[Announcement Overview and Important Notes](index=1&type=section&id=%E5%85%AC%E5%91%8A%E6%A6%82%E8%A7%88%E5%8F%8A%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) This section provides an overview of the interim results announcement and important disclaimers [Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) Fuyao Glass Industry Group Co., Ltd. announced its unaudited interim results for the six months ended June 30, 2025, with the full report to be published by the end of September - The company's board announced unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk) - The 2025 interim report will be published by the end of September 2025[2](index=2&type=chunk) [Important Notes and Statements](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E8%88%87%E8%81%B2%E6%98%8E) The company's board, supervisory committee, and senior management guarantee the report's accuracy and completeness, noting it is unaudited and forward-looking statements are not commitments - The company's board, supervisory committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[8](index=8&type=chunk) - This semi-annual report is unaudited[8](index=8&type=chunk) - Forward-looking statements do not constitute a substantial commitment; investors should be aware of investment risks[6](index=6&type=chunk) - There are no non-operating funds occupied by controlling shareholders or related parties[7](index=7&type=chunk) - There are no external guarantees in violation of decision-making procedures[7](index=7&type=chunk) [Profit Distribution Plan](index=2&type=section&id=%E5%88%A9%E6%BD%A4%E5%88%86%E9%85%8D%E9%A0%90%E6%A1%88) The company proposes a 2025 interim cash dividend of RMB 0.90 per share (tax inclusive), totaling approximately RMB 2.35 billion, representing 48.88% of net profit attributable to ordinary shareholders - The company proposes a 2025 interim profit distribution of **RMB 0.90 per share** (tax inclusive) cash dividend[5](index=5&type=chunk) 2025 Interim Profit Distribution Plan | Indicator | Amount/Ratio | | :--- | :--- | | Cash Dividend Per Share (tax inclusive) | RMB 0.90 yuan | | Total Proposed Cash Dividend (tax inclusive) | RMB 2,348,769,178.80 yuan | | Percentage of Net Profit Attributable to Owners | 48.88% | | Bonus Shares/Capital Reserve Conversion | No | - As of June 30, 2025, net profit attributable to ordinary shareholders was **RMB 4.804711711 billion** under PRC GAAP and **RMB 4.804424175 billion** under IFRS[4](index=4&type=chunk) [Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E7%AF%80%20%E9%87%8B%E7%BE%A9) [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%A9%9E%E8%AA%9E%E9%87%8B%E7%BE%A9) This section defines common terms, including company names, currency units, and automotive glass industry terms like OEM and ARG, specifying the reporting period - The reporting period is defined as January 1 to June 30, 2025[11](index=11&type=chunk) - Key automotive glass industry terms are defined, such as OEM (Original Equipment Manufacturer) for new car glass and ARG (Automotive Replacement Glass) for aftermarket replacement glass[11](index=11&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E7%AF%80%20%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) This section provides the company's basic information and a summary of its key financial performance for the first half of 2025 [Company Basic Information](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) Fuyao Glass Industry Group Co., Ltd. (FYG) is led by Cao Dewang, headquartered in Fujian, with A-shares listed on the SSE (600660) and H-shares on the HKEX (3606) - The company's Chinese abbreviation is Fuyao Glass, and its legal representative is Cao Dewang[12](index=12&type=chunk) - The company's A-shares (600660) are listed on the SSE, and H-shares (3606) on the HKEX[16](index=16&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%92%8C%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) In H1 2025, revenue grew by 16.94% to RMB 21.45 billion, profit before tax increased by 40.46% to RMB 5.79 billion, and net profit attributable to owners rose by 37.34% to RMB 4.80 billion Key Accounting Data for H1 2025 (Unit: RMB thousand) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Revenue | 21,447,392 | 18,339,730 | 16.94 | | Profit Before Tax | 5,794,033 | 4,125,070 | 40.46 | | Period Profit Attributable to Owners of the Company | 4,804,424 | 3,498,318 | 37.34 | | Period Profit Attributable to Owners of the Company Excluding Non-recurring Gains and Losses | 4,706,683 | 3,576,317 | 31.61 | | Net Cash Generated from Operating Activities | 5,354,476 | 3,325,260 | 61.02 | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 1.84 | 1.34 | 37.31 | | Diluted Earnings Per Share (RMB/share) | 1.84 | 1.34 | 37.31 | | Return on Equity (%) | 13.47 | 11.06 | 2.41 | | Equity Attributable to Owners of the Company (RMB thousand) | 35,659,901 | 35,703,839 | -0.12 | | Total Assets (RMB thousand) | 65,720,735 | 63,263,654 | 3.88 | [Differences in Domestic and International Accounting Standards](index=8&type=section&id=%E5%A2%83%E5%85%A7%E5%A4%96%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E5%B7%AE%E7%95%B0) The company prepares financial statements under both IFRS and PRC GAAP, with the main difference being the reversal policy for asset impairment provisions Differences in Period Profit and Equity Attributable to Owners under Domestic and International Accounting Standards (Unit: RMB thousand) | Indicator | Current Period (Unaudited) | Prior Period (Unaudited) | Period-End (Unaudited) | Period-Start (Audited) | | :--- | :--- | :--- | :--- | :--- | | Under PRC GAAP (Period Profit) | 4,804,712 | 3,498,605 | - | - | | Under IFRS (Period Profit) | 4,804,424 | 3,498,318 | - | - | | Under PRC GAAP (Equity) | - | - | 35,650,716 | 35,694,366 | | Under IFRS (Equity) | - | - | 35,659,901 | 35,703,839 | - The main difference lies in the asset impairment reversal policy: IFRS allows reversal of impairment losses (except goodwill), while PRC GAAP does not[25](index=25&type=chunk) [Non-recurring Gains and Losses](index=9&type=section&id=%E9%9D%9E%E7%B6%93%E5%B8%B8%E6%80%A7%E6%90%8D%E7%9B%8A) Non-recurring gains and losses totaled RMB 98.03 million for the period, primarily from government grants, disposal of non-current assets, and fair value changes Non-recurring Gains and Losses Items and Amounts (Prepared under PRC GAAP, Unit: RMB yuan) | Non-recurring Gains and Losses Item | Amount | | :--- | :--- | | Gains or Losses from Disposal of Non-current Assets | 3,810,551 | | Government Grants Included in Current Profit or Loss | 95,072,263 | | Gains or Losses from Changes in Fair Value and Disposal of Financial Assets | 206,916 | | Other Non-operating Income and Expenses | 18,304,558 | | Less: Income Tax Impact | 18,948,117 | | Minority Interests Impact (after tax) | 417,015 | | Total | 98,029,156 | [Management Discussion and Analysis](index=10&type=section&id=%E7%AC%AC%E4%B8%89%E7%AF%80%20%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the company's operational performance, financial position, and future outlook, highlighting key drivers and strategic initiatives [Industry and Principal Business Overview](index=10&type=section&id=%E8%A1%8C%E6%A5%AD%E5%8F%8A%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E6%83%85%E6%B3%81) The company provides safety glass and automotive trim solutions for transportation, benefiting from the "new four modernizations" trend in the automotive industry - The company's principal business is providing safety glass and automotive trim solutions for various transportation vehicles[29](index=29&type=chunk) Revenue Breakdown by Product Category for H1 2025 (Unit: RMB thousand) | Product Category | Revenue | Cost of Sales | Gross Margin (%) | Revenue Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | :--- | | Automotive Glass | 19,538,352 | 13,573,123 | 30.53 | 16.16 | | Float Glass | 3,095,515 | 1,897,962 | 38.69 | 11.18 | | Other | 2,583,658 | 1,821,238 | - | - | | Less: Inter-segment Eliminations | (3,770,133) | (3,692,246) | - | - | | Total | 21,447,392 | 13,600,077 | 36.59 | 16.94 | - From January to June 2025, China's automobile production and sales were **15.621 million** and **15.653 million vehicles**, respectively, representing year-on-year increases of **12.5%** and **11.4%**[31](index=31&type=chunk) - The "new four modernizations" trend (electrification, connectivity, intelligence, sharing) in the automotive industry brings new opportunities for automotive glass, driving product development towards "safety, comfort, energy efficiency, environmental protection, aesthetics, and intelligent integration"[33](index=33&type=chunk) [Operating Performance Analysis](index=12&type=section&id=%E7%B6%93%E7%87%9F%E6%83%85%E6%B3%81%E5%88%86%E6%9E%90) In H1 2025, the company achieved significant growth in revenue, profit before tax, net profit attributable to owners, and EPS, outperforming industry averages through strategic initiatives - In H1 2025, the company's consolidated revenue was **RMB 21.447392 billion**, a year-on-year increase of **16.94%**, exceeding industry growth[38](index=38&type=chunk) - The company achieved a profit before tax of **RMB 5.794033 billion**, a year-on-year increase of **40.46%**; net profit attributable to owners was **RMB 4.804424 billion**, a year-on-year increase of **37.34%**; earnings per share were **RMB 1.84**, a year-on-year increase of **37.31%**[38](index=38&type=chunk) - The company is advancing new factory constructions in Hefei, Anhui, and Fuqing Yangxia, enhancing global delivery capabilities[41](index=41&type=chunk) - The proportion of high-value-added products (e.g., intelligent panoramic sunroof glass, dimmable glass, HUD glass) continues to increase, rising by **4.81 percentage points** compared to the same period last year[41](index=41&type=chunk) [Core Competencies](index=14&type=section&id=%E6%A0%B8%E5%BF%83%E7%AB%B6%E7%88%AD%E5%8A%9B) The company's core competencies include strong brand reputation, a professional team, transparent financial systems, a comprehensive industrial ecosystem, and a focused development strategy - Brand is Fuyao's core competitiveness, earning trust from global automakers, users, suppliers, and investors[43](index=43&type=chunk) - The company has built a relatively complete industrial ecosystem, including sand mining resources, high-quality float glass technology, R&D and manufacturing of process equipment, multi-functional integrated glass, aluminum trim industry, and a globally deployed R&D center and supply chain network[43](index=43&type=chunk) - The company has a professional, dedicated, and focused development strategy, enabling quick response to market changes and providing comprehensive solutions for automotive glass and trim[43](index=43&type=chunk) [Key Operating Performance](index=15&type=section&id=%E4%B8%BB%E8%A6%81%E7%B6%93%E7%87%9F%E6%83%85%E6%B3%81) This section details the company's H1 2025 operating performance, including financial statement changes, asset-liability structure, cash flow, capital expenditure, borrowings, foreign exchange risk, and capital efficiency [Financial Statement Item Changes](index=15&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%A7%91%E7%9B%AE%E8%AE%8A%E5%8B%95) In H1 2025, revenue and cost of sales increased due to enhanced marketing and higher-value products; net finance costs decreased, and net cash from operating activities significantly grew by 61.02% Analysis of Financial Statement Item Changes (Unit: RMB thousand) | Item | Current Period | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 21,447,392 | 18,339,730 | 16.94 | | Cost of Sales | 13,600,077 | 11,904,628 | 14.24 | | Distribution Costs | 625,336 | 520,523 | 20.14 | | Administrative Expenses | 1,597,792 | 1,348,517 | 18.49 | | Finance Costs – Net | -279,239 | -351,496 | -20.56 | | Research and Development Expenses | 882,847 | 784,109 | 12.59 | | Net Cash Generated from Operating Activities | 5,354,476 | 3,325,260 | 61.02 | | Net Cash Used in Investing Activities | -2,788,956 | -3,900,675 | -28.50 | | Net Cash Used in Financing Activities | -3,043,172 | -294,847 | 932.12 | | Other Gains/(Losses) – Net | 614,716 | -238,524 | Not Applicable | | Income Tax Expense | 986,617 | 623,521 | 58.23 | - Revenue increase primarily due to increased marketing efforts and a higher proportion of high-value-added products[45](index=45&type=chunk) - Net finance costs decreased mainly due to lower finance costs and increased finance income in the current period[49](index=49&type=chunk) - The change in other gains/(losses) - net was primarily due to foreign exchange gains of **RMB 602 million** in the current period, compared to foreign exchange losses of **RMB 14 million** in the same period last year[50](index=50&type=chunk) [Asset and Liability Status](index=17&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%83%85%E6%B3%81) As of June 30, 2025, total assets were RMB 65.72 billion, with a significant 64.65% increase in current liabilities borrowings due to new borrowings and reclassification of long-term debt Changes in Assets and Liabilities (Unit: RMB thousand) | Item Name | Current Period End | % of Total Assets at Current Period End | Prior Year End | % of Total Assets at Prior Year End | % Change from Prior Year End | | :--- | :--- | :--- | :--- | :--- | :--- | | Borrowings – Non-current Liabilities | 4,236,390 | 6.45 | 7,212,920 | 11.40 | -41.27 | | Other Non-current Liabilities | 672,587 | 1.02 | 498,898 | 0.79 | 34.81 | | Deferred Tax Liabilities | 973,837 | 1.48 | 704,771 | 1.11 | 38.18 | | Borrowings – Current Liabilities | 12,306,780 | 18.73 | 7,474,519 | 11.81 | 64.65 | | Lease Liabilities Due Within One Year | 143,040 | 0.22 | 99,456 | 0.16 | 43.82 | - Overseas assets amounted to **RMB 25.80 billion**, accounting for **39.27%** of total assets[54](index=54&type=chunk) - As of the end of the reporting period, the number of employees was **39,050**, an increase of **1,140** from the end of 2024[56](index=56&type=chunk) - The company has established a compensation policy based on fairness, competitiveness, incentives, and legality, providing comprehensive onboarding and in-service training[56](index=56&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E8%88%87%E8%B3%87%E6%9C%AC%E4%BE%86%E6%BA%90) In H1 2025, net cash from operating activities significantly increased by 61.02% to RMB 5.35 billion, while net cash used in investing and financing activities reflected capital expenditures and debt management Cash Flow Statement (Unit: RMB thousand) | Item | Current Period | Prior Year Period | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 5,354,476 | 3,325,260 | | Net Cash Used in Investing Activities | -2,788,956 | -3,900,675 | | Net Cash Used in Financing Activities | -3,043,172 | -294,847 | | Net Decrease in Cash and Cash Equivalents | -477,652 | -870,262 | - Cash paid for the acquisition of property, plant, and equipment and other long-term assets in the current period was **RMB 2.861 billion**[62](index=62&type=chunk) Interest-bearing Debt (As of June 30, 2025, Unit: RMB 100 million) | Category | Amount | | :--- | :--- | | Fixed-rate Short-term Borrowings | 63.37 | | Floating-rate Short-term Borrowings | 8.00 | | Fixed-rate Long-term Borrowings Due Within One Year | 21.95 | | Floating-rate Long-term Borrowings Due Within One Year | 24.19 | | Fixed-rate Long-term Borrowings | 23.16 | | Floating-rate Long-term Borrowings | 19.20 | | Ultra-short-term Financing Bonds | 4.00 | | Total | 163.87 | [Foreign Exchange Risk and Capital Efficiency](index=22&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%95%88%E7%8E%87) The company recorded foreign exchange gains of RMB 602 million, improved equity return to 13.47%, and maintained a healthy net cash position with a capital gearing ratio of -3.21% - The Group recorded foreign exchange gains of **RMB 602 million** in the current period, compared to foreign exchange losses of **RMB 14 million** in the same period last year[66](index=66&type=chunk) - Inventory turnover days were **84 days** (85 days in the same period last year), and trade receivables turnover days were **96 days** (93 days in the same period last year)[66](index=66&type=chunk)[67](index=67&type=chunk) - Return on equity was **13.47%** in the current period, compared to 11.06% in the same period last year, primarily due to the year-on-year increase in period profit[67](index=67&type=chunk) Capital Gearing Ratio (Prepared under IFRS, Unit: RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Borrowings | 16,543,170 | 14,687,439 | | Lease Liabilities | 570,420 | 443,195 | | Long-term Payables | 52,611 | 59,287 | | Less: Cash and Cash Equivalents | -18,276,447 | -18,733,774 | | Net Debt | -1,110,246 | -3,543,853 | | Total Equity | 35,654,096 | 35,695,042 | | Total Capital | 34,543,850 | 32,151,189 | | Capital Gearing Ratio (%) | -3.21% | -11.02% | [Commitments and Contingent Liabilities](index=23&type=section&id=%E6%89%BF%E8%AB%BE%E8%88%87%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) The company had no significant contingent liabilities during the reporting period, with details on commitments provided in the financial report notes - The company had no significant contingent liabilities during the reporting period[71](index=71&type=chunk) [Company Outlook for H2](index=24&type=section&id=%E5%85%AC%E5%8F%B8%E4%B8%8B%E5%8D%8A%E5%B9%B4%E5%B1%95%E6%9C%9B) In H2 2025, the company plans to deepen market penetration, strengthen R&D, ensure quality, enhance digitalization, improve lean management, and upskill its workforce for high-quality development - The company will deepen market penetration, build product brand culture tailored to different customer segments, and strengthen customer interaction[73](index=73&type=chunk) - Continuously strengthen R&D and innovation capabilities, build interdisciplinary teams, deeply explore cross-border technology integration, and ensure independent and controllable core technologies[73](index=73&type=chunk) - Solidify the digital foundation, build an enterprise-level data middle platform, and achieve full-process digital integration and big data operations[73](index=73&type=chunk) - Promote the transformation of frontline workers from "labor-intensive" to "knowledge-based", increasing the training of skilled workers and engineers[73](index=73&type=chunk) [Dividends and Tax Relief](index=25&type=section&id=%E8%82%A1%E6%81%AF%E5%8F%8A%E7%A8%85%E9%A0%85%E6%B8%9B%E5%85%8D) The company proposes an interim cash dividend of RMB 0.90 per share (tax inclusive), totaling RMB 2.35 billion, and details tax policies for various A-share and H-share investor types - The company proposes a 2025 interim cash dividend of **RMB 0.90 per share** (tax inclusive), totaling **RMB 2.3487691788 billion**, accounting for **48.88%** of net profit attributable to owners[74](index=74&type=chunk) - For individual A-share shareholders holding shares for over one year, dividend income is temporarily exempt from individual income tax; for holdings within one month, full tax applies; for holdings between one month and one year, tax is reduced by **50%**[77](index=77&type=chunk) - QFII and non-resident enterprise shareholders are generally subject to a **10%** corporate income tax withholding, with potential for refund under tax treaties[78](index=78&type=chunk)[79](index=79&type=chunk) - For Hong Kong market investors investing in A-shares via Stock Connect, the listed company withholds income tax at a **10%** rate[80](index=80&type=chunk)[81](index=81&type=chunk) - Overseas individual H-share resident shareholders are temporarily exempt from individual income tax; overseas non-resident enterprise H-share shareholders are subject to a **10%** corporate income tax withholding[83](index=83&type=chunk) - For mainland individual investors investing in H-shares via Stock Connect, H-share companies withhold individual income tax at a **20%** rate; mainland resident enterprises holding H-shares continuously for 12 months or more are exempt from corporate income tax on dividend income[84](index=84&type=chunk)[85](index=85&type=chunk) [Use of H-share Proceeds](index=30&type=section&id=H%E8%82%A1%E5%8B%9F%E9%9B%86%E8%B3%87%E9%87%91%E4%BD%BF%E7%94%A8) As of June 30, 2025, the net proceeds of HKD 4.31 billion from the 2021 H-share issuance have been substantially utilized for working capital, debt repayment, R&D, and market expansion - The company completed the issuance of **101,126,000 H-shares** on May 10, 2021, receiving net proceeds of **HKD 4.31278 billion**[88](index=88&type=chunk) Use of H-share Proceeds (As of June 30, 2025, Unit: Million HKD) | Proposed Use | Planned Net Proceeds | Net Proceeds Used | Unused Net Proceeds | | :--- | :--- | :--- | :--- | | Supplement Working Capital and Optimize Capital Structure | 2,587.67 | 2,566.38 | 21.29 | | Repay Interest-bearing Debt | 646.92 | 646.92 | 0 | | R&D Project Investment | 646.92 | 646.92 | 0 | | Expand Photovoltaic Glass Market and General Corporate Purposes | 431.27 | 431.27 | 0 | | Total | 4,312.78 | 4,291.49 | 21.29 | [Investment Status Analysis](index=31&type=section&id=%E6%8A%95%E8%B3%87%E7%8B%80%E6%B3%81%E5%88%86%E6%9E%90) The company adjusted equity investments, including a RMB 28.5 million capital increase by Fuyao Glass (Suzhou) to Fuyao Technology Development (Suzhou), and reported profits from key subsidiaries, with Fuyao Glass America achieving RMB 433 million net profit - The company's wholly-owned subsidiary, Fuyao Glass (Suzhou) Co., Ltd., increased capital in Fuyao Technology Development (Suzhou) Co., Ltd. by **RMB 28.5 million**[91](index=91&type=chunk) - Fuyao Group Shanghai Automotive Trim Co., Ltd. absorbed and merged with Shanghai Fuyao Bus Glass Co., Ltd[91](index=91&type=chunk) Financial Assets Measured at Fair Value (As of June 30, 2025, Unit: RMB yuan) | Asset Category | Beginning Balance | Fair Value Change Gains/Losses for the Period | Ending Balance | | :--- | :--- | :--- | :--- | | Trading Equity Instruments | 7,682,574 | 206,916 | 7,889,490 | | Unlisted Equity Instruments Measured at Fair Value Through Other Comprehensive Income | 82,682,735 | - | 82,682,735 | | Bills Receivable Measured at Fair Value Through Other Comprehensive Income | 1,921,465,582 | -9,157,197 | 2,120,650,031 | | Total | 2,011,830,891 | -8,950,281 | 2,211,222,256 | Key Holding and Participating Companies (As of June 30, 2025, Unit: RMB ten thousand) | Company Name | Company Type | Total Assets | Net Assets | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | Fujian Wanda Automotive Glass Industry Co., Ltd. | Subsidiary | 517,755.87 | 215,149.25 | 209,197.37 | 77,632.20 | | Fuyao Glass America Inc. | Subsidiary | 892,325.50 | 401,298.17 | 385,161.59 | 43,315.92 | [Risk Factors](index=34&type=section&id=%E9%A2%A8%E9%9A%AA%E6%8F%90%E7%A4%BA) The company faces risks from economic, political, and social changes, industry transformation, market competition, cost fluctuations, exchange rate volatility, technological innovation, and cybersecurity, with mitigation strategies in place - Company's operating performance is affected by economic, political, policy, legal changes, and geopolitical risks[100](index=100&type=chunk) - The "new four modernizations" development in the automotive industry poses new requirements for automotive glass; the company may face adverse effects if it fails to respond to technological changes in a timely manner[101](index=101&type=chunk) - The company faces risks from fluctuations in raw material (float glass, PVB, quartz sand, soda ash, natural gas) and labor costs[103](index=103&type=chunk) - RMB exchange rate fluctuations may impact the company's performance; the company mitigates risks by optimizing settlement currencies and utilizing foreign exchange financial instruments[105](index=105&type=chunk) - The company faces cybersecurity and data security risks and has established a multi-layered defense system and data protection control measures[107](index=107&type=chunk)[108](index=108&type=chunk) [Other Disclosures](index=38&type=section&id=%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A0%85) The company actively responded to the SSE's "Quality Improvement and Return Enhancement" initiative, achieving double growth in revenue and profit, driven by innovation and a proactive dividend policy - The company actively responded to the SSE's "Quality Improvement and Return Enhancement" initiative, with H1 revenue growing by **16.94%** and net profit attributable to owners growing by **37.34%**[111](index=111&type=chunk) - The proportion of high-value-added products continues to increase, rising by **4.81 percentage points** compared to the same period last year, reflecting innovation-driven industrial upgrading[112](index=112&type=chunk) - The company proposes a 2025 interim cash dividend of **RMB 0.90 per share** (tax inclusive), accounting for **48.88%** of net profit attributable to owners[112](index=112&type=chunk) - The company strengthens investor communication through various channels, including general meetings, performance briefings, on-site visits, conference calls, and online interactions[112](index=112&type=chunk) [Corporate Governance, Environment, and Society](index=40&type=section&id=%E7%AC%AC%E5%9B%9B%E7%AF%80%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%92%B0%E5%A2%83%E5%92%8C%E7%A4%BE%E6%9C%83) This section outlines the company's corporate governance structure, board committees, environmental information disclosure, and contributions to poverty alleviation and rural revitalization [Profit Distribution Plan](index=40&type=section&id=%E5%88%A9%E6%BD%A4%E5%88%86%E9%85%8D%E9%A0%90%E6%A1%88) The company's semi-annual profit distribution plan proposes a cash dividend of RMB 9 per 10 shares (tax inclusive), with no bonus shares or capital reserve conversions Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Distribution or Conversion | Yes | | Number of Bonus Shares per 10 Shares (shares) | 0 | | Dividend per 10 Shares (RMB) (tax inclusive) | 9 | | Number of Shares Converted from Capital Reserve per 10 Shares (shares) | 0 | [Corporate Governance Overview](index=40&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E6%A6%82%E8%A6%BD) The company maintains high corporate governance standards, adhering to the Corporate Governance Code and Model Code for Securities Transactions by Directors, with a 9-member board including 3 independent non-executive directors - The company has adopted and strictly complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[115](index=115&type=chunk)[117](index=117&type=chunk) - The Board of Directors consists of **9 directors**, including **3 independent non-executive directors**, meeting HKEX Listing Rules requirements[118](index=118&type=chunk) [Board Committees](index=41&type=section&id=%E8%91%A3%E4%BA%8B%E5%B1%80%E5%B0%88%E9%96%80%E5%A7%94%E5%93%A1%E6%9C%83) The company has Audit, Remuneration and Appraisal, Nomination, and Strategic Development Committees, each structured to ensure independence and professionalism in governance - The Audit Committee comprises three non-executive directors (including two independent non-executive directors), with Mr. Xue Zuyun, an independent non-executive director, as chairman[119](index=119&type=chunk) - The Remuneration and Appraisal Committee comprises one executive director and two independent non-executive directors, with Mr. Liu Jing, an independent non-executive director, as chairman[121](index=121&type=chunk) - The Nomination Committee comprises three members, with independent non-executive directors forming the majority, and Mr. Da Zhenghao, an independent non-executive director, as chairman[122](index=122&type=chunk) - The Strategic Development Committee comprises three members, with Mr. Cao Dewang, an executive director and chairman, as chairman[123](index=123&type=chunk) [Environmental Information Disclosure](index=43&type=section&id=%E7%92%B0%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2) The company and its key subsidiaries are listed as legally required environmental information disclosure enterprises, with relevant data accessible through the official disclosure system - The company and its main subsidiaries (Fuyao Glass Industry Group Co., Ltd. and Fujian Wanda Automotive Glass Industry Co., Ltd.) have been included in the list of enterprises required to disclose environmental information by law[127](index=127&type=chunk) - Relevant environmental information can be accessed through the Enterprise Environmental Information Legal Disclosure System (Fujian Beta version)[127](index=127&type=chunk) [Poverty Alleviation and Rural Revitalization](index=44&type=section&id=%E8%84%AB%E8%B2%B6%E6%94%BB%E5%A0%85%E8%88%87%E9%84%89%E6%9D%91%E6%8C%AF%E8%88%88) Through the Heren Charitable Foundation, established by Mr. Cao Dewang with a donation of 300 million Fuyao Glass shares, the company invested RMB 1 million in poverty alleviation and rural education revitalization projects - Through the Heren Charitable Foundation, **RMB 1 million** was invested in poverty alleviation and rural education revitalization projects[129](index=129&type=chunk) - The Heren Charitable Foundation is an independent charitable foundation, not controlled by Mr. Cao Dewang or his concert parties[129](index=129&type=chunk) [Significant Matters](index=45&type=section&id=%E7%AC%AC%E4%BA%94%E7%AF%80%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A0%85) This section covers the company's fulfillment of commitments, absence of major litigation, integrity status, and details of significant related party transactions during the reporting period [Fulfillment of Commitments](index=45&type=section&id=%E6%89%BF%E8%AB%BE%E4%BA%8B%E9%A0%85%E5%B1%A5%E8%A1%8C) The company strictly fulfilled its dividend distribution commitment outlined in the "Fuyao Glass Industry Group Co., Ltd. Shareholder Dividend Return Plan for the Next Three Years (2024–2026)" published on March 16, 2024 - The company strictly fulfilled its shareholder dividend return plan for the next three years (2024–2026) published on March 16, 2024[130](index=130&type=chunk) [Major Litigation and Integrity Status](index=45&type=section&id=%E9%87%8D%E5%A4%A7%E8%A8%B4%E8%A8%9F%E8%88%87%E8%AA%A0%E4%BF%A1%E7%8B%80%E6%B3%81) The company had no major litigation or arbitration matters during the reporting period, and its integrity status, along with that of its controlling shareholder and actual controller, remained sound - The company had no major litigation or arbitration matters during the reporting period[131](index=131&type=chunk) - The company and its actual controller had no unfulfilled effective court judgments or overdue large debts[132](index=132&type=chunk) [Significant Related Party Transactions](index=46&type=section&id=%E9%87%8D%E5%A4%A7%E9%97%9C%E8%81%AF%E4%BA%A4%E6%98%93) The company engaged in various related party transactions, including property leases with Huan Chuang Germany and Fujian Yaohua Industrial Village, and procurement/utility transactions with Tray King Packaging (Fuzhou) - The company's wholly-owned subsidiary, Fuyao Europe Glass Industry Co., Ltd., leased properties from Huan Chuang Germany Co., Ltd., with the lease term extending to December 31, 2029[134](index=134&type=chunk) - The company leased staff dormitories, canteens, training centers, and standard factory buildings from Fujian Yaohua Industrial Village Development Co., Ltd. for a term of **4 years**, starting from January 1, 2025[135](index=135&type=chunk) - The company engaged in raw and auxiliary material procurement and utility fee transactions (water, electricity, gas) with Tray King Packaging (Fuzhou) Co., Ltd. (a joint venture)[139](index=139&type=chunk)[144](index=144&type=chunk) - The company signed multiple lease contracts and supplementary contracts with Fujian Yaohua Industrial Village Development Co., Ltd., adjusting lease areas and fees[140](index=140&type=chunk)[142](index=142&type=chunk)[146](index=146&type=chunk) Related Party Transactions Related to Ordinary Operations in H1 2025 (Disclosed in temporary announcements, Unit: RMB ten thousand) | Related Party | Relationship | Type of Related Party Transaction | 2025 Estimated Amount | 2025 H1 Actual Amount | | :--- | :--- | :--- | :--- | :--- | | Tray King Packaging (Fuzhou) Co., Ltd. | Joint Venture | Purchase of Goods | 14,000.00 | 8,290.73 | | Tray King Packaging (Fuzhou) Co., Ltd. | Joint Venture | Sale of Water, Electricity | 170.00 | 71.40 | | Tray King Packaging (Fuzhou) Co., Ltd. | Joint Venture | Provision of Services | 400.00 | 200.69 | | Fujian Yaohua Industrial Village Development Co., Ltd. | Other | Lease of Property | 3,094.11 | 3,008.16 | | Huan Chuang Germany Co., Ltd. | Other | Lease of Property | 1,369.08 | 1,149.55 | | Total | - | - | 19,053.19 | 12,720.53 | Related Party Transactions Not Disclosed in Temporary Announcements in H1 2025 (Unit: RMB ten thousand) | Related Party | Relationship | Type of Related Party Transaction | Amount of Related Party Transaction | | :--- | :--- | :--- | :--- | | Fujian Sanfeng Auto Parts Development Co., Ltd. | Other | Lease of Property | 692.87 | | Fujian Sanfeng Auto Parts Development Co., Ltd. | Other | Purchase of Water, Electricity, etc. | 23.76 | | Fuyao Group Beijing Futong Safety Glass Co., Ltd. | Joint Venture | Acceptance of Services | 162.01 | | National Intelligent Connected Vehicle Innovation Center (Beijing) Co., Ltd. | Other | Acceptance of Services | 18.87 | | Fujian Fuyao University of Science and Technology | Other | Purchase of Long-term Assets | 14.15 | | Fujian Yaohua Industrial Village Development Co., Ltd. | Other | Lease of Property | 59.89 | | Fujian Yaohua Industrial Village Development Co., Ltd. | Other | Purchase of Water, Electricity | 130.32 | | Fujian Yaohua Industrial Village Development Co., Ltd. | Other | Sale of Water, Electricity | 58.33 | | Total | - | - | 1,160.20 | [Share Changes and Shareholder Information](index=53&type=section&id=%E7%AC%AC%E5%85%AD%E7%AF%80%20%E8%82%A1%E4%BB%BD%E8%AE%8A%E5%8B%95%E5%8F%8A%E8%82%A1%E6%9D%B1%E6%83%85%E6%B3%81) This section details the company's share capital, shareholder structure, and holdings of directors, supervisors, and senior management as of June 30, 2025 [Share Capital Changes](index=53&type=section&id=%E8%82%A1%E6%9C%AC%E8%AE%8A%E5%8B%95) The company's total share capital and share structure remained unchanged during the reporting period - The company's total share capital and share structure remained unchanged during the reporting period[152](index=152&type=chunk) [Shareholder Information](index=53&type=section&id=%E8%82%A1%E6%9D%B1%E4%BF%A1%E6%81%AF) As of June 30, 2025, the company had 93,264 shareholders. HKSCC NOMINEES LIMITED, San Yi Development Co., Ltd., and Hong Kong Securities Clearing Company Limited were among the top ten shareholders - As of June 30, 2025, the company had a total of **93,264 shareholders** (**93,220 A-share shareholders** and **44 H-share shareholders**)[153](index=153&type=chunk) Top Ten Shareholders' Shareholdings as of the End of the Reporting Period (Excluding shares lent through securities lending) | Shareholder Name | Number of Shares Held at Period End | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | HKSCC NOMINEES LIMITED | 595,825,494 | 22.83 | Unknown | | San Yi Development Co., Ltd. | 390,578,816 | 14.97 | Overseas Legal Person | | Hong Kong Securities Clearing Company Limited | 373,325,689 | 14.31 | Unknown | | Heren Charitable Foundation | 169,512,888 | 6.50 | Domestic Non-state-owned Legal Person | | Bai Yongli | 37,435,915 | 1.43 | Unknown | | Industrial and Commercial Bank of China Co., Ltd. - Huatai-PineBridge CSI 300 ETF | 28,476,494 | 1.09 | Unknown | | China Securities Finance Corporation Limited | 28,095,485 | 1.08 | Unknown | | Li Fuqing | 24,284,820 | 0.93 | Unknown | | Fujian Yaohua Industrial Village Development Co., Ltd. | 24,077,800 | 0.92 | Domestic Non-state-owned Legal Person | | Li Haiqing | 22,198,222 | 0.85 | Unknown | - San Yi Development Co., Ltd. and Fujian Yaohua Industrial Village Development Co., Ltd. are controlled by members of the same family[156](index=156&type=chunk) [Shareholdings of Directors, Supervisors, and Senior Management](index=55&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%AE%A1%E6%8C%81%E8%82%A1) As of June 30, 2025, Chairman Cao Dewang held 414.97 million A-shares (15.90% of total share capital), with no changes in holdings for current or former directors, supervisors, and senior management during the period Interests of Directors, Supervisors, and Chief Executive in Shares (As of June 30, 2025) | Name | Position | Capacity/Nature of Interest | Number of Shares Held | Percentage of Total Issued Share Capital (%) | Share Class | | :--- | :--- | :--- | :--- | :--- | :--- | | Cao Dewang | Executive Director and Chairman | Beneficial Owner/Interest in Controlled Corporation | 414,971,444(L) | 15.90(L) | A-share | | Cao Hui | Executive Director and Vice Chairman | Interest in Controlled Corporation | 12,086,605(L) | 0.46(L) | A-share | | Li Xiaoxi | Board Secretary | - | 365,600 | - | H-share | - During the reporting period, there were no changes in the number of shares held by current and resigned directors, supervisors, and senior management[167](index=167&type=chunk) [Major Shareholder Interests](index=56&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A) As of June 30, 2025, Ms. Chen Fengying (spouse of Mr. Cao Dewang) was deemed to have an interest in 414.97 million A-shares, and several institutional investors held 5% or more of the company's H-shares - Ms. Chen Fengying (spouse of Mr. Cao Dewang) is deemed to have an interest in the **414,971,444 A-shares** held by Mr. Cao Dewang[163](index=163&type=chunk)[165](index=165&type=chunk) Interests and Short Positions of Major Shareholders in Shares and Related Shares (As of June 30, 2025) | Name | Capacity/Nature of Interest | Number of Shares Held | Percentage of Total Issued Share Capital (%) | Share Class | | :--- | :--- | :--- | :--- | :--- | | Chen Fengying | Spouse's Interest/Interest in Controlled Corporation | 414,971,444(L) | 15.90(L) | A-share | | San Yi Development Co., Ltd. | Beneficial Owner/Interest in Controlled Corporation | 390,578,816(L) | 14.97(L) | A-share | | Heren Charitable Foundation | Beneficial Owner | 169,512,888(L) | 6.50(L) | A-share | | BlackRock, Inc. | Interest in Controlled Corporation | 36,098,457(L) | 1.38(L) | H-share | | Citigroup Inc. | Interest in Controlled Corporation/Approved Lending Agent | 41,799,790(L) | 1.60(L) | H-share | | JPMorgan Chase & Co. | Beneficial Owner/Investment Manager, etc. | 82,887,481(L) | 3.18(L) | H-share | | Mitsubishi UFJ Financial Group, Inc. | Interest in Controlled Corporation | 36,735,600(L) | 1.41(L) | H-share | [Bond-Related Information](index=58&type=section&id=%E7%AC%AC%E4%B8%83%E7%AF%80%20%E5%82%B5%E5%88%B8%E7%9B%B8%E9%97%9C%E6%83%85%E6%B3%81) This section provides details on the company's non-financial enterprise debt financing instruments and key financial indicators related to its debt [Non-Financial Enterprise Debt Financing Instruments](index=58&type=section&id=%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E6%A5%AD%E5%82%B5%E5%8B%99%E8%9E%8D%E8%B3%87%E5%B7%A5%E5%85%B7) On June 17, 2025, the company issued its first tranche of ultra-short-term financing bonds (25 Fuyao Glass SCP001) for RMB 400 million at 1.75%, maturing on December 13, 2025 Basic Information on Non-Financial Enterprise Debt Financing Instruments (Unit: RMB 100 million) | Bond Name | Abbreviation | Code | Issue Date | Interest Commencement Date | Maturity Date | Bond Balance | Interest Rate (%) | Repayment Method | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 First Tranche Ultra-short-term Financing Bonds | 25 Fuyao Glass SCP001 | 012581413 | June 17, 2025 | June 19, 2025 | December 13, 2025 | 4 | 1.75 | One-off principal and interest repayment at maturity | [Key Accounting Data and Financial Indicators](index=58&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%95%B8%E6%93%9A%E5%92%8C%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) As of the reporting period end, liquidity ratios decreased, the asset-liability ratio slightly increased to 45.76%, while profitability and solvency indicators like EBITDA to total debt ratio and interest coverage ratios significantly improved Key Accounting Data and Financial Indicators (Prepared under PRC GAAP, Unit: RMB yuan) | Key Indicator | Current Period End/Current Period (Jan-Jun) | Prior Year End/Prior Year Period | % Change from Prior Year End/Prior Year Period | | :--- | :--- | :--- | :--- | | Current Ratio | 1.61 | 2.02 | -20.30 | | Quick Ratio | 1.34 | 1.69 | -20.71 | | Asset-Liability Ratio (%) | 45.76 | 43.58 | 2.18 | | Net Profit After Deducting Non-recurring Gains and Losses | 4,706,682,555 | 3,576,317,296 | 31.61 | | EBITDA to Total Debt Ratio | 0.36 | 0.27 | 33.33 | | Interest Coverage Ratio | 29.74 | 23.68 | 25.59 | | Cash Interest Coverage Ratio | 32.48 | 24.04 | 35.11 | | EBITDA Interest Coverage Ratio | 37.13 | 31.06 | 19.54 | | Loan Repayment Rate (%) | 100.00 | 100.00 | 0 | | Interest Payment Rate (%) | 100.00 | 100.00 | 0 | - Net profit after deducting non-recurring gains and losses increased by **31.61%**, mainly due to revenue growth and quality and efficiency improvements[173](index=173&type=chunk) - EBITDA to total debt ratio, interest coverage ratio, cash interest coverage ratio, and EBITDA interest coverage ratio all significantly improved, reflecting enhanced profitability and solvency[173](index=173&type=chunk) [Financial Report](index=60&type=section&id=%E7%AC%AC%E5%85%AB%E7%AF%80%20%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A) This section presents the company's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, along with detailed notes [Condensed Consolidated Interim Financial Statements](index=60&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section provides the company's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, including the balance sheet, income statement, comprehensive income statement, statement of changes in equity, and cash flow statement - The condensed consolidated interim financial statements are unaudited and were approved for publication by the Board of Directors on August 19, 2025[187](index=187&type=chunk) - The financial statements are presented in **RMB thousand** and prepared in accordance with International Financial Reporting Standards (IFRS)[186](index=186&type=chunk)[188](index=188&type=chunk) [Condensed Consolidated Interim Balance Sheet](index=60&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E8%B2%A1%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, total assets were RMB 65.72 billion, total liabilities RMB 30.07 billion, and equity attributable to owners RMB 35.66 billion Summary of Condensed Consolidated Interim Balance Sheet (Unit: RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-current Assets | 28,804,003 | 26,860,571 | | Total Current Assets | 36,916,732 | 36,403,083 | | Total Assets | 65,720,735 | 63,263,654 | | Total Current Liabilities | 22,942,633 | 17,988,932 | | Total Non-current Liabilities | 7,124,006 | 9,579,680 | | Equity Attributable to Owners of the Company | 35,659,901 | 35,703,839 | | Total Equity | 35,654,096 | 35,695,042 | [Condensed Consolidated Interim Income Statement](index=62&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E5%88%A9%E6%BD%A4%E8%A1%A8) In H1 2025, the company reported revenue of RMB 21.45 billion, gross profit of RMB 7.85 billion, profit before tax of RMB 5.79 billion, and net profit attributable to owners of RMB 4.80 billion Summary of Condensed Consolidated Interim Income Statement (Unit: RMB thousand) | Item | Cumulative for June 2025 | Cumulative for June 2024 | | :--- | :--- | :--- | | Revenue | 21,447,392 | 18,339,730 | | Gross Profit | 7,847,315 | 6,435,102 | | Operating Profit | 5,527,914 | 3,771,323 | | Profit Before Tax | 5,794,033 | 4,125,070 | | Period Profit | 4,807,416 | 3,501,549 | | Profit Attributable to Owners of the Company | 4,804,424 | 3,498,318 | | Basic and Diluted Earnings Per Share (RMB) | 1.84 | 1.34 | [Condensed Consolidated Interim Statement of Comprehensive Income](index=63&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) In H1 2025, period profit was RMB 4.81 billion, with total comprehensive income of RMB 4.66 billion, primarily impacted by negative foreign currency translation differences Summary of Condensed Consolidated Interim Statement of Comprehensive Income (Unit: RMB thousand) | Item | Cumulative for June 2025 | Cumulative for June 2024 | | :--- | :--- | :--- | | Profit for the Period | 4,807,416 | 3,501,549 | | Other Comprehensive Income: Foreign Currency Translation Differences | (150,824) | 95,874 | | Total Comprehensive Income for the Period | 4,656,592 | 3,597,423 | | Total Comprehensive Income Attributable to Owners of the Company | 4,653,600 | 3,594,192 | [Condensed Consolidated Interim Statement of Changes in Equity](index=64&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, equity attributable to owners totaled RMB 35.66 billion, reflecting period profit, foreign currency translation differences, and dividend payments Summary of Condensed Consolidated Interim Statement of Changes in Equity (Attributable to owners of the company, Unit: RMB thousand) | Item | Share Capital | Share Premium | Other Reserves | Retained Earnings | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 2,609,744 | 9,680,392 | 4,778,234 | 18,635,469 | 35,703,839 | | Profit for the Period | - | - | - | 4,804,424 | 4,804,424 | | Foreign Currency Translation Differences | - | - | (150,824) | - | (150,824) | | Dividends Declared Related to 2024 | - | - | - | (4,697,538) | (4,697,538) | | As of June 30, 2025 | 2,609,744 | 9,680,392 | 4,627,410 | 18,742,355 | 35,659,901 | [Condensed Consolidated Interim Cash Flow Statement](index=66&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2025, net cash from operating activities was RMB 5.35 billion, while net cash used in investing and financing activities was RMB 2.79 billion and RMB 3.04 billion, respectively Summary of Condensed Consolidated Interim Cash Flow Statement (Unit: RMB thousand) | Item | Cumulative for June 2025 | Cumulative for June 2024 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 5,354,476 | 3,325,260 | | Net Cash Used in Investing Activities | -2,788,956 | -3,900,675 | | Net Cash Used in Financing Activities | -3,043,172 | -294,847 | | Net Decrease in Cash and Cash Equivalents | -477,652 | -870,262 | | Cash and Cash Equivalents at End of Period | 18,276,447 | 12,536,763 | [Notes to the Condensed Consolidated Interim Financial Information](index=67&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated interim financial statements, covering accounting policies, financial risk management, key estimates, segment information, and related party transactions - The Group's condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS)[188](index=188&type=chunk) - The Group faces market risks (foreign exchange risk, interest rate risk), credit risk, and liquidity risk, managed through overall risk management by management[191](index=191&type=chunk) - Key accounting estimates and judgments include estimated useful lives and residual values of property, plant, and equipment, net realizable value of inventories, current and deferred income tax, and impairment of financial and non-financial assets[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk) - The Group operates as a single operating segment; no single external customer accounted for **10% or more** of the Group's revenue during the reporting period[216](index=216&type=chunk)[217](index=217&type=chunk) - Income tax expense is affected by tax laws and preferential tax rates in China, Hong Kong, the US, Russia, Germany, and other regions, and includes foreign exchange gains due to exchange rate fluctuations[249](index=249&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk)[254](index=254&type=chunk)[255](index=255&type=chunk) - Related party transactions include sales of goods, purchases of services, rental income, interest expense on lease liabilities, and key management personnel compensation, all complying with relevant disclosure requirements[262](index=262&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)

香 港 交 易 及 結 算 所 有 限 公 司、香 港 聯 合 交 易 所 有 限 公 司 及 新 加 坡 證 券 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。 COMBA TELECOM SYSTEMS HOLDINGS LIMITED 京信通信系統控股有限公司 （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （香 港 股 份 代 號：2342） （新 加 坡 股 份 代 號：STC） 截至二零二五年六月三十日止六個月之 中期業績公告 財務摘要 業 績 京 信 通 信 系 統 控 股 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）董 事（「董 事」）欣 然 呈 報 本 公 司 及 其 附 屬 公 司（統 稱 為「本 集 團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 （「期 內」）之 ...

[Performance Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) [Financial Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) Xiaomi Group demonstrated strong performance in Q2 and H1 2025, with several key financial indicators reaching record highs, including a 30.5% YoY increase in Q2 total revenue to 116.0 billion RMB and a 75.4% YoY increase in adjusted net profit to 10.8 billion RMB Performance Summary for the Three Months Ended June 30, 2025 | Indicator | Q2 2025 | Q2 2024 | YoY Change | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue (Billion RMB) | 116.0 | 88.9 | +30.5% | 111.3 | +4.2% | | Gross Profit (Billion RMB) | 26.1 | 18.4 | +41.9% | 25.4 | +2.7% | | Operating Profit (Billion RMB) | 13.4 | 5.9 | +128.2% | 13.1 | +2.4% | | Profit for the Period (Billion RMB) | 11.9 | 5.1 | +134.2% | 10.9 | +9.0% | | Adjusted Net Profit (Billion RMB) | 10.8 | 6.2 | +75.4% | 10.7 | +1.5% | Performance Summary for the Six Months Ended June 30, 2025 | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue (Billion RMB) | 227.3 | 164.4 | +38.2% | | Gross Profit (Billion RMB) | 51.5 | 35.2 | +46.2% | | Operating Profit (Billion RMB) | 26.6 | 9.6 | +177.5% | | Profit for the Period (Billion RMB) | 22.8 | 9.2 | +146.3% | | Adjusted Net Profit (Billion RMB) | 21.5 | 12.7 | +69.8% | [Business Review and Outlook](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) [Overall Performance](index=2&type=section&id=1.%20整體表現) In Q2 2025, Xiaomi Group achieved record highs in total revenue, profitability, and all business segment revenues under its 'Steady and Progressive' core operating strategy, while advancing its 'Human-Car-Home Smart Ecosystem' strategy - Q2 2025 total revenue reached **116.0 billion RMB**, a **30.5% YoY increase**; adjusted net profit was **10.8 billion RMB**, a **75.4% YoY increase**, both setting new records[9](index=9&type=chunk) - Revenue from the 'Smartphone × AIoT' segment was **94.7 billion RMB**, a **14.8% YoY increase**; 'Smart Electric Vehicles and AI & Other Innovative Businesses' segment revenue was **21.3 billion RMB**, with both segments achieving record highs[9](index=9&type=chunk) - Global MIUI Monthly Active Users (MAU) reached **731.2 million**, an **8.2% YoY increase**; AIoT platform connected IoT devices reached **989.1 million**, a **20.3% YoY increase**[10](index=10&type=chunk) - Q2 2025 R&D expenditure reached **7.8 billion RMB**, a **41.2% YoY increase**, with R&D personnel reaching **22,641**, a new record[10](index=10&type=chunk) [Smartphone × AIoT](index=4&type=section&id=2.%20手機×AIoT) In Q2 2025, the 'Smartphone × AIoT' segment revenue reached 94.7 billion RMB, a 14.8% YoY increase with a gross profit margin of 21.6%, driven by strong performance in smartphones, record-high IoT and lifestyle consumer products, and steady internet services growth [Smartphones](index=4&type=section&id=%E6%99%BA%E8%83%BD%E6%89%8B%E6%A9%9F) In Q2 2025, smartphone business revenue was 45.5 billion RMB with a gross profit margin of 11.5%, maintaining its global top-three position with 42.4 million units shipped, demonstrating strong global market competitiveness Q2 2025 Smartphone Business Key Indicators | Indicator | Value | | :--- | :--- | | Business Revenue (Billion RMB) | 45.5 | | Gross Profit Margin | 11.5% | | Global Shipments (Million units) | 42.4 (+0.6% YoY) | | Global Market Share | 14.7% (Global Top 3) | - Achieved excellent performance in multiple regional markets: ranked **first in Southeast Asia** (18.9% market share), **second in Europe** (23.4% market share), and maintained **second in the Middle East and Latin America**[16](index=16&type=chunk) [IoT and Lifestyle Consumer Products](index=4&type=section&id=IoT%E8%88%87%E7%94%9F%E6%B4%BB%E6%B6%88%E8%B2%BB%E7%94%A2%E5%93%81) In Q2 2025, IoT and lifestyle consumer products revenue reached a record high of 38.7 billion RMB, a 44.7% YoY increase with a gross profit margin of 22.5%, driven by strong growth in smart large home appliances and leading positions in wearables and tablets Q2 2025 IoT and Lifestyle Consumer Products Key Indicators | Indicator | Value | | :--- | :--- | | Business Revenue (Billion RMB) | 38.7 (+44.7% YoY) | | Gross Profit Margin | 22.5% (+2.8 pct YoY) | | AIoT Platform Connected Devices (Million units) | 989.1 (+20.3% YoY) | | Smart Large Home Appliances Revenue Growth | +66.2% YoY | - Ranked **first globally in wearable wristband device shipments** and **second globally in TWS earphone shipments**[20](index=20&type=chunk) [Internet Services](index=5&type=section&id=%E4%BA%92%E8%81%AF%E7%B6%B2%E6%9C%8D%E5%8B%99) In Q2 2025, internet services revenue reached 9.1 billion RMB, a 10.1% YoY increase with a gross profit margin of 75.4%, driven by record-high global and mainland China MAU and a new high for overseas internet services revenue contribution Q2 2025 Internet Services Key Indicators | Indicator | Value | | :--- | :--- | | Business Revenue (Billion RMB) | 9.1 (+10.1% YoY) | | Gross Profit Margin | 75.4% | | Global MIUI Monthly Active Users (Million) | 731.2 (+8.2% YoY) | | Advertising Business Revenue (Billion RMB) | 6.8 (+14.6% YoY) | | Overseas Internet Services Revenue (Billion RMB) | 3.0 (+12.6% YoY) | [Smart Electric Vehicles and AI & Other Innovative Businesses](index=6&type=section&id=3.%20智能電動汽車及AI等創新業務) In Q2 2025, this segment's revenue reached 21.3 billion RMB with a gross profit margin of 26.4%, narrowing operating loss to 0.3 billion RMB, driven by 81,302 new vehicle deliveries and strong market reception for the new Xiaomi YU7 SUV series Q2 2025 Smart Electric Vehicles and AI & Other Innovative Businesses Key Indicators | Indicator | Value | | :--- | :--- | | Total Segment Revenue (Billion RMB) | 21.3 | | Smart Electric Vehicle Revenue (Billion RMB) | 20.6 | | Segment Gross Profit Margin | 26.4% | | Segment Operating Loss (Billion RMB) | 0.3 | | New Vehicle Deliveries (Units) | 81,302 | - Launched the first SUV product, Xiaomi YU7 series, with **over 240,000 locked orders within 18 hours** of sales, indicating strong demand[25](index=25&type=chunk) - The Xiaomi SU7 Ultra production car achieved the **fastest production EV lap time on the Nürburgring Nordschleife** at 7 minutes 04.957 seconds[28](index=28&type=chunk) [Corporate Social Responsibility](index=7&type=section&id=4.%20企業社會責任) Xiaomi Group actively fulfills its corporate social responsibility through continued investment in low-carbon practices, disaster relief, and technological innovation, including significant increases in green electricity usage and substantial donations for flood relief - In low-carbon practices, green electricity usage in offices increased by **over 270% YoY** in H1, and solar power generation at the car factory reduced carbon emissions by **over 4,160 tons**[29](index=29&type=chunk) - In disaster relief, donated **5 million RMB in cash and 0.35 million RMB in supplies** to flood-affected areas in North China, and **500 million Myanmar Kyat** to the Myanmar Red Cross for earthquake relief[29](index=29&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) [Year-over-Year Analysis (Q2 2025 vs Q2 2024)](index=8&type=section&id=2025%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E8%88%872024%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E6%AF%94%E8%BC%83) In Q2 2025, total revenue increased by 30.5% YoY to 116.0 billion RMB, primarily driven by strong growth in the smart electric vehicle business, leading to a 41.9% YoY increase in gross profit to 26.1 billion RMB and a significant 128.2% YoY increase in operating profit to 13.4 billion RMB Revenue by Segment (Year-over-Year) | Segment | Q2 2025 Revenue (Billion RMB) | Q2 2024 Revenue (Billion RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Smartphone × AIoT | 94.7 | 82.5 | +14.8% | | Smart Electric Vehicles and AI & Other Innovative Businesses | 21.3 | 6.4 | +233.9% | | **Total** | **116.0** | **88.9** | **+30.5%** | Gross Profit and Gross Profit Margin by Segment (Year-over-Year) | Segment | Q2 2025 Gross Profit (Billion RMB) | Q2 2025 Gross Profit Margin | Q2 2024 Gross Profit (Billion RMB) | Q2 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Smartphone × AIoT | 20.5 | 21.6% | 17.4 | 21.1% | | Smart Electric Vehicles and AI & Other Innovative Businesses | 5.6 | 26.4% | 1.0 | 15.4% | | **Total** | **26.1** | **22.5%** | **18.4** | **20.7%** | - R&D expenditure increased by **41.2% YoY to 7.8 billion RMB**, primarily due to increased R&D investment related to smart electric vehicles and AI & other innovative businesses[54](index=54&type=chunk) - Profit for the period increased by **134.2% YoY to 11.9 billion RMB**; adjusted net profit increased by **75.4% YoY to 10.8 billion RMB**[63](index=63&type=chunk)[64](index=64&type=chunk) [Quarter-over-Quarter Analysis (Q2 2025 vs Q1 2025)](index=17&type=section&id=2025%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E8%88%872025%E5%B9%B4%E7%AC%AC%E4%B8%80%E5%AD%A3%E5%BA%A6%E6%AF%94%E8%BC%83) In Q2 2025, total revenue increased by 4.2% QoQ to 116.0 billion RMB, with a slight decrease in overall gross profit margin from 22.8% to 22.5%, while profit for the period increased by 9.0% QoQ to 11.9 billion RMB Revenue by Segment (Quarter-over-Quarter) | Segment | Q2 2025 Revenue (Billion RMB) | Q1 2025 Revenue (Billion RMB) | QoQ Change | | :--- | :--- | :--- | :--- | | Smartphone × AIoT | 94.7 | 92.7 | +2.1% | | Smart Electric Vehicles and AI & Other Innovative Businesses | 21.3 | 18.6 | +14.4% | | **Total** | **116.0** | **111.3** | **+4.2%** | Gross Profit and Gross Profit Margin by Segment (Quarter-over-Quarter) | Segment | Q2 2025 Gross Profit (Billion RMB) | Q2 2025 Gross Profit Margin | Q1 2025 Gross Profit (Billion RMB) | Q1 2025 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Smartphone × AIoT | 20.5 | 21.6% | 21.1 | 22.8% | | Smart Electric Vehicles and AI & Other Innovative Businesses | 5.6 | 26.4% | 4.3 | 23.2% | | **Total** | **26.1** | **22.5%** | **25.4** | **22.8%** | - Smartphone gross profit margin decreased from **12.4% to 11.5%**, primarily due to increased promotional efforts during the 618 e-commerce festival and intensified competition in overseas markets[85](index=85&type=chunk) - Smart electric vehicle business gross profit margin increased from **23.2% to 26.4%**, primarily benefiting from lower core component costs, reduced unit manufacturing costs, and increased deliveries of high-spec models[87](index=87&type=chunk) [Non-IFRS Measures: Adjusted Net Profit](index=25&type=section&id=%E9%9D%9E%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F%EF%BC%9A%E7%B6%93%E8%AA%BF%E6%95%B4%E6%B7%A8%E5%88%A9%E6%BD%A4) The company uses adjusted net profit as a non-IFRS measure to exclude the impact of non-operating items such as share-based compensation and fair value changes of investments, with Q2 2025 adjusted net profit reaching 10.83 billion RMB and a net profit margin of 9.3% Reconciliation of Profit for the Period to Adjusted Net Profit (Q2 2025) | Item (Million RMB) | Amount | | :--- | :--- | | **Profit for the Period (Reported)** | **11,873.2** | | Add: Share-based compensation | 1,269.6 | | Less: Net fair value changes of investments | (2,870.1) | | Add: Amortization of intangible assets acquired | 36.0 | | Add: Changes in fair value of financial liabilities to investors | 253.6 | | Add: Income tax effect | 268.4 | | **Adjusted Net Profit** | **10,830.7** | [Liquidity and Financial Resources](index=28&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, the company maintained a robust financial position with cash and cash equivalents of 3.6 billion RMB and total cash reserves of 23.59 billion RMB, supported by 23.5 billion RMB in net cash generated from operating activities during the quarter - As of June 30, 2025, cash and cash equivalents were **3.6 billion RMB**, and total cash reserves (including various deposits and short-term investments) were **23.59 billion RMB**[114](index=114&type=chunk) Q2 2025 Condensed Cash Flow Statement (Million RMB) | Item | Amount | | :--- | :--- | | Net cash generated from operating activities | 23,545.2 | | Net cash used in investing activities | (70,049.4) | | Net cash used in financing activities | (3,643.1) | | **Net decrease in cash and cash equivalents** | **(50,147.3)** | - As of June 30, 2025, total borrowings were **2.89 billion RMB**[122](index=122&type=chunk) - As of June 30, 2025, invested in approximately **420 companies** with a total carrying value of **8.02 billion RMB**[125](index=125&type=chunk) [Financial Information](index=33&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) [Interim Condensed Consolidated Statement of Profit or Loss](index=33&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E8%A1%A8) For Q2 ended June 30, 2025, the company reported revenue of 115.96 billion RMB, gross profit of 26.10 billion RMB, operating profit of 13.44 billion RMB, and profit for the period of 11.87 billion RMB, with basic earnings per share of 0.46 RMB Q2 2025 Statement of Profit or Loss Key Data (Thousand RMB) | Indicator | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | 115,956,091 | 88,887,828 | | Gross Profit | 26,100,958 | 18,394,177 | | Operating Profit | 13,436,719 | 5,888,721 | | Profit for the Period | 11,873,163 | 5,069,669 | | Basic Earnings Per Share (RMB) | 0.46 | 0.21 | [Interim Condensed Consolidated Statement of Financial Position](index=35&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%80%B5%E8%A1%A8) As of June 30, 2025, the company's total assets significantly increased to 481.52 billion RMB from 403.16 billion RMB at year-end 2024, with total liabilities of 228.66 billion RMB and total equity of 252.86 billion RMB, indicating a robust asset structure Statement of Financial Position Key Data (Thousand RMB) | Indicator | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 481,517,758 | 403,155,289 | | Total Liabilities | 228,657,063 | 213,950,170 | | Total Equity | 252,860,695 | 189,205,119 | [Interim Condensed Consolidated Statement of Cash Flows](index=37&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash generated from operating activities was 28.05 billion RMB, while net cash used in investing activities was 60.13 billion RMB, primarily for time deposits and long-term investments, resulting in cash and cash equivalents of 36.01 billion RMB at period-end H1 2025 Cash Flow Statement Key Data (Thousand RMB) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash generated from operating activities | 28,054,740 | 2,530,575 | | Net cash (used in)/generated from investing activities | (60,128,639) | 2,709,078 | | Net cash generated from financing activities | 34,434,304 | 455,300 | | Cash and cash equivalents at end of period | 36,008,030 | 39,335,820 | [Notes to Financial Information](index=38&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) The notes provide detailed information on reportable segments, geographical revenue, expenses by nature, income tax, earnings per share, investments, and contingencies, including a disclosure regarding ongoing tax and foreign exchange investigations in India where approximately 4.02 billion RMB equivalent in bank accounts is restricted - Reportable segments are categorized into 'Smartphone × AIoT' (including smartphones, IoT and lifestyle consumer products, and internet services) and 'Smart Electric Vehicles and AI & Other Innovative Businesses'[139](index=139&type=chunk)[140](index=140&type=chunk) - Disclosed ongoing investigations by Indian authorities regarding income tax, customs duties, and foreign exchange regulations concerning Xiaomi India; as of June 30, 2025, approximately **4.02 billion RMB equivalent (47.88 billion Indian Rupees)** in bank deposits is considered restricted, though management believes there are valid grounds for response and no significant provision has been made[156](index=156&type=chunk) [Other Information](index=46&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Repurchase and Issuance of Securities](index=46&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%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, the company repurchased 6,829,800 Class B shares on the Stock Exchange for approximately 225 million HKD to enhance long-term shareholder value, in addition to a placement and subscription in March 2025 - In H1 2025, the company repurchased **6,829,800 Class B shares** for a total consideration of approximately **225 million HKD**[158](index=158&type=chunk) [Interim Dividend](index=47&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The company will **not distribute an interim dividend** for 2025[163](index=163&type=chunk)

[Report Overview](index=1&type=section&id=Report%20Overview) [Definitions and Technical Terms](index=3&type=section&id=Definitions%20and%20Technical%20Terms) This section defines key terms and technical vocabulary used in the report, ensuring clarity for the reader - The report defines key entities, including "AsiaInfo Security" (listed on the Shanghai Stock Exchange, with Dr Tian ultimately controlling approximately 51.42% of its equity) and "the Company" (AsiaInfo Technologies Holdings Limited, listed on the Hong Kong Stock Exchange, stock code: 1675)[7](index=7&type=chunk) - Technical terms cover core business areas such as AI, 5G, BSS (Business Support System), OSS (Operations Support System), DevOps, GPU, LLM (Large Language Model), and O-RAN[13](index=13&type=chunk) - The reporting period is defined as the six months ended June 30, 2025, with primary currencies being RMB and HKD[11](index=11&type=chunk) [Financial Highlights](index=8&type=section&id=Financial%20Highlights) In H1 2025, revenue decreased by 13.2% YoY to RMB 2.598 billion, while gross profit grew by 6.1% to RMB 783 million, and net loss widened to RMB 202 million Key Financial Data for H1 2025 | Financial Metric | 2025 (RMB hundred million) | 2024 (RMB hundred million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 25.98 | 29.94 | (13.2%) | | Cost of Revenue | (18.15) | (22.56) | (19.6%) | | Gross Profit | 7.83 | 7.38 | 6.1% | | Gross Profit Margin | 30.1% | 24.7% | 5.4 ppt | | Net Loss | (2.02) | (0.70) | (188.5%) | | Net Cash Used in Operating Activities | (5.94) | (9.19) | 35.3% | - Despite declines in revenue and net profit, **gross profit and gross profit margin both increased**, indicating effective cost control measures[15](index=15&type=chunk)[16](index=16&type=chunk) [Chairman's Statement](index=9&type=section&id=Chairman's%20Statement) [Overall Performance](index=10&type=section&id=Overall%20Performance) In H1 2025, the company's revenue and profit declined due to telecom operators' cost-cutting, but gross profit and margin grew through structural optimization and AI-driven efficiency gains - Revenue **decreased by 13.2% YoY to RMB 2.598 billion**, primarily due to declines in the ICT Support Business (down 14.7%) and the Digital Intelligence Operation Business (down 8.8%)[21](index=21&type=chunk) Revenue and Growth by Business Segment for H1 2025 | Business Segment | H1 2025 Revenue (RMB hundred million) | YoY Change | | :--- | :--- | :--- | | ICT Support Business | 21.18 | (14.7%) | | Digital Intelligence Operation Business | 4.08 | (8.8%) | | 5G Private Network and Application Business | 0.47 | (26.3%) | | AI Large Model Application and Delivery Business | 0.26 | 76x | - The **AI Large Model Application and Delivery Business revenue grew 76-fold YoY**, with order amounts increasing 78-fold, demonstrating explosive growth potential[21](index=21&type=chunk) - **Gross profit increased by 6.1% YoY to RMB 783 million**, and the gross profit margin rose by 5.4 percentage points to 30.1%, mainly due to personnel structure optimization and cost control[22](index=22&type=chunk) - The Board of Directors has proposed a **final dividend guidance for 2025 at 40% of the annual net profit** attributable to shareholders[22](index=22&type=chunk) [Business Development](index=10&type=section&id=Business%20Development) The company actively addresses industry challenges by focusing on three growth engines: AI Large Model Application and Delivery, 5G Private Network and Application, and Digital Intelligence Operation - The company is focused on building three growth engines: AI Large Model Application and Delivery, 5G Private Network and Application, and Digital Intelligence Operation, while deeply integrating "AI+" technology into its ICT Support Business[18](index=18&type=chunk) [AI Large Model Application and Delivery Business](index=10&type=section&id=AI%20Large%20Model%20Application%20and%20Delivery%20Business) This business achieved explosive growth, with H1 revenue increasing 76-fold to RMB 26 million and order value growing 78-fold to RMB 70 million AI Large Model Application and Delivery Business Growth | Metric | H1 2025 (RMB) | YoY Growth | | :--- | :--- | :--- | | Revenue | 26 million | 76x | | Order Amount | 70 million | 78x | - The company enhances project delivery quality and speed through a toolset including intelligent data cleaning, large model hallucination suppression, and automated prompt engineering[25](index=25&type=chunk) - Collaborations with partners like Alibaba Cloud, Baidu AI Cloud, NVIDIA, and AsiaInfo Security help build end-to-end industry-specific large model solutions[26](index=26&type=chunk) [5G Private Network and Application Business](index=12&type=section&id=5G%20Private%20Network%20and%20Application%20Business) This business continues to expand in the energy sector, with H1 order value growing 51.7% YoY to RMB 82 million, though revenue declined due to delayed order recognition 5G Private Network and Application Business Growth | Metric | H1 2025 (RMB) | YoY Change | | :--- | :--- | :--- | | Revenue | 47 million | (26.3%) | | Order Amount | 82 million | 51.7% | - In the nuclear power sector, the company maintains a **leading market share**, covering 7 nuclear power bases and 29 units nationwide, and has successfully secured China Huaneng Group as a client[30](index=30&type=chunk) - In the mining sector, a joint venture was established with Zhengzhou Coal Mining Machinery Group, and an intrinsically safe 5G private network base station received network access permission[31](index=31&type=chunk) [Digital Intelligence Operation Business](index=13&type=section&id=Digital%20Intelligence%20Operation%20Business) H1 revenue for this business decreased by 8.8% YoY to RMB 408 million, but orders from non-telecom industries grew, and the business model continues to optimize - While Digital Intelligence Operation Business revenue decreased by 8.8% YoY to RMB 408 million, **orders from non-telecom industries grew by 18.2%**[21](index=21&type=chunk)[34](index=34&type=chunk) - **Order value from the financial sector surged by 48.3% YoY**, with successful implementations of landmark projects for UnionPay and Postal Savings Bank branches[33](index=33&type=chunk) - The proportion of revenue from **result-based and revenue-sharing models reached 33.4%**, an increase of 6.7 percentage points YoY, indicating continuous business structure optimization[34](index=34&type=chunk) [ICT Support Business](index=14&type=section&id=ICT%20Support%20Business) H1 revenue for this business declined by 14.7% YoY to RMB 2.118 billion due to reduced operator investment, but the company maintains a leading market share and is actively transforming - ICT Support Business revenue **decreased by 14.7% YoY to RMB 2.118 billion** but maintained a leading market share[21](index=21&type=chunk)[38](index=38&type=chunk) - In H1, the company accelerated the application of AI in BSS and OSS, signing 48 new projects, deploying AI tool platforms in over 10 provinces, and launching digital human projects in more than 10 locations[37](index=37&type=chunk) - In the government and enterprise market, the company collaborated with telecom operators to explore areas such as data governance, trusted data spaces, public services, and the low-altitude economy[37](index=37&type=chunk) [Strengthening Product and Technology Leadership](index=14&type=section&id=Strengthening%20Product%20and%20Technology%20Leadership) The company focuses on its "Cloud & Network," "Digital Intelligence," and "IT" product systems, driving an AI Native evolution to enhance its technological leadership - The company focuses on its "Cloud & Network," "Digital Intelligence," and "IT" product systems, comprehensively driving product innovation towards an AI Native evolution[39](index=39&type=chunk) [Cloud and Network Domain](index=15&type=section&id=Cloud%20and%20Network%20Domain) The company enhanced its influence by joining the AI-RAN Alliance, winning GTI and TM Forum awards, and advancing its AI Native product reconstruction for autonomous networks - The company joined the AI-RAN Alliance, won GTI Awards, and received a TM Forum award for a joint project with a telecom operator[40](index=40&type=chunk) - The 5G network intelligence product suite was **selected for Gartner's relevant matrix for the fourth consecutive year** and is undergoing an AI Native reconstruction to create intelligent agents and CoPilot toolsets[40](index=40&type=chunk) - The company plans to develop Agentic wireless and core networks to build highly autonomous 5G/6G private networks with intent awareness[40](index=40&type=chunk) [Digital Intelligence Domain](index=15&type=section&id=Digital%20Intelligence%20Domain) The company expanded its product portfolio, building an industry-specific large model product system that has been deployed in over 240 commercial cases - The company built an industry-specific large model product system of "2 large model platforms, 5 industry-specific large models, and N industry intelligent agent tools," with **over 240 cumulative case implementations**[41](index=41&type=chunk) - The data infrastructure platform received the "DataOps" Innovative Product Case Award from CAICT, and its trusted data space product passed evaluation and certification[41](index=41&type=chunk) - The company is developing multi-agent collaborative capabilities based on Agentic AI technology to promote deep integration between communication networks and intelligent agents[41](index=41&type=chunk) [IT Domain](index=16&type=section&id=IT%20Domain) The company is building an AI-native IT product system, providing capabilities like intelligent computing infrastructure management, inference acceleration, and GPU virtualization - The company is building an AI-native universal IT product system, offering capabilities such as intelligent computing infrastructure management, inference acceleration, and elastic GPU virtualization scheduling[43](index=43&type=chunk) - The **SimOps (Simulation Twin) concept proposed by the company was cited by Gartner**, and a digital twin case won the "Excellent Case" award at the 2025 Digital China Innovation Contest[43](index=43&type=chunk) - The company plans to develop digital space infrastructure based on technologies like NeRF, 3DGS, spatial computing, and spatial intelligence to empower the low-altitude economy[43](index=43&type=chunk) [Standards and Intellectual Property](index=16&type=section&id=Standards%20and%20Intellectual%20Property) The company actively participates in international and national standards organizations, adding 26 new standards and numerous software copyrights and patents in H1 2025 - As of June 2025, the company has participated in the formulation of **356 international/domestic standards**, with 26 new additions in H1 covering core areas like digital intelligence large models, 5G private networks, and O-RAN[44](index=44&type=chunk) - In H1, the company added **32 software copyrights, 45 new patents, and 29 new patent applications**, continuously strengthening its intellectual property portfolio[44](index=44&type=chunk) [Future Outlook](index=17&type=section&id=Future%20Outlook) The company anticipates a significantly better performance in the second half of the year and will focus on its three growth engines to ensure steady full-year growth - Performance in H2 is expected to be significantly better than H1, with the company aiming for **steady full-year results and high-speed growth** in the AI Large Model and 5G Private Network businesses[46](index=46&type=chunk) - The company will continue to solidify its foundation in the telecommunications industry to promote a steady recovery of its ICT Support Business[46](index=46&type=chunk) - The Digital Intelligence Operation Business will integrate AI and intelligent agent technologies to advance innovative result-based payment models and optimize its business structure[46](index=46&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Overall Operating Performance](index=18&type=section&id=Overall%20Operating%20Performance) In H1 2025, despite revenue pressure from the telecom industry, the company achieved significant growth in its AI business and improved gross margin and operating cash flow through cost management - H1 revenue **decreased by 13.2% YoY to RMB 2.598 billion**, while gross profit increased by 6.1% to RMB 783 million, and the gross profit margin improved by 5.4 percentage points to 30.1%[50](index=50&type=chunk) - The **net loss was approximately RMB 202 million**; excluding a one-off severance compensation, the adjusted net loss was approximately RMB 48 million, an improvement from the RMB 70 million net loss in the same period last year[50](index=50&type=chunk) - **Net cash used in operating activities significantly improved by 35.3% YoY** to RMB 594 million[51](index=51&type=chunk) [Revenue Analysis](index=18&type=section&id=Revenue%20Analysis) Total revenue in H1 2025 decreased by 13.2% YoY to RMB 2.598 billion, primarily due to a slowdown in the telecommunications industry and operator cost pressures Revenue by Business Type for H1 2025 | Business Segment | 2025 (RMB'000) | Proportion (%) | 2024 (RMB'000) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | ICT Support Business | 2,117,736 | 81.5 | 2,483,649 | 83.0 | | Digital Intelligence Operation Business | 407,647 | 15.7 | 447,001 | 14.9 | | 5G Private Network and Application Business | 46,652 | 1.8 | 63,277 | 2.1 | | AI Large Model Application and Delivery Business | 25,840 | 1.0 | 335 | 0.0 | | Total Revenue | 2,597,875 | 100.0 | 2,994,262 | 100.0 | - The **AI Large Model Application and Delivery Business experienced explosive YoY growth**, with revenue increasing from RMB 335 thousand to RMB 25,840 thousand, raising its revenue share to 1.0%[52](index=52&type=chunk)[54](index=54&type=chunk) - Revenue from the ICT Support Business, Digital Intelligence Operation Business, and 5G Private Network and Application Business decreased by 14.7%, 8.8%, and 26.3% respectively, mainly due to operator cost controls and project timelines[52](index=52&type=chunk)[54](index=54&type=chunk) [Cost and Profit Analysis](index=19&type=section&id=Cost%20and%20Profit%20Analysis) In H1 2025, effective cost control led to a 19.6% decrease in cost of revenue and a significant improvement in gross margin, though administrative expenses rose due to one-off severance costs - **Cost of revenue decreased by 19.6% YoY**, primarily due to personnel structure adjustments and cost control measures[55](index=55&type=chunk) - **Gross profit increased by 6.1%**, and the gross profit margin improved by 5.4 percentage points to 30.1%[56](index=56&type=chunk) - **Administrative expenses surged by 62.4% YoY**, mainly due to one-off severance compensation from personnel structure adjustments[58](index=58&type=chunk) - **R&D expenses decreased by 4.9% YoY** as the company maintained moderate investment to support its strategic transformation[59](index=59&type=chunk) - The **net loss was approximately RMB 202 million**; excluding one-off severance compensation, the adjusted net loss was approximately RMB 48 million, an improvement from the RMB 70 million net loss in the prior year period[61](index=61&type=chunk) [Cost of Revenue](index=19&type=section&id=Cost%20of%20Revenue) In H1 2025, the company's cost of revenue was approximately RMB 1.815 billion, a YoY decrease of 19.6%, mainly due to personnel structure adjustments and enhanced cost control measures - **Cost of revenue decreased by 19.6% YoY to RMB 1.815 billion**, primarily due to personnel structure adjustments and cost control[55](index=55&type=chunk) [Gross Profit and Gross Profit Margin](index=19&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) In H1 2025, gross profit was approximately RMB 783 million, a YoY increase of 6.1%, while the gross profit margin was 30.1%, up 5.4 percentage points YoY Gross Profit and Gross Profit Margin Change | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | RMB 783 million | RMB 738 million | 6.1% | | Gross Profit Margin | 30.1% | 24.7% | 5.4 ppt | [Selling and Marketing Expenses](index=19&type=section&id=Selling%20and%20Marketing%20Expenses) In H1 2025, selling and marketing expenses were approximately RMB 223 million, a slight YoY increase of 1.1%, reflecting the company's ongoing marketing activities to support business expansion - Selling and marketing expenses **increased slightly by 1.1% YoY to RMB 223 million** to support business development[57](index=57&type=chunk) [Administrative Expenses](index=19&type=section&id=Administrative%20Expenses) In H1 2025, administrative expenses were approximately RMB 297 million, a significant YoY increase of 62.4%, mainly due to one-off severance compensation from personnel adjustments - Administrative expenses **surged by 62.4% YoY to RMB 297 million**, primarily driven by one-off severance compensation[58](index=58&type=chunk) - Excluding the one-off severance compensation, administrative expenses were approximately RMB 143 million[58](index=58&type=chunk) [Research and Development Expenses](index=19&type=section&id=Research%20and%20Development%20Expenses) In H1 2025, R&D expenses were approximately RMB 415 million, a YoY decrease of 4.9%, as the company maintained moderate investment to support its strategic transformation and product evolution - R&D expenses **decreased by 4.9% YoY to RMB 415 million** to support strategic transformation and product evolution[59](index=59&type=chunk) [Income Tax Credit](index=20&type=section&id=Income%20Tax%20Credit) In H1 2025, the company received an income tax credit of approximately RMB 34 million, an increase from the same period last year, mainly due to temporary losses from short-term business pressure - The income tax credit was approximately **RMB 34 million**, an increase from RMB 21 million in the prior year period, reflecting short-term business pressure[60](index=60&type=chunk) [Net Loss](index=20&type=section&id=Net%20Loss) For H1 2025, the Group's net loss was approximately RMB 202 million; after excluding the impact of one-off severance compensation, the net loss was approximately RMB 48 million - The Group's **net loss was approximately RMB 202 million**[61](index=61&type=chunk) - **Excluding one-off severance compensation**, the net loss was approximately RMB 48 million, an improvement compared to the RMB 70 million net loss in the same period last year[61](index=61&type=chunk) [Financial Position](index=20&type=section&id=Financial%20Position) As of June 30, 2025, the company's financial position remained healthy, though total assets, liabilities, and net assets decreased, primarily due to dividend payments and normal business fluctuations - The company's overall financial position is healthy, but **total assets, total liabilities, and net assets all decreased**, mainly due to dividend payments and normal business changes[63](index=63&type=chunk) [Total Assets and Total Liabilities](index=20&type=section&id=Total%20Assets%20and%20Total%20Liabilities) As of June 30, 2025, total assets were approximately RMB 9.311 billion, total liabilities were RMB 3.153 billion, and net assets were RMB 6.158 billion Balance Sheet Overview | Metric | June 30, 2025 (RMB hundred million) | Dec 31, 2024 (RMB hundred million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Assets | 93.11 | 105.00 | (11.3%) | | Total Liabilities | 31.53 | 38.59 | (18.3%) | | Net Assets | 61.58 | 66.41 | (7.3%) | [Net Current Assets](index=20&type=section&id=Net%20Current%20Assets) As of June 30, 2025, net current assets were approximately RMB 3.597 billion, a YoY decrease of 13.9%, primarily due to dividend distribution - **Net current assets decreased by 13.9% YoY to RMB 3.597 billion**, mainly due to dividend distribution[64](index=64&type=chunk) [Goodwill](index=20&type=section&id=Goodwill) As of June 30, 2025, total goodwill was approximately RMB 1.932 billion, consistent with the end of 2024, with no signs of impairment during the reporting period - Total goodwill was approximately **RMB 1.932 billion**, with no signs of impairment or impairment risk during the reporting period[65](index=65&type=chunk) [Cash and Cash Equivalents](index=20&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents were approximately RMB 613 million, a significant YoY decrease of 62.1%, mainly due to dividend payments and daily operating expenses - **Cash and cash equivalents decreased significantly by 62.1% YoY to RMB 613 million**, primarily due to dividend payments and daily operating expenses[66](index=66&type=chunk) [Trade and Bills Receivables](index=20&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, trade and bills receivables were approximately RMB 1.785 billion, a YoY decrease of 13.6%, mainly due to the maturity of bills receivable - **Trade and bills receivables decreased by 13.6% YoY to RMB 1.785 billion**, mainly due to the maturity of bills receivable[67](index=67&type=chunk) [Contract Assets and Contract Liabilities](index=21&type=section&id=Contract%20Assets%20and%20Contract%20Liabilities) As of June 30, 2025, contract assets were approximately RMB 2.957 billion, a slight YoY increase of 0.9%, while contract liabilities were approximately RMB 250 million, a YoY decrease of 15.2% - **Contract assets increased slightly by 0.9% YoY to RMB 2.957 billion**[68](index=68&type=chunk) - **Contract liabilities decreased by 15.2% YoY to RMB 250 million**[68](index=68&type=chunk) [Financial Assets at Fair Value through Profit or Loss — Current](index=21&type=section&id=Financial%20Assets%20at%20Fair%20Value%20through%20Profit%20or%20Loss%20%E2%80%94%20Current) As of June 30, 2025, these assets were approximately RMB 158 million, a YoY decrease of 11.8%, mainly due to the redemption of wealth management products - Financial assets at fair value through profit or loss—current **decreased by 11.8% YoY to RMB 158 million**, mainly due to the redemption of wealth management products[69](index=69&type=chunk) [Inventories](index=21&type=section&id=Inventories) As of June 30, 2025, inventories were approximately RMB 412 million, a significant YoY increase of 49.9%, mainly due to increased costs to fulfill contracts as business developed - **Inventories increased significantly by 49.9% YoY to RMB 412 million**, primarily due to higher costs to fulfill contracts[70](index=70&type=chunk) [Trade and Bills Payables](index=21&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, trade and bills payables were approximately RMB 958 million, a YoY decrease of 13.2%, which is a normal fluctuation in line with business development - **Trade and bills payables decreased by 13.2% YoY to RMB 958 million**, a normal fluctuation related to business development[71](index=71&type=chunk) [Deposits Received, Accruals and Other Payables](index=21&type=section&id=Deposits%20Received,%20Accruals%20and%20Other%20Payables) As of June 30, 2025, these liabilities were approximately RMB 1.238 billion, a YoY decrease of 24.5%, which is a normal fluctuation in line with business development - Deposits received, accruals and other payables **decreased by 24.5% YoY to RMB 1.238 billion**, a normal fluctuation related to business development[72](index=72&type=chunk) [Borrowings](index=21&type=section&id=Borrowings) As of June 30, 2025, the Group had no bank borrowings, and its corresponding gearing ratio was zero - The Group had **no bank borrowings**, and its gearing ratio was zero[73](index=73&type=chunk) [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had **no significant contingent liabilities**[75](index=75&type=chunk) [Cash Flow](index=21&type=section&id=Cash%20Flow) In H1 2025, net cash used in operating activities improved significantly by 35.3% to RMB 594 million, driven by better sales collection and cost control Cash Flow Overview for H1 2025 | Cash Flow Type | H1 2025 (RMB hundred million) | H1 2024 (RMB hundred million) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (5.94) | (9.19) | 35.3% | | Net Cash Generated from Investing Activities | 0.08 | 3.28 | (97.6%) | | Net Cash Used in Financing Activities | (4.17) | (6.96) | 40.0% | - The improvement in operating cash flow was mainly due to **enhanced sales collection and effective cost control**[76](index=76&type=chunk) - The significant decrease in investing cash flow was primarily due to differences in the scale of redeemed wealth management products[78](index=78&type=chunk) [Capital and Working Capital Management](index=22&type=section&id=Capital%20and%20Working%20Capital%20Management) The Group's capital and liquidity are centrally managed by the treasury department, which formulates and oversees the implementation of capital management policies and annual plans - Capital and liquidity are centrally managed by the Group's treasury department, which is responsible for policy formulation, planning, and supervision[79](index=79&type=chunk) - The company adopts a meticulous capital management policy covering account management, budgeting, payments, and credit financing to ensure capital security and efficiency[79](index=79&type=chunk) [Foreign Exchange Risk](index=22&type=section&id=Foreign%20Exchange%20Risk) The Group's foreign exchange risk primarily arises from fluctuations in the exchange rates of HKD against RMB and USD against RMB - The main foreign exchange risks stem from fluctuations in the **HKD/RMB and USD/RMB exchange rates**[80](index=80&type=chunk) - As of June 30, 2025, the Group had no foreign currency hedging operations, but management continuously monitors foreign currency risk and will consider hedging if necessary[80](index=80&type=chunk) [Significant Investment and Acquisition/Disposal Plans](index=22&type=section&id=Significant%20Investment%20and%20Acquisition/Disposal%20Plans) During the reporting period, the Group had no significant investments, acquisitions, or disposals, and as of June 30, 2025, there were no definite plans for such activities - There were **no significant investments, M&A activities, or disposals** during the reporting period[81](index=81&type=chunk) - As of June 30, 2025, there were no definite plans for significant capital asset acquisitions, major investments, or disposals[81](index=81&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) [Corporate Governance Practices](index=23&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value and accountability - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[82](index=82&type=chunk) - During the reporting period, the company complied with all applicable provisions of the Corporate Governance Code and will continue its review and monitoring[82](index=82&type=chunk) [Model Code for Securities Transactions](index=23&type=section&id=Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors have confirmed their compliance during the reporting period - The company has adopted the Model Code as the code of conduct for directors' securities transactions[83](index=83&type=chunk) - All directors have confirmed their compliance with the required standards set out in the Model Code during the reporting period[83](index=83&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=23&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the reporting period, **neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities**[84](index=84&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's accounting principles and practices, as well as the unaudited interim results, and found the risk management and internal control systems to be effective - The Audit Committee has reviewed the accounting principles, practices, and interim results[85](index=85&type=chunk) - The committee considers the risk management and internal control systems to be effective and adequate[85](index=85&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=24&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, several directors and the chief executive held interests in the company's shares, with Dr Tian Suning holding approximately 29.86% and Mr Gao Nianshu holding about 2.79% Overview of Directors' and Chief Executive's Shareholdings (as of June 30, 2025) | Name of Director/Chief Executive | Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Dr Tian Suning | Total | 279,854,851 | 29.86% | | Mr Gao Nianshu | Total | 26,140,913 | 2.79% | | Dr Zhang Ya-Qin | Beneficial Owner (L) | 112,000 | 0.01% | | Mr Ge Ming | Beneficial Owner (L) | 112,000 | 0.01% | | Ms Tao Ping | Beneficial Owner (L) | 112,000 | 0.01% | - Dr Tian Suning is deemed to have a **29.86% interest** through controlled corporations including Info Addition Limited, AsiaInfo Security, and PacificInfo Limited[87](index=87&type=chunk)[89](index=89&type=chunk) - Mr Gao Nianshu's interests include beneficial shares, unexercised options under the Pre-IPO Share Option Scheme, and share interests under the 2023 Share Award Scheme[87](index=87&type=chunk)[89](index=89&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=26&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, AsiaInfo Security held an interest of approximately 29.86%, China Mobile Group held about 19.44%, and Ocean Voice Investment Holding Limited held about 6.42% Overview of Substantial Shareholders' Holdings (as of June 30, 2025) | Name of Shareholder | Nature of Interest | Number of Shares | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | AsiaInfo Security | Beneficial Owner (L) | 279,854,851 | 29.86% | | China Mobile International Holdings Limited | Beneficial Owner (L) | 182,259,893 | 19.44% | | Ocean Voice Investment Holding Limited | Beneficial Owner (L) | 60,129,928 | 6.42% | - Through a voting rights proxy agreement, AsiaInfo Security holds the voting rights for a total of 279,854,851 shares held by Dr Tian and his controlled entities[91](index=91&type=chunk) - China Mobile International Holdings Limited is wholly owned by China Mobile Communications Group Co, Ltd, which is therefore deemed to be interested in its shares[92](index=92&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=28&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) Apart from the disclosed share schemes, no arrangements existed during the reporting period for directors to benefit from acquiring shares or debentures of the company or any other body corporate - Apart from the disclosed share schemes, no arrangements existed for directors or their associates to benefit from acquiring shares or debentures during the reporting period[94](index=94&type=chunk) [Share Schemes](index=28&type=section&id=Share%20Schemes) The company operates Pre-IPO and 2019 Share Option Schemes, as well as 2020 and 2023 Share Award Schemes, to incentivize directors, management, and employees - The company has a Pre-IPO Share Option Scheme, a 2019 Share Option Scheme, a 2020 Share Award Scheme, and a 2023 Share Award Scheme to incentivize employees and management[95](index=95&type=chunk) [Share Option Schemes](index=28&type=section&id=Share%20Option%20Schemes) The company operates a Pre-IPO Share Option Scheme, which has expired, and a 2019 Share Option Scheme, with 53,192,432 and 63,326,657 options outstanding respectively as of June 30, 2025 - The Pre-IPO Share Option Scheme has expired, but **53,192,432 options remained outstanding** as of June 30, 2025[96](index=96&type=chunk) - The 2019 Share Option Scheme has approximately 4 years and 3 months remaining, with **33,596,629 options available for future grant** as of June 30, 2025[102](index=102&type=chunk) [Pre-IPO Share Option Scheme](index=29&type=section&id=Pre-IPO%20Share%20Option%20Scheme) Details of Outstanding Options under Pre-IPO Share Option Scheme (as of June 30, 2025) | Grantee | Date of Grant | Outstanding at Jan 1, 2025 | Exercised | Lapsed | Outstanding at June 30, 2025 | Exercise Price (USD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Director** | | | | | | | | Mr Gao Nianshu | Jul 11, 2018 | 800,000 | — | — | 800,000 | 1.9225 | | | Aug 1, 2018 | 2,998,656 | — | — | 2,998,656 | 1.2725 | | *Sub-total* | | 3,798,656 | — | — | 3,798,656 | | | **Employees** | | | | | | | | | Aug 1, 2018 | 11,321,096 | 823,008 | 374,536 | 10,123,552 | 1.2725 | | | Jul 11, 2018 | 22,127,720 | — | 17,065,440 | 5,062,280 | 1.9225 | | | Aug 1, 2018 | 36,893,144 | — | 2,685,200 | 34,207,944 | 1.9225 | | *Sub-total* | | 70,341,960 | 823,008 | 20,125,176 | 49,393,776 | | | **Total** | | 74,140,616 | 823,008 | 20,125,176 | 53,192,432 | | [2019 Share Option Scheme](index=30&type=section&id=2019%20Share%20Option%20Scheme) Details of Outstanding Options under 2019 Share Option Scheme (as of June 30, 2025) | Grantee | Date of Grant | Outstanding at Jan 1, 2025 | Granted | Exercised | Lapsed | Outstanding at June 30, 2025 | Exercise Price (HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Directors** | | | | | | | | | Dr Zhang Ya-Qin | Jun 16, 2020 | 112,000 | — | — | — | 112,000 | 9.56 | | Mr Ge Ming | Jun 16, 2020 | 112,000 | — | — | — | 112,000 | 9.56 | | Ms Tao Ping | Mar 25, 2021 | 112,000 | — | — | — | 112,000 | 12.46 | | **Others** | | | | | | | | | **Former Director** | | | | | | | | | Dr Gao Qunyao | Jun 16, 2020 | 112,000 | — | — | — | 112,000 | 9.56 | | **Employees** | | | | | | | | | | Jun 16, 2020 | 6,756,760 | — | 1,038,760 | 88,000 | 5,630,000 | 9.56 | | | Jun 9, 2021 | 10,254,912 | — | 60,800 | 680,078 | 9,514,034 | 12.54 | | | Mar 11, 2022 | 12,293,028 | — | — | 679,360 | 11,613,668 | 13.24 | | | May 10, 2022 | 2,695,895 | — | — | — | 2,695,895 | 13.32 | | | Jun 14, 2023 | 15,960,000 | — | 96,000 | 654,440 | 15,209,560 | 11.72 | | | Aug 16, 2024 | 18,400,000 | — | — | 184,500 | 18,215,500 | 5.20 | | *Sub-total* | | 66,360,595 | — | 1,195,560 | 2,286,378 | 62,878,657 | | | **Total** | | 66,808,595 | — | 1,195,560 | 2,286,378 | 63,326,657 | | [Share Award Schemes](index=31&type=section&id=Share%20Award%20Schemes) The company operates 2020 and 2023 Share Award Schemes, which utilize existing shares rather than issuing new ones, with a combined total of over 26.5 million shares available for future grants - The 2020 Share Award Scheme has approximately 5 years and 4 months remaining, with **3,258,300 awarded shares available for future grant** as of June 30, 2025[104](index=104&type=chunk) - The 2023 Share Award Scheme has approximately 8 years and 4 months remaining, with **23,275,215 awarded shares available for future grant** as of June 30, 2025[111](index=111&type=chunk) - No new awarded shares were granted during the reporting period, but some previously awarded shares either vested or lapsed[106](index=106&type=chunk)[114](index=114&type=chunk) [2020 Share Award Scheme](index=31&type=section&id=2020%20Share%20Award%20Scheme) Details of Unvested Awarded Shares under 2020 Share Award Scheme (as of June 30, 2025) | Grantee | Date of Grant | No. of Unvested Awarded Shares at Jan 1, 2025 | No. of Awarded Shares Granted during the Period | No. of Awarded Shares Vested during the Period | No. of Awarded Shares Lapsed during the Period | No. of Unvested Awarded Shares at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Employees | May 26, 2021 | 324,000 | — | 324,000 | — | — | | | Mar 11, 2022 | 300,000 | — | 300,000 | — | — | | | Jun 29, 2023 | 4,540,800 | — | 2,530,800 | — | 2,010,000 | | **Total** | | 5,164,800 | — | 3,154,800 | — | 2,010,000 | [2023 Share Award Scheme](index=32&type=section&id=2023%20Share%20Award%20Scheme) Details of Unvested Awarded Shares under 2023 Share Award Scheme (as of June 30, 2025) | Grantee | Date of Grant | No. of Unvested Awarded Shares at Jan 1, 2025 | No. of Awarded Shares Granted during the Period | No. of Awarded Shares Vested during the Period | No. of Awarded Shares Lapsed during the Period | No. of Unvested Awarded Shares at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Director** | | | | | | | | Mr Gao Nianshu | Oct 24, 2024 | 1,600,000 | — | — | — | 1,600,000 | | **Employees** | Oct 15, 2024 | 18,080,000 | — | — | 190,000 | 17,890,000 | | **Total** | | 19,680,000 | — | — | 190,000 | 19,490,000 | [Employment Management](index=34&type=section&id=Employment%20Management) The Group strictly adheres to labor laws, protects employee rights, and had a total of 11,379 full-time employees as of June 30, 2025, a decrease from the end of 2024 - As of June 30, 2025, the Group had **11,379 full-time employees**, a decrease from 12,868 at December 31, 2024[117](index=117&type=chunk) - The company strictly complies with labor laws and regulations, protects employee rights, and prohibits the use of child labor[117](index=117&type=chunk) [Remuneration and Benefits](index=35&type=section&id=Remuneration%20and%20Benefits) The Group's employee remuneration system consists of a monthly salary and an annual bonus, with statutory social insurance and housing provident fund contributions - The employee remuneration system comprises a monthly salary and an annual bonus, with statutory contributions to social insurance and housing provident funds[119](index=119&type=chunk) - The company provides multiple benefits, including personal and medical insurance, supplementary insurance, health check-ups, and paid leave[119](index=119&type=chunk) [Retirement Benefit Schemes](index=35&type=section&id=Retirement%20Benefit%20Schemes) The Group participates in defined contribution retirement benefit schemes as required by Chinese regulations, with contributions expensed as they are incurred - The Group participates in defined contribution retirement benefit schemes as stipulated by Chinese law, with contributions recognized as an expense when incurred[120](index=120&type=chunk) [Performance Management and Employee Development](index=35&type=section&id=Performance%20Management%20and%20Employee%20Development) The Group uses performance management to enhance corporate and employee performance and identifies high-potential talent through a promotion management system - Performance management is used to improve Group and employee performance, while a promotion management system identifies high-potential talent[121](index=121&type=chunk) - The company offers diverse education and training opportunities to enhance core competencies and build a strong team of employees and managers[121](index=121&type=chunk) [Events After the Reporting Period](index=35&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events affecting the Group have occurred between the end of the reporting period and the date of this interim report - **No significant post-reporting period events** occurred between the period end and the date of this interim report[122](index=122&type=chunk) [Review Report](index=36&type=section&id=Review%20Report) [Review Report](index=36&type=section&id=Review%20Report) KPMG has reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements 2410 and found no material misstatements - KPMG has reviewed the interim financial report, with the scope of the review being less than that of an audit[125](index=125&type=chunk)[126](index=126&type=chunk) - Based on the review, nothing has come to their attention that causes them to believe the interim financial report is not prepared in all material respects in accordance with HKAS 34[127](index=127&type=chunk) [Condensed Consolidated Financial Statements](index=37&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=37&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company recorded revenue of RMB 2.598 billion, a gross profit of RMB 783 million, and a loss for the period of RMB 202 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (For the six months ended June 30, 2025) | Metric | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 2,597,875 | 2,994,262 | | Cost of revenue | (1,814,839) | (2,255,981) | | Gross profit | 783,036 | 738,281 | | Loss before taxation | (236,524) | (91,392) | | Income tax credit | 34,195 | 21,261 | | Loss for the period | (202,329) | (70,131) | | Loss for the period attributable to equity holders of the Company | (198,261) | (59,490) | | Total comprehensive income for the period | (203,084) | (70,274) | [Condensed Consolidated Statement of Financial Position](index=38&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were RMB 9.311 billion, total liabilities were RMB 3.153 billion, and net assets were RMB 6.158 billion Condensed Consolidated Statement of Financial Position Summary (as of June 30, 2025) | Metric | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Non-current assets | 2,903,706 | 2,861,391 | | Current assets | 6,407,670 | 7,638,575 | | Current liabilities | 2,810,280 | 3,461,615 | | Net current assets | 3,597,390 | 4,176,960 | | Net assets | 6,158,188 | 6,641,199 | | Equity attributable to equity holders of the Company | 6,203,482 | 6,682,425 | - **Goodwill is the largest component of non-current assets**, at approximately RMB 1.932 billion[133](index=133&type=chunk) - **Cash and cash equivalents decreased** from RMB 1.618 billion at the end of 2024 to RMB 613 million as of June 30, 2025[133](index=133&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=40&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to equity holders of the Company decreased from RMB 6.682 billion to RMB 6.203 billion, mainly due to the period's loss and dividend distribution Condensed Consolidated Statement of Changes in Equity Summary (For the six months ended June 30, 2025) | Equity Item | Jan 1, 2025 (RMB'000) | June 30, 2025 (RMB'000) | | :--- | :--- | :--- | | Equity attributable to equity holders of the Company | 6,682,425 | 6,203,482 | | Loss for the period | — | (198,261) | | Total comprehensive income | — | (199,016) | | Recognition of equity-settled share-based payments | — | 48,808 | | Dividends distributed for prior years | — | (347,151) | - Equity attributable to equity holders of the Company **decreased by RMB 479 million**, primarily due to the loss for the period and dividend distribution[139](index=139&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=41&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was RMB 594 million, a significant YoY improvement, while cash and cash equivalents at the end of the period decreased substantially Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30, 2025) | Cash Flow Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Net cash used in operating activities | (594,425) | (919,009) | | Net cash generated from investing activities | 7,970 | 328,375 | | Net cash used in financing activities | (417,475) | (696,196) | | Net decrease in cash and cash equivalents | (1,003,930) | (1,286,830) | | Cash and cash equivalents at 30 June | 612,693 | 1,326,432 | - **Net cash used in operating activities improved by 35.3% YoY**, reflecting the company's efforts in operational efficiency and cost control[142](index=142&type=chunk) - **Net cash generated from investing activities decreased by 97.6%**, mainly due to differences in the scale of redeemed wealth management products[142](index=142&type=chunk) [Notes to the Interim Financial Report](index=42&type=section&id=Notes%20to%20the%20Interim%20Financial%20Report) [General Information](index=42&type=section&id=General%20Information) AsiaInfo Technologies Holdings Limited was incorporated in the British Virgin Islands, and its shares are listed on the Main Board of the Hong Kong Stock Exchange - The Company is incorporated in the British Virgin Islands and its shares are listed on the Hong Kong Stock Exchange[145](index=145&type=chunk) - The Group's principal activities are the provision of software products and related services[146](index=146&type=chunk) [Basis of Preparation](index=42&type=section&id=Basis%20of%20Preparation) The interim financial report has been prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of the Listing Rules - The interim financial report was prepared in accordance with HKAS 34 and the Listing Rules and was published on August 4, 2025[147](index=147&type=chunk) - The report adopts the same accounting policies as the 2024 annual financial statements and has been reviewed by KPMG[147](index=147&type=chunk)[148](index=148&type=chunk) [Significant Accounting Policies](index=43&type=section&id=Significant%20Accounting%20Policies) The interim financial report is prepared on the historical cost basis, except for certain financial instruments measured at fair value - The interim financial report is prepared on the historical cost basis, with certain financial instruments measured at fair value[149](index=149&type=chunk) - The Group has applied amendments to HKAS 21, which had no material impact[150](index=150&type=chunk) [Revenue](index=43&type=section&id=Revenue) The Group's revenue is primarily derived from project-based software development contracts and is recognized net of sales-related taxes - Revenue is mainly from project-based software development contracts and is recognized net of sales-related taxes[152](index=152&type=chunk) Revenue Disaggregation (For the six months ended June 30, 2025) | Timing of Revenue Recognition | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Point in time | 152,367 | 272,964 | | Over time | 2,445,508 | 2,721,298 | | | | | | **Type of goods and services** | | | | Provision of services | 2,469,563 | 2,769,909 | | Sales of goods | 128,312 | 224,353 | - The Group operates in a single operating segment, with the vast majority of its revenue and non-current assets located in China[153](index=153&type=chunk)[154](index=154&type=chunk) [Other Income](index=44&type=section&id=Other%20Income) In H1 2025, other income totaled RMB 20.13 million, a decrease from RMB 31.45 million in the same period of 2024 Composition of Other Income (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Government grants | 8,800 | 17,758 | | Interest income from bank balances, restricted bank deposits and time deposits | 6,889 | 13,180 | | Net gain on disposal of financial assets at FVTPL | 966 | 4,609 | | Fair value changes of financial assets at FVTPL | 114 | (3,791) | | Others | 3,360 | (311) | | **Total** | 20,129 | 31,445 | - Government grants are primarily related to the development of high-tech industries and human resources[155](index=155&type=chunk) [Income Tax Credit](index=45&type=section&id=Income%20Tax%20Credit) In H1 2025, the Group received an income tax credit of RMB 34.20 million, an increase from RMB 21.26 million in the same period of 2024 Income Tax Credit (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | **Current tax** | | | | Current tax | 49,418 | 3,571 | | Deferred tax | (83,613) | (24,832) | | **Total** | (34,195) | (21,261) | - The tax rate for Chinese subsidiaries is 25%, with some enjoying preferential rates of 10% and 15%, and a 200% tax deduction for R&D expenses[156](index=156&type=chunk) - The Hong Kong minimum top-up tax is not expected to have a material impact on the Group, and the Company is not subject to income tax in the British Virgin Islands[157](index=157&type=chunk)[158](index=158&type=chunk) [Loss for the Period](index=46&type=section&id=Loss%20for%20the%20Period) In H1 2025, the Group's loss for the period was RMB 202 million, primarily influenced by staff costs, cost of inventories, and depreciation and amortization Major Components of Loss for the Period (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Total staff costs | 1,789,583 | 1,820,803 | | Cost of inventories recognised as an expense | 206,063 | 190,919 | | Depreciation of property, plant and equipment | 22,081 | 20,133 | | Depreciation of right-of-use assets | 41,396 | 47,666 | | Amortisation of intangible assets | 10,385 | 4,769 | | Short-term and low-value lease expenses | 24,224 | 27,311 | - **Total staff costs amounted to RMB 1.790 billion**, representing the largest expense item, including salaries, benefits, and share-based payments[159](index=159&type=chunk) [Dividends](index=46&type=section&id=Dividends) The Board of Directors has resolved not to declare an interim dividend for the reporting period - The Board of Directors has resolved **not to declare an interim dividend**[62](index=62&type=chunk) Prior Year Dividend Distribution (For the six months ended June 30, 2025) | Dividend Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Final dividend | 217,078 | 351,697 | | Special dividend | 137,827 | 510,014 | [Loss per Share](index=47&type=section&id=Loss%20per%20Share) For the six months ended June 30, 2025, both basic and diluted loss per share were RMB 0.22, an increase from RMB 0.06 in the same period of 2024 Loss per Share (For the six months ended June 30, 2025) | Metric | 2025 (RMB Yuan) | 2024 (RMB Yuan) | | :--- | :--- | :--- | | Basic loss per share | (0.22) | (0.06) | | Diluted loss per share | (0.22) | (0.06) | - The weighted average number of ordinary shares used to calculate basic loss per share was **898,222,535**[161](index=161&type=chunk) - Share options and restricted share units were not included in the calculation of diluted loss per share as they were anti-dilutive[162](index=162&type=chunk) [Movements in Property, Plant and Equipment and Right-of-use Assets](index=48&type=section&id=Movements%20in%20Property,%20Plant%20and%20Equipment%20and%20Right-of-use%20Assets) During the interim period, the Group incurred expenses of RMB 16.64 million on leasehold improvements and furniture, fixtures, and equipment - During the interim period, expenses of **RMB 16.64 million** were incurred for leasehold improvements and furniture, fixtures, and equipment[163](index=163&type=chunk) - A loss of **RMB 0.41 million** was generated from the disposal of certain leasehold improvements and furniture, fixtures, and equipment[163](index=163&type=chunk) - Right-of-use assets of **RMB 45.22 million** and lease liabilities of **RMB 40.81 million** were recognized due to new lease agreements[164](index=164&type=chunk) [Deferred Tax Assets and Liabilities](index=48&type=section&id=Deferred%20Tax%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's deferred tax assets were RMB 166 million, deferred tax liabilities were RMB 261 million, resulting in a net deferred tax liability of RMB 95 million Analysis of Deferred Tax Assets and Liabilities (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Deferred tax assets | 165,701 | 131,381 | | Deferred tax liabilities | (260,692) | (309,985) | | **Net** | (94,991) | (178,604) | - Deferred tax assets primarily arise from impairment losses, tax losses, and accrued payroll and expenses[165](index=165&type=chunk) - The directors believe it is probable that the deferred tax assets will be realized through future taxable profits[166](index=166&type=chunk) [Trade and Bills Receivables](index=49&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables were RMB 1.785 billion, a 13.6% decrease from the end of 2024, mainly due to a significant reduction in bills receivable Trade and Bills Receivables (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Bills receivable | 93,735 | 502,052 | | Trade receivables | 1,927,016 | 1,737,433 | | Less: allowance for credit losses | (235,680) | (174,410) | | **Total** | 1,785,071 | 2,065,075 | - **Trade and bills receivables decreased by 13.6% YoY**, mainly due to the maturity of bills receivable[67](index=67&type=chunk)[167](index=167&type=chunk) - The Group generally grants an average credit period of 30 days and considers the credit quality of all counterparties to be high, with expected credit losses being insignificant[167](index=167&type=chunk)[169](index=169&type=chunk) [Inventories](index=50&type=section&id=Inventories) As of June 30, 2025, total inventories were RMB 412 million, a significant 49.9% increase from the end of 2024, mainly due to higher costs to fulfill contracts Composition of Inventories (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Equipment and materials | 59,032 | 58,902 | | Other contract costs | 352,686 | 215,850 | | **Total** | 411,718 | 274,752 | - **Inventories increased significantly by 49.9% YoY**, mainly due to higher costs to fulfill contracts[70](index=70&type=chunk)[170](index=170&type=chunk) - During the period, an impairment loss of **RMB 14.84 million** was recognized for equipment and materials, and an impairment loss of **RMB 7.54 million** was recognized for capitalized contract costs[170](index=170&type=chunk) [Impairment Assessment on Financial Assets and Other Items under the Expected Credit Loss Model](index=51&type=section&id=Impairment%20Assessment%20on%20Financial%20Assets%20and%20Other%20Items%20under%20the%20Expected%20Credit%20Loss%20Model) For the six months ended June 30, 2025, the recognized impairment loss (net of reversal) was RMB 105 million, a significant increase from RMB 32.13 million in the same period of 2024 Recognized Impairment Loss (net of reversal) (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Impairment loss recognised, net of reversal | 105,239 | 32,127 | - The **recognized impairment loss increased significantly YoY**, reflecting the results of the credit risk assessment[171](index=171&type=chunk) [Trade and Bills Payables](index=51&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables were RMB 958 million, a 13.2% decrease from the end of 2024, representing a normal fluctuation in line with business development Trade and Bills Payables (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Trade payables | 741,219 | 865,626 | | Bills payable | 217,274 | 238,088 | | **Total** | 958,493 | 1,103,714 | - **Trade and bills payables decreased by 13.2% YoY**, a normal fluctuation related to business development[71](index=71&type=chunk)[172](index=172&type=chunk) Ageing Analysis of Trade and Bills Payables (as of June 30, 2025) | Ageing | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | 1 to 90 days | 487,538 | 601,728 | | 91 to 180 days | 94,048 | 77,546 | | 181 to 365 days | 131,201 | 244,346 | | Over 1 year | 245,706 | 180,094 | [Share Capital](index=52&type=section&id=Share%20Capital) As of June 30, 2025, the total number of issued shares increased to 937,322,880, mainly due to the exercise of options under the Pre-IPO and 2019 Share Option Schemes Details of Share Capital Changes (as of June 30, 2025) | Item | Number of shares | Par value per share | Share capital (HKD) | | :--- | :--- | :--- | :--- | | At 31 December 2024 | 935,304,312 | HK$0.0000000125 | 11.69 | | Exercise of share options | 2,018,568 | HK$0.0000000125 | 0.03 | | At 30 June 2025 | 937,322,880 | HK$0.0000000125 | 11.72 | - The number of issued shares **increased by 2,018,568**, mainly due to the exercise of options under the Pre-IPO and 2019 Share Option Schemes[173](index=173&type=chunk) [Purchase of Shares](index=52&type=section&id=Purchase%20of%20Shares) For the six months ended June 30, 2025, the company did not purchase any shares for its share award schemes, but 3,154,800 restricted share units were vested using shares purchased from the market - For the six months ended June 30, 2025, the company **did not purchase any shares** for its share award schemes[175](index=175&type=chunk) - **3,154,800 restricted share units were vested** using shares purchased from the market[175](index=175&type=chunk) - In H1 2024, the company purchased 10,260,800 shares for its share award schemes for a total consideration of RMB 69.21 million[174](index=174&type=chunk)[175](index=175&type=chunk) [Share-based Payments](index=53&type=section&id=Share-based%20Payments) For the six months ended June 30, 2025, the company did not grant any new share options or restricted share units, but recognized a total share-based payment expense of RMB 48.81 million - For the six months ended June 30, 2025, **no new share options or restricted share units were granted**[176](index=176&type=chunk) - A total share-based payment expense of **RMB 48.81 million** was recognized, slightly higher than the same period last year[176](index=176&type=chunk) [Financial Instruments](index=53&type=section&id=Financial%20Instruments) The Group's financial assets measured at fair value on a recurring basis mainly include wealth management products, investment funds, and unlisted equity investments, most of which are valued using Level 3 inputs Financial Assets Measured at Fair Value (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | Fair Value Hierarchy | | :--- | :--- | :--- | :--- | | **Financial assets at FVTPL** | | | | | — Wealth management products | 158,158 | 179,217 | Level 3 | | — Investment funds | 26,896 | 27,003 | Level 3 | | — Unlisted equity investments | 43,562 | 43,562 | Level 3 | | — Listed equity investments | — | 186 | Level 1 | | *Total* | 228,616 | 249,968 | | | **Financial assets at FVTOCI** | | | | | — Unlisted equity investments | 40,647 | 41,577 | Level 3 | - The majority of financial assets measured at fair value are classified as **Level 3**, valued using discounted cash flow or market approaches[178](index=178&type=chunk) - During the period, the total value of Level 3 financial assets decreased from RMB 291 million to RMB 269 million[179](index=179&type=chunk) [Commitments](index=55&type=section&id=Commitments) As of June 30, 2025, the Group's commitments for the purchase of property, plant, equipment, and intangible assets were approximately RMB 11.29 million - As of June 30, 2025, **capital commitments were approximately RMB 11.29 million**, a decrease from the end of 2024[180](index=180&type=chunk) [Related Party Balances and Transactions](index=56&type=section&id=Related%20Party%20Balances%20and%20Transactions) As of June 30, 2025, the Group had significant receivable and payable balances with related parties, primarily with shareholder China Mobile Group Related Party Balances (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Total balances due from related parties | 2,751,387 | 2,624,637 | | Total balances due to related parties | 87,705 | 84,826 | - Balances due from related parties primarily consist of receivables from shareholder China Mobile Group for software services provided[182](index=182&type=chunk) Significant Transactions with Related Parties (For the six months ended June 30, 2025) | Transaction Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Software business services provided to a shareholder | 1,442,619 | 1,706,772 | | ICT services and products received from it | 11,096 | 6,734 | | Total remuneration for key management personnel | 19,809 | 25,511 |

```markdown [Executive Summary](index=2&type=section&id=Executive%20Summary) The company reported a **26.1%** revenue increase to **HK$111.92 million**, with a narrowed loss attributable to owners and no interim dividend recommended Key Financial Highlights for H1 2025 | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 111,920 | 88,713 | +26.1% | | Loss Attributable to Owners of the Company | (8,348) | (10,740) | -22.3% | | Interim Dividend | None | None | - | [Unaudited Results](index=2&type=section&id=Unaudited%20Results) This section presents the unaudited condensed consolidated financial statements for H1 2025, comparing them with prior periods [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue grew significantly, losses narrowed, and total comprehensive income turned positive due to favorable exchange differences Overview of Consolidated Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 111,920 | 88,713 | +26.1% | | Other income, gains and losses | 1,254 | 1,850 | -32.1% | | Finance costs | (8,829) | (5,104) | +73.0% | | Loss before income tax | (7,968) | (11,223) | -29.0% | | Loss for the period | (7,968) | (11,223) | -29.0% | | Loss Attributable to Owners of the Company | (8,348) | (10,740) | -22.3% | | Exchange differences on translation of overseas operations | 8,944 | (8,201) | from negative to positive | | Total comprehensive income for the period | 976 | (19,424) | from negative to positive | | Basic and diluted loss per share (HK$) | (0.008) | (0.01) | -20.0% | [Unaudited Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets and liabilities increased, net assets slightly rose, and net current liabilities grew, indicating stable but slightly pressured financial health Overview of Consolidated Financial Position | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 668,829 | 654,879 | +2.1% | | Total Current Assets | 111,951 | 101,427 | +10.4% | | Total Assets | 780,780 | 756,306 | +3.2% | | Total Current Liabilities | 184,302 | 172,760 | +6.7% | | Total Non-current Liabilities | 334,140 | 322,184 | +3.7% | | Total Liabilities | 518,442 | 494,944 | +4.7% | | Net Assets | 262,338 | 261,362 | +0.4% | | Equity Attributable to Owners of the Company | 217,921 | 218,604 | -0.3% | - Net current liabilities increased from **HK$71,333 thousand** as of December 31, 2024, to **HK$72,351 thousand** as of June 30, 2025, indicating a slight increase in short-term solvency pressure[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Equity attributable to owners slightly decreased, while non-controlling interests increased, with exchange reserves turning positive impacting total comprehensive income Overview of Consolidated Changes in Equity | Metric | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 217,921 | 236,712 | | Non-controlling Interests | 44,417 | 44,478 | | Total Equity | 262,338 | 281,190 | | Exchange Reserve | 8,450 | 3,724 | | Accumulated Losses | (623,738) | (599,657) | - Loss for the period negatively impacted equity attributable to owners of the Company, but positive exchange differences from overseas operations partially offset the loss[10](index=10&type=chunk) [Unaudited Condensed Consolidated Cash Flow Statement](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Cash%20Flow%20Statement) Net cash increase significantly improved, driven by a shift from net cash outflow to inflow from investing activities and increased financing cash flow Overview of Consolidated Cash Flow | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 3,938 | 22,002 | | Net cash used in investing activities | 8,300 | (27,134) | | Net cash generated from financing activities | 5,193 | 16,090 | | Net increase in cash and cash equivalents | 17,431 | 10,958 | | Cash and cash equivalents at end of period | 67,820 | 41,535 | - Cash flow from investing activities reversed from a net outflow of **HK$27,134 thousand** in the prior period to a net inflow of **HK$8,300 thousand** in the current period, a key driver for the increase in cash and cash equivalents[11](index=11&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, covering basis of preparation, accounting policies, income and expense details, segment information, receivables and payables, bank borrowings, share capital, and capital commitments [1. Basis of Preparation and Principal Accounting Policies](index=9&type=section&id=1.%20Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The company, incorporated in the Cayman Islands, primarily engages in investment holding, natural gas, biomass gasification, and property investment in China, with new accounting standards having no material impact - The Group's principal activities include transportation and distribution of natural gas, sales of heat energy and biomass gasification related products, and property investment, primarily operating in China[12](index=12&type=chunk) - New Hong Kong Financial Reporting Standards adopted for the first time in the current period had no significant impact on the results and financial position of the current or prior accounting periods[13](index=13&type=chunk) [2. Revenue](index=10&type=section&id=2.%20Revenue) Revenue primarily from natural gas sales, biomass gasification products, and transportation services, with significant growth in natural gas sales and transportation driving overall revenue up Revenue Analysis | Revenue Source | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Sales and distribution of natural gas | 81,837 | 65,937 | +24.1% | | Sales of heat energy and biomass gasification related products | 15,400 | 13,652 | +12.8% | | Natural gas transportation services | 7,463 | 1,004 | +643.3% | | Gross rental income | 7,220 | 8,120 | -11.1% | | **Total Revenue** | **111,920** | **88,713** | **+26.1%** | - Revenue from natural gas transportation services significantly increased by **643.3%**, being one of the main drivers of revenue growth for the period[14](index=14&type=chunk) [3. Other Income, Gains and Losses](index=10&type=section&id=3.%20Other%20Income,%20Gains%20and%20Losses) Total other income, gains, and losses decreased to **HK$1,254 thousand**, mainly due to reduced miscellaneous and bank interest income, and a fair value loss on trading investments Other Income, Gains and Losses | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 43 | 108 | | Miscellaneous income | 1,228 | 1,694 | | Fair value (loss)/gain on financial assets held for trading | (17) | 48 | | **Total** | **1,254** | **1,850** | [4. Finance Costs](index=11&type=section&id=4.%20Finance%20Costs) Finance costs significantly increased by **73.0%** to **HK$8,829 thousand**, primarily due to higher interest on bank loans and a substantial shareholder's loan Finance Costs Details | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank loans and other borrowings | 6,034 | 2,462 | +145.1% | | Interest on loan from a substantial shareholder | 2,625 | 2,490 | +5.4% | | Interest on lease liabilities | 170 | 152 | +11.8% | | **Total** | **8,829** | **5,104** | **+73.0%** | [5. Loss Before Income Tax](index=11&type=section&id=5.%20Loss%20Before%20Income%20Tax) Loss before income tax is presented after deducting various operating expenses, including depreciation, short-term lease expenses, and professional fees Loss Before Income Tax Deductions | Item | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 9,670 | 8,253 | | Short-term lease expenses | 270 | 372 | | Investment property management fees | 1,638 | 1,443 | | Entertainment and travel expenses | 1,761 | 1,493 | | Research and development expenses | 1,063 | 1,130 | [6. Income Tax](index=11&type=section&id=6.%20Income%20Tax) No Hong Kong profits tax provision was made due to the absence of assessable profits, while Chinese subsidiaries are subject to a **25%** corporate income tax rate - No Hong Kong profits tax provision was made for the current and prior periods as the Hong Kong subsidiaries did not generate assessable profits[17](index=17&type=chunk) - Chinese subsidiaries are subject to a uniform enterprise income tax rate of **25%**[17](index=17&type=chunk) [7. Dividends](index=12&type=section&id=7.%20Dividends) The Board recommends no interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board recommends no dividend payment for the six months ended June 30, 2025[18](index=18&type=chunk) [8. Loss Per Share](index=12&type=section&id=8.%20Loss%20Per%20Share) Basic and diluted loss per share was **HK$0.008**, an improvement from **HK$0.01** in the prior period, with both being identical due to out-of-the-money share options Loss Per Share | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (HK$ thousand) | (8,348) | (10,740) | | Weighted average number of ordinary shares in issue (thousand shares) | 1,023,987 | 1,023,987 | | Basic and diluted loss per share (HK$) | (0.008) | (0.01) | - Basic and diluted loss per share are identical as the exercise price of outstanding share options exceeded the average market price during the period[20](index=20&type=chunk)[21](index=21&type=chunk) [9. Reportable Segments](index=13&type=section&id=9.%20Reportable%20Segments) The Group operates in four reportable segments: natural gas sales and distribution, biomass gasification products, natural gas transportation, and property investment, with natural gas segments driving profit growth H1 2025 Segment Revenue and Profit | Segment | Revenue (HK$ thousand) | Segment Profit (HK$ thousand) | | :--- | :--- | :--- | | Sales and distribution of natural gas | 81,837 | 5,382 | | Sales of heat energy and biomass gasification related products | 15,400 | 35 | | Natural gas transportation services | 7,463 | 1,265 | | Property investment | 7,220 | 1,956 | | **Total** | **111,920** | **8,638** | H1 2024 Segment Revenue and Profit/(Loss) | Segment | Revenue (HK$ thousand) | Segment Profit/(Loss) (HK$ thousand) | | :--- | :--- | :--- | | Sales and distribution of natural gas | 65,937 | 1,169 | | Sales of heat energy and biomass gasification related products | 13,652 | (2,531) | | Natural gas transportation services | 1,004 | (45) | | Property investment | 8,120 | 2,186 | | **Total** | **88,713** | **779** | - Revenue from natural gas transportation services significantly increased from **HK$1,004 thousand** in H1 2024 to **HK$7,463 thousand** in H1 2025, reversing from a loss to a profit[23](index=23&type=chunk)[24](index=24&type=chunk) [10. Trade Receivables](index=15&type=section&id=10.%20Trade%20Receivables) Net trade receivables decreased to **HK$17,302 thousand**, with varying credit terms across business segments and strict credit control measures in place Net Trade Receivables | Metric | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 23,301 | 27,240 | | Less: Impairment allowance | (5,999) | (5,826) | | **Net Amount** | **17,302** | **21,414** | - Credit terms for sales of biomass gasification products and natural gas distribution are three and five working days after invoice date, respectively, while heat energy and natural gas transportation services have no credit terms, and property investment tenants pay rent in advance[27](index=27&type=chunk) Aging Analysis of Trade Receivables (Net of Impairment Losses) | Aging | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 8,908 | 21,899 | | 31 to 60 days | 87 | 131 | | 61 to 90 days | 44 | 61 | | Over 90 days | 8,263 | 578 | | **Total** | **17,302** | **22,669** | [11. Trade Payables](index=17&type=section&id=11.%20Trade%20Payables) Total trade payables slightly increased to **HK$11,487 thousand**, with a notable rise in payables outstanding for over 90 days Aging Analysis of Trade Payables | Aging | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 3,878 | 8,174 | | 31 to 60 days | 606 | 480 | | 61 to 90 days | 290 | 226 | | Over 90 days | 6,713 | 2,249 | | **Total** | **11,487** | **11,129** | [12. Bank Borrowings and Loan Financing](index=17&type=section&id=12.%20Bank%20Borrowings%20and%20Loan%20Financing) Total interest-bearing borrowings increased to **HK$344,641 thousand**, secured by investment properties, plant and equipment, and guarantees, with an effective annual interest rate of **3.762%** Bank Borrowings and Loan Financing | Type | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current borrowings | 88,248 | 78,441 | | Non-current borrowings | 256,393 | 252,221 | | **Total** | **344,641** | **330,662** | - The effective interest rate for interest-bearing borrowings was an annual rate of **3.762%** (2024: 4.113%), with all borrowings bearing fixed interest rates[30](index=30&type=chunk)[31](index=31&type=chunk) - Bank loans are secured by certain investment properties, property, plant and equipment, corporate guarantees, a legal charge over property of Ms. Ma Zheng, a substantial shareholder and director, and personal guarantees from Mr. Wei Buti, a director of a subsidiary, and his spouse[34](index=34&type=chunk) [13. Share Capital](index=18&type=section&id=13.%20Share%20Capital) The company's authorized share capital is **1,920,000 thousand** shares at **HK$0.0625** each, with **1,023,987 thousand** issued and fully paid shares, consistent with the prior year-end Share Capital Structure | Type | Number of Shares (thousand shares) | Amount (HK$ thousand) | | :--- | :--- | :--- | | Authorised share capital | 1,920,000 | 120,000 | | Issued and fully paid share capital | 1,023,987 | 63,999 | [14. Operating Leases](index=19&type=section&id=14.%20Operating%20Leases) Total undiscounted lease payments receivable under irrevocable operating leases decreased to **HK$45,938 thousand** as of June 30, 2025 Future Undiscounted Lease Payments Receivable | Period | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within one year | 10,189 | 12,292 | | Later than one year and not later than two years | 9,570 | 12,608 | | Later than two years and not later than three years | 8,782 | 9,985 | | Later than three years and not later than four years | 6,585 | 8,790 | | Later than four years and not later than five years | 1,162 | 7,665 | | Over five years | 9,650 | 12,411 | | **Total** | **45,938** | **63,751** | [15. Capital Commitments](index=19&type=section&id=15.%20Capital%20Commitments) Capital commitments for property, plant, and equipment acquisitions, contracted but not provided for, significantly increased to **HK$23,058 thousand** Capital Commitments | Item | June 30, 2025 (HK$ thousand) | Dec 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contracted but not provided for: acquisition of property, plant and equipment | 23,058 | 13,837 | [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's H1 2025 business and financial performance, analyzes macroeconomic impacts, outlines segment operations, future outlook, and strategic priorities, and discloses related party transactions, liquidity, gearing, and foreign exchange risks [Business Review and Future Outlook](index=20&type=section&id=Business%20Review%20and%20Future%20Outlook) The Group's H1 2025 revenue grew **26.1%**, driven by Yichang natural gas and increased trading; despite global challenges, China's resilient growth and clean energy investment supported natural gas, biomass heating was stable, and property investment provided steady cash flow [Financial Performance](index=20&type=section&id=Financial%20Performance) The Group's total revenue increased by **26.1%** for the six months ended June 30, 2025, driven by the full launch of Yichang natural gas operations and increased natural gas trading[37](index=37&type=chunk) [Economic Overview](index=20&type=section&id=Economic%20Overview) Global economic development was mixed in H1 2025, with moderate US growth hampered by high interest rates and weak net trade, while the Eurozone experienced soft economic activity and manufacturing decline - US annualized GDP growth was approximately **2.0%** in H1 2025, but was hampered by high interest rates and net trade[38](index=38&type=chunk) - Eurozone economic activity was weak, with Q1 GDP growing by only **0.2%** quarter-on-quarter, and manufacturing remaining sluggish[38](index=38&type=chunk) [China: Resilient Growth with Structural Challenges](index=20&type=section&id=China:%20Resilient%20Growth%20with%20Structural%20Challenges) China's H1 2025 GDP grew by **4.8%**, supported by manufacturing and clean energy investment, but faced headwinds from a weak property market, slow private consumption, and US-China trade tensions - China's H1 2025 GDP grew by approximately **4.8%** year-on-year, primarily supported by manufacturing output and clean energy investment[39](index=39&type=chunk) - A sluggish property market and slow recovery in private consumption posed headwinds, while escalating US-China trade tensions increased macroeconomic risks[39](index=39&type=chunk) [Natural Gas Business: Core Growth Engine](index=20&type=section&id=Natural%20Gas%20Business:%20Core%20Growth%20Engine) The natural gas business benefited from China's accelerated energy transition and government's 'coal-to-gas' policy, driving robust revenue growth from increased demand for liquefied natural gas and pipeline gas[40](index=40&type=chunk) [Biomass Gasification Heating Business](index=21&type=section&id=Biomass%20Gasification%20Heating%20Business) The biomass gasification heating business in Huaining County, Anhui Province, performed stably in 2025, with expectations for full operation, substantial revenue, and reaching break-even soon[41](index=41&type=chunk) [Property Investment Business](index=21&type=section&id=Property%20Investment%20Business) Yichang's property investment business continues to provide stable cash flow, supported by local government development initiatives, despite a slight decline in rental income, remaining a key revenue contributor - Yichang's property investment business continues to provide stable cash inflow, with tenants primarily being automotive parts manufacturers[42](index=42&type=chunk) - Despite a slight decrease in rental income, the business is supported by Yichang municipal government's development initiatives and is expected to remain a key revenue contributor[42](index=42&type=chunk) [Continuing Connected Transactions](index=21&type=section&id=Continuing%20Connected%20Transactions) Zhongji Natural Gas Utilization, an indirect non-wholly owned subsidiary, entered a three-year natural gas transportation agreement with Yiling Zhongji Thermal Power, with market-based fees aligned with the company's best interests - Zhongji Natural Gas Utilization entered into a three-year natural gas transportation agreement with Yiling Zhongji Thermal Power, with transportation fees determined at market rates[43](index=43&type=chunk)[44](index=44&type=chunk) - Yiling Zhongji Thermal Power is legally owned **90%** by Beijing Jingneng Clean Energy Power Co., Ltd., and **10%** by the Company's indirect wholly-owned subsidiary[43](index=43&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) For H1 2025, total revenue increased by **26.1%** to **HK$111.92 million**, loss before income tax narrowed to **HK$7.97 million**, and loss attributable to owners decreased to **HK$8.35 million**, primarily due to higher revenue and gross profit Financial Performance Comparison | Metric | H1 2025 (HK$ thousand) | H1 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 111,920 | 88,713 | +26.1% | | Loss before income tax | (7,968) | (11,223) | -29.0% | | Loss Attributable to Owners of the Company | (8,348) | (10,740) | -22.3% | - The reduction in loss was primarily due to increased revenue and gross profit of the Group[45](index=45&type=chunk) [Business Outlook and Strategic Focus](index=23&type=section&id=Business%20Outlook%20and%20Strategic%20Focus) The Group's operations, particularly natural gas transportation, distribution, and property investment, are less directly impacted by the global economy due to their reliance on domestic demand, with management focusing on prudent oversight and investment opportunities - The Group's operations are less directly and significantly impacted by the global economy due to their reliance on domestic demand and the essential nature of natural gas[46](index=46&type=chunk) - The Board and management will adopt a prudent management approach and actively explore potential investment opportunities to enhance long-term value and sustainable growth[46](index=46&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the directors anticipate the Group possesses sufficient financial resources for ongoing operations and future development[47](index=47&type=chunk) [Fundraising Activities](index=23&type=section&id=Fundraising%20Activities) The company did not undertake any fundraising activities during the review period[48](index=48&type=chunk) [Employee Information](index=23&type=section&id=Employee%20Information) As of June 30, 2025, the Group had **159** full-time employees (9 in Hong Kong, 150 in China), with total employee remuneration of approximately **HK$11.741 million**, determined by performance, experience, and market practice Employee Information | Region | Number of Full-time Employees | | :--- | :--- | | Hong Kong | 9 | | China | 150 | | **Total** | **159** | - For the six months ended June 30, 2025, total employee remuneration (including directors' emoluments) was approximately **HK$11,741,000**[49](index=49&type=chunk) [Share Capital Structure](index=23&type=section&id=Share%20Capital%20Structure) As of June 30, 2025, the company's issued share capital comprised **1,023,987,439** ordinary shares of **HK$0.0625** each, listed on GEM since December 13, 2001 - As of June 30, 2025, the company's issued share capital comprised **1,023,987,439** ordinary shares of **HK$0.0625** each[50](index=50&type=chunk) [Material Investments](index=23&type=section&id=Material%20Investments) The Group had no other material investments during the review period, apart from those already disclosed[51](index=51&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Affiliated Companies / Future Material Investment Plans](index=24&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Affiliated%20Companies%20%2F%20Future%20Material%20Investment%20Plans) The Group did not undertake any material acquisitions or disposals of subsidiaries and affiliated companies during the six months ended June 30, 2025[52](index=52&type=chunk) [Segment Information](index=24&type=section&id=Segment%20Information) Detailed segment information is provided in Note 9 to the unaudited condensed consolidated financial statements and further elaborated in the 'Business Review and Future Outlook' section[53](index=53&type=chunk) [Pledges of Group Assets and Contingent Liabilities](index=24&type=section&id=Pledges%20of%20Group%20Assets%20and%20Contingent%20Liabilities) As of June 30, 2025, certain investment properties, land, and buildings were pledged as collateral for bank borrowings, with no significant contingent liabilities - Certain investment properties, land, and buildings of the Group were pledged as collateral for bank borrowings[54](index=54&type=chunk) - The Group had no significant contingent liabilities[54](index=54&type=chunk) [Gearing Ratio](index=24&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group maintained a net asset position with a gearing ratio (borrowings to equity attributable to owners) of approximately **158%** Gearing Ratio Overview | Metric | June 30, 2025 (HK$ thousand) | | :--- | :--- | | Current Assets | 111,951 | | Current Liabilities | 184,302 | | External Borrowings | 344,641 | | Equity Attributable to Owners of the Company | 217,921 | | **Gearing Ratio** | **158%** | - As of June 30, 2025, the Group maintained a net asset position with a gearing ratio of approximately **158%**[55](index=55&type=chunk) [Foreign Exchange Fluctuation Risk](index=24&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk) The Group's sales and payments are settled in HKD and RMB, with primary operations in China, resulting in limited foreign exchange risk and no current hedging arrangements, though monitoring continues - The Group's sales and payments are settled in HKD and RMB, with primary operations in China, resulting in limited foreign exchange risk[56](index=56&type=chunk) - No hedging arrangements are currently in place for foreign currency risk, but exchange rate fluctuations will continue to be closely monitored, and hedging arrangements will be made if necessary[56](index=56&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) This section discloses directors' and substantial shareholders' interests, share option schemes, corporate governance structure (including audit, remuneration, and nomination committees), and information on securities transactions and code compliance [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=25&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of June 30, 2025, Ms. Ma Zheng beneficially owned **36.52%** of ordinary shares, and Mr. Yuan Geng beneficially owned **1.89%**, with no other interests or short positions for directors or the chief executive Directors' Long Positions in Ordinary Shares of the Company | Director's Name | Nature of Interest | Number of Ordinary Shares | Approximate % of Interest | | :--- | :--- | :--- | :--- | | Ms. Ma Zheng | Beneficial owner | 373,951,632 | 36.52% | | Mr. Yuan Geng | Beneficial owner | 19,320,633 | 1.89% | [Share Options](index=26&type=section&id=Share%20Options) The share option scheme, adopted in 2022 to reward contributors, has a ten-year validity with exercise prices not below market rates; no options were granted or exercised, and none were outstanding as of June 30, 2025 - The share option scheme was adopted on May 17, 2022, to reward eligible participants contributing to the Group's development, with a ten-year validity period[59](index=59&type=chunk) - The exercise price of share options shall not be less than the highest of the closing price on the grant date, the average closing price for the five business days immediately preceding the grant date, and the nominal value of the shares[62](index=62&type=chunk) - No share options were granted or exercised by the company during the review period, and no share options were outstanding as of June 30, 2025[62](index=62&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=27&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, several entities and individuals, including Ms. Guo Xiugin, Dongcheng Energy Investment, and China Vanke, were substantial shareholders holding **5%** or more of the company's shares Substantial Shareholders' Long Positions in Ordinary Shares of the Company | Shareholder's Name | Nature of Interest | Number of Shares Held | Approximate % of Interest | | :--- | :--- | :--- | :--- | | Ms. Guo Xiugin | Corporate interest | 123,867,678 | 12.10% | | Dongcheng Energy Investment Co., Ltd. | Corporate interest | 123,867,678 | 12.10% | | Zhuohua Investment Co., Ltd. | Beneficial owner | 123,867,678 | 12.10% | | Mr. Ji Shengzhi | Corporate interest | 110,000,000 | 10.74% | | Ms. Lu Ke | Corporate interest | 110,000,000 | 10.74% | | Superb Holdings Limited | Beneficial owner | 110,000,000 | 10.74% | | China Vanke Co., Ltd. | Corporate interest | 93,089,767 | 9.09% | | Chengdu Vanke Real Estate Co., Ltd. | Corporate interest | 93,089,767 | 9.09% | | Chogori Investment (Hong Kong) Limited | Corporate interest | 93,089,767 | 9.09% | | Winsteria (BVI) Company Limited | Corporate interest | 93,089,767 | 9.09% | | Winmaxi (BVI) Company Limited | Beneficial owner | 93,089,767 | 9.09% | [Directors' Right to Acquire Shares](index=29&type=section&id=Directors'%20Right%20to%20Acquire%20Shares) At no time during the period did the company or any of its subsidiaries engage in any arrangements enabling directors, their spouses, or children under 18 to benefit from acquiring shares or debentures of the company or any other body corporate[66](index=66&type=chunk) [Competition and Conflicts of Interest](index=29&type=section&id=Competition%20and%20Conflicts%20of%20Interest) During the review period, no directors, significant shareholders, substantial shareholders, or their respective associates engaged in any business that constitutes or may constitute a direct or indirect competition with the Group's business, nor were there any other actual or potential conflicts of interest with the Group[67](index=67&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviews financial controls, internal monitoring, and risk management, assesses auditor independence, and has reviewed and commented on the interim results - The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing financial controls, internal monitoring, and risk management systems, and for reviewing financial statements[68](index=68&type=chunk) - The Audit Committee has reviewed the Group's unaudited results for the six months ended June 30, 2025, and has provided its opinions and comments thereon[68](index=68&type=chunk) [Remuneration Committee](index=30&type=section&id=Remuneration%20Committee) The Remuneration Committee, composed of three independent non-executive directors, is responsible for considering and recommending remuneration policies and structures for executive directors and senior management, and for reviewing and determining their remuneration[69](index=69&type=chunk) [Nomination Committee](index=30&type=section&id=Nomination%20Committee) The Nomination Committee, consisting of three independent non-executive directors, is responsible for reviewing the Board's structure, assessing the independence of independent non-executive directors, and making recommendations for director appointments and re-election[70](index=70&type=chunk) [Purchase, Sale or Redemption of Securities](index=30&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Securities) The company did not redeem, purchase, or sell any ordinary shares during the six months ended June 30, 2025[71](index=71&type=chunk) [Compliance with Corporate Governance Code](index=30&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with all principles and code provisions of the GEM Listing Rules' Corporate Governance Code, except for C.2.1 (separation of Chairman and CEO roles), ensuring accountability through an Audit Committee - The company complied with all principles and code provisions of the Corporate Governance Code, except for code provision C.2.1 (separation of roles of Chairman and Chief Executive)[72](index=72&type=chunk) - The company does not have a Chief Executive Officer, and Ms. Ma Zheng, the Chairman, also serves as a director of some operating subsidiaries, but accountability and independent decision-making are ensured through the establishment of an Audit Committee comprising independent non-executive directors[73](index=73&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=31&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The company adopted a code of conduct for directors' securities transactions, no less exacting than the required standards under the GEM Listing Rules, and all directors confirmed compliance with this code[74](index=74&type=chunk) ```

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不發表 聲明，並明確表示概不會就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之任何損失承擔任何責 任。 XPeng Inc. 小鵬汽車有限公司* （於開曼群島註冊成立以不同投票權控制的有限公司） （股份代號：9868） 截 至 2025 年 6 月 3 0 日止六個月之中期業績公告 中國領先的智能電動汽車（「智能電動汽車」）公司XPeng Inc.（「小鵬汽車」或「本公司」，香 港聯交所股份代號：9868及紐交所代號：XPEV）今天公佈本公司及其子公司及其併表聯 屬實體（「本集團」）截至2025年6月30日止六個月（「報告期」）的未經審計財務業績。 截至2025年6月30日止六個月的運營及財務摘要 1 ‧ 截至2025年6月30日止六個月汽車交付量為197,189輛，較截至2024年6月30日止六個 月的52,028輛增加279.0%。 ‧ 截至2025年6月30日，小鵬汽車的實體銷售網絡共有677間門店，覆蓋224個城市。 ‧ 截至2025年6月30日，小鵬汽車自營充電站網絡達2,348座充電站，包括1,30 ...

連接全球 最具活力的市場 二〇二五年半年報告 目錄 | 表現摘要 | 1 | | --- | --- | | 業績報表 | 3 | | 集團行政總裁回顧 | 4 | | 集團財務總監回顧 | 6 | | 財務回顧 | 8 | | 補充財務資料 | 14 | | 基本及列賬基準業績對賬 | 24 | | 其他表現指標 | 25 | | 集團風險總監回顧 | 26 | | 風險回顧 | 35 | | 資本回顧 | 85 | | 董事責任聲明 | 91 | | 致渣打集團有限公司的獨立審閱報告 | 92 | | 財務報表 | 93 | | 財務報表附註 | 99 | | 其他補充資料 | 142 | | 股東資料 | 153 | | 重要通知 | 154 | | 詞彙 | 155 | 除另有指明其他貨幣外，本文件中提述的「元」字或「$」符號概指美元，而「仙」字或「c」符號概指一百分之一美元。 表現摘要至資本回顧及其他補充資料至詞彙中的資料未經審閱。 除文義另有所指外，於本文件內，「中國」指中華人民共和國，且僅就本文件而言不包括香港特別行政區（香港）、澳門特別行政區（澳門）及台灣。「韓國」或「南韓」均指大 韓民國。 ...

[Supplementary Announcement Overview](index=1&type=section&id=Supplementary%20Announcement%20Overview) This section provides the purpose and background for the supplementary information to the company's 2024 annual report [Purpose and Background of the Announcement](index=1&type=section&id=Purpose%20and%20Background%20of%20the%20Announcement) This announcement aims to provide the latest and supplementary information for Jiangsu Guofu Hydrogen Energy Technology and Equipment Co., Ltd.'s 2024 annual report released on April 25, 2025, ensuring the completeness of information disclosure - This announcement supplements the company's annual report for the year ended December 31, 2024, providing updated and additional information[3](index=3&type=chunk)[4](index=4&type=chunk) [Details of Supplementary Information](index=1&type=section&id=Details%20of%20Supplementary%20Information) This section details the company's risk management, internal controls, and property, plant, and equipment valuation [Risk Management and Internal Control](index=1&type=section&id=Risk%20Management%20and%20Internal%20Control) The company has established sound risk management and internal control systems, continuously monitoring international sanction legal risks, and confirms no new activities in sanctioned countries or with sanctioned persons as of the announcement date, with ongoing disclosure of related risk management efforts - As of December 31, 2024, and the announcement date, the company has not engaged in any new activities in countries subject to international sanctions or with sanctioned persons, nor does it plan to do so[5](index=5&type=chunk)[6](index=6&type=chunk) - The company has established risk management and internal control systems, continuously monitoring sanction legal risks and regularly reviewing counterparties with potential customers/suppliers to identify trade restrictions[6](index=6&type=chunk) - The company will continue to monitor changes in international sanction laws and regulations, seek professional advice when necessary, and commit to disclosing any new activities in sanctioned countries or with sanctioned persons, as well as risk monitoring efforts[7](index=7&type=chunk) [Property, Plant and Equipment](index=3&type=section&id=Property%2C%20Plant%20and%20Equipment) The company disclosed valuation information for its property interests, clarifying the difference between valuation and financial statement presentation, noting additional depreciation would arise if accounted for at valuation Comparison of Property Interests Valuation and Accounting Treatment | Indicator | Detail | | :--- | :--- | | **Valuation Date** | August 31, 2024 | | **Valuation Amount** | RMB 338,670,000 | | **Financial Statement Presentation Method** | Accounted for at cost less accumulated depreciation and impairment losses | | **Additional Impact if Accounted for at Valuation** | An additional depreciation of RMB 233,000 would be deducted from the profit or loss and other comprehensive income statement for the year ended December 31, 2024 | [Other Information](index=3&type=section&id=Other%20Information) This section confirms the unchanged status of the annual report's other details and lists the current board members [Annual Report Information Remains Unchanged and Board Members](index=3&type=section&id=Annual%20Report%20Information%20Remains%20Unchanged%20and%20Board%20Members) Except for the information disclosed in this supplementary announcement, all other information in the annual report remains unchanged, and the announcement lists the board members as of the announcement date - Except for the content disclosed in this announcement, all other information in the annual report remains unchanged[9](index=9&type=chunk) - As of the announcement date, August 19, 2025, the Board of Directors includes Executive Directors Mr. Wu Pinfang and Mr. Wang Kai; Non-executive Directors Mr. Gu Yanjun, Mr. Zhou Lin, and Ms. Liu Yilin; and Independent Non-executive Directors Ms. Tang Shiyun, Mr. Zhang Yongjun, and Dr. Zou Jiasheng[10](index=10&type=chunk)[11](index=11&type=chunk)

[Interim Results Announcement](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) [Interim Results Summary](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) POP MART International Group Limited announced its unaudited consolidated results for the six months ended June 30, 2025, reporting significant growth in revenue, gross profit, operating profit, and net profit, with substantial increases in basic and diluted earnings per share Key Financial Highlights | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 13,876,276 | 4,557,831 | 204.4% | | Gross Profit | 9,761,064 | 2,919,105 | 234.4% | | Operating Profit | 6,043,741 | 1,126,417 | 436.5% | | Profit for the Period | 4,681,713 | 964,142 | 385.6% | | Profit Attributable to Owners of the Company | 4,574,368 | 921,333 | 396.5% | | Non-IFRS Adjusted Net Profit | 4,709,630 | 1,017,625 | 362.8% | | Basic Earnings Per Share (RMB cents) | 344.17 | 69.49 | 395.3% | | Diluted Earnings Per Share (RMB cents) | 342.95 | 69.22 | 395.4% | [Interim Condensed Consolidated Financial Information](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue increased by 204.4% year-on-year to RMB 13,876,276 thousand, gross profit grew by 234.4% to RMB 9,761,064 thousand, operating profit surged by 436.5% to RMB 6,043,741 thousand, and profit for the period rose by 385.6% to RMB 4,681,713 thousand Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 13,876,276 | 4,557,831 | | Cost of Sales | (4,115,212) | (1,638,726) | | Gross Profit | 9,761,064 | 2,919,105 | | Operating Profit | 6,043,741 | 1,126,417 | | Profit Before Income Tax | 6,156,872 | 1,228,438 | | Income Tax Expense | (1,475,159) | (264,296) | | Profit for the Period | 4,681,713 | 964,142 | | Profit Attributable to Owners of the Company | 4,574,368 | 921,333 | | Profit Attributable to Non-controlling Interests | 107,345 | 42,809 | | Total Comprehensive Income for the Period | 4,658,377 | 1,069,848 | | Basic Earnings Per Share (RMB cents) | 344.17 | 69.49 | | Diluted Earnings Per Share (RMB cents) | 342.95 | 69.22 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total assets increased to RMB 21,356,679 thousand, a 43.6% rise from December 31, 2024, driven by a significant increase in cash and cash equivalents within current assets, alongside substantial growth in total equity and an increase in total liabilities Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 3,506,097 | 2,634,591 | | Total Current Assets | 17,850,582 | 12,236,081 | | Total Assets | 21,356,679 | 14,870,672 | | **Equity** | | | | Equity Attributable to Owners of the Company | 14,184,042 | 10,683,505 | | Non-controlling Interests | 245,532 | 201,134 | | Total Equity | 14,429,574 | 10,884,639 | | **Liabilities** | | | | Total Non-current Liabilities | 1,003,907 | 616,005 | | Total Current Liabilities | 5,923,198 | 3,370,028 | | Total Liabilities | 6,927,105 | 3,986,033 | | Total Equity and Liabilities | 21,356,679 | 14,870,672 | | Cash and Cash Equivalents | 11,922,694 | 6,109,017 | | Trade Receivables | 971,579 | 477,723 | | Inventories | 2,273,691 | 1,524,521 | | Trade Payables | 1,627,664 | 1,010,109 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [General Information](index=6&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) POP MART International Group Limited, incorporated in the Cayman Islands, primarily engages in the design, development, and sale of trendy toys in China and overseas, with its shares listed on the Main Board of the Hong Kong Stock Exchange since December 11, 2020 - The company's main business involves the product design, development, and sale of trendy toys, covering markets in China and overseas[8](index=8&type=chunk) - The company was incorporated in the Cayman Islands on May 9, 2019, and listed on the Hong Kong Stock Exchange on December 11, 2020[8](index=8&type=chunk) [Basis of Preparation](index=6&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and is consistent with the accounting policies adopted in the annual financial statements for the year ended December 31, 2024, with the adoption of an amendment to IAS 21 expected to have no material impact on the current or future periods - Interim financial information is prepared in accordance with **IAS 34** and is consistent with the accounting policies of the previous year[10](index=10&type=chunk) - The company first applied the amendment to **IAS 21, "Lack of Exchangeability,"** from January 1, 2025, with no significant impact expected[11](index=11&type=chunk) - New or amended accounting standards issued but not yet effective are not expected to have a material impact on the Group's current or future reporting periods, though **IFRS 18** may have a general impact on presentation and disclosure upon its effective date[12](index=12&type=chunk)[13](index=13&type=chunk) [Segment and Revenue Information](index=7&type=section&id=%E5%88%86%E9%83%A8%E5%8F%8A%E6%94%B6%E7%9B%8A%E8%B3%87%E6%96%99) The Group has reclassified its business into two reportable segments, "China Business" and "Overseas Business," following an organizational structure upgrade, with China Business revenue reaching RMB 8,282,812 thousand and Overseas Business revenue reaching RMB 5,593,464 thousand for the six months ended June 30, 2025, both showing significant growth - The Group has adjusted its reportable segments to "China Business" and "Overseas Business," and comparative data has been restated[14](index=14&type=chunk)[15](index=15&type=chunk) Segment Revenue and Results | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Segment Results (RMB thousands) | 2024 Segment Results (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | China Business | 8,282,812 | 3,521,231 | 4,049,193 | 1,262,004 | | Overseas Business | 5,593,464 | 1,036,600 | 2,469,468 | 350,899 | | Total | 13,876,276 | 4,557,831 | 6,518,661 | 1,612,903 | Revenue by Channel (First Half 2025) | Channel | China Business (RMB thousands) | Overseas Business (RMB thousands) | | :--- | :--- | :--- | | Retail Store Sales | 4,405,948 | 2,502,062 | | Online Sales | 2,937,255 | 2,560,742 | | Robot Store Sales | 678,298 | 142,443 | | Wholesale and Others | 261,311 | 388,217 | | Subtotal | 8,282,812 | 5,593,464 | | Total | 13,876,276 | | [Details of Cost of Sales and Expenses](index=10&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC%E5%8F%8A%E9%96%8B%E6%94%AF%E6%98%8E%E7%B4%B0) For the six months ended June 30, 2025, total cost of sales and expenses amounted to RMB 8,078,207 thousand, with inventory costs, employee benefit expenses, and transportation and logistics expenses being significant components, all showing substantial year-on-year increases Cost of Sales and Expenses Breakdown | Expense Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Inventory Costs Included in Cost of Sales | 3,272,871 | 1,282,095 | | Employee Benefit Expenses | 992,685 | 657,748 | | Transportation and Logistics Expenses | 784,667 | 121,931 | | Commission and E-commerce Platform Service Fees | 642,451 | 206,785 | | Design and Licensing Fees | 451,171 | 192,352 | | Advertising and Marketing Expenses | 400,899 | 198,592 | | Total | 8,078,207 | 3,426,342 | [Other Income](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, total other income was RMB 67,232 thousand, primarily from government grants and licensing and other service income, representing a 112.9% increase from the prior year Other Income Breakdown | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government Grants | 37,810 | 10,301 | | Licensing and Other Service Income | 25,769 | 18,949 | | Others | 3,653 | 2,336 | | Total | 67,232 | 31,586 | [Other Gains / (Losses) – Net](index=11&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%EF%BC%8D%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, the company achieved net other gains of RMB 179,186 thousand, primarily driven by exchange gains and gains from remeasuring existing equity interests in a former joint venture upon business combination, compared to a net loss in the prior period Other Gains / (Losses) – Net | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair Value Changes of Financial Instruments at FVTPL | 23,696 | (33,305) | | Exchange Gains or Losses | 120,130 | (9,868) | | Gain on Remeasurement of Existing 50% Equity Interest in Former Joint Venture upon Business Combination | 42,165 | – | | Total | 179,186 | (34,069) | - The company recognized a gain of approximately **RMB 42,165 thousand** from the acquisition of a 50% equity interest in Pop Mart South Asia Pte. Ltd. in June 2025[20](index=20&type=chunk) [Finance Income – Net](index=11&type=section&id=%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5%EF%BC%8D%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, net finance income decreased to RMB 65,506 thousand from RMB 83,775 thousand in the prior period, mainly due to lower interest income from cash and bank deposits Finance Income – Net | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Income from Cash and Bank Deposits | 93,870 | 105,993 | | Interest Expense on Lease Liabilities | (28,275) | (19,766) | | Finance Income – Net | 65,506 | 83,775 | [Income Tax Expense](index=11&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, income tax expense significantly increased to RMB 1,475,159 thousand, primarily due to higher profit before income tax and an estimated average annual tax rate increase from 21.5% to 24.0% Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax | 1,661,562 | 275,915 | | Deferred Income Tax Credit | (186,403) | (11,619) | | Income Tax Expense | 1,475,159 | 264,296 | - The estimated average annual tax rate increased from **21.5%** in the first half of 2024 to **24.0%** in the first half of 2025[22](index=22&type=chunk) [Dividends](index=12&type=section&id=%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, total dividends paid amounted to RMB 1,083,288 thousand, or RMB 81.46 cents per share, a significant increase from the prior period, with the Board not recommending an interim dividend for the current period Dividends Paid | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Dividends Paid | 1,083,288 | 373,025 | | Dividends Per Share (RMB cents) | 81.46 | 28.21 | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[23](index=23&type=chunk) [Earnings Per Share](index=12&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share were RMB 344.17 cents and diluted earnings per share were RMB 342.95 cents, both showing substantial year-on-year growth Earnings Per Share Summary | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 344.17 | 69.49 | | Diluted Earnings Per Share | 342.95 | 69.22 | [Basic Earnings Per Share](index=12&type=section&id=%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E7%9B%88%E5%88%A9) Basic earnings per share are calculated by dividing profit attributable to owners of the company by the weighted average number of ordinary shares outstanding, amounting to RMB 344.17 cents as of June 30, 2025 Basic Earnings Per Share Calculation | Item | 2025 (RMB thousands / thousand shares) | 2024 (RMB thousands / thousand shares) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 4,574,368 | 921,333 | | Weighted Average Number of Ordinary Shares Outstanding | 1,329,096 | 1,325,920 | | Basic Earnings Per Share (RMB cents) | 344.17 | 69.49 | [Diluted Earnings Per Share](index=12&type=section&id=%E6%AF%8F%E8%82%A1%E6%94%A4%E8%96%84%E7%9B%88%E5%88%A9) Diluted earnings per share, which account for the potential dilutive effect of ordinary shares, were RMB 342.95 cents as of June 30, 2025, slightly lower than basic earnings per share Diluted Earnings Per Share Calculation | Item | 2025 (RMB thousands / thousand shares) | 2024 (RMB thousands / thousand shares) | | :--- | :--- | :--- | | Profit Used to Determine Diluted Earnings Per Share | 4,574,368 | 921,333 | | Weighted Average Number of Shares for Diluted EPS | 1,333,817 | 1,331,101 | | Diluted Earnings Per Share (RMB cents) | 342.95 | 69.22 | [Investments Accounted for Using the Equity Method](index=13&type=section&id=%E4%BD%BF%E7%94%A8%E6%AC%8A%E7%9B%8A%E6%B3%95%E5%85%A5%E8%B3%B9%E7%9A%84%E6%8A%95%E8%B3%87) As of June 30, 2025, the closing balance of investments accounted for using the equity method was RMB 107,024 thousand, a decrease from the beginning of the period, primarily due to a transfer to a subsidiary Investments Accounted for Using the Equity Method | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Opening Balance | 136,783 | 107,001 | | Share of Profit for the Period | 47,625 | 18,246 | | Transfer to a Subsidiary | (74,527) | – | | Closing Balance | 107,024 | 112,928 | [Trade Receivables](index=13&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables significantly increased to RMB 971,579 thousand from December 31, 2024, primarily driven by growth in third-party receivables, with most receivables aged within 3 months Trade Receivables Breakdown | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables – Third Parties | 969,945 | 442,605 | | Trade Receivables – Related Parties | 12,468 | 44,033 | | Less: Impairment Provision | (10,834) | (8,915) | | Total Trade Receivables | 971,579 | 477,723 | Ageing Analysis of Trade Receivables (by Invoice Date) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 905,163 | 472,557 | | 3 to 6 Months | 70,351 | 9,752 | | Over 6 Months | 6,899 | 4,329 | | Total | 982,413 | 486,638 | - Impairment provision for trade receivables increased from **RMB 8,915 thousand** on January 1, 2024, to **RMB 10,834 thousand** on June 30, 2025[28](index=28&type=chunk) [Share Capital and Treasury Shares](index=14&type=section&id=%E8%82%A1%E6%9C%AC%E5%8F%8A%E5%BA%AB%E5%AD%98%E8%82%A1) As of June 30, 2025, the company had 1,342,943,150 issued and fully paid ordinary shares with a par value of RMB 882 thousand, and did not purchase, sell, or redeem any listed securities or sell any treasury shares during the reporting period Share Capital Movement | Item | Number of Ordinary Shares | Par Value of Ordinary Shares (RMB thousands) | | :--- | :--- | :--- | | As at January 1, 2024 | 1,348,243,150 | 885 | | Shares Repurchased and Cancelled | (5,300,000) | (3) | | As at June 30, 2025 | 1,342,943,150 | 882 | - As of June 30, 2025, the company held no treasury shares[28](index=28&type=chunk) [Trade Payables](index=14&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade payables for goods significantly increased to RMB 1,627,664 thousand from December 31, 2024, primarily due to increased procurement driven by business growth, with most payables aged within 30 days Trade Payables for Goods | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables for Goods | 1,627,664 | 1,010,109 | Ageing Analysis of Trade Payables (by Invoice Date) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 Days | 1,520,105 | 589,043 | | 30 to 90 Days | 45,435 | 370,583 | | 90 to 180 Days | 22,698 | 18,452 | | Over 180 Days | 39,426 | 32,031 | | Total | 1,627,664 | 1,010,109 | [License Fees Payable](index=15&type=section&id=%E6%87%89%E4%BB%98%E6%8E%88%E6%AC%8A%E8%B2%BB) As of June 30, 2025, total license fees payable amounted to RMB 553,892 thousand, comprising a current portion of RMB 546,245 thousand and a non-current portion of RMB 7,647 thousand, an increase from December 31, 2024 License Fees Payable Breakdown | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | License Fees Payable | 553,892 | 356,371 | | Less: Non-current Portion | (7,647) | (14,536) | | Current Portion | 546,245 | 341,835 | - License fees payable include fixed minimum payments and variable payments based on sales, related to exclusive and non-exclusive IP licensing agreements with artists[32](index=32&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Business Review](index=16&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) POP MART's first-half revenue grew by 204.4% year-on-year to RMB 13,876.3 million, primarily driven by the advancement of its group-wide and internationalization strategies, enhanced IP operational capabilities, and product innovation, with the company being recognized for the first time in Time Magazine's "Time100 Most Influential Companies" list - Company's first-half revenue reached **RMB 13,876.3 million**, a **204.4% year-on-year increase**[34](index=34&type=chunk) - The company was recognized for the first time in Time Magazine's **"Time100 Most Influential Companies"** list for 2025[34](index=34&type=chunk) Revenue Growth by Region (First Half 2025) | Region | Revenue (RMB millions) | YoY Growth Rate (%) | | :--- | :--- | :--- | | China | 8,282.8 | 135.2% | | APAC | 2,850.9 | 257.8% | | Americas | 2,264.9 | 1,142.3% | | Europe and Other Regions | 477.7 | 729.2% | [IP Incubation and Operation](index=16&type=section&id=IP%E5%AD%B5%E5%8C%96%E8%88%87%E9%81%8B%E7%87%9F) IP operation and creative design are crucial for the company's growth, with 13 artist IPs generating over RMB 100 million in revenue during the first half, and THE MONSTERS family's LABUBU becoming one of the most popular global IPs, while core IPs like MOLLY, SKULLPANDA, CRYBABY, and DIMOO continue to thrive through differentiated operations and product innovation, with plush product revenue growing by 1,276.2% year-on-year, accounting for 44.2% of total revenue - IP operation and creative design are key factors for the company's sustained healthy growth, with **13 artist IPs generating over RMB 100 million in revenue** during the first half[35](index=35&type=chunk) Core Artist IP Revenue (First Half 2025) | IP | Revenue (RMB millions) | | :--- | :--- | | THE MONSTERS | 4,814.0 | | MOLLY | 1,357.2 | | SKULLPANDA | 1,220.5 | | CRYBABY | 1,218.2 | | DIMOO | 1,105.1 | - **LABUBU** has become a world-class IP with its unique style, and the third-generation vinyl plush "High Energy Ahead" series has gained global popularity[36](index=36&type=chunk) - Plush product revenue reached **RMB 6,139.2 million**, a **1,276.2% year-on-year increase**, accounting for **44.2% of total revenue**, becoming a phenomenal hit[41](index=41&type=chunk)[65](index=65&type=chunk) - **MEGA COLLECTION** brand operations have matured, achieving **RMB 1,007.1 million in revenue** in the first half, accounting for **7.3%**[43](index=43&type=chunk) [Consumer Reach](index=19&type=section&id=%E6%B6%88%E8%B2%BB%E8%80%85%E8%A7%B8%E9%81%94) The company continues to expand its global offline channels, operating 571 stores and 2,597 robot stores worldwide as of June 30, 2025, while online channels like POP MART H.A.P.P.Y. Box, Tmall, and Douyin achieved rapid growth, with official websites and self-developed apps covering 37 countries globally, and mainland China's cumulative registered members reaching 59.12 million, contributing 91.2% of sales Global Channel Count (As of June 30, 2025) | Channel Type | Quantity | Net Increase in H1 | | :--- | :--- | :--- | | Stores | 571 | 40 | | Robot Stores | 2,597 | 105 | - Offline stores in China increased by **12** to **443**, Americas by **19** to **41**, APAC by **5** to **69**, and Europe by **4** to **18**[44](index=44&type=chunk) - Online channels, including POP MART H.A.P.P.Y. Box, Tmall flagship store, and Douyin platform, all ranked first in industry sales during the **6.18 shopping festival**[45](index=45&type=chunk) - Official websites now cover **37 countries**, with self-developed apps launched simultaneously in **34 countries**, integrating the "H.A.P.P.Y. Box" gameplay[46](index=46&type=chunk) - Cumulative registered members in mainland China increased to **59.12 million**, with member sales contributing **91.2%** and a repurchase rate of **50.8%** in the first half[48](index=48&type=chunk) [Theme Parks, IP Experience, and Innovative Business Incubation](index=20&type=section&id=%E4%B8%BB%E9%A1%8C%E6%A8%82%E5%9C%92%E8%88%87IP%E7%B6%93%E9%A9%97%E5%8F%8A%E5%89%B5%E6%96%B0%E6%A5%AD%E5%8B%99%E5%AD%B5%E5%8C%96) POP MART City Park continues to optimize service experiences, launching themed events and upgrading facilities, while THE MONSTERS frequently participate in fashion shows, and DIMOO was honored as "Special Friend for the 50th Anniversary of China-Thailand Diplomatic Relations," with the company also hosting large-scale offline exhibitions and opening "popop" accessory stores to explore IP extension possibilities - POP MART City Park, opened in Beijing in September 2023, underwent equipment upgrades in some areas in April 2025 and launched a "Sparkling Summer" theme event in June[49](index=49&type=chunk) - **DIMOO** was awarded the title of **"Special Friend for the 50th Anniversary of China-Thailand Diplomatic Relations,"** releasing limited-edition figures and animated shorts that blend Chinese and Thai cultures[49](index=49&type=chunk) - The company launched **"popop" accessory stores**, deconstructing and extending IPs to create wearable art symbols[51](index=51&type=chunk) [Financial Review](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the company achieved substantial growth in revenue, gross profit, operating profit, and net profit, with gross margin improving to 70.3% primarily due to increased overseas sales, optimized product design, and cost control, and while expenses rose with business expansion, overall profitability significantly strengthened, resulting in increased net current assets, ample cash and cash equivalents, and a gearing ratio of 32.4% - Company revenue increased from **RMB 4,557.8 million** in the first half of 2024 to **RMB 13,876.3 million** in the first half of 2025, a **204.4% year-on-year increase**[52](index=52&type=chunk) - Gross margin increased from **64.0%** in the first half of 2024 to **70.3%** in the first half of 2025, primarily due to increased overseas sales, optimized product design, and cost control[68](index=68&type=chunk) - Operating profit increased by **436.5% year-on-year** to **RMB 6,043.7 million**[72](index=72&type=chunk) - Profit for the period increased by **385.6% year-on-year** to **RMB 4,681.7 million**[75](index=75&type=chunk) - Net current assets increased to **RMB 11,927.4 million**, and cash and cash equivalents increased to **RMB 11,922.7 million**[80](index=80&type=chunk)[83](index=83&type=chunk) - As of June 30, 2025, the gearing ratio was **32.4%**, an increase from **26.8%** as of December 31, 2024[87](index=87&type=chunk) [Revenue](index=21&type=section&id=%E9%8A%B7%E5%94%AE%E6%94%B6%E5%85%A5) Total company revenue increased by 204.4% year-on-year to RMB 13,876.3 million, with China region revenue growing by 135.2%, and overseas markets showing particularly strong performance with APAC, Americas, Europe, and other regions growing by 257.8%, 1,142.3%, and 729.2% respectively, while self-developed product revenue accounted for 99.1%, including a 231.6% increase in artist IP revenue and a 1,276.2% increase in plush product revenue Revenue and Proportion by Region (First Half 2025) | Region | Revenue (RMB thousands) | Revenue Proportion (%) | Revenue Change (%) | | :--- | :--- | :--- | :--- | | China | 8,282,812 | 59.7% | 135.2% | | APAC | 2,850,902 | 20.6% | 257.8% | | Americas | 2,264,882 | 16.3% | 1,142.3% | | Europe and Other Regions | 477,680 | 3.4% | 729.2% | | Total | 13,876,276 | 100.0% | 204.4% | [Revenue by Region](index=21&type=section&id=%E6%A0%B9%E6%93%9A%E5%8D%80%E5%9F%9F%E5%8A%83%E5%88%86%E7%9A%84%E6%94%B6%E5%85%A5) China region revenue grew by 135.2%, with offline channels increasing by 117.1% and online channels by 212.2%, while overseas markets saw rapid growth, with APAC, Americas, Europe, and other regions increasing by 257.8%, 1,142.3%, and 729.2% respectively, primarily driven by store expansion, online platform development, and localized operations China Region Revenue by Channel (First Half 2025) | Channel | Revenue (RMB thousands) | Revenue Proportion (%) | Revenue Change (%) | | :--- | :--- | :--- | :--- | | Offline Channels | 5,084,246 | 61.4% | 117.1% | | Retail Stores | 4,405,948 | 53.2% | 119.9% | | Robot Stores | 678,298 | 8.2% | 100.9% | | Online Channels | 2,937,255 | 35.5% | 212.2% | | POP MART H.A.P.P.Y. Box | 1,125,227 | 13.6% | 181.9% | | Tmall Flagship Store | 657,503 | 7.9% | 230.7% | | Douyin Platform | 561,138 | 6.8% | 168.6% | | Other Online Channels | 593,387 | 7.2% | 343.5% | | Wholesale and Others | 261,311 | 3.1% | 9.4% | | Total | 8,282,812 | 100.0% | 135.2% | APAC Region Revenue by Channel (First Half 2025) | Channel | Revenue (RMB thousands) | Revenue Proportion (%) | Revenue Change (%) | | :--- | :--- | :--- | :--- | | Offline Channels | 1,525,588 | 53.5% | 203.5% | | Retail Stores | 1,492,991 | 52.4% | 207.6% | | Robot Stores | 32,597 | 1.1% | 88.7% | | Online Channels | 1,069,214 | 37.5% | 546.7% | | POP MART Official Website | 312,968 | 11.0% | 690.3% | | Shopee | 280,778 | 9.8% | 584.6% | | Other Online Channels | 475,468 | 16.7% | 461.3% | | Wholesale and Others | 256,100 | 9.0% | 98.9% | | Total | 2,850,902 | 100.0% | 257.8% | Americas Region Revenue by Channel (First Half 2025) | Channel | Revenue (RMB thousands) | Revenue Proportion (%) | Revenue Change (%) | | :--- | :--- | :--- | :--- | | Offline Channels | 842,390 | 37.2% | 744.3% | | Retail Stores | 736,961 | 32.5% | 744.6% | | Robot Stores | 105,429 | 4.7% | 741.7% | | Online Channels | 1,326,565 | 58.6% | 1,977.4% | | POP MART Official Website | 886,501 | 39.2% | 2,984.2% | | TikTok Platform | 315,025 | 13.9% | 2,032.9% | | Other Online Channels | 125,039 | 5.5% | 514.6% | | Wholesale and Others | 95,927 | 4.2% | 413.5% | | Total | 2,264,882 | 100.0% | 1,142.3% | Europe and Other Regions Revenue by Channel (First Half 2025) | Channel | Revenue (RMB thousands) | Revenue Proportion (%) | Revenue Change (%) | | :--- | :--- | :--- | :--- | | Offline Channels | 276,527 | 57.9% | 569.6% | | Retail Stores | 272,110 | 57.0% | 571.6% | | Robot Stores | 4,417 | 0.9% | 464.8% | | Online Channels | 164,963 | 34.5% | 1,358.7% | | POP MART Official Website | 84,694 | 17.7% | 6,390.0% | | Other Online Channels | 80,269 | 16.8% | 702.4% | | Wholesale and Others | 36,190 | 7.6% | 624.4% | | Total | 477,680 | 100.0% | 729.2% | [Revenue by IP](index=27&type=section&id=%E6%A0%B9%E6%93%9AIP%E5%8A%83%E5%88%86%E7%9A%84%E6%94%B6%E5%85%A5) Self-developed product revenue accounted for 99.1% of total revenue, growing by 213.8% year-on-year, with artist IP revenue increasing by 231.6%, including THE MONSTERS revenue growing by 668.0% year-on-year, and licensed IP revenue increasing by 119.4% - Self-developed product revenue accounted for **99.1% of total revenue**, with a **213.8% year-on-year increase**[63](index=63&type=chunk) - Artist IP revenue increased by **231.6%**, with **THE MONSTERS** revenue reaching **RMB 4,814.0 million**, a **668.0% year-on-year increase**[66](index=66&type=chunk) - Licensed IP revenue increased by **119.4%** to **RMB 1,524.8 million**[66](index=66&type=chunk) Revenue by IP Type (First Half 2025) | IP Type | Revenue (RMB thousands) | Revenue Proportion (%) | | :--- | :--- | :--- | | Self-developed Products | 13,753,405 | 99.1% | | Artist IPs | 12,228,565 | 88.1% | | THE MONSTERS | 4,814,017 | 34.7% | | MOLLY | 1,357,248 | 9.8% | | SKULLPANDA | 1,220,504 | 8.8% | | CRYBABY | 1,218,170 | 8.8% | | DIMOO | 1,105,135 | 8.0% | | Licensed IPs | 1,524,840 | 11.0% | [Revenue by Product Category](index=28&type=section&id=%E6%A0%B9%E6%93%9A%E7%94%A2%E5%93%81%E9%A1%9E%E5%88%A5%E5%8A%83%E5%88%86%E7%9A%84%E6%94%B6%E5%85%A5) Plush product revenue increased by 1,276.2% year-on-year to RMB 6,139.2 million, accounting for 44.2% of total revenue and becoming a phenomenal hit, with revenue from figurines, MEGA, and derivatives and other products also showing growth - Plush product revenue increased by **1,276.2% year-on-year**, accounting for **44.2% of total revenue**[65](index=65&type=chunk) - Revenue from figurines increased by **94.8%**, MEGA by **71.8%**, and derivatives and other products by **78.9%**[65](index=65&type=chunk) Revenue by Product Category (First Half 2025) | Product Category | Revenue (RMB thousands) | Revenue Proportion (%) | Revenue Change (%) | | :--- | :--- | :--- | :--- | | Plush | 6,139,236 | 44.2% | 1,276.2% | | Figurines | 5,175,875 | 37.3% | 94.8% | | MEGA | 1,007,147 | 7.3% | 71.8% | | Derivatives and Others | 1,554,018 | 11.2% | 78.9% | | Total | 13,876,276 | 100.0% | 204.4% | [Cost of Sales](index=29&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales increased by 151.1% year-on-year to RMB 4,115.2 million, primarily due to higher inventory costs from increased sales, and increased design and licensing costs driven by a higher proportion of self-developed products and more co-branded products - Cost of sales increased by **151.1% year-on-year** to **RMB 4,115.2 million**[67](index=67&type=chunk) - Inventory costs increased to **RMB 3,272.9 million**, and design and licensing costs increased to **RMB 524.1 million**[67](index=67&type=chunk) [Gross Profit](index=29&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit increased by 234.4% year-on-year to RMB 9,761.1 million, with gross margin improving from 64.0% to 70.3%, primarily due to a higher proportion of overseas sales, optimized product design, enhanced cost control, and a decrease in the proportion of outsourced goods - Gross profit increased by **234.4% year-on-year** to **RMB 9,761.1 million**[68](index=68&type=chunk) - Gross margin increased from **64.0%** in the first half of 2024 to **70.3%** in the first half of 2025[68](index=68&type=chunk) - Gross margin improvement is primarily attributed to a higher proportion of overseas sales, optimized product design, enhanced cost control, and a decrease in the proportion of outsourced goods[68](index=68&type=chunk) [Distribution and Selling Expenses](index=29&type=section&id=%E7%B6%93%E9%8A%B7%E5%8F%8A%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) Distribution and selling expenses increased by 135.9% year-on-year to RMB 3,192.6 million, primarily influenced by a 546.7% increase in transportation and logistics expenses and a 51.4% increase in employee benefit expenses, supporting online channel growth and global business expansion - Distribution and selling expenses increased by **135.9% year-on-year** to **RMB 3,192.6 million**[69](index=69&type=chunk) - Transportation and logistics expenses increased by **546.7%** to **RMB 677.1 million**, mainly due to rapid growth in online channels and overseas revenue[69](index=69&type=chunk) - Employee benefit expenses increased by **51.4%** to **RMB 560.8 million**, with the number of sales employees rising to **6,219**[69](index=69&type=chunk) [General and Administrative Expenses](index=30&type=section&id=%E4%B8%80%E8%88%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) General and administrative expenses increased by 77.3% year-on-year to RMB 770.4 million, primarily due to an increase in administrative staff and design and development personnel to 1,830 - General and administrative expenses increased by **77.3% year-on-year** to **RMB 770.4 million**[70](index=70&type=chunk) - The number of administrative staff and design and development personnel increased to **1,830**[70](index=70&type=chunk) [Other Income](index=30&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income increased by 112.9% year-on-year to RMB 67.2 million, primarily from increased government grants and IP licensing and other service income - Other income increased by **112.9% year-on-year** to **RMB 67.2 million**[71](index=71&type=chunk) - Government grants increased to **RMB 37.8 million**, and IP licensing and other service income increased to **RMB 25.8 million**[71](index=71&type=chunk) [Operating Profit](index=30&type=section&id=%E7%B6%93%E7%87%9F%E6%BA%A2%E5%88%A9) Operating profit surged by 436.5% year-on-year to RMB 6,043.7 million, reflecting a significant improvement in the company's overall operating efficiency and profitability - Operating profit increased by **436.5% year-on-year** to **RMB 6,043.7 million**[72](index=72&type=chunk) [Finance Income – Net](index=30&type=section&id=%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5%EF%BC%8D%E6%B7%A8%E9%A1%8D) Net finance income decreased to RMB 65.5 million from RMB 83.8 million in the prior period, primarily due to reduced interest income and increased finance costs - Net finance income decreased to **RMB 65.5 million** from **RMB 83.8 million** in the prior period[73](index=73&type=chunk) [Income Tax Expense](index=30&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense increased to RMB 1,475.2 million, primarily due to higher profit before income tax and an increase in the effective tax rate from 21.5% to 24.0% - Income tax expense increased to **RMB 1,475.2 million**, with the effective tax rate rising to **24.0%**[74](index=74&type=chunk) [Profit for the Period](index=31&type=section&id=%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) Profit for the period increased by 385.6% year-on-year to RMB 4,681.7 million, reflecting the company's strong profitability during the reporting period - Profit for the period increased by **385.6% year-on-year** to **RMB 4,681.7 million**[75](index=75&type=chunk) [Non-IFRS Adjusted Net Profit](index=31&type=section&id=%E9%9D%9E%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%9C%83%E8%A8%88%E6%BA%96%E5%88%99%E7%B6%93%E8%AA%BF%E6%95%B4%E7%B4%94%E5%88%A9) Non-IFRS adjusted net profit was RMB 4,709.6 million, a 362.8% year-on-year increase, with an adjusted net profit margin of 33.9%, primarily by excluding share-based compensation expenses to better reflect operating performance Non-IFRS Adjusted Net Profit Reconciliation | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 4,681,713 | 964,142 | | Adjustment: Share-based Payment Expenses | 27,917 | 53,483 | | Non-IFRS Adjusted Net Profit | 4,709,630 | 1,017,625 | | Non-IFRS Adjusted Net Profit Margin | 33.9% | 22.3% | - Non-IFRS adjusted net profit increased by **362.8% year-on-year**, with the adjusted net profit margin rising to **33.9%**[78](index=78&type=chunk) [Current Assets, Financial Resources, and Capital Expenditures](index=31&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) The company's net current assets increased to RMB 11,927.4 million, with a significant rise in cash and cash equivalents, while trade receivables and inventories grew with business expansion but saw improved turnover days, and the company has no bank borrowings or pledged assets, with a gearing ratio of 32.4%, and capital expenditures increased year-on-year to RMB 374.5 million - Net current assets increased from **RMB 8,866.1 million** as of December 31, 2024, to **RMB 11,927.4 million** as of June 30, 2025[80](index=80&type=chunk) - Trade receivables increased to **RMB 971.6 million**, with turnover days decreasing from **11 days** to **10 days**[81](index=81&type=chunk) - Inventories increased to **RMB 2,273.7 million**, with turnover days decreasing from **102 days** to **83 days**[82](index=82&type=chunk) - Cash and cash equivalents increased to **RMB 11,922.7 million**, primarily due to increased cash from operating activities and a decrease in time deposits[83](index=83&type=chunk) - Trade payables increased to **RMB 1,627.7 million**, with turnover days decreasing from **74 days** to **73 days**[84](index=84&type=chunk) - As of June 30, 2025, the company had no bank borrowings or pledged assets[85](index=85&type=chunk)[86](index=86&type=chunk) - The gearing ratio was **32.4%**, an increase from **26.8%** as of December 31, 2024[87](index=87&type=chunk) Capital Expenditures (First Half 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 353,623 | 157,858 | | Acquisition of Intangible Assets | 20,900 | 28,587 | | Total | 374,523 | 186,445 | [Staff Costs](index=34&type=section&id=%E5%93%A1%E5%B7%A5%E6%88%90%E6%9C%AC) As of June 30, 2025, the company had 8,049 employees, with total staff costs amounting to RMB 992.7 million - As of June 30, 2025, the company had **8,049 employees**, including **6,219 sales employees** and **1,830 administrative and development personnel**[91](index=91&type=chunk) - Total staff costs for the first half amounted to **RMB 992.7 million**[91](index=91&type=chunk) [Future Plans for Material Investments](index=34&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of June 30, 2025, the company held no material investments but will continue to seek potential strategic investment opportunities to generate synergistic effects - The company will continue to broadly seek potential strategic investment opportunities to generate synergistic effects for the Group[92](index=92&type=chunk) [Material Acquisitions and Disposals](index=34&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the company did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the company did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[93](index=93&type=chunk) [Events After the Reporting Period](index=34&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E9%96%93%E5%BE%8C%E4%BA%8B%E9%A0%85) As of the date of this announcement, no material events requiring further disclosure or adjustment have occurred after the reporting period - No material events occurred after the reporting period[94](index=94&type=chunk) [Outlook](index=34&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The company will continue to focus on IP, enriching IP types, enhancing design innovation, and establishing a global supply chain, while also expanding its global business footprint, increasing investment in official websites and self-developed apps, strengthening differentiated channel positioning and member operations, and launching new businesses like theme parks to build a more comprehensive commercial ecosystem - The company will focus on enriching IP types, expanding its IP portfolio, maintaining high-quality design innovation, and strengthening the core of its IPs[95](index=95&type=chunk) - The supply chain will be globally deployed, seeking more suitable and efficient factories and suppliers, with a focus on sustainable development and environmental protection[95](index=95&type=chunk) - Continued expansion of the global business footprint, opening offline channels in key global landmark locations, and increasing investment in official websites and self-developed apps[96](index=96&type=chunk) - Enhanced refined member operation capabilities, continuously enriching content, interaction, and experience, and improving service quality[96](index=96&type=chunk) - While deepening its trendy toy business, the company will promote the launch of new businesses like theme parks to build a more comprehensive and richer IP-centric commercial ecosystem[96](index=96&type=chunk) [Use of Net Proceeds from Listing](index=35&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E6%B7%A8%E9%A1%8D%E7%94%A8%E9%80%94) The total net proceeds from the company's global offering were approximately HKD 5,781.7 million, and as of June 30, 2025, most proceeds have been utilized as intended in the prospectus, including expanding consumer reach channels and overseas markets, investing in technological initiatives, enlarging the IP portfolio, and for working capital - The total net proceeds from the global offering were approximately **HKD 5,781.7 million**[97](index=97&type=chunk) Intended Use and Utilization of Net Proceeds (As of June 30, 2025) | Intended Use | Allocation Ratio (%) | Amount Utilized (HKD millions) | Unutilized Balance (HKD millions) | | :--- | :--- | :--- | :--- | | Expansion of Consumer Reach Channels and Overseas Markets | 30.0% | 1,734.5 | – | | Potential Investments, Acquisitions, and Strategic Alliances | 27.0% | 311.8 | 1,249.3 | | Investment in Technological Initiatives | 15.0% | 703.1 | 164.1 | | Enlarging the IP Portfolio | 18.0% | 364.4 | 676.3 | | Working Capital and General Corporate Purposes | 10.0% | 578.2 | – | | Total | 100.0% | 3,692.0 | 2,089.7 | [Interim Dividend](index=37&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[100](index=100&type=chunk) [Corporate Governance](index=37&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) [Corporate Governance Code](index=37&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with all applicable code provisions during the reporting period, except for the roles of Chairman and Chief Executive Officer being performed by the same individual (Mr. Wang Ning), which the Board believes does not undermine the balance of power - The company has adopted the Corporate Governance Code in **Appendix C1 of the Listing Rules** and complied with all applicable provisions during the reporting period[101](index=101&type=chunk) - The roles of Chairman and Chief Executive Officer are held by **Mr. Wang Ning**, a structure the Board believes provides sufficient checks and balances and ensures consistent leadership[102](index=102&type=chunk) [Model Code for Securities Transactions](index=38&type=section&id=%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99) The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors have confirmed compliance with the code during the reporting period - The company adopted the **Model Code in Appendix C3 of the Listing Rules**, and all directors confirmed compliance during the reporting period[103](index=103&type=chunk) [Purchase, Sale or Redemption of Listed Securities or Sale of Treasury Shares](index=39&type=section&id=%E8%B3%BC%E5%85%A5%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8%E6%88%96%E5%87%BA%E5%94%AE%E5%BA%AB%E5%AD%98%E8%82%A1) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities or sold any treasury shares - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities or sold any treasury shares[104](index=104&type=chunk) [Audit Committee](index=39&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising two independent non-executive directors and one non-executive director, has reviewed the accounting principles and practices adopted by the Group and discussed internal controls and financial reporting matters, including this interim financial information - The Audit Committee comprises **Mr. Wu Liansheng (Chairman), Mr. Yan Jinliang, and Mr. Tu Zheng**, with Mr. Yan Jinliang possessing professional accounting qualifications[105](index=105&type=chunk) - The Audit Committee has reviewed this interim financial information, and external auditor PricewaterhouseCoopers has conducted a review, finding no material issues[105](index=105&type=chunk) [Publication of Interim Results and 2025 Interim Report](index=40&type=section&id=%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the HKEX and the company's website, and the 2025 interim report containing information required by the Listing Rules will be published in due course - This interim results announcement has been published on the **HKEX** and the company's website[106](index=106&type=chunk) - The 2025 interim report, containing information required by the Listing Rules, will be published in due course[106](index=106&type=chunk) [By Order of the Board](index=40&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) This announcement was issued by Mr. Wang Ning, Chairman and Chief Executive Officer of POP MART International Group Limited, on August 19, 2025, and includes the list of Board members - This announcement was issued by **Mr. Wang Ning**, Executive Director, Chairman of the Board, and Chief Executive Officer, on **August 19, 2025**[107](index=107&type=chunk)[108](index=108&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不發表 聲明，並明確表示概不會就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之任何損失承擔任何責 任。 XPeng Inc. 小鵬汽車有限公司* （於開曼群島註冊成立以不同投票權控制的有限公司） （股份代號：9868） 小鵬汽車發佈 2025 年第二季度的未經審計財務業績 本公告乃根據香港聯合交易所有限公司證券上市規則第13.09條及根據證券及期貨條 例（香港法例第571章）第XIVA部而刊發。 中國廣州，2025年8月19日 — 中國領先的智能電動汽車（「智能電動汽車」）公司XPeng Inc. （「小鵬汽車」或「本公司」，紐交所代號：XPEV及聯交所代號：9868）今天公佈其截至2025 年6月30日止三個月的未經審計財務業績。 截至2025年6月30日止三個月的運營及財務摘要 2025年 第二季度 2025年 第一季度 2024年 第四季度 2024年 第三季度 2024年 第二季度 2024年 第一季度 總交付量 103,181 94,008 91,507 46,533 30,207 21,821 1 ...