[Group Performance Overview](index=1&type=section&id=Group%20Performance%20Overview) [Key Financial Highlights](index=1&type=section&id=1.1%20Key%20Financial%20Highlights) The Group reported growth in revenue and profit for the period, with significant new order intake and stable adjusted EBITDA and profit | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Y-o-Y Change (%) | | :--- | :-------------------- | :-------------------- | :----------- | | Revenue | 1,332,900 | 1,225,500 | 8.8% | | Profit for the period | 41,500 | 38,100 | 9.0% | | New Orders Signed | 1,519,300 | 1,295,000 | 17.3% | | Adjusted EBITDA | 59,600 | 58,200 | 2.2% | | Adjusted Profit | 45,700 | 46,000 | -0.7% | | Basic EPS (HK cents) | 4.98 | 4.57 | 9.0% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The condensed consolidated statement of profit or loss shows growth in revenue and profit attributable to owners, driven by increased revenue and improved associate performance | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :-------------- | :-------------- | | Revenue | 1,332,883 | 1,225,462 | | Cost of sales | (583,487) | (522,218) | | Cost of services provided | (620,426) | (580,053) | | Other income | 11,561 | 13,332 | | Other net loss | (4,452) | (921) | | Selling expenses | (55,027) | (47,403) | | Administrative expenses | (33,444) | (31,895) | | Finance income | 530 | 85 | | Finance costs | (729) | (563) | | Share of results of associates | 3,324 | (7,867) | | Profit before income tax | 50,733 | 47,959 | | Income tax expense | (9,218) | (9,858) | | Profit for the period attributable to owners of the Company | 41,515 | 38,101 | | Basic EPS (HK cents) | 4.98 | 4.57 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The condensed consolidated statement of comprehensive income shows a significant increase in total comprehensive income, primarily due to favorable exchange differences from foreign operations | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :-------------- | :-------------- | | Profit for the period | 41,515 | 38,101 | | Exchange differences on translation of foreign operations | 23,547 | (4,638) | | Share of other comprehensive income/(loss) of associates | 7,953 | (1,508) | | Total comprehensive income for the period attributable to owners of the Company | 73,015 | 31,955 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=2.3%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group maintained a robust financial position with increased total assets, equity attributable to owners, and a healthy working capital ratio | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--------------------- | :--------------------- | | Total Assets | 3,347,740 | 3,276,421 | | Equity attributable to owners of the Company | 2,327,841 | 2,276,908 | | Total Liabilities | 1,019,899 | 999,513 | | Net Current Assets | 862,316 | 828,266 | - The working capital ratio was approximately **2.01:1**, indicating a sound financial position[54](index=54&type=chunk) [Notes to the Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Financial%20Information) [Basis of Preparation and Accounting Policies](index=6&type=section&id=3.1%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim financial information is prepared under HKAS 34 and Listing Rules, adopting revised HKAS 21 with no significant impact on performance or financial position - The interim financial information has been prepared in compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 'Interim Financial Reporting'[11](index=11&type=chunk) - The adoption of the revised Hong Kong Accounting Standard 21 'Lack of Exchangeability' had no significant impact on the Group's results and financial position for the current and prior periods[12](index=12&type=chunk) [Revenue and Segment Information](index=7&type=section&id=3.2%20Revenue%20and%20Segment%20Information) The Group's revenue is primarily from IT products and services, with Hong Kong as the main source and non-current assets in overseas markets - The Group comprises two operating segments: IT products and IT services[13](index=13&type=chunk) [Revenue Composition](index=7&type=section&id=3.2.1%20Revenue%20Composition) This section details the composition of the Group's revenue, distinguishing between sales of goods and revenue from service contracts | Revenue Source | 2025 (HKD thousands) | 2024 (HKD thousands) | Y-o-Y Change (%) | | :------- | :-------------- | :-------------- | :----------- | | Sales of goods | 675,890 | 611,325 | 10.6% | | Revenue from service contracts | 656,993 | 614,137 | 7.0% | | **Total Revenue** | **1,332,883** | **1,225,462** | **8.8%** | [Operating Segment Performance](index=7&type=section&id=3.2.2%20Operating%20Segment%20Performance) This section details the financial performance of the Group's IT products and IT services segments, including external customer revenue and segment profit | Segment | 2025 External Customer Revenue (HKD thousands) | 2024 External Customer Revenue (HKD thousands) | 2025 Reportable Segment Profit (HKD thousands) | 2024 Reportable Segment Profit (HKD thousands) | | :--- | :-------------------------- | :-------------------------- | :---------------------------- | :---------------------------- | | IT Products | 675,890 | 611,325 | 68,815 | 67,276 | | IT Services | 656,993 | 614,137 | 1,866 | 8,087 | - Profit from the IT Services segment decreased by approximately **77%** year-on-year, while profit from the IT Products segment saw a slight increase[15](index=15&type=chunk)[16](index=16&type=chunk) [Segment Reconciliation](index=9&type=section&id=3.2.3%20Segment%20Reconciliation) This section reconciles reportable segment revenue and profit with the condensed consolidated statement of profit or loss, detailing adjustments and unallocated items - After reconciliation, reportable segment revenue for 2025 was **HKD 1,332,883 thousands**, excluding **HKD 19,289 thousands** of inter-segment revenue[20](index=20&type=chunk) - Reportable segment profit reconciled to profit before income tax for 2025 was **HKD 50,733 thousands**, with key adjustments including unallocated other income, other net loss, depreciation, share of results of associates, finance costs, and unallocated corporate expenses[22](index=22&type=chunk) - Unallocated assets included **HKD 1,241,212 thousands** in interests in associates and **HKD 649,377 thousands** in bank balances and cash[23](index=23&type=chunk) [Geographical Segment Information](index=11&type=section&id=3.2.4%20Geographical%20Segment%20Information) This section provides geographical breakdown of external customer revenue and non-current assets, highlighting key regions like Hong Kong, USA, and Thailand | Location | 2025 External Customer Revenue (HKD thousands) | 2024 External Customer Revenue (HKD thousands) | 2025 Non-current Assets (HKD thousands) | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | | Hong Kong | 1,226,905 | 1,161,779 | 317,771 | | USA | – | – | 1,204,116 | | Thailand | 57,511 | 22,966 | 558 | - The USA region holds the largest proprietary non-current assets, primarily consisting of interests in associates[25](index=25&type=chunk) - External customer revenue in Thailand increased by over **150%** year-on-year[25](index=25&type=chunk) [Timing of Revenue Recognition](index=12&type=section&id=3.2.5%20Timing%20of%20Revenue%20Recognition) This section details the timing of revenue recognition, distinguishing between revenue recognized at a point in time and over time, and outlines unsatisfied performance obligations | Timing of Revenue Recognition | 2025 (HKD thousands) | 2024 (HKD thousands) | | :----------- | :-------------- | :-------------- | | At a point in time | 788,512 | 705,211 | | Over time | 544,371 | 520,251 | - As of June 30, 2025, revenue from unsatisfied performance obligations amounted to **HKD 1,849,013 thousands**, expected to be recognized within one to five years[26](index=26&type=chunk) [Other Income and Losses](index=12&type=section&id=3.3%20Other%20Income%20and%20Losses) Other income decreased while other net losses significantly increased, mainly due to net losses from deemed disposal of partial interests in associates | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :-------------- | :-------------- | | Interest on bank deposits | 10,438 | 11,237 | | Rental income from investment properties | 490 | 1,403 | | Total other income | 11,561 | 13,332 | | Net (loss)/gain on deemed disposal of partial interests in associates | (4,970) | 58 | | Net exchange gain/(loss) | 522 | (975) | | Total other net loss | (4,452) | (921) | [Finance Income and Profit Before Tax](index=13&type=section&id=3.4%20Finance%20Income%20and%20Profit%20Before%20Tax) Finance income increased due to discounting of finance lease receivables, leading to higher profit before tax, alongside increased employee benefit expenses - Finance income primarily refers to the increase in discounting recognized after initially recognizing finance lease receivables at their fair value[29](index=29&type=chunk) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :-------------- | :-------------- | | Profit before income tax | 50,733 | 47,959 | | Employee benefit expenses (excluding directors' emoluments) | 380,672 | 340,358 | [Income Tax Expense](index=14&type=section&id=3.5%20Income%20Tax%20Expense) Income tax expense slightly decreased, with Hong Kong profits tax calculated under a two-tiered system and contributions from overseas taxation | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :-------------- | :-------------- | | Hong Kong profits tax | 8,037 | 7,663 | | Overseas taxation | 2,165 | 1,959 | | Over-provision in prior years: overseas taxation | (129) | – | | Deferred tax: current period | (855) | 236 | | **Income tax expense** | **9,218** | **9,858** | - Hong Kong profits tax is calculated under a two-tiered profits tax rate system, with the first **HKD 2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[31](index=31&type=chunk) [Dividends](index=14&type=section&id=3.6%20Dividends) 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 propose to declare an interim dividend for the six months ended June 30, 2025[33](index=33&type=chunk)[52](index=52&type=chunk) - A final dividend of **3.0 HK cents** per share for the year ended December 31, 2024, amounting to **HKD 25,011 thousands**, was approved and paid during the period[33](index=33&type=chunk) [Earnings Per Share](index=15&type=section&id=3.7%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners increased, with diluted EPS for 2025 reflecting the share award scheme's impact | Metric | 2025 (HK cents) | 2024 (HK cents) | | :--- | :------------ | :------------ | | Basic earnings per share | 4.98 | 4.57 | | Diluted earnings per share | 4.91 | 4.57 | - The calculation of diluted earnings per share for 2025 has considered the Company's share awards issued under the 2024 Share Award Scheme[39](index=39&type=chunk) [Property, Plant and Equipment](index=16&type=section&id=3.8%20Property%2C%20Plant%20and%20Equipment) Property, plant and equipment additions included computer equipment and leasehold improvements, with some assets pledged for bank financing - For the six months ended June 30, 2025, additions to property, plant and equipment primarily comprised computer equipment (approximately **HKD 2,836 thousands**) and leasehold improvements (approximately **HKD 4,316 thousands**)[37](index=37&type=chunk) - The Group has pledged land and buildings with a carrying amount of approximately **HKD 179,225 thousands** to secure bank financing[38](index=38&type=chunk) [Investment Properties](index=17&type=section&id=3.9%20Investment%20Properties) An investment property was reclassified for office use, and some investment properties are pledged to secure bank financing - The Group reclassified an investment property with a fair value of **HKD 24,525 thousands** to property, plant and equipment, now used for office purposes[40](index=40&type=chunk) - As of June 30, 2025, the Group had pledged investment properties with a carrying amount of approximately **HKD 22,475 thousands** to secure bank financing[40](index=40&type=chunk) [Interests in Associates](index=17&type=section&id=3.10%20Interests%20in%20Associates) Total interests in associates increased, but a net loss resulted from the deemed disposal of partial interests due to GDH share dilution | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--------------------- | :--------------------- | | Interests in listed associates | 1,204,117 | 1,189,036 | | Interests in unlisted associates | 37,095 | 30,170 | | **Total interests in associates** | **1,241,212** | **1,219,206** | - The Group's interest in GDH was diluted due to the vesting of restricted share units and share options, resulting in a recognized net loss of **HKD 4,970 thousands** from the deemed disposal of partial interests[42](index=42&type=chunk) - GDH's fair value, based on Nasdaq quotations, was **USD 11.55** per share as of June 30, 2025, lower than **USD 22.24** per share as of December 31, 2024[41](index=41&type=chunk) [Trade and Other Receivables](index=19&type=section&id=3.11%20Trade%20and%20Other%20Receivables) Net trade receivables decreased, with significant overdue amounts, while other receivables and prepayments increased due to higher supplier prepayments | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--------------------- | :--------------------- | | Trade receivables – net | 162,305 | 192,410 | | Trade receivables – gross (over 90 days) | 38,506 | 45,013 | | Other receivables, deposits and prepayments – net | 92,871 | 85,144 | - Prepayments primarily consisted of amounts paid to suppliers, increasing from **HKD 43,104 thousands** to **HKD 56,596 thousands**[48](index=48&type=chunk) [Financial Assets](index=20&type=section&id=3.12%20Financial%20Assets) The Group committed to acquiring an equity interest in a limited partnership fund, designated as a financial asset at fair value through OCI for long-term capital growth - The Group has committed to acquiring an equity interest in a limited partnership fund amounting to **USD 3,000,000**[47](index=47&type=chunk) - As of June 30, 2025, **USD 660,000** (approximately **HKD 5,181 thousands**) has been contributed and designated as a financial asset at fair value through other comprehensive income, aiming for long-term capital growth[47](index=47&type=chunk) [Trade and Other Payables](index=21&type=section&id=3.13%20Trade%20and%20Other%20Payables) Trade payables slightly decreased, while contract liabilities significantly increased due to higher billings in advance and customer deposits | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--------------------- | :--------------------- | | Trade payables | 290,262 | 298,705 | | Other payables and accrued charges | 145,621 | 179,849 | | Contract liabilities | 399,541 | 344,568 | - The increase in contract liabilities was primarily due to higher billings in advance and customer deposits received from customers during the period[51](index=51&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Performance Review](index=22&type=section&id=4.1%20Financial%20Performance%20Review) The Group maintained robust financial performance amidst uncertainties, with growth in revenue and profit, significant new orders, a healthy working capital ratio, and no outstanding borrowings | Metric | H1 2025 (HKD millions) | H1 2024 (HKD millions) | Y-o-Y Change (%) | | :--- | :-------------------- | :-------------------- | :----------- | | Total Revenue | 1,332.9 | 1,225.5 | 8.8% | | Gross Profit | 129.0 | 129.0 | 0.0% | | Profit for the period attributable to owners of the Company | 41.5 | 38.1 | 9.0% | | New Orders Signed | 1,519.3 | 1,295.0 | 17.3% | | Adjusted EBITDA | 59.6 | 58.2 | 2.2% | | Adjusted Profit | 45.7 | 46.0 | -0.7% | - Product sales increased by **10.6%** to **HKD 675.9 million**, and service revenue rose by **7.0%** to **HKD 657.0 million**[53](index=53&type=chunk) - As of June 30, 2025, the Group's order backlog was approximately **HKD 1,849.0 million**, with a working capital ratio of **2.01:1** and no outstanding borrowings[54](index=54&type=chunk) [Business Segment Review](index=24&type=section&id=4.2%20Business%20Segment%20Review) The Group's three core businesses maintained robust growth, leveraging innovative technologies to expand into Xinchuang and Asia-Pacific/Oceania markets - The Group's new orders signed and revenue grew by **17.3%** and **8.8%** respectively, with adjusted EBITDA increasing by **2.2%**[57](index=57&type=chunk) - Total service revenue from the three core businesses (Innovative Industry Solutions, Intelligent Cybersecurity Services, IT Integrated Management Services) showed robust growth[57](index=57&type=chunk) - Actively leveraging innovative technologies such as **AI**, **blockchain**, and **cloud computing** to facilitate digital transformation across industries and build digital government[58](index=58&type=chunk) - Further expanding into the Xinchuang domain, strengthening the 'Chinese + Foreign' product benchmarking and testing platform, and expanding into the Asia-Pacific and Oceania markets[62](index=62&type=chunk)[63](index=63&type=chunk) [Innovative Industry Solutions (Dev)](index=24&type=section&id=4.2.1%20Innovative%20Industry%20Solutions%20(Dev)) This section highlights the growth in new service orders and revenue for Innovative Industry Solutions, driven by AI, blockchain, and cloud technologies for e-government and Xinchuang projects - New service orders signed for Innovative Industry Solutions increased year-on-year, with service revenue recorded at **HKD 296.4 million**[58](index=58&type=chunk) - Actively utilizing innovative technologies like **AI**, **blockchain**, and **cloud computing** to develop e-government platforms, Hong Kong-wide census data systems, and the 'eHealth+' system[58](index=58&type=chunk) - Continuously expanding business opportunities in China-originated IT Application Innovation (Xinchuang) projects, accumulating successful cases and implementation experience[58](index=58&type=chunk) [Intelligent Cybersecurity Services (Sec)](index=25&type=section&id=4.2.2%20Intelligent%20Cybersecurity%20Services%20(Sec)) This section details the performance of Intelligent Cybersecurity Services, noting a decrease in new service orders but significant contract wins and ISO certification for its Security Operations Center - New service orders for Intelligent Cybersecurity Services decreased, with service revenue recorded at **HKD 105.6 million**[59](index=59&type=chunk) - Secured two cybersecurity framework agreements with the Hong Kong International Airport Authority totaling nearly **HKD 125 million**, and provided 24/7 threat detection and on-site technical support for a government department[59](index=59&type=chunk) - Extended ISO certification to the Security Operations Center (SOC) in Guangzhou, standardizing service quality across regions[59](index=59&type=chunk) [IT Integrated Management Services (Ops)](index=25&type=section&id=4.2.3%20IT%20Integrated%20Management%20Services%20(Ops)) This section reviews the growth in new service orders and revenue for IT Integrated Management Services, highlighting major contract wins across diverse sectors and the adoption of AIOps technology - New service orders for IT Integrated Management Services increased, with service revenue recorded at **HKD 235.4 million**[60](index=60&type=chunk) - Signed multiple significant large-scale managed service contracts or renewals across sectors including finance and insurance, aviation, real estate, education, retail, and government[61](index=61&type=chunk) - Successfully secured a Virtual Desktop Infrastructure (VDI) technology diversification project and a five-year Hong Kong-wide IT endpoint facility support and maintenance contract from a government department[61](index=61&type=chunk) - Provided 24-hour automated services through AI-powered IT Operations (AIOps) platform services, demonstrating a transition from ITSM to leading AIOps technological advantages[61](index=61&type=chunk) [Strategic Focus and Market Expansion](index=26&type=section&id=4.2.4%20Strategic%20Focus%20and%20Market%20Expansion) This section outlines the Group's strategic focus on Xinchuang, strengthening product benchmarking, and expanding into Asia-Pacific and Oceania markets with increased AI technology adoption - The Group further expanded its presence in the Xinchuang domain, strengthening the 'Chinese + Foreign' product benchmarking and testing platform to enhance integrated technology capabilities[62](index=62&type=chunk) - Actively focusing on industries and expanding into the Asia-Pacific and Oceania markets, with offices established in Malaysia and Australia, and continuous expansion of Offshore Development Centers (ODC)[63](index=63&type=chunk) - Accelerating the utilization of **AI** technology to provide efficient solutions across various industries[63](index=63&type=chunk) [Associates' Business](index=26&type=section&id=4.3%20Associates%27%20Business) Associates GDH and i-Sprint showed strong performance with significant revenue and profit growth, demonstrating leadership in FinTech and AI applications - GDH's total revenue for the first half reached **USD 201.5 million** (approximately **HKD 1,581.9 million**), a **23.7%** increase, with non-GAAP EBITDA at **USD 27.4 million** (approximately **HKD 214.7 million**)[64](index=64&type=chunk) - GDH's revenue proportion from **AI** and data business continued to increase, growing almost three times faster than conventional business, reflecting its leadership in enterprise-grade **AI** solutions[64](index=64&type=chunk) - i-Sprint's revenue for the period was approximately **HKD 84.5 million**, a **15.6%** increase, with EBITDA at approximately **HKD 26.8 million**, a significant **59.3%** increase[65](index=65&type=chunk) - i-Sprint continued to deepen collaborations with Asia-Pacific technology partners and distributors, launching upgraded cybersecurity solutions integrated with **AI**[65](index=65&type=chunk) [Prospects and Outlook](index=27&type=section&id=4.4%20Prospects%20and%20Outlook) The Group will cautiously navigate global uncertainties, focusing on opportunities from China's economic recovery and Greater Bay Area integration, while investing in Xinchuang and AI for sustainable development - The Group will closely monitor emerging business opportunities driven by China's economic recovery and the deep integration of the Greater Bay Area[66](index=66&type=chunk) - Will remain highly vigilant to capture market gaps arising from the implementation of the Critical Infrastructure (Computer Systems) Protection Ordinance[66](index=66&type=chunk) - Continuously strengthening talent reserves and training, increasing investment in the Xinchuang domain, and establishing professional technical evaluation teams[66](index=66&type=chunk) - Combining **DevSecOps** capabilities with platform-based managed services to focus on the Xinchuang domain and explore **AI** application scenarios, seizing digital economy transformation opportunities[66](index=66&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) [Financial Resources and Liquidity](index=28&type=section&id=5.1%20Financial%20Resources%20and%20Liquidity) The Group maintains robust financial resources and ample liquidity, with healthy total assets, working capital ratio, no outstanding borrowings, and stable bank facilities - As of June 30, 2025, the Group's total assets were **HKD 3,347.7 million**, with a working capital ratio of approximately **2.01:1**[67](index=67&type=chunk) - The Group's total consolidated bank facilities amounted to approximately **HKD 270.3 million**, with no outstanding borrowings[67](index=67&type=chunk) - The Group provided performance guarantees to customers as contract collateral totaling approximately **HKD 126.9 million**[67](index=67&type=chunk) [Material Acquisitions and Disposals](index=28&type=section&id=5.2%20Material%20Acquisitions%20and%20Disposals) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025 - For the six months ended June 30, 2025, there were no other material acquisitions or disposals by the Company or any of its subsidiaries[68](index=68&type=chunk) [Treasury Policy and Foreign Exchange Risk](index=28&type=section&id=5.3%20Treasury%20Policy%20and%20Foreign%20Exchange%20Risk) Operations are funded by internal resources and bank credit, primarily in HKD and USD, with minimal foreign exchange risk due to the HKD-USD peg, thus no hedging instruments are used - The Group's operating expenses are generally funded by internal resources and bank credit facilities, with bank deposits primarily denominated in **HKD** and **USD**, and bank borrowings in **HKD**[69](index=69&type=chunk) - Due to the **HKD-USD** peg policy, the Group's exposure to **USD** foreign exchange risk remains minimal, with no significant exchange rate fluctuation risk during the period, hence no hedging financial instruments were applied[70](index=70&type=chunk) [Contingent Liabilities and Capital Commitments](index=29&type=section&id=5.4%20Contingent%20Liabilities%20and%20Capital%20Commitments) The Group has contingent liabilities from bank-issued performance guarantees and contracted capital commitments for property, plant and equipment and a limited partnership fund - As of June 30, 2025, performance guarantees issued by banks on behalf of the Group to customers as contract collateral amounted to approximately **HKD 126.9 million**[71](index=71&type=chunk) | Capital Commitment Item | June 30, 2025 (HKD millions) | December 31, 2024 (HKD millions) | | :----------- | :----------------------- | :----------------------- | | Property, Plant and Equipment | 1.1 | 2.0 | | Capital contribution to limited partnership fund | 18.4 | – | [Employees and Remuneration Policy](index=29&type=section&id=5.5%20Employees%20and%20Remuneration%20Policy) The Group employs 1,647 staff globally, with remuneration based on performance, experience, and market conditions, offering comprehensive benefits and long-term incentives - As of June 30, 2025, the Group (excluding its associates) employed **1,647** permanent and contract staff across Hong Kong, Mainland China, Taiwan, Macau, Thailand, the UK, Australia, and Malaysia, an increase of **189** from the prior year[73](index=73&type=chunk) - Remuneration is determined based on employee performance, work experience, and prevailing market conditions, offering MPF, insurance, medical benefits, training, and discretionary bonuses[73](index=73&type=chunk) - The share option scheme and share award scheme aim to provide long-term incentives for key employees[73](index=73&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=29&type=section&id=5.6%20Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2025 - 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[74](index=74&type=chunk) [Audit Committee and Corporate Governance](index=29&type=section&id=5.7%20Audit%20Committee%20and%20Corporate%20Governance) The Audit Committee reviewed accounting principles, risk management, and financial statements, with the Company confirming full compliance with director securities transaction and corporate governance codes - The Audit Committee, together with management, reviewed the Group's adopted accounting principles and practices, and discussed matters concerning audit, risk management, internal control systems, and financial statements[75](index=75&type=chunk) - The Company made specific inquiries to all Directors regarding their compliance with the Model Code for Securities Transactions by Directors for the six months ended June 30, 2025, and all Directors confirmed full compliance with the standards prescribed therein[76](index=76&type=chunk) - The Company has complied with the Corporate Governance Code as set out in Appendix C1 to the Listing Rules throughout the six months ended June 30, 2025[77](index=77&type=chunk) [Board Information](index=30&type=section&id=5.8%20Board%20Information) This announcement, dated August 20, 2025, details the latest Board of Directors' composition, including Executive, Non-executive, and Independent Non-executive Directors - This announcement is dated **August 20, 2025**[79](index=79&type=chunk) - The Board members include Executive Directors Mr. WANG Wai Hang and Mr. WONG Yuet Au; Non-executive Director Ms. ZHANG Bingxia; and Independent Non-executive Directors Mr. POON Yan Wing, Mr. TANG Kin Sum, and Ms. OR Siu Ching[79](index=79&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Jiangsu Lopal Tech. Group Co., Ltd. – 1 – • 截至2025年6月30日止六個月，毛利約為人民幣501.2百萬元，較2024年同期增加約 45.7%；及 • 截至2025年6月30日止六個月，虧損約為人民幣109.1百萬元，較2024年同期減少約 58.3%。 江蘇龍蟠科技集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2465） 截至2025年6月30日止六個月之 未經審核中期業績公告 江蘇龍蟠科技集團股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈，本公 司及其子公司（統稱「本集團」）截至2025年6月30日止六個月（「報告期間」）之未經審核合 併業績，連同截至2024年6月30日止六個月之比較數字（經重列）如下： 財務摘要 於報告期間： 中期簡明合併損益及其他全面收益表 截至6月30日止六個月 | | | 2025 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Sinopec Shanghai Petrochemical Company Limited 中國石化上海石油化工股份有限公司 （於中華人民共和國註冊成立之股份有限公司） （股份代號：00338） 按照《中華人民共和國（「中國」）企業會計準則》編製 截至2025年6月30日止六個月之2025年半年度報告摘要 1.2 公司簡介 | A股： | 股票上市交易所 | 上海證券交易所 | | --- | --- | --- | | | 股票簡稱 | 上海石化 | | | 股票代碼 | 600688 | | H股： | 股票上市交易所 | 香港交易所 | | | 股票簡稱 | 上海石油化工股份 | | | 股票代碼 | 00338 | 董事會秘書 證券事務代表 | 姓名 | 劉剛 | 余光賢 | | --- | --- | --- | | 聯繫地址 | 中國上海市金山區金一路48號 | 中國上海市金山區金一路48 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Kingsoft Cloud Holdings Limited 金山云控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3896） （納斯達克股票代碼：KC） 內幕消息 截至二零二五年六月三十日止三個月的 未經審核財務業績 本公告乃根據香港聯合交易所有限公司證券上市規則第13.09條及證券及期貨條例 （第571章）第XIVA部刊發。 金山云控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司、 其子公司及併表聯屬實體（統稱「本集團」）根據美國證券交易委員會（「美國證交 會」）適用規則刊發的截至二零二五年六月三十日止三個月未經審核簡明綜合業績 （「第二季度業績」）。 第二季度業績乃根據美利堅合眾國公認會計準則（「美國公認會計準則」）編製，其 有別於國際財務報告準則。 本公告附件一為本公司於二零二五年八月二十日（美國東部時間）就第二季度業績 刊發的新聞稿全文，其中部分內容可能構成 ...

[Executive Summary and Performance Highlights](index=1&type=section&id=I.%20Executive%20Summary%20and%20Performance%20Highlights) H1 2025 revenue declined, but gross margin improved from product optimization and digital efficiency, ensuring stable operating profitability [H1 2025 Performance Summary](index=1&type=section&id=1.1%20H1%202025%20Performance%20Summary) H1 2025 revenue declined **15.5%** to **RMB 458 million**, but gross profit rose **1.2%** to **RMB 134 million**, with stable operating profitability Metric | Metric | H1 2025 (RMB) | YoY Change | Notes | | :--- | :--- | :--- | :--- | | Revenue | **458 million** | -**15.5%** | | | Gross Profit | **134 million** | +**1.2%** | | | Gross Margin | **29.3%** | +**4.9 percentage points** | | | Profit for the Period | **23.6 million** | -**22.7%** | Affected by lower exchange gains, decreased other income, and increased income tax expenses due to deferred tax | | Operating Profit | Flat | - | | | Operating Expenses | **125 million** | -**1.3%** | | | Embedded Software and Secure Payment Products Revenue | **292 million** | +**0.7%** | Gross Margin **23.8%** (+**2.2 percentage points**) | | Platform and Services Business Revenue | **165 million** | -**34.3%** | Gross Margin **38.9%** (+**11.3 percentage points**) | | UMV Platform Customer Count | over **2200** | - | Financial and transportation sector clients | [Financial Statements](index=2&type=section&id=II.%20Financial%20Statements) This section presents the company's condensed consolidated statements, offering an overview of its financial performance and position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=2.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by **15.5%** to **RMB 458 million**, while gross profit slightly increased by **1.2%** to **RMB 134 million**; profit for the period was **RMB 23.55 million**, a **22.7%** decrease year-on-year, primarily impacted by increased income tax expenses and exchange differences Metric | Metric | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | **457,884** | **542,012** | -**15.5%** | | Cost of Sales | (**323,926**) | (**409,702**) | -**21.0%** | | Gross Profit | **133,958** | **132,310** | +**1.2%** | | Other Income | **19,835** | **24,914** | -**20.4%** | | Research and Development Expenses | (**45,654**) | (**53,410**) | -**14.5%** | | Selling and Distribution Expenses | (**56,836**) | (**50,126**) | +**13.4%** | | Administrative Expenses | (**22,565**) | (**23,187**) | -**2.7%** | | Profit Before Income Tax | **27,647** | **31,498** | -**12.2%** | | Income Tax Expense | (**4,095**) | (**1,026**) | +**299.1%** | | Profit for the Period | **23,552** | **30,472** | -**22.7%** | | Basic Earnings Per Share (RMB cents) | **2.9** | **3.8** | -**23.7%** | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=2.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly increased to **RMB 2.481 billion**, with current assets rising due to inventory and receivables growth; total liabilities and total equity remained relatively stable Metric | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Non-current Assets | **774,088** | **806,510** | -**3.9%** | | Total Current Assets | **1,707,153** | **1,656,974** | +**3.0%** | | Inventories | **285,149** | **237,645** | +**19.9%** | | Trade Receivables | **291,379** | **261,826** | +**11.3%** | | Cash and Cash Equivalents | **228,917** | **211,153** | +**8.4%** | | Total Assets | **2,481,241** | **2,463,484** | +**0.7%** | | **Equity** | | | | | Equity Attributable to Owners of the Company | **1,991,588** | **2,011,986** | -**1.0%** | | Total Equity | **1,991,613** | **2,011,991** | -**1.0%** | | **Liabilities** | | | | | Total Non-current Liabilities | **42,125** | **42,691** | -**1.3%** | | Total Current Liabilities | **447,503** | **408,802** | +**9.5%** | | Total Liabilities | **489,628** | **451,493** | +**8.4%** | [Financial Notes](index=5&type=section&id=III.%20Financial%20Notes) This section details accounting policies, revenue segmentation, and specific financial items, providing context to the interim financial statements [General Information](index=5&type=section&id=3.1%20General%20Information) The Group provides smart secure payment solutions and fintech services globally, listed in Hong Kong, with Mr. Lu Runting as the ultimate controlling party - The Group's main business involves embedded software and secure payment products in the smart secure payment sector, offering fintech-driven data processing services, digital equipment, system platforms, and comprehensive solutions[7](index=7&type=chunk) - The Company is registered in Hong Kong, with its shares listed and traded on the Main Board of The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) - The ultimate controlling party of the Company is Mr. Lu Runting[7](index=7&type=chunk) [Basis of Preparation](index=5&type=section&id=3.2%20Basis%20of%20Preparation) Interim financial information is prepared under HKAS 34 and Listing Rules Appendix D2, using historical cost, with 2024 annual data for comparison - The condensed interim consolidated financial information is prepared in accordance with Hong Kong Accounting Standard **34** 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk) - The financial information is prepared on the historical cost convention, except for financial assets measured at fair value through profit or loss[8](index=8&type=chunk) - The financial information for the year ended December **31**, **2024**, included in this condensed interim consolidated financial information as comparative information, is derived from the consolidated financial statements for that year[8](index=8&type=chunk) [Accounting Policies](index=6&type=section&id=3.3%20Accounting%20Policies) Accounting policies align with 2024 annual statements; new standards effective Jan 1, 2025, have no material impact on current financials - The accounting policies adopted are consistent with those followed in the preparation of the financial statements for the year ended December **31**, **2024**, except for the adoption of new and revised standards issued by the Hong Kong Institute of Certified Public Accountants effective for financial years beginning on January **1**, **2025**[10](index=10&type=chunk) - The Directors believe that the adoption of these revised standards has no significant impact on the Group's financial performance and position for the current and prior periods, nor on the disclosures contained in this interim financial information[11](index=11&type=chunk) [Revenue and Segment Information](index=7&type=section&id=3.4%20Revenue%20and%20Segment%20Information) The Group operates in two segments: 'Embedded Software and Secure Payment Products' and 'Platform and Services', with mainland China as the main revenue source Revenue by Type of Goods and Services (RMB thousand) | Type of Goods and Services | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Embedded Software and Secure Payment Products | **292,465** | **290,292** | | Data Processing and Other Services | **87,460** | **164,202** | | Digital Equipment | **77,959** | **87,518** | | **Total** | **457,884** | **542,012** | Revenue by Geographical Market (RMB thousand) | Geographical Market | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Mainland China | **400,717** | **479,975** | | Non-Mainland China | **57,167** | **62,037** | | **Total** | **457,884** | **542,012** | Revenue and Performance by Reportable Segment (RMB thousand) | Segment | 2025 Revenue | 2024 Revenue | 2025 Performance (Gross Profit) | 2024 Performance (Gross Profit) | | :--- | :--- | :--- | :--- | :--- | | Embedded Software and Secure Payment Products | **292,465** | **290,292** | **69,545** | **62,784** | | Platform and Services | **165,419** | **251,720** | **64,413** | **69,526** | | **Total** | **457,884** | **542,012** | **133,958** | **132,310** | [Profit Before Income Tax](index=9&type=section&id=3.5%20Profit%20Before%20Income%20Tax) Profit before income tax was impacted by decreased staff and inventory costs, reduced depreciation, lower government grants, and an exchange loss Items Deducted/(Added) in Profit Before Income Tax (RMB thousand) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Directors' Remuneration | **4,904** | **5,678** | | Retirement Benefit Scheme Contributions | **8,103** | **7,361** | | Staff Costs | **84,193** | **98,080** | | Cost of Inventories | **255,742** | **310,463** | | Government Grants | (**174**) | (**267**) | | VAT Refunds | (**4,786**) | (**6,027**) | | Interest Income | (**11,315**) | (**16,427**) | | Exchange Loss/(Gain) - Net | **2,516** | (**881**) | | Depreciation of Property, Plant and Equipment | **15,041** | **17,741** | [Income Tax Expense](index=10&type=section&id=3.6%20Income%20Tax%20Expense) H1 2025 income tax expense significantly increased to **RMB 4.095 million**, mainly due to deferred tax shifting from a gain to an expense Income Tax Expense (RMB thousand) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Current Income Tax | (**2,031**) | (**3,418**) | | Deferred Tax | (**2,064**) | **2,392** | | **Income Tax Expense** | (**4,095**) | (**1,026**) | - Hong Kong profits tax operates under a two-tiered system, with a tax rate of **8.25%** for the first **HKD 2,000,000** of assessable profits for qualifying entities, and **16.5%** for the remainder[21](index=21&type=chunk) - Goldpac Limited, a subsidiary in mainland China, enjoys a preferential corporate income tax rate of **15%** as a high-tech enterprise from **2023** to **2025**[22](index=22&type=chunk) [Dividends](index=11&type=section&id=3.7%20Dividends) The Board resolved not to declare an interim dividend for H1 2025; the 2024 annual final dividend was **HKD 5.5 cents** per share Dividends Declared (RMB thousand) | Dividend Type | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | 2024 Annual Final Dividend (HKD **5.5 cents** per share) | **40,172** | - | | 2023 Annual Final Dividend (HKD **10.0 cents** per share) | - | **73,817** | | 2023 Annual Special Dividend (HKD **4.0 cents** per share) | - | **29,526** | - The Board resolved not to declare an interim dividend for the six months ended June **30**, **2025**[23](index=23&type=chunk) [Earnings Per Share](index=11&type=section&id=3.8%20Earnings%20Per%20Share) H1 2025 basic earnings per share decreased to **RMB 2.9 cents** from **3.8 cents**, with diluted EPS being identical due to no dilutive shares Earnings Per Share (RMB cents) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit for the Year Attributable to Owners of the Company (RMB thousand) | **23,532** | **31,144** | | Weighted Average Number of Ordinary Shares (thousand shares) | **798,700** | **809,789** | | **Basic Earnings Per Share (RMB cents)** | **2.9** | **3.8** | - For the six months ended June **30**, **2025**, and June **30**, **2024**, diluted earnings per share were the same as basic earnings per share, as there were no potentially dilutive ordinary shares outstanding during the period[24](index=24&type=chunk) [Inventories](index=12&type=section&id=3.9%20Inventories) As of June 30, 2025, total inventories amounted to **RMB 285 million**, an increase from the end of 2024, primarily reflecting growth in raw materials and finished goods inventory; meanwhile, provisions for writing down inventories to net realizable value decreased Inventory Composition (RMB thousand) | Inventory Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw Materials | **212,341** | **179,242** | | Work-in-progress | **2,593** | **4,834** | | Finished Goods | **121,165** | **113,755** | | **Total** | **336,099** | **297,831** | | Less: Write-down of Inventories to Net Realizable Value | (**50,950**) | (**60,186**) | | **Net Inventories** | **285,149** | **237,645** | [Trade Receivables](index=12&type=section&id=3.10%20Trade%20Receivables) As of June 30, 2025, net trade receivables amounted to **RMB 291 million**, an increase from the end of 2024; aging analysis shows an increased proportion of trade receivables aged 91-180 days and 181-365 days Trade Receivables (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Trade Receivables | **295,386** | **266,525** | | Less: Provision for Impairment Loss | (**4,007**) | (**4,699**) | | **Net Trade Receivables** | **291,379** | **261,826** | Aging Analysis of Trade Receivables (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0-90 days | **167,334** | **181,298** | | 91-180 days | **53,079** | **21,602** | | 181-365 days | **38,807** | **27,719** | | Over one year | **32,159** | **31,207** | | **Total** | **291,379** | **261,826** | [Trade and Bills Payables](index=13&type=section&id=3.11%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables amounted to **RMB 364 million**, an increase from the end of 2024; some suppliers extended credit terms to **360** days, leading to a significant increase in trade and bills payables aged 181-365 days Trade and Bills Payables (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables | **284,504** | **253,412** | | Secured Bills Payable | **79,853** | **63,823** | | **Total** | **364,357** | **317,235** | Aging Analysis of Trade and Bills Payables (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0-90 days | **237,878** | **260,262** | | 91-180 days | **46,253** | **39,540** | | 181-365 days | **75,925** | **12,433** | | Over one year | **4,301** | **5,000** | | **Total** | **364,357** | **317,235** | - Some suppliers extended credit terms to **360** days, leading to an increase in trade and bills payables aged **181** to **365** days[30](index=30&type=chunk) [Share Capital](index=14&type=section&id=3.12%20Share%20Capital) As of June 30, 2025, the number of issued and fully paid ordinary shares decreased to **805,802 thousand** shares due to share repurchases and cancellations, but the share capital amount remained unchanged Share Capital Movement (thousand shares) | Metric | Number of Ordinary Shares (thousand shares) | Amount (HKD thousand) | | :--- | :--- | :--- | | December 31, 2024 (Audited) | **807,928** | **1,499,498** | | Shares repurchased and cancelled in the market | (**2,126**) | - | | **June 30, 2025 (Unaudited)** | **805,802** | **1,499,498** | [Management Discussion and Analysis](index=15&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) Management discusses the operating environment, business performance, strategic initiatives, financial position, and capital management for the period [Operating Environment and Overall Performance Review](index=15&type=section&id=4.1%20Operating%20Environment%20and%20Overall%20Performance%20Review) H1 2025 saw revenue pressure but improved gross margin from digital strategies, maintaining robust financials and ample liquidity for future growth - The global political and economic environment is complex and volatile, China's economy is stable but household consumption is weak, and bank clients face challenges such as conservative credit consumption and intensified competition[32](index=32&type=chunk) - The Group firmly implements its digital and platform-based strategies, fully advancing the UMV platform to achieve intelligent and visualized service operation processes, supporting banks in compliance management and marketing innovation[32](index=32&type=chunk) - The global market footprint has expanded to **41** countries and regions, achieving breakthroughs in Asia-Pacific, the Middle East, and other areas[33](index=33&type=chunk) - Despite a **15.5%** year-on-year revenue decrease to **RMB 458 million**, gross profit increased by **1.2%** to **RMB 134 million**, with gross margin improving by **4.9 percentage points** to **29.3%**[34](index=34&type=chunk) - Profit for the period decreased by **22.7%** year-on-year to **RMB 23.6 million**, but excluding exchange gains and losses, it decreased by approximately **11.9%** to **RMB 26.1 million**, indicating stable operating profitability[35](index=35&type=chunk) - The financial position is robust, with total current assets of approximately **RMB 1.71 billion**, a current ratio of approximately **3.8**, a quick ratio of approximately **3.2**, and an asset-liability ratio of approximately **19.7%**[35](index=35&type=chunk) [Business Segment Performance](index=16&type=section&id=4.2%20Business%20Segment%20Performance) H1 2025 embedded software revenue slightly increased with improved gross margin, while platform and services revenue declined but saw significant gross margin growth Business Segment Performance (RMB) | Segment | Revenue (2025 H1) | YoY Revenue Change | Gross Margin (2025 H1) | YoY Gross Margin Change | YoY Gross Profit Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Embedded Software and Secure Payment Products | **292 million** | +**0.7%** | **23.8%** | +**2.2 percentage points** | +**10.8%** | | Platform and Services Business | **165 million** | -**34.3%** | **38.9%** | +**11.3 percentage points** | -**7.4%** | [Strategic Focus and Business Development](index=17&type=section&id=4.3%20Strategic%20Focus%20and%20Business%20Development) The company advances UMV platform construction, launches 'Digital First + Chip Encryption' solutions, and expands global markets and communication & IoT businesses [UMV Platform Construction and Digital First Strategy](index=17&type=section&id=4.3.1%20UMV%20Platform%20Construction%20and%20Digital%20First%20Strategy) The Group leverages its UMV platform and 'Digital First + Chip Encryption' solutions to provide smart payment services, support digital currency, and explore stablecoin hardware wallets - The UMV platform has completed its foundational architecture, featuring industry-leading technical architecture, multi-layered encryption security, and strong scalability, achieving a digital upgrade of its operating model[37](index=37&type=chunk) - As of June **30**, **2025**, over **2,200** clients in the financial and transportation sectors have accessed the UMV platform, achieving full business digitalization[36](index=36&type=chunk) - Launched a 'Digital First + Chip Encryption' comprehensive solution to help global banks and third-party payment institutions deploy independently, enabling rapid card issuance and adapting to digital currency development[38](index=38&type=chunk) - Closely monitoring the effective date of Hong Kong's 'Stablecoin Regulation', the company is developing stablecoin hardware wallets and related derivative products with pre-quantum-resistant cryptographic algorithms based on secure chips[38](index=38&type=chunk) [Global Market and Communication & IoT Business Expansion](index=18&type=section&id=4.3.2%20Global%20Market%20and%20Communication%20%26%20IoT%20Business%20Expansion) The Group expands its global market footprint to **41** countries and focuses on new cellular communication and IoT connectivity businesses, leveraging eSIM technology - The global market footprint has expanded to **41** countries and regions, with rapid progress in Asia-Pacific and Middle Eastern markets, and is expected to achieve breakthroughs in Central and South American markets in H2 **2025**[39](index=39&type=chunk) - Future business development will focus on new areas such as cellular communication and IoT connectivity, leveraging eSIM-related connection management technology to provide digital identity authentication, remote connection management and control, and secure access services[39](index=39&type=chunk) - A global connection management service platform is under construction, focusing on application scenarios such as consumer electronics, connected vehicles, smart manufacturing, and information security[39](index=39&type=chunk) [Financial Position and Liquidity](index=20&type=section&id=4.4%20Financial%20Position%20and%20Liquidity) The Group maintains a robust financial position with ample liquidity, totaling **RMB 1.339 billion** in cash and financial assets, and no bank borrowings - The Group possesses ample liquidity and financial resources, fully capable of meeting daily working capital needs and supporting R&D and business expansion plans[44](index=44&type=chunk) Cash and Financial Assets (RMB million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Cash and Cash Equivalents, Bank Time Deposits, Pledged Bank Deposits, and Financial Assets at Fair Value Through Profit or Loss | **1,338.7** | **1,332.8** | | Of which: RMB proportion | **89.7%** (**1,200.3**) | **88.5%** (**1,178.9**) | | USD and HKD proportion | **10.3%** (**138.4**) | **11.5%** (**153.9**) | - Financial assets at fair value through profit or loss amounted to approximately **RMB 96.4 million**, consisting of principal-protected structured bank deposits[44](index=44&type=chunk) - As of June **30**, **2025**, total trade receivables amounted to approximately **RMB 291.4 million**, with collection peaks concentrated at year-end[45](index=45&type=chunk) Financial Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | **3.8** | **4.1** | | Asset-Liability Ratio | **19.7%** | **18.3%** | - The Group has no bank borrowings and has not used any financial instruments for hedging purposes[46](index=46&type=chunk) - As of June **30**, **2025**, total capital expenditure was approximately **RMB 12.9 million**, and total capital commitments were approximately **RMB 1.0 million**[48](index=48&type=chunk)[49](index=49&type=chunk) [Dividend Policy and Use of IPO Proceeds](index=19&type=section&id=4.5%20Dividend%20Policy%20and%20Use%20of%20IPO%20Proceeds) The Board resolved not to declare an H1 2025 interim dividend; IPO net proceeds of **RMB 975 million** were largely utilized for capacity expansion and R&D - The Board resolved not to declare an interim dividend for the six months ended June **30**, **2025**[42](index=42&type=chunk) - Net proceeds from the initial global offering amounted to approximately **RMB 975.0 million**, of which approximately **RMB 867.3 million** had been utilized as of June **30**, **2025**[43](index=43&type=chunk) - The proceeds were used for capacity expansion, R&D of new products and services, company joint ventures and acquisitions, market expansion, supplementing company working capital, and other general corporate purposes[43](index=43&type=chunk) [Share Repurchases](index=22&type=section&id=4.6%20Share%20Repurchases) For H1 2025, the company repurchased **835,000** ordinary shares for approximately **HKD 848,000**, which were subsequently cancelled on **March 17, 2025** Share Repurchase Details | Month | Number of Shares Repurchased | Highest Price Per Share (HKD) | Lowest Price Per Share (HKD) | Total Consideration Paid (HKD) | | :--- | :--- | :--- | :--- | :--- | | 2025年1月 | **835,000** | **1.02** | **1.00** | **848,231.32** | | **Total** | **835,000** | - | - | **848,231.32** | - All repurchased shares were cancelled on **March 17, 2025**[55](index=55&type=chunk) [Corporate Governance and Social Responsibility](index=22&type=section&id=V.%20Corporate%20Governance%20and%20Social%20Responsibility) This section outlines the company's commitment to ESG standards, employee policies, and adherence to corporate governance principles [Environmental, Social and Corporate Governance](index=22&type=section&id=5.1%20Environmental,%20Social%20and%20Corporate%20Governance) The Group maintains high ESG standards with a dedicated management team, achieving a **Wind ESG A-rating** for three consecutive years - The Group has an ESG management team that continuously manages, monitors, advises, and reports on environmental, social, and governance aspects[57](index=57&type=chunk) - The Group has complied with all anti-corruption, health and safety, working environment, employment, and environmental laws and regulations relevant to its business[57](index=57&type=chunk) - Since **2023**, the Group has received a **Wind ESG A-rating** for **3 years**, indicating its leading position in sustainable development within the industry[39](index=39&type=chunk) [Employees and Remuneration Policy](index=23&type=section&id=5.2%20Employees%20and%20Remuneration%20Policy) Benefiting from digital transformation, the Group optimized its workforce to **1,254** employees, offering competitive compensation and incentive schemes - As of June **30**, **2025**, the Group employed **1,254** staff, a decrease of **28** from the end of **2024**[59](index=59&type=chunk) - Total staff welfare expenses were approximately **RMB 97.2 million**, lower than **RMB 111.1 million** in the prior year[59](index=59&type=chunk) - The company offers competitive compensation and benefits, career development, and training programs, and implements share option schemes and share award schemes to incentivize employees[59](index=59&type=chunk) - Compensation policy is based on individual employee performance, qualifications, and capabilities, and is regularly reviewed by the Remuneration Committee[60](index=60&type=chunk) [Corporate Governance Statement](index=23&type=section&id=5.3%20Corporate%20Governance%20Statement) The Company complied with all applicable Corporate Governance Code provisions, with the Chairman and CEO roles combined for effective strategy execution - The Company has complied with all applicable code provisions set out in Part **2** of the Corporate Governance Code, except for the deviation from code provision C.**2.1**[61](index=61&type=chunk) - Mr. Lu Runting concurrently serves as the Chairman and Chief Executive Officer of the Company, an arrangement the Board believes facilitates effective planning and execution of business decisions and strategies[62](index=62&type=chunk) [Standard Securities Dealing Code for Directors](index=24&type=section&id=5.4%20Standard%20Securities%20Dealing%20Code%20for%20Directors) The Company adopted and complied with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C**3** of the Listing Rules[63](index=63&type=chunk) - Following specific enquiries made to all Directors, all Directors of the Company have confirmed compliance with the Model Code for the six months ended June **30**, **2025**[63](index=63&type=chunk) [Review and Publication](index=24&type=section&id=5.5%20Review%20and%20Publication) The Audit Committee reviewed the interim results, audited by PricewaterhouseCoopers, with the announcement published on HKEX and company websites - The Company's Audit Committee has reviewed the Group's unaudited interim results for the six months ended June **30**, **2025**[64](index=64&type=chunk) - The Company's auditor, PricewaterhouseCoopers, has reviewed the interim results in accordance with HongKONG Standard on Review Engagements **2410** issued by the Hong Kong Institute of Certified Public Accountants[64](index=64&type=chunk) - This interim results announcement is available on the HKEX website (www.hkexnews.hk) and the Company's website (www.goldpac.com)[65](index=65&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 68,857,000, representing a 14.0% increase from HKD 60,210,000 in the same period of 2024[3] - Gross profit for the same period was HKD 18,177,000, up 43.9% from HKD 12,629,000 year-on-year[3] - The net profit for the six months ended June 30, 2025, was HKD 723,000, compared to a net loss of HKD 2,956,000 in the prior year[3] - Total comprehensive income for the period was HKD 2,793,000, a significant improvement from a total comprehensive loss of HKD 4,489,000 in the previous year[4] - Basic and diluted earnings per share for the period were HKD 0.04, compared to a loss per share of HKD 0.16 in the same period last year[4] - Revenue from Hong Kong increased to HKD 66,419,000, up 16.5% from HKD 57,009,000 in 2024[14] - The group reported a profit of HKD 723,000 for the six months ended June 30, 2025, compared to a loss of HKD 2,956,000 in the same period of 2024[22] - Revenue increased by approximately 14.4% from about HKD 60.2 million for the six months ended June 30, 2024, to about HKD 68.9 million for the six months ended June 30, 2025, driven by higher sales orders from customers[33] - The company's gross profit rose from approximately HKD 12.6 million for the six months ended June 30, 2024, to about HKD 18.2 million for the same period in 2025, reflecting the combined effect of revenue growth and effective cost management[35] Assets and Liabilities - Non-current assets as of June 30, 2025, totaled HKD 30,930,000, down from HKD 33,491,000 as of December 31, 2024[5] - Current assets decreased to HKD 170,146,000 from HKD 174,412,000 at the end of 2024[5] - The company's total liabilities decreased from HKD 38,929,000 in December 2024 to HKD 29,745,000 as of June 30, 2025[6] - The net asset value increased to HKD 170,130,000 from HKD 167,337,000 at the end of 2024[6] - The average credit period granted to trade customers is between 0 to 90 days, with a total accounts receivable of HKD 40,815,000 as of June 30, 2025[27] - Contract assets amounted to HKD 17,740,000 as of June 30, 2025, down from HKD 24,224,000 at the end of 2024[25] Expenses and Costs - The cost of sales for the six months ended June 30, 2025, was approximately HKD 50.7 million, an increase of about 6.5% from approximately HKD 47.6 million for the same period in 2024[34] - Administrative and other expenses increased by approximately HKD 1.3 million or about 9.1% to approximately HKD 15.7 million for the six months ended June 30, 2025, compared to approximately HKD 14.4 million for the same period in 2024[38] - The group's financing costs included lease liabilities interest expense of HKD 73,000 for the six months ended June 30, 2025, compared to HKD 93,000 in 2024[15] - The group recognized a net exchange gain of HKD (127,000) for the six months ended June 30, 2025, compared to HKD (203,000) in 2024[19] - As of June 30, 2025, the total employee cost for the six months was approximately HKD 17.0 million, a decrease from HKD 18.6 million for the same period in 2024[53] Investments and Dividends - The group did not declare any interim dividend for the six months ended June 30, 2025, consistent with the previous year[20] - The company did not have any significant investments or acquisitions during the six months ended June 30, 2025[46] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the previous period[52] Corporate Governance and Compliance - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2025, and confirmed the accounting principles adopted by the company[58] - The company has complied with all applicable provisions of the corporate governance code during the reporting period[56] - The company will continue to review its corporate governance structure and make necessary adjustments as needed[56] Operational Challenges - The company continues to focus on the sales and manufacturing of low-voltage distribution and power control devices, maintaining a single operating segment[12] - The company faced challenges in the construction market due to a shortage of skilled labor and global supply chain disruptions, impacting project delivery timelines and operational costs[31] - The group had 219 full-time employees as of June 30, 2025, down from 221 as of December 31, 2024[53] Miscellaneous - The company had cash and cash equivalents of approximately HKD 72.7 million as of June 30, 2025, compared to approximately HKD 63.8 million as of December 31, 2024[42] - The company's operating working capital was approximately HKD 140.4 million as of June 30, 2025, compared to approximately HKD 135.5 million as of December 31, 2024[42] - There were no significant contingent liabilities as of June 30, 2025, the same as December 31, 2024[50] - There were no purchases, sales, or redemptions of the company's listed securities during the six months ended June 30, 2025[54] - No significant events occurred after the reporting period up to the date of the announcement[51] - The company has adopted a stock option plan since April 23, 2018, with no unexercised options as of the announcement date[57]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Kingsoft Cloud Holdings Limited 金山云控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3896） （納斯達克股票代碼：KC） 截至二零二五年六月三十日止六個月的中期業績公告 金山云控股有限公司（「本公司」）之董事（「董事」）會（「董事會」）欣然公佈本公 司、其子公司及併表聯屬實體（統稱「本集團」）截至二零二五年六月三十日止六個 月（「報告期」）的未經審計中期綜合業績，以及二零二四年同期比較數據。該等截 至二零二五年六月三十日止六個月的未經審計簡明合併財務報表乃根據美國公認 會計準則（「美國公認會計準則」）編製，並已由本公司之審計委員會（「審計委員 會」）審閱。 於本公告中，「我們」及「我們的」指本公司及（除文義另有所指）本集團。 | 財務摘要 | | | | | --- | --- | --- | --- | | | 截至六月三十日止六個月 | | | | | ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Revenue and operating profit significantly increased in H1 2025, despite an expanded loss attributable to owners of the Company 2025 First Half Key Financial Indicators Comparison | Indicator | 2025 First Half (HK$ thousand) | 2024 First Half (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,506,515 | 741,255 | +373.1 | | Operating Profit/(Loss) | 105,606 | (6,463) | +1,734.0 | | EBITDA | 419,511 | 20,858 | +1,911.3 | | Loss attributable to owners of the Company | (109,534) | (21,347) | +413.1 | [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the consolidated financial performance, comprehensive income, and financial position for the reporting period [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) During the reporting period, the company's revenue significantly grew to HK$3.5 billion, and operating profit turned positive, but losses for the period and attributable to owners of the Company expanded due to increased finance costs and income tax Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 3,506,515 | 741,255 | | Other Income | 33,472 | 13,156 | | Operating Profit/(Loss) | 105,606 | (6,463) | | Finance Costs | (203,196) | (12,782) | | Loss Before Tax | (97,590) | (19,245) | | Income Tax | (13,309) | (1,729) | | Loss for the Period | (110,899) | (20,974) | | Loss attributable to owners of the Company | (109,534) | (21,347) | | Basic and Diluted Loss Per Share | (2.63) HK cents | (0.55) HK cents | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) The company reported a loss for the period of HK$111 million, but positive other comprehensive income from exchange differences and fair value changes of cash flow hedges narrowed the total comprehensive loss for the period Consolidated Statement of Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loss for the Period | (110,899) | (20,974) | | Exchange differences on translation of operations in other jurisdictions | 3,715 | (1,871) | | Cash flow hedges: fair value changes | 7,093 | – | | Other comprehensive income for the period | 10,009 | (64,058) | | Total comprehensive income for the period | (100,890) | (85,032) | | Total comprehensive income attributable to owners of the Company | (99,795) | (85,266) | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly decreased, non-current assets remained stable, and net current liabilities improved, while total liabilities slightly increased, leading to a decrease in net assets and total equity Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 8,287,977 | 8,654,017 | | Current Assets | 1,448,138 | 1,216,137 | | Current Liabilities | 1,858,791 | 1,763,958 | | Net Current Liabilities | (410,653) | (547,821) | | Non-current Liabilities | 6,971,667 | 7,036,116 | | Net Assets | 905,657 | 1,070,080 | | Total Equity attributable to owners of the Company | 886,935 | 1,050,263 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) Detailed explanations and disclosures on accounting policies, financial performance, and position are provided within the financial statements [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The interim financial report is prepared in accordance with HKAS 34, unaudited but reviewed by KPMG, with the directors affirming the going concern basis despite net current liabilities - The interim financial report is prepared in accordance with HKAS 34, unaudited but reviewed by KPMG[12](index=12&type=chunk)[14](index=14&type=chunk)[100](index=100&type=chunk) - As of June 30, 2025, the Group's net current liabilities amounted to **HK$410.7 million**, but the directors believe the Group has sufficient funds to meet its obligations and prepared the report on a going concern basis[13](index=13&type=chunk) - The Group has **HK$236.2 million** in unutilized bank financing facilities to support its going concern[15](index=15&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=Changes%20in%20Accounting%20Policies) Certain HKFRS amendments issued by the HKICPA became effective for the first time during the reporting period, but they had no significant impact on the Group's results or financial position, and no new standards were early adopted - Newly effective HKFRS amendments had no significant impact on the Group's results and financial position[16](index=16&type=chunk) - The Group has not early applied any new standards or interpretations not yet effective for the current accounting period[17](index=17&type=chunk) [Revenue and Segment Reporting](index=7&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's operations are categorized into four reportable segments: terminal and storage, trading, transport, media and advertising, and others, with detailed disclosures on revenue, assets, liabilities, and segment performance reconciliation [Segment Results, Assets and Liabilities](index=7&type=section&id=Segment%20Results,%20Assets%20and%20Liabilities) The Group's senior management assesses segment performance and allocates resources based on the results, assets, and liabilities attributable to each reportable segment, with clear methods for asset and liability allocation - The Group identified four reportable segments: terminal and storage, trading, transport, media and advertising, and others[18](index=18&type=chunk)[20](index=20&type=chunk) - Segment assets include tangible, intangible, and current assets, excluding other company assets; segment liabilities include trade and other payables, contract liabilities, lease liabilities, and directly managed bank loans[18](index=18&type=chunk) [Revenue Breakdown](index=8&type=section&id=Revenue%20Breakdown) For the six months ended June 30, 2025, the Group's total revenue was HK$3.5065 billion, primarily driven by sales of oil and petrochemical products, fare income, and advertising income, with transport business revenue included for the first time due to the acquisition of Citybus Group Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Storage and Warehouse Income | 34,522 | 44,928 | | Income from Operating Filling Stations | 28,067 | – | | Port and Throughput Income | 16,214 | 18,670 | | Sales of Oil and Petrochemical Products | 1,266,966 | 675,015 | | Fare Income | 1,942,737 | – | | Advertising Income | 201,329 | – | | Bus Rental Income | 11,875 | – | | Miscellaneous | 4,805 | – | | **Total Revenue** | **3,506,515** | **741,255** | [Reconciliation of Segment Results](index=8&type=section&id=Reconciliation%20of%20Segment%20Results) For the six months ended June 30, 2025, the aggregate loss before tax for reportable segments was HK$24.203 million, which, after adding unallocated other income and deducting unallocated head office and corporate expenses, resulted in a consolidated loss before tax of HK$97.59 million Reconciliation of Reportable Segment Loss/(Profit) Before Tax to Consolidated Loss Before Tax (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Reportable Segment Loss/(Profit) Before Tax | (24,203) | 7,427 | | Unallocated Other Income | 14,280 | 5,538 | | Unallocated Head Office and Corporate Expenses | (87,667) | (32,210) | | **Consolidated Loss Before Tax** | **(97,590)** | **(19,245)** | [Other Income](index=9&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income increased to HK$33.472 million, primarily driven by gains from early settlement of deferred payments and fair value gains on embedded derivatives related to the acquisition of non-controlling interests Other Income Breakdown (For the six months ended June 30) | Income Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest Income | 5,010 | 9,675 | | Net Exchange Loss | (3,812) | (1,333) | | Gain on Early Settlement of Deferred Payments | 9,313 | – | | Fair Value Gain on Embedded Derivatives related to Acquisition of Non-controlling Interests | 8,290 | – | | Others | 14,671 | 4,814 | | **Total** | **33,472** | **13,156** | [Loss Before Tax](index=10&type=section&id=Loss%20Before%20Tax) Loss before tax primarily comprises finance costs, staff costs, and other items such as depreciation and amortisation, with finance costs and staff costs significantly increasing during the reporting period due to acquisitions and business expansion Loss Before Tax Components (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Finance Costs | 203,196 | 12,782 | | Staff Costs | 1,110,638 | 25,176 | | Amortisation – Intangible Assets | 26,149 | 80 | | Depreciation – Property, Plant and Equipment | 207,349 | 20,719 | | Depreciation – Right-of-Use Assets | 80,407 | 5,387 | [Income Tax](index=10&type=section&id=Income%20Tax) For the six months ended June 30, 2025, income tax expense was HK$13.309 million, a significant increase from the prior year, primarily including PRC Enterprise Income Tax, Hong Kong Profits Tax, and deferred tax Income Tax Expense Breakdown (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Tax – PRC Enterprise Income Tax (provision for the period) | (404) | (2,126) | | Current Tax – PRC Enterprise Income Tax (over-provision in prior periods) | 91 | 417 | | Current Tax – Hong Kong Profits Tax (provision for the period) | (2,381) | – | | Current Tax – Hong Kong Profits Tax (over-provision/(under-provision) in prior periods) | 1,771 | (20) | | Deferred Tax | (12,386) | – | | **Total** | **(13,309)** | **(1,729)** | - PRC subsidiaries are subject to a statutory income tax rate of **25%**, Hong Kong Profits Tax is provided at **16.5%**, and some subsidiaries are subject to a two-tiered profits tax regime[27](index=27&type=chunk) [Loss Per Share](index=11&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share was 2.63 HK cents, a significant increase from 0.55 HK cents in the prior year, mainly due to the increased loss attributable to owners of the Company Loss Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the Company (HK$ thousand) | 109,534 | 21,347 | | Weighted average number of ordinary shares in issue (thousands) | 4,156,964 | 3,878,048 | | **Basic and Diluted Loss Per Share (HK cents)** | **(2.63)** | **(0.55)** | - Diluted loss per share is the same as basic loss per share as there were no dilutive potential ordinary shares during the reporting period[26](index=26&type=chunk) [Trade and Other Receivables, Prepayments and Deposits](index=12&type=section&id=Trade%20and%20Other%20Receivables,%20Prepayments%20and%20Deposits) As of June 30, 2025, trade receivables (net of loss allowance) increased to HK$274 million, while prepayments, other receivables, and contract assets decreased, with an average credit period of 5 to 180 days Trade and Other Receivables Ageing Analysis (As of June 30) | Item | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables (net of loss allowance) | 274,003 | 186,488 | | Prepayments and Other Receivables | 110,470 | 165,752 | | Contract Assets | 66,653 | 112,400 | | **Total** | **451,126** | **464,640** | - The Group grants an average credit period of **5 to 180 days** to its trade customers[28](index=28&type=chunk) [Trade and Other Payables and Contract Liabilities](index=13&type=section&id=Trade%20and%20Other%20Payables%20and%20Contract%20Liabilities) As of June 30, 2025, trade payables and bills payable significantly increased to HK$339.9 million, contract liabilities slightly decreased, and other payables and accrued charges remained high Trade and Other Payables Ageing Analysis (As of June 30) | Item | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables and Bills Payable | 339,895 | 102,550 | | Contract Liabilities | 150,097 | 156,790 | | Other Payables and Accrued Charges | 1,839,166 | 1,863,558 | | Provisions | 163,041 | 154,325 | | **Total** | **2,492,199** | **2,277,223** | | Less: Non-current Portion (long service payment provision) | (49,906) | (46,796) | | Less: Non-current Portion (other payables – liabilities for acquisition of non-controlling interests) | (1,410,512) | (1,382,704) | | Less: Non-current Portion (other payables – others) | – | (3,137) | | **Current Portion** | **1,031,781** | **844,586** | [Bank and Other Borrowings](index=13&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, total bank and other borrowings increased to HK$3.0805 billion, with most being non-current and secured bank loans, primarily repayable after two years Bank and Other Borrowings Carrying Value Analysis (As of June 30) | Type | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Liabilities | 370,248 | 290,161 | | Non-current Liabilities | 2,710,207 | 2,104,634 | | **Total** | **3,080,455** | **2,394,795** | Bank and Other Borrowings Repayment Schedule (As of June 30) | Repayment Period | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank loans (secured) repayable within one year or on demand | 339,693 | 290,161 | | Bank loans (secured) repayable after one year but within two years | 166,360 | 134,757 | | Bank loans (secured) repayable after two years but within five years | 2,391,490 | 1,714,826 | | Bank loans (secured) repayable after five years | 152,357 | 177,051 | | Other loans (unsecured) repayable within one year or on demand | 30,555 | – | | Other loans (unsecured) repayable after one year but within two years | – | 78,000 | | **Total** | **3,080,455** | **2,394,795** | - The Group's bank loans are secured by property, plant and equipment, interests in leasehold land and buildings, trade and other receivables, cash and bank balances, and shares of certain subsidiaries[34](index=34&type=chunk)[95](index=95&type=chunk) [Amounts Due to Related Parties and Joint Ventures](index=14&type=section&id=Amounts%20Due%20to%20Related%20Parties%20and%20Joint%20Ventures) Amounts due to related parties and joint ventures are unsecured, interest-free, and repayable within one year, except for HK$900 million repayable on March 23, 2031, at an annual interest rate of 2.5% - Amounts due to related parties and joint ventures are mostly unsecured, interest-free, and repayable within one year[35](index=35&type=chunk) - Of these, **HK$900 million** is repayable on March 23, 2031, at an annual interest rate of **2.5%**[35](index=35&type=chunk) [Dividends](index=15&type=section&id=Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, while the 2024 final dividend was paid on July 11, 2025, with HK$42.043 million settled through a scrip dividend scheme - The Board does not recommend an interim dividend for the first half of 2025[36](index=36&type=chunk)[99](index=99&type=chunk) - The 2024 final dividend was paid on July 11, 2025, with **HK$42.043 million** settled by issuing **151.8 million** shares under a scrip dividend scheme[36](index=36&type=chunk) [Commitments](index=15&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments for property, plant and equipment, contracted but not provided for, amounted to HK$19.747 million Capital Commitments (As of June 30) | Item | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contracted but not provided for | 19,747 | 19,820 | [Non-adjusting Events After the Reporting Period](index=15&type=section&id=Non-adjusting%20Events%20After%20the%20Reporting%20Period) After the reporting period, Dongzhou International received approval to convert an oil and gas berth into an LPG-specific berth with an estimated annual throughput capacity of 2.02 million metric tons, and Citybus prematurely terminated its advertising agreement with JCD, with Huitong Media taking over, expected to boost advertising revenue - Dongzhou International received approval to convert a 50,000-metric-ton oil and gas berth into an LPG-specific berth, with a designed annual throughput capacity of approximately **2.02 million metric tons**, and the renovation project contract value is **HK$61.883 million**[38](index=38&type=chunk)[39](index=39&type=chunk) - Citybus prematurely terminated its bus shelter advertising agreement with JCDecaux Transport Limited, paying approximately **HK$96.8 million** in termination fees, with Huitong Media becoming the exclusive advertising service provider, expected to enhance advertising revenue and profitability[39](index=39&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business operations, financial performance, and future outlook, highlighting key achievements, challenges, and strategies [Business Review](index=16&type=section&id=Business%20Review) Hans Energy Group's business encompasses terminal ports, storage logistics, oil and petrochemical product trading, and filling station operations in the energy sector, and has expanded into public transport, media, and advertising services in Hong Kong through the acquisition of Citybus Group [Group Profile](index=16&type=section&id=Group%20Profile) Hans Energy Group is a major operator in the energy sector in South China, providing integrated terminal port, storage tank, and logistics services for petroleum and liquefied chemical products, and engaging in oil and petrochemical product trading, with its business expanding into Hong Kong public transport and media advertising services through the acquisition of 70% equity in Citybus Group in July 2024 - Hans Energy Group is a major operator in the energy sector in South China, providing terminal port, storage logistics, oil and petrochemical product trading, and filling station businesses[40](index=40&type=chunk) - In July 2024, the acquisition of **70%** equity in Citybus Transport Holdings Limited was completed, expanding business into Hong Kong public transport (Citybus) and media advertising services[40](index=40&type=chunk) [Terminal Storage Business](index=16&type=section&id=Terminal%20Storage%20Business) The Group owns and operates Dongzhou Petrochemical Terminal in Dongguan, Guangdong, with 94 storage tanks totaling approximately 260,000 cubic meters, generating revenue from tank leasing and terminal/land transport services, maintaining an average occupancy rate of 91.7% in the first half of 2025 despite macroeconomic headwinds - The Group owns and operates Dongzhou Petrochemical Terminal in Dongguan, with **94 storage tanks** totaling approximately **260,000 cubic meters** for gasoline, diesel, and petrochemical products[41](index=41&type=chunk) - The revenue model primarily involves leasing storage tanks, terminal and land cargo transport service fees, and ancillary services[44](index=44&type=chunk) Terminal Storage Business Operating Statistics (For the six months ended June 30) | Operating Statistics | 2025 | 2024 | Change % | | :--- | :--- | :--- | :--- | | Total Vessels Berthed – Foreign | 30 | 35 | -14.3 | | Total Vessels Berthed – Local | 400 | 435 | -8.0 | | Number of Trucks Receiving Cargo | 28,581 | 31,946 | -10.5 | | Number of Barrels Filled | 6,839 | 6,485 | +5.5 | | Throughput (metric tons) | 21,173 | 23,057 | -8.2 | | Tank Farm Throughput (metric tons) | 1,979,000 | 2,203,000 | -10.2 | | Terminal Throughput (metric tons) | 1,287,000 | 1,410,000 | -8.7 | - In the first half of 2025, Dongzhou Petrochemical Terminal maintained an average occupancy rate of **91.7%**, consistent with the prior year, but throughput, tank farm throughput, and terminal throughput all decreased[48](index=48&type=chunk) [Trading Business](index=18&type=section&id=Trading%20Business) The Group maintains a robust oil and petrochemical product trading platform in China, collaborating with leading energy companies such as CNOOC and Sinopec, and in the first half of 2025, the number of sales contracts and sales volume increased significantly by 25.7% and 46.8% respectively - The Group has established long-term cooperative relationships with leading energy companies such as CNOOC, Sinopec, and Sinochem Group, maintaining a robust oil and petrochemical product trading platform[49](index=49&type=chunk) Trading Business Operating Statistics (For the six months ended June 30) | Operating Statistics | 2025 | 2024 | Change % | | :--- | :--- | :--- | :--- | | Number of Sales Contracts Entered Into | 680 | 541 | +25.7 | | Sales Volume of Oil and Petrochemical Products (metric tons) | 160,000 | 109,000 | +46.8 | [Filling Station Business](index=19&type=section&id=Filling%20Station%20Business) The Group began direct operation of a filling station in Zengcheng District, Guangzhou, in August 2024, in collaboration with Sinochem Group, aiming to attract customers and drive sales growth through brand recognition and technical expertise - The Group began direct operation of a filling station in Zengcheng District, Guangzhou, in August 2024, having previously generated rental income through a lease agreement[52](index=52&type=chunk) - The filling station operates under the Sinochem Group brand, enhancing product competitiveness, safety management, and service quality through strategic cooperation[52](index=52&type=chunk) [Transport Business](index=20&type=section&id=Transport%20Business) Citybus is a major franchised public bus operator in Hong Kong, holding two bus franchises covering 237 routes with a fleet of over 1,700 buses, and also provides non-franchised bus services including staff buses, residential shuttle buses, and private hire services - Citybus holds two bus franchises, covering **237 bus routes**, with a fleet of over **1,700 registered buses**, serving Hong Kong Island, Kowloon, and the New Territories[53](index=53&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) - In the first half of 2025, Citybus's franchised and non-franchised bus businesses served approximately **179.6 million passengers**, with an average daily ridership of about **1 million passengers**[57](index=57&type=chunk) - Citybus operates three major brands: Citybus (urban and New Territories), Cityflyer (airport and cross-border services), and Rickshaw Sightseeing Bus (open-top sightseeing services)[58](index=58&type=chunk) - Citybus also provides non-franchised bus services, including staff buses, residential shuttle buses, private bus hire, and open-top bus hire services[54](index=54&type=chunk)[59](index=59&type=chunk) [Media and Advertising Business](index=22&type=section&id=Media%20and%20Advertising%20Business) The Group's advertising services are managed by Huitong Media, the exclusive agent for Citybus franchised bus body and interior advertising, which has also secured exclusive advertising rights for multiple MTR lines, covering 109 MTR stations and Citybus routes, reaching over 3.5 million passengers daily - Huitong Media is the exclusive agent for Citybus franchised bus body and interior advertising, with a contract period until 2033[61](index=61&type=chunk) - Huitong Media also secured exclusive advertising rights for MTR East Rail Line, Tuen Ma Line, Light Rail, and MTR Bus, valid until December 31, 2028, with an option to renew for up to five years[61](index=61&type=chunk) - Huitong Media covers **109 MTR stations** and Citybus routes, reaching over **3.5 million passengers daily**[61](index=61&type=chunk) [Outlook](index=23&type=section&id=Outlook) Hans Energy Group's revenue significantly grew in the first half of 2025, primarily due to the consolidation of Citybus and Huitong Media and growth in mainland oil product trading, with future plans including terminal upgrades, fare adjustments, non-fare revenue expansion, and advertising business integration to address challenges and seize growth opportunities [Terminal Storage and Trading Business Outlook](index=23&type=section&id=Terminal%20Storage%20and%20Trading%20Business%20Outlook) Facing macroeconomic and new energy vehicle impacts on oil consumption, Dongzhou Petrochemical Terminal will convert a 50,000-metric-ton berth into an LPG-specific terminal with an estimated annual throughput capacity of 2.02 million metric tons to meet market demand and drive revenue growth, while also promoting new storage and production projects on reserved land - Dongzhou Petrochemical Terminal will convert a 50,000-metric-ton berth into an LPG-specific terminal, with a designed annual throughput capacity of **2.02 million metric tons**, expected to be completed within next year, and long-term lease contracts have been signed, which will bring revenue growth[63](index=63&type=chunk) - The Group is collaborating with local governments and business partners to promote the construction of new storage and production projects on reserved land[63](index=63&type=chunk) [Transport Business Outlook](index=23&type=section&id=Transport%20Business%20Outlook) In the first half of 2025, transport business revenue grew by 9.5%, mainly due to a 7.5% fare increase and increased ridership for Citybus, which plans to actively explore non-fare revenue streams, such as opening idle charging facilities to the public, to address rising costs, competition from rail transport, and the challenge of updating its zero-emission fleet - In the first half of 2025, transport business revenue grew by **9.5%**, primarily due to a **7.5%** fare increase for Citybus and an increase of **4.3 million** passenger trips[64](index=64&type=chunk) - Citybus will actively explore non-fare revenue businesses, such as opening idle charging facilities to the public, to address challenges from inflation, competition from rail transport, and capital expenditure for updating its zero-emission fleet[64](index=64&type=chunk) [Media and Advertising Business Outlook](index=24&type=section&id=Media%20and%20Advertising%20Business%20Outlook) Huitong Media has become the fastest-growing outdoor advertising agency in the local market, generating HK$200 million in revenue in the first half of 2025, and the Group plans to transfer Citybus bus shelter advertising business to Huitong Media as the exclusive agent from October 2, 2025, expecting to further boost its turnover and synergy - Huitong Media is the fastest-growing outdoor advertising agency in the local market, with media and advertising business revenue of **HK$200 million** in the first half of 2025[65](index=65&type=chunk) - The Group plans to transfer Citybus bus shelter advertising business to Huitong Media as the exclusive agent from October 2, 2025, which is expected to increase annual turnover and enhance synergy[65](index=65&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) This section provides a comprehensive review of the Group's financial performance for the first half of 2025, including net loss, EBITDA, revenue composition, changes in various costs and taxes, as well as key financial indicators such as liquidity, gearing ratio, and capital structure [Group Results and EBITDA](index=25&type=section&id=Group%20Results%20and%20EBITDA) For the six months ended June 30, 2025, the Group's net loss increased to HK$110.9 million, mainly due to increased depreciation, amortisation, and finance costs following the acquisition of Citybus Group; despite this, EBITDA remained strong at HK$419.5 million, a 1,911.3% year-on-year increase Group Results and EBITDA (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Loss | (110,899) | (20,974) | +428.7 | | EBITDA | 419,511 | 20,858 | +1,911.3 | - The increase in net loss was primarily due to an increase of approximately **HK$89.1 million** in depreciation and amortisation resulting from fair value adjustments to property, plant and equipment and intangible assets after the acquisition of Citybus Group, and an increase of approximately **HK$50.5 million** in finance costs related to deferred payments and liabilities for put option shares[67](index=67&type=chunk) [Revenue](index=25&type=section&id=Revenue_FinancialReview) For the six months ended June 30, 2025, the Group's revenue reached HK$3.5065 billion, a 373.1% year-on-year increase, primarily driven by the consolidation of Citybus Group's revenue and significant growth in trading revenue, with transport and media & advertising businesses becoming new major revenue sources Revenue by Business Segment (For the six months ended June 30) | Business Segment | 2025 (HK$ thousand) | % of Total | 2024 (HK$ thousand) | % of Total | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Business (Sales of oil and petrochemical products) | 1,266,966 | 36.1 | 675,015 | 91.1 | +87.7 | | Terminal Storage Business (Storage and port throughput income) | 50,736 | 1.5 | 63,598 | 8.5 | -20.3 | | Filling Station Retail Business (Operating and rental income from filling stations) | 28,067 | 0.8 | 2,642 | 0.4 | +962.3 | | Transport Business (Fare and bus rental income, etc.) | 1,959,417 | 55.8 | – | – | Not Applicable | | Media and Advertising Business (Advertising income) | 201,329 | 5.8 | – | – | Not Applicable | | **Total Revenue** | **3,506,515** | **100.0** | **741,255** | **100.0** | **+373.1** | - The impressive revenue growth was primarily due to the consolidation of Citybus Group's revenue (approximately **HK$2.1607 billion**) and an increase of **HK$592 million** in trading revenue[69](index=69&type=chunk)[70](index=70&type=chunk) - Fare income mainly derived from Citybus's bus transport services, while advertising income came from bus shelters, bus body and interior advertising, and MTR line advertising services[71](index=71&type=chunk) [Other Income](index=26&type=section&id=Other%20Income_FinancialReview) For the six months ended June 30, 2025, other income increased to HK$33.5 million, a 154.4% year-on-year increase, driven by gains from early settlement of deferred payments and fair value gains on embedded derivatives Other Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 33,500 | 13,200 | +154.4 | - The increase was primarily due to gains from early settlement of deferred payments and fair value gains on embedded derivatives related to the acquisition of non-controlling interests[72](index=72&type=chunk) [Operating Costs](index=26&type=section&id=Operating%20Costs) For the six months ended June 30, 2025, operating costs increased to HK$3.4344 billion, a 351.4% year-on-year increase, mainly due to higher cost of inventories sold from increased trading revenue, and significant increases in staff costs, depreciation and amortisation, bus energy costs, and repair and maintenance expenses due to the consolidation of Citybus Group Operating Costs (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Costs | 3,434,400 | 760,900 | +351.4 | - Cost of inventories sold increased by **HK$615.5 million** (**+91.8%**), staff costs increased by **HK$1.0855 billion**, depreciation and amortisation increased by **HK$286.6 million**, bus energy costs increased by **HK$194.3 million**, and repair and maintenance increased by **HK$167.9 million**[73](index=73&type=chunk) [Finance Costs](index=27&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs significantly increased to HK$203.2 million, primarily due to deferred payments for acquisitions, liabilities related to put option shares, and higher interest on bank loans and lease liabilities following the acquisition of Citybus Group Finance Costs (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Finance Costs | 203,200 | 12,800 | - The increase in finance costs was mainly due to deferred payments for acquisitions, liabilities related to put option shares, and higher interest on bank loans and lease liabilities after the acquisition of Citybus Group[74](index=74&type=chunk) [Taxation](index=27&type=section&id=Taxation) For the six months ended June 30, 2025, income tax expense was HK$13.3 million, a 669.8% increase from the prior year Income Tax Expense (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 13,300 | 1,700 | +669.8 | [Basic and Diluted Loss Per Share](index=27&type=section&id=Basic%20and%20Diluted%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share were both 2.63 HK cents, a significant increase from 0.55 HK cents in the prior year Basic and Diluted Loss Per Share (For the six months ended June 30) | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (2.63) | (0.55) | [Liquidity, Gearing Ratio and Capital Structure](index=27&type=section&id=Liquidity,%20Gearing%20Ratio%20and%20Capital%20Structure) As of June 30, 2025, the Group's cash and bank balances were approximately HK$481 million, net current liabilities improved, and the current ratio was 0.78; total assets slightly decreased, and total equity decreased, leading to a gearing ratio of 90.7% Liquidity and Capital Structure Key Indicators (As of June 30) | Indicator | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cash and Bank Balances | 481,000 | 488,000 | | Net Current Liabilities | (410,700) | (547,800) | | Current Ratio | 0.78 | 0.69 | | Total Assets | 9,736,100 | 9,870,200 | | Outstanding Bank and Other Borrowings | 3,080,500 | 2,394,800 | | Total Equity | 905,700 | 1,070,100 | | Gearing Ratio | 90.7% | 89.2% | [Financial Resources](index=28&type=section&id=Financial%20Resources) The Group meets its working capital needs through business operations and bank financing, and management is confident in having sufficient financial resources to meet future debt obligations and support operations and expansion, while continuously monitoring capital market developments - The Group primarily meets its working capital needs through business operations and bank financing[79](index=79&type=chunk) - Management is confident in having sufficient financial resources to meet future debt obligations and support operations and expansion[79](index=79&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) Additional disclosures cover significant investments, risk management, employee information, asset pledges, commitments, contingent liabilities, and corporate governance matters [Significant Investments, Major Acquisitions and Disposals and Future Plans for Major Investments or Capital Assets](index=28&type=section&id=Significant%20Investments,%20Major%20Acquisitions%20and%20Disposals%20and%20Future%20Plans%20for%20Major%20Investments%20or%20Capital%20Assets) The Group's most significant investment during the reporting period was the acquisition of a 54.44% stake in Citybus Group, increasing its shareholding to 70% and leading to the consolidation of Citybus Group's assets and liabilities into the Group's financial statements, involving complex share subscriptions, acquisition agreements, and guarantee arrangements [Acquisition of 54.44% of HTL](index=28&type=section&id=Acquisition%20of%2054.44%25%20of%20HTL) The Group, through its wholly-owned subsidiary Glorify Group Limited, completed the acquisition of a 54.44% stake in Citybus on July 31, 2024, increasing its shareholding in Citybus to 70%, with a total consideration of HK$2.722 billion involving the issuance of consideration shares and deferred payments - Glorify, a wholly-owned subsidiary of the Group, completed the acquisition of a **54.44%** stake in Citybus on July 31, 2024, increasing its shareholding in Citybus to **70%**[85](index=85&type=chunk)[86](index=86&type=chunk) - The total acquisition consideration was **HK$2.722 billion**, involving the allotment and issuance of **278.9 million** consideration shares to TWB Holdings, and **HK$2 billion** in deferred payments, of which **HK$1.872 billion** has been settled[85](index=85&type=chunk)[88](index=88&type=chunk) - The new shareholders' agreement includes call option and put option terms for Citybus shares held by TWB Holdings[87](index=87&type=chunk) [Guarantees](index=30&type=section&id=Guarantees) To facilitate the acquisition, 51% of Citybus's total issued shares were re-pledged, with Glorify pledging 36% and TWB Holdings pledging 15%; additionally, Glorify independently pledged its 34% stake in Citybus as further security for deferred payments, resulting in all of its Citybus shares being pledged - **51%** of Citybus's total issued shares were re-pledged to NWS Services, with Glorify pledging **36%** and TWB Holdings pledging **15%**[89](index=89&type=chunk) - Glorify independently pledged its **34%** stake in Citybus as additional security for deferred payments under the acquisition, resulting in all of its Citybus shares (**7,000 shares**) being pledged[89](index=89&type=chunk) [Exchange Rate and Price Fluctuation Risks and Related Hedging](index=31&type=section&id=Exchange%20Rate%20and%20Price%20Fluctuation%20Risks%20and%20Related%20Hedging) The Group faces exchange rate, fuel price, and interest rate fluctuation risks; management deems exchange rate risk not significant, mitigates fuel price risk through back-to-back trading and centralized procurement, and hedges through supply contracts and fuel price call options, while interest rate risk is managed by close market monitoring and strategy formulation [Exchange Rate Risk](index=31&type=section&id=Exchange%20Rate%20Risk) The Group's cash is primarily held in HKD, RMB, and USD, with revenue and operating expenses also mainly denominated in HKD and RMB; management considers exchange rate fluctuation risk not significant as most income and expenses are naturally hedged against their functional currencies - The Group's cash and bank balances are primarily held in HKD, RMB, and USD, with income and expenses mainly denominated in HKD and RMB[91](index=91&type=chunk) - Management considers exchange rate fluctuation risk not significant as most income and expenses are naturally hedged against their respective functional currencies[91](index=91&type=chunk) [Fuel Price Risk](index=31&type=section&id=Fuel%20Price%20Risk) The Group mitigates oil price fluctuation risk through a back-to-back trading model for its trading business and centralized procurement for its filling station business; for public bus operations, fuel supply is stabilized and price risk is hedged through supply contracts with diesel suppliers and fuel price call option contracts - Trading business operates on a back-to-back trading model, and filling station business mitigates oil price fluctuation risk through centralized procurement[92](index=92&type=chunk) - Public bus operations mitigate fuel price risk through supply contracts with diesel suppliers and fuel price call option contracts[92](index=92&type=chunk) [Interest Rate Risk](index=31&type=section&id=Interest%20Rate%20Risk) The Group's interest rate risk primarily arises from bank and other borrowings, with over 70% of borrowings at floating rates; management will continue to closely monitor market conditions and formulate appropriate strategies to manage interest rate fluctuation risk - The Group's interest rate risk primarily arises from bank and other borrowings, with over **70%** of borrowings at floating rates[93](index=93&type=chunk) - Management will continue to closely monitor interest rate changes and review its interest rate risk management strategy[93](index=93&type=chunk) [Employees and Remuneration Policy](index=32&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had approximately 6,100 employees; remuneration and benefits are reviewed annually based on market conditions, qualifications, experience, responsibilities, and performance, with discretionary bonuses, share options, and share awards provided for outstanding performers - As of June 30, 2025, the Group had approximately **6,100 employees**[94](index=94&type=chunk) - Remuneration and benefits are reviewed annually based on market conditions, qualifications, experience, responsibilities, and performance, with discretionary bonuses, share options, and share awards provided for outstanding employees[94](index=94&type=chunk) [Group Assets Pledged](index=32&type=section&id=Group%20Assets%20Pledged) The Group has pledged certain property, plant and equipment, interests in leasehold land and buildings, trade and other receivables, cash and bank balances, and all issued shares of certain subsidiaries to lenders as security for bank financing - The Group has pledged certain property, plant and equipment, interests in leasehold land and buildings, trade and other receivables, cash and bank balances, and all issued shares of certain subsidiaries to lenders as security for bank financing[95](index=95&type=chunk) [Commitments](index=32&type=section&id=Commitments_OtherInformation) Details of commitments, primarily referring to capital commitments contracted but not provided for, are disclosed in Note 13 - Details of commitments are disclosed in Note 13, primarily referring to capital commitments contracted but not provided for[96](index=96&type=chunk) [Contingent Liabilities](index=32&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[97](index=97&type=chunk) [Events After Reporting Period](index=32&type=section&id=Events%20After%20Reporting%20Period) Details of events after the reporting period, mainly involving terminal renovation and the termination of an advertising agreement, are disclosed in Note 14 - Details of events after the reporting period are disclosed in Note 14, mainly involving terminal renovation and the termination of an advertising agreement[98](index=98&type=chunk) [Interim Dividend](index=32&type=section&id=Interim%20Dividend) 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[99](index=99&type=chunk) [Review of Interim Financial Report](index=33&type=section&id=Review%20of%20Interim%20Financial%20Report) The Group's unaudited interim financial report has been reviewed by independent auditor KPMG in accordance with Hong Kong Standard on Review Engagements 2410 and by the Board's audit committee - The interim financial report has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[100](index=100&type=chunk) - The interim financial report has also been reviewed by the Board's audit committee[100](index=100&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=33&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[101](index=101&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The Company's corporate governance practices are based on the Corporate Governance Code in Appendix C1 of the Listing Rules and have been complied with, except for a deviation from Code Provision F.2.2; all directors confirm full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules - The Company's corporate governance practices are based on the Corporate Governance Code in Appendix C1 of the Listing Rules and have been complied with, except for a deviation from Code Provision F.2.2[102](index=102&type=chunk) - All directors confirm full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules during the reporting period[104](index=104&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=34&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The interim results announcement for the six months ended June 30, 2025, has been published on the websites of Hong Kong Exchanges and Clearing Limited and the Company, and the interim report will be sent to shareholders upon request and published on the website - The interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the Company[105](index=105&type=chunk) - The interim report will only be sent to the Company's shareholders upon request and will be published on the website in due course[105](index=105&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，並明確表示概不會就因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 MAXNERVA TECHNOLOGY SERVICES LIMITED 雲智匯科技服務有限公司 （於百慕達註冊成立之有限公司） （股份代號：1037） 中期業績 截至二零二五年六月三十日止六個月 概要及摘要 1 • 截至二零二五年六月三十日止六個月，收入同比增長32%至人民幣342.1百萬 元，而淨虧損同比下降85%至人民幣2.4百萬元。 • 淨虧損主要由於我們的一項主要投資的公平值下降所致。倘剔除按公平值計 入損益之金融資產的公平值變動及出售投資收益，於報告期內經調整淨利潤 同比增長28%至人民幣7.5百萬元。 • 董事會並不建議就截至二零二五年六月三十日止六個月派付任何中期股息。 雲智匯科技服務有限公司董事會（「董事會」）謹此宣佈本公司及其子公司（「本集團」） 截至二零二五年六月三十日止六個月的未經審核合併業績，其已由本公司之審核委 員會（「審核委員會」）審閱。 管理層討論及分析 財務回顧 本集團 ...

[Announcement Overview](index=1&type=section&id=%E5%85%AC%E5%91%8A%E6%A6%82%E8%A7%88) [Company Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) KANZHUN LIMITED released its unaudited interim condensed consolidated results for the six months ended June 30, 2025, with the Company incorporated in the Cayman Islands and listed under **stock codes 2076 (HKEX) and BZ (NASDAQ)** - KANZHUN LIMITED released its unaudited interim condensed consolidated results For the six months ended June 30, 2025[2](index=2&type=chunk) - The Company was incorporated in the Cayman Islands, with **stock codes 2076 (HKEX) and BZ (NASDAQ)**[2](index=2&type=chunk) [Financial Performance Summary](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E8%A1%A8%E7%8E%B0%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the Company's revenue increased year-over-year by **11.2%**, operating profit significantly increased by **136.0%**, net profit increased by **85.6%**, and Adjusted Net Profit (Non-GAAP) increased by **36.4%** Financial Performance Summary For the six months ended June 30, 2025 | Metric | 2024 (RMB thousands) | 2025 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 3,620,496 | 4,025,710 | 11.2% | | Operating Profit | 462,202 | 1,090,986 | 136.0% | | Profit Before Tax | 771,642 | 1,396,333 | 81.0% | | Net Profit | 658,974 | 1,223,268 | 85.6% | | Adjusted Net Profit (Non-GAAP) | 1,249,394 | 1,704,757 | 36.4% | [Non-GAAP Financial Measures](index=2&type=section&id=%E9%9D%9E%E5%85%AC%E8%AA%8D%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) The Company uses Adjusted Net Profit (Non-GAAP) as a non-GAAP financial measure, defined as net profit excluding share-based compensation expenses, to provide a more comparable assessment of operating performance and additional useful information for investors - Adjusted Net Profit is defined as net profit excluding share-based compensation expenses, and **share-based compensation expenses are non-cash in nature**[5](index=5&type=chunk) - **this metric helps compare operating performance across different periods and provides investors with the same evaluation perspective as management**[5](index=5&type=chunk) Reconciliation of Adjusted Net Profit to Net Profit | Metric | 2024 (RMB thousands) | 2025 (RMB thousands) | | :--- | :--- | :--- | | Net Profit | 658,974 | 1,223,268 | | Add: Share-based Compensation Expenses | 590,420 | 481,489 | | Adjusted Net Profit (Non-GAAP) | 1,249,394 | 1,704,757 | [Business Review and Outlook](index=3&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%B1%95%E6%9C%9B) [Business Review for the Reporting Period](index=3&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E9%96%93%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the Company's Average Monthly Active Users (MAU) significantly increased by **19.8%** to **60.6 million**, successfully penetrating blue-collar users, lower-tier cities, and small and medium-sized enterprise (SME) clients; the Company continued to deepen AI technology application in products and operations, achieving an **'A' rating** in the MSCI ESG assessment - For the six months ended June 30, 2025, Average Monthly Active Users (MAU) reached **60.6 million**, increased year-over-year by **19.8%**[7](index=7&type=chunk) - The diversified user group penetration strategy yielded significant results, with increased proportions of blue-collar users, lower-tier cities, and small and medium-sized enterprise (SME) clients[7](index=7&type=chunk) - The Company deepened the integrated application of AI across technology, products, business, and operations, launching features like an AI interview training robot, and achieved an **'A' rating** in the MSCI ESG assessment[8](index=8&type=chunk) [Management Statements](index=4&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%81%B2%E6%98%8E) Founder and CEO Zhao Peng emphasized user growth, deepening AI application, and commitment to shareholder returns (dividend policy and share repurchase); CFO Zhang Yu noted the company achieved **high-quality growth in both revenue and profit margins**, and **enhanced market liquidity** through its Hong Kong share offering - CEO Zhao Peng stated the Company maintained an **industry-leading user growth momentum**, with **significant growth in enterprise user activity and paying client base**, and continued to deepen AI application[10](index=10&type=chunk) - CEO Zhao Peng emphasized the Company prioritizes shareholder returns, having approved an annual dividend policy (approximately **USD 80 million**) and a share repurchase program of up to **USD 250 million**[10](index=10&type=chunk) - CFO Zhang Yu noted the company achieved **high-quality growth in both revenue and profit margins**, and **enhanced market liquidity** through its Hong Kong share offering (net proceeds of **HKD 2.2 billion**)[10](index=10&type=chunk) [Platform and Services](index=4&type=section&id=%E5%B9%B3%E5%8F%B0%E8%88%87%E6%9C%8D%E5%8B%99) The Company's core platform is the **BOSS Zhipin mobile application**, which uses a **'direct hiring model'** to connect job seekers with enterprise clients, providing an **efficient and seamless recruitment experience**; monetization primarily comes from paid services for enterprise clients, while user acquisition and sales efficiency are enhanced through a **proprietary CRM system** and diversified marketing strategies - The Company's core platform is the **BOSS Zhipin mobile application**, which uses a **'direct hiring model'** to connect job seekers with enterprise clients, providing an **efficient and seamless recruitment experience**[10](index=10&type=chunk)[11](index=11&type=chunk) - **Monetization primarily comes from paid services for enterprise clients**, including direct hiring services and value-added features; job seeker services are free but offer paid value-added features[13](index=13&type=chunk)[14](index=14&type=chunk) - The Company utilizes a **proprietary CRM system** to empower its sales team and acquires user traffic through online third-party channels, word-of-mouth, and brand marketing activities[15](index=15&type=chunk) [Business Outlook](index=7&type=section&id=%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B) Looking ahead to the second half of 2025, the Company will maintain **robust user growth momentum**, expand market penetration, and continue to deepen the application of AI technology in its core business scenarios to provide an **intelligent, one-stop recruitment service experience** - Looking ahead to the second half of 2025, the Company will maintain **robust user growth momentum** and further penetrate more industries, regions, and client types[20](index=20&type=chunk) - The Company will continue to deepen the application and integration of AI technology in its core business scenarios, striving to provide **intelligent, one-stop recruitment service experiences** for a broader and more diverse user base[20](index=20&type=chunk) [Recent Developments and Shareholder Returns](index=6&type=section&id=%E8%BF%91%E6%9C%9F%E7%99%BC%E5%B1%95%E8%88%87%E8%82%A1%E6%9D%B1%E5%9B%9E%E5%A0%B1) [Share Offering](index=6&type=section&id=%E8%82%A1%E4%BB%BD%E7%99%BC%E5%94%AE) The Company completed a share offering in **July 2025**, totaling **34,500,000 shares**, with net proceeds of approximately **HKD 2.2 billion**, aimed at **enhancing financial flexibility, broadening the shareholder base, and increasing share liquidity** - The Company completed a share offering on **July 4, 2025**, totaling **34,500,000 shares**[16](index=16&type=chunk) - The net proceeds from the share offering were approximately **HKD 2.2 billion**, aimed at **enhancing financial flexibility, broadening the shareholder base, and increasing share liquidity**[16](index=16&type=chunk) [Annual Dividend Policy and Declaration](index=6&type=section&id=%E5%B9%B4%E5%BA%A6%E8%82%A1%E6%81%AF%E6%94%BF%E7%AD%96%E5%8F%8A%E5%AE%A3%E6%B4%BE) The Board has approved an annual dividend policy and declared an annual cash dividend of **USD 0.084 per ordinary share or USD 0.168 per ADS, totaling approximately USD 80 million**, expected to be paid in **October 2025** - **The Board has approved an annual dividend policy**, and will declare and distribute dividends annually[17](index=17&type=chunk) - **An annual cash dividend of USD 0.084 per ordinary share or USD 0.168 per ADS, totaling approximately USD 80 million**, has been declared[18](index=18&type=chunk) - The dividend payment dates are expected to be **October 16, 2025** (ordinary shares) and **October 23, 2025** (ADSs)[18](index=18&type=chunk) [Share Repurchase Program](index=7&type=section&id=%E8%82%A1%E4%BB%BD%E5%9B%9E%E8%B3%BC%E8%A8%88%E5%8A%83) The Board approved extending the existing share repurchase program by **12 months to August 28, 2026**, authorizing the repurchase of up to **USD 250 million** in company shares during this period - **The Board approved extending the share repurchase program by 12 months to August 28, 2026**[19](index=19&type=chunk) - **Authorized to repurchase up to USD 250 million in company shares (including ADSs)** during the extended period[19](index=19&type=chunk) [Financial Performance](index=8&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8E%B0) [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E8%A8%88%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Company's **total revenue reached RMB 4,025.7 million, operating profit was RMB 1,091.0 million, and net profit was RMB 1,223.3 million**, demonstrating **strong earnings growth** Unaudited Condensed Consolidated Statements of Comprehensive Income (For the six months ended June 30) | Metric | 2024 (RMB thousands) | 2025 (RMB thousands) | | :--- | :--- | :--- | | Total Revenue | 3,620,496 | 4,025,710 | | Total Operating Costs and Expenses | (3,179,390) | (2,945,464) | | Operating Profit | 462,202 | 1,090,986 | | Profit Before Tax | 771,642 | 1,396,333 | | Income Tax Expense | (112,668) | (173,065) | | Net Profit | 658,974 | 1,223,268 | [Revenue Analysis](index=9&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) **Total revenue increased year-over-year by 11.2% to RMB 4,025.7 million**, primarily driven by growth in paying enterprise clients; specifically, **online recruitment services revenue for enterprise clients increased by 11.2%**, and **other services revenue increased by 6.9%** - **Total revenue increased year-over-year by 11.2% to RMB 4,025.7 million**, primarily driven by growth in paying enterprise clients[24](index=24&type=chunk) - Revenue growth was primarily driven by growth in paying enterprise clients[24](index=24&type=chunk) Revenue Composition and Year-over-Year Change | Revenue Source | 2024 (RMB thousands) | 2025 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Online Recruitment Services for Enterprise Clients | 3,576,810 | 3,978,981 | 11.2% | | Other Services | 43,686 | 46,729 | 6.9% | | **Total Revenue** | **3,620,496** | **4,025,710** | **11.2%** | [Operating Costs and Expenses Analysis](index=9&type=section&id=%E7%87%9F%E6%A5%AD%E6%88%90%E6%9C%AC%E5%8F%8A%E8%B2%BB%E7%94%A8%E5%88%86%E6%9E%90) During the reporting period, the Company effectively controlled sales and marketing expenses and research and development expenses, which decreased by **19.0%** and **7.9%** respectively, while cost of revenue remained relatively stable, and general and administrative expenses slightly increased - Cost of revenue was **RMB 618.3 million**, remained relatively stable with **RMB 612.0 million** in the prior year period[25](index=25&type=chunk) - **Sales and marketing expenses decreased by 19.0% to RMB 911.1 million**, primarily due to decreased advertising and marketing expenses and employee-related expenses[26](index=26&type=chunk) - **Research and development expenses decreased by 7.9% to RMB 839.6 million**, primarily due to decreased employee-related expenses and cloud service fees[27](index=27&type=chunk) - **General and administrative expenses increased by 8.4% to RMB 576.5 million**, primarily due to increased employee-related expenses[28](index=28&type=chunk) [Operating Profit and Net Profit](index=10&type=section&id=%E7%B6%93%E7%87%9F%E5%88%A9%E6%BD%A4%E8%88%87%E6%B7%A8%E5%88%A9%E6%BD%A4) Due to revenue growth and expense control, the Company's **operating profit significantly increased year-over-year by 136.0% to RMB 1,091.0 million**, and **net profit increased year-over-year by 85.6% to RMB 1,223.3 million** - **Operating profit increased year-over-year by 136.0% to RMB 1,091.0 million** from **RMB 462.2 million** in the prior year period[29](index=29&type=chunk) - **Net profit increased year-over-year by 85.6% to RMB 1,223.3 million** from **RMB 659.0 million** in the prior year period[31](index=31&type=chunk) [Income Tax Expense](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) **Income tax expense increased year-over-year by 53.6% to RMB 173.1 million**, consistent with the company's **significant improvement in profitability** - **Income tax expense increased year-over-year by 53.6% to RMB 173.1 million** from **RMB 112.7 million** in the prior year period[30](index=30&type=chunk) [Earnings Per Share](index=15&type=section&id=%E6%AF%8F%E8%82%A1%E6%B7%A8%E5%88%A9%E6%BD%A4) For the six months ended June 30, 2025, basic net earnings per ordinary share attributable to ordinary shareholders was **RMB 1.41**, and diluted net earnings per ordinary share was **RMB 1.37**, both significantly increased from the prior year period Earnings Per Share (For the six months ended June 30) | Metric | 2024 (RMB) | 2025 (RMB) | | :--- | :--- | :--- | | Basic Net Earnings Per Share | 0.75 | 1.41 | | Diluted Net Earnings Per Share | 0.73 | 1.37 | [Financial Position and Liquidity](index=10&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%88%87%E6%B5%81%E5%8B%95%E6%80%A7) [Liquidity and Capital Resources](index=10&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) As of June 30, 2025, the Company had **ample liquidity**, with **total cash and cash equivalents, short-term time deposits, and short-term investments amounting to RMB 16.0 billion**, and **net cash flows from operating activities of RMB 2.1 billion** - **As of June 30, 2025, total cash and cash equivalents, short-term time deposits, and short-term investments amounted to RMB 16.0 billion**[32](index=32&type=chunk) - **For the six months ended June 30, 2025, net cash flows from operating activities were RMB 2.1 billion**[32](index=32&type=chunk) [Interest-bearing Bank and Other Borrowings](index=10&type=section&id=%E8%A8%88%E6%81%AF%E9%8A%80%E8%A1%8C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group had **no interest-bearing bank and other borrowings**, demonstrating its **healthy capital structure** - **As of June 30, 2025, the Group had no interest-bearing bank and other borrowings**[33](index=33&type=chunk) [Debt-to-Equity Ratio](index=11&type=section&id=%E5%82%B5%E6%AC%8A%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group had **no interest-bearing borrowings, resulting in a zero debt-to-equity ratio**, indicating **no external interest-bearing debt** - **As of June 30, 2025, the Group had no borrowings, resulting in a zero debt-to-equity ratio**[38](index=38&type=chunk) [Foreign Exchange Risk](index=11&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) **The vast majority of the Company's revenue and expenses are denominated in RMB**; it does not use derivative financial instruments to hedge foreign exchange risk for USD-denominated cash and investments but regularly monitors foreign exchange rates and considers hedging significant risks when necessary - **The vast majority of the Company's revenue and expenses are denominated in RMB**; it does not use derivative financial instruments to hedge foreign exchange risk for USD-denominated cash and investments[39](index=39&type=chunk) - The Company regularly monitors foreign exchange rates and considers hedging significant foreign exchange risks when necessary[39](index=39&type=chunk) [Capital Commitments](index=12&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E8%AB%BE) As of June 30, 2025, the Group's **capital commitments were approximately RMB 49.6 million** - **As of June 30, 2025, the Group's capital commitments were approximately RMB 49.6 million**[41](index=41&type=chunk) [Unaudited Condensed Consolidated Balance Sheets](index=16&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E8%A8%88%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, the Company's **total assets increased to RMB 21,183.9 million**, **total current assets were RMB 16,627.9 million**, **total liabilities remained stable**, and **total shareholders' equity increased to RMB 16,837.0 million** Unaudited Condensed Consolidated Balance Sheets (As of June 30) | Metric | Dec 31, 2024 (RMB thousands) | Jun 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Total Assets | 19,310,672 | 21,183,955 | | Total Current Assets | 15,100,383 | 16,627,877 | | Total Non-current Assets | 4,210,289 | 4,556,078 | | Total Liabilities | 4,347,852 | 4,346,992 | | Total Shareholders' Equity | 14,962,820 | 16,836,963 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=17&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E8%A8%88%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, **net cash flows from operating activities were RMB 2,055.0 million**, **net cash flows used in investing activities were RMB (1,503.3) million**, and **net cash flows from financing activities were RMB 58.3 million** Unaudited Condensed Consolidated Statements of Cash Flows (For the six months ended June 30) | Metric | 2024 (RMB thousands) | 2025 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 1,774,097 | 2,055,005 | | Net Cash Flows Used in Investing Activities | (595,771) | (1,503,279) | | Net Cash Flows (Used in) / From Financing Activities | (186,425) | 58,278 | | Net Increase in Cash and Cash Equivalents | 999,431 | 606,416 | | Cash and Cash Equivalents at End of Period | 3,472,390 | 3,159,506 | [Corporate Governance and Other Information](index=12&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E8%88%87%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Employees and Remuneration Policy](index=12&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 Company had a total of **4,743 employees**, with sales and marketing personnel accounting for the highest proportion (**50.3%**); the Company offers **competitive salaries, share-based awards, and various benefits to attract and retain talent** - **As of June 30, 2025, the Group had a total of 4,743 employees**[42](index=42&type=chunk) Employees by Function (As of June 30, 2025) | Function | Number of Employees | Percentage of Total | | :--- | :--- | :--- | | Sales and Marketing | 2,384 | 50.3% | | Research and Development | 1,192 | 25.1% | | Operations | 771 | 16.3% | | General and Administrative | 396 | 8.3% | | **Total** | **4,743** | **100.0%** | - **The Company offers competitive salaries, share-based awards, and various benefits to attract and retain talent**, and participates in various government statutory employee benefit plans[42](index=42&type=chunk) [Corporate Governance](index=12&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company is committed to **high standards of corporate governance** and **complies with the Corporate Governance Code of the Hong Kong Stock Exchange**; although **Mr. Zhao Peng serves as both Chairman and Chief Executive Officer**, the Board believes this arrangement contributes to **strategic planning and decision-making efficiency**; the **Audit Committee, composed of independent non-executive directors, has reviewed the interim financial statements** - The Company is committed to **high standards of corporate governance** and **complies with the Corporate Governance Code of the Hong Kong Stock Exchange**; although **Mr. Zhao Peng serves as both Chairman and Chief Executive Officer**, the Board believes this arrangement contributes to **ensures consistent leadership and efficient strategic planning**[44](index=44&type=chunk)[45](index=45&type=chunk) - **The Company has adopted a management securities trading policy, which directors and relevant employees confirm compliance with**[46](index=46&type=chunk)[47](index=47&type=chunk) - **The Audit Committee, comprising three independent non-executive directors with Ms. Dong Mengyuan as chairperson, has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025**[48](index=48&type=chunk) [Other Information](index=14&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) During the reporting period, the Company did not purchase, sell, or redeem any listed securities, was not involved in any material litigation or arbitration, and the Board does not recommend the distribution of an interim dividend; **no other material events occurred after the reporting period, except for disclosed subsequent events** - **During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities**[49](index=49&type=chunk) - **During the reporting period, the Company was not involved in any material litigation or arbitration**[50](index=50&type=chunk) - **The Board does not recommend the distribution of any interim dividend for the six months ended June 30, 2025**[51](index=51&type=chunk) - **no material events occurred after the reporting period, except for disclosed subsequent events**[52](index=52&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=18&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E8%A8%88%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [General Information](index=18&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) KANZHUN LIMITED was incorporated in the Cayman Islands and primarily provides online recruitment services in Mainland China through the 'BOSS Zhipin' platform - **The Company was incorporated on January 16, 2014, under the laws of the Cayman Islands**[56](index=56&type=chunk) - **The Group primarily provides online recruitment services in Mainland China through the 'BOSS Zhipin' platform**[56](index=56&type=chunk) [Basis of Presentation](index=18&type=section&id=%E5%91%88%E5%88%97%E5%9F%BA%E7%A4%8E) The unaudited condensed consolidated financial statements are prepared in accordance with **U.S. GAAP and the disclosure requirements for interim financial information under the Hong Kong Stock Exchange Listing Rules**, adopting the same accounting policies as the audited consolidated financial statements for the previous fiscal year - **The financial statements are prepared in accordance with U.S. GAAP and the disclosure requirements for interim financial information under the Hong Kong Stock Exchange Listing Rules**, adopting the same accounting policies as the audited consolidated financial statements for the previous fiscal year[57](index=57&type=chunk) - The principal accounting policies adopted are consistent with those used in the audited consolidated financial statements for the previous fiscal year[57](index=57&type=chunk) [Business Acquisition](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E6%94%B6%E8%B3%BC) In **February 2024**, the Group acquired approximately **77% equity interest** in W.D Technology Investment Group Limited for approximately **USD 52.7 million** (**RMB 374.3 million**); the company primarily engages in blue-collar recruitment services, and this acquisition resulted in **goodwill of RMB 839 thousand** - **On February 6, 2024**, the Group completed the acquisition of approximately **77% equity interest** in W.D Technology Investment Group Limited, a company primarily engaged in blue-collar recruitment services[58](index=58&type=chunk) - The consideration for this acquisition was approximately **USD 52.7 million** (approximately **RMB 374.3 million**)[58](index=58&type=chunk) - The acquisition resulted in **goodwill of RMB 839 thousand**, primarily from the **expected future business growth from the acquisition**[60](index=60&type=chunk) [Notes to Revenue](index=19&type=section&id=%E6%94%B6%E5%85%A5%E9%99%84%E8%A8%BB) The Company categorizes enterprise clients into KA, medium-sized, and small-sized clients, presenting revenue sources by this classification; For the six months ended June 30, 2025, **online recruitment services revenue for enterprise clients was RMB 3,979.0 million** - The Group defines KA clients as those contributing **RMB 50,000 or more annually**, medium-sized clients as those contributing **RMB 5,000 to RMB 50,000**, and small-sized clients as those contributing **RMB 5,000 or less**[61](index=61&type=chunk) Revenue by Client Type (For the six months ended June 30) | Revenue Source | 2024 (RMB thousands) | 2025 (RMB thousands) | | :--- | :--- | :--- | | Online Recruitment Services for Enterprise Clients | 3,576,810 | 3,978,981 | | － KA clients | 812,146 | 967,233 | | － Medium-sized clients | 1,245,598 | 1,312,300 | | － Small-sized clients | 1,519,066 | 1,699,448 | | Other | 43,686 | 46,729 | | **Total** | **3,620,496** | **4,025,710** | - For the six months ended June 30, 2025, revenue recognized over time was **RMB 3,179.2 million**, and revenue recognized at a point in time was **RMB 799.8 million**[62](index=62&type=chunk) [Notes to Income Tax](index=20&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%99%84%E8%A8%BB) The notes explain the tax policies in the Cayman Islands, Hong Kong, and Mainland China, including the **15% preferential tax rate** for High and New Technology Enterprises in China and the **200% super deduction policy** for R&D expenses - The Cayman Islands does not levy income or capital gains tax, and the Hong Kong profits tax rate is **16.5%**[63](index=63&type=chunk)[64](index=64&type=chunk) - High and New Technology Enterprises (HNTEs) in Mainland China enjoy a preferential tax rate of **15%**, and effective **January 1, 2023**, the super deduction for research and development expenses is **200%**[65](index=65&type=chunk) Composition of Income Tax Expense (For the six months ended June 30) | Item | 2024 (RMB thousands) | 2025 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax Expense | 114,690 | 173,672 | | Deferred Income Tax Benefit | (2,022) | (607) | | **Total** | **112,668** | **173,065** | [Notes to Earnings Per Share](index=21&type=section&id=%E6%AF%8F%E8%82%A1%E6%B7%A8%E5%88%A9%E6%BD%A4%E9%99%84%E8%A8%BB) Details the calculation process for basic and diluted net earnings per share for the six months ended June 30, 2025, including net profit attributable to ordinary shareholders and weighted average number of ordinary shares Earnings Per Share Calculation Details (For the six months ended June 30) | Metric | 2024 | 2025 | | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of KANZHUN LIMITED (RMB thousands) | 666,684 | 1,234,532 | | Weighted Average Number of Ordinary Shares Used in Calculating Basic Net Earnings Per Share | 884,833,645 | 876,959,135 | | Dilutive Effect of Share-based Awards | 30,845,133 | 24,277,910 | | Weighted Average Number of Ordinary Shares Used in Calculating Diluted Net Earnings Per Share | 915,678,778 | 901,237,045 | | Basic Net Earnings Per Share (RMB) | 0.75 | 1.41 | | Diluted Net Earnings Per Share (RMB) | 0.73 | 1.37 | [Notes to Investments](index=21&type=section&id=%E6%8A%95%E8%B3%87%E9%99%84%E8%A8%BB) As of June 30, 2025, the Company's **total short-term investments were RMB 7,383.2 million**, primarily comprising wealth management products and fixed-rate notes; **total long-term investments were RMB 1,879.2 million**, primarily fixed-rate notes and equity securities of unlisted companies Investment Portfolio (As of June 30) | Investment Type | Dec 31, 2024 (RMB thousands) | Jun 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | **Total Short-term Investments** | **6,639,389** | **7,383,188** | | － Wealth Management Products | 4,640,283 | 6,993,277 | | － Fixed-Rate Notes | 1,997,243 | 381,792 | | － Equity Securities of Listed Companies | 1,863 | 8,119 | | **Total Long-term Investments** | **1,914,530** | **1,879,156** | | － Fixed-Rate Notes | 1,607,361 | 1,643,227 | | － Equity Securities of Unlisted Companies | 206,391 | 235,929 | | － Wealth Management Products | 100,778 | – | [Notes to Accounts and Notes Receivable, Net](index=22&type=section&id=%E6%87%89%E6%94%B6%E8%B3%A6%E6%AC%BE%E5%8F%8A%E7%A5%A8%E6%93%9A%E6%B7%A8%E5%80%BC%E9%99%84%E8%A8%BB) As of June 30, 2025, **accounts and notes receivable, net, totaled RMB 32.1 million**, with **accounts receivable within 3 months accounting for the largest proportion** Aging Analysis of Accounts and Notes Receivable (As of June 30) | Aging | Dec 31, 2024 (RMB thousands) | Jun 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 32,477 | 18,562 | | 3 to 6 months | 4,890 | 3,856 | | 6 months to 1 year | 2,050 | 7,895 | | Over 1 year | 1,296 | 1,813 | | **Total** | **40,713** | **32,126** | [Notes to Prepayments and Other Current Assets](index=22&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E9%99%84%E8%A8%BB) As of June 30, 2025, **total prepayments and other current assets were RMB 561.4 million**, primarily including prepaid income tax and value-added tax, amounts due from third-party online payment platforms, and receivables from share-based award exercises Prepayments and Other Current Assets (As of June 30) | Item | Dec 31, 2024 (RMB thousands) | Jun 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Prepaid Income Tax and Value-Added Tax | 60,675 | 154,709 | | Amounts Due from Third-Party Online Payment Platforms | 49,814 | 151,009 | | Receivables from Share-based Award Exercises | 56,062 | 106,042 | | Deposits | 73,218 | 58,112 | | Prepaid Advertising and Service Fees | 44,799 | 22,919 | | Employee Loans and Advances | 14,429 | 13,864 | | Interest Receivable | 37,264 | 1,518 | | Other | 31,999 | 53,246 | | **Total** | **368,260** | **561,419** | [Notes to Accounts Payable](index=23&type=section&id=%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE%E9%99%84%E8%A8%BB) As of June 30, 2025, **total accounts payable was RMB 97.5 million**, primarily comprising payable for server hosting fees and advertising fees, with **accounts payable within 3 months accounting for the largest proportion** Composition of Accounts Payable (As of June 30) | Item | Dec 31, 2024 (RMB thousands) | Jun 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Payable for Server Hosting Fees | 39,391 | 39,705 | | Payable for Advertising Fees | 16,458 | 24,648 | | Payable for Property, Equipment and Software Purchases | 33,945 | 19,759 | | Other | 20,874 | 13,359 | | **Total** | **110,668** | **97,471** | Aging Analysis of Accounts Payable (As of June 30) | Aging | Dec 31, 2024 (RMB thousands) | Jun 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 91,950 | 80,486 | | 3 to 6 months | 2,827 | 5,294 | | 6 months to 1 year | 8,467 | 4,273 | | Over 1 year | 7,424 | 7,418 | | **Total** | **110,668** | **97,471** | [Notes to Other Payables and Accrued Liabilities](index=23&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%A0%E5%82%B5%E9%99%84%E8%A8%BB) As of June 30, 2025, **total other payables and accrued liabilities were RMB 708.8 million**, primarily including payable for salaries, welfare and bonuses, taxes payable, and customer advances Other Payables and Accrued Liabilities (As of June 30) | Item | Dec 31, 2024 (RMB thousands) | Jun 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Payable for Salaries, Welfare and Bonuses | 429,566 | 393,840 | | Taxes Payable | 115,192 | 143,140 | | Customer Advances | 90,161 | 99,499 | | Deposits | 51,402 | 44,007 | | Payable for Share Repurchases | 93,475 | – | | Other | 35,971 | 28,271 | | **Total** | **815,767** | **708,757** | [Notes to Dividends](index=24&type=section&id=%E8%82%A1%E6%81%AF%E9%99%84%E8%A8%BB) **For the six months ended June 30, 2024 and 2025, the Company did not declare any interim dividends** - **For the six months ended June 30, 2024 and 2025, the Company did not declare any interim dividends**[72](index=72&type=chunk) [Notes to Subsequent Events](index=24&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85%E9%99%84%E8%A8%BB) After the reporting period, the Company completed a share offering in **July 2025** with net proceeds of approximately **HKD 2.2 billion**; the Board approved an annual dividend policy and declared a dividend of approximately **USD 80 million** in **August 2025**, while also extending the share repurchase program to **August 28, 2026**, authorizing the repurchase of up to **USD 250 million** in shares - After the reporting period, the Company completed a share offering in **July 2025** with net proceeds of approximately **HKD 2.2 billion**[73](index=73&type=chunk) - On **August 20, 2025**, the Board approved an annual dividend policy and declared an annual cash dividend totaling approximately **USD 80 million**[73](index=73&type=chunk) - On **August 20, 2025**, the Board approved extending the share repurchase program by **12 months to August 28, 2026**, authorizing the repurchase of up to **USD 250 million** in shares[73](index=73&type=chunk)