employees and Remuneration Policy](index=32&type=section&id=%E5%93%A1%E5%B7%A5%E4%BA%BA%E6%95%B8%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the company had approximately 15 employees, offering competitive remuneration and internal training to attract and retain talent Number of Employees | Item | June 30, 2025 | | :--- | :--- | | Number of employees | Approximately 15 | - The company offers competitive remuneration packages and internal training programs, with remuneration packages reviewed regularly[81](index=81&type=chunk) [Use of Proceeds from Share Placements](index=32&type=section&id=%E8%82%A1%E4%BB%BD%E9%85%8D%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) This section details the initial intended use and actual utilization as of December 31, 2024, for proceeds from two share placements (rights issue and subscription agreement) in 2022 and 2024, primarily for loan repayment, business development, and working capital Use of Proceeds from Share Placements | Share Placement Date | Initial Allocation (HKD thousands) | Actual Use (HKD thousands) | Principal Use | | :--- | :--- | :--- | :--- | | July 5, 2022 Rights Issue | 25,900 | 25,900 | Loan repayment, business development, working capital | | June 28, 2024 Subscription | Approximately 23,600 | Used for loan repayment and general working capital | Loan repayment, general working capital | | November 21, 2024 Rights Issue | 47,482 | 47,482 | Loan repayment, working capital | [Material Investments Held, Material Acquisitions or Disposals of Subsidiaries and Affiliated Companies, and Plans for Material Investments or Capital Assets](index=33&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E8%A6%81%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E6%88%96%E5%87%BA%E5%94%AE%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%EF%BC%8C%E4%BB%A5%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E8%A8%88%E5%8A%83) Apart from the disclosed disposal of a subsidiary, the Group held no material investments, made no material acquisitions or disposals of subsidiaries and affiliated companies, and had no plans for material investments or capital assets during mid-2025 - Apart from the disclosed disposal of a subsidiary, the Group had **no other material investments, acquisitions, or disposals** in mid-2025[83](index=83&type=chunk) [Events After Reporting Period](index=33&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) As of the report date, the Group had no significant events after June 30, 2025 - As of the report date, the Group had **no significant events** after June 30, 2025[84](index=84&type=chunk) [Other Information](index=34&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section discloses share interests of directors and chief executives, substantial shareholders, and information on the company's compliance with the Model Code for Securities Transactions by Directors, corporate governance, and audit committee operations [Directors' and Chief Executives' Interests in Shares, Underlying Shares or Debentures of the Company and its Associated Corporations](index=34&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E7%9B%B8%E9%97%9C%E6%B3%95%E5%9C%98%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%20%E4%BB%BD%E6%88%96%E5%82%B5%E5%88%B8%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, Executive Director Ms. Huang Wei held approximately 26.16% of the company's ordinary shares in long positions, with no other directors or chief executives holding share or related share interests Directors' Interests in Shares | Name of Director | Capacity/Nature of Interest | Total Number of Ordinary Shares Held | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Ms. Huang Wei | Beneficial Owner | 499,012,800 | 26.16% | [Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares of the Company](index=35&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, to the knowledge of the company's directors, no other persons held interests or short positions in 5% or more of the company's voting shares, apart from directors and chief executives - Apart from directors and chief executives, no other persons held interests or short positions in **5% or more** of the company's voting shares[86](index=86&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=35&type=section&id=%E8%91%A3%E4%BA%8B%E6%94%B6%E8%B3%BC%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E5%88%B8%E4%B9%8B%E6%AC%8A%E5%88%A9) For the six months ended June 30, 2025, neither the company nor its subsidiaries made any arrangements enabling directors or chief executives to acquire rights to subscribe for company securities - Neither the company nor its subsidiaries made any arrangements enabling directors or chief executives to acquire rights to subscribe for company securities[87](index=87&type=chunk) [Purchase, Sale or Redemption of Shares](index=36&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%E8%82%A1%E4%BB%BD) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares during the reporting period[88](index=88&type=chunk) [Directors' Interests in Competing Business](index=36&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E7%AB%B6%E7%88%AD%E6%80%A7%E6%A5%AD%E5%8B%99%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A) For the six months ended June 30, 2025, no director or their associates held interests in any business that competes or is likely to compete with the Group's business - No director or their associates held interests in any business that competes or is likely to compete with the Group's business[89](index=89&type=chunk) [Model Code for Securities Transactions by Directors](index=36&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E8%A1%8C%E7%82%BA%E5%AE%88%E5%89%87) The company has adopted a model code for directors' securities transactions equivalent to that stipulated in the GEM Listing Rules and confirms all directors complied with the required standards during the review period - The company has adopted a model code for directors' securities transactions and confirms all directors complied with the required standards during the review period[90](index=90&type=chunk) [Corporate Governance Code](index=36&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F%E5%AE%88%E5%89%87) The Board believes the company complied with the code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules for the six months ended June 30, 2025 - The company complied with the code provisions of the Corporate Governance Code set out in **Appendix C1** to the GEM Listing Rules[91](index=91&type=chunk) [Audit Committee](index=37&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, composed of three independent non-executive directors, oversees and reviews the Group's risk management, internal controls, regulatory compliance, and financial statement integrity, and has reviewed the unaudited interim financial statements for this period - The Audit Committee comprises **three independent non-executive directors**, with Mr. Hu Zijing as Chairman[92](index=92&type=chunk) - The Audit Committee has reviewed the **unaudited interim financial statements for 2025** and considers them to comply with applicable accounting standards and GEM Listing Rules[92](index=92&type=chunk)

[Unaudited Interim Results Announcement](index=1&type=section&id=Unaudited%20Interim%20Results%20Announcement) [Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) For the six months ended June 30, 2025, the company's revenue decreased by 22.5% year-on-year to approximately 15.1 million USD, with profit for the period turning from near break-even to a loss of approximately 0.9 million USD, and the Board decided not to declare an interim dividend - Interim Results Summary (For the six months ended June 30, 2025) | Indicator | 2025 (Approx.) | 2024 (Approx.) | Change | | :--- | :--- | :--- | :--- | | Revenue | 15.1 million USD | 19.5 million USD | Down 22.5% | | Profit/(Loss) for the Period | Loss 0.9 million USD | Near break-even | From profit to loss | - The Board of Directors will not declare any interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Interim Financial Information](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Information) [Condensed Consolidated Interim Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue decreased to 15,138 thousand USD, with gross profit of 5,653 thousand USD, resulting in a loss of 920 thousand USD for the period and basic loss per share of 0.06 US cents - Key Data from Condensed Consolidated Interim Statement of Profit or Loss (thousand USD) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 15,138 | 19,539 | | Cost of Sales | (9,485) | (12,576) | | Gross Profit | 5,653 | 6,963 | | Other Income | 432 | 270 | | Selling and Marketing Expenses | (336) | (734) | | General and Administrative Expenses | (6,639) | (6,361) | | Finance Costs | (27) | (33) | | Provision for Trade Receivables | (29) | (31) | | Loss/(Profit) Before Tax | (946) | 74 | | Income Tax Credit/(Expense) | 26 | (50) | | Loss/(Profit) for the Period Attributable to Owners of the Company | (920) | 24 | | Basic Loss/(Earnings) Per Share (US cents) | (0.06) | 0.00 | [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported a loss of 920 thousand USD for the period, which, combined with a 12 thousand USD exchange difference on translation of overseas operations, resulted in a total comprehensive loss of 908 thousand USD attributable to owners of the company - Key Data from Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (thousand USD) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Loss/(Profit) for the Period | (920) | 24 | | Exchange difference on translation of overseas operations | 12 | (10) | | Other comprehensive income for the period | 12 | (10) | | Total comprehensive income for the period attributable to owners of the Company | (908) | 14 | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total non-current assets increased to 2,320 thousand USD, total current assets decreased to 25,666 thousand USD, total current liabilities decreased to 11,730 thousand USD, and net assets were 15,014 thousand USD, a decrease from the end of 2024 - Key Data from Condensed Consolidated Interim Statement of Financial Position (thousand USD) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 2,320 | 1,360 | | Total Current Assets | 25,666 | 28,649 | | Total Current Liabilities | 11,730 | 13,599 | | Net Current Assets | 13,936 | 15,050 | | Total Assets Less Current Liabilities | 16,256 | 16,410 | | Total Non-current Liabilities | 1,242 | 488 | | Net Assets | 15,014 | 15,922 | | Total Equity | 15,014 | 15,922 | [Notes](index=6&type=section&id=Notes) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The Group's condensed consolidated interim financial statements for the six months ended June 30, 2025, are prepared in accordance with HKAS 34 and the disclosure requirements of the Listing Rules, presented in USD, and should be read in conjunction with the annual financial statements - The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Listing Rules issued by the Hong Kong Institute of Certified Public Accountants[7](index=7&type=chunk) - The financial information is presented in **USD** and should be read in conjunction with the annual financial statements for the year ended December 31, 2024[8](index=8&type=chunk) [Changes in Accounting Policies and Disclosures](index=6&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) This period saw the adoption of amendments to HKAS 21 and HKFRS 1, which had no significant impact on the Group's financial position, performance, or disclosures - Amendments to HKAS 21 and HKFRS 1 (Lack of Exchangeability) have been adopted[9](index=9&type=chunk) - These amendments had no significant impact on the Group's financial position, performance, and disclosures in the condensed consolidated interim financial statements for the current and prior periods[9](index=9&type=chunk) [Operating Segment Information](index=6&type=section&id=Operating%20Segment%20Information) The Group's business comprises two reportable operating segments: Trading and Supply Chain Management Services and Cultural and Entertainment, with management assessing segment performance based on adjusted profit/(loss) before tax, and inter-segment transactions conducted at market prices - The Group's business comprises two reportable operating segments: **Trading and Supply Chain Management Services** and **Cultural and Entertainment**[10](index=10&type=chunk)[12](index=12&type=chunk) - Segment performance is measured based on adjusted profit/(loss) before tax, excluding bank interest income, bank borrowing interest, and unallocated corporate expenses[10](index=10&type=chunk) - Inter-segment sales and transfer transactions are conducted with reference to selling prices to third parties at the time[11](index=11&type=chunk) [Segment Revenue and Results](index=7&type=section&id=Segment%20Revenue%20and%20Results) - Segment Revenue and Results (For the six months ended June 30, 2025, thousand USD) | Segment | Revenue from external customers | Segment results | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 6,976 | (635) | | Cultural and Entertainment | 8,162 | 25 | | **Total** | **15,138** | **(610)** | | Bank interest income | | 198 | | Corporate and other unallocated expenses | | (534) | | Loss Before Tax | | (946) | - Segment Revenue and Results (For the six months ended June 30, 2024, thousand USD) | Segment | Revenue from external customers | Segment results | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 8,530 | 129 | | Cultural and Entertainment | 11,009 | 226 | | **Total** | **19,539** | **355** | | Bank interest income | | 194 | | Corporate and other unallocated expenses | | (472) | | Bank borrowing interest | | (3) | | Profit Before Tax | | 74 | [Segment Assets and Liabilities](index=9&type=section&id=Segment%20Assets%20and%20Liabilities) - Segment Assets and Liabilities (As of June 30, 2025, thousand USD) | Segment | Segment Assets | Segment Liabilities | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 11,160 | 4,095 | | Cultural and Entertainment | 16,554 | 4,863 | | **Total** | **27,714** | **8,958** | | Corporate and other unallocated assets | 272 | | | Loan from a shareholder | | 3,856 | | Corporate and other unallocated liabilities | | 158 | | **Total Assets** | **27,986** | | | **Total Liabilities** | | **12,972** | - Segment Assets and Liabilities (As of December 31, 2024, thousand USD) | Segment | Segment Assets | Segment Liabilities | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 13,418 | 5,396 | | Cultural and Entertainment | 16,295 | 4,746 | | **Total** | **29,713** | **10,142** | | Corporate and other unallocated assets | 296 | | | Loan from a shareholder | | 3,856 | | Corporate and other unallocated liabilities | | 89 | | **Total Assets** | **30,009** | | | **Total Liabilities** | | **14,087** | [Revenue](index=10&type=section&id=Revenue) For the six months ended June 30, 2025, total revenue was 15,138 thousand USD, primarily from sales of goods, commission income, and internet value-added services, with the China market contributing the majority, and all revenue recognized at a point in time when goods are transferred/services provided - Revenue Analysis (thousand USD) | Revenue Type | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Sales of goods | 5,427 | 7,295 | | Commission income | 3,613 | 4,114 | | Internet value-added services revenue | 6,098 | 8,130 | | **Total** | **15,138** | **19,539** | [Disaggregated Revenue Information](index=10&type=section&id=Disaggregated%20Revenue%20Information) - Revenue by Type of Goods or Services and Geographical Market (For the six months ended June 30, 2025, thousand USD) | Type of Goods or Services | Trading and Supply Chain Management Services | Cultural and Entertainment | Total | | :--- | :--- | :--- | :--- | | Sales of goods | 3,363 | 2,064 | 5,427 | | Commission income | 3,613 | – | 3,613 | | Internet value-added services revenue | – | 6,098 | 6,098 | | **Subtotal** | **6,976** | **8,162** | **15,138** | | **Geographical Market** | | | | | China | 927 | 8,162 | 9,089 | | Southern Hemisphere | 3,109 | – | 3,109 | | North America | 1,796 | – | 1,796 | | Europe | 625 | – | 625 | | Other | 519 | – | 519 | | **Subtotal** | **6,976** | **8,162** | **15,138** | | **Timing of Revenue Recognition** | | | | | At a point in time when goods are transferred/services provided | 6,976 | 8,162 | 15,138 | - Revenue by Type of Goods or Services and Geographical Market (For the six months ended June 30, 2024, thousand USD) | Type of Goods or Services | Trading and Supply Chain Management Services | Cultural and Entertainment | Total | | :--- | :--- | :--- | :--- | | Sales of goods | 4,416 | 2,879 | 7,295 | | Commission income | 4,114 | – | 4,114 | | Internet value-added services revenue | – | 8,130 | 8,130 | | **Subtotal** | **8,530** | **11,009** | **19,539** | | **Geographical Market** | | | | | China | 1,063 | 11,009 | 12,072 | | Southern Hemisphere | 4,100 | – | 4,100 | | North America | 2,236 | – | 2,236 | | Europe | 513 | – | 513 | | Other | 618 | – | 618 | | **Subtotal** | **8,530** | **11,009** | **19,539** | | **Timing of Revenue Recognition** | | | | | At a point in time when goods are transferred/services provided | 8,530 | 11,009 | 19,539 | [Loss/(Profit) Before Tax](index=11&type=section&id=Loss%2F%28Profit%29%20Before%20Tax) For the six months ended June 30, 2025, the Group recorded a loss before tax of 946 thousand USD, primarily due to higher cost of sales, cost of services, and employee benefit expenses, despite a positive net exchange difference - Components of Loss/(Profit) Before Tax (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 4,562 | 5,708 | | Cost of services provided | 4,923 | 6,868 | | Depreciation of property, plant and equipment | 76 | 69 | | Depreciation of right-of-use assets | 401 | 379 | | Employee benefit expenses | 5,666 | 5,585 | | Loss on disposal of property, plant and equipment | – | 1 | | Net exchange difference | (38) | 69 | [Income Tax](index=12&type=section&id=Income%20Tax) For the six months ended June 30, 2025, the Group recorded an income tax credit of 26 thousand USD, mainly from deferred tax credit of 20 thousand USD and current tax of 23 thousand USD from outside Hong Kong, offset by a net over-provision from prior periods - Hong Kong qualified group entities are subject to tax at **8.25%** on the first **HKD 2,000,000** of assessable profits, with the remainder taxed at **16.5%**[20](index=20&type=chunk) - Total Income Tax Credit/(Expense) (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Current - Hong Kong | – | 19 | | Current - Outside Hong Kong | 23 | 29 | | Net (over-provision)/under-provision from prior periods | (29) | 2 | | Deferred tax | (20) | – | | **Total tax (credit)/expense for the period** | **(26)** | **50** | [Dividends](index=12&type=section&id=Dividends) The Board of Directors decided not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Directors will not declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[21](index=21&type=chunk) [Loss/(Earnings) Per Share](index=12&type=section&id=Loss%2F%28Earnings%29%20Per%20Share) For the six months ended June 30, 2025, basic loss per share was 0.06 US cents, compared to basic earnings per share of 0.00 US cents in the prior year period, primarily due to a loss of 920 thousand USD for the period - Basic loss per share was **0.06 US cents**, calculated based on a loss for the period of **920 thousand USD** and **1,509,592,701** ordinary shares in issue[22](index=22&type=chunk) - The Group had no potentially dilutive ordinary shares in issue for the period ended June 30, 2025[22](index=22&type=chunk) [Property, Plant and Equipment](index=12&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group purchased assets worth 24 thousand USD and recognized no gain or loss from the disposal of assets - Changes in Property, Plant and Equipment (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Purchases of assets | 24 | 41 | | Net book value of assets disposed of | 0 | 1 | | Gain or loss on disposal | 0 | Loss 1 | [Right-of-Use Assets](index=12&type=section&id=Right-of-Use%20Assets) For the six months ended June 30, 2025, the Group recognized 1,331 thousand USD in right-of-use assets and lease liabilities due to new lease agreements, a significant increase from the prior year period - The Group recognized **1,331 thousand USD** in right-of-use assets and lease liabilities due to new lease agreements (2024: **31 thousand USD**)[24](index=24&type=chunk) [Trade Receivables](index=13&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables were 2,680 thousand USD, a decrease from 3,901 thousand USD at the end of 2024, with the provision for doubtful debts increasing to 700 thousand USD, and trade receivables over 90 days closely monitored - Trade Receivables (thousand USD) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gross trade receivables | 3,380 | 4,531 | | Provision for doubtful debts | (700) | (630) | | **Net** | **2,680** | **3,901** | - Ageing Analysis of Trade Receivables (thousand USD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 1,374 | 1,963 | | 31 to 60 days | 460 | 921 | | 61 to 90 days | 221 | 345 | | 91 to 365 days | 711 | 708 | | Over one year | 614 | 594 | | **Total** | **3,380** | **4,531** | [Trade Payables](index=13&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables were 779 thousand USD, a significant decrease from 1,449 thousand USD at the end of 2024, primarily concentrated within 30 days - Ageing Analysis of Trade Payables (thousand USD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 485 | 651 | | 31 to 60 days | 141 | 637 | | 61 to 90 days | 65 | 74 | | 91 to 365 days | 25 | 11 | | Over one year | 63 | 76 | | **Total** | **779** | **1,449** | [Related Party Transactions](index=14&type=section&id=Related%20Party%20Transactions) The Group engaged in two significant related party transactions during the period: an unsecured, interest-free loan from a shareholder and compensation for key management personnel [Loan from a Shareholder](index=14&type=section&id=Loan%20from%20a%20Shareholder) - A loan from a shareholder amounted to **3,856 thousand USD**, unsecured, interest-free, and repayable by May 22, 2026[27](index=27&type=chunk) [Compensation of Key Management Personnel](index=14&type=section&id=Compensation%20of%20Key%20Management%20Personnel) - Key Management Personnel Compensation (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Short-term employee benefits | 616 | 616 | | Employee retirement benefits | 46 | 46 | | **Total** | **662** | **662** | [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=15&type=section&id=Business%20Review) During the reporting period, global economic uncertainties and trade tensions significantly impacted all of the Group's business segments, leading to a 22.5% decrease in total revenue, an 18.8% reduction in gross profit, and a shift from profit to loss for the period [Overview](index=15&type=section&id=Overview) - Total revenue decreased by approximately **22.5%** from approximately **19.5 million USD** to approximately **15.1 million USD**[29](index=29&type=chunk) - Shipments for Trading and Supply Chain Management Services decreased by approximately **14.0%** to approximately **48.1 million USD**, with revenue decreasing by approximately **18.2%** to approximately **7.0 million USD**[29](index=29&type=chunk) - Total revenue from Cultural and Entertainment business decreased by approximately **25.9%** to approximately **8.2 million USD**, primarily due to increased competition, product over-saturation, and suppressed consumer spending[30](index=30&type=chunk) - Gross profit decreased by approximately **18.8%** to approximately **5.7 million USD**, but the gross profit margin increased from approximately **35.6%** to approximately **37.3%**[30](index=30&type=chunk) - Profit for the period turned from near break-even to a loss of approximately **0.9 million USD**, with operating expenses decreasing by approximately **1.8%** (or approximately **7.4%** excluding restructuring costs)[31](index=31&type=chunk) [Segment Analysis](index=16&type=section&id=Segment%20Analysis) - The Group's business includes **Trading and Supply Chain Management Services** and **Cultural and Entertainment** operating segments[32](index=32&type=chunk) [Trading and Supply Chain Management Services](index=16&type=section&id=Trading%20and%20Supply%20Chain%20Management%20Services) - Total shipment volume decreased by approximately **14.0%** to approximately **48.1 million USD**, as customer procurement strategies became more conservative[33](index=33&type=chunk) - The Trading and Supply Chain Management Services segment recorded revenue of approximately **7.0 million USD**, accounting for approximately **46.1%** of the Group's total revenue[37](index=37&type=chunk) [Geographical Analysis](index=16&type=section&id=Geographical%20Analysis) - Total Shipment Value of Trading and Supply Chain Management Services by Region (million USD) | Region | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | North America | 32.4 | 41.7 | | Europe | 11.9 | 9.8 | | Other | 3.8 | 4.4 | | **Total** | **48.1** | **55.9** | - North America shipment volume decreased by approximately **22.3%** to approximately **32.4 million USD**, accounting for approximately **67.4%** of total shipments[35](index=35&type=chunk) - Europe shipment volume increased by approximately **21.4%** to approximately **11.9 million USD**, accounting for approximately **24.7%** of total shipments[36](index=36&type=chunk) - "Other" (primarily Southern Hemisphere) shipment volume decreased by approximately **13.6%** to approximately **3.8 million USD**[37](index=37&type=chunk) [Cultural and Entertainment](index=17&type=section&id=Cultural%20and%20Entertainment) - Revenue from the Cultural and Entertainment segment decreased by approximately **25.9%** from approximately **11.0 million USD** to approximately **8.2 million USD**[37](index=37&type=chunk) - Cultural and Entertainment Segment Revenue Composition (million USD) | Revenue Type | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Online entertainment | 6.1 | 8.1 | | Sales of goods | 2.1 | 2.9 | | **Total** | **8.2** | **11.0** | - Online entertainment revenue decreased by approximately **25.0%** to approximately **6.1 million USD**, and sales of goods contracted by approximately **28.3%** to approximately **2.1 million USD**[38](index=38&type=chunk)[39](index=39&type=chunk) - The decrease in revenue was due to increased competition in online claw machine games, over-saturation in the trendy toy industry, and macroeconomic headwinds suppressing consumer spending[30](index=30&type=chunk)[39](index=39&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) The Group maintains a sound financial position with ample cash and deposits, a current ratio of approximately 2.2, and a zero debt-to-equity ratio; trade receivables are closely monitored and adequately provided for, with net assets of approximately 15.0 million USD [Financial Resources and Liquidity](index=18&type=section&id=Financial%20Resources%20and%20Liquidity) - Deposits and cash and cash equivalents were approximately **21.1 million USD** (consistent with the end of 2024)[40](index=40&type=chunk) - Total bank facilities were approximately **5.1 million USD**, of which approximately **100 thousand USD** was utilized for borrowings[40](index=40&type=chunk) - The current ratio was approximately **2.2** (end of 2024: approximately **2.1**), and the debt-to-equity ratio was **zero**[40](index=40&type=chunk) - Trade receivables were approximately **2.7 million USD** (end of 2024: approximately **3.9 million USD**), with adequate provision made for accounts over 90 days[41](index=41&type=chunk) - Net assets were approximately **15.0 million USD** (end of 2024: approximately **15.9 million USD**)[41](index=41&type=chunk) - The Group had no significant contingent liabilities or guarantees, nor had it pledged any of its assets[42](index=42&type=chunk) [Remuneration Policy and Staff Development Programs](index=18&type=section&id=Remuneration%20Policy%20and%20Staff%20Development%20Programs) As of June 30, 2025, the Group employed 259 staff, with total employee costs of approximately 5.7 million USD, offering competitive remuneration, a share option scheme, and discretionary bonuses to incentivize employees - As of June 30, 2025, the Group employed **259** staff (2024: **264** staff)[43](index=43&type=chunk) - Total employee costs for the review period were approximately **5.7 million USD** (2024: approximately **5.6 million USD**)[43](index=43&type=chunk) - The Group has established competitive remuneration packages, a share option scheme for eligible employees, and discretionary bonuses to incentivize staff[44](index=44&type=chunk) [Prospects](index=19&type=section&id=Prospects) Facing global economic uncertainty, escalating trade barriers, and surging tariffs with the potential return of the Trump administration, the Group anticipates continued challenges in the short term and will actively diversify procurement, expand supply chain networks, broaden product portfolios, implement cost controls, and explore M&A and investment opportunities to navigate these challenges - The global economy faces complex challenges, with escalating trade barriers and surging tariffs, and the situation is expected to remain challenging in the second half of the year[45](index=45&type=chunk) - The Group is actively pursuing diversified procurement models, expanding its supply chain network, broadening its product portfolio, and implementing strict cost controls[45](index=45&type=chunk) - The Cultural and Entertainment segment will expand its online business through new media platforms and influencer collaborations, regularly launch new products, and deepen its design capabilities to develop innovative trendy toy products[46](index=46&type=chunk) - The Group will closely monitor economic developments, adjust strategies, and explore potential M&A and investment opportunities to consolidate and diversify its business[47](index=47&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) [Material Investments, Major Acquisitions or Disposals](index=20&type=section&id=Material%20Investments%2C%20Major%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, the Group had no material investments, major acquisitions, or disposals - The Group had no material investments, major acquisitions, or disposals during the reporting period[48](index=48&type=chunk) [Future Plans for Material Investments](index=20&type=section&id=Future%20Plans%20for%20Material%20Investments) As of the date of this announcement, the Group has no plans for any significant future investments or capital assets - As of the date of this announcement, the Group has no plans for any significant future investments or capital assets[49](index=49&type=chunk) [Events After Reporting Period](index=20&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the end of the reporting period and up to the date of this announcement - No significant events occurred after the end of the reporting period and up to the date of this announcement[50](index=50&type=chunk) [Interim Dividends](index=20&type=section&id=Interim%20Dividends) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[51](index=51&type=chunk) [Purchase, Sale or Redemption of Shares](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Shares) 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[52](index=52&type=chunk) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Company's Audit Committee has reviewed the Group's accounting policies and the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, but this information has not been audited or reviewed by an independent auditor - The Audit Committee has reviewed the Group's accounting policies and the unaudited condensed consolidated interim financial information[53](index=53&type=chunk) - The condensed consolidated interim financial information has not been audited or reviewed by the Company's independent auditor[53](index=53&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) For the period ended June 30, 2025, and up to the date of this announcement, the Company has not yet appointed a Chairman of the Board, but the Board believes this vacancy will not adversely affect the Company and is committed to identifying a suitable candidate - The Company has not yet appointed a Chairman of the Board, in breach of Rule C.2.1 of Appendix C1 to the Listing Rules[54](index=54&type=chunk) - The Board believes that the vacancy of the Chairman will not adversely affect the Company and is committed to identifying and appointing a suitable Chairman[54](index=54&type=chunk) [Standard Code for Securities Transactions](index=21&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted the Standard Code as set out in Appendix C3 to the Listing Rules as the code of conduct for Directors' dealings in company securities and has established written guidelines for employees no less exacting than the Standard Code; all Directors confirmed compliance with the Standard Code during the reporting period, and no employee violations were found - The Company has adopted the Standard Code as set out in Appendix C3 to the Listing Rules as the code of conduct for Directors' dealings in the Company's securities[55](index=55&type=chunk) - All Directors have confirmed compliance with the Standard Code during the reporting period[55](index=55&type=chunk) - The Company has established written guidelines for employees no less exacting than the terms of the Standard Code, and no violations by relevant employees were found[55](index=55&type=chunk) [Publication of Results Announcement and Interim Report](index=21&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This announcement has been published on the Company's website and the Stock Exchange's website, and the interim report will be sent to shareholders upon request and published on the aforementioned websites in due course - This announcement has been published on the Company's website (www.daoheglobal.com.hk) and the Stock Exchange's website (www.hkexnews.hk)[56](index=56&type=chunk) - The Company's 2025 interim report will be sent to shareholders upon request and published on the aforementioned websites in due course[56](index=56&type=chunk) [By Order of the Board](index=21&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Wong Hing Nin, Executive Director and Chief Executive Officer, on behalf of the Board; as of the announcement date, the Board comprises two executive directors and three independent non-executive directors - This announcement is issued by Mr. Wong Hing Nin, Executive Director and Chief Executive Officer, on behalf of the Board[57](index=57&type=chunk) - As of the date of this announcement, the executive directors are Mr. Wong Hing Nin and Mr. Lung Li Ping, and the independent non-executive directors are Mr. Lau Shu Yan, Mr. Cheung Wui Chun, and Ms. Lok Kuen[57](index=57&type=chunk)

KANGLI INTERNATIONAL HOLDINGS LIMITED 香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 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 之 任 何 損 失 承 擔 任 何 責 任。 康 利 國 際 控 股 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股 份 代 號：06890） 截至2025年6月30日止六個月之 中期業績公告 康 利 國 際 控 股 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）欣 然 公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至2025年6月3 0日止六個月之未經審核綜合 業 績，連 同 上 個 財 政 年 度 同 期 之 比 較 數 字 如 下： | 財務表現摘要 | | | | | --- | --- | --- | --- ...