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所產生或因依賴該等內容而引致的任何損失承擔任何 責 任。 YSB Inc. 藥師幫股份有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：9885） 截 至2025年6月30日止六個月 中期業績公告 藥師幫股份有限公司（「本公司」，連 同 其 附 屬 公 司 及 綜 合 聯 屬 實 體 統 稱「本 集 團」）董 事（「董 事」）會（「董事會」）欣然宣佈本集團截至2025年6月30日止六個月（「報 告 期」）的 未 經 審 計 中 期 業 績。該 等 中 期 業 績 已 由 本 公 司 審 計 委 員 會（「審計委員 會」）及本公司審計師德勤 • 關黃陳方會計師行（「審計師」）審 閱。 除 另 有 界 定 者 外，本 公 告 所 用 詞 彙 與 本 公 司 日 期 為2023年6月15日的招股章程 （「招股章程」）所 界 定 者 具 相 同 涵 義。 摘 要 | 至6月3 ...

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。 眾安在綫財產保險股份有限公司 ZHONGAN ONLINE P & C INSURANCE CO., LTD.* （於中華人民共和國註冊成立的股份有限公司，並以「ZA Online Fintech P & C」在香港經營業務） （股份代號：6060） 截 至 2025 年 6 月 30 日止六個月的 中期業績公告 眾安在綫財產保險股份有限公司（「本公司」）董事會謹此宣佈本公司及其子公司（「本集團」）截至 2025年6月30日止六個月的未經審計中期業績連同截至2024年6月30日止六個月的比較數字。本 公告載有本公司2025年中期報告全文，乃符合香港聯合交易所有限公司證券上市規則中有關中期 業績初步公告附載資料的相關要求。 承董事會命 眾安在綫財產保險股份有限公司 董事長 尹海 中國上海，2025年8月20日 於本公告日期，本公司董事會包括兩名執行董事姜興先生及李高峰先生，五名非執行董事歐亞平先生、史良洵先 ...

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。 Vincent Medical Holdings Limited 永勝醫療控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1612） 截至2025年6月30日止六個月之 中期業績公告 摘要 1 本集團交出過去四年來最強勁的中期業績，截至2025年6月30日止六個月 （「2025年上半年」或「本期間」）錄得收入增長達18.1%至449.4百萬港元。 本期間的本公司擁有人應佔溢利增加55.1%至51.6百萬港元（截至2024年6月 30日止六個月（「2024年上半年」）：33.3百萬港元）。 2025年上半年表現強勁主要受成像一次性產品分部所得收入上升28.6%所 帶動。 呼吸產品分部的收入回復增長，幅度更足以抵銷有餘來自骨科支護復康器 具分部貢獻的減少。 在規模經濟效益擴大、營運效率提升及存貨撥備減少的因素支持下，毛利 增加33.4%至159.0百萬港元。毛利率由31.3%改善至35.4%。 ...

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，並明確表示概不會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。 Lepu Biopharma Co., Ltd. 樂普生物科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2157） 截至2025年6月30日止六個月的 中期業績公告 董事會欣然宣佈本集團截至2025年6月30日止六個月的未經審核綜合中期業績， 連同2024年同期之比較數字。 財務摘要 1 － 收入顯著增加：截至2025年6月30日止六個月的收入約為人民幣465.9百萬 元（包括來自業務開發活動的許可收入約人民幣309.0百萬元以及來自銷售 普佑恆® （普特利單抗注射液）的收入約人民幣150.6百萬元），約為2024年同 期收入的3.5倍（截至2024年6月30日止六個月：人民幣133.3百萬元）。 － 首次實現盈利：截至2025年6月30日止六個月的利潤約為人民幣29.3百萬元 （截至2024年6月30日止六個月的虧損：人民幣197.0百萬元）。 － 研發開支持續減少：截至2 ...

[Company Information and Report Overview](index=1&type=section&id=Company%20Information%20%26%20Report%20Overview) [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) Kingsoft Corporation Limited (Stock Code: 03888) announced its unaudited results for the three and six months ended June 30, 2025, detailing its incorporation in 1998 and HKEX listing in 2007 - Kingsoft Corporation Limited (Stock Code: **03888**) announced its unaudited results for the three and six months ended **June 30, 2025**[2](index=2&type=chunk) - The company was incorporated on **March 20, 1998**, re-domiciled to the Cayman Islands on **November 15, 2005**, and listed on the Main Board of the Hong Kong Stock Exchange on **October 9, 2007**[10](index=10&type=chunk) [Basis of Preparation and Accounting Policies](index=9&type=section&id=Basis%20of%20Preparation%20%26%20Accounting%20Policies) The interim consolidated financial statements are prepared under IAS 34, to be read with the 2024 annual statements, with IAS 21 (Amendment) adopted without significant impact - The condensed interim consolidated financial statements are prepared in accordance with **International Accounting Standard 34** and should be read in conjunction with the annual consolidated financial statements as of **December 31, 2024**[12](index=12&type=chunk) - The group first adopted **International Accounting Standard 21 (Amendment) 'Lack of Exchangeability'** this period, which had **no significant financial impact** on the Group[15](index=15&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, total revenue reached **RMB 4,645.4 million**, growing **0.75%**, while profit attributable to owners of the parent increased **20.41%** to **RMB 816.3 million** Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 4,645,407 | 4,610,641 | +0.75% | | Operating Profit | 984,111 | 1,395,615 | -29.50% | | Profit Before Tax | 1,360,710 | 1,288,837 | +5.57% | | Profit for the Period | 1,208,126 | 1,198,130 | +0.83% | | Profit Attributable to Owners of the Parent | 816,314 | 677,923 | +20.41% | | Basic Earnings Per Share (RMB Yuan) | 0.60 | 0.51 | +17.65% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income decreased **8.00%** to **RMB 1,130.1 million**, while comprehensive income attributable to owners of the parent increased **5.79%** to **RMB 747.5 million** Condensed Consolidated Statement of Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 1,208,126 | 1,198,130 | +0.83% | | Other Comprehensive Income/(Loss) for the Period (After Tax) | (77,983) | 29,902 | -361.46% | | Total Comprehensive Income for the Period | 1,130,143 | 1,228,032 | -8.00% | | Attributable to Owners of the Parent | 747,489 | 706,576 | +5.79% | | Non-controlling Interests | 382,654 | 521,456 | -26.62% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets less current liabilities increased **9.7%** to **RMB 32,429.6 million**, with net assets growing **9.77%** to **RMB 31,189.0 million** compared to year-end 2024 Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 8,557,580 | 8,044,078 | +6.38% | | Total Current Assets | 28,907,624 | 30,240,397 | -4.39% | | Total Current Liabilities | 5,035,584 | 8,716,614 | -42.23% | | Net Current Assets | 23,872,040 | 21,523,783 | +10.91% | | Net Assets | 31,189,009 | 28,412,402 | +9.77% | | Total Equity | 31,189,009 | 28,412,402 | +9.77% | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the parent increased **11.9%** to **RMB 25,124.0 million**, with total comprehensive income for the period at **RMB 1,130.1 million** - As of June 30, 2025, total equity attributable to owners of the parent amounted to **RMB 25,123,970 thousand**, an increase of **11.9%** from **RMB 22,456,276 thousand** as of January 1, 2025[7](index=7&type=chunk) - Total comprehensive income for the period was **RMB 1,130,143 thousand**[7](index=7&type=chunk) - In the first half of 2025, the company issued new shares through the conversion of convertible bonds and conducted share repurchases[7](index=7&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities decreased **51.62%** to **RMB 664.9 million**, while investing activities generated **RMB 1,917.5 million**, with period-end cash and cash equivalents at **RMB 4,592.7 million** Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 664,862 | 1,374,262 | -51.62% | | Net Cash Flow from Investing Activities (Generated From / Used In) | 1,917,486 | (6,787,751) | Turnaround to positive | | Net Cash Flow Used in Financing Activities | (1,676,506) | (869,442) | +92.82% | | Net Increase/(Decrease) in Cash and Cash Equivalents | 905,842 | (6,282,931) | Turnaround to positive | | Cash and Cash Equivalents at End of Period | 4,592,697 | 2,430,983 | +89.09% | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements) [Operating Segments](index=11&type=section&id=Operating%20Segments) The Group operates in two reportable segments: office software and services, and entertainment software and others, with H1 2025 revenues of **RMB 2,657.1 million** and **RMB 1,988.3 million** respectively - The Group's business is divided into two reportable operating segments: **office software and services** (WPS Office, WPS 365, WPS AI, etc.) and **entertainment software and others** (game development and services)[13](index=13&type=chunk)[20](index=20&type=chunk) Operating Segment Revenue and Performance (For the six months ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Performance (RMB thousands) | 2024 Performance (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Office Software and Services | 2,657,122 | 2,413,079 | 656,834 | 640,228 | | Entertainment Software and Others | 1,988,285 | 2,197,562 | 326,435 | 753,612 | | **Total** | **4,645,407** | **4,610,641** | **983,269** | **1,393,840** | [Profit Before Tax Details](index=12&type=section&id=Profit%20Before%20Tax%20Details) For the six months ended June 30, 2025, profit before tax was **RMB 1,360.7 million**, with significant deductions including **RMB 2,160.5 million** for employee benefits and **RMB 54.3 million** for interest expenses Key Deductions from Profit Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Employee Benefit Expenses | 2,160,535 | 1,997,549 | | Depreciation of Property, Plant and Equipment | 80,507 | 75,609 | | Interest on Lease Liabilities, Convertible Bonds and Other Liabilities | 54,345 | 88,334 | | Impairment of Trade and Other Receivables | 3,199 | 1,597 | [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense significantly increased to **RMB 152.6 million**, primarily due to deferred tax expense from the deemed disposal of Kingsoft Cloud Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax | 109,536 | 210,060 | | Deferred Income Tax | 43,048 | (119,353) | | **Income Tax Expense** | **152,584** | **90,707** | - The increase in income tax expense was primarily due to the accrued deferred tax expense arising from the **deemed disposal of Kingsoft Cloud** in the **second quarter of 2025**[44](index=44&type=chunk)[56](index=56&type=chunk) [Dividends Policy](index=13&type=section&id=Dividends%20Policy) The **2024 final dividend of HKD 0.15 per share** was paid on **May 29, 2025**, totaling **RMB 190.5 million**, while no interim dividend was declared for the first half of 2025 - The **2024 final dividend of HKD 0.15 per ordinary share** was approved by shareholders on **May 29, 2025**, with an actual payment of **RMB 190.5 million**[24](index=24&type=chunk) - The Board has resolved **not to declare any interim dividend** for the six months ended **June 30, 2025**[24](index=24&type=chunk) [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share increased to **RMB 0.60**, and diluted earnings per share rose to **RMB 0.59**, both up from the prior period Earnings Per Share (For the six months ended June 30) | Indicator | 2025 (RMB Yuan) | 2024 (RMB Yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 0.60 | 0.51 | +17.65% | | Diluted Earnings Per Share | 0.59 | 0.49 | +20.41% | - Basic earnings per share are calculated based on the profit for the period attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares outstanding[25](index=25&type=chunk) [Trade Receivables and Payables](index=15&type=section&id=Trade%20Receivables%20and%20Payables) As of June 30, 2025, total trade receivables were **RMB 732.5 million**, while total trade payables stood at **RMB 594.7 million** Trade Receivables Aging Analysis (As of June 30) | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 224,190 | 211,974 | | 31 to 60 days | 76,683 | 81,886 | | 61 to 90 days | 18,688 | 42,522 | | 91 to 365 days | 213,316 | 162,367 | | 1 to 2 years | 129,710 | 141,409 | | Over 2 years | 69,950 | 57,912 | | **Total** | **732,537** | **698,070** | Trade Payables Aging Analysis (As of June 30) | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 224,487 | 165,181 | | 31 to 60 days | 110,535 | 69,328 | | 61 to 90 days | 35,342 | 44,993 | | 91 to 365 days | 149,500 | 129,407 | | Over 1 year | 74,848 | 69,472 | | **Total** | **594,712** | **478,381** | [Convertible Bonds](index=16&type=section&id=Convertible%20Bonds) The **HKD 3,100 million** five-year convertible bonds issued in 2020 matured and were fully redeemed on **April 29, 2025**, with **HKD 2,274 million** converted to shares and **HKD 826 million** redeemed - The **HKD 3,100 million** five-year convertible bonds issued in **2020** matured and were **fully redeemed** on **April 29, 2025**[29](index=29&type=chunk)[30](index=30&type=chunk) - As of April 17, 2025, approximately **HKD 2,274 million** in principal was converted into **65,401,193 shares** at **HKD 34.77 per share**[30](index=30&type=chunk) - The remaining outstanding convertible bonds of approximately **HKD 826 million** were redeemed by the company[30](index=30&type=chunk) [Financial Summary and Performance Analysis](index=17&type=section&id=Financial%20Summary%20%26%20Performance%20Analysis) [Q2 2025 Performance Comparison](index=18&type=section&id=Q2%202025%20Performance%20Comparison) In Q2 2025, total revenue declined **7%** to **RMB 2,307.4 million**, with office software revenue up **14%** and network games down **26%**, while profit attributable to owners of the parent increased **35.3%** to **RMB 532.4 million** Q2 2025 Key Financial Data (Year-on-Year/Quarter-on-Quarter) | Indicator | Q2 2025 (RMB thousands) | Q2 2024 (RMB thousands) | Year-on-Year Change (%) | Q1 2025 (RMB thousands) | Quarter-on-Quarter Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 2,307,412 | 2,473,766 | -6.73% | 2,337,995 | -1.31% | | Office Software and Services Revenue | 1,355,653 | 1,187,730 | +14.14% | 1,301,469 | +4.16% | | Network Games and Other Revenue | 951,759 | 1,286,036 | -25.99% | 1,036,526 | -8.18% | | Operating Profit | 382,658 | 794,037 | -51.84% | 601,453 | -36.38% | | Profit Attributable to Owners of the Parent | 532,440 | 393,353 | +35.36% | 283,874 | +87.56% | [Q2 Revenue Analysis](index=20&type=section&id=Q2%20Revenue%20Analysis) - In **Q2 2025**, total revenue was **RMB 2,307.4 million**, a **7% year-on-year decrease** and a **1% quarter-on-quarter decrease**[35](index=35&type=chunk) - Office software and services business revenue increased by **14% year-on-year**, primarily due to the growth of **WPS 365** and **WPS personal business**, driven by enhanced product capabilities, industry penetration for WPS 365, and improved AI features and user experience for WPS personal business[35](index=35&type=chunk) - Network games and other business revenue decreased by **26% year-on-year**, mainly due to the **high base effect** of ACG game 'Snowbreak: Containment Zone' and 'Jian Wang 3' in **Q2 2024**[35](index=35&type=chunk) [Q2 Cost of Revenue and Gross Profit](index=20&type=section&id=Q2%20Cost%20of%20Revenue%20%26%20Gross%20Profit) - In **Q2 2025**, cost of revenue was **RMB 453.8 million**, a **5% year-on-year increase** and an **8% quarter-on-quarter increase**, primarily due to increased server, bandwidth, and procurement costs driven by the growth of Kingsoft Office Group's business[36](index=36&type=chunk) - Gross profit was **RMB 1,853.6 million**, a **9% year-on-year decrease**, with a gross profit margin of **80%**, down **3 percentage points** year-on-year[36](index=36&type=chunk) [Q2 Operating Expenses](index=21&type=section&id=Q2%20Operating%20Expenses) - Research and development costs were **RMB 853.8 million**, a **15% year-on-year increase**, driven by continuous investment in **AI and collaboration capabilities** and increased investment in **new game categories**[37](index=37&type=chunk) - Sales and distribution expenses were **RMB 424.0 million**, a **12% year-on-year increase**, primarily due to increased marketing and promotional activities for Kingsoft Office Group and pre-launch activities for new games[38](index=38&type=chunk) - Administrative expenses were **RMB 173.6 million**, a **12% year-on-year increase**, mainly due to increased personnel-related expenses for Kingsoft Office Group[39](index=39&type=chunk) - Share-based compensation expenses were **RMB 71.1 million**, a **13% year-on-year decrease** and a **32% quarter-on-quarter increase**, primarily due to the grant of award shares to selected employees of certain subsidiaries during the quarter[40](index=40&type=chunk) [Q2 Other Income and Associates' Results](index=21&type=section&id=Q2%20Other%20Income%20%26%20Associates'%20Results) - In **Q2 2025**, net other income was **RMB 442.9 million**, primarily due to the recognition of a gain from the **deemed disposal of Kingsoft Cloud** arising from the dilutive effect of Kingsoft Cloud's new share issuance[42](index=42&type=chunk) - Share of losses of associates was **RMB 170.1 million**, largely consistent with the prior period[43](index=43&type=chunk) [Q2 Profit Attributable to Owners of the Parent](index=21&type=section&id=Q2%20Profit%20Attributable%20to%20Parent%20Owners) - In **Q2 2025**, profit attributable to owners of the parent was **RMB 532.4 million**, a **35.3% year-on-year increase**[45](index=45&type=chunk) - Profit attributable to owners of the parent before share-based compensation expenses was **RMB 569.6 million**, with a net profit margin of **25%**[46](index=46&type=chunk) [H1 2025 Performance Comparison](index=23&type=section&id=H1%202025%20Performance%20Comparison) In H1 2025, total revenue grew **1%** to **RMB 4,645.4 million**, with office software revenue up **10%** and network games down **10%**, while profit attributable to owners of the parent increased **20.4%** to **RMB 816.3 million** H1 2025 Key Financial Data (Year-on-Year) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 4,645,407 | 4,610,641 | +0.75% | | Office Software and Services Revenue | 2,657,122 | 2,413,079 | +10.11% | | Network Games and Other Revenue | 1,988,285 | 2,197,562 | -9.52% | | Operating Profit | 984,111 | 1,395,615 | -29.50% | | Profit Attributable to Owners of the Parent | 816,314 | 677,923 | +20.41% | [H1 Revenue Analysis](index=23&type=section&id=H1%20Revenue%20Analysis) - In **H1 2025**, total revenue was **RMB 4,645.4 million**, a **1% year-on-year increase**[47](index=47&type=chunk) - Office software and services business revenue increased by **10% year-on-year**, primarily due to the growth of **WPS personal business** (product capabilities, user experience, commercial strategy optimization) and **WPS 365 business** (product capabilities, services, solution promotion)[47](index=47&type=chunk) - Network games and other business revenue decreased by **10% year-on-year**, mainly due to the **high base effect** of 'Snowbreak: Containment Zone' and 'JX World: Origin' in **H1 2024**, partially offset by the growth of 'Jian Wang 3'[47](index=47&type=chunk) [H1 Cost of Revenue and Gross Profit](index=23&type=section&id=H1%20Cost%20of%20Revenue%20%26%20Gross%20Profit) - In **H1 2025**, cost of revenue was **RMB 873.2 million**, a **5% year-on-year increase**, primarily due to increased server, bandwidth, and channel costs driven by the growth of Kingsoft Office Group's business[48](index=48&type=chunk) - Gross profit was **RMB 3,772.2 million**, consistent with the prior period, with a gross profit margin of **81%**, down **1 percentage point** year-on-year[48](index=48&type=chunk) [H1 Operating Expenses](index=23&type=section&id=H1%20Operating%20Expenses) - Research and development costs were **RMB 1,681.6 million**, a **16% year-on-year increase**, primarily due to increased headcount at Kingsoft Office Group, higher outsourcing expenses for new game categories, and increased AI-related expenses[49](index=49&type=chunk) - Sales and distribution expenses were **RMB 764.5 million**, a **19% year-on-year increase**, primarily due to increased promotion and advertising efforts to support pre-launch activities for new games[50](index=50&type=chunk) - Administrative expenses were **RMB 333.9 million**, a **6% year-on-year increase**[51](index=51&type=chunk) - Share-based compensation expenses were **RMB 124.8 million**, a **21% year-on-year decrease**[52](index=52&type=chunk) [H1 Other Income and Associates' Results](index=24&type=section&id=H1%20Other%20Income%20%26%20Associates'%20Results) - In **H1 2025**, net other income was **RMB 420.6 million**, compared to a loss of **RMB 16.6 million** in the prior period, primarily due to the dilutive effect of Kingsoft Cloud's new share issuance[54](index=54&type=chunk) - Share of losses of associates was **RMB 322.8 million**, a narrowing from a loss of **RMB 337.9 million** in the prior period[55](index=55&type=chunk) [H1 Profit Attributable to Owners of the Parent](index=24&type=section&id=H1%20Profit%20Attributable%20to%20Parent%20Owners) - In **H1 2025**, profit attributable to owners of the parent was **RMB 816.3 million**, a **20.4% year-on-year increase**[57](index=57&type=chunk) - Profit attributable to owners of the parent before share-based compensation expenses was **RMB 885.6 million**, with a net profit margin of **19%**[58](index=58&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20%26%20Financial%20Resources) [Cash Position and Gearing Ratio](index=25&type=section&id=Cash%20Position%20%26%20Gearing%20Ratio) As of June 30, 2025, the Group's cash and bank balances totaled **RMB 22,594.0 million**, with total cash resources at **RMB 25,156.2 million**, and a gearing ratio of **17%**, down from **26%** at year-end 2024 - As of **June 30, 2025**, the Group's cash and bank balances were **RMB 22,594.0 million**, with restricted cash of **RMB 3.0 million**[59](index=59&type=chunk) - The Group's total cash resources (including cash and bank balances, restricted cash, and financial assets measured at fair value through profit or loss) amounted to **RMB 25,156.2 million**[60](index=60&type=chunk) - The gearing ratio was **17%**, a **significant decrease** from **26%** as of **December 31, 2024**[59](index=59&type=chunk) [Operating Cash Flow and Capital Expenditure](index=25&type=section&id=Operating%20Cash%20Flow%20%26%20Capital%20Expenditure) For the six months ended June 30, 2025, net cash from operating activities decreased **51.6%** to **RMB 664.9 million**, while cash used for capital expenditure increased **23.3%** to **RMB 202.6 million** - For the six months ended **June 30, 2025**, net cash generated from operating activities was **RMB 664.9 million**, a **51.6% year-on-year decrease**[62](index=62&type=chunk) - Cash used for capital expenditure was **RMB 202.6 million**, a **23.3% year-on-year increase**[63](index=63&type=chunk) [Foreign Currency Risk Management](index=25&type=section&id=Foreign%20Currency%20Risk%20Management) As of June 30, 2025, the Group held **RMB 4,191.3 million** in non-RMB denominated financial assets, facing foreign exchange rate fluctuation risks due to a lack of cost-effective hedging - As of **June 30, 2025**, the Group held financial assets denominated in non-RMB currencies, primarily deposits, totaling **RMB 4,191.3 million**[61](index=61&type=chunk) - Due to the **lack of cost-effective hedging measures**, the Group is exposed to the risk of losses arising from **foreign exchange rate fluctuations**[61](index=61&type=chunk) [Business Review and Outlook](index=26&type=section&id=Business%20Review%20%26%20Outlook) [Overall Strategy and Management Comments](index=26&type=section&id=Overall%20Strategy%20%26%20Management%20Comments) Chairman Mr. Lei Jun highlighted steady progress in core businesses, with Kingsoft Office focusing on **AI, collaboration, and internationalization**, and network games on content innovation and global expansion, while CEO Mr. Zou Tao noted robust office software growth and high base effects for network games in Q2 - Chairman **Mr. Lei Jun** stated that the company is steadily advancing its core businesses around established strategies and firmly planning for the future, with **Kingsoft Office Group** focusing on **'AI, Collaboration, and Internationalization'** as strategic priorities, and the **network games business** continuing **content innovation and global expansion**[64](index=64&type=chunk) - CEO **Mr. Zou Tao** noted that **Q2 total revenue decreased by 7% year-on-year**, with **office software and services revenue increasing by 14% year-on-year**, while **network games and other business revenue decreased by 26% year-on-year** due to a high base effect[64](index=64&type=chunk) [Office Software and Services Business](index=17&type=section&id=Office%20Software%20%26%20Services%20Business) In June 2025, global WPS Office MAU reached **651 million** (up **9%**), with cumulative paying users at **41.79 million** (up **10%**), driven by the launch of **WPS AI 3.0** and **'WPS Lingxi'**, and R&D for a new international version WPS Office Operating Data (As of June) | Indicator | June 2025 | June 2024 | Year-on-Year Change (%) | March 2025 | Quarter-on-Quarter Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Global WPS Office Monthly Active Devices (millions) | 651 | 600 | +8.50% | 647 | +0.62% | | Cumulative Paying Users (millions) | 41.79 | 38.15 | +9.54% | N/A | N/A | - The company launched **WPS AI 3.0** and the native Office AI assistant **'WPS Lingxi'**, achieving native embedding of AI capabilities and deep participation in office workflows, marking a shift from tool-based AI applications to collaborative intelligent agents[64](index=64&type=chunk) - **WPS personal business** completed the rollout of AI features and initiated new product promotions; the **overseas market** commenced R&D for a new international version of WPS; **WPS 365 business** continued to penetrate industries and scenarios, actively promoting the implementation of AI projects[65](index=65&type=chunk) [Network Games and Other Business](index=26&type=section&id=Network%20Games%20%26%20Other%20Business) Flagship IP **'Jian Wang 3'** maintained user activity, **'JX Love Zero'** launched, and self-developed sci-fi mecha game **'Mecha Break'** received high ratings in its July global open beta, with **'Goose Goose Duck'** and **'Cats & Soup: Magic Recipe'** obtaining licenses for H2 launch - Flagship IP **'Jian Wang 3'** maintained user activity through **stable content updates** and **continuous technical optimization**[65](index=65&type=chunk) - Self-developed sci-fi mecha game **'Mecha Break'** had its **global open beta in July**, topping Steam's most popular games list and receiving **high ratings** from international authoritative gaming media[65](index=65&type=chunk) - Social deduction game **'Goose Goose Duck'** obtained its license in **June**, with pre-orders exceeding **5 million**, and is expected to launch in the second half of the year; the sequel to 'Cats & Soup', **'Cats & Soup: Magic Recipe'**, obtained its license in **May**[66](index=66&type=chunk) [Future Outlook](index=27&type=section&id=Future%20Outlook) Kingsoft Office Group will increase R&D in **AI and collaboration** for broader industry adoption, while the network games business will focus on **premium games, IP ecosystem development, and global expansion** for long-term operation - Kingsoft Office Group will continue to **increase R&D investment in AI and collaboration**, promoting the implementation of products and services in more office scenarios across various industries[66](index=66&type=chunk) - The network games business will continue to focus on **premium games**, deepen **IP ecosystem development**, and steadily advance its **global strategic layout** for long-term operation[66](index=66&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) [Employees and Remuneration Policy](index=28&type=section&id=Employees%20%26%20Remuneration%20Policy) As of June 30, 2025, the Group had **8,471 full-time employees** primarily in Beijing, Zhuhai, and Wuhan, with H1 total remuneration costs of **RMB 2,160.5 million**, up **8.2%** year-on-year - As of **June 30, 2025**, the Group had **8,471 full-time employees**, primarily located in **Beijing, Zhuhai, and Wuhan, China**[67](index=67&type=chunk) - For the six months ended **June 30, 2025**, total remuneration costs were **RMB 2,160.5 million**, an **8.2% year-on-year increase**[67](index=67&type=chunk) - Employee remuneration is determined based on industry practice, qualifications, experience, and performance, with **share awards and share options** also provided[67](index=67&type=chunk) [Share Repurchases](index=28&type=section&id=Share%20Repurchases) For the six months ended June 30, 2025, the company repurchased **1,570,000 ordinary shares** on the Stock Exchange at a total cost of approximately **HKD 52.28 million**, aiming to return surplus funds and enhance shareholder value - For the six months ended **June 30, 2025**, the company repurchased a total of **1,570,000 of its own ordinary shares** on the Stock Exchange, at a total cost of approximately **HKD 52.28 million**[68](index=68&type=chunk) - The share repurchases aim to **return surplus funds to shareholders** and **enhance shareholder value**[68](index=68&type=chunk) [Audit Committee Review](index=28&type=section&id=Audit%20Committee%20Review) The Audit Committee reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025, discussing accounting principles, internal controls, and financial reporting with management - The Audit Committee, composed of independent non-executive directors, assists the Board in providing an **independent review of financial statements and internal control systems**[69](index=69&type=chunk) - The Audit Committee has reviewed the Group's **unaudited interim financial information** for the six months ended **June 30, 2025**[69](index=69&type=chunk) [Corporate Governance and Compliance](index=29&type=section&id=Corporate%20Governance%20%26%20Compliance) The company complied with the **Listing Rules' Model Code** for securities transactions, with directors confirming adherence, and generally followed the **Corporate Governance Code**, except for provision D.1.2 regarding quarterly management updates to the Board - The company has adopted and complied with the **Model Code for Securities Transactions** in **Appendix C3 of the Listing Rules**, and directors have confirmed compliance throughout the reporting period[70](index=70&type=chunk) - The company generally complied with the **Corporate Governance Code**, except for **provision D.1.2** (management providing monthly business updates to the Board), as management currently reports **quarterly**[71](index=71&type=chunk) - The Board believes that the current quarterly reporting is sufficient to discharge its duties and will continue to review it[71](index=71&type=chunk)

[Company Information](index=4&type=section&id=Company%20Information) This chapter provides essential corporate details for Uni-President China Holdings Ltd., including its stock code, offices, board members, committees, bankers, auditor, and share registrar - Company shares are listed on The Stock Exchange of Hong Kong Limited, stock code **220**[11](index=11&type=chunk) - Executive Directors include Mr. Lo Chih-Hsien (Chairman) and Mr. Liu Hsin-Hua (General Manager)[12](index=12&type=chunk)[13](index=13&type=chunk) - PricewaterhouseCoopers serves as the company's auditor[15](index=15&type=chunk)[16](index=16&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This chapter analyzes Uni-President China Holdings Ltd.'s operating environment, financial performance, business segments, financial position, risk management, and human resources strategy for the first half of 2025 [Economic Environment Analysis](index=6&type=section&id=Economic%20Environment%20Analysis) In the first half of 2025, China's economy grew steadily, with GDP up 5.3% and retail sales up 5.0%, driven by government consumption policies and evolving consumer demands - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, and total retail sales of consumer goods increased by **5.0%**[19](index=19&type=chunk)[21](index=21&type=chunk) - The Chinese government continued its "Consumption Promotion Year" policy, with macro policies consistently boosting the release of consumption potential[19](index=19&type=chunk)[21](index=21&type=chunk) - Consumer demand for healthy attributes, functional needs, emotional resonance, and value-for-money in food and beverages continued to strengthen, driving product innovation and structural growth in the consumer market[19](index=19&type=chunk)[22](index=22&type=chunk) [Financial Performance](index=7&type=section&id=Financial%20Performance) The Group achieved robust financial growth in the first half of 2025, with total revenue up 10.6% to RMB 17,086.6 million, operating profit surging 33.7%, and profit attributable to equity holders rising 33.2% 2025 H1 Key Financial Data | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 17,086.6 | 15,448.6 | +10.6% | | Food Business Revenue | 5,382.2 | 4,947.4 | +8.8% | | Beverage Business Revenue | 10,788.1 | 10,023.5 | +7.6% | | Gross Profit | 5,864.8 | 5,228.0 | +12.2% | | Gross Profit Margin | 34.3% | 33.8% | +0.5 percentage points | | Operating Profit | 1,648.7 | 1,233.3 | +33.7% | | Profit Attributable to Equity Holders of the Company | 1,286.7 | 965.7 | +33.2% | - Gross profit margin improvement primarily due to increased production capacity from sales volume growth and a decline in prices of some raw materials[24](index=24&type=chunk)[26](index=26&type=chunk) - Selling and marketing expenses increased by approximately **RMB 181.5 million**, mainly for brand promotion and channel development[24](index=24&type=chunk)[27](index=27&type=chunk) [Business Review](index=8&type=section&id=Business%20Review) The Group focused on consumer demand, driving steady growth in food and beverages through innovation, omnichannel integration, and emotional marketing, while expanding e-commerce and emerging channels [Food Business](index=8&type=section&id=Food%20Business) The food business generated RMB 5,382.2 million in revenue in the first half of 2025, an 8.8% increase, driven by product innovation, value marketing, and meeting diverse consumer needs - In the first half of 2025, food business revenue recorded **RMB 5,382.2 million**, an **8.8% increase** compared to the same period last year[30](index=30&type=chunk)[32](index=32&type=chunk) - The Group aims to meet consumer demand through precise innovation, omnichannel integration, deep cultivation of segmented scenarios, and emotional marketing to create impactful brand experiences[30](index=30&type=chunk)[32](index=32&type=chunk) [Instant Noodle Business](index=8&type=section&id=Instant%20Noodle%20Business) The instant noodle business achieved steady growth through continuous innovation and strengthened product offerings, with key brands like "Tang Da Ren" and "Qie Huang" expanding market share and revenue - "Tang Da Ren," as a leader in soup noodles, achieved steady overall brand revenue growth in the first half of 2025 and launched "Mini Cup" to enrich its product matrix[35](index=35&type=chunk)[37](index=37&type=chunk) - "Uni-President Laotan Sauerkraut Beef Noodles" focused on quality management, enhancing brand trust through the "Laotan Grandpa" IP, achieving steady revenue growth in the first half[36](index=36&type=chunk)[38](index=38&type=chunk) - "Uni-President Braised Beef Noodles" completed flavor upgrades, developing "Three-Stage Burst Fragrance" technology to enhance brand recognition[36](index=36&type=chunk)[39](index=39&type=chunk) - "Qie Huang" maintained its "using about one sun-ripened tomato" standard, achieving continuous double-digit brand revenue growth in the first half and expanding usage scenarios through online and offline activities[40](index=40&type=chunk)[41](index=41&type=chunk) - "Man Han Da Can" focused on the "Scallion Braised Beef" flavor, achieving high double-digit revenue growth in the first half and promoting through Douyin for food-related content[40](index=40&type=chunk)[41](index=41&type=chunk) [Other Food Products](index=10&type=section&id=Other%20Food%20Products) The "Kai Xiao Zao" brand's cup-packaged "Sour Soup Wonton" and "Seaweed Shrimp Wonton" gained market favor due to their "premium value-for-money," driving growth in the instant wonton category - "Kai Xiao Zao" cup-packaged "Sour Soup Wonton" and "Seaweed Shrimp Wonton" gained continuous trial and repurchase from users due to their "premium value-for-money," driving growth in the instant wonton market[42](index=42&type=chunk)[43](index=43&type=chunk) [Food Business Outlook](index=11&type=section&id=Food%20Business%20Outlook) The food business will focus on high value-for-money, healthy, safe, and innovative specialty products, prioritizing consumer experience, quality control, and integrating health with Chinese culinary culture - The second half will focus on high value-for-money, healthy, safe, and innovative specialty products, providing rich emotional value[45](index=45&type=chunk)[46](index=46&type=chunk) - The Group will uphold its original intention, center on consumers, strictly control product quality, and integrate health with culture to inherit Chinese culinary traditions[45](index=45&type=chunk)[46](index=46&type=chunk) [Beverage Business](index=11&type=section&id=Beverage%20Business) The beverage business achieved RMB 10,788.1 million in revenue in the first half of 2025, a 7.6% increase, driven by brand building, market expansion, high-performance retail, increased freezing efforts, and digital empowerment - In the first half of 2025, beverage business revenue recorded **RMB 10,788.1 million**, a **7.6% increase** compared to the same period last year[47](index=47&type=chunk) - The Group adheres to brand building, cultivates and expands market channels, covering multiple consumption scenarios such as dining, household, gifts, and group purchases[46](index=46&type=chunk)[47](index=47&type=chunk) - Promotes the layout of high-performance retail points, continuously increases freezing efforts, empowers digitalization, and constantly innovates and optimizes product strength[46](index=46&type=chunk)[47](index=47&type=chunk) [Tea Beverages](index=12&type=section&id=Tea%20Beverages) The tea beverage business grew 9.1% to RMB 5,067.5 million in the first half, maintaining stable growth through product innovation, youth-oriented marketing, and cross-industry collaborations - In the first half of 2025, tea beverage revenue was **RMB 5,067.5 million**, a **9.1% increase** compared to the same period last year[48](index=48&type=chunk)[49](index=49&type=chunk) - "Uni-President Green Tea" deployed both low-sugar and sugar-free product lines, launched the new sugar-free "Chun Fu Roasted Tea," and deepened brand reputation through "Smiling Cycling" and "Cooling for Delivery Riders" campaigns[50](index=50&type=chunk)[51](index=51&type=chunk) - "Uni-President Iced Black Tea" launched "Uni-President Cola Iced Black Tea" and partnered with Bilibili to title sponsor a graduation concert; in the second half, it will title sponsor "The Rap of China 2025" to expand influence among young audiences[53](index=53&type=chunk)[54](index=54&type=chunk) - "Uni-President Plum Green Tea" strengthened its traditional Chinese aesthetic, launched the "Plum Blossom Bamboo Bottle," and collaborated with leading platforms to host a "Intangible Cultural Heritage Grand Exhibition"[55](index=55&type=chunk) - "Uni-President Double Extract Lemon Tea" focused on the selling point of "double tea base, extracted for 7 minutes," creating a "Authentic Kung Fu Festival" to strengthen brand image[56](index=56&type=chunk)[58](index=58&type=chunk) - "Xiao Ming Tong Xue" launched the new "Peach Guava Oolong Tea," continuing to deeply engage with the ACG community, contributing to brand revenue growth[59](index=59&type=chunk) - "Tea King" redefined its positioning as "King of Tea," launched a new Lapsang Souchong black tea flavor, and optimized its external aesthetics to enhance brand professionalism and recognition[60](index=60&type=chunk) [Juice](index=15&type=section&id=Juice) The juice business grew 1.7% to RMB 1,820.9 million in the first half, driven by the "healthy and delicious" concept, optimized flavors, and multi-specification, multi-scenario strategies across various brands - In the first half of 2025, juice business revenue was **RMB 1,820.9 million**, a **1.7% increase** compared to the same period last year[62](index=62&type=chunk)[63](index=63&type=chunk) - "Uni-President Fresh Orange" strengthened its "more beautiful" brand core value through "multi-fiber" design language and expanded into catering channels and festive gift box markets[64](index=64&type=chunk) - "Hai Zhi Yan" electrolyte beverage revenue continued stable growth, driven by "scientific formula + scenario deep cultivation" dual engines, strengthening the "electrolyte replenishment" brand value[65](index=65&type=chunk)[67](index=67&type=chunk) - "Uni-President Fruit Juice" leveraged "Uni-President Kumquat Lemon" and "Uni-President Rock Sugar Pear" to enter campus scenarios and launched the low-sugar, refreshing grapefruit-flavored beverage "You Jian Qing Xin" to open new growth tracks[66](index=66&type=chunk)[68](index=68&type=chunk) - "Yuan Qi Jue Xing" focused on the 100% pure fruit and vegetable juice segment in first-tier cities, advocating a positive lifestyle and conveying the brand tone of "full of vitality, awakening new power"[70](index=70&type=chunk)[71](index=71&type=chunk) [Beverage Business Outlook](index=17&type=section&id=Beverage%20Business%20Outlook) In the second half, the juice business will consolidate core product growth, focus on ready-to-drink and catering channels, pre-deploy for festive markets, and expand new product sales to capture low-sugar, refreshing juice market share - The second half will consolidate core product growth, focusing on ready-to-drink consumption scenarios, deepening catering channel penetration, and pre-deploying for festive gift box markets[72](index=72&type=chunk)[73](index=73&type=chunk) - Expand new product sales, accelerate market share capture in low-sugar, refreshing juice beverages, and create a second growth curve[72](index=72&type=chunk)[73](index=73&type=chunk) [Milk Tea](index=17&type=section&id=Milk%20Tea) The milk tea business grew 3.5% to RMB 3,397.9 million in the first half, with "Uni-President Assam Milk Tea" leading the market and launching a strategic new product, while "CITEA Milk Tea" strengthened brand recognition through unique craftsmanship - In the first half of 2025, milk tea business revenue was **RMB 3,397.9 million**, a **3.5% increase** compared to the same period last year[74](index=74&type=chunk)[75](index=75&type=chunk) - "Uni-President Assam Milk Tea" launched the strategic new product Jasmine Milk Green, positioned as a large green tea-based product, aligning with the sugar reduction trend, receiving enthusiastic market response, and possessing potential for a new growth curve[74](index=74&type=chunk)[75](index=75&type=chunk) - "Uni-President Assam Milk Tea" centered on the core proposition of "smooth good mood," deepening brand connection through Spring Festival family gatherings, Xiaohongshu interactions, and the "Jasmine Bloom • Good Mood Music Festival"[76](index=76&type=chunk)[78](index=78&type=chunk) - "CITEA Milk Tea" meticulously crafted new Chinese-style milk tea, using a 12-minute slow-cooking process, and collaborated with intangible cultural heritage masters and youth platforms to convey the "slow living" philosophy[77](index=77&type=chunk)[79](index=79&type=chunk) [Coffee](index=19&type=section&id=Coffee) The coffee business focused on optimizing "Ya Ha Iced Coffee" product strength and enhancing coffee aroma, deeply cultivating base cities and campuses to expand its consumer base, with plans to explore category innovation in the second half - In the first half of 2025, the coffee business focused on operating strategy, optimizing "Ya Ha Iced Coffee" product strength, and enhancing coffee roasting aroma[81](index=81&type=chunk)[82](index=82&type=chunk) - In terms of channels, deeply cultivated base cities, focusing on campuses to increase brand penetration and cultivate new university student consumer groups[81](index=81&type=chunk)[82](index=82&type=chunk) - In the second half, it will continue to expand its core business through "Ya Ha Iced Coffee" focus and base city development, and explore new directions for category innovation[83](index=83&type=chunk)[85](index=85&type=chunk) [Packaged Water](index=19&type=section&id=Packaged%20Water) The "I Qua" brand maintained its mid-to-high-end natural mineral water positioning, creating immersive experiences and expanding online presence, while optimizing sales points for various product sizes to cater to diverse consumer needs - The "I Qua" brand focused on its core positioning as mid-to-high-end natural mineral water, articulating the "Connected by Source" brand story[84](index=84&type=chunk)[86](index=86&type=chunk) - In the first half of 2025, an immersive "Snow Mountain Secret Realm" experience space was created in Shanghai's core business districts, with online promotion centered on the "Connected by Source" theme[87](index=87&type=chunk)[90](index=90&type=chunk) - Increased the density of 360ml specification sales points and multi-pack product sales to adapt to the drinking habits of parent-child and female consumers and different consumption scenarios[87](index=87&type=chunk)[90](index=90&type=chunk) [E-commerce](index=20&type=section&id=E-commerce) The Group's online business is committed to enriching consumer purchasing channels and creating a convenient, safe, and efficient business model, actively deploying across all-domain interest e-commerce platforms and establishing content live streaming rooms - The Group's online business is committed to creating a convenient, safe, and efficient business model, enriching consumer purchasing channels[88](index=88&type=chunk)[91](index=91&type=chunk) - Deployed across all-domain interest e-commerce platforms such as Douyin Mall, Kuaishou, Pinduoduo, and WeChat Video Accounts, promoting short video and live stream sales[88](index=88&type=chunk)[91](index=91&type=chunk) - Established **8 content live streaming rooms** to meet new user demands for "value-for-money," providing more emotional value, and creating new promotional fronts for brands[88](index=88&type=chunk)[91](index=91&type=chunk) [Others](index=20&type=section&id=Others) The Group actively expanded into emerging channels, leveraging its R&D advantages and production line diversity to deepen cooperation with strategic alliance clients and seek broader expansion opportunities in OEM categories - The Group actively expanded into emerging channels, leveraging R&D advantages and production line diversity[89](index=89&type=chunk)[92](index=92&type=chunk) - Deepened cooperation with strategic alliance clients, seeking expansion opportunities in OEM categories and cooperation projects[89](index=89&type=chunk)[92](index=92&type=chunk) - Diversified layout in emerging channels created new growth momentum for the Group[89](index=89&type=chunk)[92](index=92&type=chunk) [Financial Analysis](index=21&type=section&id=Financial%20Analysis) This section analyzes the Group's cash, borrowings, financing structure, cash flow, capital expenditures, and operating efficiency, noting ample cash reserves, increased short-term borrowings, and improved efficiency metrics [Cash and Borrowings](index=21&type=section&id=Cash%20and%20Borrowings) As of June 30, 2025, the Group's bank and cash on hand increased to RMB 9,354.6 million, while total financial liabilities significantly rose to RMB 2,249.3 million due to increased short-term borrowings Cash and Borrowings Status | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Bank and cash on hand | 9,354.6 | 8,577.2 | +777.4 | | Total financial liabilities | 2,249.3 | 290.0 | +1,959.3 | - **99.90%** of cash is denominated in RMB, **0.06%** in New Taiwan Dollars, **0.02%** in Hong Kong Dollars, and **0.02%** in US Dollars[94](index=94&type=chunk)[95](index=95&type=chunk) - All financial liabilities are denominated in RMB, bear floating interest rates, and there are no pledged bank borrowings[94](index=94&type=chunk)[95](index=95&type=chunk) [Financing](index=21&type=section&id=Financing) The Group maintains an appropriate capital structure, with its gearing ratio improving to (55.35)% as of June 30, 2025, reflecting a more robust net cash position relative to total equity Gearing Ratio | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total borrowings (including lease liabilities) | 2,249,280 | 289,996 | | Less: Bank and cash on hand | (9,354,589) | (8,577,196) | | Net cash | (7,105,309) | (8,287,200) | | Total equity | 12,836,562 | 13,399,110 | | Gearing ratio | (55.35%) | (61.85%) | - As of June 30, 2025, the Group held financial assets at fair value through profit or loss of **RMB 1,318.7 million**[98](index=98&type=chunk)[105](index=105&type=chunk) [Cash Flow and Capital Expenditure](index=22&type=section&id=Cash%20Flow%20and%20Capital%20Expenditure) For the six months ended June 30, 2025, the Group experienced a net decrease in cash and cash equivalents of RMB 406.2 million, with significant cash outflows from investing activities and increased capital expenditure Cash Flow and Capital Expenditure | Indicator | 6 months ended June 30, 2025 (RMB million) | 6 months ended June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Net decrease in cash and cash equivalents | (406.2) | (618.6) | | Net cash inflow from operating activities | 872.0 | 1,486.7 | | Net cash outflow from investing activities | (1,415.4) | (974.2) | | Net cash inflow from financing activities | 137.2 | (1,131.1) | | Capital expenditure (including right-of-use assets for leases) | 641.8 | 395.8 | [Operating Efficiency Analysis](index=22&type=section&id=Operating%20Efficiency%20Analysis) The Group improved operating efficiency by strictly managing trade receivables, payables, and inventory, resulting in a decrease in inventory turnover days from 41 to 35 and trade payables turnover days from 39 to 36 Operating Efficiency Indicators | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net trade receivables (RMB million) | 695.8 | 627.6 | +68.2 | | Trade receivables turnover days | 7 | 7 | Stable | | Inventory (RMB million) | 1,842.9 | 2,487.1 | -644.2 | | Inventory turnover days | 35 | 41 | -6 days | | Trade payables (RMB million) | 2,233.6 | 2,283.5 | -49.9 | | Trade payables turnover days | 36 | 39 | -3 days | - The credit period for trade receivables is typically **60 to 90 days**[101](index=101&type=chunk)[104](index=104&type=chunk) - The decrease in inventory balance was mainly affected by preparations for the 2025 Spring Festival[107](index=107&type=chunk)[108](index=108&type=chunk) [Financial Management](index=24&type=section&id=Financial%20Management) The Group adheres to prudent financial management, adjusting expenses and capital expenditures to optimize assets and mitigate risks, while the finance department centrally manages financial risks and cash flow through automated systems - The Group adheres to prudent financial management principles, appropriately adjusting sales and marketing expenses and capital expenditures to optimize infrastructure and channel marketing assets[114](index=114&type=chunk)[117](index=117&type=chunk) - The finance department centrally manages financial risks (including interest rate and foreign exchange risks) and cash flow, and enhances fund utilization efficiency and accounting processing efficiency through an automated reconciliation system[114](index=114&type=chunk)[118](index=118&type=chunk) [Treasury Policy](index=24&type=section&id=Treasury%20Policy) The Group's treasury policy maintains a prudent approach, avoiding high-risk investments and speculative derivatives, with most revenue in RMB, and utilizing foreign exchange forward contracts for hedging other currency risks - Treasury policy prohibits high-risk investments or speculative derivative instruments, and investment in financial products with significant leverage or risk[115](index=115&type=chunk)[119](index=119&type=chunk) - Most revenue is derived from China operations, with assets and payments denominated in **RMB**[115](index=115&type=chunk)[119](index=119&type=chunk) - Foreign exchange forward contracts will be used for hedging if exposed to foreign exchange risks[115](index=115&type=chunk)[119](index=119&type=chunk) [Significant Investments](index=24&type=section&id=Significant%20Investments) As of June 30, 2025, the Group held no significant investments representing 5% or more of its total assets - As of June 30, 2025, the Group held no significant investments representing **5% or more** of its total assets[116](index=116&type=chunk)[120](index=120&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[122](index=122&type=chunk)[127](index=127&type=chunk) [Pledged Group Assets](index=25&type=section&id=Pledged%20Group%20Assets) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[123](index=123&type=chunk)[128](index=128&type=chunk) [Material Acquisitions and Disposals](index=25&type=section&id=Material%20Acquisitions%20and%20Disposals) During the review period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the review period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[124](index=124&type=chunk)[129](index=129&type=chunk) [Future Material Investments or Plans for Capital Assets](index=25&type=section&id=Future%20Material%20Investments%20or%20Plans%20for%20Capital%20Assets) The Directors confirm that, as of the report date, the Group currently has no plans for any material investments or acquisitions of capital assets beyond its ordinary course of business - The Directors confirm that, other than ordinary business, the Group currently has no plans for any material investments or acquisitions of capital assets[125](index=125&type=chunk)[130](index=130&type=chunk) [Human Resources Policy](index=25&type=section&id=Human%20Resources%20Policy) As of June 30, 2025, the Group employed 33,652 people, optimizing its organizational structure and enhancing efficiency through talent recruitment, training, job rotation, and performance appraisal, with total employee benefits expenses of RMB 2,371.9 million - As of June 30, 2025, the Group's total number of employees was **33,652**[126](index=126&type=chunk)[131](index=131&type=chunk) - The Group ensures a stable, efficient, and vibrant team through mechanisms such as recruiting professional talent, improving training, job rotation, external exchange and learning, and performance appraisal[126](index=126&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[136](index=136&type=chunk) - During the review period, total employee benefits expenses (including Directors' emoluments) were **RMB 2,371.9 million**[133](index=133&type=chunk)[137](index=137&type=chunk) - The Group has no employee share option scheme or share award scheme[133](index=133&type=chunk)[137](index=137&type=chunk) [Capacity Strategy](index=26&type=section&id=Capacity%20Strategy) The Group employs a flexible capacity strategy, combining its own production with strategic alliances with professional beverage OEM manufacturers to ensure elastic capacity and maximize resource utilization for focused operational projects - The Group combines its own production capacity with cooperation with professional beverage OEM manufacturers, forming strategic alliances[134](index=134&type=chunk)[138](index=138&type=chunk) - The outsourcing approach provides flexible capacity, allowing resources to be fully utilized in focused operational projects to maximize efficiency[134](index=134&type=chunk)[138](index=138&type=chunk) [Events After Review Period](index=26&type=section&id=Events%20After%20Review%20Period) No events occurred after the review period that had a material impact on the Group's unaudited interim condensed consolidated financial information for the six months ended June 30, 2025 - No events occurred after the review period that had a material impact on the interim condensed consolidated financial information[135](index=135&type=chunk)[139](index=139&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) This chapter discloses the company's securities transactions, equity interests of directors and chief executives, major shareholders' holdings, corporate governance compliance, and the audit committee's review report, ensuring transparency and adherence to regulations [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of 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 during the review period[140](index=140&type=chunk)[141](index=141&type=chunk) [Interests of Directors and Chief Executives in the Company's Securities](index=27&type=section&id=Interests%20of%20Directors%20and%20Chief%20Executives%20in%20the%20Company%27s%20Securities) As of June 30, 2025, Executive Director Mr. Liu Hsin-Hua held 310,000 ordinary shares (0.007%), while Chairman Mr. Lo Chih-Hsien held significant interests in an associated corporation, Uni-President Enterprises Corporation Directors' and Chief Executives' Long Position in the Company's Shares | Director Name | Capacity | Number of Ordinary Shares | Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Liu Hsin-Hua | Beneficial owner | 310,000 | 0.007% | Directors' and Chief Executives' Long Position in Shares of Associated Corporation | Name of Associated Corporation | Director Name | Capacity | Number of Ordinary Shares | Percentage of Shareholding in Associated Corporation | | :--- | :--- | :--- | :--- | :--- | | Uni-President Enterprises Corporation | Lo Chih-Hsien | Beneficial owner | 4,059,095 | 0.08% | | | | Spouse's interest | 93,402,447 | 1.64% | [Interests of Substantial Shareholders and Other Persons in the Company's Securities](index=29&type=section&id=Interests%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20the%20Company%27s%20Securities) As of June 30, 2025, Cayman President Holdings Ltd. was a substantial shareholder with 70.49% of ordinary shares, and Uni-President Enterprises Corporation was deemed to hold 72.92% through its controlled corporations Substantial Shareholders' Long Position in the Company's Shares | Name | Capacity | Number of Ordinary Shares in the Company | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Cayman President Holdings Ltd. | Beneficial owner | 3,044,508,000 | 70.49% | | Uni-President Enterprises Corporation | Interest in controlled corporations | 3,149,742,983 | 72.92% | - Uni-President Enterprises Corporation is deemed to have an interest in all shares held by Cayman President, President (BVI), and Kai You (BVI)[152](index=152&type=chunk)[153](index=153&type=chunk) [Corporate Governance Code](index=30&type=section&id=Corporate%20Governance%20Code) The Directors confirm that the Company has complied with the code provisions of the Corporate Governance Code as set out in Part 2 of Appendix C1 to the Listing Rules throughout the review period - The Company has complied with the code provisions of the Corporate Governance Code as set out in Part 2 of Appendix C1 to the Listing Rules throughout the review period[155](index=155&type=chunk)[157](index=157&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=30&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company has adopted the Model Code as set out in Appendix C3 to the Listing Rules, and all Directors confirmed full compliance with its required standards during the review period - The Company has adopted the Model Code as set out in Appendix C3 to the Listing Rules, and all Directors confirmed full compliance during the review period[156](index=156&type=chunk)[158](index=158&type=chunk) [Audit Committee Review](index=30&type=section&id=Audit%20Committee%20Review) The Audit Committee, composed of five members with extensive business experience, has reviewed the Group's management accounting principles and financial reporting matters, recommending the Board to adopt the unaudited interim results - Audit Committee members include Dr. Fan Ren-Da (Chairman), Mr. Chen Chih-Hung, Mr. Chen Sheng-Te, Ms. Chien Chi-Lin, and Mr. Lu Chia-Hsing, with a majority being independent non-executive directors[159](index=159&type=chunk) - The Committee has reviewed the Group's management accounting principles and financial reporting matters, and recommended the Board to adopt the unaudited interim results[159](index=159&type=chunk) [Review Report on Interim Financial Information](index=31&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) PricewaterhouseCoopers reviewed Uni-President China Holdings Ltd.'s interim condensed consolidated financial information for the six months ended June 30, 2025, concluding that it was prepared in all material respects according to Hong Kong Accounting Standard 34 - PricewaterhouseCoopers has reviewed the Group's interim condensed consolidated financial information for the six months ended June 30, 2025[162](index=162&type=chunk)[168](index=168&type=chunk) - The review was conducted 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[162](index=162&type=chunk)[166](index=166&type=chunk) - The conclusion is that nothing came to the auditor's attention that caused them to believe the interim financial information was not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[165](index=165&type=chunk)[167](index=167&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=33&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's interim condensed consolidated statement of profit or loss showed significant growth in revenue, gross profit, operating profit, and profit attributable to equity holders, with basic and diluted earnings per share at 29.79 cents Summary of Interim Condensed Consolidated Statement of Profit or Loss | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 17,086,589 | 15,448,557 | | Cost of sales | (11,221,781) | (10,220,579) | | Gross profit | 5,864,808 | 5,227,978 | | Operating profit | 1,648,742 | 1,233,258 | | Profit before income tax | 1,778,728 | 1,323,233 | | Profit for the period attributable to equity holders of the Company | 1,286,710 | 965,693 | | Basic and diluted earnings per share (RMB cents) | 29.79 | 22.36 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=34&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's interim condensed consolidated statement of comprehensive income showed total comprehensive income attributable to equity holders of RMB 1,286.7 million, consistent with profit for the period, indicating no other comprehensive income items Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 1,286,710 | 965,693 | | Other comprehensive income for the period – net of tax | – | – | | Total comprehensive income for the period attributable to equity holders of the Company | 1,286,710 | 965,693 | [Interim Condensed Consolidated Statement of Financial Position](index=35&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's interim condensed consolidated statement of financial position showed total assets of RMB 23,119.6 million, a slight decrease, while total liabilities increased to RMB 10,283.1 million and total equity decreased to RMB 12,836.6 million Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 14,197,869 | 14,267,483 | | Current assets | 8,921,764 | 9,108,751 | | **Total assets** | **23,119,633** | **23,376,234** | | **Equity** | | | | Equity attributable to equity holders of the Company | 12,836,562 | 13,399,110 | | **Total equity** | **12,836,562** | **13,399,110** | | **Liabilities** | | | | Non-current liabilities | 870,524 | 776,279 | | Current liabilities | 9,412,547 | 9,200,845 | | **Total liabilities** | **10,283,071** | **9,977,124** | [Interim Condensed Consolidated Statement of Changes in Equity](index=37&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the Group's total equity decreased from RMB 13,399.1 million to RMB 12,836.6 million, primarily due to dividend payments related to 2024, partially offset by profit for the period Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator | Balance as at January 1, 2025 (RMB thousand) | Profit for the period (RMB thousand) | Dividends related to 2024 (RMB thousand) | Balance as at June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Share capital | 39,764 | – | – | 39,764 | | Share premium | 4,829,899 | – | – | 4,829,899 | | Other reserves | 4,583,955 | – | – | 4,583,955 | | Retained earnings | 3,945,492 | 1,286,710 | (1,849,258) | 3,382,944 | | **Total** | **13,399,110** | **1,286,710** | **(1,849,258)** | **12,836,562** | [Interim Condensed Consolidated Statement of Cash Flows](index=38&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's interim condensed consolidated statement of cash flows showed a net decrease in cash and cash equivalents of RMB 406.2 million, with net cash inflow from operating activities, net cash outflow from investing activities, and net cash inflow from financing activities Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 872,009 | 1,486,707 | | Net cash used in investing activities | (1,415,402) | (974,198) | | Net cash generated from/(used in) financing activities | 137,199 | (1,131,147) | | **Net decrease in cash and cash equivalents** | **(406,194)** | **(618,638)** | | Cash and cash equivalents at end of period | 203,546 | 313,570 | [Notes to the Interim Condensed Consolidated Financial Information](index=40&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This chapter provides detailed notes to the interim condensed consolidated financial information, covering general information, basis of preparation, significant accounting policies, estimates, financial risk management, segment information, operating profit, finance income, income tax expense, earnings per share, dividends, changes in assets, investments accounted for using the equity method, trade receivables and payables, financial assets, share capital, and related party transactions [General Information](index=40&type=section&id=General%20Information) Uni-President China Holdings Ltd., incorporated in the Cayman Islands, primarily operates in the food and beverage sector in China, with its shares listed on the HKEX Main Board since December 17, 2007, and its unaudited interim condensed consolidated financial information is presented in RMB thousands - The Company was incorporated in the Cayman Islands and primarily engages in food and beverage businesses in China[180](index=180&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since December 17, 2007[180](index=180&type=chunk)[187](index=187&type=chunk) - This interim condensed consolidated financial information is unaudited and presented in **RMB thousands**[181](index=181&type=chunk)[182](index=182&type=chunk)[187](index=187&type=chunk) [Basis of Preparation](index=40&type=section&id=Basis%20of%20Preparation) This interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the 2024 annual financial statements, with the Group operating on a going concern basis - This interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[183](index=183&type=chunk)[188](index=188&type=chunk) - It should be read in conjunction with the annual financial statements for the year ended December 31, 2024[183](index=183&type=chunk)[188](index=188&type=chunk) - The Group's interim condensed consolidated financial information is prepared on a going concern basis, supported by profitable operating results, positive operating cash inflows, and available bank loans[184](index=184&type=chunk)[189](index=189&type=chunk) [Significant Accounting Policies](index=41&type=section&id=Significant%20Accounting%20Policies) The Group's accounting policies are consistent with those of 2024, with new standards like HKAS 21 (Amendments) adopted without policy changes, while the impact of other newly issued but not yet effective standards is being assessed - The accounting policies applied are consistent with those adopted in the annual financial statements for the year ended December 31, 2024[190](index=190&type=chunk)[191](index=191&type=chunk) - The Group has adopted HKAS 21 (Amendments) "Lack of Exchangeability," but it did not result in changes to accounting policies or retrospective adjustments[192](index=192&type=chunk) - Several new and amended standards (e.g., HKFRS 9, 7, 18, 19) have been issued but are not yet mandatorily effective, and the Group is assessing their full impact[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk) [Estimates](index=43&type=section&id=Estimates) The preparation of interim financial information requires management to make judgments, estimates, and assumptions, with key sources of estimation uncertainty remaining consistent with those applied in the 2024 annual consolidated financial statements - Preparation of interim financial information requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[198](index=198&type=chunk)[200](index=200&type=chunk) - The significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty are the same as those applied in the 2024 annual consolidated financial statements[198](index=198&type=chunk)[201](index=201&type=chunk) [Financial Risk Management](index=43&type=section&id=Financial%20Risk%20Management) The Group's activities expose it to market, credit, and liquidity risks, with no changes in major risk management policies since year-end, and this section details these risks, including a maturity analysis of liquidity risk and fair value estimates of financial instruments [Financial Risk Factors](index=43&type=section&id=Financial%20Risk%20Factors) The Group is exposed to various financial risks, including market risks (foreign exchange, fair value interest rate, cash flow interest rate, and price risks), credit risk, and liquidity risk, with no changes in major risk management policies since year-end - The Group is exposed to market risks (including foreign exchange risk, fair value interest rate risk, cash flow interest rate risk, and price risk), credit risk, and liquidity risk[199](index=199&type=chunk)[202](index=202&type=chunk) - There have been no changes in major risk management policies since year-end[203](index=203&type=chunk) [Liquidity Risk](index=44&type=section&id=Liquidity%20Risk) As of June 30, 2025, the Group's financial liabilities show total contractual undiscounted cash flows of RMB 7,644.5 million, with the majority (RMB 7,123.7 million) due within one year, primarily comprising borrowings, trade payables, and other payables Maturity Analysis of Financial Liabilities (June 30, 2025) | Indicator | Less than 1 year (RMB thousand) | 1 to 2 years (RMB thousand) | 2 to 5 years (RMB thousand) | Over 5 years (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Borrowings | 2,204,131 | – | – | – | 2,204,131 | | Interest payments on borrowings | 9,176 | – | – | – | 9,176 | | Lease liabilities | 23,496 | 12,541 | 8,900 | 1,907 | 46,844 | | Trade payables | 2,233,621 | – | – | – | 2,233,621 | | Other payables and accrued expenses (excluding non-financial liabilities) | 2,653,246 | – | – | – | 2,653,246 | | Other long-term payables | – | 497,497 | – | – | 497,497 | | **Total** | **7,123,670** | **510,038** | **8,900** | **1,907** | **7,644,515** | - Interest payments on borrowings are calculated based on borrowings held at the reporting date, without considering future events[207](index=207&type=chunk)[209](index=209&type=chunk) [Fair Value Estimation of Financial Instruments](index=45&type=section&id=Fair%20Value%20Estimation%20of%20Financial%20Instruments) The Group's financial instruments measured at fair value primarily consist of bank structured deposits, amounting to RMB 1,318.7 million as of June 30, 2025, classified as Level 3, with no transfers between fair value hierarchy levels during the review period Financial Assets at Fair Value Through Profit or Loss | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss (Level 3) | 1,318,701 | 1,676,730 | - Financial assets primarily consist of structured deposits purchased from major financial institutions in mainland China, with management prudently investing in low-risk products[213](index=213&type=chunk)[214](index=214&type=chunk) - No transfers were made between fair value hierarchy levels used to measure the fair value of financial instruments for the six months ended June 30, 2025[213](index=213&type=chunk) [Fair Value of Financial Assets and Liabilities Measured at Amortized Cost](index=46&type=section&id=Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities%20Measured%20at%20Amortized%20Cost) At the reporting date, the fair values of the Group's financial assets and liabilities measured at amortized cost, including trade and bills receivables, deposits, other receivables, cash, bank balances, trade payables, other payables, accrued expenses, borrowings, and lease liabilities, were approximate to their carrying amounts - The fair values of trade and bills receivables, deposits and other receivables, cash and bank balances, trade payables, other payables and accrued expenses, borrowings, and lease liabilities are approximate to their carrying amounts[215](index=215&type=chunk) [Segment Information](index=47&type=section&id=Segment%20Information) The Group's executive directors, as chief operating decision makers, review business performance and allocate resources primarily from a product perspective, assessing beverage, food, and other segments based on segment profit or loss, with over 90% of activities in China - Executive directors review business from a product perspective, assessing beverage, food, and other segment performance, as over **90%** of sales and business activities are conducted in China[216](index=216&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk) 2025 H1 Segment Performance | Indicator | Beverages (RMB thousand) | Food (RMB thousand) | Other (RMB thousand) | Unallocated (RMB thousand) | The Group (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 10,788,114 | 5,382,183 | 916,292 | – | 17,086,589 | | Segment profit╱(loss) | 1,544,493 | 189,500 | 104,996 | (190,247) | 1,648,742 | | Depreciation and amortization | 369,106 | 117,190 | 20,656 | 33,955 | 540,907 | | Additions to non-current assets | 583,964 | 31,008 | 5,482 | 21,351 | 641,805 | 2025 H1 Segment Assets and Liabilities | Indicator | Beverages (RMB thousand) | Food (RMB thousand) | Other (RMB thousand) | Unallocated (RMB thousand) | The Group (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Assets | 9,209,556 | 3,656,555 | 1,037,756 | 8,359,578 | 22,263,445 | | Investments accounted for using equity method | 726,704 | – | – | 129,484 | 856,188 | | **Total assets** | | | | | **23,119,633** | | Liabilities | 5,559,524 | 3,642,205 | 401,083 | 680,259 | 10,283,071 | | **Total liabilities** | | | | | **10,283,071** | [Operating Profit](index=50&type=section&id=Operating%20Profit) For the six months ended June 30, 2025, operating profit components included RMB 9,393.1 million for inventory costs, RMB 959.0 million for promotion and advertising, RMB 2,371.9 million for employee benefits, and RMB 55.85 million in government grant income Analysis of Operating Profit Items | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories | 9,393,127 | 8,543,939 | | Promotion and advertising expenses | 959,013 | 1,033,030 | | Employee benefits expenses | 2,371,852 | 2,277,829 | | Transportation expenses | 799,465 | 719,947 | | Depreciation and amortization | 540,907 | 555,457 | | Government grants | (55,850) | (49,390) | - Government grant income refers to subsidies received from various local governments in China as a return for the Group's subsidiaries' contributions to their local economies and development, and are unconditional[231](index=231&type=chunk) [Finance Income – Net](index=51&type=section&id=Finance%20Income%20%E2%80%93%20Net) For the six months ended June 30, 2025, the Group's net finance income significantly increased to RMB 119.0 million, primarily due to higher interest income from cash and bank balances and long-term fixed deposits, coupled with a substantial reduction in net exchange losses Finance Income – Net | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance income | 131,146 | 117,774 | | Finance costs | (12,111) | (53,432) | | **Finance income – net** | **119,035** | **64,342** | - Net exchange losses within finance costs significantly decreased from **RMB 38.6 million** in the first half of 2024 to **RMB 2.1 million** in the first half of 2025[233](index=233&type=chunk) [Income Tax Expense](index=51&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group's income tax expense was RMB 492.0 million, with mainland China subsidiaries subject to a 25% corporate income tax rate (15% for some western regions), and the Group is assessing the impact of Hong Kong's OECD Pillar Two legislation Income Tax Expense | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax (Mainland China corporate income tax) | 424,816 | 351,239 | | Deferred income tax | 67,202 | 6,301 | | **Income tax expense** | **492,018** | **357,540** | - Mainland China subsidiaries are subject to a corporate income tax rate of **25%**, with some companies in western regions enjoying a preferential tax rate of **15%**[237](index=237&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) - Hong Kong has announced that OECD Pillar Two legislation will be effective from January 1, 2025, and the Group is assessing its top-up tax impact[244](index=244&type=chunk)[246](index=246&type=chunk) [Earnings Per Share](index=53&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, profit attributable to equity holders was RMB 1,286.7 million, resulting in basic and diluted earnings per share of RMB 29.79 cents, an increase from the prior year, with no potential dilutive ordinary shares Earnings Per Share | Indicator | 6 months ended June 30, 2025 | 6 months ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (RMB thousand) | 1,286,710 | 965,693 | | Weighted average number of ordinary shares outstanding (thousand shares) | 4,319,334 | 4,319,334 | | **Basic earnings per share (RMB cents)** | **29.79** | **22.36** | - Diluted earnings per share were consistent with basic earnings per share as there were no potential dilutive ordinary shares[249](index=249&type=chunk) [Dividends](index=53&type=section&id=Dividends) Dividends related to the year ended December 31, 2024, totaling approximately RMB 1,849 million, were paid in June 2025, and the Directors do not recommend an interim dividend for the six months ended June 30, 2025 - Dividends related to 2024, approximately **RMB 1,849 million**, were paid in June 2025[250](index=250&type=chunk)[251](index=251&type=chunk) - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[252](index=252&type=chunk) [Property, Plant and Equipment, Right-of-Use Assets, Investment Properties and Intangible Assets](index=54&type=section&id=Property%2C%20Plant%20and%20Equipment%2C%20Right-of-Use%20Assets%2C%20Investment%20Properties%20and%20Intangible%20Assets) As of June 30, 2025, the Group's net book value of property, plant and equipment was RMB 6,168.0 million, right-of-use assets RMB 1,449.3 million, investment properties RMB 318.3 million, and intangible assets RMB 7.0 million, with total additions to non-current assets of RMB 641.8 million during the review period Net Book Value of Non-Current Assets | Indicator | June 30, 2025 (RMB thousand) | January 1, 2025 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment | 6,168,021 | 6,044,750 | | Right-of-use assets | 1,449,332 | 1,513,997 | | Investment properties | 318,280 | 330,583 | | Intangible assets | 6,968 | 7,486 | - For the six months ended June 30, 2025, total additions to non-current assets amounted to **RMB 641.8 million**[253](index=253&type=chunk) [Investments Accounted for Using the Equity Method](index=55&type=section&id=Investments%20Accounted%20for%20Using%20the%20Equity%20Method) As of June 30, 2025, the Group's total investments accounted for using the equity method amounted to RMB 856.2 million, comprising investments in associates of RMB 496.2 million and joint ventures of RMB 360.0 million, with a slight decrease from year-end due to dividends and reduced profit attributable to joint ventures Investments Accounted for Using the Equity Method | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Associates | 496,223 | 485,867 | | Joint ventures | 359,965 | 391,610 | | **Total** | **856,188** | **877,477** | - Changes in investments include dividends receivable (associates **RMB 15.995 million**, joint ventures **RMB 16.245 million**) and share of profit after tax (associates **RMB 26.352 million**, joint ventures **RMB (15.401) million**)[255](index=255&type=chunk) [Trade and Bills Receivables](index=56&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, the Group's total trade and bills receivables amounted to RMB 695.8 million, with net trade receivables of RMB 686.4 million, and the majority due within 90 days, consistent with the Group's credit policy Trade and Bills Receivables | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables, net | 686,434 | 595,615 | | Bills receivables | 9,341 | 31,941 | | **Trade and bills receivables** | **695,775** | **627,556** | - The Group typically grants customers a credit period of **60 to 90 days**[256](index=256&type=chunk) - As of June 30, 2025, **RMB 673.8 million** of total trade receivables were due within 90 days[258](index=258&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=57&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group's financial assets at fair value through profit or loss, primarily bank structured deposits, had a fair value of RMB 1,318.7 million as of June 30, 2025, representing 5.70% of total assets, with expected maturity dates ranging from July 2025 to April 2026 Financial Assets at Fair Value Through Profit or Loss | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Structured deposits (fair value) | 1,318,701 | 1,676,730 | | Weight of total assets | 5.70% | 7.17% | - Financial assets refer to bank structured deposits, with changes in fair value recognized in "Other gains – net" in the statement of profit or loss[260](index=260&type=chunk) - Expected maturity dates range from **July 11, 2025, to April 9, 2026**[261](index=261&type=chunk) [Share Capital and Share Premium](index=58&type=section&id=Share%20Capital%20and%20Share%20Premium) As of June 30, 2025, the Company's issued and fully paid share capital remained unchanged, totaling RMB 4,869.663 million, comprising 4,319,334,000 shares, share capital of RMB 39.764 million, and share premium of RMB 4,829.899 million Share Capital and Share Premium | Indicator | January 1, 2025 and June 30, 2025 (RMB thousand) | | :--- | :--- | | Number of shares | 4,319,334,000 | | Share capital | 39,764 | | Share premium | 4,829,899 | | **Total** | **4,869,663** | [Trade Payables](index=58&type=section&id=Trade%20Payables) As of June 30, 2025, the Group's total trade payables decreased to RMB 2,233.6 million, with RMB 1,627.0 million due within 30 days, consistent with supplier credit terms, and their carrying amounts approximate fair values due to short-term maturity Trade Payables | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables (third parties) | 1,433,491 | 1,581,911 | | Trade payables (related parties) | 800,130 | 701,593 | | **Total** | **2,233,621** | **2,283,504** | - Suppliers typically grant the Group a credit period of **30 to 90 days**[263](index=263&type=chunk) - As of June 30, 2025, **RMB 1,626.974 million** of trade payables were due within 30 days[263](index=263&type=chunk) [Borrowings](index=59&type=section&id=Borrowings) As of June 30, 2025, the Group's unsecured bank borrowings significantly increased to RMB 2,204.1 million, all current and RMB-denominated, with a weighted average effective interest rate of 1.80% and unutilized facilities of RMB 5,866.5 million Borrowings Status | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank borrowings, unsecured (current) | 2,204,131 | 201,264 | | **Total** | **2,204,131** | **201,264** | - The carrying amounts of the Group's borrowings are all denominated in **RMB** and are due within one year[270](index=270&type=chunk) - As of June 30, 2025, the weighted average effective interest rate for bank borrowings was **1.80%** (December 31, 2024: 2.89%)[273](index=273&type=chunk)[274](index=274&type=chunk) - The Group had unutilized bank borrowing facilities of **RMB 5,866.5 million**[276](index=276&type=chunk) [Related Party Transactions](index=61&type=section&id=Related%20Party%20Transactions) The Group engages in various related party transactions with its ultimate holding company, Uni-President Enterprises Corporation, and its affiliates, including significant purchases of raw materials and finished goods, sales, and other services - The Group's ultimate holding company is Uni-President Enterprises Corporation[277](index=277&type=chunk) Summary of 2025 H1 Related Party Transactions | Transaction Type | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of raw materials and finished goods | 159,441 | 110,538 | | Purchases of raw materials and finished goods | 3,727,432 | 3,442,218 | | Logistics service expenses | 26,403 | 3,450 | | Consulting service income | 29,500 | 29,236 | | Rental income | 37,464 | 38,080 | - Key management personnel compensation was **RMB 6.609 million** (first half of 2024: RMB 4.817 million)[280](index=280&type=chunk)

[Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) Provides a high-level overview of the company's financial performance for the interim period, highlighting key growth metrics [Key Financial Data](index=1&type=section&id=Key%20Financial%20Data) For the six months ended June 30, 2025, the company achieved explosive growth, with significant increases in sales performance, revenue, gross profit, profit before tax, and profit for the period, including a **251.0% year-on-year revenue growth** and **285.8% profit for the period growth** Key Financial Data (Thousand RMB) | Indicator (Thousand RMB) | 2025 (Unaudited) | 2024 (Unaudited) | Year-on-Year Change (%) | | :----------------------- | :--------------- | :--------------- | :---------------------- | | Sales Performance | 14,183,643 | 4,059,026 | 249.4 | | Revenue | 12,354,239 | 3,520,185 | 251.0 | | Gross Profit | 4,705,208 | 1,454,982 | 223.4 | | Profit Before Tax | 2,963,687 | 780,396 | 279.8 | | Profit for the Period | 2,267,554 | 587,812 | 285.8 | | Share-based Payment Expenses | 83,298 | 14,016 | 494.3 | | Non-IFRS Adjusted Net Profit | 2,350,852 | 601,828 | 290.6 | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) Presents the company's interim condensed consolidated financial statements, including the income statement and balance sheet [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported substantial growth in revenue and profit, with **profit for the period reaching RMB2,267,554 thousand** and **basic earnings per share at RMB13.38** Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Thousand RMB) | Indicator (Thousand RMB) | 2025 (Unaudited) | 2024 (Unaudited) | | :----------------------- | :--------------- | :--------------- | | Revenue | 12,354,239 | 3,520,185 | | Cost of Sales | (7,649,031) | (2,065,203) | | Gross Profit | 4,705,208 | 1,454,982 | | Profit Before Tax | 2,963,687 | 780,396 | | Income Tax Expense | (696,133) | (192,584) | | Profit for the Period | 2,267,554 | 587,812 | | Basic Earnings Per Share (RMB) | 13.38 | 4.11 | | Diluted Earnings Per Share (RMB) | 13.34 | 4.11 | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and shareholders' equity significantly increased, with a notable rise in net current assets, reflecting expanded scale and enhanced financial strength Interim Condensed Consolidated Statement of Financial Position (Thousand RMB) | Indicator (Thousand RMB) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :----------------------- | :------------------------ | :-------------------------- | | Total Non-current Assets | 713,312 | 503,476 | | Total Current Assets | 12,749,826 | 5,833,282 | | Total Current Liabilities | 5,582,232 | 2,248,566 | | Net Current Assets | 7,167,594 | 3,584,716 | | Net Assets | 7,660,860 | 3,920,323 | | Total Equity | 7,660,860 | 3,920,323 | [Notes to the Interim Condensed Consolidated Financial Information](index=4&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) Provides detailed explanatory notes to the interim condensed consolidated financial statements, covering accounting policies, segment information, and key financial items [1. Company and Group Information](index=4&type=section&id=1.%20Company%20and%20Group%20Information) Laopu Gold Co Ltd is incorporated in China, with its H-shares listed on the Hong Kong Stock Exchange since June 28, 2024, primarily engaging in jewelry production, sales, and maintenance services - The company is incorporated in China, with its H-shares listed on the Main Board of the Hong Kong Stock Exchange since June 28, 2024[6](index=6&type=chunk) - The Group's principal activities are the production and sale of jewelry and the provision of maintenance and repair services[6](index=6&type=chunk) [2.1 Basis of Preparation](index=4&type=section&id=2.1%20Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with IAS 34, presented in RMB, with all figures rounded to the nearest thousand - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34[7](index=7&type=chunk) - Financial data is presented in RMB, with all figures rounded to the nearest thousand[7](index=7&type=chunk) [2.2 Changes in Accounting Policies and Disclosures](index=4&type=section&id=2.2%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) Accounting policies for the interim financial information remain consistent with the prior year, except for the initial adoption of revised IFRS, which had no material financial impact - The accounting policies adopted in preparing the interim condensed consolidated financial information are consistent with those applied in the Group’s annual consolidated financial statements for the prior year, except for the initial adoption of revised International Financial Reporting Standards[8](index=8&type=chunk) - The adoption of the revised International Financial Reporting Standards had no material financial impact on the interim condensed consolidated financial information[9](index=9&type=chunk) [3. Operating Segment Information](index=4&type=section&id=3.%20Operating%20Segment%20Information) The Group operates as a single reportable segment, with management reviewing overall financial performance, and both Mainland China and overseas revenues showing significant growth, particularly overseas - The Group does not categorize its business units by services and products, operating as a single reportable operating segment[10](index=10&type=chunk) Revenue by Geographical Market (Thousand RMB) | Geographical Market | 2025 (Thousand RMB) | 2024 (Thousand RMB) | | :------------------ | :------------------ | :------------------ | | Mainland China | 10,757,701 | 3,232,628 | | Overseas | 1,596,538 | 287,557 | | Total | 12,354,239 | 3,520,185 | - For the six months ended June 30, 2025 and 2024, no revenue from sales to a single external customer or a group of external customers under common control accounted for 10% or more of the Group's revenue[13](index=13&type=chunk) [4. Revenue, Other Income and Gains](index=6&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) The Group's revenue primarily stems from goods sales, predominantly pure gold products, with growth in maintenance services and other income mainly from interest and government grants Revenue by Type of Goods or Services (Thousand RMB) | Type of Goods or Services | 2025 (Thousand RMB) | 2024 (Thousand RMB) | | :------------------------ | :------------------ | :------------------ | | Sale of Goods | 12,352,193 | 3,519,833 | | Maintenance and Repair Services | 2,046 | 352 | | Total | 12,354,239 | 3,520,185 | Revenue by Product or Service Type (Thousand RMB) | Product or Service Type | 2025 (Thousand RMB) | 2024 (Thousand RMB) | | :---------------------- | :------------------ | :------------------ | | Pure Gold Products | 12,345,875 | 3,518,820 | | Others | 8,364 | 1,365 | | Total | 12,354,239 | 3,520,185 | Other Income and Gains (Thousand RMB) | Other Income and Gains (Thousand RMB) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Interest Income | 2,792 | 596 | | Government Grants | 173 | 183 | | Exchange Differences | – | 555 | | Total | 3,993 | 1,847 | [5. Finance Costs](index=8&type=section&id=5.%20Finance%20Costs) For the six months ended June 30, 2025, finance costs significantly increased to **RMB42,207 thousand**, primarily due to a substantial rise in bank borrowing interest Finance Costs (Thousand RMB) | Finance Costs (Thousand RMB) | 2025 | 2024 | | :--------------------------- | :--- | :--- | | Interest on Bank Borrowings | 35,090 | 3,510 | | Interest on Lease Liabilities | 6,936 | 7,107 | | Others | 181 | 97 | | Total | 42,207 | 10,714 | [6. Profit Before Tax](index=8&type=section&id=6.%20Profit%20Before%20Tax) Profit before tax is calculated after deducting various expenses, including significantly increased cost of inventories sold, lease payments not measured as lease liabilities, equity-settled share-based payments, and employee benefit expenses Expenses Items (Thousand RMB) | Expense Item (Thousand RMB) | 2025 | 2024 | | :-------------------------- | :-------- | :-------- | | Cost of Inventories Sold | 7,649,031 | 2,065,203 | | Depreciation of Property, Plant and Equipment | 28,641 | 17,272 | | Depreciation of Right-of-use Assets | 88,424 | 63,214 | | Lease Payments Not Measured as Lease Liabilities | 816,840 | 192,944 | | Equity-settled Share-based Payments | 83,298 | 14,016 | | Employee Benefit Expenses (Wages and Salaries) | 323,550 | 202,004 | [7. Income Tax Expense](index=9&type=section&id=7.%20Income%20Tax%20Expense) The Group pays income tax based on rates in different jurisdictions, including China (25%), Hong Kong (8.25%-16.5%), Macau (3%-12%), and Singapore (17%), with a substantial increase in income tax expense for the period - Mainland China subsidiaries are subject to Enterprise Income Tax at a rate of **25%**[22](index=22&type=chunk) - Hong Kong profits tax is provided at a two-tiered tax rate of **8.25% to 16.5%**[23](index=23&type=chunk) Income Tax Expense (Thousand RMB) | Income Tax Expense (Thousand RMB) | 2025 | 2024 | | :-------------------------------- | :------ | :------ | | Current | 718,743 | 191,622 | | Deferred | (22,610) | 962 | | Total | 696,133 | 192,584 | [8. Dividends](index=9&type=section&id=8.%20Dividends) The company declared and paid a **final dividend of RMB6.35 per share for 2024** and proposed an **interim dividend of RMB9.59 per share for 2025** to reward investors - The company declared a final dividend of **RMB6.35 per share** for 2024 (totaling approximately **RMB1,096 million**), which has been fully paid[27](index=27&type=chunk) - The Board recommends an interim dividend of **RMB9.59 per share** for the six months ended June 30, 2025, subject to shareholders' approval[27](index=27&type=chunk) [9. Earnings Per Share Attributable to Owners of the Company](index=10&type=section&id=9.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Both basic and diluted earnings per share are calculated based on profit attributable to owners and the weighted average number of ordinary shares outstanding, showing significant growth this period Earnings Per Share Calculation | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :-------- | :--------------- | :--------------- | | Profit attributable to owners of the company (Thousand RMB) | 2,267,554 | 587,812 | | Weighted average number of ordinary shares outstanding during the period | 169,485,871 | 143,011,218 | | Weighted average number of ordinary shares for diluted EPS | 169,943,247 | 143,011,218 | [10. Inventories](index=11&type=section&id=10.%20Inventories) As of June 30, 2025, total inventories significantly increased to **RMB8,684,720 thousand**, primarily comprising finished goods, raw materials, and work-in-progress, to meet business growth demands Inventories (Thousand RMB) | Inventory Item (Thousand RMB) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :---------------------------- | :------------------------ | :-------------------------- | | Finished Goods | 5,530,415 | 2,547,046 | | Raw Materials | 2,032,615 | 837,219 | | Work-in-progress | 1,119,461 | 700,580 | | Total | 8,684,720 | 4,087,849 | - For the six months ended June 30, 2025, the amount of inventories written down to net realizable value was **RMB1,511 thousand**[36](index=36&type=chunk) [11. Trade Receivables](index=11&type=section&id=11.%20Trade%20Receivables) Trade receivables, mainly from store sales and online platforms, typically have 30 or 60-day credit terms, with **RMB844,463 thousand** outstanding as of June 30, 2025, predominantly due within one month Trade Receivables (Thousand RMB) | Trade Receivables (Thousand RMB) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :------------------------------- | :------------------------ | :-------------------------- | | Trade Receivables | 851,859 | 812,001 | | Less: Net Impairment | (7,396) | (10,785) | | Total | 844,463 | 801,216 | Ageing Analysis of Trade Receivables (Thousand RMB) | Ageing Analysis (Thousand RMB) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :----------------------------- | :------------------------ | :-------------------------- | | Within 1 Month | 533,417 | 643,547 | | 1 to 2 Months | 122,511 | 73,703 | | 2 to 3 Months | 168,423 | 49,881 | | Over 3 Months | 20,112 | 34,085 | | Total | 844,463 | 801,216 | [12. Trade Payables](index=12&type=section&id=12.%20Trade%20Payables) As of June 30, 2025, total trade payables amounted to **RMB503,844 thousand**, with most due within one month, reflecting short credit terms Ageing Analysis of Trade Payables (Thousand RMB) | Ageing Analysis (Thousand RMB) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :----------------------------- | :------------------------ | :-------------------------- | | Within 1 Month | 467,061 | 204,607 | | 1 to 2 Months | 34,633 | 17,862 | | 2 to 3 Months | 1,616 | 3,701 | | Over 3 Months | 534 | 2,027 | | Total | 503,844 | 228,197 | - Trade payables are generally settled within one to three months after the invoice date and are interest-free[41](index=41&type=chunk) [13. Interest-bearing Bank Borrowings](index=12&type=section&id=13.%20Interest-bearing%20Bank%20Borrowings) As of June 30, 2025, total interest-bearing bank borrowings substantially increased to **RMB3,183,029 thousand**, primarily unsecured bank loans to support business development Interest-bearing Bank Borrowings (Thousand RMB) | Borrowing Type | Effective Interest Rate (%) | Maturity | June 30, 2025 (Thousand RMB) | December 31, 2024 (Thousand RMB) | | :------------------- | :-------------------------- | :------- | :--------------------------- | :------------------------------- | | Bank Loans – Unsecured | 2.54-5.00 | 2026 | 3,183,029 | 1,373,461 | | Total | | | 3,183,029 | 1,373,461 | - All borrowings are denominated in RMB, except for **HKD78,000,000** which is denominated in HKD[43](index=43&type=chunk) [14. Share Capital](index=13&type=section&id=14.%20Share%20Capital) As of June 30, 2025, the company's share capital increased to **RMB172,676,700**, mainly due to the initial public offering and placing of new ordinary shares Share Capital (RMB) | Share Capital (RMB) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :------------------ | :------------------------ | :-------------------------- | | Ordinary Shares of RMB1.00 each | 172,676,700 | 168,366,700 | - In 2024, **25,724,200 ordinary shares** were issued due to the initial public offering and the exercise of the over-allotment option[44](index=44&type=chunk) - In 2025, **4,310,000 ordinary shares** were issued due to the placing of new ordinary shares[44](index=44&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) Provides management's perspective on the company's operational and financial performance, strategic initiatives, and future outlook [Business Review](index=14&type=section&id=Business%20Review) Laopu Gold, as the leading brand in 'Ancient Gold Craftsmanship,' achieved substantial revenue and gross profit growth during the reporting period, driven by expanded brand influence, continuous product innovation, and active channel expansion - The company is certified by the China Gold Association as the "No 1 Professional Brand in Chinese Ancient Handcrafted Goldware"[45](index=45&type=chunk)[47](index=47&type=chunk) - Revenue for the reporting period was approximately **RMB12,354.24 million**, representing a year-on-year increase of approximately **251.0%**[45](index=45&type=chunk) - Gross profit amounted to approximately **RMB4,705.21 million**, a year-on-year increase of approximately **223.4%**[45](index=45&type=chunk) [Brand Influence and Market Advantages](index=14&type=section&id=Brand%20Influence%20and%20Market%20Advantages) The company has cultivated significant brand advantages in the ancient gold industry, maintaining top average revenue and sales per square meter in Mainland China, achieving online sales breakthroughs, and attracting a high-overlap luxury consumer base - In the first half of 2025, the average sales performance per single shopping mall was approximately **RMB459 million**, ranking first in average revenue and sales per square meter among single shopping malls in Mainland China[47](index=47&type=chunk) - During the 2025 Tmall 618 event, the Tmall flagship store topped the gold category sales performance list, with transaction volume exceeding **RMB1,000 million**[49](index=49&type=chunk) - Loyal members reached approximately **480,000**, an increase of **130,000** from the end of 2024[49](index=49&type=chunk) - The average overlap rate of consumers with the top five international luxury brands (e.g., Louis Vuitton, Hermès) was as high as **77.3%**, validating the brand's high-end positioning[49](index=49&type=chunk) [Continuous Product Optimization and Innovation](index=16&type=section&id=Continuous%20Product%20Optimization%20and%20Innovation) The company leads product development trends in ancient gold craftsmanship through original design and process innovation, holding over **2,100 original designs** and multiple patents, consistently launching competitive distinctive products - The company is the first brand in China to promote the "Ancient Gold Craftsmanship" concept, the first to launch "Pure Gold Inlaid Diamond" products, and the first to introduce "Gold Filigree Enamel" products[50](index=50&type=chunk) - As of June 30, 2025, over **2,100 original designs** have been created, holding **273 domestic patents**, **1,505 copyrights for works**, and **246 overseas patents**[51](index=51&type=chunk) [Channel Expansion and Store Optimization](index=16&type=section&id=Channel%20Expansion%20and%20Store%20Optimization) The company actively expanded its channels, operating **41 self-operated stores in 16 cities** as of June 30, 2025, successfully opening its first overseas store in Singapore, and entering 9 of the top 10 domestic commercial centers - As of June 30, 2025, the company operated **41 self-operated stores** across **16 cities**, all located in **29 renowned commercial centers**[52](index=52&type=chunk) - In the first half of 2025, the company entered **3 new commercial centers** and optimized and expanded **2 stores** in existing commercial centers[54](index=54&type=chunk) - On June 21, 2025, the Singapore Marina Bay Sands store opened, marking Laopu Gold's first overseas store[55](index=55&type=chunk) - The company has completed its entry into **9 of the top 10 domestic commercial centers**, with the remaining one (Shanghai Plaza 66) scheduled to open in mid-October 2025[55](index=55&type=chunk) [Outlook and Prospects](index=17&type=section&id=Outlook%20and%20Prospects) The company is confident in future growth, aiming to expand brand market momentum, continue original product design and process innovation, and pursue a 'brand internationalization and market globalization' strategy to become the world's leading gold brand - The company will consistently adhere to its brand positioning, expand brand market momentum, and continuously innovate in original product design and craftsmanship[56](index=56&type=chunk) - It is committed to a market strategy of "brand internationalization and market globalization," actively expanding market reach and scope[56](index=56&type=chunk) - The goal is to build the world's leading gold brand with significant intangible cultural heritage value and strong international competitiveness[56](index=56&type=chunk) [Revenue Analysis](index=18&type=section&id=Revenue%20Analysis) During the reporting period, revenue increased by **251.0% year-on-year to RMB12,354.24 million**, with store sales remaining the primary source, online platform revenue slightly increasing, pure gold products contributing almost all revenue, and strong growth in overseas business aligning with internationalization strategy - Revenue for the reporting period was approximately **RMB12,354.24 million**, an increase of approximately **251.0%** compared to the same period in 2024[58](index=58&type=chunk) - Same-store sales growth rate was approximately **200.8%**[60](index=60&type=chunk) [Revenue by Sales Channel](index=18&type=section&id=Revenue%20by%20Sales%20Channel) Store sales remain the main revenue source, accounting for approximately **86.9% of total revenue** with a **243.2% year-on-year increase**, while online platform revenue slightly grew to **13.1%**, increasing by **313.3%** Revenue by Sales Channel (Thousand RMB) | Sales Channel | 2025 Revenue (Thousand RMB) | 2025 Revenue Share (%) | 2024 Revenue (Thousand RMB) | 2024 Revenue Share (%) | Revenue Year-on-Year Change (%) | | :------------ | :-------------------------- | :--------------------- | :-------------------------- | :--------------------- | :------------------------------ | | Stores | 10,736,238 | 86.9 | 3,128,721 | 88.9 | 243.2 | | Online Platforms | 1,618,001 | 13.1 | 391,464 | 11.1 | 313.3 | | Total | 12,354,239 | 100.0 | 3,520,185 | 100.0 | 251.0 | [Revenue by Product/Service Category](index=19&type=section&id=Revenue%20by%20Product%2FService%20Category) Pure gold product sales contributed almost all revenue, growing by **250.9% year-on-year**, while other products and services revenue increased by **512.7%**, albeit from a very small base Revenue by Product/Service Category (Thousand RMB) | Product/Service Category | 2025 Revenue (Thousand RMB) | 2025 Revenue Share (%) | 2024 Revenue (Thousand RMB) | 2024 Revenue Share (%) | Revenue Year-on-Year Change (%) | | :----------------------- | :-------------------------- | :--------------------- | :-------------------------- | :--------------------- | :------------------------------ | | Pure Gold Products | 12,345,875 | 99.9 | 3,518,820 | 100.0 | 250.9 | | Other Products and Services | 8,364 | 0.1 | 1,365 | –* | 512.7 | | Total | 12,354,239 | 100.0 | 3,520,185 | 100.0 | 251.0 | [Revenue by Geographical Region](index=19&type=section&id=Revenue%20by%20Geographical%20Region) Mainland China revenue accounted for **87.1%**, growing by **232.8% year-on-year**, while overseas revenue, representing **12.9%**, surged by **455.2%**, demonstrating the effectiveness of the internationalization strategy Revenue by Geographical Region (Thousand RMB) | Geographical Market | 2025 Revenue (Thousand RMB) | 2025 Revenue Share (%) | 2024 Revenue (Thousand RMB) | 2024 Revenue Share (%) | Revenue Year-on-Year Change (%) | | :------------------ | :-------------------------- | :--------------------- | :-------------------------- | :--------------------- | :------------------------------ | | Mainland China | 10,757,701 | 87.1 | 3,232,628 | 91.8 | 232.8 | | Overseas | 1,596,538 | 12.9 | 287,557 | 8.2 | 455.2 | | Total | 12,354,239 | 100.0 | 3,520,185 | 100.0 | 251.0 | [Gross Profit Margin and Net Profit Margin](index=20&type=section&id=Gross%20Profit%20Margin%20and%20Net%20Profit%20Margin) Gross profit margin slightly declined to approximately **38.1%** due to rapid gold price increases, but non-IFRS adjusted net profit margin improved from **17.1% to 19.0%**, benefiting from economies of scale driven by explosive performance growth - From January to April 2025, gold prices rapidly increased unilaterally, with a rise of **21.53%**[66](index=66&type=chunk) - The company's gross profit margin for the reporting period slightly declined to approximately **38.1%** compared to previous periods[66](index=66&type=chunk) - The non-IFRS adjusted net profit margin increased from **17.1%** in the same period of 2024 to **19.0%**[66](index=66&type=chunk) [Selling and Administrative Expenses, etc](index=20&type=section&id=Selling%20and%20Administrative%20Expenses%2C%20etc) During the reporting period, selling and distribution expenses, administrative expenses, and R&D expenses all significantly increased, primarily due to business expansion, higher employee numbers and remuneration, and increased operational costs Expenses Items (Thousand RMB) | Expense Item (Thousand RMB) | 2025 | 2024 | Year-on-Year Change (%) | | :-------------------------- | :-------- | :------ | :---------------------- | | Selling and Distribution Expenses | 1,464,465 | 532,153 | 175.2 | | Administrative Expenses | 211,121 | 124,628 | 69.4 | | Research and Development Expenses | 24,511 | 6,555 | 273.9 | | Other Expenses, Net | 3,210 | 2,383 | 34.7 | | Total | 1,703,307 | 665,719 | 155.9 | [Selling and Distribution Expenses](index=20&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by **175.2% to RMB1,464.47 million**, mainly driven by higher mall rents and fees, as well as sales team expansion and increased remuneration - Over **97%** of selling and distribution expenses originated from mall rental fees, e-commerce platform transaction service fees, sales team employee costs, depreciation, and amortization[67](index=67&type=chunk) [Administrative Expenses](index=20&type=section&id=Administrative%20Expenses) Administrative expenses increased by **69.4% to RMB211.12 million**, primarily due to an increase in administrative staff and remuneration, along with higher bank charges and other expenses [Research and Development Expenses](index=21&type=section&id=Research%20and%20Development%20Expenses) R&D expenses increased by **273.9% to RMB24.51 million**, primarily due to an increase in R&D staff and remuneration to support product development capabilities [Other Expenses, Net](index=21&type=section&id=Other%20Expenses%2C%20Net) Other expenses, net, increased by **34.7% to RMB3.21 million**, primarily attributable to exchange losses [Income Tax Expense](index=21&type=section&id=Income%20Tax%20Expense) Income tax expense for the reporting period was approximately **RMB696.13 million**, a significant increase from the prior year, primarily due to higher profit before tax - Income tax expense for the reporting period was approximately **RMB696.13 million**, compared to approximately **RMB192.58 million** in the same period of 2024[73](index=73&type=chunk) - The increase in income tax expense was primarily due to the growth in profit before income tax expense[73](index=73&type=chunk) [Non-IFRS Financial Measure Adjusted Net Profit](index=22&type=section&id=Non-IFRS%20Financial%20Measure%20Adjusted%20Net%20Profit) To supplement IFRS, the company uses non-IFRS adjusted net profit, excluding share-based payment expenses, to better reflect operating performance, which showed substantial growth during the period - Non-IFRS adjusted net profit refers to net profit excluding share-based payment expenses[75](index=75&type=chunk) Non-IFRS Adjusted Net Profit (Thousand RMB) | Indicator (Thousand RMB) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :----------------------------- | :----------------------------- | | Profit for the Period | 2,267,554 | 587,812 | | Adjustment: Share-based Payment Expenses | 83,298 | 14,016 | | Non-IFRS Adjusted Net Profit | 2,350,852 | 601,828 | | Non-IFRS Adjusted Net Profit Margin | 19.0% | 17.1% | [Current Assets, Financial Resources and Gearing Ratio](index=23&type=section&id=Current%20Assets%2C%20Financial%20Resources%20and%20Gearing%20Ratio) The Group maintains prudent capital management, with significant increases in inventories, trade receivables, and cash and cash equivalents; operating cash flow was a net inflow after excluding gold procurement, and the gearing ratio slightly increased but remains reasonable - The Group adopts a conservative and prudent capital management and financial policy in its overall business operations[77](index=77&type=chunk) [Inventories](index=23&type=section&id=Inventories) Inventories increased by **112.5% from RMB4,087.85 million** at year-end 2024 to **RMB8,684.72 million** as of June 30, 2025, primarily to meet demand from store optimization, new store expansion, and performance growth, with inventory turnover days decreasing from 195 to 150 - The increase in inventories was mainly to meet the product increment demand for the company's store optimization, new store expansion, and performance growth[77](index=77&type=chunk) - Inventory turnover days decreased from **195 days** in 2024 to **150 days** in the reporting period[77](index=77&type=chunk) [Trade Receivables](index=23&type=section&id=Trade%20Receivables) Trade receivables increased from **RMB801.22 million** at year-end 2024 to **RMB844.46 million** as of June 30, 2025, with turnover days shortening from 25 to 12, mainly due to the adoption of self-checkout models in more directly operated stores - Trade receivables turnover days were **12 days**, a reduction from **25 days** in 2024[78](index=78&type=chunk) - The shortening of turnover days was primarily due to the company's implementation of self-checkout models in more directly operated stores within shopping malls[78](index=78&type=chunk) [Cash and Cash Equivalents](index=23&type=section&id=Cash%20and%20Cash%20Equivalents) Cash and cash equivalents increased from **RMB732.65 million** at year-end 2024 to **RMB2,515.84 million** as of June 30, 2025, primarily driven by sales collections and financing activities - The increase in cash and cash equivalents was primarily due to sales collections and financing activities[79](index=79&type=chunk) [Operating Cash Flow](index=23&type=section&id=Operating%20Cash%20Flow) Operating cash flow for the reporting period was a net outflow of approximately **RMB2,215.36 million**, which would be a net inflow of approximately **RMB154.05 million** if excluding the impact of proceeds used for gold raw material procurement - Operating cash flow for the reporting period was a net outflow of approximately **RMB2,215.36 million**[80](index=80&type=chunk) - Excluding the impact of approximately **RMB2,369.41 million** of placing proceeds used for gold raw material procurement, operating cash flow would be a net inflow of approximately **RMB154.05 million**[80](index=80&type=chunk) [Bank Loans](index=24&type=section&id=Bank%20Loans) Interest-bearing bank borrowings increased by **131.8% from RMB1,373.46 million** at year-end 2024 to **RMB3,183.03 million** as of June 30, 2025, primarily to meet product increment demand for store optimization, new store expansion, and performance growth - Interest-bearing bank borrowings increased by approximately **131.8%** compared to the end of 2024[83](index=83&type=chunk) - This increase was primarily to meet the product increment demand for the company's store optimization, new store expansion, and performance growth[83](index=83&type=chunk) [Gearing Ratio](index=24&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was approximately **43.10%**, an increase from **38.1%** at year-end 2024 - As of June 30, 2025, the Group's gearing ratio was approximately **43.10%** (December 31, 2024: **38.1%**)[82](index=82&type=chunk) [Material Investments, Acquisitions and Disposals](index=24&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) As of June 30, 2025, the company held no material investments and had no material acquisitions or disposals - As of June 30, 2025, the company held no material investments (each individual investment held did not constitute **5% or more** of the Group's total assets)[84](index=84&type=chunk) - For the six months ended June 30, 2025, the company had no material acquisitions or disposals[84](index=84&type=chunk) [Future Plans for Material Investments or Capital Assets](index=24&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The company has no specific plans for material investments or capital assets, other than expanding offline stores and establishing new overseas entities - The company has no specific plans for material investments or capital assets, other than expanding offline stores and establishing new overseas entities[85](index=85&type=chunk) [Pledges of Assets](index=24&type=section&id=Pledges%20of%20Assets) As of June 30, 2025, the company had no pledges of assets - As of June 30, 2025, the company had no pledges of assets[86](index=86&type=chunk) [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no contingent liabilities - As of June 30, 2025, the company had no contingent liabilities[87](index=87&type=chunk) [Exchange Rate Risk Management](index=24&type=section&id=Exchange%20Rate%20Risk%20Management) Management considers foreign currency exchange risk immaterial as most business transactions are completed in RMB; the company currently has no foreign currency hedging policy but monitors and considers hedging significant risks - Management considers foreign currency exchange risk to be immaterial, as most business transactions are conducted in Mainland China and settled in RMB[88](index=88&type=chunk) - As of June 30, 2025, the company had no foreign currency hedging policy but monitors foreign exchange risk and considers hedging when necessary[88](index=88&type=chunk) [Capital Expenditure](index=25&type=section&id=Capital%20Expenditure) Capital expenditure for the reporting period was approximately **RMB57.28 million**, primarily for new store openings and store upgrade renovations - Capital expenditure for the reporting period was approximately **RMB57.28 million**[89](index=89&type=chunk) - This was primarily used for new store openings and store upgrade renovations[89](index=89&type=chunk) [Human Resources, Employees and Remuneration Policy](index=25&type=section&id=Human%20Resources%2C%20Employees%20and%20Remuneration%20Policy) The company offers comprehensive remuneration and benefits, embraces diversity and inclusion, and uses equity incentive plans to attract and retain talent; as of June 30, 2025, the Group had **1,629 employees**, with sales and marketing personnel being the largest group - The company provides comprehensive remuneration and benefits, including wages, bonuses, maternity leave, and other allowances[90](index=90&type=chunk) - Equity incentive plans are used to motivate, attract, and retain outstanding talent[91](index=91&type=chunk) Employee Distribution by Function | Function | Number | Percentage of Total (%) | | :---------------- | :----- | :---------------------- | | Administrative | 363 | 22 | | Sales and Marketing | 719 | 44 | | Production | 526 | 33 | | Research and Design | 21 | 1 | | Total | 1,629 | 100 | [Restricted Share Unit Scheme](index=26&type=section&id=Restricted%20Share%20Unit%20Scheme) The company adopted a Restricted Share Unit Scheme on February 26, 2025, to attract, retain, and incentivize eligible participants by aligning their interests with the company and shareholders, with a total of **717,000 award shares** granted - The scheme aims to attract, retain, and reward eligible participants who contribute significantly to the Group's long-term growth, aligning their interests with those of the company and its shareholders[93](index=93&type=chunk) - A total of **597,000 award shares** were granted to **27 employees**, with an additional **120,000 award shares** granted to **21 employees**[94](index=94&type=chunk) - The maximum total number of H-shares that may be issued under the scheme's authorized limit is **9,477,486 H-shares**[94](index=94&type=chunk) [Events After the Reporting Period](index=26&type=section&id=Events%20After%20the%20Reporting%20Period) As of the announcement date, no material events requiring further disclosure or adjustment occurred after the reporting period, other than those disclosed in this interim results announcement - As of the date of this interim results announcement, no material events requiring further disclosure or adjustment occurred after the reporting period[96](index=96&type=chunk) [Use of Net Proceeds from Listing](index=26&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The net proceeds from the company's H-share listing, approximately **HKD957.1 million**, were primarily allocated to expanding the sales network; as of June 30, 2025, most funds were utilized as planned, with approximately **HKD62.3 million** remaining - The net proceeds from the global offering and the exercise of the over-allotment option totaled approximately **HKD957.1 million**[97](index=97&type=chunk) Use of Net Proceeds from Listing (Million HKD) | Intended Use of Net Proceeds | Allocation Percentage (%) | Net Proceeds Utilized as of June 30, 2025 (Million HKD) | Net Proceeds Unutilized as of June 30, 2025 (Million HKD) | | :--------------------------- | :------------------------ | :------------------------------------------------------ | :-------------------------------------------------------- | | Expanding Sales Network | 73.3 | 222.4 | – | | Maintaining Brand Positioning and Enhancing Brand Awareness | 11.3 | 12.9 | 18.6 | | Optimizing Internal IT Systems and Enhancing Automation and Informatization | 2.7 | 2.7 | 19.8 | | Strengthening R&D Capabilities | 2.7 | 1.3 | 23.9 | | General Working Capital and General Corporate Purposes | 10.0 | – | – | | Total | 100.0 | 239.3 | 62.3 | [Use of Net Proceeds from Placing](index=28&type=section&id=Use%20of%20Net%20Proceeds%20from%20Placing) In May 2025, the company completed a placing of **4,310,000 new H-shares**, generating net proceeds of approximately **HKD2,698.04 million**, primarily for core business development, including Mainland China store expansion, existing store optimization, and supporting same-store sales growth, with most funds utilized - The placing of **4,310,000 new H-shares** at a placing price of **HKD630.00 per share** generated net proceeds of approximately **HKD2,698.04 million**[99](index=99&type=chunk) Use of Net Proceeds from Placing (Million HKD) | Intended Use of Net Proceeds from Placing | Allocation Percentage (%) | Amount Utilized During Reporting Period (Million HKD) | Amount Unutilized as of June 30, 2025 (Million HKD) | | :---------------------------------------- | :------------------------ | :---------------------------------------------------- | :-------------------------------------------------- | | For Core Business Development | 80.0 | 2,058.43 | 100.00 | | - Mainland China Store Expansion | 20.7 | 558.00 | – | | - Optimization and Expansion of Existing Store Locations | 10.3 | 279.00 | – | | - Supporting Rapid Growth in Same-Store Sales | 49.0 | 1,221.43 | 100.00 | | For Replenishing Working Capital and General Corporate Purposes | 20.0 | 539.61 | – | | Total | 100.0 | 2,598.04 | 100.00 | [Interim Dividends](index=30&type=section&id=Interim%20Dividends) The Board recommends an interim dividend of **RMB9.59 per share** for the six months ended June 30, 2025, with the total dividend amount referencing **50% of the Group's undistributed profits** to reward investors - The Board recommends an interim dividend of **RMB9.59 per share** (June 30, 2024: nil)[103](index=103&type=chunk) - The proposed total dividend amount is referenced by the Board as **50%** of the Group's undistributed profits as of June 30, 2025[103](index=103&type=chunk) [Closure of Register of Members](index=30&type=section&id=Closure%20of%20Register%20of%20Members) To determine eligibility for attending the EGM and receiving interim dividends, the company will suspend H-share transfer registration from **November 13 to November 18, 2025**, and from **November 24 to November 27, 2025**, respectively - To determine the H-share shareholders entitled to attend the EGM, the H-share transfer registration will be suspended from **November 13 to November 18, 2025**[104](index=104&type=chunk) - To determine the shareholders entitled to receive the interim dividend, the H-share transfer registration will be suspended from **November 24 to November 27, 2025**[105](index=105&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) Outlines the company's commitment to maintaining high standards of corporate governance, including compliance with the Corporate Governance Code and securities trading standards [Corporate Governance Code](index=30&type=section&id=Corporate%20Governance%20Code) The Group is committed to high corporate governance standards and has complied with the Corporate Governance Code, with deviations noted for the combined roles of Chairman and CEO, and the dividend policy not yet being effective - The company has consistently complied with all applicable code provisions of the Corporate Governance Code[106](index=106&type=chunk) - Deviating from code provision C.2.1, the roles of Chairman and Chief Executive Officer are combined and held by Mr Xu, which the Board believes benefits the Group's management[107](index=107&type=chunk) - Deviating from code provision F.1.1, the Board has approved the proposed adoption of a dividend policy, which will only become effective after approval by the shareholders at a general meeting[108](index=108&type=chunk) [Standard Code for Securities Transactions](index=31&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company adopted the Standard Code for securities transactions by directors and supervisors as per Appendix C3 of the Listing Rules, with all directors and supervisors confirming compliance during the reporting period - The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as its code of conduct for securities transactions by directors and supervisors[109](index=109&type=chunk) - Each director and supervisor has confirmed compliance with the required standards set out in the Standard Code throughout the reporting period[109](index=109&type=chunk) [Purchase, Sale or Redemption of Listed Securities or Sale of Treasury Shares](index=31&type=section&id=Purchase%20Sale%20or%20Redemption%20of%20Listed%20Securities%20or%20Sale%20of%20Treasury%20Shares) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, nor did they sell any treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[110](index=110&type=chunk) - As of June 30, 2025, the company held no treasury shares[110](index=110&type=chunk) [Audit Committee and Review of Interim Results](index=32&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee, comprising three independent non-executive directors, reviewed and confirmed that the Group's interim financial results for the six months ended June 30, 2025, comply with relevant accounting standards, rules, and regulations, with timely and appropriate disclosures - The Audit Committee, composed of three independent non-executive directors, has reviewed the company's interim results for the six months ended June 30, 2025[111](index=111&type=chunk) - The Audit Committee reviewed and concluded that the interim financial results comply with relevant accounting standards, rules, and regulations, and that appropriate disclosures have been made in a timely manner[111](index=111&type=chunk) - Ernst & Young, the auditor, has conducted an independent review of the Group's unaudited interim financial information[111](index=111&type=chunk) [Publication of Interim Results Announcement and 2025 Interim Report on HKEX and Company Website](index=32&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%202025%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) This interim results announcement has been published on the HKEX and company websites, and the 2025 Interim Report, containing all required information, will be published and dispatched to H-share shareholders in due course - This interim results announcement is published on the HKEX website www.hkexnews.hk and the company's website www.lphj.com[112](index=112&type=chunk) - The 2025 Interim Report, containing all information required by the Listing Rules, will be published on the HKEX and company websites in due course and dispatched to H-share shareholders according to their chosen communication method[112](index=112&type=chunk) [Definitions and Glossary](index=32&type=section&id=Definitions%20and%20Glossary) This section provides definitions for key terms and phrases used in the interim results announcement to ensure clear understanding of the report content

[Corporate Information and Announcements](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%85%AC%E5%91%8A%E5%A3%B0%E6%98%8E) [Disclaimer](index=1&type=section&id=%E5%85%AC%E5%91%8A%E5%A3%B0%E6%98%8E) The Hong Kong Exchanges and Clearing Limited disclaims responsibility for this announcement's content and any loss arising from reliance upon it[1](index=1&type=chunk) [Corporate Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) China Starch Holdings Limited (Stock Code: 3838) announces its unaudited consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) [Consolidated Financial Statements](index=1&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=%E5%90%88%E5%B9%B6%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E7%BB%BC%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue decreased by 9.4% to RMB 5.115 billion, with profit for the period declining by 15.7% Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 5,114,852 | 5,645,514 | -9.4% | | Cost of sales | (4,686,096) | (5,138,334) | -8.8% | | Gross profit | 428,756 | 507,180 | -15.4% | | Operating profit | 279,725 | 342,483 | -18.3% | | Profit before tax | 297,133 | 355,294 | -16.4% | | Profit and total comprehensive income for the period | 225,636 | 267,482 | -15.7% | | Profit attributable to owners of the Company | 151,390 | 214,659 | -29.5% | | Basic and diluted earnings per share (RMB) | 0.0254 | 0.0360 | -29.4% | [Consolidated Statement of Financial Position](index=2&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets remained stable at RMB 6.96 billion while total liabilities decreased, indicating an optimized financial structure Key Data from Consolidated Statement of Financial Position | Metric | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total non-current assets | 2,490,059 | 2,539,526 | -1.9% | | Total current assets | 4,469,492 | 4,419,363 | +1.1% | | **Total assets** | **6,959,551** | **6,958,889** | **+0.01%** | | **Equity** | | | | | Equity attributable to owners of the Company | 4,204,055 | 4,105,970 | +2.4% | | Non-controlling interests | 448,431 | 387,685 | +15.7% | | **Total equity** | **4,652,486** | **4,493,655** | **+3.5%** | | **Liabilities** | | | | | Total non-current liabilities | 214,568 | 306,648 | -30.0% | | Total current liabilities | 2,092,497 | 2,158,586 | -3.0% | | **Total liabilities** | **2,307,065** | **2,465,234** | **-6.4%** | - Borrowings under non-current liabilities were reduced to **zero** as of June 30, 2025, from RMB 59,267 thousand at the end of 2024[4](index=4&type=chunk) [Notes to the Financial Statements](index=4&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) [Basis of Preparation](index=4&type=section&id=%E7%BC%96%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, using accounting policies consistent with the 2024 annual report - The condensed consolidated interim financial statements are prepared in accordance with the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34[6](index=6&type=chunk) - The statements are presented in RMB and prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities[6](index=6&type=chunk) [Adoption of New/Revised Hong Kong Financial Reporting Standards (HKFRSs)](index=4&type=section&id=%E6%8E%A1%E7%B4%8D%E6%96%B0%E8%A8%82%E2%95%B1%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87) The Group adopted an amendment to HKAS 21 in 2025, which had no material impact on its financial position or performance - The Group adopted the amendment to HKAS 21 "Lack of Exchangeability" in 2025[7](index=7&type=chunk) - The amendment did not have any impact on the Group's results and financial position[7](index=7&type=chunk) [Segment Information](index=4&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates two segments, with upstream product performance declining significantly while fermentation and downstream product performance improved External Sales and Performance by Segment | Segment | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **External Sales** | | | | | Upstream products | 3,149,725 | 3,524,090 | -10.7% | | Fermentation and downstream products | 1,965,127 | 2,121,424 | -7.4% | | **Total** | **5,114,852** | **5,645,514** | **-9.4%** | | **Reportable Segment Performance** | | | | | Upstream products | 5,607 | 98,337 | -94.3% | | Fermentation and downstream products | 295,113 | 255,951 | +15.3% | | **Total** | **300,720** | **354,288** | **-15.1%** | [Other Net Income](index=5&type=section&id=%E5%85%B6%E4%BB%96%E6%B7%A8%E6%94%B6%E5%85%A5) Other net income decreased by 13.9% to RMB 49.4 million, primarily due to an increased loss on the disposal of property, plant, and equipment Breakdown of Other Net Income | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Amortisation of government grants | 37,530 | 38,977 | -3.7% | | Gain on sales of scrap materials | 12,855 | 14,611 | -12.0% | | Net foreign exchange gain | 2,644 | 4,265 | -38.0% | | Loss on disposal of property, plant and equipment | (6,216) | (512) | +1114.1% | | Government grants | 253 | 131 | +93.1% | | Gain on futures | – | 333 | -100.0% | | Others | 2,371 | (389) | +709.0% | | **Total** | **49,437** | **57,416** | **-13.9%** | [Profit Before Tax](index=5&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) The Group's profit before tax was RMB 297.1 million, with notable changes in major expenses including a significant decrease in research costs Breakdown of Major Expenses | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories | 4,018,342 | 4,465,085 | -10.0% | | Salaries and other related expenses | 153,658 | 136,605 | +12.5% | | Depreciation of property, plant and equipment | 134,737 | 136,663 | -1.4% | | Depreciation of right-of-use assets | 5,185 | 5,185 | 0.0% | | Delivery and logistics | 46,767 | 65,622 | -28.7% | | Research expenses | 20,731 | 43,689 | -52.6% | - Research expenses include the cost of inventories, staff costs of the R&D department, and depreciation[10](index=10&type=chunk) [Income Tax Expense](index=5&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased by 18.6% to RMB 71.5 million, mainly due to a reversal of deferred tax liabilities and over-provision in prior years Breakdown of Income Tax Expense | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current income tax - PRC Enterprise Income Tax | 80,797 | 45,298 | +78.4% | | Over-provision in prior years | (4,933) | – | N/A | | Deferred tax | (4,367) | 42,514 | -110.3% | | **Total** | **71,497** | **87,812** | **-18.6%** | - The enterprise income tax rate for PRC subsidiaries is **25%**, with a preferential rate of **15%** for high-tech enterprises[11](index=11&type=chunk) - The PRC withholding tax rate was reduced from **10%** in 2024 to **5%** in 2025[12](index=12&type=chunk) [Earnings Per Share](index=6&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for the period decreased by 29.4% to RMB 0.0254, with no diluted EPS presented due to the absence of dilutive shares Calculation of Earnings Per Share | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB'000) | 151,390 | 214,659 | -29.5% | | Weighted average number of ordinary shares in issue ('000) | 5,964,492 | 5,965,532 | -0.02% | | **Basic earnings per share (RMB)** | **0.0254** | **0.0360** | **-29.4%** | - No diluted earnings per share was presented as there were no potential dilutive ordinary shares in either period[13](index=13&type=chunk) [Dividends](index=6&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the first half of 2025, but a final dividend for 2024 was approved in May 2025 - The Board does not recommend the payment of an interim dividend for H1 2025 (H1 2024: Nil)[14](index=14&type=chunk) - On May 20, 2025, shareholders approved a final dividend of **HK 0.98 cents** per share for 2024 (2023: HK 0.69 cents)[14](index=14&type=chunk) [Trade and Other Receivables](index=6&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE) Total trade and other receivables increased by 22.1% to RMB 535.3 million, driven by higher trade receivables and prepayments Breakdown of Trade and Other Receivables | Item | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 157,110 | 82,970 | +89.4% | | Bills receivable - bank acceptance | 274,145 | 280,774 | -2.4% | | Prepayments and other tax receivables | 94,217 | 52,993 | +77.8% | | Others | 9,853 | 21,602 | -54.3% | | **Total** | **535,325** | **438,339** | **+22.1%** | Ageing Analysis of Trade Receivables | Ageing | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | 0 to 30 days | 152,266 | 75,434 | | 31 to 60 days | 4,844 | 7,190 | | 61 to 90 days | – | 346 | | **Total** | **157,110** | **82,970** | - The Group generally grants a credit period of 0 to 150 days to its customers[15](index=15&type=chunk) [Trade and Other Payables](index=7&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE) Total trade and other payables decreased by 4.3% to RMB 345.3 million, mainly due to the settlement of notes payable and lower other tax payables Breakdown of Trade and Other Payables | Item | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 154,180 | 157,694 | -2.2% | | Notes payable | – | 2,000 | -100.0% | | Payables for construction and equipment | 56,335 | 60,639 | -7.0% | | Salaries and welfare payables | 48,978 | 43,806 | +11.8% | | Accrued expenses | 32,878 | 42,555 | -22.7% | | Other tax payables | 12,876 | 24,665 | -47.8% | | Tender deposits | 31,982 | 20,757 | +54.1% | | **Total** | **345,263** | **360,653** | **-4.3%** | Ageing Analysis of Trade and Notes Payables | Ageing | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | 0 to 60 days | 133,346 | 134,654 | | 61 to 90 days | 1,120 | 2,164 | | Over 90 days | 19,714 | 22,876 | | **Total** | **154,180** | **159,694** | - The average credit period for purchases is 80 days[18](index=18&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Industry Overview and Corporate Development](index=8&type=section&id=%E8%A1%8C%E6%A5%AD%E6%A6%82%E8%A6%BD%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%99%BC%E5%B1%95) The Group faced economic headwinds, intense market competition, and margin pressure from rising corn costs but maintains a stable financial position - In H1 2025, the domestic economy faced challenges with sluggish demand and ongoing Sino-US trade disputes, leading to market oversupply and downward price pressure[20](index=20&type=chunk) - The corn starch and deep processing industry saw stable capacity but faced intensified competition from low-cost imported tapioca starch and weak demand from the feed and breeding sectors[20](index=20&type=chunk) - Domestic corn prices rose steadily, but prices for corn starch and related products remained low due to weak demand, leading to **margin contraction**[21](index=21&type=chunk) - The Group's financial position remains **stable with sufficient funds**, and management has adopted a prudent strategy to control costs and improve operational efficiency[21](index=21&type=chunk) - The Linqing production base expansion project was delayed until early August due to permit approvals but is not expected to affect the 2026 trial production schedule[21](index=21&type=chunk) - The expansion project involved dismantling existing facilities, resulting in a **higher loss on disposal of obsolete equipment** in H1, with no significant further losses expected in H2[22](index=22&type=chunk) [Business Review](index=9&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The upstream segment faced multiple pressures while the downstream segment saw improved gross profit despite lower revenue, driven by strategic shifts - **Upstream products (corn starch)** faced pressure from rising corn kernel prices due to lower imports, falling prices of substitutes like wheat/tapioca starch, and industry capacity expansion[23](index=23&type=chunk) - The **fermentation and downstream products** segment saw an overall revenue decline but improved gross profit through strategic adjustments and solid performance of new bio-based materials[24](index=24&type=chunk) - The **lysine business** strategically shifted its sales focus from overseas to domestic channels due to an anti-dumping investigation in China[24](index=24&type=chunk) - The **starch sugar business** faced challenges from weak demand in the catering industry and intensified competition from industry capacity expansion, pressuring profitability[24](index=24&type=chunk) - The **modified starch business** experienced a significant decrease in sales volume, mainly due to stricter wastewater control measures[24](index=24&type=chunk) - The **new bio-based materials business** performed satisfactorily, achieving growth by expanding its distribution network, attracting new customers, and launching new products[24](index=24&type=chunk) [Financial Performance](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE) The Group's revenue and gross profit declined by 9.4% and 15.4% respectively, pressured by lower sales volume and rising raw material costs - The Group's revenue decreased to **RMB 5,114,852,000 (down 9.4% YoY)**, mainly due to a decline in both average selling prices and total sales volume[25](index=25&type=chunk) - A significant increase in the market price of corn kernels (the main raw material) led to a decrease in gross profit to **RMB 428,756,000 (down 15.4% YoY)**, putting significant pressure on profit margins[25](index=25&type=chunk) - Profit before tax was **RMB 297,133,000 (down 16.4% YoY)**, and profit after tax was **RMB 225,636,000 (down 15.7% YoY)**[25](index=25&type=chunk) [Segment Performance: Upstream Products](index=10&type=section&id=%E5%88%86%E9%83%A8%E8%A1%A8%E7%8F%BE%EF%BC%9A%E4%B8%8A%E6%B8%B8%E7%94%A2%E5%93%81) The upstream product segment's revenue and gross margin fell significantly due to rising corn costs, reduced demand, and competition from substitutes Upstream Products Segment Performance | Metric | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,149,725 | 3,524,090 | -10.6% | | Gross Profit | 91,475 | 198,370 | -53.9% | | Gross Profit Margin | 2.9% | 5.6% | -2.7 p.p. | - Corn starch sales volume was approximately **856,500 tonnes** (2024: 891,288 tonnes), with an average selling price of approximately **RMB 2,465 per tonne** (2024: RMB 2,679 per tonne)[26](index=26&type=chunk) - Profitability was mainly affected by a significant increase in corn kernel costs, reduced market demand, and intensified competition from substitutes[26](index=26&type=chunk) [Segment Performance: Fermentation and Downstream Products](index=10&type=section&id=%E5%88%86%E9%83%A8%E8%A1%A8%E7%8F%BE%EF%BC%9A%E7%99%BC%E9%85%B5%E5%8F%8A%E4%B8%8B%E6%B8%B8%E7%94%A2%E5%93%81) The fermentation and downstream segment's revenue decreased by 7.4%, but its gross margin improved due to strategic adjustments and product mix changes Fermentation and Downstream Products Segment Performance | Metric | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,965,127 | 2,121,424 | -7.4% | | Gross Profit | 337,281 | 308,810 | +9.2% | | Gross Profit Margin | 17.2% | 14.6% | +2.6 p.p. | Revenue Breakdown of Fermentation and Downstream Products | Product | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Lysine | 1,553,051 | 1,605,963 | -3.3% | | Starch sugar | 222,607 | 247,926 | -10.3% | | Modified starch | 110,250 | 216,954 | -49.2% | | Others (incl. new bio-based materials) | 79,219 | 50,581 | +56.6% | - Domestic sales volume of lysine increased to **247,596 tonnes** (2024: 227,549 tonnes), while total sales volume rose slightly to approximately **275,187 tonnes** (2024: 273,256 tonnes), with the average selling price decreasing to **RMB 5,644 per tonne** (2024: RMB 5,877 per tonne)[28](index=28&type=chunk) - Both sales volume and average selling price of starch sugar decreased, with the proportion of liquid starch sugar rising to **81.7%**, leading to a lower overall average selling price[28](index=28&type=chunk) - Revenue from new bio-based materials and other products grew by **56.6%**, mainly benefiting from an enhanced distribution network[29](index=29&type=chunk) [Cost of Sales](index=11&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Total cost of sales decreased by 8.8% to RMB 4.69 billion, with the average purchase cost of corn kernels being lower than the prior period - Total cost of sales was approximately **RMB 4,686,096,000**, a year-on-year decrease of 8.8%[30](index=30&type=chunk) - The average purchase cost of corn kernels (net of VAT) was approximately **RMB 2,068 per tonne**, lower than H1 2024 (RMB 2,135) but higher than the H2 2025 forecast (RMB 2,040)[30](index=30&type=chunk) - The Group did not enter into any forward/futures contracts to hedge against corn kernel price fluctuations during the period[30](index=30&type=chunk) [Other Operational Review](index=11&type=section&id=%E5%85%B6%E4%BB%96%E7%87%9F%E9%81%8B%E5%9B%9E%E9%A1%A7) The Group saw significant changes in operating expenses, with distribution and research costs decreasing while administrative expenses increased [Distribution and Administrative Expenses](index=11&type=section&id=%E5%88%86%E9%8A%B7%E5%8F%8A%E8%A1%8C%E6%94%BF%E8%B2%BB%E7%94%A8) Distribution expenses fell by 22.6% due to lower sales volume, while administrative expenses rose by 18.5% driven by higher government levies Breakdown of Distribution Expenses | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Delivery and logistics | 46,767 | 65,622 | -28.7% | | Marketing expenses | 7,604 | 7,817 | -2.8% | | Staff costs | 5,624 | 5,116 | +9.9% | | Others | 3,709 | 3,663 | +1.3% | | **Total** | **63,704** | **82,218** | **-22.6%** | Breakdown of Administrative Expenses | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Staff costs | 60,077 | 52,629 | +14.1% | | Government levies | 22,147 | 13,434 | +64.9% | | Depreciation and amortisation | 18,090 | 17,677 | +2.3% | | Others | 13,719 | 12,466 | +10.1% | | **Total** | **114,033** | **96,206** | **+18.5%** | [Research Expenses](index=12&type=section&id=%E7%A0%94%E7%A9%B6%E8%B2%BB%E7%94%A8) Research expenses decreased substantially by 52.6% as the Group focused on developing production technology and proprietary techniques - Research expenses decreased significantly by **52.6%** from RMB 43,689,000 to RMB 20,731,000[34](index=34&type=chunk) - These expenses, mainly comprising material costs, depreciation, and staff costs, were focused on the development of production technology and proprietary techniques[34](index=34&type=chunk) [Other Net Income](index=12&type=section&id=%E5%85%B6%E4%BB%96%E6%B7%A8%E6%94%B6%E5%85%A5) Other net income decreased by 13.9% to RMB 49.4 million, mainly due to a significant loss on the disposal of equipment at the Linqing plant Breakdown of Other Net Income | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Amortisation of government grants | 37,530 | 38,977 | -3.7% | | Gain on sales of scrap materials | 12,855 | 14,611 | -12.0% | | Net exchange gain | 2,644 | 4,265 | -38.0% | | Loss on disposal of property, plant and equipment | (6,216) | (512) | +1114.1% | | Government grants (one-off) | 253 | 131 | +93.1% | | Gain on futures | – | 333 | -100.0% | | Others | 2,371 | (389) | +709.0% | | **Total** | **49,437** | **57,416** | **-13.9%** | - The decrease in other net income was mainly due to the loss on disposal arising from the dismantling of certain equipment at the Linqing production plant[35](index=35&type=chunk) [Liquidity, Financial Resources, and Capital Structure](index=12&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The Group maintained sufficient working capital and a sound financial structure, with a lower gearing ratio and slightly changed liquidity ratios Key Financial Performance Indicators | Metric | As at June 30, 2025 | As at December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Accounts receivable turnover (days) | 14 | 12 | +2 days | | Accounts payable turnover (days) | 8 | 5 | +3 days | | Inventory turnover (days) | 28 | 24 | +4 days | | Current ratio (times) | 2.1 | 2.0 | +0.1 | | Quick ratio (times) | 1.7 | 1.8 | -0.1 | | Gearing ratio - borrowings to total assets (%) | 20.1 | 21.3 | -1.2 p.p. | - The Group has sufficient working capital to meet its current requirements, and all borrowings are short-term[37](index=37&type=chunk) - Total bank borrowings of **RMB 1,337,864,000** are at fixed interest rates, and a loan from a controlling shareholder of **RMB 61,101,000** is at a fixed annual rate of 0.5%[37](index=37&type=chunk) [Human Resources and Remuneration Policy](index=12&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group reduced its headcount but increased total staff costs, implementing measures to optimize labor efficiency and retain talent - As of June 30, 2025, the Group employed **2,073 staff** (2024: 2,267), a decrease in headcount[38](index=38&type=chunk) - Total staff costs (including directors' remuneration) were approximately **RMB 153,658,000**, a year-on-year increase of 12.5%[38](index=38&type=chunk) - To cope with operational challenges, the Group implemented measures to optimize labor efficiency, support staff retention, increase reliance on automation, and introduce discretionary performance bonuses[38](index=38&type=chunk) - The remuneration review during the period involved an in-depth assessment, resulting in a **significant adjustment** to enhance morale and maintain market competitiveness[38](index=38&type=chunk) [Financial Management, Treasury Policy, and Foreign Exchange Risk](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E7%AE%A1%E7%90%86%E3%80%81%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96%E5%8F%8A%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) There were no material changes to the Group's financial management, treasury policies, or foreign exchange risk exposure compared to the 2024 annual report[39](index=39&type=chunk) [Pledge of Assets](index=13&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged bank deposits and bills receivable totaling RMB 1.138 billion as security for certain banking facilities - As of June 30, 2025, the Group pledged bank deposits and bills receivable with a total carrying value of **RMB 1,138,000,000** as security for banking facilities[40](index=40&type=chunk) - No land use rights or buildings were pledged as security for banking facilities during the period[40](index=40&type=chunk) [Contingent Liabilities](index=13&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The Group had no significant contingent liabilities as of June 30, 2025[41](index=41&type=chunk) [Material Investments](index=13&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group had no material investments or future plans for significant capital asset investments beyond its disclosed business development plans[42](index=42&type=chunk) [Other Disclosures](index=13&type=section&id=%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A0%85) [Interim Dividend](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: Nil)[43](index=43&type=chunk) [Purchase, Sale, or Redemption of the Company's Listed Securities](index=13&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[44](index=44&type=chunk) [Corporate Governance](index=13&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company complied with the applicable code provisions of the Listing Rules, with the exception of the Chairman's absence from the 2025 AGM - The Company has complied with the applicable code provisions contained in Part 2 of Appendix C1 to the Listing Rules[45](index=45&type=chunk) - The Chairman, Mr Tian Qixiang, was unable to attend the 2025 Annual General Meeting due to other business engagements[45](index=45&type=chunk) [Review of Interim Financial Statements](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%AF%A9%E9%96%B1) The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[46](index=46&type=chunk) [Interim Report](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The 2025 Interim Report will be published on the websites of the HKEX and the Company by the end of September 2025[47](index=47&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產 生或因倚賴該等內容而引致的任何損失承擔任何責任。 (1) 合併收入包括來自本公司、其附屬公司以及應佔聯營公司及合營公司在內地及香港的收入。 (2) 收入僅包括來自本公司及其附屬公司的收入。 (3) 基礎溢利指股東應佔溢利，不計入二零二五年上半年發展物業的非現金減值撥備、二零二四年上半年就本集團於古洞 北新發展區持有的若干土地作出的一次性非現金撥備，以及兩個期間投資物業的非現金公允價值變動。 * 僅供識別 二零二五年中期業績公告 董事會欣然公布本集團截至二零二五年六月三十日止六個月之未經審核中期業績。本公司 審核與企業管治委員會在向董事會作出建議以待批准前，已召開會議審閱本集團截至 二零二五年六月三十日止六個月之業績及未經審核之簡明綜合中期財務報表。 | | 二零二五年 | 二零二四年 | 百分比變動 | | --- | --- | --- | --- | | | 上半年 | 上半年 | | | | 百萬港元 | 百萬港元 | | | 合併收入 (1) ...

Company Information and Performance Summary [Company Profile](index=1&type=section&id=1.1%20公司简介) Dah Sing Banking Group Limited and its subsidiaries primarily provide banking, financial, and other related services, with its holding company being Dah Sing Financial Group Limited, a Hong Kong-listed company - Dah Sing Banking Group Limited is a bank holding company, and its principal subsidiary, Dah Sing Bank, Limited, is a licensed bank in Hong Kong[8](index=8&type=chunk) - The Company's immediate and ultimate holding company is Dah Sing Financial Group Limited, a Hong Kong-listed company[9](index=9&type=chunk) [2025 Interim Performance Overview](index=1&type=section&id=1.2%202025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, Dah Sing Banking Group recorded unaudited profit attributable to shareholders of HK$1,578.9 million 2025 Interim Profit Attributable to Shareholders | Metric | Amount (HKD) | | :--- | :--- | | Profit Attributable to Shareholders | 1,578,900,000 | [Condensed Consolidated Income Statement](index=1&type=section&id=1.3%20简明综合收益账) For the six months ended June 30, 2025, the Group's operating income increased by 15.5% year-on-year to HK$3.796 billion, with net interest income up 9.4% and net fee and commission income up 20.4%; however, credit impairment losses significantly increased by 33.8% year-on-year Key Data from Condensed Consolidated Income Statement (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 2,776,458 | 2,538,695 | 9.4 | | Net Fee and Commission Income | 726,763 | 603,386 | 20.4 | | Operating Income | 3,795,596 | 3,286,757 | 15.5 | | Operating Expenses | (1,707,075) | (1,594,865) | 7.0 | | Operating Profit Before Impairment Losses | 2,088,521 | 1,691,892 | 23.4 | | Credit Impairment Losses | (728,082) | (544,007) | 33.8 | | Profit Before Tax | 1,819,057 | 1,579,921 | 15.1 | | Profit Attributable to Shareholders of the Company | 1,578,850 | 1,396,074 | 13.1 | | Basic Earnings Per Share | HK$1.12 | HK$0.99 | - | [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=1.4%20简明综合全面收益表) For the six months ended June 30, 2025, the Group's total comprehensive income for the period after tax was HK$1.883 billion, a significant year-on-year increase of 29.87%, primarily influenced by exchange differences on translating financial statements of overseas operations and net fair value changes in investment securities Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | | Profit for the Period | 1,578,850 | 1,396,074 | | Other Comprehensive Income for the Period, After Tax | 304,501 | 54,118 | | Total Comprehensive Income for the Period, After Tax | 1,883,351 | 1,450,192 | - Exchange differences on translating financial statements of overseas operations turned from a **loss of HK$212 million** in 2024 to a **gain of HK$281 million** in 2025[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=1.5%20简明综合财务状况表) As of June 30, 2025, the Group's total assets reached HK$260.684 billion, a 1.7% increase from the end of 2024, with customer deposits maintaining steady growth and shareholders' funds also increasing Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | | Total Assets | 260,683,805 | 256,339,081 | | Total Liabilities | 225,543,222 | 222,515,709 | | Customer Deposits | 203,954,890 | 201,568,051 | | Shareholders' Funds | 34,829,167 | 33,511,956 | - Customer deposits increased from **HK$201.568 billion** at the end of 2024 to **HK$203.955 billion** as of June 30, 2025[7](index=7&type=chunk) - Shareholders' funds increased from **HK$33.512 billion** at the end of 2024 to **HK$34.829 billion** as of June 30, 2025[7](index=7&type=chunk) Notes to the Financial Statements [General Information and Accounting Policies](index=4&type=section&id=2.1%20一般资料及会计政策) This section outlines the Group's background, the basis of preparation for interim financial statements, and adopted accounting policies, including the assessment of new and unadopted accounting standard amendments - The accounting policies adopted for the 2025 interim condensed consolidated financial statements are consistent with those in the 2024 audited annual consolidated financial statements, with amendments to HKAS 21 adopted, but no significant impact is expected[11](index=11&type=chunk) - The Group is assessing the specific impact of HKFRS 18 'Presentation and Disclosure in Financial Statements' on the consolidated financial statements, which will be effective for annual periods beginning on or after January 1, 2027[13](index=13&type=chunk)[14](index=14&type=chunk) [Revenue and Expense Analysis](index=6&type=section&id=2.2%20收益与支出分析) This section details the Group's income and expense components, including net interest income, net fee and commission income, net trading income, other operating income, operating expenses, credit impairment losses, share of results of associates, taxation, and earnings per share Net Interest Income Components (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Interest Income | 5,318,854 | 6,205,704 | | Interest Expense | (2,542,396) | (3,667,009) | | Net Interest Income | 2,776,458 | 2,538,695 | Net Fee and Commission Income Components (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Fee and Commission Income | 829,048 | 712,467 | | Retail Investment and Wealth Management Services Income | 124,822 | 66,704 | | Net Fee and Commission Income | 726,763 | 603,386 | Net Trading Income (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Net Gains from Foreign Exchange | 242,992 | 89,746 | | Net Trading Income | 271,533 | 119,447 | Credit Impairment Losses (For the six months ended June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | New provisions (net of reversals) | 779,270 | 582,402 | | Total Credit Impairment Losses | 728,082 | 544,007 | | - Loans and advances to customers | 706,412 | 550,546 | - Share of results of associates (Chongqing Bank) was **HK$443 million**, an increase from **HK$430 million** in the prior period, with no impairment losses on investments in associates for the current period[23](index=23&type=chunk)[24](index=24&type=chunk) Earnings Per Share (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic Earnings Per Share | HK$1.12 | HK$0.99 | | Diluted Earnings Per Share | HK$1.05 | HK$0.93 | [Balance Sheet Items Analysis](index=11&type=section&id=2.3%20资产负债表项目分析) This section provides a detailed analysis of key balance sheet items, including various financial assets, loans and advances, derivative instruments, other liabilities, and the composition and changes in shareholders' funds Securities Held for Trading and Financial Assets at FVTPL (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Securities held for trading | 3,332,932 | 2,006,353 | | Financial assets at fair value through profit or loss | 4,507 | 4,272 | | Total | 3,337,439 | 2,010,625 | Fair Value of Derivative Financial Instruments (As of June 30) | Metric | 2025 Assets (HKD Thousand) | 2025 Liabilities (HKD Thousand) | 2024 Assets (HKD Thousand) | 2024 Liabilities (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Derivatives held for trading | 1,662,107 | (1,819,065) | 1,800,047 | (1,690,736) | | Derivatives held for hedging | 1,564,112 | (152,770) | 2,283,684 | (149,179) | | Total | 3,226,219 | (1,971,835) | 4,083,731 | (1,839,915) | Loans and Other Accounts (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Gross loans and advances to customers | 139,489,360 | 138,374,285 | | Total impairment allowances | (1,917,097) | (1,532,345) | | Net loans and other accounts | 143,600,870 | 143,048,675 | - The percentage of credit-impaired loans and advances to gross loans and advances to customers slightly improved from **3.21%** at the end of 2024 to **3.12%** as of June 30, 2025[33](index=33&type=chunk) Gross Overdue Loans and Advances (As of June 30) | Overdue Period | 2025 Gross Overdue Loans and Advances (HKD Thousand) | 2024 Gross Overdue Loans and Advances (HKD Thousand) | | :--- | :--- | :--- | | Over 3 months to 6 months | 502,932 | 2,104,322 | | Over 6 months to 1 year | 2,317,097 | 778,884 | | Over 1 year | 1,268,501 | 926,024 | | Total | 4,088,530 | 3,809,230 | Composition of Shareholders' Funds (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Share Capital | 6,894,438 | 6,894,438 | | Retained Earnings | 25,889,548 | 24,876,838 | | Total Shareholders' Funds | 34,829,167 | 33,511,956 | [Contingent Liabilities and Commitments](index=20&type=section&id=2.4%20或然负债及承擔) This section discloses the Group's capital commitments, credit commitments, pledged assets, and operating lease commitments, reflecting off-balance sheet potential risks and obligations Capital Commitments (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Contracted but not provided for | 18,394 | 20,821 | Credit Commitments (As of June 30) | Metric | 2025 Contract Amount (HKD Thousand) | 2024 Contract Amount (HKD Thousand) | | :--- | :--- | :--- | | Commitments that can be unconditionally cancelled without prior notice | 57,570,547 | 57,897,554 | | Credit risk-weighted amount | 5,863,292 | 2,155,128 | Pledged Assets (As of June 30) | Metric | 2025 (HKD Thousand) | 2024 (HKD Thousand) | | :--- | :--- | :--- | | Pledged assets held for trading and financial investments as collateral for liabilities | 3,166,990 | 1,143,336 | | Amount of liabilities secured | 3,094,712 | 1,130,231 | [Segmental Reporting](index=22&type=section&id=2.5%20营业分项报告) This section details the Group's business and regional operating performance, segmented by personal banking, corporate banking, treasury and global markets, banking business in Mainland China and Macau, and other segments, in accordance with HKFRS 8 - Personal banking business showed robust performance, with operating income increasing by **13%** year-on-year and operating profit after impairment increasing by **26%** year-on-year, primarily benefiting from strong growth in wealth management and bancassurance income[75](index=75&type=chunk) - Corporate banking business saw a decline in operating income and a **55%** year-on-year decrease in operating profit after impairment, mainly due to weak customer loan demand and increased credit impairment losses[75](index=75&type=chunk) - Operating profit after impairment for Treasury and Global Markets business increased by **66%**, driven by improved investment sentiment, increased customer demand from market volatility, and higher positive fair value changes in trading securities and derivatives[76](index=76&type=chunk) Regional Segment Operating Income and Profit Before Tax (For the six months ended June 30) | Region | 2025 Operating Income (HKD Thousand) | 2025 Profit Before Tax (HKD Thousand) | 2024 Operating Income (HKD Thousand) | 2024 Profit Before Tax (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong and Others | 3,616,656 | 1,845,870 | 3,099,933 | 1,536,940 | | Macau | 180,141 | (26,812) | 188,040 | 42,981 | | Total | 3,795,596 | 1,819,057 | 3,286,757 | 1,579,921 | [Additional Analysis of Claims and Balances](index=26&type=section&id=2.6%20债权及余额之额外分析) This section provides detailed analysis of customer loans and advances by industry, balances with Mainland China businesses, customer loans and advances by region, and international claims, revealing the Group's credit portfolio structure and risk distribution Gross Loans and Advances to Customers by Industry (As of June 30) | Industry | 2025 Outstanding Balance (HKD Thousand) | 2025 Percentage Secured by Collateral (%) | 2024 Outstanding Balance (HKD Thousand) | 2024 Percentage Secured by Collateral (%) | | :--- | :--- | :--- | :--- | :--- | | Commercial and Industrial Total | 48,514,203 | 69.0 | 50,433,142 | 72.5 | | Individuals Total | 52,877,784 | 80.8 | 51,619,242 | 80.2 | | Loans for use in Hong Kong Total | 101,391,987 | 75.1 | 102,052,384 | 76.4 | | Loans for use outside Hong Kong | 33,501,148 | 57.1 | 31,419,446 | 58.5 | | Total | 139,489,360 | 70.5 | 138,374,285 | 72.0 | Balances with Mainland China Businesses (As of June 30) | Counterparty Category | 2025 On-Balance Sheet Balance (HKD Thousand) | 2025 Total Balance (HKD Thousand) | 2024 On-Balance Sheet Balance (HKD Thousand) | 2024 Total Balance (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Central government and related entities | 5,124,421 | 5,206,020 | 5,198,753 | 5,198,753 | | Local governments and related entities | 992,575 | 1,019,305 | 1,170,713 | 1,537,928 | | Nationals or entities residing in Mainland China | 8,417,138 | 9,394,042 | 7,657,826 | 8,217,137 | | Total Balance | 28,161,158 | 30,230,617 | 28,214,392 | 29,635,526 | | On-balance sheet balance as a percentage of total assets | 11.52% | - | 11.81% | - | Customer Loans and Advances by Geographical Area (As of June 30) | Region | 2025 Gross Customer Loans and Advances (HKD Thousand) | 2025 Impaired Customer Loans and Advances (Stage 3) (HKD Thousand) | 2024 Gross Customer Loans and Advances (HKD Thousand) | 2024 Impaired Customer Loans and Advances (Stage 3) (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 107,664,128 | 3,949,982 | 108,718,160 | 4,018,261 | | Mainland China | 15,654,204 | 184,684 | 13,729,341 | 221,449 | | Macau | 13,251,567 | 215,338 | 13,527,103 | 197,973 | | Total | 139,489,360 | 4,350,004 | 138,374,285 | 4,437,683 | [Foreign Exchange Risk](index=32&type=section&id=2.7%20外汇风险) This section discloses the Group's net foreign exchange positions in major currencies such as USD, JPY, EUR, and RMB, reflecting its foreign exchange risk exposure - As of June 30, 2025, the Group had no structural foreign currency net positions[65](index=65&type=chunk) Net Foreign Exchange Positions by Major Currency (As of June 30) | Currency | 2025 Long/(Short) Net Position (HKD Million) | 2024 Long/(Short) Net Position (HKD Million) | | :--- | :--- | :--- | | USD | 1,605 | 2,238 | | RMB | (143) | (203) | | MOP | (898) | (631) | | Total Foreign Currencies | 187 | 1,456 | [Capital Adequacy Ratios](index=33&type=section&id=2.8%20资本充足比率) This section discloses the Group's capital adequacy ratios, indicating its robust capital position in compliance with Basel III and relevant regulatory requirements Capital Adequacy Ratios (As of June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Common Equity Tier 1 | 18.2% | 16.9% | | Tier 1 | 18.9% | 17.6% | | Total | 22.5% | 21.0% | - The calculation of capital adequacy ratios has considered market risk and operational risk, complying with banking regulatory requirements in Hong Kong, Macau, and Mainland China[67](index=67&type=chunk) [Liquidity Maintenance Ratio](index=33&type=section&id=2.9%20流动性维持比率) This section discloses the Group's liquidity maintenance ratio, demonstrating its consistently sound liquidity position in compliance with minimum regulatory requirements Liquidity Maintenance Ratio (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Liquidity Maintenance Ratio | 60.7% | 64.7% | - The liquidity maintenance ratio is calculated in accordance with the Banking (Liquidity) Rules and complies with banking regulatory requirements in Hong Kong, Macau, and Mainland China[68](index=68&type=chunk) Financial Ratios and Dividends [Financial Ratios](index=34&type=section&id=3.1%20财务比率) This section presents the Group's key financial ratios for the six months ended June 30, 2025, including net interest income to operating income, cost-to-income ratio, return on average total assets, return on average shareholders' funds, net interest margin, and loan-to-deposit ratio Key Financial Ratios (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income / Operating Income | 73.1% | 77.2% | | Cost-to-Income Ratio | 45.0% | 48.5% | | Return on Average Total Assets (Annualized) | 1.2% | 1.1% | | Return on Average Shareholders' Funds (Annualized) | 9.2% | 8.5% | | Net Interest Margin | 2.32% | 2.09% | | Loan-to-Deposit Ratio (As of June 30) | 67.8% | 67.2% | - The cost-to-income ratio improved to **45.0%**, indicating progress in the Group's cost control efforts[69](index=69&type=chunk) - Net interest margin expanded by **23 basis points** to **2.32%**, reflecting prudent funding cost management[74](index=74&type=chunk) [Interim Dividend](index=34&type=section&id=3.2%20中期股息) The Board of Directors announced an interim dividend of HK$0.31 per share for 2025 and provided relevant dividend payment dates - The Board of Directors announced an interim dividend of **HK$0.31 per share** for 2025[70](index=70&type=chunk) - The interim dividend will be paid on September 18, 2025, to shareholders whose names appear on the register of members on September 10, 2025[70](index=70&type=chunk) Group and Business Overview [Summary](index=35&type=section&id=4.1%20概要) Despite external challenges like interest rate uncertainty, a weak property market, and geopolitical tensions, the Hong Kong economy showed resilience in H1 2025, enabling the Group to achieve solid performance through prudent credit risk management, higher net interest margin, and strong fee and trading income - Hong Kong's economy showed resilience in the first half of 2025, with real GDP growing by **3.1%** year-on-year in the second quarter[72](index=72&type=chunk) - The Group prudently managed credit risk, with the impaired loan ratio slightly improving to **3.12%** (3.21% at end-2024)[73](index=73&type=chunk) - The Group's profit attributable to shareholders increased by **13%** to approximately **HK$1.6 billion**, with **HK$443 million** contributed by Chongqing Bank[73](index=73&type=chunk) [Business and Financial Review](index=35&type=section&id=4.2%20业务及财务回顾) The Group's 2025 interim performance was robust, with growth in both net interest and non-interest income, and an improved cost-to-income ratio; however, credit impairment losses increased, mainly for Hong Kong commercial real estate exposure, with personal banking performing strongly while corporate banking faced challenges - Net interest income increased by **9%** year-on-year, primarily due to funding costs decreasing faster than asset yields[74](index=74&type=chunk) - Non-interest income grew strongly by **36%**, with net fee and commission income increasing by **20%**, and net trading income and other operating income collectively increasing by **102%**[74](index=74&type=chunk) - Operating expenses increased by **7%**, mainly due to higher IT expenditure and staff costs, but the cost-to-income ratio improved to **45.0%**[75](index=75&type=chunk) - Credit impairment losses increased by **34%** year-on-year, primarily due to prudent provisions for Hong Kong commercial real estate exposure and other corporate loans[75](index=75&type=chunk) - Annualized return on average total assets was **1.2%**, and annualized return on average shareholders' funds was **9.2%**, both higher than the prior period[76](index=76&type=chunk) [Outlook](index=36&type=section&id=4.3%20前瞻) The Group anticipates continued global market uncertainties and US interest rate policy challenges, with credit costs likely remaining high; despite Hong Kong's economic resilience, the business outlook is not expected to change significantly for the remainder of the year, as the Group remains focused on customers, risk management, and business objectives - Recent US tariffs on multiple countries and interest rate policy uncertainties exacerbate global market ambiguity[77](index=77&type=chunk) - The Hong Kong government's enhanced New Capital Investor Entry Scheme is expected to boost private banking and wealth management business development[77](index=77&type=chunk) - Credit costs are expected to remain high in 2025, and the business outlook is not anticipated to change significantly for the remainder of the year[78](index=78&type=chunk) Other Information [Compliance with Corporate Governance Code](index=37&type=section&id=5.1%20遵守企业管治守则) The Company has applied and complied with the code principles and provisions of the Corporate Governance Code, Part 2 of Appendix C1 to the Listing Rules, during the reporting period - The Company has applied and complied with the code principles and provisions of the Corporate Governance Code, Part 2 of Appendix C1 to the Listing Rules[79](index=79&type=chunk) [Directors' Securities Transactions Code](index=37&type=section&id=5.2%20董事之证券交易守则) The Company has adopted a code for directors' securities transactions no less exacting than the Model Code in Appendix C3 of the Listing Rules, and directors have confirmed compliance during the reporting period - The Company has adopted a code for directors' securities transactions no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[80](index=80&type=chunk) - Following enquiry, the directors have confirmed compliance with the Model Code and the Company's code for directors' dealings in securities for the six months ended June 30, 2025[80](index=80&type=chunk) [Unaudited Financial Statements](index=37&type=section&id=5.3%20未经审核之财务报表) The financial information in this interim results announcement is unaudited and does not constitute statutory financial statements - The financial information in this interim results announcement is unaudited and does not constitute statutory financial statements[81](index=81&type=chunk) [Review of Financial Statements](index=37&type=section&id=5.4%20审阅财务报表) The Audit Committee and management have reviewed the Group's accounting policies, practices, internal controls, and financial reporting matters, including these interim financial statements - The Audit Committee and management have reviewed the Group's accounting policies and practices, and discussed internal controls and financial reporting matters[82](index=82&type=chunk) [Purchase, Sale or Redemption of Securities](index=37&type=section&id=5.5%20购买、出售或赎回证券) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025[83](index=83&type=chunk) [Remuneration and Staff Development](index=37&type=section&id=5.6%20薪酬及员工发展) The Company's staff remuneration, remuneration policies, and training programs remained substantially unchanged from those disclosed in the 2024 Annual Report - The Company's staff remuneration, remuneration policies, and training programs remained substantially unchanged from those disclosed in the 2024 Annual Report[84](index=84&type=chunk) [Interim Results Announcement and Interim Report](index=37&type=section&id=5.7%20中期业绩通告及中期业绩报告) This announcement has been published on the HKEX and Dah Sing Bank websites, and the 2025 interim report containing information specified by the Listing Rules will be released in due course - This announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and Dah Sing Bank (www.dahsing.com)[85](index=85&type=chunk) - The Group's 2025 interim report, containing information specified by the Listing Rules, will be published on the HKEX and Dah Sing Bank websites in due course[85](index=85&type=chunk) [Board of Directors](index=37&type=section&id=5.8%20董事会) This section lists the members of the Company's Board of Directors as of the announcement date - The Board of Directors includes Executive Directors Mr. Wong Shou-yeh (Chairman), Mr. Harold Wong (Deputy Chairman, Managing Director and Chief Executive), Mr. Wang Bo-ling, and Mr. Derek Ma (Deputy Chief Executive); Independent Non-executive Directors Mr. So Chak-kwong, Mr. Stephen Tan, Mr. Peter Breese, Mr. David Wai, Ms. Chan Ha-fong, and Mr. Cheung Kin-sang[86](index=86&type=chunk)