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。 Kinetic Development Group Limited 力量發展集團有限公司 (於開曼群島註冊成立的有限公司) （股份代號：1277） 截至二零二五年六月三十日止六個月 中期業績公告 | 財務摘要 | | | | | --- | --- | --- | --- | | | 截至六月三十日止六個月 | | | | | 二零二五年 | 二零二四年 | 變動 | | | 人民幣百萬元 | 人民幣百萬元 | | | 收益 | 2,509.5 | 2,532.4 | -0.9% | | 收益－採煤分部 | 2,330.3 | 2,508.1 | -7.1% | | 毛利 | 1,176.2 | 1,554.7 | -24.3% | | 毛利率 | 46.9% | 61.4% | -14.5個百分點 | | 除稅前溢利－採煤分部 | 864.0 | 1,476.5 | -41.5% | | 除稅後溢利 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部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。 KANZHUN LIMITED 看準科技有限公司 （於開曼群島註冊成立以同股不同權控制的有限責任公司） （股份代號：2076） （納斯達克股份代碼：BZ） 內幕消息 截至2025年6月30日止第二季度的未經審計財務業績 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》（香港法例第571章）第XIVA部刊發。 看準科技有限公司（「本公司」）欣然公佈根據美國證券交易委員會（「美國證監會」） 的適用規則刊發的本公司、其附屬公司及合併聯屬實體截至2025年6月30日止三 個月的未經審計合併業績（「2025年第二季度財務業績」）。 創始人、董事長兼首席執行官 趙鵬先生 香港，2025年8月20日 於本公告日期，本公司董事會包括執行董事趙鵬先生、陳旭先生、張宇先生、張 濤先生及王燮華女士，非執行董事余海洋先生，以及獨立非執行董事孫永剛先 生、李延先生及劉虹瑜女士。 2025年第二 ...

Company Information [Board of Directors and Management](index=3&type=section&id=Board%20of%20Directors%20and%20Management) CanSino Biologics' board comprises executive, non-executive, and independent non-executive directors, with Dr. Xuefeng YU serving as Chairman, CEO, and General Manager, supported by established audit, remuneration, and nomination committees - Board members include Executive Directors Dr. Xuefeng YU (Chairman, CEO, and General Manager), Dr. Shou Bai CHAO (COO and Deputy General Manager), and Ms. Jing WANG (Chief Business Officer and Deputy General Manager)[5](index=5&type=chunk) - The Audit Committee consists of Mr. Yaoliang ZHANG (Chairman), Mr. Shuifa GUI, and Mr. Jianzhong LIU[5](index=5&type=chunk) [Company Contact and Legal Information](index=4&type=section&id=Company%20Contact%20and%20Legal%20Information) The company's headquarters and China registered office are in Tianjin, with its Hong Kong principal place of business in Causeway Bay, and Deloitte Touche Tohmatsu as its auditor - Headquarters and China registered office are located at 401–420, 4th Floor, Biomedical Park, South Street 185, West Area, Tianjin Economic-Technological Development Area, China[6](index=6&type=chunk) - Hong Kong principal place of business is located at Room 1901, 19th Floor, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong[6](index=6&type=chunk) - The auditor is Deloitte Touche Tohmatsu[6](index=6&type=chunk) Financial Summary [Operating Results and Financial Position](index=5&type=section&id=Operating%20Results%20and%20Financial%20Position) For the six months ended June 30, 2025, CanSino Biologics' revenue increased by 31.1% to 374.1 million RMB, operating loss significantly narrowed by 99.1% to 2.2 million RMB, and total assets and liabilities saw minor decreases H1 2025 Operating Results and Financial Position Summary | Indicator | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | Change (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Operating Results** | | | | | | Revenue | 374,088 | 285,420 | 88,668 | 31.1 | | Operating Loss | (2,208) | (250,466) | 248,258 | (99.1) | | Loss Before Income Tax | (19,303) | (229,196) | 209,893 | (91.6) | | Total Comprehensive Expenses for the Period | (13,527) | (229,666) | 216,139 | (94.1) | | Loss Per Share (RMB) | (0.05) | (0.91) | 0.86 | (94.0) | | **Financial Position (as of June 30)** | | | | | | Non-current Assets | 3,370,189 | 3,675,641 | (305,452) | (8.3) | | Current Assets | 4,334,839 | 4,282,491 | 52,348 | 1.2 | | Total Assets | 7,705,028 | 7,958,132 | (253,104) | (3.2) | | Total Equity | 4,903,405 | 4,909,872 | (6,467) | (0.1) | | Non-current Liabilities | 1,042,716 | 1,276,218 | (233,502) | (18.3) | | Current Liabilities | 1,758,907 | 1,772,042 | (13,135) | (0.7) | | Total Liabilities | 2,801,623 | 3,048,260 | (246,637) | (8.1) | | Total Equity and Liabilities | 7,705,028 | 7,958,132 | (253,104) | (3.2) | Management Discussion and Analysis [Overview](index=6&type=section&id=Overview) CanSino Biologics is dedicated to developing, manufacturing, and commercializing high-quality, innovative, and affordable vaccines, with a product pipeline spanning global innovative, China-first, and preclinical candidates across over ten disease areas - CanSino Biologics' mission is to research, develop, manufacture, and commercialize high-quality, innovative, and affordable vaccines[10](index=10&type=chunk) - The product pipeline is categorized into three types: global innovative vaccines (e.g., Convidecia®, Ad5-EBOV), China-first vaccines (e.g., Menhycia®, Menactra®, Youpeixin®), and preclinical pipeline vaccines (e.g., CS-2606 mRNA multivalent influenza vaccine)[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) [Business Review](index=7&type=section&id=Business%20Review) CanSino Biologics achieved significant progress in vaccine R&D and commercialization, with strong sales growth for commercial products like Menhycia®, approval for Youpeixin®, and advancement of multiple pipeline vaccines and mRNA technology [Research and Development](index=7&type=section&id=Research%20and%20Development) CanSino Biologics' R&D focuses on market expansion for commercial products and clinical advancement of pipeline vaccines, including Menhycia®'s market penetration and international registration, Youpeixin®'s approval, and progress in various clinical trials and mRNA platform development [Our Commercialized Products](index=7&type=section&id=Our%20Commercialized%20Products) CanSino Biologics' commercialized products include Menhycia®, Menactra®, Youpeixin®, Convidecia® series, and Ad5-EBOV, with Menhycia® showing significant sales growth and international expansion, and Youpeixin® recently approved - Menhycia® is China's first and only MCV4 to receive NDA approval, with its applicable age group expanded to children aged 3 months to 6 years (83 months), and clinical trials initiated for adults aged 7 to 59 years[14](index=14&type=chunk)[16](index=16&type=chunk) - Menhycia® generated sales revenue of approximately **363.7 million RMB** during the reporting period, a **38.4% increase** year-on-year[15](index=15&type=chunk) - Menhycia® has obtained a registration certificate and Halal certification from the Indonesian Food and Drug Supervisory Agency, which is beneficial for enhancing its overseas brand awareness[16](index=16&type=chunk) - Youpeixin® received NDA approval from the National Medical Products Administration in June 2025, becoming the first approved product in the company's pneumonia product portfolio[19](index=19&type=chunk) - Convidecia® Inhalable was included in emergency use in China as a booster vaccine since September 2022, and the XBB.1.5 variant vaccine was included in emergency use in China since December 2023[22](index=22&type=chunk) - Ad5-EBOV was approved in China in October 2017 as China's first Ebola virus vaccine, but is not expected to make significant commercial contributions in the future[23](index=23&type=chunk) [Pipeline Vaccines in Clinical Trials](index=9&type=section&id=Pipeline%20Vaccines%20in%20Clinical%20Trials) CanSino Biologics' pipeline vaccines show significant progress, with NDA submissions for infant DTcP and tetanus vaccines, initiation of Phase II/III trials for adolescent/adult Tdcp, and advancement of recombinant polio, PBPV, recombinant zoster, and inhaled TB booster vaccines in various clinical stages - The NDA for infant DTcP has been accepted by the National Medical Products Administration and was granted priority review in February 2025[25](index=25&type=chunk) - The NDA for the tetanus vaccine has been accepted by the National Medical Products Administration, with approval expected in the first half of 2026, and an exclusive commercialization agreement for Greater China reached with Grand Pharma Life Sciences[27](index=27&type=chunk) - Phase II/III clinical trials for adolescent and adult Tdcp officially commenced in December 2024, with all subjects enrolled[29](index=29&type=chunk)[30](index=30&type=chunk) - Recombinant polio vaccine initiated Phase I clinical trials in Australia in January 2024, Phase I/II clinical trials in Indonesia in December 2024, and received clinical trial approval from the National Medical Products Administration in July 2025[32](index=32&type=chunk)[33](index=33&type=chunk) - Phase I clinical trials for PBPV yielded positive preliminary results, demonstrating good safety and broad-spectrum protection potential in adult and elderly populations[35](index=35&type=chunk) - Recombinant zoster vaccine initiated Phase I clinical trials in Canada in November 2023, utilizing both intramuscular injection and inhaled administration[37](index=37&type=chunk) - Inhaled tuberculosis booster vaccine received Phase I clinical trial approval from the Indonesian Food and Drug Supervisory Agency in May 2025[41](index=41&type=chunk) - DTcP–Hib–MCV4 combination vaccine received clinical trial approval from the National Medical Products Administration in February 2025, with Phase I clinical trials expected to commence before the end of 2025[42](index=42&type=chunk) [Preclinical Programs with Proof-of-Concept](index=12&type=section&id=Preclinical%20Programs%20with%20Proof-of-Concept) CanSino Biologics maintains a diverse preclinical pipeline of preventive and combination vaccines targeting influenza, meningitis, and pneumonia, with updates on significant advancements to be provided as appropriate - The company has various pipeline vaccines in preclinical programs, including preventive vaccines targeting influenza, meningitis, pneumonia, and other combination vaccines[42](index=42&type=chunk) [mRNA Platform](index=13&type=section&id=mRNA%20Platform) CanSino Biologics has established an in-house mRNA technology platform with proprietary sequence optimization software and a completed Phase I manufacturing facility, actively pursuing international collaborations and developing advanced LNP delivery systems - The Group has established an mRNA technology platform with proprietary sequence optimization software and completed the Phase I construction of its mRNA vaccine manufacturing facility[43](index=43&type=chunk) - In July 2024, the Group signed a cooperation agreement with the National Institute of Biotechnology, Malaysia, focusing on the development, manufacturing, technology transfer, and talent exchange for innovative products such as mRNA multivalent influenza vaccines[43](index=43&type=chunk) - In June 2025, the Group successfully developed a novel ionizable sterol lipid (ISL)-based three-component lipid nanoparticle (ISL-3C-LNP) delivery system, demonstrating significant improvements in safety and enhanced cellular immune responses[44](index=44&type=chunk) [The Group's Manufacturing Facilities](index=13&type=section&id=The%20Group's%20Manufacturing%20Facilities) CanSino Biologics operates commercial-scale manufacturing facilities in Tianjin for key products and has established an mRNA technology platform in Shanghai, with ongoing development of the CanSino Innovative Vaccine Industrial Park to enhance overall capabilities - The Group owns and operates a commercial-scale manufacturing facility in Tianjin for producing Menactra®, Menhycia®, and Youpeixin® products[45](index=45&type=chunk) - The Group has established an mRNA technology platform in Shanghai, which will undertake key technological research and large-scale production of mRNA vaccines[45](index=45&type=chunk) - The construction of the CanSino Innovative Vaccine Industrial Park project has commenced, aiming to enhance R&D, manufacturing, inspection, and warehousing capabilities to support long-term development strategies[45](index=45&type=chunk) [Commercialization](index=13&type=section&id=Commercialization) CanSino Biologics has built an efficient commercialization engine, leveraging precise marketing and academic promotion to increase Menhycia®'s market share, capitalize on product synergies for Youpeixin®, and expand internationally through local distributor networks - The company has built a well-functioning commercialization engine, combining the systematic management methods of multinational corporations with the decision-making flexibility and execution efficiency of biotechnology companies[46](index=46&type=chunk) - Menhycia® holds a unique competitive position in the market, with its market share steadily increasing; Youpeixin® is positioned as a high-end self-paid vaccine, overlapping with Menhycia®'s target consumer group, thus offering marketing synergies[48](index=48&type=chunk) - Through various academic and marketing promotion activities, the company introduces product features and the latest academic developments, assisting local CDC doctors in the rational use of products and establishing a positive brand image[49](index=49&type=chunk) [Future and Prospects](index=14&type=section&id=Future%20and%20Prospects) CanSino Biologics plans to enhance R&D platform management, ensure comprehensive quality control, intensify marketing and academic promotion, build a robust commercialization team, and expand international market presence through internal R&D and strategic partnerships - The company will actively carry out marketing activities, strengthen professional academic promotion, and enhance public understanding of vaccines and the necessity of vaccination[50](index=50&type=chunk) - It will continue to deepen R&D platform management, ensure comprehensive product quality control, and enhance long-term competitiveness through internal R&D and medical/clinical teams[50](index=50&type=chunk) - The company will actively seek global cooperation, consider acquiring potential assets, and continuously expand industrialization and commercialization coverage in Southeast Asia, the Middle East, and Latin America to accelerate its international market competitiveness[51](index=51&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) CanSino Biologics' H1 2025 revenue grew 31.1% driven by meningococcal vaccines, with sales costs decreasing, gross profit increasing, and operating loss significantly narrowing due to improved efficiency and cost control across various expense categories [Revenue](index=15&type=section&id=Revenue) For the six months ended June 30, 2025, CanSino Biologics' revenue reached 374.1 million RMB, a 31.1% year-on-year increase, primarily driven by strong sales of Menhycia® as China's first MCV4 vaccine, with revenue mainly from the China market - For the six months ended June 30, 2025, the Group's revenue was approximately **374.1 million RMB**, an increase of approximately **88.7 million RMB (approximately 31.1%)** compared to the same period last year[52](index=52&type=chunk) - Revenue growth was primarily driven by a significant increase in sales of Menhycia® as the first MCV4 vaccine product in the Chinese market[52](index=52&type=chunk) Revenue Breakdown by Vaccine Product Type | Vaccine Product Type | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Meningococcal Vaccine Products | 363,675 | 262,720 | | COVID-19 Vaccine Products | 10,413 | 92 | | CDMO | – | 22,608 | | Total | 374,088 | 285,420 | Revenue Breakdown by Geographical Market | Market Region | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | China | 374,088 | 262,720 | | Overseas | – | 22,700 | | Total | 374,088 | 285,420 | [Cost of Sales](index=16&type=section&id=Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales decreased by 21.1% to 77.5 million RMB, primarily due to the elimination of excess capacity costs, which offset increased costs from higher meningococcal vaccine sales - Cost of sales was approximately **77.5 million RMB**, a decrease of approximately **20.8 million RMB (approximately 21.1%)** compared to the same period last year[55](index=55&type=chunk) - The main reason was the decrease in excess capacity costs from approximately **22.9 million RMB** in H1 2024 to zero in H1 2025[55](index=55&type=chunk) Cost of Sales Components | Cost of Sales Component | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Cost of Vaccine Product Sales | 65,768 | 49,066 | | CDMO Costs | – | 12,229 | | Impairment Loss on Inventories and Right of Return | 11,740 | 14,239 | | Impairment Loss on Prepayments | – | (153) | | Costs Incurred Due to Low Production Capacity Utilization | – | 22,888 | | Total | 77,508 | 98,269 | [Gross Profit](index=16&type=section&id=Gross%20Profit) For the six months ended June 30, 2025, gross profit increased by 109.4 million RMB to 296.6 million RMB, with the gross margin for vaccine products rising to 79.3% due to a higher proportion of high-margin meningococcal vaccine sales, reduced excess capacity costs, and efficiency measures - Gross profit was approximately **296.6 million RMB**, an increase of approximately **109.4 million RMB** compared to the same period last year[57](index=57&type=chunk) - Gross margin for vaccine product sales increased from approximately **67.3% to approximately 79.3%**[57](index=57&type=chunk) - The increase in gross margin was primarily due to a higher proportion of high-margin meningococcal vaccine product sales, a significant reduction in excess capacity costs, and continuous implementation of cost-saving and efficiency-enhancing measures[57](index=57&type=chunk) Gross Profit and Gross Margin Details | Product Type | 2025 Gross Profit (thousand RMB) | 2025 Gross Margin (%) | 2024 Gross Profit (thousand RMB) | 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Vaccine Products | 296,580 | 79.3 | 176,772 | 67.3 | | CDMO | – | – | 10,379 | 45.9 | | Total | 296,580 | 79.3 | 187,151 | 65.6 | [Other Income](index=17&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income increased by 74.4% to 94.4 million RMB, primarily due to increased government grants and international funding support driven by R&D pipeline progress and international collaborations - Other income increased by **74.4%** from approximately **54.1 million RMB** to approximately **94.4 million RMB**[59](index=59&type=chunk) - The increase was primarily due to the progress of the Group's R&D pipeline and the initiation of international collaborations, resulting in more government grants and international funding support, leading to an increase in other income of approximately **48.9 million RMB**[59](index=59&type=chunk) [Selling Expenses](index=17&type=section&id=Selling%20Expenses) For the six months ended June 30, 2025, selling expenses increased by 39.0% to 156.3 million RMB, primarily due to increased marketing expenditures to drive the commercialization of meningococcal vaccine products - Selling expenses increased by **39.0%** from approximately **112.5 million RMB** to approximately **156.3 million RMB**[60](index=60&type=chunk) - This was primarily due to increased marketing expenditures to drive the commercialization of meningococcal vaccine products during the reporting period[60](index=60&type=chunk) Selling Expenses Components | Selling Expense Component | 2025 (thousand RMB) | 2025 Share (%) | 2024 (thousand RMB) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Promotion and Marketing Expenses | 83,334 | 53.3 | 54,517 | 48.5 | | Employee Benefit Expenses | 63,461 | 40.6 | 45,593 | 40.5 | | Travel and Transportation Expenses | 2,816 | 1.8 | 3,804 | 3.4 | | Others | 6,732 | 4.3 | 8,564 | 7.6 | | Total | 156,343 | 100.0 | 112,478 | 100.0 | [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses decreased by 11.4% to 77.8 million RMB, primarily reflecting the company's ongoing efforts in cost control and efficiency improvement - Administrative expenses decreased by **11.4%** from approximately **87.8 million RMB** to approximately **77.8 million RMB**[62](index=62&type=chunk) - The decrease was due to the company's continuous efforts in cost control and efficiency improvement[62](index=62&type=chunk) Administrative Expenses Components | Administrative Expense Component | 2025 (thousand RMB) | 2025 Share (%) | 2024 (thousand RMB) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Employee Benefit Expenses | 35,057 | 45.1 | 43,258 | 49.3 | | Depreciation and Amortization | 12,645 | 16.3 | 19,832 | 22.6 | | Office and Energy Expenses | 7,888 | 10.1 | 8,383 | 9.6 | | Professional Service Fees | 11,353 | 14.6 | 7,987 | 9.1 | | Taxes and Surcharges | 5,427 | 7.0 | 4,268 | 4.9 | | Others | 5,387 | 6.9 | 4,047 | 4.5 | | Total | 77,757 | 100.0 | 87,775 | 100.0 | [Research and Development Expenses](index=18&type=section&id=Research%20and%20Development%20Expenses) For the six months ended June 30, 2025, R&D expenses decreased by 20.5% to 147.8 million RMB, primarily due to the Group's focus on integrating R&D resources, leveraging synergies, and enhancing efficiency to concentrate on high-potential projects - R&D expenses decreased by **20.5%** from approximately **185.9 million RMB** to approximately **147.8 million RMB**[65](index=65&type=chunk) - This was primarily due to the Group's strong emphasis on integrating R&D resources and potential synergies across different pipelines, enhancing R&D efficiency, reducing costs, and focusing R&D resources on high-potential projects[65](index=65&type=chunk) R&D Expenses Components | R&D Expense Component | 2025 (thousand RMB) | 2025 Share (%) | 2024 (thousand RMB) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Employee Benefit Expenses | 62,095 | 42.0 | 75,422 | 40.6 | | Depreciation and Amortization | 36,040 | 24.4 | 40,856 | 22.0 | | Raw Materials and Consumables | 16,997 | 11.5 | 23,290 | 12.5 | | Clinical Trial and Testing Fees | 16,972 | 11.5 | 29,706 | 16.0 | | Others | 15,690 | 10.6 | 16,628 | 8.9 | | Total | 147,794 | 100.0 | 185,902 | 100.0 | [Other Gains (Losses), Net](index=18&type=section&id=Other%20Gains%20(Losses),%20Net) For the six months ended June 30, 2025, other gains, net, turned from a loss of 75.3 million RMB to a gain of 2.0 million RMB, primarily because the prior year's loss from losing control over Shanghai Pharma CanSino no longer occurred, and equity investments in unlisted companies turned profitable - Other gains and losses, net, turned from a loss of **75.3 million RMB** in H1 2024 to a gain of **2.0 million RMB** in H1 2025[67](index=67&type=chunk) - The primary reason for the change was the absence of the other net loss of **70.5 million RMB** in the prior year due to losing control over Shanghai Pharma CanSino[67](index=67&type=chunk) - Equity investments in unlisted companies turned from a loss of **4.7 million RMB** to a gain of **0.6 million RMB**[67](index=67&type=chunk) [Finance (Expenses or Losses) Income or Gains – Net](index=18&type=section&id=Finance%20(Expenses%20or%20Losses)%20Income%20or%20Gains%20%E2%80%93%20Net) For the six months ended June 30, 2025, net finance costs were 17.1 million RMB, a decrease of 38.4 million RMB from the prior year's net finance income of 21.3 million RMB, mainly due to foreign exchange losses, reduced interest income, and lower interest expenses from decreased bank borrowings - Net finance costs were approximately **17.1 million RMB**, a decrease of approximately **38.4 million RMB** compared to the prior year's net finance income of **21.3 million RMB**[68](index=68&type=chunk) - Foreign exchange gains turned from a gain of **15.3 million RMB** to a loss of **9.0 million RMB**[68](index=68&type=chunk) - Interest income decreased by approximately **21.5 million RMB**, as the Group strategically reduced its holdings of time deposits to reallocate capital to wealth management tools with higher return potential[68](index=68&type=chunk) - Increased sales and collections of meningococcal vaccine products provided sufficient operating capital, allowing the Group to reduce the scale of bank borrowings, leading to a decrease in interest expenses of **6.2 million RMB**[68](index=68&type=chunk) [Income Tax Credit (Expense)](index=18&type=section&id=Income%20Tax%20Credit%20(Expense)) For the six months ended June 30, 2025, income tax credit was 5.8 million RMB, compared to an income tax expense of 1.0 million RMB in the prior year, primarily due to an increase in deferred tax assets during the reporting period - Income tax credit was approximately **5.8 million RMB** (H1 2024: income tax expense of **1.0 million RMB**)[69](index=69&type=chunk) - This was primarily due to an increase in deferred tax assets during the reporting period[69](index=69&type=chunk) [Intangible Assets](index=19&type=section&id=Intangible%20Assets) The Group's intangible assets increased from 180.1 million RMB as of December 31, 2024, to 210.7 million RMB as of June 30, 2025, primarily due to the capitalization of development costs for several pipeline vaccine products in Phase III and beyond - Intangible assets increased from approximately **180.1 million RMB** as of December 31, 2024, to approximately **210.7 million RMB** as of June 30, 2025[70](index=70&type=chunk) - This was primarily due to the capitalization of development costs for several pipeline vaccine products in Phase III and beyond, upon meeting capitalization criteria[70](index=70&type=chunk) [Inventories](index=19&type=section&id=Inventories) The Group's inventories increased from 280.5 million RMB as of December 31, 2024, to 323.2 million RMB as of June 30, 2025, primarily to meet increased sales demand for meningococcal vaccines, while inventory write-downs decreased due to improved inventory planning - Inventories increased from approximately **280.5 million RMB** as of December 31, 2024, to approximately **323.2 million RMB** as of June 30, 2025[71](index=71&type=chunk) - This was primarily due to strengthened inventory production and sales coordination management, increasing finished goods inventory to meet continuously growing anticipated sales demand for meningococcal vaccines and ensure timely delivery[71](index=71&type=chunk) - Inventory write-down balance decreased from **439.7 million RMB** as of December 31, 2024, to **407.2 million RMB** as of June 30, 2025, achieving optimized inventory structure[71](index=71&type=chunk) Inventory Details | Inventory Category | June 30, 2025 Total (thousand RMB) | June 30, 2025 Write-down (thousand RMB) | June 30, 2025 Carrying Value (thousand RMB) | December 31, 2024 Total (thousand RMB) | December 31, 2024 Write-down (thousand RMB) | December 31, 2024 Carrying Value (thousand RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Raw Materials and Consumables | 414,037 | 360,802 | 53,235 | 432,483 | 375,814 | 56,669 | | Work in Progress | 123,733 | 15,954 | 107,779 | 126,505 | 16,650 | 109,855 | | Finished Goods | 187,253 | 30,425 | 156,828 | 161,154 | 47,196 | 113,958 | | Goods in Transit | 5,382 | - | 5,382 | 40 | - | 40 | | Total | 730,405 | 407,181 | 323,224 | 720,182 | 439,660 | 280,522 | [Trade Receivables](index=19&type=section&id=Trade%20Receivables) The Group's trade receivables decreased from 737.6 million RMB as of December 31, 2024, to 660.3 million RMB as of June 30, 2025, primarily due to a significant increase in revenue and collections from meningococcal vaccine sales, providing ample working capital - Trade receivables decreased from approximately **737.6 million RMB** as of December 31, 2024, to approximately **660.3 million RMB** as of June 30, 2025[73](index=73&type=chunk) - This was primarily due to a significant increase in revenue and collections from meningococcal vaccine products, which provided ample working capital for the Group[73](index=73&type=chunk) Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Within 180 days | 336,644 | 473,585 | | 180 days to 365 days | 226,035 | 91,874 | | 1 to 2 years | 65,379 | 116,687 | | Over 2 years | 76,496 | 87,347 | | Gross Amount | 704,554 | 769,493 | | Less: Expected Credit Losses | (44,228) | (31,871) | | Total | 660,326 | 737,622 | [Other Receivables and Prepayments](index=20&type=section&id=Other%20Receivables%20and%20Prepayments) The Group's other receivables and prepayments decreased from 113.7 million RMB as of December 31, 2024, to 91.0 million RMB as of June 30, 2025, mainly due to reduced prepayments to suppliers for intangible assets, property, plant, and equipment, and for raw materials and services - Other receivables and prepayments decreased from approximately **113.7 million RMB** as of December 31, 2024, to approximately **91.0 million RMB** as of June 30, 2025[76](index=76&type=chunk) - This was primarily due to a decrease of approximately **14.8 million RMB** in prepayments to suppliers for intangible assets and property, plant, and equipment, and a decrease of approximately **6.2 million RMB** in prepayments to suppliers for raw materials and services[76](index=76&type=chunk) Other Receivables and Prepayments Components | Component | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Amounts Due from Shanghai Pharma CanSino | 71,984 | 71,984 | | Prepayments to Suppliers for Raw Materials and Services | 37,841 | 43,999 | | Input VAT to be Deducted | 25,623 | 30,212 | | Prepayments to Suppliers for Intangible Assets and Property, Plant and Equipment | 12,922 | 27,675 | | Others | 16,719 | 13,917 | | Gross Amount | 165,089 | 187,787 | | Less: Expected Credit Losses | (74,122) | (74,122) | | Net Amount | 90,967 | 113,665 | | Less: Non-current Portion | (31,004) | (57,986) | | Current Portion | 59,963 | 55,679 | [Trade Payables](index=20&type=section&id=Trade%20Payables) The Group's trade payables decreased from 62.5 million RMB as of December 31, 2024, to 46.2 million RMB as of June 30, 2025, broadly consistent with reduced purchasing volumes, with no significant overdue trade payables during the reporting period - Trade payables decreased from approximately **62.5 million RMB** as of December 31, 2024, to approximately **46.2 million RMB** as of June 30, 2025, broadly consistent with reduced purchasing volumes[77](index=77&type=chunk) - As of June 30, 2025, there were no significant overdue trade payables[77](index=77&type=chunk) Trade Payables Ageing Analysis | Ageing | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Within 1 year | 25,032 | 25,530 | | 1 to 2 years | 3,285 | 3,456 | | 2 to 3 years | 1,682 | 33,488 | | Over 3 years | 16,238 | – | | Total | 46,237 | 62,474 | [Other Payables and Accruals](index=21&type=section&id=Other%20Payables%20and%20Accruals) The Group's other payables and accruals decreased by 14.6% from 632.3 million RMB as of December 31, 2024, to 540.0 million RMB as of June 30, 2025, primarily due to reduced payments for property, plant, and equipment and lower accrued salaries and benefits after 2024 bonus payments - Other payables and accruals decreased by **14.6%** from approximately **632.3 million RMB** as of December 31, 2024, to approximately **540.0 million RMB** as of June 30, 2025[78](index=78&type=chunk) - This was primarily due to reduced payments for property, plant, and equipment and decreased acquisition of new property, plant, and equipment due to improved capital expenditure management and control[78](index=78&type=chunk) - Payment of 2024 bonuses led to a decrease in the balance of accrued salaries and benefits[78](index=78&type=chunk) Other Payables and Accruals Components | Component | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Marketing Service Fees | 142,308 | 155,896 | | Other Amounts Payable to Property, Plant and Equipment Suppliers | 125,706 | 159,994 | | Accrued Salaries and Benefits | 94,113 | 119,110 | | Clinical Trial and Testing Fees | 78,841 | 76,176 | | Deposits from Suppliers | 13,104 | 13,934 | | Accrued Taxes Other Than Corporate Income Tax | 9,201 | 19,411 | | Other Service Fees | 9,287 | 14,255 | | Consulting Fees | 7,720 | 11,763 | | Operating and Maintenance Fees | 2,703 | 3,307 | | Consideration Received for Employees' Subscription of Restricted A Shares under 2023 Employee Shareholding Scheme | – | 6,503 | | Others | 57,028 | 51,933 | | Total | 540,011 | 632,282 | [Refund Liabilities](index=21&type=section&id=Refund%20Liabilities) The Group's refund liabilities decreased from 75.1 million RMB as of December 31, 2024, to 40.5 million RMB as of June 30, 2025, primarily due to actual returns offsetting estimated returns - Refund liabilities decreased from approximately **75.1 million RMB** as of December 31, 2024, to approximately **40.5 million RMB** as of June 30, 2025[79](index=79&type=chunk) - The decrease was primarily due to actual returns offsetting estimated returns[79](index=79&type=chunk) [Financial Resources, Liquidity and Capital Structure](index=22&type=section&id=Financial%20Resources,%20Liquidity%20and%20Capital%20Structure) CanSino Biologics experienced a decrease in cash and cash equivalents but maintained stable liquid assets, while actively optimizing its debt structure and asset management, with future plans for a new industrial park and ongoing management of contingent liabilities and foreign exchange risks - Bank balances and cash decreased by **27.5%** from approximately **1,556.5 million RMB** as of December 31, 2024, to approximately **1,128.4 million RMB** as of June 30, 2025, primarily due to payments for investing activities and repayment of borrowings[81](index=81&type=chunk) - As of June 30, 2025, current assets were approximately **4,334.8 million RMB** (December 31, 2024: **4,282.5 million RMB**), and current liabilities were approximately **1,758.9 million RMB** (December 31, 2024: **1,772.0 million RMB**)[81](index=81&type=chunk) - Driven by improved operating efficiency and increased sales of the core product MCV4, the Group actively optimized its debt financing structure and reduced total borrowings[82](index=82&type=chunk) [Investments in Financial Assets](index=22&type=section&id=Investments%20in%20Financial%20Assets) The Group adopts a prudent asset management policy, investing in principal-protected structured deposits and wealth management products with returns higher than bank deposit rates, holding approximately 505.8 million RMB in structured deposits and 833.8 million RMB in wealth management products as of June 30, 2025 - The Group typically selects principal-protected structured deposits and wealth management products with returns higher than prevailing bank deposit rates and performance benchmarks, aiming to maximize capital gains[84](index=84&type=chunk) - As of June 30, 2025, the Group held approximately **505.8 million RMB** in structured deposits and approximately **833.8 million RMB** in wealth management products[84](index=84&type=chunk) [Material Investments, Acquisitions and Disposals](index=22&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals) During the reporting period, CanSino Biologics did not undertake any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the company did not have any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[85](index=85&type=chunk) [Future Plans for Material Investments or Capital Assets](index=23&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group plans to invest approximately 2,244.7 million RMB in the CanSino Innovative Vaccine Industrial Park project to enhance manufacturing capabilities, with 886.9 million RMB already invested, and no other specific material capital expenditure plans - As of June 30, 2025, approximately **2,244.7 million RMB** is planned to be invested in the CanSino Innovative Vaccine Industrial Park project to strengthen manufacturing capabilities, with approximately **886.9 million RMB** already invested[86](index=86&type=chunk) - Other than those disclosed, as of the date of this report, the Group has no specific future plans for material capital expenditures, investments, or capital assets[86](index=86&type=chunk) [Contingent Liabilities](index=23&type=section&id=Contingent%20Liabilities) The company received a lawsuit notice from a Brazilian court in March 2024, claiming approximately 219 million RMB in damages, but management believes the company has a strong defense and the claim is unlikely to be upheld, thus no provision has been made - The company received a lawsuit notice from a Brazilian court in March 2024, demanding compensation of approximately **219 million RMB** for related losses, expenses, and moral damages incurred after the termination of the 2021 authorization to negotiate with the Brazilian government for the registration and commercialization of the company's COVID-19 vaccine in Brazil[87](index=87&type=chunk) - Based on current legal advice, the company has a strong defense, and Belcher's claim is unlikely to be supported by the Brazilian court; therefore, the company's management believes it is unlikely to be required to pay any economic compensation for Belcher's claim and has made no provision for this lawsuit[87](index=87&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments were approximately 37.2 million RMB, a 71.2% decrease from 129.2 million RMB as of December 31, 2024, primarily due to enhanced fixed asset management, optimized asset allocation, and improved utilization efficiency of existing assets - Capital commitments were approximately **37.2 million RMB**, a **71.2% decrease** from approximately **129.2 million RMB** as of December 31, 2024[89](index=89&type=chunk) - This was primarily due to strengthened fixed asset management, optimized asset allocation in conjunction with production plans, and improved utilization efficiency of existing assets, effectively reducing future capital expenditures related to fixed asset investments[89](index=89&type=chunk) [Pledge of Assets](index=23&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, certain of the Group's property, plant, and equipment with a carrying value of approximately 154.9 million RMB were pledged as collateral for bank borrowing arrangements, with no land use rights pledged - As of June 30, 2025, certain of the Group's property, plant, and equipment with a carrying value of approximately **154.9 million RMB** were pledged as collateral for the Group's bank borrowing arrangements[90](index=90&type=chunk) - As of June 30, 2025, and December 31, 2024, the Group had no land use rights pledged as collateral for the Group's bank borrowing arrangements[90](index=90&type=chunk) [Exchange Rate Risk](index=24&type=section&id=Exchange%20Rate%20Risk) The Group is exposed to foreign exchange risk primarily from financial assets or liabilities denominated in currencies other than RMB and USD, and has entered into hedging agreements with Chinese commercial banks and implemented foreign exchange risk monitoring policies - The Group is exposed to a certain degree of foreign exchange risk, primarily due to financial assets or liabilities denominated in currencies other than its functional currency[93](index=93&type=chunk) - As of June 30, 2025, hedging agreements with a notional amount of **74.4 million USD (approximately 533.0 million RMB)** were in effect, with a term of 12 months or less[93](index=93&type=chunk) [Gearing Ratio](index=24&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was 13.18%, an increase from 8.14% as of December 31, 2024 - As of June 30, 2025, the Group's gearing ratio was **13.18%** (December 31, 2024: **8.14%**)[95](index=95&type=chunk) Other Information [Compliance with Corporate Governance Code](index=25&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company is committed to high corporate governance standards and generally complies with the Corporate Governance Code, with exceptions for the combined roles of Chairman and CEO and gender diversity on the Nomination Committee, aiming for full compliance by December 31, 2025 - The company has adopted the code provisions of the Corporate Governance Code as its code of corporate governance[96](index=96&type=chunk) - The roles of Chairman and Chief Executive Officer are not separate, both held by Dr. Yu, but the Board believes this structure does not affect the balance of power and responsibilities[96](index=96&type=chunk) - The company is currently seeking suitable candidates of different genders to serve as members of the Nomination Committee and expects to fully comply with code provision B.3.5 of the Corporate Governance Code on or before December 31, 2025[97](index=97&type=chunk) [Changes in Information of Directors, Supervisors and Chief Executive](index=25&type=section&id=Changes%20in%20Information%20of%20Directors,%20Supervisors%20and%20Chief%20Executive) During the reporting period, Independent Non-Executive Director Mr. Shuifa GUI ceased to serve as an independent non-executive director/director for Suzhou Industrial Park Lingzhi Software Co., Ltd. and Shanghai Tunnel Engineering Co., Ltd., with no other material changes to key personnel - In May 2025, Independent Non-Executive Director Mr. Shuifa GUI ceased to serve as an independent non-executive director of Suzhou Industrial Park Lingzhi Software Co., Ltd[98](index=98&type=chunk) - In June 2025, Independent Non-Executive Director Mr. Shuifa GUI ceased to serve as a director of Shanghai Tunnel Engineering Co., Ltd[98](index=98&type=chunk) [Compliance with Model Code for Securities Transactions](index=25&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code for securities transactions by directors and supervisors, and all directors and supervisors confirmed compliance during the reporting period, with no non-compliance by employees identified - The company has adopted the Model Code as its code of conduct for directors and supervisors in securities transactions[99](index=99&type=chunk) - Following specific inquiries to all directors and supervisors, each director and supervisor confirmed their compliance with the Model Code throughout the reporting period[99](index=99&type=chunk) [Review of Interim Financial Results](index=26&type=section&id=Review%20of%20Interim%20Financial%20Results) The Audit Committee has reviewed the company's unaudited interim results for the six months ended June 30, 2025, confirming compliance with applicable accounting standards, laws, and regulations, and appropriate disclosures - The Audit Committee has reviewed and confirmed this results announcement[3](index=3&type=chunk) - The Audit Committee believes that the interim results comply with applicable accounting standards, laws, and regulations, and that the company has made appropriate disclosures[100](index=100&type=chunk) [Scope of Work of Deloitte Touche Tohmatsu](index=26&type=section&id=Scope%20of%20Work%20of%20Deloitte%20Touche%20Tohmatsu) Deloitte Touche Tohmatsu, the company's independent auditor, reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410 and found no matters suggesting the condensed consolidated financial statements were not prepared in all material respects according to HKAS 34 - The interim financial information has been reviewed by the company's independent auditor, Deloitte Touche Tohmatsu, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[101](index=101&type=chunk) - The auditor found no matters that caused them to believe that the condensed consolidated financial statements were not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[126](index=126&type=chunk) [Interim Dividend](index=26&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the reporting period - The Board of Directors does not recommend the payment of an interim dividend for the reporting period (June 30, 2024: nil)[102](index=102&type=chunk) [Interests and Short Positions of Directors, Supervisors and Chief Executive in Shares, Underlying Shares and Debentures of the Company](index=26&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors,%20Supervisors%20and%20Chief%20Executive%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, the company's directors, supervisors, and chief executive held interests in the company's shares or underlying shares, with Dr. Yu holding H and A shares, Dr. Chao holding H and A shares (including spouse's interests), and other key personnel holding smaller stakes Interests of Directors/Supervisors in Shares or Underlying Shares of the Company | Name of Director/Supervisor | Capacity/Nature of Interest | Class of Shares | Number of Shares (L) | Approximate Percentage of Total Equity of the Company | Approximate Percentage of Relevant Class of Shares | | :--- | :--- | :--- | :--- | :--- | :--- | | Dr. Yu | Beneficial owner, party to agreement regarding interests in the company | H Shares | 34,876,400 | 14.09% | 26.29% | | Dr. Yu | Beneficial owner, party to agreement regarding interests in the company | A Shares | 34,598,400 | 13.98% | 30.14% | | Dr. Chao | Beneficial owner, spouse's interest | H Shares | 11,992,700 | 4.85% | 9.04% | | Dr. Chao | Spouse's interest | A Shares | 4,409,500 | 1.78% | 3.84% | | Dr. Shao Zhongqi | Beneficial owner | H Shares | 675,000 | 0.27% | 0.51% | | Ms. Wang Jing | Beneficial owner | H Shares | 18,800 | 0.0076% | 0.0142% | | Mr. Liu Jianzhong | Beneficial owner | H Shares | 1,000 | 0.0004% | 0.0009% | | Ms. Sun Chang | Beneficial owner | A Shares | 405 | 0.0002% | 0.0004% | - Dr. Chao is deemed to have an interest in shares held by Dr. Mao and two companies controlled by Dr. Mao, CHAMPDEN LLC and Medicharms LLC[105](index=105&type=chunk) [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares of the Company](index=28&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Dr. Mao, Dr. Zhu, and Dr. Qiu, acting in concert, held substantial interests in both H and A shares, representing approximately 14.09% and 13.98% of the company's total equity, respectively Interests of Substantial Shareholders in Shares or Underlying Shares of the Company | Name of Substantial Shareholder | Capacity/Nature of Interest | Class of Shares | Number of Shares (L) | Approximate Percentage of Total Equity of the Company | Approximate Percentage of Relevant Class of Shares | | :--- | :--- | :--- | :--- | :--- | :--- | | Dr. Mao | Beneficial owner, party to agreement regarding interests in the company, interest in controlled corporation | H Shares | 34,876,400 | 14.09% | 26.29% | | Dr. Mao | Beneficial owner, party to agreement regarding interests in the company | A Shares | 34,598,400 | 13.98% | 30.14% | | Dr. Zhu | Party to agreement regarding interests in the company | H Shares | 34,876,400 | 14.09% | 26.29% | | Dr. Zhu | Beneficial owner, party to agreement regarding interests in the company | A Shares | 34,598,400 | 13.98% | 30.14% | | Dr. Qiu | Beneficial owner, party to agreement regarding interests in the company | H Shares | 34,876,400 | 14.09% | 26.29% | | Dr. Qiu | Beneficial owner, party to agreement regarding interests in the company | A Shares | 34,598,400 | 13.98% | 30.14% | - Dr. Mao, Dr. Zhu, Dr. Qiu, and Dr. Yu entered into an acting-in-concert agreement on February 13, 2017, committing to vote consistently on any resolutions proposed at any general meeting of the company[112](index=112&type=chunk) [Use of Proceeds from H Share Listing and A Share Issuance](index=29&type=section&id=Use%20of%20Proceeds%20from%20H%20Share%20Listing%20and%20A%20Share%20Issuance) The company has adjusted the use of proceeds from its H-share and A-share issuances to optimize capital efficiency and support long-term growth, with funds primarily allocated to R&D, commercialization, and the CanSino Innovative Vaccine Industrial Park project, and some A-share over-allotment proceeds used for working capital [Use of Proceeds from H Share Initial Public Offering](index=29&type=section&id=Use%20of%20Proceeds%20from%20H%20Share%20Initial%20Public%20Offering) The net proceeds from the H-share IPO, approximately 1,122.3 million RMB, have been reallocated twice, primarily for R&D and commercialization of pipeline vaccines, with 178.5 million RMB remaining unutilized and expected to be fully used by the end of 2026 - The total net proceeds from the H-share initial public offering were approximately **1,309.8 million HKD**, equivalent to approximately **1,122.3 million RMB**[110](index=110&type=chunk) - The Board of Directors resolved twice, on August 21, 2020, and December 2, 2022, to change the use of proceeds from the H-share initial public offering[110](index=110&type=chunk) Intended and Actual Use of H-Share Proceeds (as of June 30, 2025) | Intended Use of H-Share Proceeds | Proposed Use of H-Share IPO Proceeds at Listing (million RMB) | Net Proceeds Unutilized as of June 30, 2025 (million RMB) | Expected Time for Full Utilization of Remaining Balance | | :--- | :--- | :--- | :--- | | R&D and Commercialization of Pipeline MCV | 505.1 | – | Not applicable | | R&D of Pipeline DTcP | 224.5 | – | Not applicable | | R&D of Other Key Products | 168.3 | – | Not applicable | | Continuous R&D of Preclinical Pipeline Vaccines | 112.2 | – | Not applicable | | Working Capital and Other General Corporate Purposes | 112.2 | – | Not applicable | | (i) Collaboration, Licensing, and Introduction of Advanced Technologies, Pipeline Vaccines, and Biologics; (ii) Development of Pipeline Vaccines; and (iii) Acquisition of High-Quality Assets Related to Vaccines and Biologics | – | 136.5 | Before end of 2026 | | R&D of DTcP-based Combination Vaccines | – | 42.0 | Before end of 2026 | | Total | 1122.3 | 178.5 | | [Use of Proceeds from A Share Initial Public Offering](index=30&type=section&id=Use%20of%20Proceeds%20from%20A%20Share%20Initial%20Public%20Offering) The net proceeds from the A-share IPO, approximately 4,979.5 million RMB, were reallocated in April 2021, primarily for the CanSino Innovative Vaccine Industrial Park project and pipeline vaccine development, with 257.6 million RMB remaining unutilized and some over-allotment proceeds used for working capital - The net proceeds from the A-share initial public offering were approximately **4,979.5 million RMB**[115](index=115&type=chunk) - The Board of Directors resolved on April 29, 2021, to change the use of the remaining unutilized proceeds from the A-share initial public offering[115](index=115&type=chunk) Intended and Actual Use of A-Share Proceeds (as of June 30, 2025) | Intended Use of A-Share IPO Proceeds | Revised Planned Use of A-Share IPO Proceeds as of May 28, 2021 (million RMB) | Net Proceeds Unutilized as of June 30, 2025 (million RMB) | Expected Time for Full Utilization of Remaining Balance | | :--- | :--- | :--- | :--- | | CanSino Innovative Vaccine Industrial Park Project | 1,100.0 | 233.6 | Before end of 2026 | | Development of Pipeline Vaccines | 150.0 | 24.0 | Before end of 2025 | | Construction of Vaccine Traceability, Cold Chain Logistics System, and Information System | 50.0 | – | Not applicable | | Working Capital | 250.0 | – | Not applicable | | Subtotal | 1,550.0 | 257.6 | Not applicable | | Over-allotment Proceeds from A-Share Issuance | 3,429.5 | – | Not applicable | | Total | 4,979.5 | 257.6 | | - The total over-allotment proceeds from the A-share issuance of **3,429.5 million RMB** have been used to permanently supplement working capital[118](index=118&type=chunk) [Purchases, Sales or Redemptions of the Company's Listed Securities](index=32&type=section&id=Purchases,%20Sales%20or%20Redemptions%20of%20the%20Company's%20Listed%20Securities) The company repurchased 683,748 A shares for approximately 150.2 million RMB in 2022, with 277,650 shares used for the 2023 shareholding plan, and no other listed securities were purchased, sold, or redeemed during the reporting period - The company repurchased **683,748 A shares** in 2022, for a total consideration of approximately **150.2 million RMB**[120](index=120&type=chunk) - As of June 30, 2025, **277,650 A shares** repurchased were used for the 2023 shareholding plan[120](index=120&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any other shares (including any sales or transfers of treasury shares)[121](index=121&type=chunk) [Rights of Directors and Supervisors to Acquire Shares or Debentures](index=32&type=section&id=Rights%20of%20Directors%20and%20Supervisors%20to%20Acquire%20Shares%20or%20Debentures) During the reporting period, no directors, supervisors, or their associates were granted or exercised any rights to acquire shares or debentures of the company or its subsidiaries - During the reporting period, no directors, supervisors, or any of their respective associates were granted any rights to acquire shares or debentures of the company or its subsidiaries, nor did they exercise any such rights[122](index=122&type=chunk) [Material Events After the Reporting Period](index=32&type=section&id=Material%20Events%20After%20the%20Reporting%20Period) No other material events occurred after the reporting period up to the date of this report, except as otherwise disclosed herein - Except as otherwise disclosed in this report, no other material events occurred after the reporting period up to the date of this report[123](index=123&type=chunk) Independent Auditor's Report [Scope of Review and Conclusion](index=33&type=section&id=Scope%20of%20Review%20and%20Conclusion) Deloitte Touche Tohmatsu, the independent auditor, reviewed CanSino Biologics' condensed consolidated financial statements in accordance with HKSRS 2410 and found no matters indicating non-compliance with HKAS 34 in all material respects - The auditor conducted the review in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants[125](index=125&type=chunk) - Based on the review, the auditor found no matters that caused them to believe that the condensed consolidated financial statements were not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[126](index=126&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Profit or Loss Statement Overview](index=34&type=section&id=Profit%20or%20Loss%20Statement%20Overview) For the six months ended June 30, 2025, CanSino Biologics reported revenue of 374.1 million RMB, gross profit of 296.6 million RMB, and a significantly narrowed loss for the period of 13.5 million RMB, with basic and diluted loss per share of 0.05 RMB Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Revenue | 374,088 | 285,420 | | Cost of Goods Sold | (77,508) | (98,269) | | Gross Profit | 296,580 | 187,151 | | Other Income | 94,405 | 54,127 | | Selling Expenses | (156,343) | (112,478) | | Administrative Expenses | (77,757) | (87,775) | | Research and Development Expenses | (147,794) | (185,902) | | Impairment Loss under Expected Credit Loss Model | (12,357) | (14,061) | | Other Gains (Losses), Net | 2,002 | (75,329) | | Share of Results of Associates | (944) | (16,199) | | Operating Loss | (2,208) | (250,466) | | Finance Income or Gains | 17,326 | 54,092 | | Finance Costs | (34,421) | (32,822) | | Finance (Expenses or Losses) Income or Gains – Net | (17,095) | 21,270 | | Loss Before Income Tax | (19,303) | (229,196) | | Income Tax Credit (Expense) | 5,818 | (964) | | Loss for the Period | (13,485) | (230,160) | | Total Comprehensive Expenses for the Period | (13,527) | (229,666) | | Loss for the Period Attributable to Owners of the Company | (13,485) | (225,373) | | Loss for the Period Attributable to Non-controlling Interests | – | (4,787) | | Loss Per Share – Basic and Diluted (in RMB) | (0.05) | (0.91) | Condensed Consolidated Statement of Financial Position [Assets, Equity and Liabilities Overview](index=35&type=section&id=Assets,%20Equity%20and%20Liabilities%20Overview) As of June 30, 2025, CanSino Biologics' total assets were 7,705.0 million RMB, with total equity at 4,903.4 million RMB and total liabilities at 2,801.6 million RMB Condensed Consolidated Statement of Financial Position (as of June 30) | Indicator | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 3,370,189 | 3,675,641 | | Total Current Assets | 4,334,839 | 4,282,491 | | Total Assets | 7,705,028 | 7,958,132 | | **Equity** | | | | Equity Attributable to Owners of the Company | 4,903,405 | 4,909,872 | | Non-controlling Interests | – | – | | Total Equity | 4,903,405 | 4,909,872 | | **Liabilities** | | | | Total Non-current Liabilities | 1,042,716 | 1,276,218 | | Total Current Liabilities | 1,758,907 | 1,772,042 | | Total Liabilities | 2,801,623 | 3,048,260 | | Total Equity and Liabilities | 7,705,028 | 7,958,132 | Condensed Consolidated Statement of Changes in Equity [Equity Changes Overview](index=37&type=section&id=Equity%20Changes%20Overview) For the six months ended June 30, 2025, equity attributable to owners slightly decreased from 4,909.9 million RMB to 4,903.4 million RMB, primarily due to the loss for the period and other comprehensive loss, partially offset by share-based payment transfers and restricted share sales Condensed Consolidated Statement of Changes in Equity (for the six months ended June 30) | Indicator | Balance as of January 1, 2025 (thousand RMB) | Total Comprehensive Expenses for the Period (thousand RMB) | Equity-settled Share-based Payments Recognized (thousand RMB) | Transfer upon Vesting of Share-based Payments (thousand RMB) | Impact of Sale of Restricted Shares Granted under 2023 Shareholding Scheme (thousand RMB) | Balance as of June 30, 2025 (thousand RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Share Capital | 247,450 | – | – | – | – | 247,450 | | Share Premium | 6,599,238 | – | – | 4,130 | – | 6,603,368 | | Treasury Shares | (95,622) | – | – | 6,406 | 99 | (89,117) | | Capital Reserve | (22,509) | – | 555 | (4,130) | – | (26,084) | | Statutory Reserve | 118,389 | – | – | – | – | 118,389 | | Translation Reserve | 224 | (42) | – | – | – | 182 | | Accumulated Losses | (1,937,298) | (13,485) | – | – | – | (1,950,783) | | Subtotal of Equity Attributable to Owners of the Company | 4,909,872 | (13,527) | 555 | 6,406 | 99 | 4,903,405 | | Non-controlling Interests | – | – | – | – | – | – | | Total | 4,909,872 | (13,527) | 555 | 6,406 | 99 | 4,903,405 | Condensed Consolidated Statement of Cash Flows [Cash Flow Overview](index=38&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, CanSino Biologics generated 3.4 million RMB net cash from operating activities, used 278.0 million RMB in investing activities, and 146.5 million RMB in financing activities, resulting in a net decrease of 421.1 million RMB in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (for the six months ended June 30) | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net Cash From (Used In) Operating Activities | 3,424 | (226,131) | | Net Cash (Used In) From Investing Activities | (278,041) | 2,210 | | Net Cash Used In Financing Activities | (146,528) | (113,307) | | Net Decrease in Cash and Cash Equivalents | (421,145) | (337,228) | | Cash and Cash Equivalents at Beginning of Period | 1,555,805 | 2,046,099 | | Effect of Exchange Rate Changes | (6,674) | 12,385 | | Cash and Cash Equivalents at End of Period | 1,127,986 | 1,721,256 | Notes to the Condensed Consolidated Financial Statements [1. General Information](index=39&type=section&id=1.%20General%20Information) CanSino Biologics, established in Tianjin, China on January 13, 2009, focuses on human vaccine R&D, manufacturing, and commercialization, with H-shares listed on HKEX in 2019 and A-shares on SSE STAR Market in 2020 - CanSino Biologics was incorporated in Tianjin, China on January 13, 2009, and is principally engaged in the research, development, manufacturing, and commercialization of human vaccine products[135](index=135&type=chunk) - The company's H shares were listed on the Main Board of the Stock Exchange of Hong Kong on March 28, 2019, and its A shares were listed on the STAR Market of the Shanghai Stock Exchange on August 13, 2020[136](index=136&type=chunk) [2. Basis of Preparation](index=39&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" issued by the HKICPA and applicable disclosure requirements of the HKEX Listing Rules - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[138](index=138&type=chunk) [3. Principal Accounting Policies](index=39&type=section&id=3.%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value, and the first-time application of HKAS 21 amendments "Lack of Exchangeability" had no material impact - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments that are measured at fair value[139](index=139&type=chunk) - During the current interim period, the Group has first applied the amendments to Hong Kong Financial Reporting Standards issued by the HKICPA that are mandatorily effective for the Group's annual period beginning on January 1, 2025, including amendments to HKAS 21 "Lack of Exchangeability"[140](index=140&type=chunk) - The application of the amendments to Hong Kong Financial Reporting Standards has had no material impact on the Group's financial position and performance for the current and prior periods and/or on the disclosures set out in these condensed consolidated financial statements[140](index=140&type=chunk) [4. Critical Accounting Judgements and Key Sources of Estimation Uncertainty](index=40&type=section&id=4.%20Critical%20Accounting%20Judgements%20and%20Key%20Sources%20of%20Estimation%20Uncertainty) Management makes judgments, estimates, and assumptions affecting reported amounts of assets, liabilities, income, and expenses when preparing the condensed consolidated financial statements, with actual results potentially differing, and key uncertainties remain consistent with the 2024 annual consolidated financial statements - In preparing the condensed consolidated financial statements, management is required to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses[141](index=141&type=chunk) - The critical judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty in preparing these condensed consolidated financial statements were the same as those applied to the consolidated financial statements for the year ended December 31, 2024[141](index=141&type=chunk) [5. Revenue](index=40&type=section&id=5.%20Revenue) For the six months ended June 30, 2025, the Group's revenue was 374.1 million RMB, primarily from vaccine product sales, recognized when control transfers, with contract liabilities mainly representing unfulfilled vaccine sales Revenue Details (for the six months ended June 30) | Revenue Source | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Sales of Vaccine Products at a Point in Time | 374,088 | 262,812 | | Provision of Development and Manufacturing Services at a Point in Time | – | 22,608 | | Total | 374,088 | 285,420 | - Revenue from the sale of vaccine products is recognized when control of the vaccine and related products is transferred, which is when the goods are shipped to a specific location and accepted by the customer[142](index=142&type=chunk) - As of June 30, 2025, contract liabilities recognized were **45,038 thousand RMB** (December 31, 2024: **14,687 thousand RMB**), primarily for unfulfilled sales of vaccine and related products and provision of development and manufacturing services, as well as research and technical services[146](index=146&type=chunk) [6. Segment Information](index=41&type=section&id=6.%20Segment%20Information) The Group operates as a single segment focused on human vaccine R&D, manufacturing, and commercialization, with revenue and non-current assets primarily derived fr

[Company Information and Disclaimer](index=1&type=section&id=Company%20Information%20and%20Disclaimer) This section presents the company's basic information and announcement summary, including the disclaimer from HKEX and SEHK [Disclaimer](index=1&type=section&id=Disclaimer) The HKEX and SEHK are not responsible for this announcement's content, make no statement on its accuracy or completeness, and disclaim liability for any loss arising from it - The HKEX and SEHK are not responsible for this announcement's content, make no statement on its accuracy or completeness, and assume no liability for any loss[1](index=1&type=chunk) [Company Basic Information and Announcement Summary](index=1&type=section&id=Company%20Basic%20Information%20and%20Announcement%20Summary) South China Holdings Company Limited (Stock Code: 00413) announced its unaudited interim results for the six months ended June 30, 2025 - South China Holdings Company Limited (Stock Code: 00413) announced its unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk) [Financial Statements](index=1&type=section&id=Financial%20Statements) This section provides the consolidated income statement, statement of profit or loss and other comprehensive income, and statement of financial position [Consolidated Income Statement](index=1&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, revenue decreased by 23.7% to HK$891.68 million, with loss for the period expanding to HK$89.996 million and basic loss per share at 0.7 HK cents Consolidated Income Statement Key Data (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 891,682 | 1,168,503 | | Cost of sales | (829,072) | (1,016,427) | | Gross profit | 62,610 | 152,076 | | Other income and gains, net | 95,361 | 64,455 | | Net fair value gain/(loss) on investment properties | (75) | 72,843 | | Selling and distribution expenses | (15,813) | (18,708) | | Administrative expenses | (178,897) | (152,906) | | Operating profit | 36,104 | 44,842 | | Finance costs | (101,750) | (124,374) | | Loss before tax | (65,646) | (79,532) | | Income tax expense | (24,350) | (1,344) | | Loss for the period | (89,996) | (80,876) | | Loss attributable to owners of the Company | (91,769) | (79,142) | | Non-controlling interests | 1,773 | (1,734) | | Basic loss per share | (0.7) HK cents | (0.6) HK cents | | Diluted loss per share | (0.7) HK cents | (0.6) HK cents | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income for the period turned to a gain of HK$74.287 million from a loss of HK$215.635 million in 2024, mainly due to exchange differences on translating financial statements of overseas operations Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Loss for the period | (89,996) | (80,876) | | Surplus on revaluation of property, plant and equipment | – | 27,324 | | Exchange differences on translating financial statements of overseas operations | 192,286 | (162,083) | | Exchange reserve reclassified to profit or loss on disposal of subsidiaries | (28,003) | – | | Total comprehensive income for the period | 74,287 | (215,635) | | Attributable to owners of the Company | 58,781 | (203,383) | | Non-controlling interests | 15,506 | (12,252) | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets less current liabilities were HK$8.396 billion, a decrease from HK$9.552 billion at the end of 2024, with net current liabilities significantly increasing to a HK$1.525 billion loss, while net assets slightly grew to HK$6.221 billion Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 397,306 | 430,689 | | Investment properties | 9,447,626 | 9,192,767 | | Total non-current assets | 9,921,252 | 9,790,196 | | **Current assets** | | | | Inventories | 836,130 | 720,711 | | Trade receivables | 349,834 | 399,041 | | Cash and bank balances | 389,630 | 621,514 | | Total current assets | 3,109,743 | 3,175,772 | | **Current liabilities** | | | | Trade payables | 613,824 | 699,173 | | Interest-bearing bank borrowings | 3,260,440 | 2,073,370 | | Total current liabilities | 4,635,030 | 3,414,216 | | Net current liabilities | (1,525,287) | (238,444) | | **Non-current liabilities** | | | | Interest-bearing bank borrowings | 274,072 | 1,597,999 | | Total non-current liabilities | 2,174,608 | 3,434,290 | | Net assets | 6,221,357 | 6,117,462 | | Total equity attributable to owners of the Company | 5,897,518 | 5,827,541 | | Non-controlling interests | 323,839 | 289,921 | | Total equity | 6,221,357 | 6,117,462 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the basis of preparation, accounting policies, revenue and segment information, other income, operating profit, finance costs, income tax, interim dividend, loss per share, trade receivables, trade payables, and share capital [Basis of Preparation and Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim financial statements are prepared in accordance with HKEX Listing Rules and HKAS 34, using the same accounting policies as the 2024 annual financial statements, with no new standards applied - The interim financial statements are prepared in accordance with the HKEX Listing Rules and Hong Kong Accounting Standard 34[7](index=7&type=chunk) - The Group has assessed the impact of adopting HKAS 21 (Revised) 'The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability' and believes it has no material impact on results or financial position[9](index=9&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[10](index=10&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) For the six months ended June 30, 2025, Trade and Manufacturing segment revenue decreased by 25.7% to HK$789 million, incurring an operating loss of HK$102 million, while Property Investment and Development revenue slightly decreased but operating profit significantly increased Revenue and Operating Results by Business Segment (Six Months Ended June 30) | Business Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2025 Operating Results (HK$ thousand) | 2024 Operating Results (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Trade and Manufacturing | 789,096 | 1,061,505 | (102,481) | 31,767 | | Property Investment and Development | 102,529 | 106,936 | 110,210 | 41,354 | | Agricultural and Forestry Business | 57 | 62 | (10,929) | (2,859) | | Others | – | – | 39,304 | (25,420) | | **Group Total** | **891,682** | **1,168,503** | **36,104** | **44,842** | Revenue and Operating Profit Contribution by Geographical Segment (Six Months Ended June 30) | Geographical Segment | 2025 Revenue (HK$ thousand) | 2024 Revenue (HK$ thousand) | 2025 Operating Profit (HK$ thousand) | 2024 Operating Profit (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | China (including Hong Kong and Macau) | 137,322 | 170,503 | 137,381 | 24,668 | | United States | 391,105 | 598,360 | (37,383) | 16,835 | | Europe | 220,844 | 281,128 | (39,208) | 2,215 | | Japan | 11,457 | 3,696 | (2,046) | 21 | | Others | 130,954 | 114,816 | (22,640) | 1,103 | | **Total** | **891,682** | **1,168,503** | **36,104** | **44,842** | [Other Income and Gains, Net](index=7&type=section&id=Other%20Income%20and%20Gains%2C%20Net) For the six months ended June 30, 2025, the company recognized a gain of approximately HK$67.561 million from the disposal of subsidiaries, with no such gain in the prior year - For the six months ended June 30, 2025, a gain of approximately **HK$67,561,000** from the disposal of subsidiaries was recognized (2024: nil)[12](index=12&type=chunk) [Operating Profit](index=8&type=section&id=Operating%20Profit) For the six months ended June 30, 2025, operating profit was derived after deducting cost of sales of HK$797.3 million (2024: HK$975.88 million) and depreciation expenses of HK$50.403 million (2024: HK$50.248 million) Operating Profit Deductions (Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cost of goods sold | 783,553 | 959,982 | | Cost of sales of completed properties | 13,747 | 15,899 | | **Total Cost of Sales** | **797,300** | **975,881** | | Depreciation: Property, plant and equipment | 15,191 | 16,230 | | Depreciation: Bearer plants | 554 | 626 | | Depreciation: Right-of-use assets | 34,658 | 33,392 | | **Total Depreciation** | **50,403** | **50,248** | [Finance Costs](index=8&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, total finance costs decreased to HK$101.75 million from HK$124.374 million in 2024, primarily due to lower interest on bank and other borrowings Finance Costs Analysis (Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 91,661 | 113,479 | | Interest on lease liabilities | 10,089 | 10,895 | | **Total Finance Costs** | **101,750** | **124,374** | [Income Tax](index=8&type=section&id=Income%20Tax) Income tax comprises current and deferred tax, with Hong Kong profits tax levied at 16.5% and other regions at prevailing local rates - Income tax comprises current tax and deferred tax[15](index=15&type=chunk) - Hong Kong profits tax is provided at a rate of **16.5%**, with other regions calculated at prevailing local rates[15](index=15&type=chunk) [Interim Dividend](index=9&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[16](index=16&type=chunk) [Loss Per Share](index=9&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share were both 0.7 HK cents, higher than 0.6 HK cents in 2024, mainly due to increased loss attributable to owners of the Company Loss Per Share Calculation Basis (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand/thousand shares) | 2024 (HK$ thousand/thousand shares) | | :--- | :--- | :--- | | Loss attributable to owners of the Company for basic and diluted loss per share | (91,769) | (79,142) | | Weighted average number of ordinary shares in issue for basic and diluted loss per share | 12,982,892 | 12,982,892 | - The Company's share options had no dilutive effect during the reporting period as the exercise price was higher than the average market price[18](index=18&type=chunk) - Diluted loss per share was the same as basic loss per share because the outstanding potential ordinary shares had an anti-dilutive effect[19](index=19&type=chunk) [Trade Receivables](index=10&type=section&id=Trade%20Receivables) As of June 30, 2025, trade receivables were approximately HK$349.834 million, a decrease from HK$399.041 million at the end of 2024, with most aged within six months - As of June 30, 2025, trade receivables were approximately **HK$349,834,000** (December 31, 2024: HK$399,041,000), with most aged within six months[20](index=20&type=chunk) - The Group maintains strict control over outstanding receivables and has a credit control department to monitor credit risk[20](index=20&type=chunk) [Trade Payables](index=10&type=section&id=Trade%20Payables) As of June 30, 2025, trade payables were approximately HK$613.824 million, a decrease from HK$699.173 million at the end of 2024, with most aged within six months - As of June 30, 2025, trade payables were approximately **HK$613,824,000** (December 31, 2024: HK$699,173,000), with most aged within six months[21](index=21&type=chunk) [Share Capital](index=10&type=section&id=Share%20Capital) As of June 30, 2025, the company's total authorized share capital was HK$260 million, and total issued and fully paid share capital was HK$134.413 million, with no changes in share capital quantity during the reporting period Share Capital Composition (As of June 30) | Share Capital Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Authorized ordinary shares (HK$0.01 par value per share) | 200,000 | 200,000 | | Authorized redeemable convertible preference shares (HK$0.02 par value per share) | 60,000 | 60,000 | | **Total Authorized Share Capital** | **260,000** | **260,000** | | Issued and fully paid ordinary shares (HK$0.01 par value per share) | 132,213 | 132,213 | | Issued and fully paid redeemable convertible preference shares (HK$0.02 par value per share) | 2,200 | 2,200 | | **Total Issued and Fully Paid Share Capital** | **134,413** | **134,413** | - Redeemable convertible preference shares can be redeemed by the Company at any time, and holders are entitled to dividends or distributions as determined by the Board, with priority over ordinary shares in liquidation[23](index=23&type=chunk) - There was no change in the number of ordinary shares and redeemable convertible preference shares issued by the Company for the six months ended June 30, 2025 and 2024[23](index=23&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a financial summary, business review, and analysis of liquidity, financial resources, exchange rate risks, capital structure, contingent liabilities, employees, and material acquisitions and disposals [Financial Summary and Key Performance Indicators](index=12&type=section&id=Financial%20Summary%20and%20Key%20Performance%20Indicators) For the six months ended June 30, 2025, the Group's revenue decreased by 23.7% to approximately HK$891.7 million, with a loss after tax of approximately HK$90 million and loss per share of 0.7 HK cents Financial Summary (Six Months Ended June 30) | Indicator | 2025 (HK$) | 2024 (HK$) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. 891,700,000 | Approx. 1,168,500,000 | -23.7% | | Loss after tax | Approx. 90,000,000 | Approx. 80,900,000 | Increased | | Loss per share attributable to owners of the Company | 0.7 HK cents | 0.6 HK cents | Increased | [Business Review](index=12&type=section&id=Business%20Review) The Group's main businesses include Trade and Manufacturing, Property Investment and Development, and Agricultural and Forestry businesses, with Trade and Manufacturing revenue declining and incurring an operating loss, while Property Investment and Development saw significant profit growth - The Group's main businesses are Trade and Manufacturing, Property Investment and Development, and Agricultural and Forestry businesses[25](index=25&type=chunk) [Trade and Manufacturing](index=12&type=section&id=Trade%20and%20Manufacturing) Trade and Manufacturing segment revenue decreased by 25.7% to HK$789 million, turning from profit to an operating loss of HK$102 million, mainly due to a significant 35.1% drop in OEM toy production revenue, despite a 75.9% increase in footwear product trade revenue Trade and Manufacturing Segment Performance (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 789,100 | 1,061,500 | -25.7% | | Operating loss/(profit) | (102,500) | 31,800 | Turned to loss | [OEM Toy Production](index=12&type=section&id=OEM%20Toy%20Production) OEM toy production revenue decreased by 35.1% to HK$625.7 million, primarily due to reduced US toy imports, weak consumer sentiment, geopolitical tensions, and tariff uncertainties, leading major US clients to adopt cautious ordering strategies OEM Toy Production Revenue (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 625,700 | 964,300 | -35.1% | - Total US toy imports decreased by **31%** year-on-year, with imports from China decreasing by **47%**, and tariffs posing a challenge to the toy industry[28](index=28&type=chunk) - The Group has factories in Vietnam and mainland China, and will cater to market demand by streamlining the supply chain, controlling costs, and strategically allocating production[29](index=29&type=chunk) [Footwear Product Trading](index=13&type=section&id=Footwear%20Product%20Trading) Footwear trade business revenue grew by 75.9% to HK$157.7 million, but operating profit decreased by 19.9% to HK$5.9 million due to an aggressive pricing strategy resulting in lower gross margins Footwear Product Trading Performance (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 157,700 | 89,700 | +75.9% | | Operating profit | 5,900 | 7,300 | -19.9% | - To outperform competitors, the Group adopted an aggressive pricing strategy, offering relatively lower prices to secure purchase orders[30](index=30&type=chunk) [Branded Ball Product Sales](index=13&type=section&id=Branded%20Ball%20Product%20Sales) Sales of branded ball products in mainland China decreased by 26.8% to HK$4.2 million, mainly because educational institutions shifted from bulk purchasing to on-demand procurement, with the Group planning to expand distribution channels using the 'Li Sheng' brand Branded Ball Product Sales Revenue (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 4,200 | 5,800 | -26.8% | - Revenue decline was mainly due to major customers (educational institutions) shifting from bulk purchasing to on-demand procurement, possibly influenced by tightened local government budgets[31](index=31&type=chunk) - The Group plans to leverage the 'Li Sheng' brand to enhance product awareness and expand its sales network, reducing reliance on bulk purchases from educational institutions[31](index=31&type=chunk) [Property Investment and Development](index=13&type=section&id=Property%20Investment%20and%20Development) Property Investment and Development segment revenue decreased by 4.1% to HK$102.5 million, but operating profit (including fair value changes of investment properties) significantly increased to HK$110.2 million, with the Group cautiously optimistic about the mainland China real estate market and having disposed of a non-material subsidiary in Tianjin to optimize resource allocation Property Investment and Development Segment Performance (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 102,500 | 106,900 | -4.1% | | Operating profit (including fair value changes) | 110,200 | 41,400 | +166.2% | | Operating profit (excluding fair value changes) | 37,400 | 41,400 | -9.7% | - The Group's investment property portfolio in China has a total gross floor area of approximately **570,000 square meters**, with approximately **69%** of the saleable area of the flagship 'Central Plaza' residential towers and serviced apartments already sold[33](index=33&type=chunk) - Management is cautiously optimistic about sales and rental contributions for 2025 and beyond, as the Chinese central government has introduced various measures to stimulate the real estate market[33](index=33&type=chunk) - A subsidiary located in Tianjin was disposed of during the period to reallocate resources to profitable core business segments[34](index=34&type=chunk) [Agricultural and Forestry Business](index=14&type=section&id=Agricultural%20and%20Forestry%20Business) Agricultural product sales revenue decreased to HK$57,000, and other income from sub-leasing agricultural and forest land decreased to HK$6.6 million, with operating loss increasing to HK$10.9 million due to reduced sub-leasing income from expired leases Agricultural and Forestry Business Revenue and Loss (Six Months Ended June 30) | Indicator | 2025 (HK$) | 2024 (HK$) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Agricultural product sales revenue | 57,000 | 62,000 | -8.1% | | Other income from sub-leasing agricultural and forest land | 6,600,000 | 8,700,000 | -24.2% | | Operating loss | 10,900,000 | 2,900,000 | Increased | - The increase in operating loss was mainly due to the expiration of some leases, leading to a reduction in other income from sub-leasing[35](index=35&type=chunk) [Liquidity and Financial Resources](index=15&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's current ratio was 0.67 and gearing ratio was 4.4%, with the current ratio decreasing from 0.93 at the end of 2024, but the gearing ratio significantly improved, and the company funds operations through internal resources and bank borrowings while closely monitoring liquidity risk Liquidity and Financial Resources Indicators (As of June 30) | Indicator | 2025 June 30 | 2024 December 31 | | :--- | :--- | :--- | | Current ratio | 0.67 | 0.93 | | Gearing ratio | 4.4% | 26.1% | | Long-term bank borrowings | HK$274,100,000 | - | | Equity | HK$6,221,400,000 | - | - The Group's operations and investments continue to be funded by internal resources and bank borrowings[36](index=36&type=chunk) - The Group closely monitors liquidity risk and maintains a balance between funding continuity and flexibility by utilizing bank financing[36](index=36&type=chunk) [Exchange Rate Fluctuation Risk and Related Hedging](index=15&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Related%20Hedging) The Group faces foreign currency exchange rate risks, including RMB and USD, which are managed by closely monitoring exchange rate trends and entering into forward contracts as appropriate - The Group faces foreign currency exchange rate risks, including RMB and USD[37](index=37&type=chunk) - Foreign currency exchange rate risks are managed by closely monitoring exchange rate trends and entering into forward contracts as appropriate[37](index=37&type=chunk) [Capital Structure](index=15&type=section&id=Capital%20Structure) There have been no significant changes in the Group's capital structure compared to the most recently published annual report - There have been no significant changes in the Group's capital structure compared to the most recently published annual report[38](index=38&type=chunk) [Contingent Liabilities](index=15&type=section&id=Contingent%20Liabilities) Certain investment properties are pledged to banks for loan facilities, and a subsidiary provided a guarantee of approximately HK$189 million for independent buyers of Central Plaza properties, which will be released upon issuance of property ownership certificates - Certain investment properties are pledged to banks for bank loan facilities[39](index=39&type=chunk) - A subsidiary of the Company provided a guarantee of approximately **HK$189 million** for independent buyers of Central Plaza properties, which will be released upon issuance of property ownership certificates[39](index=39&type=chunk) [Employees](index=16&type=section&id=Employees) As of June 30, 2025, the Group's total number of employees decreased to 13,422 (2024: 15,537), with employee costs of approximately HK$335.3 million (2024: HK$393.5 million), and the company provides salaries, benefits, provident funds, training allowances, and share option/award schemes Employee Information (As of June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total number of employees | 13,422 | 15,537 | | Employee costs (including directors' emoluments) | Approx. HK$335,300,000 | Approx. HK$393,500,000 | - The Group provides employee benefits such as medical allowances, provident funds, and external training course allowances, and has share option and share award schemes[41](index=41&type=chunk) [Material Acquisitions and Disposals](index=16&type=section&id=Material%20Acquisitions%20and%20Disposals) During the period, the Company disposed of the entire issued share capital of Yu Kiu Limited, Hang Fai Limited, and Chun Wing Limited for a total consideration of HK$26.96 million, recognizing a gain on disposal of approximately HK$67.561 million, with no other material acquisitions or disposals - The Company disposed of the entire issued share capital of Yu Kiu Limited, Hang Fai Limited, and Chun Wing Limited for a total consideration of **HK$26,960,296**[42](index=42&type=chunk) - A gain on disposal of subsidiaries of approximately **HK$67,561,000** was recognized during the period[42](index=42&type=chunk) - Save as aforesaid, there were no other material acquisitions and disposals of subsidiaries and associated companies by the Company during the period[43](index=43&type=chunk) [Outlook](index=17&type=section&id=Outlook) This section provides an outlook on the macroeconomic environment and the Group's Trade and Manufacturing, Property Investment and Development, and Agricultural and Forestry businesses [Macroeconomic Outlook](index=17&type=section&id=Macroeconomic%20Outlook) The global economy in H1 2025 was affected by high interest rates, US tariff policies, and geopolitical uncertainties, with expectations for Fed rate cuts and more policy support for consumption and 'new economy' sectors in mainland China in H2 - The global economy in H1 2025 was affected by high interest rates, US tariff policies, and geopolitical uncertainties[44](index=44&type=chunk) - The Federal Reserve is expected to cut interest rates in H2 2025 to stimulate domestic consumption and mitigate the impact of import tariffs[44](index=44&type=chunk) - Mainland China is expected to introduce more policies to support consumption and 'new economy' sectors, setting a GDP growth target of approximately **5%**[45](index=45&type=chunk) - The People's Bank of China is expected to continue supportive monetary policies, accelerate local government bond issuance to boost infrastructure projects, and prioritize consumption, innovation, and structural reforms[46](index=46&type=chunk) [Trade and Manufacturing Business Outlook](index=18&type=section&id=Trade%20and%20Manufacturing%20Business%20Outlook) The Trade and Manufacturing business faces challenges from global economic volatility and geopolitical tensions, with the Group planning to enhance competitiveness through vertical integration, innovation, new customer acquisition, local sourcing, outsourcing, production optimization, and expansion of its Vietnam production base, while monitoring US tariffs and exploring AI applications in toy manufacturing - Global economic volatility and geopolitical tensions will continue to pose significant challenges to this business segment, with additional US tariffs and high interest rates impacting toy product demand[48](index=48&type=chunk) - The Group will establish itself as a one-stop solution provider by advancing vertical integration and innovation[48](index=48&type=chunk) - To expand market share and increase production utilization, the Group will focus on developing diverse customer sources, adapting to price-sensitive customers, increasing local sourcing, and outsourcing non-core manufacturing processes[49](index=49&type=chunk) - The Group will expand production processes to Vietnam, leveraging lower labor costs to diversify its production and supply chain network, and seek to dispose of idle manufacturing assets in mainland China[49](index=49&type=chunk)[50](index=50&type=chunk) - The Group will actively monitor the impact of new US tariffs and adjust product pricing and supply chain management strategies in a timely manner[50](index=50&type=chunk) - The Group recognizes the transformative potential of artificial intelligence in revolutionizing toy manufacturing, aiming to improve operational efficiency, product quality, and cost-effectiveness[50](index=50&type=chunk) [OEM Toy Production Outlook](index=18&type=section&id=OEM%20Toy%20Production%20Outlook) OEM toy production faces challenges from global economic volatility and geopolitical tensions, with additional US tariffs and high interest rates impacting demand, prompting the Group to enhance competitiveness through vertical integration, innovation, new customer acquisition, local sourcing, outsourcing, production optimization, and expansion of its Vietnam production base, while monitoring US tariffs and exploring AI applications - Global economic volatility and geopolitical tensions will continue to pose significant challenges to this business segment, with additional US tariffs and high interest rates impacting toy product demand[48](index=48&type=chunk) - The Group will establish itself as a one-stop solution provider by advancing vertical integration and innovation[48](index=48&type=chunk) - To expand market share and increase production utilization, the Group will focus on developing diverse customer sources, adapting to price-sensitive customers, increasing local sourcing, and outsourcing non-core manufacturing processes[49](index=49&type=chunk) - The Group will expand production processes to Vietnam, leveraging lower labor costs to diversify its production and supply chain network, and seek to dispose of idle manufacturing assets in mainland China[49](index=49&type=chunk)[50](index=50&type=chunk) - The Group will actively monitor the impact of new US tariffs and adjust product pricing and supply chain management strategies in a timely manner[50](index=50&type=chunk) - The Group recognizes the transformative potential of artificial intelligence in revolutionizing toy manufacturing, aiming to improve operational efficiency, product quality, and cost-effectiveness[50](index=50&type=chunk) [Footwear Product Trading Outlook](index=19&type=section&id=Footwear%20Product%20Trading%20Outlook) The Group will maintain its referrer network to expand new customers and place orders with different factories based on customer recognition in various countries to balance production costs and profit margins, while also offering diverse products like athletic shoes and apparel to existing customers and continuously exploring business opportunities - The Group will maintain its referrer network to introduce new customers and expand business opportunities without incurring fixed costs[51](index=51&type=chunk) - The Group's strategy is to place orders with different factories based on customer recognition in various countries to balance production costs and profit margins for each order[51](index=51&type=chunk) - The Group has been offering a variety of products, including athletic shoes and apparel, to existing customers since Q2 2025[51](index=51&type=chunk) [Property Investment and Development Business Outlook](index=20&type=section&id=Property%20Investment%20and%20Development%20Business%20Outlook) For property investment, the Group will continuously improve its tenant mix, upgrade mall facilities, and leverage favorable visa policies to attract tourists and increase rental income; for property development, the mainland China real estate market is expected to continue adjusting with gradual demand recovery and ongoing government support, prompting the Group to adopt a highly cautious approach to property project development and management, while actively pursuing land repurchase and redevelopment opportunities in Nanjing and Shenzhen to enhance land reserve value - The overall real estate market in mainland China is expected to remain in an adjustment period, with demand gradually recovering and policy support continuing to evolve[53](index=53&type=chunk) - The Group will continue to adopt a highly cautious approach to property project development and management[54](index=54&type=chunk) - The Chinese central government is expected to continue strengthening support measures in 2025 to boost the real estate market, such as easing purchase restrictions, lowering down payment ratios, and mortgage interest rates[55](index=55&type=chunk) - Local governments in Nanjing and Shenzhen are discussing land repurchase and redevelopment plans with the Group for inefficient land, which is expected to bring positive financial contributions and enhance land value[57](index=57&type=chunk) [Property Investment Outlook](index=20&type=section&id=Property%20Investment%20Outlook) The Group will continuously improve its tenant mix, renovate and upgrade Shenyang Xinghui Plaza facilities, establish experiential retail spaces, and expand the Central Plaza retail mall tenant portfolio, while leveraging favorable visa policies from mainland China authorities to attract tourists, expand customer base, and increase rental income - The Group will continuously improve and adjust its tenant mix, renovate and upgrade facilities at Shenyang Xinghui Plaza, and establish experiential retail spaces[52](index=52&type=chunk) - The retail mall at Central Plaza has expanded its tenant portfolio, leasing some spaces to hotel operators and other experiential retailers[52](index=52&type=chunk) - More favorable visa policies introduced by mainland China authorities will attract more tourists, positively impacting the retail industry and increasing leasing demand from retailers[52](index=52&type=chunk) [Property Development Outlook](index=20&type=section&id=Property%20Development%20Outlook) The overall real estate market in mainland China is expected to remain in an adjustment period with gradual demand recovery and ongoing policy support, prompting the Group to adopt a highly cautious approach to property project development and management, while actively pursuing land repurchase and redevelopment opportunities in Nanjing and Shenzhen to enhance land reserve value - The overall real estate market in mainland China is expected to remain in an adjustment period, with demand gradually recovering and policy support continuing to evolve[53](index=53&type=chunk) - The Group will continue to adopt a highly cautious approach to property project development and management[54](index=54&type=chunk) - The Chinese central government is expected to continue strengthening support measures in 2025 to boost the real estate market, such as easing purchase restrictions, lowering down payment ratios, and mortgage interest rates[55](index=55&type=chunk) - Local governments in Nanjing and Shenzhen are discussing land repurchase and redevelopment plans with the Group for inefficient land, which is expected to bring positive financial contributions and enhance land value[57](index=57&type=chunk) [Agricultural and Forestry Business Outlook](index=21&type=section&id=Agricultural%20and%20Forestry%20Business%20Outlook) The Group long-term leases over 290,000 mu of forest land, agricultural land, fish ponds, and lakes in mainland China, focusing on cultivating high-profit varieties, improving yields, sales and distribution channels, resource utilization, and cost control, while actively seeking opportunities to convert agricultural land for higher returns and strategic cooperation with agricultural operators - The Group long-term leases over **290,000 mu** of forest land, agricultural land, fish ponds, and lakes across several provinces in mainland China, focusing on cultivating fruits and crops[58](index=58&type=chunk) - The Group is committed to exploring the cultivation of high-profit varieties while prioritizing improvements in yields, sales and distribution channels, resource utilization, and cost control[58](index=58&type=chunk) - The Group will actively seek opportunities to obtain higher returns by converting agricultural land use and strategically cooperate with other agricultural operators[58](index=58&type=chunk) [Key Risks and Uncertainties](index=22&type=section&id=Key%20Risks%20and%20Uncertainties) This section outlines key risks and uncertainties related to the Group's Trade and Manufacturing, Property Investment and Development, and Agricultural and Forestry businesses [Trade and Manufacturing Related Risks](index=22&type=section&id=Trade%20and%20Manufacturing%20Related%20Risks) The Trade and Manufacturing business faces risks from a deteriorating macroeconomic environment leading to reduced non-essential consumption, and rising operating costs due to increased raw material, transportation, labor costs, or product liability lawsuits - A deteriorating macroeconomic environment (e.g., economic recession, credit crisis) may lead to reduced disposable income and lower consumer confidence, impacting customer orders[60](index=60&type=chunk) - Increased costs due to raw materials, transportation, mainland China's minimum wage legislation, or compliance with existing or future regulatory requirements may affect the Group's profit margins on product sales[61](index=61&type=chunk) - The Group may face product liability lawsuits or product recalls in the future, which could harm its business[61](index=61&type=chunk) [Macroeconomic Environment Risk](index=22&type=section&id=Macroeconomic%20Environment%20Risk) The Group's Trade and Manufacturing business relies on global non-essential consumption levels, and economic downturns, credit crises, or other economic slumps may reduce consumer disposable income and confidence, leading to fewer customer orders - The Group's financial performance depends on the level of non-essential consumption in the final sales markets for its products[60](index=60&type=chunk) - Economic recession, credit crises, and other economic downturns lead to reduced consumer disposable income and lower consumer confidence, which in turn results in fewer customer orders[60](index=60&type=chunk) [Cost Increase Risk](index=22&type=section&id=Cost%20Increase%20Risk) Increased costs due to raw materials, transportation, mainland China's minimum wage legislation, or compliance with existing or future regulatory requirements may affect the Group's profit margins on product sales, and product liability lawsuits or recalls could also harm the business - Increased costs due to raw materials, transportation, mainland China's minimum wage legislation, or compliance with existing or future regulatory requirements may affect the Group's profit margins on product sales[61](index=61&type=chunk) - The Group may face product liability lawsuits or product recalls in the future, which could harm its business[61](index=61&type=chunk) [Property Investment and Development Related Risks](index=22&type=section&id=Property%20Investment%20and%20Development%20Related%20Risks) The Group's property portfolio is mainly located in mainland China, facing risks from policy changes, RMB exchange rates, interest rates, supply-demand imbalances, and overall economic conditions, while the Hong Kong property market is also affected by economic conditions, legislative and regulatory changes, government policies, and competition - The Group's property portfolio is mainly located in mainland China, thus facing risks related to the mainland China real estate market[62](index=62&type=chunk) - Mainland China operations are affected by risks such as policy changes, RMB exchange rate fluctuations, interest rate changes, supply-demand imbalances, and overall economic conditions[62](index=62&type=chunk) - The economic and real estate market conditions in Hong Kong, legislative and regulatory changes, government policies and political environment also affect the Group's revenue from its property portfolio in Hong Kong[63](index=63&type=chunk) [Mainland China Real Estate Market Risk](index=22&type=section&id=Mainland%20China%20Real%20Estate%20Market%20Risk) The Group's property portfolio is mostly in mainland China, facing risks from policy changes, RMB exchange rate fluctuations, interest rate changes, supply-demand imbalances, and overall economic conditions, which could adversely affect its business, financial position, or operating results - The Group's property portfolio is mainly located in mainland China, thus facing risks related to the mainland China real estate market[62](index=62&type=chunk) - Mainland China operations are affected by risks such as policy changes, RMB exchange rate fluctuations, interest rate changes, supply-demand imbalances, and overall economic conditions[62](index=62&type=chunk) [Hong Kong Real Estate Market Risk](index=22&type=section&id=Hong%20Kong%20Real%20Estate%20Market%20Risk) Hong Kong's economic and real estate market conditions, legislative and regulatory changes, government policies and political environment, and competition from primary supply may all impact the Group's property portfolio revenue, with the government potentially introducing cooling measures from time to time - The economic and real estate market conditions in Hong Kong, legislative and regulatory changes, government policies and political environment also affect the Group's revenue from its property portfolio in Hong Kong[63](index=63&type=chunk) - The government may introduce cooling measures for the property market from time to time[63](index=63&type=chunk) - Rental levels in Hong Kong may be affected by competition arising from primary supply[63](index=63&type=chunk) [Agricultural and Forestry Business Related Risks](index=23&type=section&id=Agricultural%20and%20Forestry%20Business%20Related%20Risks) The Agricultural and Forestry business is susceptible to natural disasters (e.g., droughts, floods, earthquakes) and adverse weather, which may lead to reduced yields or production delays, adversely affecting business and operating results - The Group's agricultural and forestry business is susceptible to natural disasters such as droughts, floods, earthquakes, and environmental disasters, as well as adverse weather conditions[64](index=64&type=chunk) - Any of the aforementioned events occurring in or around the planting areas may lead to reduced yields or production delays, which in turn could adversely affect the Group's business and operating results[64](index=64&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) This section covers interim dividend, securities transactions, corporate governance, standard code for securities transactions, litigation, post-reporting period events, audit committee review, publication of results, and board members [Interim Dividend](index=23&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[66](index=66&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[67](index=67&type=chunk) [Corporate Governance Code](index=23&type=section&id=Corporate%20Governance%20Code) The Company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[68](index=68&type=chunk) [Standard Code for Securities Transactions](index=23&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[69](index=69&type=chunk) - All directors have confirmed their compliance with the required standards set out in the Standard Code for the six months ended June 30, 2025[69](index=69&type=chunk) [Litigation](index=24&type=section&id=Litigation) No significant changes occurred in the copyright infringement and corporate interest damage liability cases during the reporting period; for the Tianjin Binhai land infringement case, the Supreme People's Court accepted the retrial application and is awaiting scheduling; the Nansha land arbitration case also saw no significant changes - No significant changes occurred in the copyright infringement case and the corporate interest damage liability case during the reporting period[70](index=70&type=chunk)[71](index=71&type=chunk) - In the Tianjin Binhai land infringement case, the Supreme People's Court has accepted Huanwei's application for retrial and is currently awaiting scheduling[72](index=72&type=chunk) - No significant changes occurred in the Nansha land arbitration case during the reporting period[73](index=73&type=chunk) [Events After Reporting Period](index=24&type=section&id=Events%20After%20Reporting%20Period) On July 21, 2025, the Company's indirect wholly-owned subsidiary, Changrong Toys (Dongguan) Co Ltd, entered into a sale and purchase agreement with an independent third party to dispose of land use rights for two industrial plots in Xie Keng Village, Qingxi Town, Dongguan City, for a total consideration of RMB42.624 million (approximately HK$46.84 million), with the transaction yet to be completed - On July 21, 2025, Changrong Toys (Dongguan) Co Ltd, an indirect wholly-owned subsidiary of the Company, agreed to dispose of the land use rights for two industrial plots in Xie Keng Village, Qingxi Town, Dongguan City[74](index=74&type=chunk) - The total consideration is **RMB42,624,000** (equivalent to approximately **HK$46,840,000**), payable in cash, and the transaction has not yet been completed[74](index=74&type=chunk) - Save as aforesaid, there were no other material events after the reporting period as of the date of this announcement[75](index=75&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and found them to be in compliance with applicable accounting standards and requirements, with adequate disclosures - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[76](index=76&type=chunk) - The Audit Committee believes that these results comply with applicable accounting standards and requirements and that adequate disclosures have been made[76](index=76&type=chunk) [Publication of Results Announcement and Interim Report](index=25&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This announcement has been published on the HKEX website and the Company's website, and the interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the aforementioned websites in due course - This announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.scholding.com)[77](index=77&type=chunk) - The interim report for the six months ended June 30, 2025, will be dispatched to the Company's shareholders and published on the aforementioned websites in due course[77](index=77&type=chunk) [Board of Directors](index=25&type=section&id=Board%20of%20Directors) As of the announcement date, the Company's Board of Directors comprises Executive Directors Mr. Wu Hongsheng, Ms. Cheung Sair O, Mr. Wu Xuyang, Non-executive Directors Ms. Wu Xumo, Mr. Yu Pui Hang, and Independent Non-executive Directors Mr. Kam Yiu Sing, Ms. Pang Oi Lan, and Mr. Wong Chun Tat - The Board of Directors includes Executive Directors Mr. Wu Hongsheng, Ms. Cheung Sair O, and Mr. Wu Xuyang[79](index=79&type=chunk) - Non-executive Directors include Ms. Wu Xumo and Mr. Yu Pui Hang[79](index=79&type=chunk) - Independent Non-executive Directors include Mr. Kam Yiu Sing, Ms. Pang Oi Lan, and Mr. Wong Chun Tat[79](index=79&type=chunk)

[Interim Results Highlights](index=1&type=section&id=Interim%20Results%20Highlights) This section summarizes the company's interim financial performance, business operations, and future strategic outlook [Performance Overview](index=1&type=section&id=Performance%20Overview) Ascent Group Holdings Limited reported significant growth in turnover and profit attributable to shareholders for the six months ended June 30, 2025 Performance Overview (HK$ thousand) | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Turnover | 1,150,000 | 1,009,000 | | Profit attributable to ordinary equity holders | 34,000 | 11,000 | | Earnings per share | 1.01 HK cents | 0.32 HK cents | [Business Review](index=1&type=section&id=Business%20Review) The Group's core foundation piling business achieved increased turnover and profit, securing multiple major contracts during the period [Foundation Piling Business](index=1&type=section&id=Foundation%20Piling%20Business) The core foundation piling business saw turnover rise to HK$1.15 billion and profit to HK$38 million, securing various residential and commercial projects Foundation Piling Business Performance (HK$ thousand) | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Foundation piling turnover | 1,150,000 | 1,009,000 | | Foundation piling profit | 38,000 | 19,000 | - The Group's major contracts include the **Sai Yee Street commercial project**, **Mei Tin**, **Shek Kong**, **Choi Shun Street**, **Kwok Shui Road**, **Tung Chung Area 50**, **Rose Street**, **Kai Tak Area 2A Site 2 housing/residential projects**, and the **Western District Married Police Quarters** and **Tseung Kwan O Integrated Market**[5](index=5&type=chunk) [Outlook](index=2&type=section&id=Outlook) Despite a challenging 2025 construction outlook, the Northern Metropolis Development Strategy is expected to create significant infrastructure and property opportunities, which the Group aims to capitalize on through continuous operational improvements - The **2025 construction industry outlook remains challenging**, with the real estate market not yet showing a significant rebound[6](index=6&type=chunk) - The government's proposed **Northern Metropolis Development Strategy**, including the **Northern Link construction**, is anticipated to be a "new engine" for Hong Kong's future, significantly boosting infrastructure and property development and providing continuous opportunities for the construction industry in the near future[6](index=6&type=chunk) - The company is committed to **continuous improvement to enhance operational efficiency and effectiveness**, preparing to seize upcoming opportunities[6](index=6&type=chunk) [Financial Review](index=2&type=section&id=Financial%20Review) This section details the Group's financial position, liquidity, financing policies, capital expenditures, asset pledges, and contingent liabilities [Financial Position, Liquidity and Financial Resources](index=2&type=section&id=Financial%20Position,%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group maintained a robust cash position, reduced liabilities, and achieved a zero gearing ratio, indicating a net cash position Financial Position (HK$ thousand) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cash on hand | 930,000 | 887,000 | | Total assets | 1,858,000 | 1,915,000 | | Net assets | 1,190,000 | 1,239,000 | | Total liabilities | 668,000 | 676,000 | | Financial liabilities | 386,000 | 433,000 | | Interest-bearing borrowings | 92,000 | 104,000 | - As of June 30, 2025, the Group's **gearing ratio was zero** due to its **net cash position**[8](index=8&type=chunk) [Financing and Financial Policies](index=2&type=section&id=Financing%20and%20Financial%20Policies) The Group maintains prudent financing policies, a robust capital structure, and ample cash flow, with HKD-denominated floating-rate borrowings and close monitoring of currency risks - The Group continues to maintain **prudent financing and financial policies**, along with a **robust and sound capital structure** and **ample cash flow**[9](index=9&type=chunk) - Surplus funds are held as **deposits with leading banks**, and borrowings are **denominated in HKD** and bear **floating interest rates**[9](index=9&type=chunk) - The Group **closely monitors currency risks** and will consider forward contracts when necessary[9](index=9&type=chunk) [Capital Expenditure and Commitments](index=2&type=section&id=Capital%20Expenditure%20and%20Commitments) The Group invested HK$4 million in machinery and equipment, with HK$3 million in capital commitments, primarily funded by internal resources Capital Expenditure and Commitments (HK$ thousand) | Indicator | Amount (HK$ thousand) | | :--- | :--- | | Investment in machinery and equipment purchases | 4,000 | | Capital commitments related to machinery and equipment | 3,000 | - **Capital expenditures were primarily funded by internal resources**[10](index=10&type=chunk) [Pledge of Assets](index=3&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged HK$103 million in office properties and HK$5 million in bank deposits as collateral for installment loans Pledged Assets (HK$ thousand) | Type of Pledged Asset | Amount (HK$ thousand) | | :--- | :--- | | Office properties | 103,000 | | Bank deposits | 5,000 | - These assets were **pledged to banks as collateral for the Group's installment loans**[11](index=11&type=chunk) [Contingent Liabilities](index=3&type=section&id=Contingent%20Liabilities) Contingent liabilities for construction project performance bonds decreased from HK$354 million to HK$288 million by June 30, 2025 Contingent Liabilities (HK$ thousand) | Type of Contingent Liability | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Guarantees for performance bonds | 288,000 | 354,000 | - The Group had **no other significant contingent liabilities** apart from those mentioned[12](index=12&type=chunk) [Dividends and Employee Information](index=3&type=section&id=Dividends%20and%20Employee%20Information) This section covers the Group's remuneration policy, employment details, interim dividend declaration, and share transfer registration closure [Remuneration Policy and Employment](index=3&type=section&id=Remuneration%20Policy%20and%20Employment) As of June 30, 2025, the Group employed 716 staff, with remuneration based on market levels and performance, offering provident funds, medical insurance, training, and share options Employee Information | Indicator | June 30, 2025 | | :--- | :--- | | Total number of employees | 716 staff | - The Group's **remuneration policy** is primarily determined based on **prevailing market salary levels** and the **performance of each business unit and relevant employees**[13](index=13&type=chunk) - The Group also provides **other benefits**, including **provident funds, medical insurance, and training**, and employees may be granted **share options** under the terms of the Group's approved share option scheme[13](index=13&type=chunk) [Interim Dividend](index=3&type=section&id=Interim%20Dividend) The Board declared an interim dividend of HK$0.02 per share for the six months ended June 30, 2025, payable on September 26, 2025 Interim Dividend per Share (HK$) | Dividend Type | Six Months Ended June 30, 2025 (HK$) | Six Months Ended June 30, 2024 (HK$) | | :--- | :--- | :--- | | Interim dividend per share | 0.02 | 0.01 | - The interim dividend is payable on **Friday, September 26, 2025**, to shareholders registered on **Friday, September 5, 2025**[14](index=14&type=chunk) [Closure of Register of Members](index=3&type=section&id=Closure%20of%20Register%20of%20Members) Share transfer registration will be suspended from September 4 to September 5, 2025, to determine interim dividend eligibility, requiring prior transfer completion - The company's **register of members will be closed** from **Thursday, September 4, 2025, to Friday, September 5, 2025** (both days inclusive)[15](index=15&type=chunk) - To qualify for the interim dividend for the six months ended June 30, 2025, all share transfer documents, together with the relevant share certificates and transfer forms, must be lodged with the company's Hong Kong share registrar no later than **4:30 p.m. on Wednesday, September 3, 2025**[15](index=15&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's consolidated statements of profit or loss, comprehensive income, and financial position for the interim period [Consolidated Statement of Profit or Loss](index=4&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group reported increased revenue of HK$1.15 billion, higher gross profit and profit for the period, and basic and diluted EPS of 1.01 HK cents Consolidated Statement of Profit or Loss (HK$ thousand) | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 1,150,289 | 1,009,389 | | Cost of sales | (1,096,159) | (978,296) | | Gross profit | 54,130 | 31,093 | | Other income and gains | 19,124 | 22,683 | | Administrative expenses | (34,924) | (37,251) | | Finance costs | (2,639) | (3,528) | | Profit before tax | 33,962 | 10,373 | | Profit for the period | 34,141 | 10,704 | | Basic earnings per share | 1.01 HK cents | 0.32 HK cents | [Consolidated Statement of Comprehensive Income](index=5&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's profit for the period was HK$34,141 thousand, with total comprehensive income reaching HK$34,834 thousand, including exchange differences Consolidated Statement of Comprehensive Income (HK$ thousand) | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the period | 34,141 | 10,704 | | Exchange differences arising on translation of overseas operations | 693 | (567) | | Total comprehensive income for the period | 34,834 | 10,137 | [Consolidated Statement of Financial Position](index=6&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total non-current assets were HK$211,567 thousand, total current assets HK$1,646,065 thousand, total current liabilities HK$582,765 thousand, and net assets HK$1,189,907 thousand Consolidated Statement of Financial Position (HK$ thousand) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total non-current assets | 211,567 | 240,577 | | Total current assets | 1,646,065 | 1,674,916 | | Total current liabilities | 582,765 | 574,479 | | Total assets less current liabilities | 1,274,867 | 1,341,014 | | Total non-current liabilities | 84,960 | 101,790 | | Net assets | 1,189,907 | 1,239,224 | | Total equity | 1,189,907 | 1,239,224 | [Notes to Financial Statements](index=8&type=section&id=Notes%20to%20Financial%20Statements) This section provides detailed notes on the Group's company information, accounting policies, segment information, revenue, other income, profit before tax, income tax, dividends, earnings per share, property, plant and equipment, trade receivables, trade payables, contingent liabilities, and commitments [Company Information](index=8&type=section&id=Company%20Information) Ascent Group Holdings Limited, a Bermuda-registered company, focuses on foundation piling, site investigation, and property development, listed on HKEX, with The Blackstone Group Inc. as its ultimate holding company - The company and its subsidiaries are primarily engaged in **foundation piling and site investigation**, as well as **property development and investment**[20](index=20&type=chunk) - The company's shares are **listed on the Main Board of The Stock Exchange of Hong Kong Limited**[20](index=20&type=chunk) - The company's **ultimate holding company is The Blackstone Group Inc.**[20](index=20&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=8&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The unaudited condensed interim financial statements comply with HKEX Listing Rules and HKAS 34, adopting revised HKFRS with no significant financial impact - The unaudited condensed interim financial statements are prepared in accordance with the **applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited** and **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** issued by the Hong Kong Institute of Certified Public Accountants[21](index=21&type=chunk) - The Group has **first applied the revised Hong Kong Financial Reporting Standards accounting standards** for the current period, which **did not have a significant financial impact** on the Group's unaudited condensed interim financial statements[22](index=22&type=chunk)[23](index=23&type=chunk) [Segment Information](index=9&type=section&id=Segment%20Information) The Group's operating segments are managed by business nature; for the six months ended June 30, 2025, foundation piling generated most revenue and segment results, with no revenue from property development and investment - The Group's **operating segments are independently organized and managed** based on their business nature and the products and services provided[24](index=24&type=chunk) Segment Performance (HK$ thousand) | Segment | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Foundation piling revenue | 1,150,289 | 1,009,389 | | Foundation piling segment results | 38,093 | 18,761 | | Property development and investment revenue | – | – | | Corporate and other revenue | 1,129 | 94 | [Revenue](index=10&type=section&id=Revenue_Note) For the six months ended June 30, 2025, total revenue was HK$1,150,289 thousand, mainly from construction services, with some contribution from machinery leasing Revenue by Source (HK$ thousand) | Revenue Source | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Construction services | 1,150,139 | 1,009,389 | | Gross rental income from machinery leasing | 150 | – | | Total | 1,150,289 | 1,009,389 | [Other Income and Gains](index=11&type=section&id=Other%20Income%20and%20Gains) For the six months ended June 30, 2025, total other income and gains were HK$19,124 thousand, mainly from interest income, scrap sales, exchange gains, and trade receivables impairment reversal Other Income and Gains (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest income | 14,266 | 14,380 | | Sales of scrap materials | 3,560 | 2,482 | | Sales of site facilities | – | 4,200 | | Insurance claims | – | 1,287 | | Government subsidies | 66 | – | | Exchange gains, net | 233 | 8 | | Reversal of impairment loss on trade receivables | 785 | 76 | | Others | 214 | 250 | | Total | 19,124 | 22,683 | [Profit Before Tax](index=11&type=section&id=Profit%20Before%20Tax) For the six months ended June 30, 2025, profit before tax was HK$33,962 thousand, influenced by depreciation of property, plant and equipment, right-of-use assets, and disposal losses Profit Before Tax Adjustments (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 25,725 | 28,930 | | Depreciation of right-of-use assets | 7,930 | 7,575 | | Loss on disposal and write-off of items of property, plant and equipment | 430 | 982 | | Reversal of impairment loss on trade receivables | (785) | (76) | | Impairment of contract assets | 23 | 109 | | Foreign exchange differences, net | (233) | (8) | [Income Tax](index=12&type=section&id=Income%20Tax) For the six months ended June 30, 2025, the Group recorded a total tax credit of HK$179 thousand, mainly from deferred tax credits offsetting Hong Kong current tax provisions Income Tax (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong current tax provision | 1,790 | 2,238 | | Current tax provision in other jurisdictions | – | 8 | | Deferred tax | (1,969) | (2,577) | | Total tax credit for the period | (179) | (331) | [Dividends](index=12&type=section&id=Dividends_Note) The Board approved an interim dividend of HK$0.02 per ordinary share, totaling HK$67,321 thousand, not recognized as a liability in the interim financial statements Dividends (HK$ thousand) | Dividend Type | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interim dividend (HK$0.02 per share) | 67,321 | 33,660 | - A final dividend of **HK$0.025 per ordinary share**, totaling approximately **HK$84,151 thousand**, for the year ended December 31, 2024, was paid on **June 24, 2025**[30](index=30&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders](index=13&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders) For the six months ended June 30, 2025, basic EPS was 1.01 HK cents, calculated from HK$34,141 thousand profit and 3,366,035,709 shares, with no dilutive effect from share options Earnings Per Share | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit for the period attributable to shareholders | HK$34,141,000 | HK$10,704,000 | | Number of ordinary shares in issue | 3,366,035,709 shares | 3,366,035,709 shares | | Basic earnings per share | 1.01 HK cents | 0.32 HK cents | - No diluted adjustment was made to the basic earnings per share as the **effect of share options was not dilutive**[31](index=31&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=Property,%20Plant%20and%20Equipment) During the period, the Group acquired HK$3,632 thousand in property, plant and equipment, and disposed of assets with a net book value of HK$443 thousand, incurring a net loss of HK$430 thousand Property, Plant and Equipment Movements (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Additions to property, plant and equipment | 3,632 | 19,894 | | Net book value of property, plant and equipment disposed of and written off | 443 | 1,161 | | Net loss on disposal and write-off | 430 | 982 | [Trade Receivables](index=13&type=section&id=Trade%20Receivables) The Group's credit policy is 30 days; total trade receivables were HK$215,213 thousand, with most due within 90 days - The Group's **credit policy** is formulated based on local industry standards, granting trade customers an **average general credit period of 30 days**[33](index=33&type=chunk) Trade Receivables by Ageing (HK$ thousand) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 90 days | 211,714 | 147,078 | | 91 to 180 days | 2,851 | 432 | | 181 to 365 days | – | – | | Over 365 days | 648 | 652 | | Total | 215,213 | 148,162 | [Trade Payables, Retention Monies Payable, Accruals and Provisions](index=14&type=section&id=Trade%20Payables,%20Retention%20Monies%20Payable,%20Accruals%20and%20Provisions) At period-end, total trade payables were HK$221,004 thousand with a 90-day repayment period, while retention monies, accruals, and provisions totaled HK$281,003 thousand Trade Payables, Retention Monies, Accruals and Provisions (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total trade payables | 221,004 | 253,154 | | Retention monies payable | 52,924 | 49,435 | | Accruals | 199,621 | 186,175 | | Provisions | 28,458 | 26,307 | | Total | 502,007 | 515,071 | - The **general repayment period for trade payables is 90 days**. For retention monies payable on construction contracts, the due date is typically within **one year after the completion of construction works**[35](index=35&type=chunk) [Contingent Liabilities](index=14&type=section&id=Contingent%20Liabilities_Note) As of June 30, 2025, contingent liabilities for construction project performance bonds were HK$287,509 thousand, a decrease from year-end 2024 Contingent Liabilities (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Guarantees in respect of performance bonds for construction projects | 287,509 | 354,156 | [Commitments](index=14&type=section&id=Commitments) At the end of the reporting period, the Group had contractual commitments, with specific amounts not detailed in the provided text - At the end of the reporting period, the Group had **contractual commitments**[36](index=36&type=chunk) [Corporate Governance](index=15&type=section&id=Corporate%20Governance) This section outlines the Group's adherence to corporate governance codes, the role of the audit committee, compliance with the model code, and securities trading activities [Corporate Governance Code](index=15&type=section&id=Corporate%20Governance%20Code) The company fully complied with the Corporate Governance Code provisions in Appendix C1 of the HKEX Listing Rules throughout the review period - During the review period and up to the date of this announcement, the company has **fully complied with the code provisions** set out in the Corporate Governance Code contained in **Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited**[38](index=38&type=chunk) [Audit Committee](index=15&type=section&id=Audit%20Committee) The Audit Committee, chaired by Mr. Li Kit Chi and comprising four independent non-executive directors, oversees the Group's financial reporting, risk management, internal controls, and compliance - The Audit Committee comprises **four members**: Mr. Li Kit Chi, Mr. Lung Tze Ming, Ms. Kwok Man Wai, and Ms. Yeung Ching, all of whom are **independent non-executive directors**. **Mr. Li Kit Chi is the Chairman of the Audit Committee**[39](index=39&type=chunk) - The primary duties of the Audit Committee are to **review and supervise the Group's financial reporting system, risk management and internal control systems**, review the Group's financial information and compliance, and provide advice and recommendations to the Board[39](index=39&type=chunk) - The Group's unaudited condensed interim financial statements for the six months ended June 30, 2025, have been **reviewed by the Audit Committee**[39](index=39&type=chunk) [Model Code](index=15&type=section&id=Model%20Code) The company adopted the Model Code for Directors' Securities Transactions, with all directors confirming full compliance during the review period - The company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** as set out in **Appendix C3 of the Listing Rules** as the code of conduct for directors' securities transactions[40](index=40&type=chunk) - Following specific enquiries, all directors confirmed that they have **fully complied with the required standards** set out in the Model Code during the review period[40](index=40&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=15&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - During the period, **neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities**[41](index=41&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佈的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公佈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。 截至 2025 年 6 月 30 日止 六個月之中期業績公佈 新鴻基有限公司（「本公司」或「新鴻基公司」）之董事會（「董事會」或「董事」）欣 然公佈本公司及其附屬公司（「本集團」）截至 2025 年 6 月 30 日止六個月之未經審 核簡明綜合業績如下： 簡明綜合損益賬 | | | 截止至六個月 | | | --- | --- | --- | --- | | | | 30/6/2025 | 30/6/2024 | | | | 未經審核 | 未經審核 | | | 附註 | 百萬港元 | 百萬港元 | | 利息收益 | | 1,715.8 | 1,817.7 | | 其他收入 | 4 | 87.4 | 59.8 | | 總收入 | | 1,803.2 | 1,877.5 | | 投資收益淨額 | 5 | 974.1 | 50.6 | | 其他收益 | 6 | 22.6 | 23.4 | | 總收益 | | ...

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。 麗 珠 醫 藥 集 團 股 份 有 限 公 司 LIVZON PHARMACEUTICAL GROUP INC.* （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股份代號：1513） 截至2025年6月30日止六個月的未經審計中期業績公告 麗珠醫藥集團股份有限公司Livzon Pharmaceutical Group Inc.*（「本公司」，連同其附屬公 司統稱為「本集團」）董事會（「董事會」）謹此宣佈本集團截至2025年6月30日止六個月的未 經審計中期業績。本業績公告列載本公司2025年中期報告全文，並符合《香港聯合交易所 有限公司證券上市規則》中有關中期業績初步公告附載的資料之要求。 本業績公告的中英文版本可在本公司網站(www.livzon.com.cn)和香港交易及結算所有限公 司（「香港交易所」）網站(www.hkexnews.hk)查閱。 2025年 ...

龍資源有限公司*（「本公司」或「龍資源」）董 事 會（「董事會」）謹 此 公 佈 本 公 司 及 其 附 屬 公 司（統 稱 為「本集團」）截 至2025年6月30日 止 期 間 的 綜 合 中 期 業 績，連 同 截 至2024年6月30日止相應期間的比較數字如下： – 1 – 龍資源有限公司 （股份代號：1712） 中期業績公告 截 至2025年6月30日 止6個 月 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 綜合中期損益表 綜合中期其他全面收益表 截 至2025年6月30日 止6個 月 | 截 | 至2025年 | 截 | 至2024年 | 6月30日 | 6月30日 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 止6個 | 月 | 止6個 | 月 | 千澳元 | 千澳元 | | | | | ...

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) This announcement clarifies a clerical error in the 2025 interim results announcement by Miramar Hotel and Investment Company, Limited, with all other information remaining unchanged [Company and Announcement Background](index=1&type=section&id=Company%20and%20Announcement%20Background) This announcement by Miramar Hotel and Investment Company, Limited clarifies a clerical error in its 2025 interim results announcement, emphasizing that all other information remains unchanged - Company Name: Miramar Hotel and Investment Company, Limited [2](index=2&type=chunk)[3](index=3&type=chunk) - Stock Code: **71** [3](index=3&type=chunk) - Announcement Purpose: To clarify the 2025 interim results announcement [3](index=3&type=chunk)[4](index=4&type=chunk) - Original Announcement Date: August 19, 2025 [4](index=4&type=chunk) - Announcement Nature: A supplement to the English version of the 2025 interim results announcement, to be read in conjunction with it [4](index=4&type=chunk) [Clarification of Interim Dividend Payment Date](index=1&type=section&id=Clarification%20of%20Interim%20Dividend%20Payment%20Date) This section clarifies a clerical error regarding the interim dividend payment date in the 2025 interim results announcement, correcting it to October 14, 2025 [Error Details and Correction](index=1&type=section&id=Error%20Details%20and%20Correction) The company clarifies an unintentional clerical error on page 24 of the English version of the 2025 interim results announcement regarding the interim dividend payment date, now corrected to October 14, 2025 - Error Nature: An unintentional clerical error on page 24 of the English version of the 2025 interim results announcement [4](index=4&type=chunk) - Error Content: Pertaining to the interim dividend payment date [4](index=4&type=chunk) Correction of Interim Dividend Related Dates | Item | Date | | :--- | :--- | | Dividend Payment Date | October 14, 2025 (Tuesday) | | Register of Members Closing Date | September 26, 2025 (Friday) at close of business | | Share Transfer Registration Deadline | September 26, 2025 (Friday) | | Share Transfer Document Submission Deadline | September 25, 2025 (Thursday) at 4:30 p.m. | - Impact: All other information contained in the 2025 interim results announcement remains unchanged, except for the clarification above [4](index=4&type=chunk) [Board of Directors Information](index=1&type=section&id=Board%20of%20Directors%20Information) This section lists the composition of the Board of Directors of Miramar Hotel and Investment Company, Limited at the time of the announcement [Board Composition](index=1&type=section&id=Board%20Composition) At the time of this announcement, the Board of Directors of Miramar Hotel and Investment Company, Limited comprises executive, non-executive, and independent non-executive directors, signed by Company Secretary Lai Ho Man - Announcement Date: August 20, 2025 [5](index=5&type=chunk) - Company Secretary: Lai Ho Man [5](index=5&type=chunk) - Executive Directors: Dr. Lee Ka Shing, Dr. Lam Ko Yin, Mr. Tang Yat Sun, Mr. Ho Hou Chiang [5](index=5&type=chunk) - Non-executive Directors: Dr. Fung Yuk Bun, Mr. Cheng Ka On [5](index=5&type=chunk) - Independent Non-executive Directors: Dr. Chung Wai Ming, Mr. Yeung Ping Leung, Mr. Leung Cheung Biu, Mr. Woo King Cheong, Mr. Au Siu Kee, Mr. Sin Nga Yan, Ms. Wong Yeung Fong [5](index=5&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company experienced a significant revenue decline but achieved substantial profit growth, driven by improved gross margin and foreign exchange gains Financial Summary for the Six Months Ended June 30 | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 314,314 | 580,361 | -45.8 | | Gross Margin | 20.5% | 16.4% | 410bps | | Profit for the Period | 26,033 | 499 | 5,117.0 | | Profit/(Loss) Attributable to Shareholders | 26,308 | (2,504) | 1,150.6 | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue significantly decreased by 45.8%, yet profit for the period and attributable profit grew substantially due to foreign exchange gains and improved gross margin Consolidated Statement of Profit or Loss Summary (For the Six Months Ended June 30) | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Revenue | 314,314 | 580,361 | | Cost of Sales | (249,803) | (484,998) | | Gross Profit | 64,511 | 95,363 | | Other Income | 32,385 | 33,322 | | Net Other Gains/(Losses) | 54,219 | (25,686) | | Operating Profit/(Loss) | 31,773 | (17,220) | | Profit Before Tax | 27,404 | 6,575 | | Profit for the Period | 26,033 | 499 | | Profit/(Loss) Attributable to Owners of the Company | 26,308 | (2,504) | | Basic Earnings/(Loss) Per Share | RMB 0.006 | RMB (0.001) | Other Comprehensive Income Summary (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Profit for the Period | 26,033 | 499 | | Exchange differences arising from translation of financial statements of overseas subsidiaries | (38,887) | 31,039 | | Exchange differences arising from translation of equity investments measured at fair value through other comprehensive income | (11,086) | 9,439 | | Total comprehensive income for the period | (74,673) | 73,217 | | Total comprehensive income attributable to owners of the Company | (74,411) | 70,218 | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and net current assets slightly decreased, while cash and cash equivalents increased, and non-current assets saw minor reductions Consolidated Statement of Financial Position Summary (As at Period End) | Metric | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Investment properties | 255,466 | 259,110 | | Property, plant and equipment | 528,798 | 538,212 | | Interests in associates | 155,343 | 161,164 | | Other investments | 374,554 | 402,240 | | **Current Assets** | | | | Inventories | 141,496 | 175,432 | | Trade and other receivables | 531,731 | 616,205 | | Bank deposits | 100,876 | 329,600 | | Cash and cash equivalents | 1,195,507 | 937,036 | | **Current Liabilities** | | | | Trade and other payables and contract liabilities | 129,718 | 168,777 | | Bank borrowings | 36,054 | 45,953 | | **Non-current Liabilities** | | | | Bank borrowings | 12,812 | 12,050 | | **Net Assets** | | | | Total equity | 3,204,832 | 3,279,504 | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating cash flow turned positive, investing cash flow significantly increased due to decreased bank deposits, and financing cash outflow rose Condensed Consolidated Statement of Cash Flows Summary (For the Six Months Ended June 30) | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 90,995 | (80,420) | | Net cash from investing activities | 245,870 | 108,029 | | Net cash (used in)/from financing activities | (16,517) | 801 | | Net increase in cash and cash equivalents | 320,348 | 28,410 | | Cash and cash equivalents at June 30 | 1,195,507 | 1,060,434 | [Notes to the Unaudited Interim Financial Report](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) [1. Basis of Preparation](index=7&type=section&id=1.%20Basis%20of%20Preparation) This interim financial report is prepared under HKEX Listing Rules and HKAS 34, reviewed by the audit committee, with accounting policies consistent with 2024 annual financial statements, except for expected changes - The report is prepared in accordance with the HKEX Listing Rules and HKAS 34 issued by the HKICPA, and has been reviewed by the audit committee[11](index=11&type=chunk) - Accounting policies are consistent with those adopted in the 2024 annual financial statements, except for expected changes to be reflected in the 2025 annual financial statements[11](index=11&type=chunk) [2. Changes in Accounting Policies](index=7&type=section&id=2.%20Changes%20in%20Accounting%20Policies) HKFRS revisions effective this period have no material impact on the group's results or financial position, and no new standards not yet effective have been adopted - Certain amendments issued by the HKICPA have no material impact on the group's results or financial position for the current or prior accounting periods[13](index=13&type=chunk) - The group has not early adopted any new standards or interpretations that are not yet effective for the current accounting period[14](index=14&type=chunk) [3. Segment Reporting](index=7&type=section&id=3.%20Segment%20Reporting) The group operates in high-end consumer support and commodity trading segments, both managed by region and product line, experiencing declines in revenue and gross profit, with commodity trading seeing a significant drop - The group's business is divided into two reportable segments: "High-end Consumer Support" and "Commodity Trading," managed by geographical area and product/service lines[15](index=15&type=chunk)[18](index=18&type=chunk) Reportable Segment Revenue and Gross Profit (For the Six Months Ended June 30) | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue from external customers** | | | | | High-end Consumer Support | 248,095 | 352,339 | -29.6% | | Commodity Trading | 66,219 | 228,022 | -71.0% | | **Reportable segment gross profit** | | | | | High-end Consumer Support | 55,343 | 68,915 | -19.7% | | Commodity Trading | 9,168 | 26,448 | -65.3% | | **Reportable segment assets (As at period end)** | | | | | High-end Consumer Support | 62,042 | 69,420 | -10.6% | | Commodity Trading | 79,454 | 106,012 | -25.1% | Reconciliation of Consolidated Profit or Loss (For the Six Months Ended June 30) | Metric | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Total reportable segment revenue | 369,549 | 668,033 | | Elimination of inter-segment revenue | (55,235) | (87,672) | | Consolidated revenue | 314,314 | 580,361 | | Total reportable segment gross profit | 64,511 | 95,363 | | Consolidated profit before tax | 27,404 | 6,575 | [4. Other Income and Net Other Gains/(Losses)](index=10&type=section&id=4.%20Other%20Income%20and%20Net%20Other%20Gains%2F(Losses)) Other income slightly decreased, but net other gains shifted from a loss to a significant gain, primarily due to foreign exchange and fair value gains on financial assets held for trading Other Income (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Interest income | 18,918 | 20,690 | | Rental income | 1,071 | 1,441 | | Government grants | 1,931 | 552 | | Dividend income from other investments | 8,876 | 3,955 | | Others | 1,589 | 6,684 | | **Total** | **32,385** | **33,322** | Net Other Gains/(Losses) (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Net foreign exchange gains/(losses) | 45,420 | (26,269) | | Net loss on disposal of property, plant and equipment | (88) | (26) | | Net gain on disposal of a subsidiary | 1 | – | | Fair value gains on financial assets held for trading | 8,886 | 609 | | **Total** | **54,219** | **(25,686)** | [5. Profit Before Tax](index=11&type=section&id=5.%20Profit%20Before%20Tax) Profit before tax significantly increased, accompanied by a decrease in finance costs and depreciation expenses Finance Costs (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Interest on bank borrowings | 947 | 2,036 | | Interest on lease liabilities | 386 | 327 | | Bank charges | 173 | 356 | | **Total** | **1,506** | **2,719** | Other Items (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Amortisation | 441 | 257 | | Depreciation – investment properties and property, plant and equipment | 21,322 | 28,177 | | Depreciation – right-of-use assets | 4,872 | 4,638 | | Expenses relating to short-term leases and leases of low-value assets | 1,273 | 1,012 | [6. Income Tax Expense](index=12&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense significantly decreased year-on-year, primarily due to reductions in PRC income tax and deferred tax Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Current tax | | | | Hong Kong Profits Tax | – | 26 | | PRC Enterprise Income Tax | 1,131 | 3,674 | | Deferred tax | 240 | 2,376 | | **Total** | **1,371** | **6,076** | - Hong Kong Profits Tax provision is calculated at an estimated annual effective tax rate of **16.5%** (with **8.25%** for certain qualifying corporations), while other overseas subsidiaries are taxed at their respective estimated annual effective tax rates applicable in their countries or jurisdictions[29](index=29&type=chunk) [7. Earnings/(Loss) Per Share](index=12&type=section&id=7.%20Earnings%2F(Loss)%20Per%20Share) Basic earnings per share transitioned from a loss to a profit, with diluted earnings per share remaining identical due to the absence of dilutive potential ordinary shares Basic Earnings/(Loss) Per Share (For the Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) attributable to owners of the Company | RMB 26,308,000 | RMB (2,504,000) | | Weighted average number of ordinary shares in issue | 4,404,018,959 shares | 4,404,018,959 shares | | Basic earnings/(loss) per share | RMB 0.006 | RMB (0.001) | - For the periods ended June 30, 2025 and 2024, there were no dilutive potential ordinary shares, thus diluted earnings/(loss) per share is identical to basic earnings/(loss) per share[31](index=31&type=chunk) [8. Property, Plant and Equipment](index=12&type=section&id=8.%20Property%2C%20Plant%20and%20Equipment) The group recognized additions to right-of-use assets of RMB 4,665,000, while acquisitions of self-owned assets significantly decreased to RMB 3,208,000 - For the six months ended June 30, 2025, the group entered into several lease agreements for office use, recognizing additions to right-of-use assets of **RMB 4,665,000** (2024: RMB 3,578,000)[32](index=32&type=chunk) - For the six months ended June 30, 2025, the group primarily acquired machinery items and construction in progress at a cost of **RMB 3,208,000** (2024: RMB 35,083,000), representing a significant year-on-year decrease[33](index=33&type=chunk) [9. Interests in Associates](index=13&type=section&id=9.%20Interests%20in%20Associates) As of June 30, 2025, interests in associates amounted to RMB 155,343,000, a decrease from RMB 161,164,000 as of December 31, 2024 Interests in Associates (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Unlisted corporate entities | 155,343 | 161,164 | [10. Other Investments](index=13&type=section&id=10.%20Other%20Investments) Total other investments decreased, comprising equity investments measured at fair value through other comprehensive income (listed and unlisted funds) and listed securities measured at fair value through profit or loss Equity Investments Measured at Fair Value Through Other Comprehensive Income (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Listed securities | 163,204 | 177,779 | | Unlisted fund investments | 211,350 | 224,461 | | **Total** | **374,554** | **402,240** | Equity Investments Measured at Fair Value Through Profit or Loss (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Listed securities | 20,546 | 12,181 | [11. Inventories](index=14&type=section&id=11.%20Inventories) As of June 30, 2025, total inventories decreased to RMB 141,496,000 from RMB 175,432,000, mainly due to a reduction in finished goods and merchandise Composition of Inventories (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Raw materials | 18,990 | 17,493 | | Work in progress | 43,764 | 45,001 | | Finished goods and merchandise | 78,742 | 112,938 | | **Total** | **141,496** | **175,432** | [12. Trade and Other Receivables](index=14&type=section&id=12.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables decreased to RMB 531,731,000 from RMB 616,205,000, primarily due to a significant reduction in trade receivables within 3 months Ageing Analysis of Trade and Other Receivables (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | **Current Assets** | | | | Trade receivables within 3 months | 107,863 | 243,018 | | Trade receivables over 3 months but less than 12 months | 268,214 | 213,785 | | Trade receivables over 12 months | 1,259 | 1,846 | | Other receivables less loss allowance | 73,897 | 71,969 | | PRC VAT recoverable | 21,576 | 28,860 | | Interest receivables | 9,186 | 5,861 | | Dividend receivables | 495 | – | | Prepayments and deposits | 49,241 | 50,866 | | **Total current assets** | **531,731** | **616,205** | | **Non-current Assets** | | | | Prepayments and deposits | 8,708 | 7,894 | | **Total** | **540,439** | **624,099** | - Trade receivables are due within **30 to 360 days** from the invoice date, and all current trade and other receivables are expected to be recovered within one year[40](index=40&type=chunk) [13. Bank Deposits](index=15&type=section&id=13.%20Bank%20Deposits) This note provides the table title but does not include specific data [14. Cash and Cash Equivalents](index=15&type=section&id=14.%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the group's cash and cash equivalents comprise cash at bank and cash on hand - As of June 30, 2025, and December 31, 2024, all cash and cash equivalents presented in the consolidated statement of financial position represent cash at bank and cash on hand[43](index=43&type=chunk) [15. Trade and Other Payables and Contract Liabilities](index=15&type=section&id=15.%20Trade%20and%20Other%20Payables%20and%20Contract%20Liabilities) As of June 30, 2025, total trade and other payables and contract liabilities decreased to RMB 129,718,000 from RMB 168,777,000 as of December 31, 2024 Ageing Analysis of Trade and Other Payables and Contract Liabilities (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Trade payables within 1 month | 45,878 | 66,119 | | Trade payables over 1 month but less than 3 months | 10,500 | 20,738 | | Trade payables over 3 months but less than 12 months | 6,006 | 4,502 | | Trade payables over 12 months | 5,887 | 6,475 | | Trade payables | 68,271 | 97,834 | | Contract liabilities | 23,863 | 29,748 | | Other payables and accrued expenses | 37,584 | 41,195 | | **Total** | **129,718** | **168,777** | [16. Bank Borrowings](index=15&type=section&id=16.%20Bank%20Borrowings) As of June 30, 2025, total bank borrowings decreased to RMB 48,866,000 from RMB 58,003,000 as of December 31, 2024, with some loans secured by land and buildings Bank Borrowings (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Bank borrowings repayable within one year or on demand – secured | 36,054 | 45,953 | | Bank borrowings repayable after one year – secured | 12,812 | 12,050 | | **Total** | **48,866** | **58,003** | - As of June 30, 2025, bank facilities of certain subsidiaries were secured by land and buildings with an aggregate carrying amount of **RMB 177,443,000** (December 31, 2024: RMB 170,687,000)[45](index=45&type=chunk) [17. Capital, Reserves and Dividends](index=16&type=section&id=17.%20Capital%2C%20Reserves%20and%20Dividends) The Board did not recommend or declare an interim dividend for the six months ended June 30, 2025, and the share award scheme expired on March 25, 2025, with no shares granted - The Board did not recommend or declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[46](index=46&type=chunk) - The share award scheme expired on the tenth anniversary of its adoption date, March 25, 2025, and no shares were granted under the scheme during the periods ended June 30, 2025 and 2024[48](index=48&type=chunk) [18. Commitments](index=16&type=section&id=18.%20Commitments) As of June 30, 2025, capital commitments contracted but not provided for in the interim financial report amounted to RMB 13,285,000 Capital Commitments (As at Period End) | Item | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Contracted | 13,285 | 13,184 | [19. Material Related Party Transactions](index=16&type=section&id=19.%20Material%20Related%20Party%20Transactions) Revenue from shop design and decoration services to Shengshi Group decreased, while new income from other goods and services was added, and purchases from associates were nil Material Related Party Transactions (For the Six Months Ended June 30) | Item | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Shop design and decoration services provided to Shengshi Group | 7,611 | 11,257 | | Other goods and services provided to Shengshi Group | 1,073 | – | | Purchase of goods and services from associates | – | 38,660 | | Rental and electricity income from associates | 28 | 28 | [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [I. Financial Review](index=17&type=section&id=I.%20Financial%20Review) Despite significant revenue decline, the group achieved substantial profit growth due to improved gross margin and foreign exchange gains, maintaining a robust financial position with a zero net debt-to-equity ratio Revenue Distribution (For the Six Months Ended June 30) | Business Segment | 2025 (RMB in thousands) | 2025 (%) | 2024 (RMB in thousands) | 2024 (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | High-end Consumer Support | 248,095 | 78.9 | 352,339 | 60.7 | -29.6 | | Commodity Trading | 66,219 | 21.1 | 228,022 | 39.3 | -71.0 | | **Total** | **314,314** | **100** | **580,361** | **100** | **-45.8** | - Gross profit was approximately **RMB 64,511,000** (a year-on-year decrease of **32.4%**), with a gross margin of approximately **20.5%** (a year-on-year increase of **4.1 percentage points**), primarily due to lower sales costs in high-end consumer support and changes in the commodity portfolio[54](index=54&type=chunk) - Profit for the period was **RMB 26,033,000** (a year-on-year increase of **5,117.0%**), and profit attributable to owners of the Company was **RMB 26,308,000** (a year-on-year increase of **1,150.6%**), mainly due to foreign exchange gains generated by operating units from exchange rate fluctuations[55](index=55&type=chunk) - As of June 30, 2025, the group's total equity reached **RMB 3,204,832,000**, net current assets were **RMB 1,848,144,000**, and cash and cash equivalents plus bank deposits totaled **RMB 1,296,383,000**[56](index=56&type=chunk)[61](index=61&type=chunk) - The net debt-to-equity ratio was **zero**, with total bank borrowings of **RMB 48,866,000**, approximately **72%** denominated in RMB and **28%** in New Taiwan Dollars[56](index=56&type=chunk)[57](index=57&type=chunk) - The group actively monitors and manages foreign exchange risks, implementing foreign currency hedging policies for significant foreign currency exposures[58](index=58&type=chunk) - As of June 30, 2025, the group had no significant contingent liabilities[60](index=60&type=chunk) - Current liabilities amounted to approximately **RMB 176,118,000**, comprising bank borrowings, trade and other payables[62](index=62&type=chunk) - The capital structure includes **4,404,018,959** issued shares and accumulated profits in reserves of **RMB 3,113,909,000**[63](index=63&type=chunk) - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, nor any other significant investments held during the review period[64](index=64&type=chunk)[65](index=65&type=chunk) [II. Business Review](index=20&type=section&id=II.%20Business%20Review) The group's business focuses on high-end consumer product manufacturing, international commodity trading, and international shipping, with all segments facing declining sales and profits due to market pressures and price fluctuations - The group's business primarily focuses on manufacturing high-end consumer support products, building high-end consumer service platforms, and international commodity trading with related supply chain services[66](index=66&type=chunk) - The high-end consumer support business continues to face pressure, with both sales performance and profit declining year-on-year, but the group is responding through innovation, expanding business models, acquiring new clients, developing new products, and enhancing technological innovation[67](index=67&type=chunk) - In the second half of the year, the high-end consumer support business will further strengthen industry management, R&D, and innovation, expanding into other high-end lifestyle product areas such as jewelry, cosmetics, and mobile phones, and extending commercial space beautification services to living space beautification services[68](index=68&type=chunk) - International commodity trading business saw a decline in both sales and gross profit compared to the same period last year, but still maintained positive revenue, with plans to build a bulk cargo transit logistics park in Mexico[69](index=69&type=chunk) - International shipping business experienced declines in both revenue and profit due to fluctuations in the global dry bulk shipping market, with plans to intensify expansion into the Chinese shipping market and actively develop new clients, cargo types, and routes in the second half of the year[71](index=71&type=chunk) [III. Social Responsibility and Human Resources](index=21&type=section&id=III.%20Social%20Responsibility%20and%20Human%20Resources) The group upholds a "people-oriented" core value, employing 1,285 staff as of June 30, 2025, with decreased employee costs, emphasizing human resource development, competitive compensation, and environmental protection for sustainable development - The group consistently advocates a "people-oriented" core value, promoting a corporate spirit of "mutual respect, courage to take responsibility, close collaboration, and continuous innovation"[72](index=72&type=chunk) Employee Count and Costs (For the Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Employee Count | 1,285 employees | 1,409 employees | | Employee Costs | RMB 105,981,000 | RMB 110,651,000 | - The group values human resource development and value creation, employing a standardized recruitment system, investing resources in various training programs, and offering competitive compensation and incentive mechanisms[72](index=72&type=chunk) - The group prioritizes environmental protection for sustainable development, implements strict quality inspection processes for products to meet national quality standards, and strictly adheres to national regulations for pollutant reporting[74](index=74&type=chunk) [IV. Future Outlook](index=22&type=section&id=IV.%20Future%20Outlook) Despite a complex international economic environment, the group remains confident in China's long-term economic development, planning to cautiously advance international trade and shipping, and expand high-end consumer support services into more lifestyle product areas - The group remains confident in the long-term sustainable development of the PRC economy, despite facing challenges from international political and economic instability and insufficient domestic demand[75](index=75&type=chunk) - In the second half of the year, the group will continue to adhere to the principle of "steady and long-term, sustainable operation," cautiously and prudently advancing international trade business, and continuously expanding its closely related international shipping business, striving to become an important player in the international shipping supply chain[75](index=75&type=chunk) - The group will adjust the production of high-end watch support products in response to market demand, while pursuing limited diversification, expanding high-end consumer support production to include jewelry, eyewear, cosmetics, mobile phones, and other 3C products, and extending commercial space beautification services to living space beautification services[75](index=75&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) [Dividend Distribution](index=22&type=section&id=Dividend%20Distribution) The Board did not recommend or declare an interim dividend for the six months ended June 30, 2025 - The Board did not recommend or declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[76](index=76&type=chunk) [Share-linked Agreements](index=22&type=section&id=Share-linked%20Agreements) The share award scheme expired on March 25, 2025, with no awards granted, and the share option scheme also expired on May 14, 2025, with no options granted - The share award scheme expired on the tenth anniversary of its adoption date, March 25, 2025, and no award shares were granted by the company during the review period[83](index=83&type=chunk)[82](index=82&type=chunk) - The share option scheme expired on May 14, 2025, and the company did not grant any share options under the scheme during the review period[86](index=86&type=chunk)[85](index=85&type=chunk) [Purchase, Sale or Redemption of Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) During the review period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the review period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities (including the sale of treasury shares)[87](index=87&type=chunk) [Compliance with Corporate Governance Code](index=24&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with the Corporate Governance Code, except for the combined Chairman and CEO roles held by Mr. Zhang Yonglin, which the Board believes maintains sufficient balance of power - The company complied with the Corporate Governance Code during the review period, except for a deviation from provision C.2.1, where the roles of Chairman and Chief Executive Officer were not separated, both held by Mr. Zhang Yonglin[88](index=88&type=chunk) - The Board believes that despite the combined roles of Chairman and CEO, all significant decisions are made after consultation with and, where applicable, by the Board, which includes three independent non-executive directors, ensuring sufficient balance of power and safeguarding scientific decision-making[88](index=88&type=chunk) [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) - Except for matters disclosed in this announcement, no events with a material impact on the group have occurred from the end of the review period up to the date of this announcement[89](index=89&type=chunk) [Acknowledgements](index=25&type=section&id=Acknowledgements) - The Directors take this opportunity to express their gratitude to all shareholders for their continuous strong support, and to all employees of the group for their efforts and contributions during the review period[90](index=90&type=chunk) - As of the date of this announcement, the executive directors of the company are Mr. Zhang Yonglin (Chairman) and Mr. Li Shuzhong; the non-executive director is Mr. Shi Zhongyang; and the independent non-executive directors are Mr. Cai Jianmin, Mr. Liu Xueling, and Ms. Qian Weiqing[90](index=90&type=chunk)