675 K & P International Holdings Limited * | 3 | 81,107,649 | | 89,330,897 | | --- | --- | --- | --- | | | (65,531,557) __________________ | __________________ | (73,478,530) | | | 15,576,092 | | 15,852,367 | | 3 | 1,892,251 | | 2,151,129 | | | - | | (10,635,692) | | | (8,208,706) | | (8,159,568) | | | (14,933,953) | | (11,072,306) | | 4 | (170,951) | | (148,629) | | | __________________ | __________________ | | | 5 | (5,845,267) | | (12,012,699) | | 6 | 863,502 | | 1,203,710 | | | __________________ | ____ ...

[Wanguo Gold Group Limited 2024 Annual Report Supplemental Announcement](index=1&type=section&id=Wanguo%20Gold%20Group%20Limited%202024%20Annual%20Report%20Supplemental%20Announcement) [Announcement Background and Scope](index=1&type=section&id=Announcement%20Background%20and%20Scope) This announcement supplements the 2024 annual report, providing additional details on the 2024 Share Award and Share Option Schemes, with other report content remaining unchanged - This announcement supplements the company's annual report for the year ended December 31, 2024, published on April 28, 2025[3](index=3&type=chunk) - The supplementary content primarily concerns the 2024 Share Award Scheme and the 2024 Share Option Scheme[3](index=3&type=chunk) - All other information in the annual report remains unchanged, except for the details disclosed in this announcement[3](index=3&type=chunk) [2024 Share Award Scheme](index=1&type=section&id=2024%20Share%20Award%20Scheme) Grantees under the 2024 Share Award Scheme may pay a Board-determined consideration for awarded shares within ten business days of the grant date - Grantees may be required to pay the company consideration for accepting the share awards[4](index=4&type=chunk) - Such payment, if any, must be made within **ten business days** from the date of grant[4](index=4&type=chunk) - The payment amount is determined by the Board[4](index=4&type=chunk) [2024 Share Option Scheme](index=1&type=section&id=2024%20Share%20Option%20Scheme) Grantees under the 2024 Share Option Scheme must pay **HK$1.00** to the company within fourteen days for accepting granted options - Grantees are required to pay the company **HK$1.00** as consideration for accepting the share options[4](index=4&type=chunk) - This payment must be completed within **fourteen days** from the date of grant[4](index=4&type=chunk) [Board Composition](index=1&type=section&id=Board%20Composition) The announcement details the Board's composition as of the date of publication, including executive, non-executive, and independent non-executive directors - Executive Directors include Mr. Gao Mingqing (Chairman), Ms. Gao Jinzhu, Mr. Liu Zhichun, and Mr. Wang Guobiao[3](index=3&type=chunk) - The Non-Executive Director is Mr. Wang Renxiang[3](index=3&type=chunk) - Independent Non-Executive Directors include Mr. Zeng Weixiong, Mr. Wang Zhiming, and Mr. Wang Xin[3](index=3&type=chunk)

[Company Overview and Performance Summary](index=1&type=section&id=公司概覽与业绩摘要) This section provides an overview of Archosaur Games Inc., including its corporate information, report scope, and a summary of its financial performance for the six months ended June 30, 2025 [Company Information and Report Scope](index=1&type=section&id=1.1%20公司信息与报告范围) Archosaur Games Inc. released its unaudited interim consolidated results for the six months ended June 30, 2025, reviewed by the audit committee and PwC - The company is Archosaur Games Inc., stock code 9990, incorporated in the Cayman Islands[2](index=2&type=chunk) - The reporting period is the six months ended June 30, 2025, with unaudited results reviewed by the audit committee and independent auditor PwC[3](index=3&type=chunk) [Financial Performance Summary](index=2&type=section&id=1.2%20财务业绩摘要) For the six months ended June 30, 2025, the Group's revenue increased by 44.4% to RMB 634.3 million, operating loss narrowed by 76.1% to RMB 36.8 million, and loss for the period decreased by 91.3% to RMB 11.7 million, with adjusted net loss significantly reduced by 93.6% to RMB 7.7 million Key Financial Indicators for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 634.3 | 439.4 | 44.4% | | Cost of Revenue | (181.5) | (117.7) | 54.2% | | Gross Profit | 452.8 | 321.7 | 40.8% | | Research and Development Expenses | (265.5) | (264.1) | 0.5% | | Selling and Marketing Expenses | (222.3) | (172.7) | 28.7% | | Administrative Expenses | (44.8) | (47.0) | (4.7%) | | Operating Loss | (36.8) | (154.0) | (76.1%) | | Loss for the Period | (11.7) | (134.0) | (91.3%) | | Adjusted Net Loss | (7.7) | (120.4) | (93.6%) | - Revenue significantly increased by **44.4%**, primarily driven by the launch of new games "Dragon Raja: The Gate of Cassell" and "Tafengxing" in mainland China, and the stable performance of "Life Makeover"[4](index=4&type=chunk) - Operating loss and loss for the period significantly narrowed, reflecting improved operational efficiency and contributions from new games[4](index=4&type=chunk) [Management Discussion and Analysis](index=3&type=section&id=管理层讨论与分析) This section reviews the Group's business performance, financial results, liquidity, human resources, foreign exchange risk management, and the utilization of global offering proceeds [Business Review](index=3&type=section&id=2.1%20业务回顾) The Group aims to be a top-tier global game company, focusing on developing multi-genre mobile games, advancing Unreal Engine technology, and applying AI, having launched 24 mobile games in over 170 regions and planning 7 new releases from H2 2025 to 2027 - The company's vision is to become a top-tier global game company, focusing on developing mobile games across genres such as MMORPG, female-oriented, strategy card, and SLG[5](index=5&type=chunk) - Technologically, the company deepens Unreal Engine research to create next-gen 3A-level rendering and explores AI applications in game development, including intelligent NPCs and AIGC integration[5](index=5&type=chunk) - Regarding globalization strategy, the company implements an integrated R&D and operations layout, customizes differentiated strategies for various markets, and deepens localization efforts[5](index=5&type=chunk) [Company Vision and Core Competencies](index=3&type=section&id=2.1.1%20公司愿景与核心竞争力) Archosaur Games aims to be a world-class game company, continuously developing high-quality games across genres to provide global players with excellent online entertainment, leveraging leading R&D capabilities in Unreal Engine technology and AI applications - The company is committed to becoming a top-tier global game company, continuously developing industry-leading, high-quality games across various genres[5](index=5&type=chunk) - Deepening Unreal Engine technology research to build next-generation 3A-level realistic rendering and immersive scene and character experiences[5](index=5&type=chunk) - Exploring AI applications in game development, enhancing game dynamism by embedding intelligent NPCs and combining UGC with AIGC[5](index=5&type=chunk) [Existing Game Performance](index=3&type=section&id=2.1.2%20现有游戏表现) As of the reporting period, the Group has launched 24 mobile games in over 170 global markets, with "Life Makeover" showing significant profit growth and over RMB 2 billion in cumulative global gross billings, "Dragon Raja: The Gate of Cassell" performing well in Hong Kong, Macau, and Taiwan and growing MAU/DAU in mainland China, and "Tafengxing" topping the iOS free chart upon launch - As of the announcement date, the company has launched **24 mobile games** in over **170 regional markets**, supporting **14 languages**[6](index=6&type=chunk) [Life Makeover](index=3&type=section&id=2.1.2.1%20《以闪亮之名》) "Life Makeover," a highly customizable fashion-oriented mobile game, achieved significant year-on-year and quarter-on-quarter profit growth in H1 2025, with cumulative global gross billings exceeding RMB 2 billion, driven by global endorsements, AI-powered emotional companionship, high-quality updates, and collaborations, leading to peak summer average DAU - "Life Makeover" achieved significant year-on-year and quarter-on-quarter profit growth in H1 2025[7](index=7&type=chunk) - The game launched its global ambassador pet, Lychee Meow, leveraging large language models to provide warm emotional companionship to players[7](index=7&type=chunk) - In mainland China, the average DAU in H1 2025 surpassed the average DAU of 2024 and 2023, with the summer average DAU reaching its peak for 2025[7](index=7&type=chunk) - As of the date of this performance announcement, "Life Makeover"'s cumulative global gross billings exceeded **RMB 2 billion**[7](index=7&type=chunk) [Dragon Raja: The Gate of Cassell](index=4&type=section&id=2.1.2.2%20《龙族：卡塞爾之門》) "Dragon Raja: The Gate of Cassell," an Unreal Engine 4 strategy card game, topped the iOS free game chart and entered the top-selling ranks after its April 2025 launch in Hong Kong, Macau, and Taiwan, showing significant MAU and DAU growth in mainland China during summer, with its August 1st DAU and new user scale reaching a 2025 peak, and also ranking top three on iOS free chart in Thailand on its launch day - "Dragon Raja: The Gate of Cassell" launched in Hong Kong, Macau, and Taiwan in April 2025, topping the iOS free game chart during its pre-download phase[8](index=8&type=chunk) - The game's MAU and average DAU in mainland China during summer significantly increased compared to H1 2025, with August 1st's single-day DAU and new user scale reaching a 2025 peak[8](index=8&type=chunk) - The product entered the top three on the iOS free game chart on its launch day in Thailand[8](index=8&type=chunk) [Other Mature Games](index=4&type=section&id=2.1.2.3%20其他成熟期游戏) "Tafengxing" launched in mainland China in May 2025, topping the iOS free game chart on its pre-download day. Mature games like "Dragon Raja" (over 6 years in operation) and "Fantasy Zhu Xian" (over 8 years) showed stable performance, with "Fantasy Zhu Xian" achieving positive growth in gross billings and new users in H1 2025, demonstrating long-term vitality - "Tafengxing" officially launched in mainland China on May 16, 2025, topping the iOS free game chart on its pre-download day[9](index=9&type=chunk) - "Fantasy Zhu Xian" achieved positive growth in gross billings and new users in H1 2025, demonstrating the long-term vitality of turn-based MMORPG games[9](index=9&type=chunk) - The company continues to invest in and maintain several classic games, including "Homeland of Glory" and "Jade Dynasty," ensuring their stable performance and revenue contribution[9](index=9&type=chunk) [Game Product Pipeline](index=5&type=section&id=2.1.3%20游戏产品储备) To build a diversified game portfolio, the Group plans to launch 7 new games of various genres globally from H2 2025 to 2027, including strategy card, female-oriented, idle RPG, MMORPG, and action-shooter titles, with "Dragon Raja: The Gate of Cassell" and "Life Makeover" expanding to Southeast Asia and Korea, alongside original and licensed IP projects - The company expects to launch **7 new game products** of various genres globally between H2 2025 and 2027[10](index=10&type=chunk) Game Product Pipeline Overview (2025-2027) | Name | Type | IP Source | Development Stage | Expected Launch Year | Primary Markets | | :--- | :--- | :--- | :--- | :--- | :--- | | **2025** | | | | | | | Dragon Raja: The Gate of Cassell | Strategy Card Game | Licensed IP | Game Testing | 2025 | Southeast Asia | | Life Makeover | Female-Oriented | Original IP | Game Testing | 2025 | Korea | | **2026** | | | | | | | Dragon Raja: The Gate of Cassell | Strategy Card Game | Licensed IP | Game Testing | 2026 | Japan, Korea, and other global regions | | Tafengxing | Idle RPG | Original IP | Game Testing | 2026 | Asia (excluding mainland China) | | Project Code: Xiaoyao | MMORPG | Original IP | Game Production | 2026 | Mainland China | | Project K | Female-Oriented Game | Original IP | Game Production | 2026 | Global | | **2027** | | | | | | | Project G | Strategy Card Game | Licensed IP | Game Production | 2027 | Global | | Project Code: One | Action Shooter Game | Original IP | Game Proposal | 2027 | Global | - The product pipeline includes diverse game genres such as strategy card, female-oriented, idle RPG, MMORPG, and action-shooter, covering both original and licensed IPs[11](index=11&type=chunk) [Financial Review](index=6&type=section&id=2.2%20财务回顾) For the six months ended June 30, 2025, the Group's revenue grew by 44.4% to RMB 634.3 million, driven by new game launches and "Life Makeover"'s stable performance, with integrated game publishing and operations revenue up 53.8% and mainland China revenue up 68.3%. Gross margin remained stable at 71.4%, while operating expenses saw a 28.7% increase in sales and marketing due to new game promotions, with R&D and administrative expenses effectively controlled. Loss for the period and adjusted net loss significantly narrowed, primarily due to revenue growth and net foreign exchange gains - Revenue for the reporting period was **RMB 634.3 million**, an increase of **44.4%** compared to the same period in 2024, primarily due to the launch of "Dragon Raja: The Gate of Cassell" and "Tafengxing" in mainland China, and the continued stable performance of "Life Makeover"[14](index=14&type=chunk) - Future product type expansion and the refinement of the "integrated R&D and operations" model are expected to further extend game lifecycles and contribute more stable and sustainable revenue[14](index=14&type=chunk) [Revenue Analysis](index=6&type=section&id=2.2.1%20收益分析) For the six months ended June 30, 2025, the Group's total revenue was RMB 634.3 million, a 44.4% year-on-year increase, with integrated game publishing and operations revenue growing 53.8% to RMB 579.0 million, accounting for 91.3% of total revenue. Mainland China revenue increased by 68.3% to RMB 511.7 million, representing 80.7% of total revenue, while revenue from outside mainland China slightly decreased Revenue Breakdown by Business Segment | Business Segment | 2025 (RMB Million) | Percentage of Total Revenue | 2024 (RMB Million) | Percentage of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Development and Licensing | 55.1 | 8.7% | 62.0 | 14.1% | | Integrated Game Publishing and Operations | 579.0 | 91.3% | 376.5 | 85.7% | | Others | 0.2 | 0.0% | 0.9 | 0.2% | | **Total** | **634.3** | **100.0%** | **439.4** | **100.0%** | Revenue Breakdown by Geographical Location | Geographical Location | 2025 (RMB Million) | Percentage of Total Revenue | 2024 (RMB Million) | Percentage of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 511.7 | 80.7% | 304.0 | 69.2% | | Outside Mainland China | 122.6 | 19.3% | 135.4 | 30.8% | | **Total** | **634.3** | **100.0%** | **439.4** | **100.0%** | - The increase in total revenue was primarily due to the launch of "Dragon Raja: The Gate of Cassell" and "Tafengxing" in mainland China, and the continued stable performance of "Life Makeover"[18](index=18&type=chunk) [Cost of Revenue and Gross Profit](index=7&type=section&id=2.2.2%20收益成本与毛利) For the six months ended June 30, 2025, cost of revenue increased by 54.2% year-on-year to RMB 181.5 million, consistent with the growth in integrated game publishing and operations revenue. Gross profit increased by 40.8% to RMB 452.8 million, with gross margin slightly decreasing from 73.2% in the same period of 2024 to 71.4%, but remaining largely stable Cost of Revenue Breakdown | Cost of Revenue Nature | 2025 (RMB Million) | Percentage of Cost of Revenue | 2024 (RMB Million) | Percentage of Cost of Revenue | | :--- | :--- | :--- | :--- | :--- | | Commissions to Distribution and Payment Channels | 135.2 | 74.5% | 86.4 | 73.4% | | Commissions to IP Holders | 19.9 | 11.0% | 9.6 | 8.2% | | Bandwidth and Server Hosting Fees | 13.3 | 7.3% | 11.8 | 10.0% | | Employee Benefits Expenses | 6.4 | 3.5% | 6.2 | 5.3% | | Depreciation and Amortization Expenses | 3.7 | 2.0% | 1.2 | 1.0% | | Others | 3.0 | 1.7% | 2.5 | 2.1% | | **Total** | **181.5** | **100.0%** | **117.7** | **100.0%** | - Gross profit increased by **40.8%** to **RMB 452.8 million**, primarily driven by increased revenue[21](index=21&type=chunk) - Gross margin decreased from **73.2%** to **71.4%**, remaining largely consistent with the comparable period[21](index=21&type=chunk) [Operating Expenses](index=8&type=section&id=2.2.3%20运营开支) For the six months ended June 30, 2025, R&D expenses slightly increased by 0.5% year-on-year to RMB 265.5 million, mainly due to effective control over employee benefits. Sales and marketing expenses increased by 28.7% to RMB 222.3 million, primarily due to the launch of "Tafengxing" and ongoing promotion of "Dragon Raja: The Gate of Cassell." Administrative expenses decreased by 4.7% to RMB 44.8 million, reflecting effective cost control - R&D expenses slightly increased by **0.5%** to **RMB 265.5 million**, primarily due to continuous control over employee benefits[22](index=22&type=chunk) - Sales and marketing expenses increased by **28.7%** to **RMB 222.3 million**, mainly impacted by the launch of "Tafengxing" and promotional expenses for "Dragon Raja: The Gate of Cassell," partially offset by reduced advertising expenses for "Life Makeover"[23](index=23&type=chunk) - Administrative expenses decreased by **4.7%** to **RMB 44.8 million**, primarily attributable to cost control[24](index=24&type=chunk) [Other Income and Net Gains](index=9&type=section&id=2.2.4%20其他收入与收益净额) For the six months ended June 30, 2025, other income increased by 135.3% year-on-year to RMB 4.0 million, primarily from interest income on financial assets measured at amortized cost. Other net gains significantly increased by 934.2% year-on-year to RMB 39.3 million, mainly due to net foreign exchange gains - Other income increased by **135.3%** to **RMB 4.0 million**, primarily from interest income on financial assets, partially offset by reduced government grants[25](index=25&type=chunk) - Other net gains significantly increased by **934.2%** to **RMB 39.3 million**, primarily due to net foreign exchange gains[26](index=26&type=chunk) [Net Finance Income](index=9&type=section&id=2.2.5%20财务收入净额) For the six months ended June 30, 2025, net finance income was RMB 23.7 million, a slight decrease of 3.7% from RMB 24.6 million in the same period of 2024, remaining relatively stable during the comparable period - Net finance income was **RMB 23.7 million**, a year-on-year decrease of **3.7%**, remaining relatively stable[27](index=27&type=chunk) [Income Tax Expense](index=9&type=section&id=2.2.6%20所得税开支) For the six months ended June 30, 2025, total income tax expense was RMB 1.6 million, an increase of 45.5% from RMB 1.1 million in the same period of 2024, primarily due to the partial utilization of deferred tax assets related to promotion and advertising expenses from prior periods - Total income tax expense was **RMB 1.6 million**, a year-on-year increase of **45.5%**, primarily due to the partial utilization of deferred tax assets[28](index=28&type=chunk) [Adjusted Net Loss (Non-IFRS Measure)](index=9&type=section&id=2.2.7%20经调整亏损净额%20(非IFRS指标)) For the six months ended June 30, 2025, adjusted net loss was RMB 7.7 million, a significant reduction of 93.6% from RMB 120.4 million in the same period of 2024. The reduced loss was primarily due to increased revenue from new game launches and the stable performance of "Life Makeover," along with net foreign exchange gains, partially offset by increased promotion and advertising expenses - Adjusted net loss was **RMB 7.7 million**, a significant year-on-year decrease of **93.6%**[29](index=29&type=chunk) - The reduction in loss was primarily attributable to increased revenue driven by new game launches and the stable performance of "Life Makeover," as well as net foreign exchange gains[29](index=29&type=chunk) Reconciliation of Loss for the Period to Adjusted Net Loss for the Period | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | | :--- | :--- | :--- | | Loss for the Period | (11.7) | (134.0) | | Add back: Share-based Payment Expenses | 4.0 | 13.6 | | **Adjusted Net Loss for the Period** | **(7.7)** | **(120.4)** | [Liquidity and Financial Resources](index=10&type=section&id=2.3%20流动资金及财务资源) The Group maintains a prudent financial management policy, with the Board deeming working capital sufficient. For the six months ended June 30, 2025, net cash used in operating activities decreased by 47.1% to RMB 36.1 million, net cash used in investing activities was RMB 117.7 million, primarily due to increased purchases of time deposits. Net cash used in financing activities decreased by 62.8% to RMB 16.2 million. The gearing ratio slightly increased to 23.7%. The company holds significant investments in Morgan Stanley Asia's wealth management products to enhance returns - The Board believes the Group has sufficient working capital to meet current operational needs[32](index=32&type=chunk) [Cash Flows](index=11&type=section&id=2.3.1%20现金流量) For the six months ended June 30, 2025, net cash used in operating activities was RMB 36.1 million, a 47.1% year-on-year decrease, primarily due to increased cash inflows from game operations. Net cash used in investing activities was RMB 117.7 million, compared to net cash generated in the prior period, mainly due to increased purchases of time deposits. Net cash used in financing activities decreased by 62.8% to RMB 16.2 million, primarily due to payments to stockbrokers in prior periods Cash Flow Overview | Cash Flow Activity | 2025 (RMB Million) | 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (36.1) | (68.3) | (47.1%) | | Net Cash (Used in) / Generated from Investing Activities | (117.7) | 112.7 | (204.4%) | | Net Cash Used in Financing Activities | (16.2) | (43.5) | (62.8%) | | Net (Decrease) / Increase in Cash and Cash Equivalents | (170.0) | 0.9 | (18988.9%) | | Cash and Cash Equivalents at End of Period | 261.7 | 558.5 | (53.1%) | - Net cash used in operating activities decreased by **47.1%**, primarily due to increased cash inflows from game operations[34](index=34&type=chunk) - Investing activities shifted from net cash generated to net cash used, primarily due to increased purchases of time deposits during the reporting period[35](index=35&type=chunk) [Gearing Ratio](index=11&type=section&id=2.3.2%20资产负债比率) As of June 30, 2025, the Group's gearing ratio (total liabilities divided by total assets) was 23.7%, an increase from 19.0% as of December 31, 2024 - The gearing ratio increased from **19.0%** as of December 31, 2024, to **23.7%** as of June 30, 2025[37](index=37&type=chunk) [Capital Expenditure](index=12&type=section&id=2.3.3%20资本开支) For the six months ended June 30, 2025, total capital expenditure was RMB 4.4 million, a 72.5% decrease from RMB 16.0 million in the same period of 2024, primarily due to reduced payments for intangible asset purchases - Total capital expenditure was **RMB 4.4 million**, a year-on-year decrease of **72.5%**, primarily due to reduced payments for intangible asset purchases[38](index=38&type=chunk) [Significant Investments](index=12&type=section&id=2.3.4%20重大投资) The Group holds significant investments in Morgan Stanley Asia's financial products, including callable step-up fixed coupon notes and US Treasury Notes, with a total carrying value of approximately RMB 144.1 million, representing 5.3% of total assets. These investments aim to enhance capital returns while ensuring fund safety and liquidity, without impacting daily operations or core business development Overview of Significant Investments (As of June 30, 2025) | Investment Name | Product Nature | Cost (RMB Million) | Carrying Value (RMB Million) | Expected Annualized Return | Percentage of Total Group Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | Morgan Stanley Asia Callable Step-Up Fixed Coupon Notes | Fixed Rate Notes | 70.1 | 71.8 | Year 1: 5.68%, decreasing annually | 2.6% | | US TREASURY NOTE | US Treasury Note | 72.0 | 72.3 | 4.43% | 2.7% | | **Total** | | **142.1** | **144.1** | | **5.3%** | - The Board believes that the reasonable and effective use of temporary idle funds will enhance capital returns, aligning with the company's core objective of ensuring fund safety and liquidity[41](index=41&type=chunk) [Significant Acquisitions, Disposals, and Contingent Liabilities](index=13&type=section&id=2.3.5%20重大收并购及或然负债) For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures. Additionally, as of the end of the reporting period, the Group faced no significant unrecorded contingent liabilities and had no pledged property, plant, and equipment - For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[43](index=43&type=chunk) - As of June 30, 2025, the Group faced no significant unrecorded contingent liabilities[45](index=45&type=chunk) - As of June 30, 2025, no property, plant, and equipment were pledged[44](index=44&type=chunk) [Employees and Remuneration](index=14&type=section&id=2.4%20员工与薪酬) As of June 30, 2025, the Group employed approximately 1,052 full-time staff, with about 76.0% in R&D, and employee remuneration and benefits costs totaled approximately RMB 276.4 million. The company is committed to a competitive and fair compensation environment, incentivizing employees through performance evaluations, quarterly selections, base salaries, performance bonuses, year-end bonuses, and share-based incentive plans, while also providing social security and regular professional training - As of June 30, 2025, the company employed approximately **1,052 full-time staff**, with about **76.0%** being R&D personnel[46](index=46&type=chunk) - For the six months ended June 30, 2025, employee remuneration and benefits costs were approximately **RMB 276.4 million**[46](index=46&type=chunk) - The company incentivizes employees through market research, performance evaluations, quarterly selections, base salaries, performance bonuses, year-end bonuses, and share-based remuneration plans (Restricted Share Unit Scheme, Share Option Scheme)[46](index=46&type=chunk) - The company provides regular professional training to employees, covering general management, project execution, and technical knowledge, to help them stay updated on industry developments[47](index=47&type=chunk) [Foreign Currency Exchange Risk](index=14&type=section&id=2.5%20外币汇兑风险) For the six months ended June 30, 2025, most of the Group's transactions and cash equivalents were denominated in RMB, USD, and HKD. The management team closely monitors foreign currency exchange risk, incurred no significant foreign currency exchange losses, and will continue to monitor and consider prudent measures - Most of the Group's transactions and cash equivalents are denominated in RMB, USD, and HKD[48](index=48&type=chunk) - For the six months ended June 30, 2025, the Group incurred no significant foreign currency exchange losses in its operations[48](index=48&type=chunk) [Use of Net Proceeds from Global Offering](index=14&type=section&id=2.6%20全球发售所得款项净额用途) From the listing date to June 30, 2025, approximately HKD 2,112.4 million of the HKD 2,358.5 million net proceeds from the global offering has been utilized. Funds for enhancing development capabilities, expanding game publishing and operations, enlarging IP reserves, and working capital have been fully used. The timetable for utilizing the remaining net proceeds of HKD 246.1 million for strategic acquisitions and investments in the industry value chain has been postponed to December 2026 - The net proceeds from the global offering amounted to approximately **HKD 2,358.5 million**[49](index=49&type=chunk) - As of June 30, 2025, approximately **HKD 2,112.4 million** has been utilized, with **HKD 246.1 million** remaining[50](index=50&type=chunk) Use of Net Proceeds from Global Offering and Utilization Status | Purpose | Percentage | Net Proceeds (HKD Million) | Amount Utilized (HKD Million) | Amount Unutilized (HKD Million) | Expected Timeline for Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance development capabilities and technology, expand game portfolio | 40% | 943.5 | 943.5 | – | – | | Expand game publishing and operations business | 20% | 471.7 | 471.7 | – | – | | Fund strategic acquisitions and investments in pan-entertainment/TMT funds | 20% | 471.7 | 225.6 | 246.1 | July 2025 to December 2026 | | Expand IP reserves and enrich content supply | 10% | 235.8 | 235.8 | – | – | | Working capital and general corporate purposes | 10% | 235.8 | 235.8 | – | – | | **Total** | **100%** | **2,358.5** | **2,112.4** | **246.1** | | - The timetable for utilizing the remaining net proceeds for strategic acquisitions and investments has been postponed to **December 2026**[51](index=51&type=chunk) [Corporate Governance and Compliance](index=16&type=section&id=公司治理与合规) This section outlines the Group's adherence to corporate governance standards, including post-reporting events, compliance with the Corporate Governance Code, directors' securities dealings, audit committee activities, share repurchases, dividend policy, and report publication [Events After Reporting Period](index=16&type=section&id=3.1%20报告期后事项) The Group had no significant events after the reporting period - The Group had no significant events after the reporting period[53](index=53&type=chunk) [Compliance with Corporate Governance Code](index=16&type=section&id=3.2%20企业管治守则遵守情况) For the six months ended June 30, 2025, the company complied with all applicable code provisions of the Corporate Governance Code, except for code provision C.2.1 (separation of roles of chairman and chief executive). Mr. Li Qing serves as both Chairman and CEO, an arrangement the Board believes benefits Group management, with an independent board composition providing effective checks and balances - The company has complied with all applicable code provisions set out in Part 2 of the Corporate Governance Code, with the exception of a deviation from code provision C.2.1 (separation of roles of chairman and chief executive)[54](index=54&type=chunk) - Mr. Li Qing serves concurrently as Chairman and Chief Executive Officer, an arrangement the Board believes benefits Group management, with an independent board composition providing effective checks and balances on his power[54](index=54&type=chunk) [Standard Securities Dealing Code for Directors](index=16&type=section&id=3.3%20董事证券交易标准守则) The company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than those in the Model Code. Following inquiry, all directors confirmed compliance with the Model Code for the six months ended June 30, 2025 - The company has adopted a code of conduct for directors' securities transactions, and all directors confirmed compliance with the Model Code during the reporting period[55](index=55&type=chunk) [Audit Committee](index=17&type=section&id=3.4%20审核委员会) The company has established an Audit Committee, comprising three members with Mr. Zhu Lin as Chairman. The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial information and this results announcement for the six months ended June 30, 2025, and raised no objections to the accounting treatments - The Audit Committee comprises **three members**, with Mr. Zhu Lin as Chairman[56](index=56&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial information and this results announcement for the six months ended June 30, 2025, and raised no objections to the accounting treatments[56](index=56&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=17&type=section&id=3.5%20购买、出售或赎回上市证券) For the six months ended June 30, 2025, the company repurchased a total of 817,000 shares on the Stock Exchange for a total consideration of HKD 971,100, a move the Board believes enhances the Group's net worth and return on equity. All repurchased shares remain uncancelled. Other than this, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period - The company repurchased a total of **817,000 shares** on the Stock Exchange for a total consideration of **HKD 971,100**[57](index=57&type=chunk) - The Board believes that the share repurchases can enhance the Group's net worth and improve return on equity[57](index=57&type=chunk) - As of June 30, 2025, all repurchased shares remain uncancelled[57](index=57&type=chunk) [Interim Dividend](index=17&type=section&id=3.6%20中期股息) The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[59](index=59&type=chunk) [Publication of Announcement and Report](index=17&type=section&id=3.7%20公告及报告刊发) This results announcement has been published on the company's website and the HKEX website. The company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the aforementioned websites in due course - This results announcement has been published on the company's website (www.zulong.com) and the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk)[60](index=60&type=chunk) [Interim Condensed Consolidated Financial Statements](index=18&type=section&id=中期简明综合财务报表) This section presents the Group's interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, financial position, and cash flows [Consolidated Statement of Profit or Loss](index=18&type=section&id=4.1%20综合损益表) For the six months ended June 30, 2025, the Group's revenue was RMB 634,366 thousand, and gross profit was RMB 452,821 thousand. Operating loss significantly narrowed to RMB 36,761 thousand, with loss for the period at RMB 11,730 thousand. Both basic and diluted loss per share were RMB 0.01 Interim Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 634,366 | 439,432 | | Cost of Revenue | (181,545) | (117,686) | | Gross Profit | 452,821 | 321,746 | | Research and Development Expenses | (265,481) | (264,104) | | Selling and Marketing Expenses | (222,313) | (172,711) | | Administrative Expenses | (44,748) | (47,009) | | Operating Loss | (36,761) | (153,969) | | Net Finance Income | 23,642 | 24,571 | | Loss Before Income Tax | (10,097) | (132,881) | | Income Tax Expense | (1,633) | (1,160) | | Loss for the Period | (11,730) | (134,041) | | Basic Loss Per Share (RMB) | (0.01) | (0.17) | | Diluted Loss Per Share (RMB) | (0.01) | (0.17) | [Consolidated Statement of Comprehensive Income](index=19&type=section&id=4.2%20综合全面收益表) For the six months ended June 30, 2025, the Group's loss for the period was RMB 11,730 thousand. Other comprehensive loss primarily included currency translation differences, resulting in a total comprehensive loss for the period of RMB 45,370 thousand, a significant narrowing from RMB 116,623 thousand in the prior year Interim Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Loss for the Period | (11,730) | (134,041) | | Other Comprehensive (Loss) / Income (Net of Tax): | | | | Items that may be reclassified to profit or loss: Currency translation differences | (2,484) | 3,145 | | Items that will not be reclassified to profit or loss: Currency translation differences | (31,156) | 14,273 | | **Total Comprehensive Loss for the Period** | **(45,370)** | **(116,623)** | [Consolidated Statement of Financial Position](index=20&type=section&id=4.3%20综合资产负债表) As of June 30, 2025, the Group's total assets were RMB 2,704,346 thousand, an increase from December 31, 2024. Right-of-use assets within non-current assets significantly increased. Among current assets, time deposits and financial assets at fair value through profit or loss increased, while cash and cash equivalents decreased. Total liabilities rose to RMB 641,315 thousand, primarily due to an increase in non-current lease liabilities Interim Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 875,849 | 776,281 | | Current Assets | 1,828,497 | 1,822,079 | | **Total Assets** | **2,704,346** | **2,598,360** | | **Equity and Liabilities** | | | | Equity Attributable to Owners of the Company | 2,063,031 | 2,105,284 | | Non-current Liabilities | 137,339 | 26,718 | | Current Liabilities | 503,976 | 466,358 | | **Total Liabilities** | **641,315** | **493,076** | | **Total Equity and Total Liabilities** | **2,704,346** | **2,598,360** | - Right-of-use assets within non-current assets significantly increased from **RMB 18,361 thousand** to **RMB 141,304 thousand**[63](index=63&type=chunk) - Cash and cash equivalents within current assets decreased from **RMB 433,689 thousand** to **RMB 261,653 thousand**[63](index=63&type=chunk) - Non-current liabilities significantly increased from **RMB 26,718 thousand** to **RMB 137,339 thousand**, primarily due to an increase in lease liabilities[64](index=64&type=chunk) [Consolidated Statement of Cash Flows](index=22&type=section&id=4.4%20综合现金流量表) For the six months ended June 30, 2025, net cash used in operating activities was RMB 36,079 thousand, a decrease from the prior year. Investing activities shifted from net cash generated to net cash used, totaling RMB 117,721 thousand. Net cash used in financing activities was RMB 16,203 thousand. Cash and cash equivalents at period-end were RMB 261,653 thousand, a decrease from the beginning of the period Interim Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30, 2025) | Cash Flow Activity | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (36,079) | (68,313) | | Net Cash (Used in) / Generated from Investing Activities | (117,721) | 112,712 | | Net Cash Used in Financing Activities | (16,203) | (43,549) | | Net (Decrease) / Increase in Cash and Cash Equivalents | (170,003) | 850 | | Cash and Cash Equivalents at Beginning of Period | 433,689 | 555,033 | | Exchange (Loss) / Gain on Cash and Cash Equivalents | (2,033) | 2,595 | | **Cash and Cash Equivalents at End of Period** | **261,653** | **558,478** | [Notes to the Interim Condensed Consolidated Financial Information](index=23&type=section&id=中期简明综合财务资料附注) This section provides detailed notes to the interim condensed consolidated financial information, covering general company details, accounting policies, segment and revenue breakdowns, other net gains, expense classifications, income tax specifics, loss per share calculations, dividend policy, and details on trade and other receivables and payables [General Information](index=23&type=section&id=5.1%20一般资料) Archosaur Games Inc., incorporated in the Cayman Islands, primarily develops and operates mobile games in China and other countries. Its shares have been listed on the Main Board of the Hong Kong Stock Exchange since July 15, 2020. This interim condensed consolidated financial information is presented in RMB and was approved by the Board on August 22, 2025 - The company is incorporated in the Cayman Islands, primarily engaged in mobile game development and operation in China and other countries[66](index=66&type=chunk) - The company's shares have been listed on the Main Board of the Hong Kong Stock Exchange since July 15, 2020[67](index=67&type=chunk) - The interim condensed consolidated financial information is presented in RMB and was approved by the Board on August 22, 2025[67](index=67&type=chunk) [Basis of Preparation and Accounting Policies](index=23&type=section&id=5.2%20编制基础与会计政策) This interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and should be read in conjunction with the 2024 financial statements. The accounting policies adopted are consistent with those in the 2024 financial statements. IFRS 21 (amended) "Lack of Exchangeability" was first adopted this period with no significant impact. IFRS 18 "Presentation and Disclosure in Financial Statements" is expected to have a broad impact on presentation and disclosure for reporting periods beginning on or after January 1, 2027 - The interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting"[69](index=69&type=chunk) - The accounting policies adopted are consistent with those set out in the 2024 financial statements[71](index=71&type=chunk) - IFRS 18 "Presentation and Disclosure in Financial Statements" is expected to have a broad impact on presentation and disclosure for reporting periods beginning on or after January 1, 2027[74](index=74&type=chunk) [Segment Information and Revenue Details](index=25&type=section&id=5.3%20分部资料及收益详情) The Group operates and manages its business as a single segment, thus no segment information is presented. For the six months ended June 30, 2025, total online game revenue was RMB 634,366 thousand, with integrated game publishing and operations revenue accounting for the majority. Revenue recognition occurs both at a point in time and over time. Mainland China contributed RMB 511,688 thousand in revenue, accounting for 80.7%. Contract liabilities primarily include unamortized revenue from in-game virtual item sales and non-refundable fixed license fees - The Group's business is operated and managed as a single segment, thus no segment information is presented[77](index=77&type=chunk) Online Game Revenue Breakdown (For the Six Months Ended June 30, 2025) | Revenue Source | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Development and Licensing - Revenue Sharing | 51,648 | 57,478 | | Development and Licensing - Non-refundable Fixed License Fees | 3,498 | 4,537 | | Integrated Game Publishing and Operations | 579,036 | 376,527 | | Others | 184 | 890 | | **Total** | **634,366** | **439,432** | Revenue by Geographical Location (For the Six Months Ended June 30, 2025) | Geographical Location | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Mainland China | 511,688 | 303,983 | | Outside Mainland China | 122,678 | 135,449 | | **Total** | **634,366** | **439,432** | - Contract liabilities primarily refer to unamortized revenue from in-game virtual item sales, non-refundable fixed license fees, and revenue sharing received in advance from customers[83](index=83&type=chunk) [Details of Other Net Gains](index=27&type=section&id=5.4%20其他收益净额详情) For the six months ended June 30, 2025, other net gains totaled RMB 39,257 thousand, primarily comprising net foreign exchange gains of RMB 26,635 thousand and gains from financial assets at fair value through profit or loss of RMB 11,789 thousand Breakdown of Other Net Gains (For the Six Months Ended June 30, 2025) | Revenue Source | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Gains from Financial Assets at Fair Value Through Profit or Loss | 11,789 | 10,784 | | Net Foreign Exchange Gains / (Losses) | 26,635 | (9,597) | | Others | 833 | 2,617 | | **Total** | **39,257** | **3,804** | [Expenses by Nature](index=28&type=section&id=5.5%20费用按性质分类) For the six months ended June 30, 2025, the Group's total expenses were RMB 714,422 thousand, primarily comprising employee benefits expenses (RMB 276,378 thousand), promotion and advertising expenses (RMB 186,676 thousand), and commissions to distribution and payment channels (RMB 135,196 thousand) Expenses by Nature (For the Six Months Ended June 30, 2025) | Expense Nature | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Employee Benefits Expenses | 276,378 | 274,568 | | Promotion and Advertising Expenses | 186,676 | 144,971 | | Commissions to Distribution and Payment Channels | 135,196 | 86,444 | | Outsourcing Technical Services | 34,735 | 29,949 | | Depreciation and Amortization Expenses | 26,748 | 25,438 | | Commissions to IP Holders | 19,872 | 9,600 | | Bandwidth and Server Hosting Fees | 13,351 | 11,820 | | Utilities and Office Expenses | 9,343 | 8,401 | | Other Professional Consulting Fees | 2,672 | 2,409 | | VAT Input Transfer Out and Surcharges | 2,174 | 2,340 | | Travel Expenses | 1,832 | 2,297 | | Auditor's Remuneration | 1,023 | 1,000 | | Net Impairment Loss / (Reversal) on Financial Assets | 335 | (2,555) | | Others | 4,087 | 2,273 | | **Total** | **714,422** | **598,955** | [Details of Income Tax Expense](index=28&type=section&id=5.6%20所得税开支详情) For the six months ended June 30, 2025, total income tax expense was RMB 1,633 thousand, including current income tax expense of RMB 591 thousand and deferred income tax expense of RMB 1,042 thousand. Several of the Group's subsidiaries in mainland China enjoy preferential income tax rates as high-tech enterprises or small and micro enterprises, with some western region companies also benefiting from a 15% preferential rate. Additionally, companies engaged in R&D activities are entitled to a 200% super deduction for R&D expenses Income Tax Expense Analysis (For the Six Months Ended June 30, 2025) | Income Tax Type | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current Income Tax Expense | 591 | 1,327 | | Deferred Income Tax Expense / (Credit) | 1,042 | (167) | | **Total** | **1,633** | **1,160** | - Tianjin Zulong, Beijing Fantasy Mermaid, and other companies are recognized as high-tech enterprises, enjoying a **15%** preferential income tax rate[89](index=89&type=chunk)[90](index=90&type=chunk) - Shanghai Zuyun and other companies are recognized as small and micro enterprises, with **25%** of their assessable profits subject to a **20%** preferential corporate income tax rate[90](index=90&type=chunk) - Enterprises engaged in R&D activities are entitled to claim a **200%** super deduction for their R&D expenses when determining assessable profits[91](index=91&type=chunk) [Loss Per Share](index=30&type=section&id=5.7%20每股亏损) For the six months ended June 30, 2025, loss attributable to owners of the company was RMB 11,730 thousand. Basic loss per share was RMB 0.01. As the Group incurred a loss during the relevant period, potential dilutive ordinary shares (restricted share units and share options) had an anti-dilutive effect on diluted loss per share, thus diluted loss per share was the same as basic loss per share Loss Per Share Calculation (For the Six Months Ended June 30, 2025) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (RMB Thousand) | (11,730) | (134,041) | | Weighted Average Number of Ordinary Shares in Issue (Thousand Shares) | 784,921 | 786,169 | | **Basic Loss Per Share (RMB per share)** | **(0.01)** | **(0.17)** | - As the Group incurred a loss during the relevant period, restricted share units and share options had an anti-dilutive effect on the calculation of diluted loss per share, thus diluted loss per share was the same as basic loss per share[94](index=94&type=chunk) [Dividend Policy](index=30&type=section&id=5.8%20股息政策) The company did not declare or pay any dividends for the six months ended June 30, 2025, or 2024 - The company did not declare or pay any dividends for the six months ended June 30, 2025, or 2024[95](index=95&type=chunk) [Trade Receivables](index=31&type=section&id=5.9%20应收账款) As of June 30, 2025, net trade receivables were RMB 128,594 thousand, an increase from December 31, 2024, with third-party receivables accounting for the largest portion. Trade receivables are primarily denominated in RMB and USD, with credit terms ranging from 90 to 150 days, and most receivables aged within 3 months. Impairment provision for trade receivables was RMB 15,372 thousand Net Trade Receivables (As of June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Receivables | 143,966 | 134,377 | | Less: Impairment Provision for Trade Receivables | (15,372) | (14,354) | | **Net Trade Receivables** | **128,594** | **120,023** | Gross Carrying Amount of Trade Receivables by Customer Type (As of June 30, 2025) | Customer Type | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Related Parties | 25,711 | 24,130 | | Third Parties | 118,255 | 110,247 | | **Total** | **143,966** | **134,377** | - The Group grants credit terms ranging from **90 to 150 days** to its customers, with most trade receivables aged within **3 months**[97](index=97&type=chunk) [Trade and Other Payables](index=33&type=section&id=5.10%20应付账款及其他应付款项) As of June 30, 2025, total trade and other payables were RMB 185,017 thousand, a decrease from December 31, 2024, including trade payables of RMB 135,899 thousand and payroll liabilities of RMB 38,699 thousand. Most trade payables were aged within 6 months Trade and Other Payables (As of June 30, 2025) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Payables | 135,899 | 102,117 | | Payroll Liabilities | 38,699 | 60,731 | | Taxes Payable | 4,281 | 16,259 | | Others | 6,138 | 13,776 | | **Total** | **185,017** | **192,883** | - An aging analysis of trade payables by recognition date shows that the majority (**RMB 110,925 thousand**) are aged within **6 months**[99](index=99&type=chunk) [Definitions](index=34&type=section&id=释义) This section provides a glossary of key terms and abbreviations used throughout the report to ensure clarity and consistent understanding of the content [Glossary of Terms](index=34&type=section&id=6.1%20词汇定义) This section provides definitions for key terms and abbreviations used in the report, including company name, Board, Corporate Governance Code, Global Offering, Group, HKD, Hong Kong, IFRS, Listing, Listing Date, Listing Rules, MMORPG, Model Code, PRC, Pre-IPO RSU Scheme, Prospectus, Reporting Period, RMB, RSU Scheme, Share Option Scheme, Shares, Shareholders, SLG, Stock Exchange, Subsidiaries, Unreal Engine 4 and Unreal Engine 5, USD, and percentage symbol - This section provides definitions for key terms and abbreviations used in the report to ensure readers' understanding of the content[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk)

Company Information and Financial Highlights [Company Overview](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E5%86%B5) This report presents Star CM Holdings Limited's unaudited interim results announcement for the six months ended June 30, 2025, reviewed by the Board's audit committee - This announcement is the unaudited interim results report of Star CM Holdings Limited for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) [Financial Performance Summary](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E4%B8%9A%E7%BB%A9%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the company's revenue decreased by 17.0% year-on-year, while gross profit significantly increased by 233.3%, and both loss before tax and loss for the period substantially narrowed As at 30 June 2025 Key Financial Indicators | Item | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 59.0 | 71.1 | (17.0%) | | Gross Profit | 22.0 | 6.6 | 233.3% | | Loss Before Tax | (10.4) | (55.3) | (81.2%) | | Loss for the Period | (11.1) | (56.0) | (80.2%) | [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E9%98%85%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E8%A1%A8) During the reporting period, the company's revenue was RMB 59,035 thousand, with a substantial decrease in cost of sales leading to a significant increase in gross profit to RMB 21,970 thousand; despite increased losses from associates, a significant reduction in administrative expenses and fair value gains on financial assets narrowed the loss for the period to RMB 11,149 thousand Unaudited Condensed Interim Consolidated Statement of Profit or Loss (For the six months ended 30 June) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 59,035 | 71,113 | | Cost of Sales | (37,065) | (64,521) | | Gross Profit | 21,970 | 6,592 | | Other Income and Gains | 8,373 | 8,270 | | Selling and Distribution Expenses | (8,338) | (7,817) | | Administrative Expenses | (21,705) | (42,504) | | Net Reversal of Impairment Loss on Trade Receivables | 1,403 | 3,572 | | (Impairment Loss) / Reversal of Impairment Loss on Other Receivables | (259) | 634 | | Reversal of Impairment Loss on Loans to a Joint Venture and an Associate | 1,838 | – | | Other Expenses | (2,651) | (387) | | Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | 12,878 | (5,594) | | Finance Costs | (113) | (221) | | Share of Loss of Joint Ventures | (8,478) | (14,873) | | Share of Loss of Associates | (15,316) | (3,012) | | Loss Before Tax | (10,398) | (55,340) | | Income Tax Expense | (751) | (635) | | Loss for the Period | (11,149) | (55,975) | | Loss Per Share Attributable to Ordinary Equity Holders of the Parent (Basic and Diluted) | (0.03) | (0.14) | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E9%98%85%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%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's total comprehensive loss for the period significantly narrowed to RMB 12,530 thousand from RMB 53,399 thousand in the prior year, primarily due to reduced loss for the period, despite exchange differences turning from gain to loss Unaudited Condensed Interim Consolidated Statement of Comprehensive Income (For the six months ended 30 June) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the Period | (11,149) | (55,975) | | Exchange Differences Arising from Translation of Foreign Operations | (1,381) | 2,576 | | Total Comprehensive Loss for the Period | (12,530) | (53,399) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E9%98%85%E4%B8%AD%E6%9C%9F%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 less current liabilities were RMB 2,660,553 thousand, a slight decrease from year-end 2024, with a minor reduction in total non-current assets and an increase in net current assets Unaudited Condensed Interim Consolidated Statement of Financial Position (As at 30 June 2025) | Item | As at 30 June 2025 (RMB thousand) | As at 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | **NON-CURRENT ASSETS** | | | | Total non-current assets | 2,132,442 | 2,187,533 | | **CURRENT ASSETS** | | | | Total current assets | 700,164 | 711,323 | | **CURRENT LIABILITIES** | | | | Total current liabilities | 172,053 | 225,800 | | Net current assets | 528,111 | 485,523 | | Total assets less current liabilities | 2,660,553 | 2,673,056 | | **NON-CURRENT LIABILITIES** | | | | Total non-current liabilities | 25,254 | 25,408 | | Net assets | 2,635,299 | 2,647,648 | | Total equity | 2,635,299 | 2,647,648 | Notes to the Condensed Interim Consolidated Financial Information [Company and Group Information](index=6&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) The company, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange in December 2022, primarily engages in the production, operation, and licensing of variety show, music, drama series, and film IPs, along with other IP-related businesses, with CMC Inc. as the ultimate controlling shareholder - The company was incorporated in the Cayman Islands on March 29, 2021, and listed on the Main Board of the Hong Kong Stock Exchange on December 29, 2022[9](index=9&type=chunk)[10](index=10&type=chunk) - The company's business primarily covers the production, operation, and licensing of variety show IP, music IP, drama series and film IP, as well as other IP-related businesses[10](index=10&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=2.%20%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86%3B%203.%20%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E7%9A%84%E5%8F%98%E5%8A%A8) The interim financial statements are prepared in accordance with HKEX Listing Rules, IFRS, and IAS 34, consistent with annual financial statements, with no material impact from the first-time application of IAS 21 (Revised) this period - The financial statements are prepared in accordance with the HKEX Listing Rules, International Financial Reporting Standards, and International Accounting Standard 34 'Interim Financial Reporting'[11](index=11&type=chunk) - This period marks the first application of IAS 21 (Revised) 'Lack of Exchangeability', with no material impact on financial position or performance[12](index=12&type=chunk) [Operating Segment and Geographical Information](index=7&type=section&id=4.%20%E7%BB%8F%E8%90%A5%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The company's management considers the Group as a single reportable operating segment, with revenue primarily from Mainland China but increasing from other regions, and non-current assets mainly concentrated in Mainland China and Hong Kong - Management considers the Group as a single reportable operating segment[13](index=13&type=chunk) Regional Revenue Distribution (For the six months ended 30 June) | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 36,788 | 54,674 | | Other Regions | 22,247 | 16,439 | | **Total** | **59,035** | **71,113** | Regional Non-current Assets Distribution (As at 30 June 2025) | Region | As at 30 June 2025 (RMB thousand) | As at 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,635,118 | 1,610,638 | | Hong Kong | 367,542 | 422,081 | | **Total** | **2,002,660** | **2,032,719** | [Revenue Analysis](index=7&type=section&id=5.%20%E6%94%B6%E5%85%A5) Total revenue for the reporting period was RMB 59,035 thousand, a year-on-year decrease, with significant growth in drama series and film IP operation and licensing revenue, while variety show IP, music IP, and other IP-related business revenues all declined Revenue by Type of Goods or Services (For the six months ended 30 June) | Type of Goods or Services | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Variety Show IP Production, Operation and Licensing | 13,557 | 25,453 | | Music IP Operation and Licensing | 6,444 | 7,566 | | Drama Series and Film IP Operation and Licensing | 25,434 | 16,393 | | Other IP-related Businesses | 13,600 | 21,701 | | **Total Revenue from Contracts with Customers** | **59,035** | **71,113** | Timing of Revenue Recognition (For the six months ended 30 June) | Timing of Revenue Recognition | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | At a point in time | 28,751 | 41,805 | | Over time | 30,284 | 29,308 | [Loss Before Tax and Income Tax](index=9&type=section&id=6.%20%E9%99%A4%E7%A8%8E%E5%89%8D%E4%BA%8F%E6%8D%9F%3B%207.%20%E6%89%80%E5%BE%97%E7%A8%8E) Loss before tax significantly narrowed, primarily due to a substantial decrease in variety show IP costs and reversal of impairment losses; income tax expense remained relatively stable, mainly comprising tax rates from Mainland China, Hong Kong, and Macau, with Shanghai Canxing Culture Media Co., Ltd. benefiting from a high-tech enterprise preferential tax rate Components of Loss Before Tax (For the six months ended 30 June) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Variety Show IP Production, Operation and Licensing Cost | 10,422 | 35,934 | | Drama Series and Film IP Operation and Licensing Cost | 10,162 | 6,211 | | Net Reversal of Impairment Loss on Trade Receivables | (1,403) | (3,572) | | Reversal of Impairment Loss on Loans to a Joint Venture and an Associate | (1,838) | – | - Shanghai Canxing Culture Media Co., Ltd., as a high-tech enterprise, enjoys a preferential income tax rate of **15%**, valid until December 12, 2026[21](index=21&type=chunk) Major Components of Income Tax Expense (For the six months ended 30 June) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current - Expense for the period | 72 | 611 | | Over-provision in prior years | 2,809 | – | | Deferred tax | (2,130) | 24 | | **Income Tax Expense** | **751** | **635** | [Dividends and Loss Per Share](index=10&type=section&id=8.%20%E8%82%A1%E6%81%AF%3B%209.%20%E6%AF%8F%E8%82%A1%E4%BA%8F%E6%8D%9F) The Board did not declare any interim dividend for the six months ended June 30, 2025, and basic and diluted loss per share significantly narrowed to RMB 0.03 from RMB 0.14 in the prior year - The Board did not declare any interim dividend for the six months ended June 30, 2025[23](index=23&type=chunk) Loss Per Share (For the six months ended 30 June) | Item | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Loss Per Share Attributable to Ordinary Equity Holders of the Parent (Basic and Diluted) | (0.03) | (0.14) | [Trade Receivables and Trade Payables](index=10&type=section&id=10.%20%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%3B%2011.%20%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) Total trade receivables amounted to RMB 68,994 thousand, a 30.3% decrease from year-end 2024, primarily due to reduced revenue; total trade payables were RMB 101,935 thousand, a 13.0% decrease from year-end 2024, consistent with the reduction in cost of sales Trade Receivables (As at 30 June 2025) | Item | As at 30 June 2025 (RMB thousand) | As at 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 399,124 | 434,344 | | Less: Impairment Loss | (330,130) | (335,387) | | **Total** | **68,994** | **98,957** | - Trade receivables typically have a credit period of **30 days** and are subject to maximum credit limits[25](index=25&type=chunk) Trade Payables (As at 30 June 2025) | Ageing | As at 30 June 2025 (RMB thousand) | As at 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 18,158 | 47,663 | | 1 to 2 years | 17,624 | 45,191 | | 2 to 3 years | 43,354 | 14,180 | | Over 3 years | 22,799 | 10,083 | | **Total** | **101,935** | **117,117** | - Trade payables are non-interest bearing and usually settled on credit terms of **90 to 180 days**[27](index=27&type=chunk) [Provisions and Commitments](index=12&type=section&id=12.%20%E6%8B%A8%E5%A4%87%3B%2013.%20%E6%89%BF%E6%94%94) As of June 30, 2025, total provisions significantly decreased by 81.4% to RMB 6,623 thousand, mainly due to the payment of litigation provisions; the Group's contractual commitments primarily relate to leased land and construction in progress, totaling RMB 800,431 thousand Movement in Provisions (For the six months ended 30 June 2025) | Item | As at 1 January 2025 (RMB thousand) | Additional provisions made (RMB thousand) | Provisions utilised (RMB thousand) | As at 30 June 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | MBC - 'Masked Singer 2016' | 24,371 | – | (24,371) | – | | Entity A | 1,435 | – | – | 1,435 | | Entity B | 4,257 | – | (4,257) | – | | Entity C | 4,165 | – | – | 4,165 | | Others | 1,195 | – | (172) | 1,023 | | **Total** | **35,423** | **–** | **(28,800)** | **6,623** | Contractual Commitments (As at 30 June 2025) | Item | As at 30 June 2025 (RMB thousand) | As at 31 December 2024 (RMB thousand) | | :--- | :--- | :--- | | Leased land and construction in progress | 800,431 | 799,903 | Management Discussion and Analysis [Business Review and Prospects](index=13&type=section&id=%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A7%88%E5%8F%8A%E5%89%8D%E6%99%AF) The company is dedicated to IP creation, operation, and licensing across variety shows, music, drama series, and films, aiming to enhance IP creation capabilities, expand audience reach, accelerate business expansion through M&A, and continuously attract and build talent teams - The company actively participated in directing and post-production services for variety shows such as 'The Most Beautiful Central Axis', 'Asia New Voice', and 'Speed Racer'[30](index=30&type=chunk) - The company, in collaboration with iQIYI and Hainan Happy Time Film Co., Ltd., launched the '100 Hong Kong Film Micro-Drama Project', selecting **100 classic Hong Kong film IPs** for in-depth micro-drama adaptation[30](index=30&type=chunk) - Future development initiatives include strengthening IP creation and operation capabilities (e.g., micro-drama secondary creation), expanding audience reach and brand influence (e.g., overseas market expansion), growing business through M&A, and continuously attracting and building talent teams[36](index=36&type=chunk)[37](index=37&type=chunk) [Variety Show IP Production, Operation and Licensing](index=13&type=section&id=%E7%BB%BC%E8%89%BA%E8%8A%82%E7%9B%AEIP%E5%88%B6%E4%BD%9C%E3%80%81%E8%BF%90%E8%90%A5%E5%8F%8A%E6%8E%88%E6%9D%83) During the reporting period, the company participated in the production of variety shows like 'The Most Beautiful Central Axis', 'Asia New Voice', and 'Speed Racer', and collaborated with iQIYI on a '100 Hong Kong Film Micro-Drama Project', though this business's financial performance is subject to various fluctuating factors - Participated in directing and post-production for variety shows such as 'The Most Beautiful Central Axis', 'Asia New Voice', and 'Speed Racer'[30](index=30&type=chunk) - Launched the '100 Hong Kong Film Micro-Drama Project', selecting **100 classic Hong Kong film IPs** for in-depth micro-drama adaptation[30](index=30&type=chunk) - Revenue, gross profit, and gross profit margin of the variety show IP business are influenced by various factors such as cooperation models, negotiations with investing media platforms, economic environment, and audience preferences, leading to potential fluctuations in financial performance[31](index=31&type=chunk) [Music IP Operation and Licensing](index=13&type=section&id=%E9%9F%B3%E4%B9%90IP%E8%BF%90%E8%90%A5%E5%8F%8A%E6%8E%88%E6%9D%83) As of June 30, 2025, the company's music library holds 9,835 IPs, comprising live music recordings, songs by contracted artists, and lyrical music works - As of June 30, 2025, the company's music library holds **9,835 IPs**, including **3,765 live music recordings**, **3,754 songs by contracted artists**, and **2,316 lyrical and musical works**[32](index=32&type=chunk) [Film and Drama Series IP Operation and Licensing](index=13&type=section&id=%E7%94%B5%E5%BD%B1%E5%8F%8A%E5%89%A7%E9%9B%86IP%E8%BF%90%E8%90%A5%E5%8F%8A%E6%8E%88%E6%9D%83) As of June 30, 2025, the company owns 757 Chinese film IPs and one drama series 'Reading Class', primarily generating fixed licensing fees by authorizing the re-broadcast of film IPs to domestic and international TV and online video platforms - As of June 30, 2025, the company owns **757 Chinese film IPs** and one drama series, 'Reading Class'[33](index=33&type=chunk) - Fixed licensing fees are primarily generated by authorizing the re-broadcast of film IPs to domestic and international television media platforms and online video platforms[34](index=34&type=chunk) [Other IP-related Businesses](index=14&type=section&id=%E5%85%B6%E4%BB%96IP%E7%9B%B8%E5%85%B3%E4%B8%9A%E5%8A%A1) Other IP-related businesses include artist management, concert organization and production, art education and training, mobile applications, derivative consumer products, and live experience venues, with 69 contracted artists as of June 30, 2025 - Other IP-related businesses include artist management, concert organization and production, art education and training, mobile applications, derivative consumer products, and live experience venues[35](index=35&type=chunk) - As of June 30, 2025, the company has **69 contracted artists**[35](index=35&type=chunk) [Prospects and Future Development](index=14&type=section&id=%E5%89%8D%E6%99%AF%E5%8F%8A%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95) The company is committed to strengthening IP creation and operation capabilities (including micro-drama secondary creation), expanding audience reach and brand influence (including overseas market expansion), integrating quality industry resources through M&A, and continuously attracting and building talent teams to adapt to market demands and accelerate business expansion - The company will continue to operate its music and film IP libraries, enhance content production capabilities, enrich IP types and themes, and actively engage in micro-drama secondary creation to revitalize old film IP value[37](index=37&type=chunk) - Plans include expanding audience reach and brand influence by increasing cooperation platforms, offering live experiences, and boosting overseas market investment[37](index=37&type=chunk) - The company will closely monitor and evaluate high-quality M&A targets that complement its business and align with its strategy to integrate upstream and downstream resources in the entertainment market value chain[37](index=37&type=chunk) - Plans involve attracting top talent in IP production, operation, and management by improving talent acquisition and retention systems[37](index=37&type=chunk) [Financial Review](index=15&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%A7) During the reporting period, the company's revenue decreased, but gross profit significantly increased, and net loss substantially narrowed; this was primarily due to the variety show IP production business turning to gross profit and reduced administrative expenses, with film and drama series IP business revenue and gross profit growing, while other IP businesses declined - For the six months ended June 30, 2025, the company reported revenue RMB **59.0 million**, gross profit RMB **22.0 million**, and a net loss RMB **11.1 million**, a significant reduction from RMB **56.0 million** in the prior year[38](index=38&type=chunk) - The reduction in net loss is primarily attributable to the variety show IP production, operation, and licensing business turning to gross profit, and a significant decrease in administrative expenses[38](index=38&type=chunk) [Overview](index=15&type=section&id=%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, the company reported revenue of RMB 59.0 million, gross profit of RMB 22.0 million, and a net loss of RMB 11.1 million, a significant 80.2% reduction from RMB 56.0 million in the prior year Financial Overview (For the six months ended 30 June) | Item | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 59.0 | 71.1 | (17.0%) | | Gross Profit | 22.0 | 6.6 | 233.3% | | Net Loss | (11.1) | (56.0) | (80.2%) | - The reduction in net loss is primarily attributable to the variety show IP production, operation, and licensing business turning to gross profit, and a significant decrease in administrative expenses[38](index=38&type=chunk) [Revenue by Business Segment](index=15&type=section&id=%E6%8C%89%E4%B8%9A%E5%8A%A1%E5%88%86%E9%83%A8%E5%8A%83%E5%88%86%E7%9A%84%E6%94%B6%E5%85%A5) During the reporting period, revenue from variety show IP, music IP, and other IP-related businesses decreased, while film and drama series IP operation and licensing revenue significantly grew by 54.9%, becoming a key growth driver Revenue by Business Segment (For the six months ended 30 June) | Business Segment | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Variety Show IP Production, Operation and Licensing | 13.6 | 25.5 | (46.7%) | | Music IP Operation and Licensing | 6.4 | 7.6 | (15.8%) | | Film and Drama Series IP Operation and Licensing | 25.4 | 16.4 | 54.9% | | Other IP-related Businesses | 13.6 | 21.6 | (37.0%) | | **Total** | **59.0** | **71.1** | (17.0%) | - Variety show IP revenue decreased by **46.7%**, mainly due to a reduction in the scale of variety shows[40](index=40&type=chunk) - Film and drama series IP revenue increased by **54.9%**, primarily due to higher film IP licensing revenue[42](index=42&type=chunk) - Other IP-related business revenue decreased by **37.0%**, mainly due to a decline in commercial performance revenue resulting from fewer contracted artists[43](index=43&type=chunk) [Cost of Sales](index=16&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC) Total cost of sales decreased by 42.6% from RMB 64.5 million in the prior year to RMB 37.0 million in 2025; variety show IP production costs significantly dropped by 71.0%, consistent with revenue decline, while film and drama series IP costs increased with revenue growth Cost of Sales by Business Segment (For the six months ended 30 June) | Business Segment | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Variety Show IP Production, Operation and Licensing | 10.4 | 35.9 | (71.0%) | | Music IP Operation and Licensing | 3.4 | 3.7 | (8.1%) | | Film and Drama Series IP Operation and Licensing | 10.2 | 6.2 | 64.5% | | Other IP-related Businesses | 13.0 | 18.7 | (30.5%) | | **Total** | **37.0** | **64.5** | (42.6%) | - Cost of sales for variety show IP production, operation, and licensing decreased by **71.0%**, consistent with the revenue decline due to reduced variety show scale[45](index=45&type=chunk) - Cost of sales for film and drama series IP operation and licensing increased by **64.5%**, consistent with the revenue growth in this business segment[47](index=47&type=chunk) [Gross Profit (Loss) and Gross Profit (Loss) Margin](index=17&type=section&id=%E6%AF%9B%EF%BC%88%E8%99%A7%EF%BC%89%E2%97%90%E5%88%A9%E5%8F%8A%E6%AF%9B%EF%BC%88%E8%99%A7%EF%BC%89%E2%97%90%E5%88%A9%E7%8E%87) During the reporting period, the company's total gross profit significantly increased by 233.3% to RMB 22.0 million, with gross profit margin rising to 37.3%; variety show IP business turned from gross loss to gross profit with a 23.5% margin, mainly due to a shift towards director teams and post-production, while film and drama series IP gross profit grew by 49.0% but its margin slightly decreased Gross Profit and Gross Profit Margin by Business Segment (For the six months ended 30 June) | Business Segment | 2025 Gross Profit (RMB million) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB million) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Variety Show IP Production, Operation and Licensing | 3.2 | 23.5% | (10.4) | (40.8%) | | Music IP Operation and Licensing | 3.0 | 46.9% | 3.9 | 51.3% | | Film and Drama Series IP Operation and Licensing | 15.2 | 59.8% | 10.2 | 62.2% | | Other IP-related Businesses | 0.6 | 4.4% | 2.9 | 13.4% | | **Total** | **22.0** | **37.3%** | **6.6** | **9.3%** | - The variety show IP production, operation, and licensing business turned from a gross loss of **RMB 10.4 million** in the prior year to a gross profit of **RMB 3.2 million**, with a gross profit margin of **23.5%**, mainly due to a shift in focus to director teams and post-production[52](index=52&type=chunk) - Gross profit from film and drama series IP operation and licensing increased by **49.0%** to **RMB 15.2 million**, consistent with revenue growth, but the gross profit margin slightly decreased to **59.8%**[54](index=54&type=chunk) [Other Income and Expenses](index=19&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%3B%20%E9%94%80%E5%94%AE%E5%8F%8A%E5%88%86%E9%94%80%E5%BC%80%E6%94%AF%3B%20%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF%3B%20%E9%87%91%E8%9E%8D%E8%B5%84%E4%BA%A7%E5%87%8F%E5%80%BC%E4%BA%8F%E6%8D%9F%E6%8B%A8%E5%9B%9E%E5%87%80%E9%A2%9D%3B%20%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%AE%A1%E5%85%A5%E6%8D%9F%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B5%84%E4%BA%A7%E7%9A%84%E5%85%AC%E5%B9%B3%E5%80%BC%E5%A2%9E%E5%8A%A0%3B%20%E5%85%B6%E4%BB%96%E5%BC%80%E6%94%AF%3B%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Other income and gains remained stable; administrative expenses significantly decreased by 48.9%, primarily due to reduced professional service fees, depreciation, and R&D expenses; fair value changes of financial assets turned from loss to gain, while other expenses notably increased due to higher late payment fees and exchange losses - Other income and gains remained relatively stable at **RMB 8.3 million** (2024) and **RMB 8.4 million** (2025) respectively[56](index=56&type=chunk) - Administrative expenses decreased by **48.9%** to **RMB 21.7 million**, primarily due to reduced professional service fees, depreciation of right-of-use assets and property, plant and equipment, and R&D expenses[58](index=58&type=chunk) - Fair value changes of financial assets at fair value through profit or loss turned from a loss of **RMB 5.6 million** to a gain of **RMB 12.9 million**, mainly influenced by fluctuations in listed company share prices[60](index=60&type=chunk) - Other expenses increased by **575.0%** to **RMB 2.7 million**, primarily due to higher late payment fees and exchange losses[61](index=61&type=chunk) [Share of Profits and Losses of Joint Ventures and Associates](index=20&type=section&id=%E5%BA%94%E4%BD%97%E5%90%88%E8%90%A5%E4%BC%81%E4%B8%9A%E5%8F%8A%E8%81%94%E8%90%A5%E5%85%AC%E5%8F%B8%E7%9A%84%E6%BA%A2%E5%88%A9%E5%8F%8A%E4%BA%8F%E6%8D%9F) During the reporting period, share of loss of joint ventures decreased, mainly due to reduced operating losses from Mengxiang Qian; however, share of loss of associates increased, primarily due to higher operating losses from Shaanxi Shuolan and Shaanxi Yuanlv - Share of loss of joint ventures decreased from **RMB 14.9 million** to **RMB 8.5 million**, mainly due to reduced operating losses from Mengxiang Qian[63](index=63&type=chunk) - Share of loss of associates increased from **RMB 3.0 million** to **RMB 15.3 million**, primarily due to higher operating losses from Shaanxi Shuolan and Shaanxi Yuanlv[63](index=63&type=chunk) [Loss for the Period](index=20&type=section&id=%E6%9C%9F%E5%86%85%E4%BA%8F%E6%8D%9F) Considering the aforementioned factors, the company's net loss for the period significantly narrowed to RMB 11.1 million, compared to RMB 56.0 million in the prior year - For the six months ended June 30, 2025, the company's net loss was **RMB 11.1 million**, a significant reduction from **RMB 56.0 million** in the prior year[65](index=65&type=chunk) [Financial Position](index=20&type=section&id=%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5) As of June 30, 2025, the company's financial position remained relatively stable; interests in associates within non-current assets slightly decreased, while cash and cash equivalents in current assets increased; on the liabilities side, both trade receivables and payables decreased, provisions significantly declined, and contract liabilities increased - Items such as property, plant and equipment, goodwill, programme copyrights, prepayments, other receivables and other assets, and lease liabilities remained relatively stable[66](index=66&type=chunk)[67](index=67&type=chunk)[79](index=79&type=chunk)[81](index=81&type=chunk)[86](index=86&type=chunk) [Non-current Assets](index=20&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87%3B%20%E5%95%86%E8%AA%89%3B%20%E6%96%BC%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E7%9A%84%E6%AC%8A%E7%9B%8A%3B%20%E6%96%BC%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%3B%20%E5%85%B6%E4%BB%96%E7%84%A1%E5%BD%A2%E8%B5%84%E4%BA%A7%3B%20%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) Interests in associates slightly decreased by 1.9% to RMB 849.4 million, primarily due to increased operating losses from associates; interests in joint ventures remained stable; other intangible assets decreased due to amortization of film IP licenses; financial assets at fair value through profit or loss increased by 24.4%, mainly influenced by listed company share price fluctuations Goodwill Carrying Amount (As at 30 June 2025) | Cash-generating unit | As at 30 June 2025 (RMB million) | As at 31 December 2024 (RMB million) | | :--- | :--- | :--- | | Starry Dream Culture Communication (Shanghai) Co., Ltd. CGU | 24.0 | 24.0 | | Star CM Media Film Co., Ltd. CGU | 231.6 | 232.6 | | **Total** | **255.6** | **256.6** | - Interests in associates decreased by **1.9%** to **RMB 849.4 million**, primarily due to increased operating losses from associates[69](index=69&type=chunk) - Other intangible assets decreased by **4.1%** to **RMB 125.9 million**, mainly due to normal amortization of film IP licenses[76](index=76&type=chunk) - Financial assets at fair value through profit or loss increased by **24.4%** to **RMB 65.3 million**, primarily due to fluctuations in the share prices of listed investments[77](index=77&type=chunk) [Current Assets](index=22&type=section&id=%E6%87%89%E6%94%B6%E9%97%9C%E8%81%AF%E6%96%B9%E6%AC%BE%E9%A0%85%3B%20%E5%8F%97%E9%99%90%E5%88%B6%E5%AD%98%E6%AC%BE%3B%20%E7%AF%80%E7%9B%AE%E7%89%88%E6%9D%83%3B%20%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%3B%20%E9%A2%84%E4%BB%98%E6%AC%BE%E9%A1%B9%E3%80%81%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B5%84%E4%BA%A7%3B%20%E7%8E%B0%E9%87%91%E5%8F%8A%E7%8E%B0%E9%87%91%E7%AD%89%E4%BB%B7%E7%89%A9) Cash and cash equivalents increased to RMB 532.9 million; amounts due from related parties significantly decreased by 76.3%, primarily due to partial loan repayments; restricted deposits decreased by 58.4%, primarily due to the resolution of certain litigation cases; trade receivables decreased by 30.3%, consistent with the reduction in revenue - Cash and cash equivalents increased to **RMB 532.9 million** (December 31, 2024: RMB 425.3 million)[87](index=87&type=chunk) - Amounts due from related parties decreased by **76.3%** to **RMB 26.7 million**, mainly due to partial loan repayments by Mengxiang Qian and CMC Asia Group Holdings Ltd[75](index=75&type=chunk) - Restricted deposits decreased by **58.4%** to **RMB 28.5 million**, primarily due to the resolution of certain litigation cases and the release of prior provisions[78](index=78&type=chunk) - Trade receivables decreased by **30.3%** to **RMB 69.0 million**, consistent with the change in revenue[80](index=80&type=chunk) [Liabilities](index=23&type=section&id=%E8%B2%A0%E5%80%B5) Trade payables decreased by 13.0%, consistent with the reduction in cost of sales; other payables and accrued charges decreased by 23.9%, mainly due to settlements; contract liabilities increased by 21.3%, primarily due to an increase in unrecognised contract liabilities; provisions significantly decreased by 81.4%, primarily due to the payment of litigation provisions - Trade payables decreased by **13.0%** to **RMB 101.9 million**, consistent with the change in cost of sales[82](index=82&type=chunk) - Other payables and accrued charges decreased by **23.9%** to **RMB 35.4 million**, mainly due to the settlement of certain other payables[83](index=83&type=chunk) - Contract liabilities increased by **21.3%** to **RMB 19.4 million**, primarily due to an increase in unrecognised contract liabilities[84](index=84&type=chunk) - Provisions decreased by **81.4%** to **RMB 6.6 million**, primarily due to the payment of litigation provisions[85](index=85&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The company primarily meets its cash needs through equity financing and cash flows generated from retained earnings; as of June 30, 2025, cash and cash equivalents were RMB 532.9 million, and the gearing ratio remained stable at 0.25% - As of June 30, 2025, cash and cash equivalents were **RMB 532.9 million** (December 31, 2024: RMB 425.3 million)[87](index=87&type=chunk) - The company primarily funds its cash requirements through equity financing and cash flows generated from retained earnings[87](index=87&type=chunk) - As of June 30, 2025, the gearing ratio was **0.25%**, remaining stable compared to **0.26%** as of December 31, 2024[88](index=88&type=chunk) [Other Financial Information](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%3B%20%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC%3B%20%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5%3B%20%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%99%A9%3B%20%E6%9C%89%E9%97%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%88%92) No material acquisitions or disposals occurred during the reporting period; pledged assets primarily consist of restricted deposits for leased land and litigation; the company faces transactional currency risk but currently does not intend to hedge; there are no future plans for material investments beyond those disclosed in the prospectus - No material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associates occurred during the reporting period[89](index=89&type=chunk) - As of June 30, 2025, pledged time deposits amounted to **RMB 28.5 million**, used as collateral for leased land purchases and litigation[90](index=90&type=chunk) - The company faces transactional currency risk, primarily from cash and cash equivalents denominated in HKD or USD, and currently does not intend to hedge[92](index=92&type=chunk) - Other than the intended use of proceeds disclosed in the prospectus, the company has no other material investment or capital asset plans[93](index=93&type=chunk) Corporate Governance and Other Information [Employees and Remuneration Policy](index=25&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 116 employees, with total staff remuneration expenses of RMB 19.8 million for the first half; remuneration policy is based on industry practice, employee performance, and market levels, offering benefits such as year-end bonuses, allowances, and retirement schemes - As of June 30, 2025, the Group had **116 employees**[94](index=94&type=chunk) - Total staff remuneration expenses for the first half of 2025 amounted to **RMB 19.8 million**[94](index=94&type=chunk) - Remuneration policy is determined based on industry practice, employee educational background, experience, and performance, offering various benefits[94](index=94&type=chunk) [Material Litigation](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F) For the six months ended June 30, 2025, the company was not involved in any material litigation or arbitration - For the six months ended June 30, 2025, the company was not involved in any material litigation or arbitration[95](index=95&type=chunk) [Events After the Reporting Period](index=25&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A0%85) As of the date of this announcement, no significant events affecting the Group have occurred since the end of the reporting period - As of the date of this announcement, no significant events that could affect the Group have occurred since the six months ended June 30, 2025[96](index=96&type=chunk) [Corporate Governance](index=25&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The Board is committed to high standards of corporate governance and has adopted the Corporate Governance Code; the company deviates from Code Provision C.2.1 regarding the separation of Chairman and Chief Executive roles, with Mr. Tian Ming holding both, which the Board believes benefits business management and leadership unity; otherwise, the company has complied with the Corporate Governance Code - The company has adopted the principles and code provisions of the Corporate Governance Code as the foundation for its corporate governance practices[98](index=98&type=chunk) - The company deviates from Code Provision C.2.1 of the Corporate Governance Code regarding the separation of Chairman and Chief Executive roles, with Mr. Tian Ming holding both positions, which the Board believes benefits business prospects and management unity[98](index=98&type=chunk) - The Directors have confirmed strict compliance with the 'Model Code for Securities Transactions by Directors of Listed Issuers' during the reporting period[99](index=99&type=chunk) [Board Committees](index=26&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%3B%20%E5%85%B6%E4%BB%96%E8%91%A3%E4%BA%8B%E5%A7%94%E5%91%A1%E6%9C%83) The company has established an Audit Committee, a Nomination Committee, and a Remuneration Committee; the Audit Committee has reviewed the interim financial information and discussed accounting policies, financial reporting, and internal controls with management, with no disagreements between the Board and the Audit Committee - The company has established an Audit Committee, a Nomination Committee, and a Remuneration Committee[100](index=100&type=chunk)[101](index=101&type=chunk) - The Audit Committee has reviewed the interim financial information and discussed accounting policies, financial reporting matters, and internal controls with management, with no disagreements between the Board and the Audit Committee regarding accounting treatments[100](index=100&type=chunk) [Dealings in Listed Securities](index=27&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange, and the company held no treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange[102](index=102&type=chunk) - As of June 30, 2025, the company held no treasury shares[102](index=102&type=chunk) [Use of Proceeds from Global Offering](index=27&type=section&id=%E5%85%A8%E7%90%83%E5%8F%91%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A1%B9%E7%94%A8%E9%80%94) The net proceeds from the global offering were approximately HKD 328.3 million (approximately RMB 293.0 million); as of June 30, 2025, the remaining net proceeds were approximately HKD 74.8 million (approximately RMB 66.9 million) and will be used as stated in the prospectus - The net proceeds from the global offering were approximately **HKD 328.3 million** (approximately **RMB 293.0 million**)[103](index=103&type=chunk) - As of June 30, 2025, the remaining net proceeds were approximately **HKD 74.8 million** (approximately **RMB 66.9 million**)[103](index=103&type=chunk) [Interim Dividend](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of 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[104](index=104&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=27&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E5%A0%B1) This interim results announcement and interim report have been published on the Stock Exchange's website and the company's website, and will be dispatched to shareholders in due course - This interim results announcement is published on the Stock Exchange's website www.hkexnews.hk and the company's website www.starcmgroup.com[105](index=105&type=chunk) [Definitions](index=27&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and abbreviations used in the report, including Board, China, Company, Corporate Governance Code, Directors, Global Offering, HKD, Hong Kong, IFRS, iQIYI, Listing, Listing Rules, Main Board, Mengxiang Qian, Prospectus, RMB, Shaanxi Shuolan, Shaanxi Yuanlv, Shares, Shareholders, Stock Exchange, and USD - Definitions for key terms and abbreviations used in the report are provided[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)

[Company Information and Financial Summary](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E8%B4%A2%E5%8A%A1%E6%A6%82%E8%A6%81) This section provides an overview of Gemdale Properties and Investment Corporation Limited's basic information and key financial highlights for the six months ended June 30, 2025 [Company Basic Information](index=1&type=section&id=1.1%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) Gemdale Properties and Investment Corporation Limited announced its unaudited interim results for the six months ended June 30, 2025 - Company name: **Gemdale Properties and Investment Corporation Limited**[2](index=2&type=chunk) - Reporting period: Unaudited interim results for the six months ended **June 30, 2025**[2](index=2&type=chunk)[4](index=4&type=chunk) [Financial Summary](index=1&type=section&id=1.2%20%E8%B4%A2%E5%8A%A1%E6%A6%82%E8%A6%81) For the six months ended June 30, 2025, revenue significantly increased by 97% to RMB 6.468 billion, and gross profit rose by 67%, yet the company reported a loss after tax and a loss attributable to owners, with basic and diluted loss per share of RMB 0.0607, while cash and bank balances, total assets, and net assets decreased H1 2025 Financial Summary | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 6,467,765 | 3,286,864 | +97 | | Gross Profit | 931,231 | 557,414 | +67 | | Other Income and Gains | 195,699 | 354,290 | -45 | | Share of Results of Joint Ventures and Associates | (128,188) | (1,362,678) | -91 | | Loss After Tax | (867,090) | (2,152,232) | -60 | | Loss Attributable to Owners of the Company | (1,008,189) | (2,179,099) | -54 | | Loss Per Share Attributable to Owners of the Company (RMB) | (0.0607) | (0.1312) | -54 | | Cash and Bank Balances (including restricted cash) | 2,780,456 | 3,913,093 | -29 | | Total Assets | 67,611,308 | 75,991,941 | -11 | | Net Assets | 20,295,445 | 21,062,660 | -4 | [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) This section presents the condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position, for the reporting period [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=2.1%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, revenue surged by 97% to RMB 6.468 billion and gross profit increased by 67%, but despite reduced finance costs and share of losses from joint ventures and associates, a significant increase in impairment of trade receivables led to a 60% narrower loss for the period, totaling RMB 867.09 million Key Data from Condensed Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 6,467,765 | 3,286,864 | +97 | | Gross Profit | 931,231 | 557,414 | +67 | | Other Income and Gains | 195,699 | 354,290 | -45 | | Finance Costs | (493,843) | (613,054) | -19.5 | | Impairment of Trade and Other Receivables | (773,938) | (281,719) | +174.7 | | Share of Results of Joint Ventures and Associates | (128,188) | (1,362,678) | -90.6 | | Loss for the Period | (867,090) | (2,152,232) | -59.7 | | Loss Attributable to Owners of the Company | (1,008,189) | (2,179,099) | -53.8 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.2%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, total comprehensive loss significantly narrowed by 66.8% to RMB 744.15 million, primarily due to a reduced loss for the period and a favorable swing in exchange differences on translating foreign operations from loss to gain Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (867,090) | (2,152,232) | -59.7 | | Exchange Differences on Translating Foreign Operations | 219,215 | (145,237) | From loss to gain | | Total Comprehensive Loss for the Period | (744,149) | (2,241,172) | -66.8 | | Total Comprehensive Loss Attributable to Owners of the Company | (885,989) | (2,255,659) | -60.7 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.3%20%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, total assets decreased by 11% to RMB 67.611 billion and net assets declined by 4% to RMB 20.295 billion, with notable changes including a decrease in investments in joint ventures and associates, a significant increase in properties held for sale, and an improvement in net current assets Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 39,983,649 | 41,575,049 | -3.8 | | Investment Properties | 19,859,473 | 19,799,320 | +0.3 | | Investments in Joint Ventures | 11,946,749 | 12,766,092 | -6.5 | | Investments in Associates | 5,521,191 | 6,482,131 | -14.8 | | Total Current Assets | 27,627,659 | 34,416,892 | -19.7 | | Properties Held for Sale | 7,602,234 | 4,963,180 | +53.2 | | Properties Under Development | 5,492,290 | 12,981,354 | -57.7 | | Cash and Bank Balances | 1,247,386 | 1,821,303 | -31.5 | | Total Current Liabilities | 24,292,484 | 31,348,063 | -22.5 | | Net Current Assets | 3,335,175 | 3,068,829 | +8.7 | | Net Assets | 20,295,445 | 21,062,660 | -3.6 | | Total Equity | 20,295,445 | 21,062,660 | -3.6 | [Notes to the Financial Statements](index=6&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) This section details the basis of preparation, accounting policies, segment information, and specific financial items, providing context for the condensed consolidated financial statements [Basis of Preparation and Accounting Policies](index=6&type=section&id=3.1%20%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80%E5%8F%8A%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96) The interim financial information is prepared in accordance with HKAS 34 and should be read in conjunction with the 2024 annual financial statements, with no significant impact from newly adopted HKFRS amendments - The condensed consolidated interim financial information is prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"**[10](index=10&type=chunk) - Newly adopted amendments to Hong Kong Financial Reporting Standards, including HKAS 21 "Lack of Exchangeability", had **no significant impact** on the condensed consolidated interim financial information[11](index=11&type=chunk)[12](index=12&type=chunk) [Operating Segment Information](index=7&type=section&id=3.2%20%E7%BB%8F%E8%90%A5%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group operates in three reportable segments: property development, property investment and management, and corporate expenses and others, with property development accounting for 90% of revenue but incurring a loss, while property investment and management generated profit, and over 90% of the Group's revenue and assets are located in mainland China - The Group has three reportable operating segments: **property development, property investment and management, and corporate expenses and others**[13](index=13&type=chunk)[16](index=16&type=chunk) - Over **90% of the Group's revenue and assets are located in mainland China**, thus no further geographical segment information is presented[14](index=14&type=chunk) - Neither in the current nor prior period did revenue from a single external customer account for **10% or more of the Group's total revenue**[15](index=15&type=chunk) H1 2025 Segment Revenue and Performance | Segment | Revenue (RMB thousands) | Share (%) | Performance (RMB thousands) | | :--- | :--- | :--- | :--- | | Property Development | 5,837,347 | 90 | (686,212) | | Property Investment and Management | 630,418 | 10 | 253,299 | | Corporate Expenses and Others | - | 0 | (60,075) | | **Total** | **6,467,765** | **100** | **(492,988)** | [Revenue, Other Income and Gains](index=10&type=section&id=3.3%20%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, total revenue significantly increased by 97% to RMB 6.468 billion, primarily driven by property sales, while other income and gains decreased by 45% to RMB 195.70 million, mainly due to reduced interest and consultancy service income Revenue Composition and Year-on-Year Change | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Property Sales | 5,590,773 | 2,622,288 | +113.2 | | Decoration Engineering Income | 246,574 | 10,737 | +2196.5 | | Property Management Fee Income | 142,436 | 160,362 | -11.2 | | Gross Rental Income | 475,529 | 481,024 | -1.1 | | **Total Revenue** | **6,467,765** | **3,286,864** | **+96.8** | | **Other Income and Gains** | **195,699** | **354,290** | **-44.8** | | Interest Income from Related Parties | 1,957 | 66,379 | -97.0 | | Consultancy Service Income | 119,562 | 147,560 | -19.0 | - **Property sales revenue** was the primary growth driver, increasing from **RMB 2.622 billion in 2024 to RMB 5.591 billion in 2025**[19](index=19&type=chunk) - The decrease in other income and gains was mainly due to a decline in **interest income (especially from related parties) and consultancy service income**[19](index=19&type=chunk) [Finance Costs](index=11&type=section&id=3.4%20%E8%B4%A2%E5%8A%A1%E8%B4%B9%E7%94%A8) For the six months ended June 30, 2025, finance costs decreased by 19.5% year-on-year to RMB 493.84 million, primarily due to reduced interest on bank and related party loans, alongside an increase in capitalized interest Finance Costs Composition and Year-on-Year Change | Finance Cost Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on Bank Loans | 241,263 | 244,039 | -1.1 | | Interest on Related Party Loans | 394,208 | 473,680 | -16.8 | | Total Finance Costs Incurred | 652,409 | 742,258 | -12.1 | | Less: Capitalized Interest | (158,566) | (129,204) | +22.7 | | **Net Finance Costs** | **493,843** | **613,054** | **-19.5** | - Capitalized interest increased, with interest capitalized for properties under development rising from **RMB 112 million in 2024 to RMB 142 million in 2025**[20](index=20&type=chunk) [Impairment of Trade and Other Receivables](index=11&type=section&id=3.5%20%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE%E5%87%8F%E5%80%BC) For the six months ended June 30, 2025, impairment of trade and other receivables significantly increased by 174.7% to RMB 773.94 million, mainly due to substantial impairment provisions made for amounts due from joint ventures and associates, driven by large impairment losses on their property inventories Impairment of Trade and Other Receivables Composition and Year-on-Year Change | Impairment Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loans and Other Receivables, Net | 40,718 | 69,344 | -41.3 | | Amounts Due from Joint Ventures and Associates | 733,220 | 212,375 | +245.3 | | **Total Impairment** | **773,938** | **281,719** | **+174.7** | - Impairment of amounts due from joint ventures and associates significantly increased, primarily due to **large impairment losses on property inventories held by these companies**[21](index=21&type=chunk) [Loss Before Tax](index=12&type=section&id=3.6%20%E9%99%A4%E7%A8%8E%E5%89%8D%E4%BA%8F%E6%8D%9F) For the six months ended June 30, 2025, loss before tax narrowed by 57.9% to RMB 967.57 million, influenced by increased cost of property sales and impairment of receivables, but also by significantly reduced depreciation of right-of-use assets and employee benefit expenses, and the recognition of a net loss on disposal of joint ventures and associates Main Factors Affecting Loss Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Property Sales | 5,189,186 | 2,446,254 | +112.1 | | Fair Value Change of Investment Properties—Right-of-Use Assets | 101,947 | 72,106 | +41.4 | | Impairment of Trade and Other Receivables, Net | 773,938 | 281,719 | +174.7 | | Net Loss on Disposal of Joint Ventures and Associates | 29,161 | - | New | | Depreciation of Right-of-Use Assets (Net) | 543 | 3,588 | -84.9 | | Total Employee Benefit Expenses | 290,108 | 372,771 | -22.2 | | Foreign Exchange Loss/(Gain), Net | 94,594 | (1,993) | From gain to loss | | **Loss Before Tax** | **(967,571)** | **(2,298,117)** | **-57.9** | - Employee benefit expenses (including wages, salaries, and retirement scheme contributions) decreased by **22.2% year-on-year**[22](index=22&type=chunk) - A net loss on disposal of joint ventures and associates of **RMB 29.161 million** was recognized during the period[22](index=22&type=chunk) [Taxation](index=13&type=section&id=3.7%20%E7%A8%8E%E9%A1%B9) For the six months ended June 30, 2025, total taxation was a negative RMB 100.48 million, shifting from an expense to a gain year-on-year, primarily due to significant deferred tax gains and a reversal of land appreciation tax from expense to gain Taxation Composition and Year-on-Year Change | Tax Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | PRC Corporate Income Tax (Expense for the Period) | 190,639 | 129,002 | +47.8 | | PRC Land Appreciation Tax | 15,351 | (142,147) | From gain to expense | | Deferred Tax | (313,269) | (133,406) | +134.8 | | **Total** | **(100,481)** | **(145,885)** | **-31.1** | - The Group had **no assessable profits in Hong Kong** for the period, thus no Hong Kong profits tax provision was made[23](index=23&type=chunk) - Land appreciation tax provision is estimated in accordance with **relevant PRC laws and regulations**[23](index=23&type=chunk) [Loss Per Share](index=13&type=section&id=3.8%20%E6%AF%8F%E8%82%A1%E4%BA%8F%E6%8D%9F) For the six months ended June 30, 2025, both basic and diluted loss per share attributable to owners of the company were RMB 0.0607, narrowing by 53.8% year-on-year due to a reduced loss attributable to owners, with basic and diluted losses being identical as there were no outstanding share options Loss Per Share Data | Indicator | 2025 (RMB) | 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Basic Loss Per Share | (0.0607) | (0.1312) | -53.8 | | Diluted Loss Per Share | (0.0607) | (0.1312) | -53.8 | - Loss per share is calculated based on the **loss attributable to owners of the company** and the **weighted average number of 16,613,686,827 ordinary shares** outstanding during the period[25](index=25&type=chunk)[28](index=28&type=chunk) - Basic and diluted loss per share were the same for H1 2025 as there were **no outstanding share options**[26](index=26&type=chunk) [Trade Receivables](index=15&type=section&id=3.9%20%E5%BA%94%E6%94%B6%E8%B4%B8%E6%AC%BE) As of June 30, 2025, total trade receivables amounted to RMB 75.924 million, a 28.3% decrease from the end of 2024, reflecting the company's strict control over receivables and absence of excessive credit risk concentration Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 month | 18,468 | 41,935 | -55.9 | | 1 to 3 months | 35,275 | 42,833 | -17.6 | | Over 3 months | 22,181 | 21,179 | +4.7 | | **Total** | **75,924** | **105,947** | **-28.3** | - Trade receivables primarily consist of **rental and property management fees**, with an average credit period of one month, non-interest bearing and unsecured[30](index=30&type=chunk) [Trade Payables](index=15&type=section&id=3.10%20%E5%BA%94%E4%BB%98%E8%B4%B8%E6%AC%BE) As of June 30, 2025, total trade payables were RMB 4.256 billion, a 11.9% decrease from the end of 2024, which are non-interest bearing and typically settled within an average of one month Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 month | 3,191,322 | 3,574,109 | -10.8 | | 1 to 3 months | 264,607 | 285,222 | -7.2 | | Over 3 months | 800,106 | 966,915 | -17.3 | | **Total** | **4,256,035** | **4,826,246** | **-11.9** | - Trade payables are **non-interest bearing** and typically settled within an average of one month[32](index=32&type=chunk) [Financial and Business Review](index=16&type=section&id=%E8%B4%A2%E5%8A%A1%E5%8F%8A%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) This section provides an in-depth analysis of the Group's financial performance and business operations for the period, including interim dividend policy, detailed performance analysis, segment performance, and shareholder equity [Interim Dividend](index=16&type=section&id=4.1%20%E4%B8%AD%E6%9C%9F%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 the six months ended **June 30, 2025** (2024: nil)[33](index=33&type=chunk) [H1 2025 Performance Analysis](index=16&type=section&id=4.2%202025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E4%B8%9A%E7%BB%A9%E5%88%86%E6%9E%90) In H1 2025, revenue significantly grew by 97% to RMB 6.468 billion, driven by increased property sales, while other income and gains decreased by 45%, finance costs dropped by 19.5%, and impairment of trade receivables surged by 174.7% due to joint venture property inventory impairment, resulting in a 53.8% narrower loss attributable to owners of RMB 1.008 billion - Revenue increased by **97%** from RMB 3.287 billion in the same period of 2024 to **RMB 6.468 billion in 2025**, primarily due to increased recognition of property sales revenue[35](index=35&type=chunk) - Other income and gains decreased by **45% to RMB 196 million**, mainly due to a reduction of **RMB 98.4 million in interest income** and **RMB 28 million in consultancy service income**[35](index=35&type=chunk) - Finance costs decreased by **19.5% to RMB 494 million**, primarily due to repayment of some bank loans and lower loan interest rates, resulting in a **RMB 112 million reduction in borrowing interest expenses**[36](index=36&type=chunk) - Impairment of trade and other receivables amounted to **RMB 774 million**, of which **RMB 733 million** was due to significant impairment provisions for property inventories of certain joint ventures and associates[36](index=36&type=chunk) - Loss attributable to owners of the company was **RMB 1.008 billion**, a year-on-year decrease of **RMB 1.171 billion**, narrowing by **53.8%**[38](index=38&type=chunk) [Segment Performance](index=17&type=section&id=4.3%20%E4%B8%9A%E5%8A%A1%E5%88%86%E9%83%A8%E8%A1%A8%E7%8E%B0) The property development segment, accounting for 90% of revenue, saw significant growth but recorded a loss due to impairment provisions for joint venture property inventories, while the property investment and management segment, contributing 10% of revenue, experienced a slight decline in revenue and profit, mainly affected by reduced interest and consultancy service income - Property development segment revenue was **RMB 5.837 billion**, accounting for **90% of total revenue**, with significant year-on-year growth primarily due to increased delivery area of properties sold[39](index=39&type=chunk) - The property development segment recorded a **loss of RMB 686 million**, a reduction of **RMB 1.331 billion** from the **RMB 2.017 billion loss** in the prior year, mainly due to significant impairment provisions for property inventories of certain joint ventures and associates[39](index=39&type=chunk) - Property investment and management segment revenue was **RMB 630 million**, accounting for **10% of total revenue**, a slight year-on-year decrease of **4%**, mainly due to reduced rental income from sub-leasing business[40](index=40&type=chunk) - Property investment and management segment profit was **RMB 253 million**, a year-on-year decrease of **RMB 98.9 million**, primarily due to reduced interest income and consultancy service income[40](index=40&type=chunk) [Shareholders' Equity](index=18&type=section&id=4.4%20%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A) As of June 30, 2025, the Group's total shareholders' equity was RMB 16.816 billion, a decrease of RMB 888 million from the end of 2024, primarily attributable to the loss incurred by owners of the company Change in Total Shareholders' Equity | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | 16,816,400 | 17,704,400 | (888,000) | - The decrease in shareholders' equity was mainly due to the **loss attributable to owners of the company of RMB 1.008 billion** recorded by the Group for the six months ended June 30, 2025[41](index=41&type=chunk) [Financial Resources, Liquidity and Capital Structure](index=18&type=section&id=%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90%E3%80%81%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B5%84%E6%9C%AC%E6%9E%B6%E6%9E%84) This section examines the Group's financial resources, liquidity position, and capital structure, including cash balances, borrowings, foreign exchange and interest rate risks, pledged assets, and contingent liabilities [Liquidity and Capital Resources](index=18&type=section&id=5.1%20%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B5%84%E6%9C%AC%E8%B5%84%E6%BA%90) As of June 30, 2025, the Group's cash balance was RMB 1.247 billion, a 32% decrease from the end of 2024, primarily due to payments for property development costs, domestic taxes, and bank loan repayments Change in Cash Balance | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cash Balance | 1,247,400 | 1,821,300 | (573,900) | -32 | | Cash and Bank Balances (including restricted cash) | 2,780,456 | 3,913,093 | (1,132,637) | -29 | | Net Debt | 18,551,000 | 17,744,400 | 806,600 | +4.5 | - The decrease in cash balance was mainly due to payments for **property development costs, domestic taxes, and bank loan repayments**[42](index=42&type=chunk) [Borrowings](index=18&type=section&id=5.2%20%E8%B4%B7%E6%AC%BE) During the period, the Group arranged new bank loans of RMB 460 million, primarily for repaying existing loans, and as of June 30, 2025, total bank loans amounted to RMB 11.103 billion with annual interest rates ranging from 2.65% to 5.28%, while net debt increased by 4.5% to RMB 18.551 billion from the end of 2024 - New bank loans of **RMB 460 million** were arranged during the period, of which **RMB 410 million** were secured bank loans, mainly used to repay existing loans[43](index=43&type=chunk) - As of June 30, 2025, total bank loans amounted to **RMB 11.103 billion**, with annual interest rates ranging from **2.65% to 5.28%**[43](index=43&type=chunk) Overview of Outstanding Loan Repayment Periods | Repayment Period | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within the first year or on demand | 1,390,137 | 1,248,450 | | Within the second year | 1,132,584 | 1,057,100 | | Within the third to fifth year | 12,280,802 | 10,216,690 | | Over five years | 6,527,887 | 9,135,259 | | **Total** | **21,331,410** | **21,657,499** | [Foreign Exchange Risk](index=19&type=section&id=5.3%20%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9) The Group's loans are denominated in USD, RMB, and HKD, exposing it to foreign exchange risk as most operating income is denominated in RMB, but the company considers the risk acceptable and will monitor and hedge it as appropriate - Loans are denominated in **USD, RMB, and HKD**, and as most operating income is denominated in RMB, there is **foreign exchange risk**[45](index=45&type=chunk) - The company considers foreign exchange risk acceptable and will **review and monitor currency risk** from time to time, hedging when appropriate[45](index=45&type=chunk) Outstanding Loans by Denomination Currency | Currency | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | HKD | 163,881 | 182,333 | | RMB | 13,538,942 | 13,677,702 | | USD | 7,628,587 | 7,797,464 | | **Total** | **21,331,410** | **21,657,499** | [Interest Rate Risk](index=19&type=section&id=5.4%20%E5%88%A9%E7%8E%87%E9%A3%8E%E9%99%A9) As of June 30, 2025, 96% of the Group's loans bear floating interest rates, with 65% denominated in RMB, and the company deems the interest rate risk acceptable without hedging due to stable RMB loan interest rate movements - As of June 30, 2025, **96%** (December 31, 2024: 99%) of the Group's loans bore **floating interest rates**[47](index=47&type=chunk) - Of these, **65%** (December 31, 2024: 63%) of floating rate loans were denominated in **RMB**[47](index=47&type=chunk) - The company considers RMB loan interest rate movements to be stable and the interest rate risk acceptable, thus **no hedging is deemed necessary**[47](index=47&type=chunk) [Pledge of Assets](index=19&type=section&id=5.5%20%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had pledged assets totaling RMB 18.578 billion to secure bank loans, primarily comprising investment properties, properties under development, properties held for sale, and restricted cash Total Pledged Assets | Pledged Asset | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Investment Properties | 16,026,000 | 15,999,154 | | Properties Under Development | 1,037,446 | 2,410,032 | | Properties Held for Sale | 1,345,477 | - | | Restricted Cash | 169,455 | 124,520 | | **Total** | **18,578,378** | **18,533,706** | - The amount of properties held for sale pledged as assets increased from **zero at the end of 2024 to RMB 1.345 billion as of June 30, 2025**[48](index=48&type=chunk) [Contingent Liabilities](index=20&type=section&id=5.6%20%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) As of June 30, 2025, the Group provided mortgage loan guarantees for property buyers with an outstanding amount of RMB 2.504 billion, a 15.2% year-on-year decrease, and also provided financing guarantees for joint ventures with RMB 708 million drawn, with directors deeming the fair value of guarantees immaterial and potential losses covered by collateral, thus no provisions were made - The Group provided mortgage loan guarantees for property buyers, with outstanding guarantees of **RMB 2.504 billion** as of June 30, 2025 (December 31, 2024: RMB 2.954 billion), a year-on-year decrease of **15.2%**[49](index=49&type=chunk) - The Group provided financing guarantees for joint ventures with a maximum guarantee amount of **USD 78.583 million and RMB 200 million**, of which **RMB 708 million** had been drawn (December 31, 2024: RMB 722 million)[49](index=49&type=chunk) - The directors believe the fair value of the guarantees is immaterial and that collateral can cover outstanding mortgage principal, interest, and penalties, thus **no provisions have been made**[49](index=49&type=chunk) [Business Review and Outlook](index=21&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE%E5%8F%8A%E5%B1%95%E6%9C%9B) This section reviews the Group's land bank, performance of its property investment and management business, and provides an outlook on the real estate market and the Group's future strategies [Land Bank](index=21&type=section&id=6.1%20%E5%9C%9F%E5%9C%B0%E5%82%A8%E5%A4%87) As of June 30, 2025, the Group's total land bank in mainland China was 11.57 million square meters, a decrease of approximately 7.6% from the end of 2024 - As of June 30, 2025, the Group's total land bank in mainland China amounted to **11.57 million square meters**[50](index=50&type=chunk) - The land bank decreased by approximately **7.6%** compared to the end of December 2024[50](index=50&type=chunk) [Property Investment and Management Business](index=21&type=section&id=6.2%20%E7%89%A9%E4%B8%9A%E6%8A%95%E8%B5%84%E5%8F%8A%E7%AE%A1%E7%90%86%E4%B8%9A%E5%8A%A1) The Group focuses on investment properties in prime locations within economically developed cities, including commercial and office projects, industrial parks, and rental housing, with total GFA of operational investment properties increasing by 2.5% year-on-year, while total rental and related services income slightly decreased, and both commercial/office projects and industrial parks demonstrated high occupancy rates and received industry accolades, with the "Gemdale Strawberry Community" economic apartment rental business achieving approximately 94% occupancy - As of June 30, 2025, the Group (including joint ventures and associates) held approximately **3.246 million square meters** of total GFA of operational investment properties (including sub-leased properties) in mainland China, a year-on-year increase of **2.5%**[51](index=51&type=chunk) - During the period, total rental and related services income was approximately **RMB 1.11 billion**, a year-on-year decrease of **0.6%**[51](index=51&type=chunk) - Commercial and office projects had a total GFA of approximately **1.17 million square meters**, generating total rental and related services income of approximately **RMB 654 million** during the period, a year-on-year increase of **7.9%**; Shenzhen Weixin Science Park achieved occupancy rates of approximately **95% (Phase 1 & 2) and 89% (Phase 3)**[51](index=51&type=chunk) - Industrial parks had a total GFA of approximately **1.82 million square meters**, generating total rental and related services income of approximately **RMB 364 million** during the period, with an occupancy rate of approximately **89%** for stably operating industrial parks[52](index=52&type=chunk) - The "Gemdale Strawberry Community" economic apartment rental business recorded income of approximately **RMB 96 million** during the period, with an occupancy rate of approximately **94%** for stably operating communities[54](index=54&type=chunk) [Outlook](index=22&type=section&id=6.3%20%E5%B1%95%E6%9C%9B) In H1 2025, the central government continued its "city-specific, precise regulation" real estate policies, including easing purchase restrictions and lowering down payment ratios, and increased support for development loans; the Chinese real estate sector is expected to gradually recover in H2 2025 amid policy support, continued downward interest rate trends, and restored buyer confidence, with the Group focusing on financial stability and liquidity safety through flexible pricing strategies, brand enhancement, and accelerated sales collection - In H1 2025, the central government continued its "city-specific, precise regulation" approach, optimizing real estate policies including **easing purchase restrictions, lowering down payment ratios, and increasing support for development loans**[55](index=55&type=chunk) - The Chinese real estate sector is expected to show signs of recovery in H2 2025, supported by **government policies, a continued downward trend in interest rates, and restored buyer confidence**[56](index=56&type=chunk) - The Group will focus on maintaining **financial stability and liquidity safety**, ensuring cash flow through flexible pricing strategies, offering quality products, enhancing brand image, and accelerating sales collection to maintain its leading position in the industry[56](index=56&type=chunk) [Corporate Governance and Other Information](index=23&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers the Group's compliance with corporate governance codes, standards for directors' securities transactions, dealings in listed securities, employee and remuneration policies, the audit committee's role, risk management and internal control, and report publication details [Compliance with Corporate Governance Code](index=23&type=section&id=7.1%20%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99%E9%81%B5%E5%AE%88%E6%83%85%E5%86%B5) The company has adopted and complied with all mandatory disclosure requirements and applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, except for provisions C.1.5 and F.1.3 regarding independent non-executive directors' and the Board Chairman's attendance at general meetings, due to prior business commitments - The company has adopted and complied with all mandatory disclosure requirements and applicable code provisions of the **Corporate Governance Code** as set out in Appendix C1 of the Listing Rules[57](index=57&type=chunk) - Code provisions C.1.5 (attendance of independent non-executive directors at general meetings) and F.1.3 (attendance of the Board Chairman at annual general meetings) were **not complied with** due to prior business commitments of the relevant directors[57](index=57&type=chunk) [Standard Code for Securities Transactions by Directors](index=23&type=section&id=7.2%20%E8%91%A3%E4%BA%8B%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors and other specified senior management complied with this code during the reporting period - The company has adopted the **Standard Code** as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[58](index=58&type=chunk) - All directors and other specified senior management complied with the Standard Code during the six months ended **June 30, 2025**[58](index=58&type=chunk) [Dealings in Listed Securities](index=23&type=section&id=7.3%20%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93) 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 on The Stock Exchange of Hong Kong Limited - 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 on **The Stock Exchange of Hong Kong Limited**[59](index=59&type=chunk) [Employees and Remuneration Policy](index=23&type=section&id=7.4%20%E9%9B%87%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group employed approximately 2,100 staff, a reduction of about 500 from the same period in 2024, offering competitive remuneration and benefits, with directors' emoluments determined by the Remuneration Committee and the Board based on responsibilities, company performance, and remuneration policy - As of June 30, 2025, the Group employed approximately **2,100 staff** (June 30, 2024: approximately 2,600), representing a reduction of approximately **500 employees**[60](index=60&type=chunk) - Employee remuneration is maintained at a **competitive level**, with benefits including MPF, housing provident fund, insurance and medical insurance, and education and training allowance schemes[60](index=60&type=chunk) - Directors' emoluments are determined by the **Remuneration Committee and the Board** based on directors' responsibilities, the Group's financial performance, and the company's remuneration policy[60](index=60&type=chunk) [Audit Committee](index=24&type=section&id=7.5%20%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing the Group's accounting principles, audit, internal controls, and financial reporting matters, and has reviewed this interim report, though the unaudited interim results have not yet been reviewed by external auditor Ernst & Young - The Audit Committee comprises Mr Xia Xinping (Chairman), Mr Xu Zhaozhong, and Mr Jiang Shangyi, all of whom are **independent non-executive directors**[61](index=61&type=chunk) - The Audit Committee has reviewed the **accounting principles and practices** adopted by the Group and discussed audit, internal control, and financial reporting matters, including this interim report[61](index=61&type=chunk) - The Group's unaudited interim results for the six months ended June 30, 2025, have **not yet been reviewed by external auditor Ernst & Young**[61](index=61&type=chunk) [Risk Management and Internal Control](index=24&type=section&id=7.6%20%E9%A3%8E%E9%99%A9%E7%AE%A1%E7%90%86%E5%8F%8A%E5%86%85%E9%83%A8%E7%9B%91%E6%8E%A7) The Board is responsible for continuously monitoring and improving the Group's risk management and internal control systems, with the Audit Committee regularly reviewing their effectiveness, and the independent internal audit department annually assesses these systems, reporting findings to the Audit Committee, as the Group continues to enhance its framework for sustainable development - The Board is responsible for continuously monitoring and improving the Group's **risk management and internal control systems** to safeguard company assets and shareholders' interests[62](index=62&type=chunk) - The internal audit department, independent of the Group's operating businesses, reviews the effectiveness and adequacy of risk management and internal control procedures at least **once a year**[62](index=62&type=chunk) - The Group will continue to enhance its **risk management and internal control systems**, standardize implementation, and strengthen internal supervision and inspection to promote sustainable development[62](index=62&type=chunk) [Publication of Report](index=25&type=section&id=7.7%20%E6%8A%A5%E5%91%8A%E5%88%8A%E8%BD%BD) This performance announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company, and the 2025 interim report will be dispatched to shareholders and available on these websites in due course - This performance announcement has been published on the websites of **Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk)** and the **company (www.gemdalepi.com)**[63](index=63&type=chunk) - The 2025 interim report will be dispatched to the company's shareholders and available on the aforementioned websites **in due course**[63](index=63&type=chunk)

[Supplementary Announcement Regarding the 2024 Annual Report](index=1&type=section&id=Supplementary%20Announcement%20regarding%20the%202024%20Annual%20Report) [Purpose and Background of the Announcement](index=1&type=section&id=Purpose%20and%20Background%20of%20the%20Announcement) This announcement provides supplementary information on continuing connected transactions disclosed in Gemdale Properties and Investment Corporation Limited's 2024 annual report, in accordance with Hong Kong Listing Rules 14A.71(2) and (5) - This announcement supplements Gemdale Properties and Investment Corporation Limited's 2024 annual report, primarily providing additional information on continuing connected transactions[3](index=3&type=chunk) - The supplement is based on Listing Rules 14A.71(2) and (5)[3](index=3&type=chunk) [Details of Continuing Connected Transactions](index=1&type=section&id=Details%20of%20Continuing%20Connected%20Transactions) The company entered into a three-year Shanghai Xinhua Road Lease Framework Agreement with Shanghai Jincheng, a subsidiary of its ultimate controlling shareholder, to lease properties on Shanghai Xinhua Road, effective January 1, 2024 [Parties and Nature of the Transaction](index=1&type=section&id=Parties%20and%20Nature%20of%20the%20Transaction) - The parties involved are Shanghai Jincheng (as landlord) and the Company, its subsidiaries, and/or its associates (as tenants)[3](index=3&type=chunk) - The transaction involves the lease of certain properties located on Shanghai Xinhua Road[3](index=3&type=chunk) - The lease term is **3 years**, effective from January 1, 2024[3](index=3&type=chunk) [Relationship of Connected Parties](index=1&type=section&id=Relationship%20of%20Connected%20Parties) - Shanghai Jincheng is a subsidiary of Gemdale Corporation, which is the ultimate controlling shareholder of the Company[3](index=3&type=chunk) - Under the Listing Rules, Shanghai Jincheng is identified as a connected person of the Company, making this lease agreement a continuing connected transaction[3](index=3&type=chunk) [Impact on the 2024 Annual Report](index=1&type=section&id=Impact%20on%20the%202024%20Annual%20Report) This supplementary information does not affect other details within the 2024 annual report, with the remaining content unchanged - This supplementary information does not impact other data in the 2024 annual report[3](index=3&type=chunk) - Except for the content disclosed in this announcement, the remaining content of the 2024 annual report remains unchanged[3](index=3&type=chunk) [Board of Directors Information](index=1&type=section&id=Board%20of%20Directors%20Information) - As of August 22, 2025, the Board of Directors comprises **four Executive Directors**, **two Non-executive Directors**, and **three Independent Non-executive Directors**[5](index=5&type=chunk) - Executive Directors include Mr Huang Juncan, Mr Xu Jiajun, Mr Li Ronghui, and Mr Wei Chuanjun[5](index=5&type=chunk) - Non-executive Directors include Mr Loh Lian Huat and Ms Zhang Feiyun[5](index=5&type=chunk) - Independent Non-executive Directors include Mr Hui Chiu Chung, Mr Jiang Shangyi, and Mr Xia Xinping[5](index=5&type=chunk)

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責 ， 對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明 ， 並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任 。 BEIJING TONG REN TANG CHINESE MEDICINE COMPANY LIMITED 北 京 同 仁 堂 國 藥 有 限 公 司 （ 於 香 港 註 冊 成 立 之 有 限 公 司 ） （ 股 份 代 號 ： 3613） 2025 年 中 期 業 績 公 告 北 京 同 仁 堂 國 藥 有 限 公 司 （ 「 本公司 」 ） 董 事 會 （ 「 董事會 」）欣然宣佈本 公 司 及 其 附 屬 公 司 截 至 2025年 6月 30日 止 六 個 月 期 間 之 未 經 審 計 業 績 。 本 公 告 列 載 本 公 司 2025 年 中 期 報 告 全 文 ， 乃 符 合 香 港 聯 合 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）對 本 公 告 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 Greentown Service Group Co. Ltd. 綠城服務集團有限公司 （根據開曼群島法律註冊成立的有限公司） （股份代號：2869） 截 至2025年6月30日 止 六 個 月 未 經 審 核 中 期 業 績 公 告 及 變 更 公 司 秘 書 及 法 律 程 序 代 理 人 綠 城 服 務 集 團 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」、「集 團」）截 至2025年6月30日 止 六 個 月（「期 內」）的 未 經 審 核 綜 合 財 務 業 績，連 同 截 至2024年6月30日 ...

[Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%B8%83) [Performance Summary](index=1&type=section&id=%E6%A5%AD%E7%B8%BE) Net profit attributable to owners before tax, revaluation, and depreciation rose **30%** to **HK$39 million** for the six months ended June 30, 2025 Net Profit Attributable to Owners of the Company Before Tax, Revaluation, and Depreciation of Land, Property, and Equipment | Metric | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Owners of the Company Before Tax, Revaluation, and Depreciation of Land, Property, and Equipment | 38,646 | 29,622 | +30% | [Interim Dividend](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend an interim dividend for the six months ended June 30, 2025 (2024: nil)[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) Total revenue grew **4.6%** to **HK$334,338 thousand** for the six months ended June 30, 2025, but loss before tax expanded to **HK$135,077 thousand**, resulting in a **HK$147,561 thousand** loss for the period Key Figures from Condensed Consolidated Statement of Profit or Loss | Metric | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total Revenue | 334,338 | 319,575 | | Gross Profit | 73,691 | 56,890 | | Impairment Loss on Fair Value of Investment Properties | (154,800) | (92,232) | | Administrative Expenses | (30,842) | (31,270) | | Finance Costs | (25,542) | (33,503) | | Loss Before Tax | (135,077) | (98,835) | | Loss for the Period | (147,561) | (106,520) | | Loss Attributable to Owners of the Company | (79,376) | (54,034) | | Basic Loss Per Share (HK cents) | (32.83) | (22.35) | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%B8%BD%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Other comprehensive income of **HK$121,222 thousand** from foreign operations' exchange differences significantly reduced total comprehensive expense to **HK$26,238 thousand** for the six months ended June 30, 2025, from **HK$120,464 thousand** in the prior year Key Figures from Condensed Consolidated Statement of Comprehensive Income | Metric | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loss for the Period | (147,561) | (106,520) | | Exchange Differences Arising from Translation of Foreign Operations | 121,222 | (13,773) | | Other Comprehensive Income (Expense) for the Period | 121,323 | (13,944) | | Total Comprehensive Expense for the Period | (26,238) | (120,464) | | Total Comprehensive Income (Expense) Attributable to Owners of the Company | (32,433) | (59,430) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets less current liabilities were **HK$8,861,491 thousand**, a slight decrease from December 31, 2024, with non-current assets primarily comprising property, plant and equipment, and investment properties Key Figures from Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 9,115,643 | 9,213,584 | | Current Assets | 228,427 | 266,941 | | Current Liabilities | 482,579 | 528,467 | | Net Current Liabilities | (254,152) | (261,526) | | Total Assets Less Current Liabilities | 8,861,491 | 8,952,058 | | Equity Attributable to Owners of the Company | 4,013,125 | 4,045,558 | | Total Equity | 8,108,973 | 8,135,211 | | Non-current Liabilities | 752,518 | 816,847 | [Notes to the 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%E9%99%84%E8%A8%BB) [Basis of Preparation](index=5&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the HKEX Listing Rules, consistent with the statutory annual consolidated financial statements for the year ended December 31, 2024 - Financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules[8](index=8&type=chunk) - Financial information for the year ended December 31, 2024, has been delivered to the Companies Registry, with an unqualified auditor's report[8](index=8&type=chunk) [Significant Accounting Policies](index=5&type=section&id=2.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) These condensed consolidated financial statements are prepared on a historical cost basis, except for investment properties and certain financial instruments measured at fair value, with consistent accounting policies and no material impact from HKFRS amendments - Financial statements are prepared on a historical cost basis, excluding investment properties and some financial instruments[9](index=9&type=chunk) - Accounting policies adopted for the period are consistent with the prior year, and amendments to HKFRS have no material impact on financial position and performance[9](index=9&type=chunk)[11](index=11&type=chunk) [Revenue](index=6&type=section&id=3.%20%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, total revenue was **HK$334,338 thousand**, primarily from hotel operating and property rental income, with hotel revenue being the largest contributor Revenue Stream Details | Revenue Stream | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hotel Operating Revenue | 268,032 | 259,757 | | Property Rental Income | 66,281 | 59,818 | | Dividend Income | 25 | - | | **Total Revenue** | **334,338** | **319,575** | [Segment Information](index=7&type=section&id=4.%20%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's operating segments include hotel services, property investment, and securities investment, with hotel services showing positive segment results while property investment recorded a significant loss for the six months ended June 30, 2025 - The Chairman of the Company is the chief operating decision maker, and segment information is used for resource allocation and performance assessment[13](index=13&type=chunk) - Operating and reportable segments include hotel services (9 hotels), property investment (3 major properties), and securities investment[14](index=14&type=chunk) Segment Revenue and Results | Segment | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Segment Results (2025) (HK$ thousand) | Segment Results (2024) (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Hotel Services | 268,032 | 259,757 | 9,353 | (1,066) | | Property Investment | 66,281 | 59,818 | (90,487) | (34,276) | | Securities Investment | 25 | - | 25 | - | | **Total** | **334,338** | **319,575** | **(81,109)** | **(35,342)** | [Finance Costs](index=9&type=section&id=5.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, total finance costs were **HK$25,542 thousand**, primarily from bank loan interest, representing a **23.8%** year-on-year decrease Finance Costs Details | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on Bank Loans | 23,819 | 31,657 | | Interest on Amounts Due to a Fellow Subsidiary | 1,723 | 1,846 | | **Total Finance Costs** | **25,542** | **33,503** | [Income Tax Expense](index=9&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) For the six months ended June 30, 2025, income tax expense was **HK$12,484 thousand**, mainly from current tax in Hong Kong and the UK, increasing by **62.4%** year-on-year Income Tax Expense Details | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Tax - Hong Kong | 9,410 | 7,070 | | Current Tax - United Kingdom | 4,231 | 2,459 | | Underprovision in Prior Years (Hong Kong) | 111 | - | | Deferred Tax | (1,268) | (1,844) | | **Total Income Tax Expense** | **12,484** | **7,685** | - Hong Kong profits tax rate is **16.5%**, while China and UK profits tax are recognized based on management's estimated weighted average annual income tax rate[16](index=16&type=chunk)[17](index=17&type=chunk) [Loss for the Period Has Been Arrived at After Charging (Crediting) Items](index=10&type=section&id=%E6%9C%AC%E6%9C%9F%E8%99%A7%E6%90%8D%E7%B6%93%E5%B7%B2%E6%89%A3%E9%99%A4(%E8%A8%88%E5%8F%8A)%E4%BB%A5%E4%B8%8B%E9%A0%85%E7%9B%AE) For the six months ended June 30, 2025, the loss for the period included **HK$83,192 thousand** in depreciation of property, plant and equipment and credited **HK$1,487 thousand** in interest income from bank deposits Loss for the Period Has Been Arrived at After Charging (Crediting) Items | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of Right-of-Use Assets | 384 | 381 | | Depreciation of Property, Plant and Equipment | 83,192 | 82,458 | | Interest Income from Bank Deposits | (1,487) | (2,981) | | Loss on Disposal of Property, Plant and Equipment | 82 | 2,497 | [Loss Per Share](index=10&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, basic loss per share expanded to **32.83 HK cents** from **22.35 HK cents** in the prior period, primarily due to an increase in loss attributable to owners of the company Loss Per Share Data | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (HK$ thousand) | 79,376 | 54,034 | | Number of Shares in Issue (thousands) | 241,766 | 241,766 | | Basic Loss Per Share (HK cents) | (32.83) | (22.35) | - No potential ordinary shares were outstanding during the period or prior period, thus diluted loss per share is not presented[19](index=19&type=chunk) [Trade and Other Receivables](index=11&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E5%B8%B3%E6%AC%BE%EF%BC%88%E5%AE%A2%E6%88%B6%E5%90%88%E7%B4%84%EF%BC%89) As of June 30, 2025, total trade and other receivables decreased to **HK$13,022 thousand** from **HK$15,454 thousand** on December 31, 2024, with the Group granting 30 to 60 days credit to hotel travel agents and certain customers Trade and Other Receivables Details | Item | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables (from contracts with customers) | 6,999 | 10,088 | | Lease Receivables | 2,534 | 2,250 | | Other Receivables | 3,489 | 3,116 | | **Total** | **13,022** | **15,454** | Ageing Analysis of Trade and Lease Receivables | Ageing | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Not yet due | 9,280 | 12,139 | | Overdue (0-30 days) | 80 | 104 | | Overdue (31-60 days) | 173 | 94 | | Overdue (61-90 days) | - | 1 | | **Total** | **9,533** | **12,338** | [Trade and Other Payables and Accruals](index=11&type=section&id=10.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E5%B8%B3%E6%AC%BE%E5%8F%8A%E9%A0%90%E6%8F%90%E5%B8%B3%E6%AC%BE) As of June 30, 2025, total trade and other payables and accruals decreased to **HK$49,498 thousand** from **HK$60,590 thousand** on December 31, 2024 Trade and Other Payables and Accruals Details | Item | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 4,748 | 5,288 | | Other Payables and Accruals | 44,750 | 55,302 | | **Total** | **49,498** | **60,590** | Ageing Analysis of Trade Payables | Ageing | As of June 30, 2025 (HK$ thousand) | As of December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0-30 days | 4,740 | 5,281 | | 31-60 days | 7 | 6 | | 61-90 days | 1 | 1 | | **Total** | **4,748** | **5,288** | [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E4%B9%8B%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Performance](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E8%A1%A8%E7%8F%BE) [Hotel Business](index=12&type=section&id=1.%20%E9%85%92%E5%BA%97%E6%A5%AD%E5%8B%99) Hotel business revenue grew **3%** to **HK$268 million**, with Grand Hotel Group's net profit attributable to owners increasing **43%**, and Royal Scot Hotel's annual rent rising **34%** - The Group's hotel operating revenue was **HK$268 million**, a **3%** year-on-year increase[24](index=24&type=chunk) - The Group owns nine hotels, totaling approximately 3,042 rooms, making it one of Hong Kong's largest hotel groups[24](index=24&type=chunk) Net Profit Attributable to Owners of Grand Hotel Group | Metric | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Owners of Grand Hotel Group Before Tax, Revaluation, and Depreciation of Land, Property, and Equipment | 59,295 | 41,562 | +43% | - Grand Hotel Group's total revenue increased by **5%** year-on-year to approximately **HK$258 million**[27](index=27&type=chunk) - The annual rent for Royal Scot Hotel in London increased by **34%** from **GBP3,546,000** to **GBP4,737,000**[27](index=27&type=chunk) [Commercial Property Rental Income](index=14&type=section&id=2.%20%E5%95%86%E6%A5%AD%E7%89%A9%E6%A5%AD%E7%A7%9F%E9%87%91%E6%94%B6%E5%85%A5) Commercial property rental income totaled **HK$66 million**, a **10%** increase year-on-year, with Hong Kong commercial properties at 633 King's Road and Shun Ho Commercial Building achieving **91%** and **77%** occupancy rates respectively - Commercial property rental income was **HK$66 million**, a **10%** year-on-year increase[28](index=28&type=chunk) Occupancy Rate of Hong Kong Commercial Properties | Property | Occupancy Rate | | :--- | :--- | | 633 King's Road | 91% | | Shun Ho Commercial Building | 77% | [Liquidity](index=14&type=section&id=%E8%B3%87%E9%87%91%E6%B5%81%E5%8B%95) As of June 30, 2025, the Group's overall debt decreased to **HK$955 million** from **HK$1,060 million** on December 31, 2024, with a gearing ratio of **12%**, while facing foreign exchange risks and employing 647 staff Overall Debt and Gearing Ratio | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Overall Debt (HK$ thousand) | 955,000 | 1,060,000 | | Gearing Ratio | 12% | 13% | - Bank loans primarily bear interest at floating rates denominated in HKD and GBP, exposing the Group to foreign exchange risk[30](index=30&type=chunk) - The Group has a total of 647 employees, with remuneration and benefits determined by market conditions[30](index=30&type=chunk) [Key Business Achievements](index=15&type=section&id=%E9%87%8D%E9%BB%9E%E6%A5%AD%E5%8B%99%E6%88%90%E7%B8%BE) The Group achieved **5%** total revenue growth to **HK$334 million**, maintaining over **90%** average hotel occupancy, and securing a **34%** increase in Royal Scot Hotel's annual rent - Hong Kong overnight visitor arrivals reached approximately **11.3 million**, a **6.6%** year-on-year increase, but remained below pre-pandemic levels[31](index=31&type=chunk) - Per capita spending by Chinese tourists remains below pre-pandemic levels, with tourism recovery affected by the expensive HKD against RMB and declining per capita spending[31](index=31&type=chunk) - The Group's average hotel occupancy rate consistently exceeded **90%**, with hotel revenue growing **3%** and total revenue growing **5%**[31](index=31&type=chunk) - The annual rent for Royal Scot Hotel in London successfully increased by **34%** from **GBP3,546,000** to **GBP4,737,000**[32](index=32&type=chunk) - Wood Street Hotel in London has been approved for renovation into a luxury hotel with approximately 216 rooms[32](index=32&type=chunk) [Outlook](index=15&type=section&id=%E5%B1%95%E6%9C%9B%E6%9C%AA%E4%BE%86) The Group holds nine revenue-generating hotels and the London Wood Street Hotel renovation project, but future hotel and rental income face challenges from China's weak economy, expensive HKD against RMB, and US-China trade tensions, though multi-entry visa policies in major Chinese cities offer potential encouragement - The Group owns nine revenue-generating hotels and the London Wood Street Hotel renovation project[33](index=33&type=chunk) - Tourism recovery is affected by China's weak economy and the expensive HKD against RMB, with Chinese tourists tending towards day trips to the Greater Bay Area[33](index=33&type=chunk) - Commercial property occupancy rates are impacted by the US-China trade war and declining Hong Kong import/export volumes[33](index=33&type=chunk) - Management will continue efforts to increase revenue and control costs to address challenges in hotel business and rental income[34](index=34&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=15&type=section&id=%E8%B3%BC%E5%85%A5%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[35](index=35&type=chunk) [Corporate Governance](index=16&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) [Compliance with Corporate Governance Code](index=16&type=section&id=(a)%20%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, with a deviation where the Chairman and Chief Executive are the same person, an arrangement the Board believes ensures stable leadership and cost savings - The company complied with the Corporate Governance Code, but the Chairman and Chief Executive are the same person, Mr. Cheng Kai Man, deviating from Code Provision C.2.1[36](index=36&type=chunk) - The Board believes this dual role ensures stable and consistent leadership for the company and significantly reduces costs[36](index=36&type=chunk) [Compliance with Model Code](index=16&type=section&id=(b)%20%E9%81%B5%E5%AE%88%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance throughout the period - The company adopted the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code during the period[37](index=37&type=chunk) [Review by Audit Committee](index=16&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E4%B9%8B%E5%AF%A9%E9%96%B1) The Audit Committee reviewed the Group's unaudited financial results for the six months ended June 30, 2025 - The Audit Committee reviewed the Group's unaudited financial results for the six months ended June 30, 2025[38](index=38&type=chunk) [Board of Directors Information](index=16&type=section&id=%E6%96%BC%E6%9C%AC%E5%85%AC%E5%91%8A%E6%97%A5%E6%9C%9F%EF%BC%8C%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1%E5%8C%85%E6%8B%AC) As of the announcement date, the Board comprises four executive directors (including Chairman Mr. Cheng Kai Man), one non-executive director, and three independent non-executive directors - The Board of Directors includes four executive directors (Mr. Cheng Kai Man as Chairman), one non-executive director, and three independent non-executive directors[39](index=39&type=chunk)

[Performance Overview](index=1&type=section&id=%E6%A5%AD%E7%B8%BE) [Interim Results Summary](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, net profit attributable to owners, before revaluation and depreciation, increased by 29% year-on-year to HK$79 million Interim Results Summary | Metric | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | Change | | :--- | :--- | :--- | :--- | | Loss after tax and non-controlling interests | (138,175) | (92,837) | | | Add: Revaluation loss | 153,355 | 90,787 | | | Add: Depreciation of property, plant and equipment | 63,486 | 62,914 | | | Net profit attributable to owners before revaluation and depreciation | 78,666 | 60,864 | +29% | [Interim Dividend](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (Six months ended June 30, 2024: Nil)[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's total revenue grew to HK$334,338 thousand, but the period's loss widened to HK$145,255 thousand due to fair value impairment of investment properties Key Data from Condensed Consolidated Statement of Profit or Loss | Metric | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Revenue | 334,338 | 319,575 | | Cost of sales | (2,234) | (1,750) | | Other service costs | (176,964) | (180,129) | | Gross profit | 73,691 | 56,890 | | Fair value impairment of investment properties | (154,800) | (92,232) | | Administrative expenses | (30,223) | (30,573) | | Finance costs | (23,855) | (31,732) | | Loss before tax | (132,771) | (96,368) | | Income tax expense | (12,484) | (7,685) | | Loss for the period | (145,255) | (104,053) | | Loss attributable to owners of the Company | (138,175) | (92,837) | | Basic loss per share (HK cents) | (27.01) | (18.15) | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%B8%BD%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The loss for the period was HK$145,255 thousand, but other comprehensive income of HK$121,222 thousand from exchange differences on translating foreign operations significantly reduced the total comprehensive expense to HK$30,192 thousand Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Loss for the period | (145,255) | (104,053) | | Fair value (loss) gain on equity investments | (6,159) | 455 | | Exchange differences on translation of foreign operations | 121,222 | (13,773) | | Other comprehensive income (expense) for the period | 115,063 | (13,318) | | Total comprehensive expense for the period | (30,192) | (117,371) | | Total comprehensive (expense) income attributable to owners of the Company | (56,378) | (102,306) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets slightly decreased, non-current assets remained stable, and a reduction in current liabilities narrowed the net current liabilities Key Data from Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Property, plant and equipment | 4,585,743 | 4,619,901 | | Investment properties | 4,507,845 | 4,571,490 | | Total non-current assets | 9,153,831 | 9,258,032 | | Bank balances and cash | 198,476 | 234,982 | | Total current assets | 227,866 | 266,347 | | Total current liabilities | 436,583 | 484,744 | | Net current liabilities | (208,717) | (218,397) | | Equity attributable to owners of the Company | 6,970,034 | 7,026,412 | | Bank loans (non-current) | 566,121 | 626,721 | [Notes to the Financial Statements](index=5&type=section&id=%E9%99%84%E8%A8%BB) [Basis of Preparation](index=5&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with HKAS 34 issued by the HKICPA and the disclosure requirements of Appendix D2 of the HKEX Listing Rules - These condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 ("Interim Financial Reporting") issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk) [Principal Accounting Policies](index=5&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The financial statements are prepared on a historical cost basis, except for investment properties and certain financial instruments, with no material impact from new HKFRS amendments - The condensed consolidated financial statements have been prepared on the historical cost basis, except for investment properties and certain financial instruments which are measured at fair values[9](index=9&type=chunk) - The application of the amendments to Hong Kong Financial Reporting Standards in the current period has had **no material effect** on the amounts reported in these condensed consolidated financial statements and/or disclosures set out in these condensed consolidated financial statements[11](index=11&type=chunk) [Revenue Composition](index=6&type=section&id=%E6%94%B6%E5%85%A5) The Group's revenue, primarily from hotel operations, property rental, and dividends, grew by 4.6% year-on-year to HK$334,338 thousand Breakdown of Revenue | Revenue Source | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Income from hotel operations | 268,032 | 259,757 | | Property rental income | 66,281 | 59,818 | | Dividend income | 25 | - | | **Total Revenue** | **334,338** | **319,575** | [Segment Information](index=7&type=section&id=%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's operating segments include hotel services, property investment, and securities investment, with the hotel segment achieving profitability while property investment incurred losses due to revaluation - The Group’s operating and reportable segments are determined based on information reported to the chief operating decision-maker (the Chairman of the Company) for the purposes of resource allocation and performance assessment, and are categorised as follows: hotel services, property investment, and securities investment[13](index=13&type=chunk)[14](index=14&type=chunk) Segment Revenue and Results | Segment | 2025 Revenue (in thousands of HKD) | 2024 Revenue (in thousands of HKD) | 2025 Results (in thousands of HKD) | 2024 Results (in thousands of HKD) | | :--- | :--- | :--- | :--- | :--- | | Hotel services | 268,032 | 259,757 | 9,353 | (1,066) | | Property investment | 66,281 | 59,818 | (90,487) | (34,276) | | Securities investment | 25 | - | 25 | - | | **Total** | **334,338** | **319,575** | **(81,109)** | **(35,342)** | [Finance Costs](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs for the period, mainly comprising interest on bank loans, decreased to HK$23,855 thousand Breakdown of Finance Costs | Cost Item | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Interest on bank loans | 23,819 | 31,657 | | Interest on amount due to an intermediate holding company | 36 | 75 | | **Total Finance Costs** | **23,855** | **31,732** | [Income Tax Expense](index=9&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) The income tax expense for the period was HK$12,484 thousand, primarily from current taxes in Hong Kong and the UK, with the Hong Kong profits tax rate at 16.5% Breakdown of Income Tax Expense | Tax Type | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Current tax: Hong Kong | 9,410 | 7,070 | | Current tax: United Kingdom | 4,231 | 2,459 | | Under-provision in prior years: Hong Kong | 111 | - | | Deferred tax | (1,268) | (1,844) | | **Total Income Tax Expense** | **12,484** | **7,685** | - The annual tax rate used for the six months ended June 30, 2025 (Hong Kong Profits Tax) was **16.5%** (Six months ended June 30, 2024: 16.5%)[16](index=16&type=chunk) [Loss for the Period Has Been Arrived at After Charging/Crediting](index=10&type=section&id=%E6%9C%AC%E6%9C%9F%E8%99%A7%E6%90%8D%E7%B6%93%E5%B7%B2%E6%89%A3%E9%99%A4(%E8%A8%88%E5%8F%8A)%E4%BB%A5%E4%B8%8B%E9%A0%85%E7%9B%AE) The loss for the period was arrived at after charging depreciation of property, plant and equipment of HK$83,192 thousand and crediting bank interest income of HK$1,487 thousand Items Charged/Credited to Loss for the Period | Item | For the six months ended June 30, 2025 (in thousands of HKD) | For the six months ended June 30, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 384 | 381 | | Depreciation of property, plant and equipment | 83,192 | 82,458 | | Interest income from bank deposits | (1,487) | (2,981) | | Loss on disposal of property, plant and equipment | 82 | 2,497 | [Dividend Policy](index=10&type=section&id=%E8%82%A1%E6%81%AF) The Board resolved not to declare or recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board of Directors has resolved not to declare or recommend the payment of an interim dividend for the six months ended June 30, 2025 and June 30, 2024[20](index=20&type=chunk) [Loss Per Share](index=10&type=section&id=%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) Basic loss per share for the six months ended June 30, 2025, widened to 27.01 HK cents from 18.15 HK cents in the prior year period, due to an increased loss for the period - The calculation of basic loss per share is based on the loss for the period attributable to owners of the Company of **HK$138,175,000** (Six months ended June 30, 2024: HK$92,837,000) and 511,613,000 shares in issue during the period[21](index=21&type=chunk) Loss Per Share | Metric | For the six months ended June 30, 2025 (HK cents) | For the six months ended June 30, 2024 (HK cents) | | :--- | :--- | :--- | | Basic loss per share | (27.01) | (18.15) | [Trade and Other Receivables](index=11&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E5%B8%B3%E6%AC%BE) As of June 30, 2025, total trade and other receivables decreased to HK$12,760 thousand from December 31, 2024, with the majority of receivables not yet due Breakdown of Trade and Other Receivables | Item | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Trade receivables (from contracts with customers) | 6,999 | 10,088 | | Lease receivables | 2,534 | 2,250 | | Other receivables | 3,227 | 2,859 | | **Total** | **12,760** | **15,197** | Ageing Analysis of Trade and Lease Receivables | Ageing | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Not yet due | 9,280 | 12,139 | | Overdue 0 – 30 days | 80 | 104 | | Overdue 31 – 60 days | 173 | 94 | | Overdue 61 – 90 days | - | 1 | | **Total** | **9,533** | **12,338** | [Trade and Other Payables and Accruals](index=11&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E5%B8%B3%E6%AC%BE%E5%8F%8A%E9%A0%90%E6%8F%90%E8%B2%B3%E6%AC%BE) As of June 30, 2025, total trade and other payables and accruals decreased to HK$49,209 thousand, with the vast majority of trade payables due within 30 days Breakdown of Trade and Other Payables and Accruals | Item | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | Trade payables | 4,748 | 5,288 | | Other payables and accruals | 44,461 | 54,899 | | **Total** | **49,209** | **60,187** | Ageing Analysis of Trade Payables | Ageing | As of June 30, 2025 (in thousands of HKD) | As of December 31, 2024 (in thousands of HKD) | | :--- | :--- | :--- | | 0 – 30 days | 4,740 | 5,281 | | 31 – 60 days | 7 | 6 | | 61 – 90 days | 1 | 1 | | **Total** | **4,748** | **5,288** | [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E4%B9%8B%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Overall Performance Review](index=12&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7) Net profit attributable to owners, before revaluation and depreciation, grew 29% to HK$78.7 million, driven by higher revenue and lower costs, while the Board withheld dividends to preserve cash - The Company's net profit attributable to owners, after tax and before revaluation and depreciation, was **HK$78,700,000**, an increase of HK$18,000,000 (**+29%**) from HK$60,900,000 for the six months ended June 30, 2024[24](index=24&type=chunk) - The increase in overall profit was mainly due to a **5% increase in revenue** and a decrease in hotel operating costs and finance costs[27](index=27&type=chunk) - The decision not to recommend an interim dividend was to ensure higher cash flow for the challenging market, reduce bank debt, and fund the renovation of the Wood Street Hotel in London[26](index=26&type=chunk) [Business Performance](index=13&type=section&id=%E8%A1%A8%E7%8F%BE) The Group's hotel business revenue grew by 3%, with a significant 43% increase in net profit for the Magnificent Hotel Group, alongside growth in commercial property rental income [Hotel Business](index=13&type=section&id=%E9%85%92%E5%BA%97%E6%A5%AD%E5%8B%99) Hotel operating revenue increased by 3% to HK$268 million, while Magnificent Hotel Group's net profit, before revaluation and depreciation, surged 43% to HK$59.3 million - The Group's revenue from hotel operations was **HK$268,000,000**, an increase of 3% from HK$260,000,000 for the six months ended June 30, 2024[28](index=28&type=chunk) - Net profit attributable to owners of Magnificent Hotel, before revaluation and depreciation, was **HK$59,300,000**, an increase of HK$17,700,000 (**+43%**) from HK$41,600,000 for the six months ended June 30, 2024[28](index=28&type=chunk) - Management successfully increased the annual rent of the Royal Scot Hotel in London by **34%** from £3,546,000 to £4,737,000[30](index=30&type=chunk) [Commercial Property Rental Income](index=14&type=section&id=%E5%95%86%E6%A5%AD%E7%89%A9%E6%A5%AD%E7%A7%9F%E9%87%91%E6%94%B6%E5%85%A5) Commercial property rental income totaled HK$66 million, showing year-on-year growth, with Shun Ho Tower and 633 King's Road achieving occupancy rates of 91% and 77% respectively - Commercial property rental income, derived from properties in the UK and Hong Kong, totaled **HK$66,000,000** (Six months ended June 30, 2024: HK$60,000,000)[31](index=31&type=chunk) Hong Kong Commercial Property Occupancy Rates | Property | Occupancy Rate | | :--- | :--- | | Shun Ho Tower | 91% | | 633 King's Road | 77% | [Liquidity and Capital Resources](index=14&type=section&id=%E8%B3%87%E9%87%91%E6%B5%81%E5%8B%95) As of June 30, 2025, the Group's total debt decreased to HK$909 million, improving the gearing ratio to 11%, while the Group actively manages its foreign exchange risk exposure - As at June 30, 2025, the Group's (including Magnificent Hotel and its subsidiaries) total debt was **HK$909,000,000** (December 31, 2024: HK$1,016,000,000)[33](index=33&type=chunk) - The Group's (including Magnificent Hotel and its subsidiaries) gearing ratio improved to **11%** from 12% as at December 31, 2024[33](index=33&type=chunk) - The Group's bank loans are primarily denominated in Hong Kong dollars and Pound Sterling at floating interest rates, exposing the Group to foreign exchange risk which management actively monitors and manages[33](index=33&type=chunk) [Key Business Achievements](index=15&type=section&id=%E9%87%8D%E9%BB%9E%E6%A5%AD%E5%8B%99%E6%88%90%E7%B8%BE) The Group maintained an average hotel occupancy rate above 90% amid 11.3 million overnight visitor arrivals to Hong Kong, successfully increased rent for a London hotel, and advanced a new hotel renovation project - For the six months ended June 30, 2025, overnight visitor arrivals to Hong Kong were approximately **11.3 million** (Six months ended June 30, 2024: 10.6 million)[34](index=34&type=chunk) - During the period, the Group's average hotel occupancy rate consistently exceeded **90%**[34](index=34&type=chunk) - The Group's hotel revenue increased by **3%** to HK$268,000,000, and total revenue increased by **5%** to HK$334,000,000[34](index=34&type=chunk) - Management successfully increased the annual rent of the Royal Scot Hotel in London by **34%** from £3,546,000 to £4,737,000[35](index=35&type=chunk) - The Group acquired the Wood Street Police Station headquarters in central London for £40,000,000 and has received approval to renovate it into a luxury hotel with approximately 216 guest rooms[35](index=35&type=chunk) [Future Outlook](index=15&type=section&id=%E5%B1%95%E6%9C%9B%E6%9C%AA%E4%BE%86) The outlook for hotel and rental income remains challenging due to economic headwinds, though the expansion of the "multi-entry visa" policy may provide a positive catalyst - The future prospects for the hotel business and rental income remain challenging, and management will continue to focus on increasing revenue and controlling costs[37](index=37&type=chunk) - A weak Chinese economy and a strong Hong Kong dollar against the Renminbi have led more Chinese tourists to opt for day trips to Hong Kong while staying in the Greater Bay Area[36](index=36&type=chunk) - The expansion of the multi-entry visa policy to other major Chinese cities like Beijing and Shanghai is expected to be a significant positive development[36](index=36&type=chunk) - Occupancy rates at 633 King's Road and Shun Ho Tower are affected by the US-China trade war and declining Hong Kong import/export volumes, as most tenants are international trading companies[36](index=36&type=chunk) [Dealings in Listed Securities](index=15&type=section&id=%E8%B3%BC%E5%85%A5%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) [Dealings in Listed Securities](index=15&type=section&id=%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E6%83%85%E5%86%B5) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - During 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[38](index=38&type=chunk) [Corporate Governance](index=16&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) [Compliance with the Corporate Governance Code](index=16&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Company complied with the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are held by the same individual - For the six months ended June 30, 2025, the Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules, except for the following deviation: Code Provision C.2.1 stipulates that the roles of chairman and chief executive should not be performed by the same individual[39](index=39&type=chunk) - The Board believes that vesting the roles of both Chairman and Chief Executive Officer in the same person, Mr. William Cheng Kai Man, provides the Company with **strong and consistent leadership** and facilitates effective planning and implementation of the Company's strategies[39](index=39&type=chunk) [Compliance with the Model Code](index=16&type=section&id=%E9%81%B5%E5%AE%88%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted the Model Code for securities transactions by directors, and all directors have confirmed their compliance throughout the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers ("Model Code") as set out in Appendix C3 to the Listing Rules as its own code of conduct regarding securities transactions by the Directors, and all Directors have confirmed their compliance with the required standard set out in the Model Code throughout the period[40](index=40&type=chunk) [Audit Committee Review](index=16&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E4%B9%8B%E5%AF%A9%E9%96%B1) [Audit Committee Review](index=16&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A%E5%AE%A1%E9%98%85%E6%83%85%E5%86%B5) The Audit Committee has reviewed the Group's unaudited financial results for the six months ended June 30, 2025 - The Audit Committee has reviewed the unaudited financial results of the Group for the six months ended June 30, 2025[41](index=41&type=chunk) [Board of Directors Information](index=16&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E4%BF%A1%E6%81%AF) [Board Composition](index=16&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%88%90%E5%91%98%E6%9E%84%E6%88%90) As of the date of this announcement, the Board of Directors comprises four executive directors, one non-executive director, and three independent non-executive directors - As at the date of this announcement, the Board of Directors of the Company comprises four Executive Directors, namely Mr. William Cheng Kai Man (Chairman), Mr. Alexander Hui Wing Ho, Ms. Kimmy Lau Kam May and Ms. Wendy Ngan Mui Ying; one Non-executive Director, namely Mrs. Lo Fong Mei Yee, Anita; and three Independent Non-executive Directors, namely Mr. Chan Kim Fai, Mr. Lam Kwai Cheung and Mr. Liu Yue Chu[43](index=43&type=chunk)