Financial Performance - Total revenue for the first half of 2025 was RMB 1,224,064,000, a decrease of 48.2% compared to RMB 2,363,780,000 in the same period of 2024[5] - The gross profit margin improved by 4.7 percentage points to 14.4% from 9.7% year-on-year[5] - Normalized net loss narrowed significantly by 59.6% to RMB 11,996,000 from RMB 29,694,000 in the previous year[5] - Revenue from commercial health insurance services decreased by approximately 24.2% to about RMB 83.1 million for the six months ended June 30, 2025, down from RMB 109.6 million in 2024[14] - Revenue from the doctor research assistance business increased by approximately 14.8% to about RMB 215.1 million for the six months ended June 30, 2025, compared to RMB 187.4 million in 2024[15] - Revenue from the specialty pharmacy business decreased by approximately 55.2% to about RMB 925.8 million for the six months ended June 30, 2025, down from RMB 2,066.8 million in 2024[15] - The company reported revenue of RMB 1,224,064 thousand for the six months ended June 30, 2025, a decrease of 48.3% compared to RMB 2,363,780 thousand for the same period in 2024[42] - Gross profit for the same period was RMB 176,099 thousand, down 23.1% from RMB 228,931 thousand in 2024[42] - The company incurred a net loss of RMB 81,139 thousand for the six months ended June 30, 2025, compared to a net loss of RMB 74,651 thousand in 2024, representing a 8.3% increase in loss[42] Strategic Focus and Business Development - The company focused on the development of commercial health insurance services, with corporate health insurance revenue increasing by 10.2% to RMB 42,809,000[5] - The company aims to enhance its position in the commercial medical insurance market, leveraging the "Health China 2030" strategy to support high-quality development[6] - The management emphasized the integration of high-quality medical services with data insights to create a differentiated "medical, pharmaceutical, and health insurance" delivery model[7] - The strategic focus includes expanding the commercial health insurance business and optimizing service networks to meet employee health management needs[4] - The company is committed to building a sustainable value-creating ecosystem by connecting patients, doctors, medical institutions, and pharmaceutical companies[7] - The company is actively exploring opportunities for market expansion and potential acquisitions to enhance its service offerings and market presence[46] Cost Management and Efficiency - For the six months ended June 30, 2025, the total sales cost decreased by approximately 50.9% to about RMB 1,048.0 million from RMB 2,134.8 million for the same period in 2024, primarily due to strategic restructuring in the specialty pharmacy and health insurance segments[16] - Selling and marketing expenses decreased by approximately 41.3% to about RMB 80.9 million, attributed to efficiency improvements related to the commercial health insurance service and strategic restructuring in the specialty pharmacy business[18] - Administrative expenses decreased by approximately 7.0% to about RMB 150.5 million, mainly due to organizational optimization and digitization efforts to enhance administrative efficiency[19] - Research and development expenses significantly decreased by approximately 66.1% to about RMB 5.1 million, as prior investments in R&D began to yield results[20] - The restructuring costs amounted to approximately RMB 13.5 million, primarily arising from strategic transformations in the specialty pharmacy and health insurance segments[21] Assets and Liabilities - As of June 30, 2025, the company recorded a net current asset value of approximately RMB 674.3 million, with a debt-to-asset ratio of about 47.8%[27] - The cash and cash equivalents held by the company amounted to approximately RMB 850.6 million as of June 30, 2025, expected to support future operational funding needs[27] - Current assets decreased to RMB 1,539,381 thousand from RMB 1,980,127 thousand, primarily due to a significant reduction in inventory from RMB 193,525 thousand to RMB 92,204 thousand[44] - Current liabilities decreased to RMB 865,130 thousand from RMB 1,036,613 thousand, indicating improved liquidity management[45] - The net asset value of the company was RMB 956,314 thousand as of June 30, 2025, down from RMB 1,201,586 thousand at the end of 2024[45] - Trade receivables as of June 30, 2025, amounted to RMB 215,201,000, a decrease of 22% from RMB 276,048,000 as of December 31, 2024[66] - Trade payables as of June 30, 2025, were RMB 151,962,000, down 63.2% from RMB 412,803,000 as of December 31, 2024[66] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions during the reporting period[69] - The independent auditor has reviewed the interim financial information for the six months ended June 30, 2025, in accordance with the relevant standards[76] - The company plans to continue evaluating its corporate governance structure to ensure effective oversight and balance of power[70] - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2025[41] - The company has not adopted a dividend policy and intends to retain most of its available funds for business development and growth[71] Employee and Operational Metrics - The company has a total of 2,950 employees as of June 30, 2025, primarily based in China[35] - The company has signed contracts with 23 quality commercial medical institutions, covering 118 service points, and completed 2,723 consultations in the first half of 2025[8] - The company has completed 1,009 SMO projects and has 854 projects under research, achieving a 100% retention rate with its top ten clients in the innovative drug development sector[9] Future Outlook - The company expects to continue the trend of business scale growth and improved profitability, supported by ongoing policy benefits and enhanced operational efficiency[12] - The group continues to invest in research and development, with R&D expenses recorded at RMB 5,083 thousand for the six months ended June 30, 2025[52]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 旭日企業有限公司 （於百慕達註冊成立之有限公司） (股份代號：393) GLORIOUS SUN ENTERPRISES LIMITED 中期業績公告 截至二零二五年六月三十日止六個月 中期業績 旭日企業有限公司（「本公司」）董事局（「董事局」）欣然宣佈，本公司及其附屬公司（「本集 團」）截至二零二五年六月三十日止六個月之未經審核中期簡明綜合業績，連同上年同期之比 較數字如下： 簡明綜合損益表 截至二零二五年六月三十日止六個月 | | 附註 | 二零二五年 | 二零二四年 | | --- | --- | --- | --- | | | | (未經審核) | (未經審核) | | | | 千港元 | 千港元 | | 收入 | | | | | 與客戶簽訂合同的收入 | | 432,126 | 403,797 | | 來自其他來源的收入 | | 57,506 | 126,133 | | | (3) | 489 ...

Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 17,185,000, a decrease of 7.44% compared to HKD 18,566,000 for the same period in 2024[3] - Gross profit for the same period was HKD 14,090,000, down 8.99% from HKD 15,481,000 in 2024[3] - Loss before tax improved significantly to HKD 21,988,000, a reduction of 58.99% from HKD 53,618,000 in the previous year[3] - Profit attributable to the owners of the company, excluding fair value changes of investment properties, was HKD 8,039,000, down 20.24% from HKD 10,079,000 in 2024[3] - The company reported a net loss of HKD 23,271,000 for the six months ended June 30, 2025[22] - For the six months ended June 30, 2025, the company recorded a loss of approximately HKD 23.3 million, compared to a loss of HKD 55.2 million for the same period in 2024[39] - The fair value loss of investment properties for the six months ended June 30, 2025, was approximately HKD 31.3 million, down from HKD 65.3 million in 2024[39] - Basic loss per share for the six months ended June 30, 2025, was HKD 3.23, compared to HKD 7.67 in 2024[6] - Basic loss per share was HKD 0.0323, an improvement from a loss of HKD 0.0767 per share in 2024[47] Assets and Liabilities - Total assets as of June 30, 2025, were HKD 1,128,206,000, compared to HKD 1,152,038,000 as of December 31, 2024[7] - Non-current assets, primarily investment properties, decreased to HKD 1,052,750,000 from HKD 1,084,060,000[7] - Current assets increased to HKD 65,350,000 from HKD 57,794,000, with cash and bank balances rising to HKD 62,864,000 from HKD 53,171,000[7] - Total liabilities decreased slightly to HKD 19,781,000 from HKD 20,342,000[8] - The total assets as of June 30, 2025, amounted to HKD 1,128,206,000, with total liabilities of HKD 19,781,000[23] - The total assets as of December 31, 2024, amounted to HKD 1,152.038 million, with total liabilities of HKD 20.342 million[25] - As of June 30, 2025, accounts receivable amounted to HKD 878,000, an increase from HKD 587,000 as of December 31, 2024[35] Revenue Sources - Office property rental income decreased to HKD 8,566,000 from HKD 9,524,000, a decline of 10.1%[22] - Retail property rental income decreased to HKD 6,274,000 from HKD 6,604,000, a decline of 5.0%[22] - Property management fee income increased to HKD 7,044,000 from HKD 6,569,000, an increase of 7.2%[22] - Rental income for the six months ended June 30, 2025, was approximately HKD 14.8 million, a decrease from HKD 16.1 million in 2024, with office rental contributing about 58.1% and retail rental about 41.9%[40] - Property management fee income for the same period was approximately HKD 2.3 million, representing about 13.6% of total revenue, compared to 13.1% in 2024[40] Strategic Outlook - The company continues to evaluate new strategies and potential market expansions to enhance future performance[4] - The company is focusing on property investment and management in core areas, particularly office and retail properties, despite a challenging market environment[45] - The company aims to enhance the value of its core office and retail property portfolio through active management and strategic upgrades[45] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with its relevant provisions as of June 30, 2025[60] - The audit committee has reviewed the unaudited interim consolidated financial information for the six months ended June 30, 2025[62] - The interim results have been reviewed by the company's auditors in accordance with the relevant Hong Kong standards[63] Other Information - The company has not acquired any investment properties or property, plant, and equipment during the six months ended June 30, 2025[21] - The company expects that the adoption of new accounting standards will not have a significant impact on its financial position and operating performance[14] - The company’s management is evaluating the potential impact of new accounting standards and amendments[14] - The company did not declare or pay any dividends for the six months ended June 30, 2025[31] - The company has extended the maturity date of its unsecured revolving loan facility to January 2, 2026, to support its property investment activities[41] - The company has no borrowings as of June 30, 2025, resulting in no calculation of debt-to-equity ratio[48] - The company has no significant contingent liabilities, capital commitments, or major investments as of June 30, 2025[52][53][54] - The company has 17 full-time employees as of June 30, 2025, with employee benefit expenses amounting to approximately HKD 4.2 million[58] - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the six months ended June 30, 2025[59] - No purchases, sales, or redemptions of the company's listed securities took place during the six months ended June 30, 2025[61]

[Supplementary Announcement Overview](index=1&type=section&id=Supplementary%20Announcement%20Overview) This supplementary announcement provides additional details on the stock option scheme for Litmi Co. Ltd.'s 2024 annual report, as required by Listing Rule Chapter 17 [Introduction and Purpose](index=1&type=section&id=Introduction%20and%20Purpose) This announcement supplements Litmi Co. Ltd.'s 2024 annual report by providing additional stock option scheme details under Listing Rule Chapter 17, without altering other report contents - This announcement supplements Litmi Co. Ltd.'s (Stock Code: 1936) 2024 annual report, published on April 25, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - The announcement's purpose is to provide further disclosure on the stock option scheme as per Listing Rule Chapter 17[3](index=3&type=chunk) - All other contents of the annual report remain unchanged, apart from this supplementary disclosure[3](index=3&type=chunk) [Stock Option Scheme Details](index=1&type=section&id=Stock%20Option%20Scheme%20Details) The company discloses the total shares available for issuance under the 2024 stock option scheme and its proportion of issued share capital, confirming no service provider sub-limits Total Shares Available for Issuance and Proportion under Stock Option Scheme | Date | Total Shares Available for Issuance (shares) | Proportion of Issued Share Capital (excluding treasury shares) | | :--- | :--- | :--- | | January 1, 2024 | 50,000,000 | Approximately 10.6% | | December 31, 2024 | 50,000,000 | Approximately 10.7% | | Annual Report Date | 50,000,000 | Approximately 10.7% | - The stock option scheme does not include any sub-limits for service providers[4](index=4&type=chunk)

I. [Interim Results Summary](index=1&type=section&id=I.%20Interim%20Results%20Summary) [Financial Performance Overview](index=1&type=section&id=1.1%20Financial%20Performance%20Overview) The company reported a 30.9% revenue decrease to HKD 412 million and an expanded loss of HKD 118 million, primarily due to slower New York residential sales and property revaluations Financial Performance Summary | Metric | 2025 Interim Period (HKD million) | 2024 Interim Period (HKD million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 412 | 596 | -30.9 | | Loss Attributable to Shareholders | 118 | 30 | 293.3 (Loss expanded) | - The expanded loss was primarily due to **slower sales progress of New York residential projects** leading to decreased revenue, and **continuous adjustments in the US and Hong Kong commercial real estate markets** resulting in downward revaluation of some properties[3](index=3&type=chunk) [Dividend Policy](index=1&type=section&id=1.2%20Dividend%20Policy) The Board of Directors does not recommend any interim dividend for 2025, consistent with the prior year - The Board of Directors does not recommend the payment of any interim dividend for the 2025 interim period[4](index=4&type=chunk) II. [Business Review and Outlook](index=2&type=section&id=II.%20Business%20Review%20and%20Outlook) [Overview](index=2&type=section&id=2.1%20Overview) The Group's core business is US property investment and development, managed by GR Realty, with US investment properties accounting for 72% of total assets - The Group's business core is **US property investment and property development**, managed by GR Realty[5](index=5&type=chunk)[6](index=6&type=chunk) | Asset Category | Percentage of Total Assets (June 30, 2025) | | :--- | :--- | | US Investment Properties | 72% | | Hong Kong Investment Properties | 3% | | US Properties Held for Sale | 6% | [US Property Investment](index=2&type=section&id=2.2%20US%20Property%20Investment) The US investment property portfolio, valued at HKD 6.886 billion, generated HKD 348 million in revenue with a 74% average occupancy rate - The US investment property portfolio includes **eight commercial properties and residential units in New York City**, with some completed development units already leased[7](index=7&type=chunk) | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Carrying Value | 6,886 | 6,914 | -0.4 | | Total Revenue (2025 Interim) | 348 | 377 (2024 Interim) | -7.7 | | Average Occupancy Rate (2025 Interim) | 74% | N/A | N/A | [US Property Development](index=3&type=section&id=2.3%20US%20Property%20Development) US property development projects, mainly New York residential redevelopments, had a carrying value of HKD 547 million and generated HKD 54 million in sales revenue - Property development projects primarily consist of **three residential redevelopment projects in Manhattan and Brooklyn, New York**[9](index=9&type=chunk) | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Carrying Value | 547 | 767 | -28.7 | | Property Sales Revenue (2025 Interim) | 54 | 215 (2024 Interim) | -74.9 | [Hong Kong Investment Properties](index=3&type=section&id=2.4%20Hong%20Kong%20Investment%20Properties) Hong Kong investment properties, mainly Grade A office units valued at HKD 293 million, generated HKD 4 million in rental income with 100% occupancy - Hong Kong investment properties primarily consist of **Grade A office units on Hong Kong Island**[10](index=10&type=chunk) | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Carrying Value | 293 | 321 | -8.7 | | Percentage of Total Assets | 3% | 3% | 0 | | Rental Income (2025 Interim) | 4 | 4 (2024 Interim) | 0 | | Average Occupancy Rate (2025 Interim) | 100% | N/A | N/A | [Other Businesses](index=3&type=section&id=2.5%20Other%20Businesses) Other businesses include fund and securities investments, with the securities portfolio generating income and the fund portfolio incurring a fair value loss | Metric | June 30, 2025 (HKD million) | December 31, 2024 (HKD million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Securities Investment Portfolio | 138 | 122 | 13.1 | | Securities Investment Income (2025 Interim) | 10 | 15 (2024 Interim) | -33.3 | | Fund Investment Portfolio Carrying Value | 453 | 458 | -1.1 | | Fund Investment Fair Value Loss (2025 Interim) | 8 | 12 (2024 Interim) | -33.3 | [Business Outlook](index=2&type=section&id=2.6%20Business%20Outlook) The Group expects moderate global economic growth in H2 2025, facing challenges from economic uncertainties and real estate market pressures, and will maintain prudent capital management - Global economic growth is expected to be moderate, but recovery is constrained by sticky core inflation, geopolitical tensions, and remote work trends[5](index=5&type=chunk) - The US Federal Reserve has initiated a rate-cutting cycle, but monetary policy adjustments may slow, and property valuations still face pressure[5](index=5&type=chunk) - The Group will adhere to a **prudent capital management strategy**, strengthen cash flow control, and leverage its localized team's experience to flexibly respond to market changes[5](index=5&type=chunk) III. [Financial Review](index=4&type=section&id=III.%20Financial%20Review) [Revenue Analysis](index=4&type=section&id=3.1%20Revenue%20Analysis) The Group's total revenue for the 2025 interim period was HKD 412 million, a 30.9% decrease from HKD 596 million in the prior year, mainly due to reduced property sales from New York development projects Revenue Component Analysis | Revenue Category | 2025 Interim (HKD million) | 2024 Interim (HKD million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Rental Income | 269 | 288 | -6.7 | | Property Leasing Ancillary Services and Management Services Income | 83 | 93 | -10.8 | | Property Sales | 54 | 215 | -74.9 | | Other | 6 | – | N/A | | **Total Revenue** | **412** | **596** | **-30.9** | - The decrease in revenue was primarily due to **reduced property sales from development projects located in New York**[12](index=12&type=chunk) [Operating Expenses](index=4&type=section&id=3.2%20Operating%20Expenses) The Group's operating expenses for the 2025 interim period were HKD 190 million, a 35.8% decrease from HKD 296 million in the prior year, mainly due to lower inventory costs from reduced New York property sales Operating Expense Component Analysis | Expense Category | 2025 Interim (HKD million) | 2024 Interim (HKD million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Repairs, Maintenance and Utilities | 65 | 75 | -13.3 | | Property Insurance and Management Expenses | 23 | 25 | -8.0 | | Real Estate Taxes | 54 | 45 | 20.0 | | Inventory Costs | 41 | 136 | -69.8 | | Other | 7 | 15 | -53.3 | | **Total Operating Expenses** | **190** | **296** | **-35.8** | - The decrease in operating expenses was primarily due to **reduced property sales from development projects located in New York**, leading to lower inventory costs[13](index=13&type=chunk) [Fair Value Changes of Investment Properties](index=5&type=section&id=3.3%20Fair%20Value%20Changes%20of%20Investment%20Properties) In the 2025 interim period, the Group recorded a fair value change loss of HKD 162 million on investment properties, a slight narrowing from HKD 167 million in the prior year, primarily due to a slowdown in the US and Hong Kong commercial property markets | Metric | 2025 Interim (HKD million) | 2024 Interim (HKD million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Fair Value Change Loss of Investment Properties | 162 | 167 | -3.0 | | Decrease in US Property Value | 134 | N/A | N/A | | Decrease in Hong Kong Property Value | 28 | N/A | N/A | - The overall fair value of investment properties decreased by **2%**, primarily due to the **slowdown in the US and Hong Kong commercial property markets**[14](index=14&type=chunk) [Other Income, Gains/ Losses](index=5&type=section&id=3.4%20Other%

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Town Health International Medical Group Limited 康健國際醫療集團有限公司 司） （於開曼群島註冊成立及於百慕達存續之有限公 （股份代 號：3886） (1)有關收購目標集團的溢利保證的最新消息；及 (2)有關二零二四年年報的補充公告 (1) 溢利保證的最新消息 茲提述康健國際醫療集團有限公司（「本公司」，連同其附屬公司「本集團」）日 期為二零二二年七月十一日、二零二二年八月十五日、二零二二年八月二十六 日、二零二四年四月十九日及二零二四年七月二十三日之公告（統稱「該等公 告」），內容有關收購Central Medical Holdings Limited及其附屬公司（「目標集 團」）之全部權益及相關溢利保證。除非另有規定，本公告所用詞彙具有於該等 公告所賦予的相同涵義。 1 本公司謹此通知股東，就截至二零二三年三月三十一日止財政年度溢利保證的 索賠金額對答 ...

Financial Performance - Total revenue for the six months ended June 30, 2025, was RMB 638.8 million, a decrease of 9.1% year-on-year[5]. - Net profit for the same period was RMB 90.2 million, down 14.4% compared to the previous year[5]. - Revenue for the period was RMB 638.8 million, a decrease of 9.1% compared to RMB 702.4 million in the same period of 2024[19]. - Gross profit for the first half of 2025 was RMB 525,219,000, down from RMB 540,560,000 in the previous year, reflecting a gross margin of approximately 82.2%[49]. - The group reported a pre-tax profit of RMB 90,174,000 for the period, compared to RMB 105,348,000 in 2024, reflecting a decrease of about 14.38%[67]. - The group incurred a total tax expense of RMB 14,089,000 for the period, down from RMB 24,485,000 in 2024, a decrease of approximately 42.06%[63]. - The company reported a total comprehensive income of RMB 90,174,000 for the first half of 2025, compared to RMB 105,348,000 in the previous year, reflecting overall performance challenges[49]. Profitability and Margins - Gross profit margin improved to 82.2% from 77.0% year-on-year[4]. - Gross profit decreased by 2.8% to RMB 525.2 million, while gross margin increased from 77.0% to 82.2%, driven by lower raw material costs and a higher sales volume of more profitable products[23]. - Basic and diluted earnings per share for the first half of 2025 were RMB 0.37, down from RMB 0.53 in the same period of 2024[49]. - Basic earnings per share for the six months ended June 30, 2025, was RMB 0.37, down from RMB 0.53 in 2024, a decline of approximately 30.19%[66]. Sales and Market Performance - Sales volume of orthopedic products increased by over 10% year-on-year, with continuous improvement in hospital penetration rates[6]. - Revenue from mainland China was RMB 613,541,000, down from RMB 671,829,000 in the previous year, indicating a decrease of about 8.66%[60]. - Major customers contributing over 10% of total revenue included Customer A with RMB 160,559,000 and Customer B with RMB 29,935,000, totaling RMB 190,494,000, down from RMB 232,946,000 in 2024, a decline of approximately 18.19%[58]. - Sales revenue from goods decreased by 3.6% to RMB 621.8 million, down from RMB 645.2 million, mainly due to a decline in revenue from bone health products[20]. - Pharmaceutical services revenue plummeted by 70.3% to RMB 17.0 million from RMB 57.2 million, attributed to a smaller production volume scheduled for the first half of the year[21]. Research and Development - The product pipeline includes multiple innovative drugs, biosimilars, and biopharmaceutical combination products in the fields of orthopedics, oncology, and hematology[7]. - Research and development costs increased to RMB 49.6 million from RMB 37.3 million, reflecting higher investments in ongoing R&D projects[27]. - Research and development expenses increased to RMB 49,627,000 in the first half of 2025, up from RMB 37,288,000 in 2024, indicating a focus on innovation[49]. - The company presented findings on GLP-1 targeted diabetes and weight loss drug development at Bio China 2025, showcasing progress in this area[9]. Product Development and Pipeline - The company has submitted the NDA for JY29-2 (Glycopyrrolate Injection) for type 2 diabetes on March 24, 2024, and expects NMPA approval[8]. - JY29-2 (Glycopyrrolate Injection) for obesity has completed patient enrollment by December 2024, continuing clinical research as per the clinical plan[9]. - The company has initiated the development of a long-acting insulin analog JY54-2, which has shown excellent pharmacological activity and safety in cell and animal models[9]. - JY47 (SIRPα monoclonal antibody) has potential for treating metabolic dysfunction-related fatty liver disease (MASH), with plans to apply for this new indication in clinical trials[9]. - JY23 (rhBMP-2) is expected to submit registration data by the first half of 2026, targeting bone repair applications[8]. - JY56 (Emicizumab) is set to submit an IND application in 2026, with a patent expiration date in November 2031[8]. - JY54 and JY54-2 are expected to submit IND applications in Q4 2025 and Q2 2026, respectively[8]. Operational Strategies - The company is focusing on stabilizing existing markets and cultivating new markets to achieve steady annual revenue growth[6]. - Adjustments in sales models from direct sales to commercial distribution were made to strengthen cash flow[5]. - The company aims to fully cover provincial medical insurance catalogs to enhance product competitiveness[6]. - The company is actively pursuing international business expansion strategies centered around core products, with plans to submit market applications in Brazil within the year[14]. - The company aims to strengthen external collaborations through licensing and joint ventures to expand its product pipeline[18]. - The company is committed to improving its marketing network and commercialization team to expand its global business footprint[18]. Human Resources and Governance - As of June 30, 2025, the company has 1,629 employees, focusing on talent development as a core driver for high-quality growth[15]. - The company has applied for three new invention patents and one PCT international patent, enhancing its intellectual property portfolio[13]. - The company's debt-to-asset ratio was 21.7% as of June 30, 2025, compared to 21.1% at the end of 2024[31]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period, and as of June 30, 2025, it holds no treasury shares[39]. - The company has adopted the corporate governance code and has complied with its principles, except for the separation of the roles of Chairman and CEO, which are held by the same individual[40][41]. - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited interim financial information and discussed issues related to internal controls and financial reporting[44]. Future Outlook - The company plans to enhance production capacity for orthopedic products and large molecules, aiming to reduce costs through increased efficiency[18]. - The company has established a commercialization team for the Glycopyrrolate biosimilar, focusing on recruitment, training, and market education activities[9]. - The company expresses gratitude to shareholders, management, employees, business partners, and customers for their support and contributions, reflecting a strong stakeholder relationship[76].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Summary of Key Financial Data](index=1&type=section&id=Summary%20of%20Key%20Financial%20Data) During the reporting period, the company's revenue decreased by 13% year-on-year, loss attributable to equity holders expanded by 37%, and the board did not recommend an interim dividend - The Directors do not recommend the payment of an **interim dividend** for the six months ended June 30, 2025[3](index=3&type=chunk) Key Financial Data for the Six Months Ended June 30 (RMB thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 272,278 | 313,802 | | Loss for the period attributable to equity holders of the Company | (25,790) | (18,786) | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue was **RMB 272,278 thousand**, a 13.23% year-on-year decrease, with loss attributable to equity holders of **RMB (25,790) thousand**, expanding by 37.28%, and basic and diluted loss per share of **RMB (0.049)** Summary of Condensed Consolidated Statement of Comprehensive Income (RMB thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 272,278 | 313,802 | | Cost of sales | (259,127) | (297,815) | | Gross profit | 13,151 | 15,987 | | Other income | 3,282 | 5,507 | | Other gains, net | 496 | 1,844 | | Selling expenses | (4,396) | (4,194) | | Administrative expenses | (32,018) | (33,716) | | Operating loss | (19,485) | (14,572) | | Finance costs, net | (5,754) | (2,870) | | Loss before income tax | (25,239) | (17,442) | | Income tax expense | (748) | (1,134) | | Loss and total comprehensive loss for the period | (25,987) | (18,576) | | Loss attributable to equity holders of the Company | (25,790) | (18,786) | | Loss per share (RMB) | (0.049) | (0.035) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were **RMB 1,229,695 thousand**, total liabilities **RMB 672,343 thousand**, and total equity **RMB 557,352 thousand**, with slight decreases in non-current assets, current assets, and current liabilities, but an increase in non-current liabilities Summary of Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 938,140 | 950,965 | | Total current assets | 291,555 | 298,793 | | **Total assets** | **1,229,695** | **1,249,758** | | **Equity** | | | | Equity attributable to equity holders of the Company | 557,656 | 583,446 | | Non-controlling interests | (304) | (107) | | **Total equity** | **557,352** | **583,339** | | **Liabilities** | | | | Total non-current liabilities | 87,866 | 61,868 | | Total current liabilities | 584,477 | 604,551 | | **Total liabilities** | **672,343** | **666,419** | | **Total equity and liabilities** | **1,229,695** | **1,249,758** | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to equity holders decreased from **RMB 583,446 thousand** at the beginning of the year to **RMB 557,656 thousand**, primarily due to a loss of **RMB 25,790 thousand** during the period Summary of Condensed Consolidated Statement of Changes in Equity (RMB thousands) | Item | Balance at January 1, 2025 | Loss for the period | Other | Balance at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Attributable to equity holders of the Company | 583,446 | (25,790) | – | 557,656 | | Non-controlling interests | (107) | (197) | – | (304) | | **Total equity** | **583,339** | **(25,987)** | **–** | **557,352** | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash generated from operating activities was **RMB 15,363 thousand**, a significant improvement from a net outflow in the prior year, with net cash used in investing activities of **RMB (1,130) thousand** and financing activities of **RMB (13,816) thousand**, resulting in a net increase in cash and cash equivalents of **RMB 417 thousand** Summary of Condensed Consolidated Statement of Cash Flows (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 15,363 | (26,585) | | Net cash used in investing activities | (1,130) | (42,820) | | Net cash (used in)/generated from financing activities | (13,816) | 40,892 | | Net increase/(decrease) in cash and cash equivalents | 417 | (28,513) | | Cash and cash equivalents at June 30 | 58,581 | 62,029 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1 General Information](index=7&type=section&id=1%20General%20Information) Changmao Biochemical Engineering Company Limited primarily engages in the production and sale of organic acid products, with its H shares listed on the Main Board of the HKEX on June 28, 2013, and its registered office in Changzhou, Jiangsu Province, China - The company's principal activities are the production and sale of **organic acid products**[10](index=10&type=chunk) - H shares were transferred to the Main Board of the HKEX on **June 28, 2013**[10](index=10&type=chunk) [2 Basis of Preparation and Accounting Policies](index=7&type=section&id=2%20Basis%20of%20Preparation%20and%20Accounting%20Policies) Interim financial information is prepared in accordance with HKAS 34, with accounting policies consistent with the 2024 annual financial statements, despite significant going concern uncertainties due to net loss, net current liabilities, and a subsidiary's non-compliance with bank loan covenants, for which management has developed mitigation plans [Going Concern Basis](index=7&type=section&id=Going%20Concern%20Basis) For the six months ended June 30, 2025, the Group reported a net loss of **RMB 25,987 thousand** and net current liabilities of **RMB 292,922 thousand**, with a subsidiary's non-compliance with loan covenants leading to **RMB 168,860 thousand** of non-current loans being reclassified as current liabilities, creating significant going concern uncertainty, which management addresses through bank negotiations, unused financing, cost reduction, and capital expenditure control - The Group recorded a net loss of **RMB 25,987 thousand** and net current liabilities of **RMB 292,922 thousand**[14](index=14&type=chunk) - A subsidiary's failure to meet asset-liability ratio covenants for project loans resulted in **RMB 168,860 thousand** of non-current loans being reclassified as current liabilities[14](index=14&type=chunk) - Management has developed plans including negotiating with banks, utilizing **RMB 112,362 thousand** in unutilized bank facilities, consolidating production lines, reducing costs, and controlling capital expenditures to mitigate liquidity pressure and support going concern[15](index=15&type=chunk)[16](index=16&type=chunk) [2.1 New and Revised Standards](index=9&type=section&id=2.1%20New%20and%20Revised%20Standards) New Hong Kong Financial Reporting Standards effective from July 1, 2025, have no significant impact on the Group's accounting policies - New Hong Kong Financial Reporting Standards have no significant impact on the Group's interim financial statements[18](index=18&type=chunk) [3 Estimates](index=9&type=section&id=3%20Estimates) Preparation of interim financial information involves management's judgments, estimates, and assumptions regarding accounting policies and reported amounts, with key uncertainties consistent with the 2024 annual financial statements, primarily concerning bank covenant compliance, financing, cost control, and profitability enhancement plans - Key estimation uncertainties include banks' discretionary assessment of financial covenants, successful acquisition of new financing, implementation of cost reduction plans, and control over administrative and capital expenditures[19](index=19&type=chunk)[20](index=20&type=chunk) [4 Financial Risk Management](index=10&type=section&id=4%20Financial%20Risk%20Management) The Group faces foreign exchange, credit, liquidity, and cash flow and fair value interest rate risks, with no significant changes in risk management policies since year-end - The Group faces foreign exchange, credit, liquidity, and interest rate risks, with no significant changes in risk management policies[21](index=21&type=chunk)[22](index=22&type=chunk) [5 Revenue and Segment Information](index=10&type=section&id=5%20Revenue%20and%20Segment%20Information) The Group primarily engages in the production and sale of organic acid products, with management identifying only one operating segment; for the six months ended June 30, 2025, Mainland China remained the main revenue source, but revenue decreased across all regions - The Group presents only one operating segment, primarily engaged in the production and sale of **organic acid products**[23](index=23&type=chunk) Sales Revenue by Geographical Region (RMB thousands) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Mainland China | 196,143 | 222,042 | | Asia Pacific | 34,287 | 41,472 | | Europe | 30,713 | 34,902 | | Americas | 7,173 | 9,650 | | Other regions | 3,962 | 5,736 | | **Total** | **272,278** | **313,802** | - All non-current assets, excluding deferred tax assets, are located in **Mainland China**[25](index=25&type=chunk) [6 Other Income](index=11&type=section&id=6%20Other%20Income) For the six months ended June 30, 2025, total other income decreased to **RMB 3,282 thousand** from **RMB 5,507 thousand** in the prior period, primarily due to a significant reduction in income from sales of scrap materials Other Income (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Sales of scrap materials | 4 | 1,704 | | Government grants | 2,472 | 2,965 | | Others | 806 | 838 | | **Total** | **3,282** | **5,507** | [7 Other Gains, Net](index=11&type=section&id=7%20Other%20Gains%2C%20Net) For the six months ended June 30, 2025, net other gains significantly decreased to **RMB 496 thousand** from **RMB 1,844 thousand** in the prior period, primarily due to lower net exchange gains Other Gains, Net (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Fair value gains on financial assets | 10 | 32 | | Net exchange gains | 575 | 1,812 | | Others | (89) | – | | **Total** | **496** | **1,844** | [8 Finance Costs, Net](index=11&type=section&id=8%20Finance%20Costs%2C%20Net) For the six months ended June 30, 2025, net finance costs significantly increased to **RMB 5,754 thousand** from **RMB 2,870 thousand** in the prior period, primarily due to reduced capitalization of interest on qualifying assets, leading to higher bank loan interest expenses Finance Costs, Net (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank loans | 9,903 | 10,678 | | Interest on lease liabilities | 22 | 46 | | Less: Capitalized for qualifying assets | (3,882) | (7,319) | | Interest income from bank deposits | (289) | (535) | | **Net finance costs** | **5,754** | **2,870** | [9 Loss Before Income Tax](index=12&type=section&id=9%20Loss%20Before%20Income%20Tax) For the six months ended June 30, 2025, loss before income tax expanded to **RMB 25,239 thousand** from **RMB 17,442 thousand** in the prior period, with depreciation expenses increasing from **RMB 20,508 thousand** to **RMB 23,153 thousand** Components of Loss Before Income Tax (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Amortisation of patent rights | 66 | 66 | | Amortisation of right-of-use assets | 1,526 | 1,526 | | Depreciation | 23,153 | 20,508 | [10 Income Tax Expense](index=12&type=section&id=10%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense decreased to **RMB 748 thousand** from **RMB 1,134 thousand** in the prior period, with the company benefiting from a **15% preferential income tax rate** as a high-tech enterprise, while other subsidiaries are subject to **25%**, and the R&D super deduction policy remains applicable - The company enjoys a **15% preferential income tax rate** as a high-tech enterprise, while other subsidiaries are subject to **25%**[28](index=28&type=chunk) Income Tax Expense (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current income tax | 640 | 632 | | Deferred income tax | 108 | 502 | | **Total** | **748** | **1,134** | - The **200% R&D super deduction policy** continues to provide tax benefits to the company[30](index=30&type=chunk) [11 Loss Per Share](index=13&type=section&id=11%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share expanded to **RMB (0.049)** from **RMB (0.035)** in the prior period, primarily due to an increase in loss attributable to equity holders Loss Per Share (RMB) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to equity holders of the Company | (25,790,000) | (18,786,000) | | Weighted average number of ordinary shares in issue | 529,700,000 | 529,700,000 | | **Loss per share** | **(0.049)** | **(0.035)** | - There were no dilutive shares during the period[32](index=32&type=chunk) [12 Dividends](index=14&type=section&id=12%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Directors do not recommend the payment of an **interim dividend** for the six months ended June 30, 2025[33](index=33&type=chunk) [13 Patent Rights](index=14&type=section&id=13%20Patent%20Rights) As of June 30, 2025, the net book value of patent rights decreased to **RMB 440 thousand** from **RMB 506 thousand** at the beginning of the year, primarily due to amortization of **RMB 66 thousand** Net Book Value of Patent Rights (RMB thousands) | Item | Amount | | :--- | :--- | | Net book value at January 1, 2025 | 506 | | Amortisation | (66) | | **Net book value at June 30, 2025** | **440** | [14 Capital Expenditure](index=14&type=section&id=14%20Capital%20Expenditure) As of June 30, 2025, the net book value of property, plant, and equipment was **RMB 580,197 thousand**, and construction in progress was **RMB 241,614 thousand**, with Dalian land use rights pledged as collateral for bank financing Net Book Value of Capital Expenditure (RMB thousands) | Item | June 30, 2025 | | :--- | :--- | | Property, plant and equipment | 580,197 | | Construction in progress | 241,614 | | Right-of-use assets | 88,833 | | Investment properties | 3,245 | - The land use rights of Changmao Dalian were pledged as collateral for bank financing for the Dalian factory[36](index=36&type=chunk) [15 Trade and Bills Receivables](index=15&type=section&id=15%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables increased to **RMB 68,600 thousand** from **RMB 63,001 thousand** as of December 31, 2024, with trade receivables having credit terms ranging from **30 to 210 days** Trade and Bills Receivables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 47,898 | 43,010 | | Bills receivables | 20,702 | 19,991 | | **Total** | **68,600** | **63,001** | - Trade receivables have credit terms ranging from **30 to 210 days**, and bills receivables generally mature within **six months**[37](index=37&type=chunk) [16 Pledged Bank Balances and Cash and Bank Balances](index=16&type=section&id=16%20Pledged%20Bank%20Balances%20and%20Cash%20and%20Bank%20Balances) As of June 30, 2025, total cash and bank balances were **RMB 62,405 thousand**, with **RMB 55,230 thousand** denominated in RMB, and pledged bank balances increased to **RMB 3,824 thousand**; the remittance of RMB funds is subject to China's foreign exchange controls Cash and Bank Balances (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 58,581 | 57,963 | | Pledged bank balances | 3,824 | 1,108 | | **Total** | **62,405** | **59,071** | - Balances denominated in RMB are subject to China's government foreign exchange controls for conversion into foreign currencies and remittance[38](index=38&type=chunk) [17 Share Capital](index=16&type=section&id=17%20Share%20Capital) As of June 30, 2025, the company's total issued share capital was **529,700,000 shares**, comprising domestic shares, promoter foreign shares, and H shares, with a total book value of **RMB 52,970 thousand**; H shares enjoy equal rights with domestic and promoter foreign shares, but dividends are paid in HKD Issued Share Capital (RMB thousands) | Number of shares | Book value | | :--- | :--- | | 529,700,000 | 52,970 | - The company's share capital comprises **2,500,000 domestic shares**, **343,500,000 promoter foreign shares**, and **183,700,000 H shares**[39](index=39&type=chunk) [18 Reserves](index=17&type=section&id=18%20Reserves) As of June 30, 2025, the company's total reserves decreased to **RMB 504,686 thousand** from **RMB 530,476 thousand** at the beginning of the year, primarily due to a loss of **RMB 25,790 thousand** during the period Movement in Reserves (RMB thousands) | Item | January 1, 2025 | Loss for the period | Other | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Share premium | 102,559 | – | – | 102,559 | | Statutory surplus reserve | 87,233 | – | – | 87,233 | | Capital reserve | 461 | – | – | 461 | | Translation reserve | 7 | – | – | 7 | | Special reserve | 1,164 | – | 1,360 | 2,524 | | Retained profits | 339,052 | (25,790) | (1,360) | 311,902 | | **Total** | **530,476** | **(25,790)** | **–** | **504,686** | [19 Bank Loans](index=17&type=section&id=19%20Bank%20Loans) As of June 30, 2025, the Group's total outstanding bank loans were **RMB 524,361 thousand**, with **RMB 487,961 thousand** classified as current bank loans; a subsidiary, Changmao Dalian, failed to meet its asset-liability ratio covenant, leading to **RMB 168,860 thousand** of non-current secured bank loans being reclassified as current liabilities, though management believes banks have discretion not to deem this a non-compliance Total Bank Loans (RMB thousands) | Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Secured bank loans | 245,020 | 282,634 | | Unsecured bank loans | 279,341 | 241,906 | | **Total** | **524,361** | **524,540** | - Subsidiary Changmao Dalian's failure to meet its asset-liability ratio covenant resulted in **RMB 168,860 thousand** of non-current secured bank loans being reclassified as current liabilities[43](index=43&type=chunk) - Management believes banks have discretion in calculating the asset-liability ratio and may not deem Changmao Dalian non-compliant, and internal loans can be converted to capital if necessary to meet requirements[43](index=43&type=chunk) - The effective interest rate for secured bank loans is **4.4%**, and for unsecured bank loans is **3.1%**[44](index=44&type=chunk) [20 Trade and Bills Payables](index=19&type=section&id=20%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables significantly increased to **RMB 49,724 thousand** from **RMB 28,700 thousand** as of December 31, 2024, with trade payables primarily aged between **zero and six months** Trade and Bills Payables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 30,604 | 23,158 | | Bills payables | 19,120 | 5,542 | | **Total** | **49,724** | **28,700** | - Trade payables are primarily aged between **zero and six months**, and bills payables generally mature within **six months**[48](index=48&type=chunk) [21 Contingent Liabilities](index=19&type=section&id=21%20Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group has no significant contingent liabilities[46](index=46&type=chunk) [22 Commitments](index=19&type=section&id=22%20Commitments) As of June 30, 2025, the Group's capital commitments for property, plant, and equipment increased to **RMB 47,133 thousand** from **RMB 34,719 thousand** as of December 31, 2024 Capital Commitments (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted but not provided for | 47,133 | 34,719 | [Business Review and Outlook](index=20&type=section&id=Business%20Review%20and%20Outlook) [Interim Results](index=20&type=section&id=Interim%20Results) For the six months ended June 30, 2025, the Group's sales revenue decreased by **13%** year-on-year to **RMB 272,278 thousand**, and net loss attributable to equity holders expanded by **37%** to **RMB 25,790 thousand**, primarily due to geopolitical conflicts, tariff policy uncertainties, weaker-than-expected maleic anhydride downstream demand, and increased interest expenses - Sales revenue decreased by **13%** year-on-year to **RMB 272,278 thousand**[49](index=49&type=chunk) - Net loss attributable to equity holders expanded by **37%** to **RMB 25,790 thousand**[49](index=49&type=chunk) - Performance decline was primarily impacted by geopolitical conflicts, tariff policy uncertainties, weaker-than-expected maleic anhydride downstream demand, and increased interest expenses[49](index=49&type=chunk) [Business Review](index=20&type=section&id=Business%20Review) In the first half, the Group maintained balanced production and sales, with Changzhou factory's production and sales increasing but gross margin declining, while Dalian factory's performance lagged; some Lianyungang production lines have relocated to Dalian and commenced operation, and the Group focuses on product quality, industrial upgrading, system development (smart factory certification), factory management, safety, environmental protection, and energy saving - Changzhou factory's production and sales increased but gross margin declined, while Dalian factory's production and sales lagged behind the prior period[50](index=50&type=chunk) - Some Lianyungang production lines have been relocated to Dalian and commenced operation, positively impacting operations[50](index=50&type=chunk) - The Group obtained Jiangsu Province Advanced Smart Factory certification and 'Jiangsu Quality Product' certification, and continuously enhances safety and environmental protection standards[50](index=50&type=chunk) [Research and Development](index=21&type=section&id=Research%20and%20Development) In the first half, the Group steadily advanced multiple R&D projects, covering new product development and existing product process improvements; the Pharmaceutical Division has laid out **12 API and pharmaceutical excipient varieties**, with **7 already in A-status** for direct supply to pharmaceutical companies, and one new pharmaceutical excipient undergoing quality stability assessment, expected to be submitted for approval within the year - R&D projects steadily advanced in the first half, covering new product development and existing product process improvements[51](index=51&type=chunk) - The Pharmaceutical Division has laid out **12 API and pharmaceutical excipient varieties**, with **7 already in A-status**, and one new pharmaceutical excipient is expected to be submitted for approval within the year[51](index=51&type=chunk) [Prospects and Outlook](index=21&type=section&id=Prospects%20and%20Outlook) The Group will continue to prioritize technological innovation and economic efficiency, focusing on customer needs to maintain industry leadership through transformation, technological innovation, enhanced safety and environmental standards, and market expansion, extending its product chain into high-value-added areas such as new materials and APIs [1. Continue Transformation and Upgrading, Promote New Base Business Development](index=21&type=section&id=1.%20Continue%20Transformation%20and%20Upgrading%2C%20Promote%20New%20Base%20Business%20Development) The Group will fully support the development of the Dalian factory, which has commenced production for Phase II and relocated Lianyungang products, serving as the primary chemical product manufacturing base to extend the product chain into new materials, APIs, and novel feed additives, creating new economic benefits - The Dalian factory will serve as the Group's main chemical product manufacturing base, with Phase II and relocated Lianyungang products already in production[52](index=52&type=chunk) - Future plans include extending the product chain into new materials, APIs, and novel feed additives[52](index=52&type=chunk) [2. Accelerate Technological Innovation, Promote Product Upgrading](index=22&type=section&id=2.%20Accelerate%20Technological%20Innovation%2C%20Promote%20Product%20Upgrading) The Group will continuously increase R&D investment, integrate resources, attract talent, and focus on key breakthroughs to enhance existing product competitiveness and accelerate the development of safe, environmentally friendly, and market-competitive new products, seeking new sources of profit - Continuously increase R&D investment, integrate resources, attract talent, and focus on key breakthroughs to enhance existing product competitiveness[53](index=53&type=chunk) - Accelerate the development of safe, environmentally friendly, and market-competitive new products, promoting product chain renewal and upgrading[53](index=53&type=chunk) [3. Enhance Safety and Environmental Protection, Strengthen Risk Control](index=22&type=section&id=3.%20Enhance%20Safety%20and%20Environmental%20Protection%2C%20Strengthen%20Risk%20Control) The Group will continue to strengthen safety risk control, improve the safe production environment, promote cleaner production, implement pollution prevention, and strive to enhance performance in energy and resource consumption, carbon neutrality, and pollutant emissions, building a resource-saving and environmentally friendly enterprise - Strengthen safety risk control, improve the safe production environment, promote cleaner production, and implement pollution prevention[54](index=54&type=chunk) - Committed to improving performance in energy and resource consumption, carbon neutrality, and pollutant emissions, building a resource-saving and environmentally friendly enterprise[54](index=54&type=chunk) [4. Focus on Market Expansion, Develop High-End Customers](index=22&type=section&id=4.%20Focus%20on%20Market%20Expansion%2C%20Develop%20High-End%20Customers) The sales team will focus on developing key accounts and end-users, enhancing Changmao's brand recognition and added value through improved product quality and service to avoid low-price competition, while also expanding international markets and collaborating with major international clients on new products and technologies to boost global influence - The sales team will develop key accounts and end-users, enhancing brand recognition and added value through improved product quality and service[55](index=55&type=chunk) - Expand international markets and collaborate with major international clients on new products and technologies to enhance global influence[55](index=55&type=chunk) [Outlook Summary](index=23&type=section&id=Outlook%20Summary) The Group will continue to focus on food additives, enhance existing product competitiveness, accelerate new product launches, actively explore new markets and application areas, leverage R&D and manufacturing advantages, extend the product chain, and grow stronger - Continue to focus on **food additives**, enhance existing product competitiveness, and accelerate new product launches[56](index=56&type=chunk) - Develop new functional food additives, new materials, APIs, and other products to extend the product chain[56](index=56&type=chunk) [Review of Financial Statements](index=23&type=section&id=Review%20of%20Financial%20Statements) The Audit Committee, together with the Directors, has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025 - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements[57](index=57&type=chunk) [Dividends](index=23&type=section&id=Dividends) The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an **interim dividend**[58](index=58&type=chunk) [Segment Information](index=23&type=section&id=Segment%20Information) For the six months ended June 30, 2025, export sales accounted for approximately **28%** of the Group's revenue (29% in the prior period), while domestic sales accounted for approximately **72%** (71% in the prior period) - Export sales accounted for approximately **28%** of revenue (a 1% year-on-year decrease), while domestic sales accounted for approximately **72%** (a 1% year-on-year increase)[59](index=59&type=chunk) [Exchange Rate Fluctuation Risk and Related Hedging](index=23&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Related%20Hedging) Operating primarily in China, the Group faces foreign currency risk mainly denominated in USD; management regularly monitors and considers hedging significant foreign currency exposures, utilizing forward foreign exchange agreements to hedge some USD risk during the period - The Group primarily faces **USD foreign currency risk**, which management regularly monitors and partially hedges using forward foreign exchange agreements[60](index=60&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total outstanding bank loans were **RMB 524,361 thousand**, with capital commitments of **RMB 47,133 thousand** primarily for the new Dalian factory and production line upgrades, and a debt-to-asset ratio of **54.7%** - Total outstanding bank loans amounted to **RMB 524,361 thousand**[61](index=61&type=chunk) - Capital commitments were **RMB 47,133 thousand**, primarily for the new Dalian factory and production line upgrades[61](index=61&type=chunk) - The debt-to-asset ratio was **54.7%** (53.3% as of December 31, 2024)[62](index=62&type=chunk) - Cash and cash equivalents at bank totaled approximately **RMB 58,581 thousand**[62](index=62&type=chunk) [Employees](index=24&type=section&id=Employees) As of June 30, 2025, the Group had **533 employees**, with total staff costs of **RMB 40,605 thousand**, a year-on-year decrease primarily due to reduced headcount and structural changes; the company's employee incentive plan had a target profit of **RMB 40,000 thousand**, which was not met this period - Total employees numbered **533** (a decrease of **114** year-on-year), with total staff costs of **RMB 40,605 thousand** (a **4.2%** year-on-year decrease)[63](index=63&type=chunk) - The decrease in staff costs was primarily due to a reduction in headcount and structural changes[63](index=63&type=chunk) - The company has an employee incentive plan with a target profit of **RMB 40,000 thousand**, which was not achieved this period, resulting in no profit-based incentive bonuses[63](index=63&type=chunk)[64](index=64&type=chunk) [Significant Investments](index=25&type=section&id=Significant%20Investments) The Group had no significant investments during the reporting period, with capital commitments primarily allocated to capital expenditures for the Dalian factory - The Group has no significant investments or capital asset plans, with capital commitments primarily for capital expenditures at the Dalian factory[65](index=65&type=chunk) [Changes in the Group's Structure During the Period](index=25&type=section&id=Changes%20in%20the%20Group's%20Structure%20During%20the%20Period) For the six months ended June 30, 2025, the Group did not acquire or dispose of any significant subsidiaries or associated companies - There were no significant acquisitions or disposals of subsidiaries or associated companies during the period[66](index=66&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group has no significant contingent liabilities[67](index=67&type=chunk) [Going Concern](index=25&type=section&id=Going%20Concern) The Group faces significant going concern uncertainties due to net loss, net current liabilities, and a subsidiary's non-compliance with bank loan covenants, leading to reclassification of some non-current loans as current liabilities; the Board has reviewed management's cash flow forecasts and mitigation plans, believing the Group will have sufficient working capital, but the realization of these plans remains subject to significant uncertainties - The Group recorded a net loss of **RMB 25,987 thousand**, net current liabilities of **RMB 292,922 thousand**, total bank loans of **RMB 524,361 thousand**, of which **RMB 487,961 thousand** were current bank loans[68](index=68&type=chunk) - A subsidiary's failure to meet bank loan financial covenants resulted in **RMB 168,860 thousand** of non-current loans being reclassified as current liabilities, constituting a significant going concern uncertainty[68](index=68&type=chunk) - The Board has reviewed management's cash flow forecasts and mitigation plans, believing the Group will have sufficient working capital, but the realization of these plans remains subject to significant uncertainties[69](index=69&type=chunk) [Corporate Governance and Shareholder Information](index=26&type=section&id=Corporate%20Governance%20and%20Shareholder%20Information) [Directors', Supervisors' or Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or its Specified Corporations or Any Other Associated Corporations](index=26&type=section&id=Directors'%2C%20Supervisors'%20or%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20its%20Specified%20Corporations%20or%20Any%20Other%20Associated%20Corporations) As of June 30, 2025, Director Mr. Rui Xinsheng and his spouse Ms. Leng Yixin held significant long positions in domestic shares, foreign shares, and H shares; Mr. Yu Xiaoping and his spouse also held interests in foreign shares and H shares, with other directors and supervisors holding partial interests Directors' Long Positions in Shares | Director | Type of interest | Domestic shares (thousand shares) | Foreign shares (thousand shares) | H shares (thousand shares) | | :--- | :--- | :--- | :--- | :--- | | Mr. Rui Xinsheng | Beneficial owner, spouse, controlled corporation | 2,500 | 135,000 | 12,236 | | Ms. Leng Yixin | Beneficial owner, spouse, controlled corporation | 2,500 | 135,000 | 12,236 | | Mr. Yu Xiaoping | Spouse, controlled corporation | – | 66,000 | 3,774 | - Mr. Rui Xinsheng and Ms. Leng Yixin hold significant interests in domestic shares, foreign shares, and H shares through beneficial ownership, spouse's interests, and controlled corporations[72](index=72&type=chunk)[74](index=74&type=chunk) [Persons and Substantial Shareholders Required to Disclose Interests or Short Positions Under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance](index=29&type=section&id=Persons%20and%20Substantial%20Shareholders%20Required%20to%20Disclose%20Interests%20or%20Short%20Positions%20Under%20Divisions%202%20and%203%20of%20Part%20XV%20of%20the%20Securities%20and%20Futures%20Ordinance) As of June 30, 2025, Hong Kong Xinsheng Venture Capital Co., Ltd., Hong Kong Biochemical High-Tech Investment Co., Ltd., Zaowu Co., Ltd., Hong Kong Kehai Venture Capital Co., Ltd., and their associated companies were substantial shareholders of the Company, holding significant interests in foreign shares; Ms. Lin Mao (spouse of Mr. Yu Xiaoping) also held interests in H shares Substantial Shareholders' Long Positions in Shares | Shareholder Name | Type of interest | Foreign shares (thousand shares) | H shares (thousand shares) | | :--- | :--- | :--- | :--- | | Hong Kong Xinsheng Venture Capital Co., Ltd. | Beneficial owner | 135,000 | – | | Hong Kong Biochemical High-Tech Investment Co., Ltd. | Beneficial owner | 67,500 | – | | Zaowu Co., Ltd. | Beneficial owner | 66,000 | – | | Ms. Lin Mao | Spouse, controlled corporation, beneficial owner | 66,000 | 3,774 | | Hong Kong Kehai Venture Capital Co., Ltd. | Beneficial owner | 62,500 | – | | Shanghai Science and Technology Venture Capital Co., Ltd. | Controlled corporation | 62,500 | – | - Hong Kong Xinsheng Venture Capital Co., Ltd. is the largest foreign share shareholder, holding **135,000,000 shares**, representing **39.30%**[75](index=75&type=chunk) [Interests of Directors, Supervisors and Chief Executive to Subscribe for Shares or Debentures](index=31&type=section&id=Interests%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executive%20to%20Subscribe%20for%20Shares%20or%20Debentures) Neither the Company, its subsidiaries, nor any associated corporations entered into any arrangements during the year enabling directors, supervisors, chief executive, or their associates to acquire interests in shares or debentures of the Company or its associated corporations - During the current year, the company had no arrangements enabling directors, supervisors, chief executive, or their associates to hold interests in the company's shares or debentures[78](index=78&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[79](index=79&type=chunk) [Share Capital Structure](index=31&type=section&id=Share%20Capital%20Structure) As of June 30, 2025, the Company's total issued shares were **529,700,000**, comprising H shares, domestic shares, and foreign shares; foreign shareholders enjoy the same rights and obligations as domestic shareholders, including receiving foreign currency dividends, participating in residual asset distribution, and, with approval, converting to overseas listed foreign shares Issued Share Classes and Quantities | Share Class | Number of Shares | | :--- | :--- | | H shares | 183,700,000 | | Domestic shares | 2,500,000 | | Foreign shares | 343,500,000 | | **Total** | **529,700,000** | - Foreign shareholders enjoy the same rights and obligations as domestic shareholders, including receiving foreign currency dividends, participating in residual asset distribution, and, with approval, converting to overseas listed foreign shares[82](index=82&type=chunk)[83](index=83&type=chunk)[88](index=88&type=chunk) [Compliance with Code Provisions of the Corporate Governance Code](index=33&type=section&id=Compliance%20with%20Code%20Provisions%20of%20the%20Corporate%20Governance%20Code) For the six months ended June 30, 2025, the Company has consistently complied with the code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules - The company complies with the Corporate Governance Code in Appendix C1 Part 2 of the Listing Rules[84](index=84&type=chunk) [Code of Conduct for Directors' Securities Transactions](index=33&type=section&id=Code%20of%20Conduct%20for%20Directors'%20Securities%20Transactions) The Company has adopted the Standard Code as its code of conduct for directors' securities transactions and found no instances of non-compliance during the reporting period - The company has adopted the Standard Code as its code of conduct for directors' securities transactions, with no non-compliance found during the reporting period[85](index=85&type=chunk) [Glossary](index=34&type=section&id=Glossary) [Glossary](index=34&type=section&id=Glossary) This section provides definitions of key terms used in the report to aid reader comprehension of the financial report content

[Performance Summary](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) This section provides an overview of the company's financial performance and defines key financial terms for clarity [Overview of Financial Performance](index=1&type=section&id=2.1%20%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E6%A6%82%E8%A7%88) The company achieved a **3.1%** revenue growth to RMB **18,137.5** million and a **10.8%** core net profit increase to RMB **1,321.1** million, driven by stable recurring business Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | YoY Growth Rate (%) | | :--- | :--- | :--- | | Revenue | 18,137.5 | 3.1 | | Community Space Residential Consumption Services Revenue | 11,325.0 | 11.8 | | Commercial and Urban Space Integrated Services Revenue | 5,748.7 | -5.2 | | AIoT and BPaaS Solutions Services Revenue | 1,063.8 | -23.6 | | Recurring Business Revenue | 16,308.5 | 9.5 | | Gross Profit | 2,492.9 | 3.8 | | Administrative Expenses | -77.4 (decrease) | -8.0 | | Profit | 837.8 | 5.4 | | Core Net Profit | 1,321.1 | 10.8 | | Earnings Per Share (RMB) | 0.68 | - | | Interim Dividend (RMB million) | 1,100.0 | - | - Recurring business revenue accounted for **89.9%**, an increase of **5.2** percentage points year-on-year, with a gross profit margin of **12.9%**, largely stable year-on-year, indicating continuous business structure optimization and stability[2](index=2&type=chunk) - The Board recommended an interim dividend totaling RMB **1,100.0** million for the six months ended June **30**, **2025**, with a dividend per share of RMB **0.951** (tax inclusive)[3](index=3&type=chunk) [Key Definitions](index=1&type=section&id=2.2%20%E9%97%9C%E9%8D%B5%E5%AE%9A%E7%BE%A9) Key definitions for recurring business and core net profit are provided to clarify financial reporting terms - Recurring business refers to residential property management services within community space residential consumption services, property and facility management services within commercial and urban space integrated services, and BPaaS solution services within AIoT and BPaaS solution services[3](index=3&type=chunk) - Core net profit is the profit for the period generated from operating business activities, after excluding amortization of intangible asset customer relationships from historical acquisitions, non-recurring items, and related income tax impacts[4](index=4&type=chunk) [Financial Data](index=3&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) This section presents the interim condensed consolidated financial statements, including profit or loss, comprehensive income, and financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=3&type=section&id=3.1%20%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 the six months ended June **30**, **2025**, revenue grew **3.1%**, gross profit **3.8%**, and profit for the period **5.4%**, despite a significant increase in net impairment losses on financial assets Interim Condensed Consolidated Statement of Profit or Loss Summary (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (Restated) (RMB thousand) | | :--- | :--- | :--- | | Revenue | 18,137,457 | 17,589,934 | | Cost of Sales | (15,644,584) | (15,188,800) | | Gross Profit | 2,492,873 | 2,401,134 | | Other Income and Gains, Net | 63,204 | 85,957 | | Selling and Distribution Expenses | (298,494) | (266,708) | | Administrative Expenses | (885,774) | (963,148) | | Net Impairment Losses on Financial Assets | (268,022) | (152,262) | | Finance Costs | (15,546) | (10,491) | | Share of Profits and Losses of Joint Ventures and Associates | 12,367 | (16,834) | | Profit Before Tax | 1,100,608 | 1,077,648 | | Income Tax Expense | (262,830) | (282,506) | | Profit for the Period | 837,778 | 795,142 | | Profit Attributable to Owners of the Company | 791,992 | 762,418 | | Profit Attributable to Non-controlling Interests | 45,786 | 32,724 | | Earnings Per Share (RMB) | 0.68 | 0.65 | - Administrative expenses decreased year-on-year by **8.0%**, showing the company's effectiveness in cost control[5](index=5&type=chunk) - Net impairment losses on financial assets expanded from **152,262** thousand in **2024** to **268,022** thousand in **2025**, a significant increase[5](index=5&type=chunk) [Interim Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=3.2%20%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Total comprehensive income for the six months ended June **30**, **2025**, decreased to RMB **657.7** million, primarily due to fair value changes in equity investments designated at fair value through other comprehensive income Interim Condensed Consolidated Statement of Comprehensive Income Summary (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (Restated) (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 837,778 | 795,142 | | Other Comprehensive (Loss) / Income, Net | (180,116) | (8,375) | | - Exchange differences on translation of foreign operations | (5,033) | 2,670 | | - Equity investments designated at fair value through other comprehensive income: Fair value changes | (175,083) | (11,045) | | Total Comprehensive Income for the Period | 657,662 | 786,767 | | Total Comprehensive Income Attributable to Owners of the Company | 611,876 | 754,043 | | Total Comprehensive Income Attributable to Non-controlling Interests | 45,786 | 32,724 | - Fair value changes in equity investments designated at fair value through other comprehensive income expanded from a loss of **11,045** thousand in **2024** to a loss of **175,083** thousand in **2025**, which is the main reason for the decrease in comprehensive income[7](index=7&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=5&type=section&id=3.3%20%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June **30**, **2025**, total assets and equity decreased from December **31**, **2024**, with a reduction in net current assets and a notable increase in trade receivables Interim Condensed Consolidated Statement of Financial Position Summary (RMB thousand) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (Restated) (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 15,893,723 | 15,940,275 | | Total Current Assets | 21,864,648 | 23,810,238 | | Total Current Liabilities | 18,546,921 | 19,176,665 | | Net Current Assets | 3,317,727 | 4,633,573 | | Total Assets Less Current Liabilities | 19,211,450 | 20,573,848 | | Total Non-current Liabilities | 2,900,169 | 2,917,853 | | Net Assets | 16,311,281 | 17,655,995 | | Total Equity | 16,311,281 | 17,655,995 | - Trade receivables and retention money increased from **6,544,239** thousand on December **31**, **2024**, to **8,009,312** thousand on June **30**, **2025**, an increase of **22.4%**[8](index=8&type=chunk) - Cash and cash equivalents decreased from **13,452,946** thousand on December **31**, **2024**, to **10,936,954** thousand on June **30**, **2025**, a decrease of approximately RMB **2,516** million[8](index=8&type=chunk) [Notes to the Financial Information](index=7&type=section&id=3.4%20%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) Notes detail the basis of preparation, accounting policy changes, restatement of prior periods, operating segment information, and the composition and changes in income, expenses, assets, and liabilities - Interim condensed consolidated financial information was prepared in accordance with International Accounting Standard **34**, and the revised International Accounting Standard **21** (Lack of Exchangeability) was adopted for the first time, with no material impact on the financial information[10](index=10&type=chunk)[11](index=11&type=chunk) - Comparative data for prior periods has been restated due to the acquisition of **75%** equity in Fuke Industry and **55%** equity in Shanghai Xiangda being treated as business combinations under common control[12](index=12&type=chunk)[13](index=13&type=chunk) Revenue by Product or Service Category (RMB thousand) | Category | 2025 (RMB thousand) | 2024 (Restated) (RMB thousand) | | :--- | :--- | :--- | | Community Space Residential Consumption Services | 11,324,996 | 10,132,985 | | Commercial and Urban Space Integrated Services | 5,748,658 | 6,065,306 | | AIoT and BPaaS Solutions Services | 1,063,803 | 1,391,643 | | **Total Revenue from Contracts with Customers** | **18,137,457** | **17,589,934** | - Impairment provisions for trade receivables and retention money increased from **947,645** thousand on December **31**, **2024**, to **1,093,031** thousand on June **30**, **2025**[30](index=30&type=chunk) [Management Discussion and Analysis](index=17&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) This section reviews industry trends, strategic initiatives, business segment performance, and financial results for the reporting period [Industry Review](index=17&type=section&id=4.1%20%E8%A1%8C%E6%A5%AD%E5%9B%9E%E9%A1%A7) The property services industry is rapidly consolidating into a stock-dominated era, facing value perception mismatches among stakeholders, necessitating quality-price aligned services and flexible pricing models amidst technological advancements and government expectations - The property services industry is accelerating into a stock-dominated era, with TOP**10** enterprises' market share achieving a breakthrough of **28.3%**, and the number of industry participants rapidly concentrating from hundred-thousand-level to ten-thousand-level[35](index=35&type=chunk) - The main industry contradiction lies in the value perception mismatch among property enterprises independent from development increments, homeowners under housing price pressure, and local governments concerned with public sentiment, leading to a "high fees, low service" trust crisis[35](index=35&type=chunk) - The "flexible pricing" model is considered a key to breaking the deadlock, transforming property services from a "cost burden" to a "quality of life investment" through modular menus and transparent pricing[36](index=36&type=chunk) - The government promotes a "good housing, good service" policy framework, emphasizing property services as a hub for grassroots governance, but the market is affected by non-market factors such as civil servants illegally participating in project contract intermediation[37](index=37&type=chunk) - Technology (AI, robots) is widely applied in property service mid- and back-end platforms, improving efficiency and reducing costs, but homeowners are concerned about whether technological dividends translate into their benefits and prefer the human touch of manual services[39](index=39&type=chunk)[40](index=40&type=chunk) [Strategic Review](index=19&type=section&id=4.2%20%E6%88%B0%E7%95%A5%E5%9B%9E%E9%A1%A7) The company is advancing its 'Butterfly City+', 'Enterprise Services+', and 'Ecology+' strategies, focusing on asset services, intelligence, and low-carbon solutions to become a leading smart low-carbon asset service provider, with notable efficiency gains and revenue growth in key segments - The company's strategy focuses on "asset services, intelligence, and low-carbon," promoting the "Butterfly City+, Enterprise Services+, and Ecology+" strategies, aiming to become a global leading smart low-carbon asset service provider[41](index=41&type=chunk) [Butterfly City+: Building Street-Level Service Networks](index=19&type=section&id=4.2.1%20%E8%9D%B6%E5%9F%8E%2B%EF%BC%9A%E6%A7%8B%E5%BB%BA%E8%A1%97%E9%81%93%E7%B4%9A%E6%9C%8D%E5%8B%99%E7%B6%B2%E7%B5%A1) The 'Butterfly City+' strategy enhanced efficiency through regional scale, completing **300** upgrades, saving RMB **230.0** million, and driving a **39.6%** increase in residential-related asset services revenue with a **22.3%** gross profit margin - Completed **300** Butterfly City efficiency upgrades, covering **1,688** projects, comprising **38.3%** of the total in-management projects, with efficiency improvements of RMB **230.0** million after upgrades[42](index=42&type=chunk) - Acquired **114** residential property projects in the existing market, with annualized saturated revenue of RMB **668.1** million, increased year-on-year by **31.5%**[42](index=42&type=chunk) Residential-Related Asset Services Business Performance | Indicator | H1 2025 (RMB million) | YoY Growth Rate (%) | Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | | Residential-Related Asset Services Revenue | 858.4 | 39.6 | 22.3 | | Self-operated Renovation Business New Contracts | 270.0 | 50.0 | - | | Housing Repair Business Revenue | 227.6 | 95.0 | - | [Enterprise Services+: New Engine for Asset Service Value Enhancement](index=20&type=section&id=4.2.2%20%E4%BC%81%E6%9C%8D%2B%EF%BC%9A%E8%B3%87%E7%94%A2%E6%9C%8D%E5%8B%99%E5%83%B9%E5%80%BC%E8%BA%8D%E5%8D%87%E6%96%B0%E5%BC%95%E6%93%8E) The 'Enterprise Services+' strategy leverages energy management and AI data services to boost B-side value, achieving significant cost reductions and a breakthrough in AI data services revenue to RMB **37.9** million, with enterprise remote operation services growing **14.1%** and a **33.5%** gross profit margin - The Shanghai Zhongganghui project applied a smart energy-saving system, with energy costs decreased by **24%**; the Shenzhen Chuangzhiyun Center T**3** building project achieved energy savings exceeding **10%** through smart control of air conditioning and lighting[45](index=45&type=chunk) - Innovatively adopted the "energy profit-sharing" model, successfully implementing **13** energy projects, with single project full-cycle earnings increased by **7.8** times[45](index=45&type=chunk) - Gross profit margin for property and facility management services increased year-on-year by **0.5** percentage points, with new saturated revenue of RMB **1,249.9** million[45](index=45&type=chunk) - AI data services achieved a business breakthrough from zero to RMB **37.9** million, signing **4** external clients[45](index=45&type=chunk) Enterprise Remote Operation Services Business Performance | Indicator | H1 2025 (RMB million) | YoY Growth Rate (%) | Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | | Enterprise Remote Operation Services Revenue | 618.9 | 14.1 | 33.5 | [Technological Capabilities: Driving Continuous Cost Optimization](index=21&type=section&id=4.2.3%20%E7%A7%91%E6%8A%80%E8%83%BD%E5%8A%9B%EF%BC%9A%E9%A9%85%E5%8B%95%E8%B2%BB%E7%94%A8%E7%AB%AF%E6%8C%81%E7%BA%8C%E5%84%AA%E5%8C%96) The company structurally improved cost efficiency by deeply restructuring its mid-to-back-end operations with AI and automation, resulting in an **8.0%** net reduction in administrative expenses, creating a strategic loop of 'technology cost reduction → resource reallocation → accelerated growth' - AI fully intervenes in contract management processes, compressing approval time and reducing compliance risks; **10** functions out of **26** regular HR processes achieved remote automation[47](index=47&type=chunk) - Administrative expenses of RMB **885.8** million, a net decrease of RMB **77.4** million year-on-year, a decrease of **8.0%**, and administrative expenses as a percentage of revenue decreased by **0.6** percentage points[47](index=47&type=chunk)[77](index=77&type=chunk) [Business Review](index=22&type=section&id=4.3%20%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The company's business spans community residential consumption, commercial and urban integrated services, and AIoT/BPaaS solutions, with recurring business as a cornerstone for stable revenue growth despite declines in some segments due to market pressures and developer business contraction Revenue by Business and Service Category (RMB thousand) | Business Category | 2025 Revenue | 2025 Share (%) | 2024 Revenue (Restated) | 2024 Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Community Space Residential Consumption Services | 11,324,996 | 62.4 | 10,132,985 | 57.6 | 11.8 | | - Residential Property Services | 10,279,326 | 56.7 | 9,309,541 | 52.9 | 10.4 | | - Residential-Related Asset Services | 858,423 | 4.7 | 614,705 | 3.5 | 39.6 | | - Other Community Value-Added Services | 187,247 | 1.0 | 208,739 | 1.2 | (10.3) | | Commercial and Urban Space Integrated Services | 5,748,658 | 31.7 | 6,065,306 | 34.5 | (5.2) | | - Property and Facility Management Services | 5,169,132 | 28.5 | 4,799,404 | 27.3 | 7.7 | | - Developer Value-Added Services | 219,285 | 1.2 | 916,154 | 5.2 | (76.1) | | - Urban Space Integrated Services | 360,241 | 2.0 | 349,748 | 2.0 | 3.0 | | AIoT and BPaaS Solutions Services | 1,063,803 | 5.9 | 1,391,643 | 7.9 | (23.6) | | - AIoT Solutions | 203,719 | 1.1 | 602,871 | 3.4 | (66.2) | | - BPaaS Solutions | 860,084 | 4.8 | 788,772 | 4.5 | 9.0 | | **Total** | **18,137,457** | **100.0** | **17,589,934** | **100.0** | **3.1** | Gross Profit by Business and Service Category (RMB thousand) | Business Category | 2025 Gross Profit | 2025 Gross Profit Margin (%) | 2024 Gross Profit (Restated) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Community Space Residential Consumption Services | 1,634,641 | 14.4 | 1,530,278 | 15.1 | | Commercial and Urban Space Integrated Services | 506,908 | 8.8 | 431,608 | 7.1 | | AIoT and BPaaS Solutions Services | 351,324 | 33.0 | 439,248 | 31.6 | | **Total** | **2,492,873** | **13.7** | **2,401,134** | **13.7** | - Recurring business revenue RMB **16,308.5** million, increased year-on-year by **9.5%**, comprising **89.9%** of total revenue; gross profit RMB **2,107.9** million, increased year-on-year by **8.8%**, comprising **84.6%** of total gross profit[51](index=51&type=chunk) [Residential Property Services](index=24&type=section&id=4.3.1%20%E4%BD%8F%E5%AE%85%E7%89%A9%E6%A5%AD%E6%9C%8D%E5%8B%99) Residential property services revenue grew **10.4%** to RMB **10,279.3** million, comprising **56.7%** of total revenue, demonstrating stable growth despite a slight gross profit margin decline due to resident payment willingness Residential Property Services Key Data | Indicator | H1 2025 (RMB million) | YoY Growth Rate (%) | Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | | Revenue | 10,279.3 | 10.4 | - | | Gross Profit | 1,330.4 | 6.8 | 12.9 | | In-management Saturated Revenue | 28,133.5 | 7.4 | - | | Contracted Saturated Revenue | 33,719.1 | 5.9 | - | - Gross profit margin declined by **0.5** percentage points to **12.9%**, primarily due to macroeconomic environment and decreased resident payment willingness[52](index=52&type=chunk) - The number of in-management projects and annualized saturated revenue from independent third-party real estate developers both exceeded those from Vanke Group and its joint ventures and associates[54](index=54&type=chunk) [Property and Facility Management Services](index=25&type=section&id=4.3.2%20%E7%89%A9%E6%A5%AD%E5%8F%8A%E8%A8%AD%E6%96%BD%E7%AE%A1%E7%90%86%E6%9C%8D%E5%8B%99) Property and facility management services revenue increased **7.7%** to RMB **5,169.1** million, with gross profit up **13.7%**, driven by brand strength and expansion, including securing **10** super high-rise projects and optimizing client structure Property and Facility Management Services Key Data | Indicator | H1 2025 (RMB million) | YoY Growth Rate (%) | Gross Profit Margin (%) | | :--- | :--- | :--- | :--- |\ | Revenue | 5,169.1 | 7.7 | - | | Gross Profit | 452.8 | 13.7 | 8.8 | | In-management Saturated Revenue | 15,700.0 | 9.7 | - | | Contracted Saturated Revenue | 19,837.9 | - | - | - Commercial property service projects and integrated facility management service projects each accounted for approximately half of the in-management property and facility management services saturated revenue[55](index=55&type=chunk) - The number of in-management projects and annualized saturated revenue from independent third-party real estate developers significantly exceeded those from Vanke Group and its joint ventures and associates[56](index=56&type=chunk) [BPaaS Solutions](index=26&type=section&id=4.3.3%20BPaaS%E8%A7%A3%E6%B1%BA%E6%96%B9%E6%A1%88) BPaaS solutions revenue grew **9.0%** to RMB **860.1** million, with gross profit up **11.0%**, primarily due to successful market expansion to new enterprise clients in insurance, energy, telecommunications, and automotive sectors BPaaS Solutions Key Data | Indicator | H1 2025 (RMB million) | YoY Growth Rate (%) | Gross Profit Margin (%) | | :--- | :--- | :--- | :--- |\ | Revenue | 860.1 | 9.0 | - | | Gross Profit | 324.6 | 11.0 | 37.7 | - Enterprise BPaaS business achieved good external expansion results, with new clients including leading insurance companies, leading energy companies, well-known telecommunications companies, leading automotive companies, etc[57](index=57&type=chunk) [Residential-Related Asset Services](index=26&type=section&id=4.3.4%20%E5%B1%85%E4%BD%8F%E7%9B%B8%E9%97%9C%E8%B3%87%E7%94%A2%E6%9C%8D%E5%8B%99) Residential-related asset services revenue surged **39.6%** to RMB **858.4** million, with gross profit up **7.1%**, driven by increased outlets and building repair services for non-developer residential clients Residential-Related Asset Services Key Data | Indicator | H1 2025 (RMB million) | YoY Growth Rate (%) | Gross Profit Margin (%) | | :--- | :--- | :--- | :--- |\ | Revenue | 858.4 | 39.6 | - | | Gross Profit | 191.6 | 7.1 | 22.3 | - Revenue growth primarily due to actively increasing outlets and conducting building repair services for non-developer clients in residential spaces[59](index=59&type=chunk) [AIoT Solutions](index=27&type=section&id=4.3.5%20AIoT%E8%A7%A3%E6%B1%BA%E6%96%B9%E6%A1%88) AIoT solutions revenue significantly decreased by **66.2%** to RMB **203.7** million, with gross profit down **81.8%**, primarily due to external pressures and intensified market competition AIoT Solutions Key Data | Indicator | H1 2025 (RMB million) | YoY Growth Rate (%) | Gross Profit Margin (%) | | :--- | :--- | :--- | :--- |\ | Revenue | 203.7 | -66.2 | - | | Gross Profit | 26.7 | -81.8 | 13.1 | [Non-Core Businesses](index=27&type=section&id=4.3.6%20%E9%9D%9E%E6%A0%B8%E5%BF%83%E6%A5%AD%E5%8B%99) The company strategically reduced its non-core business proportion, with developer value-added services revenue decreasing **76.1%** due to industry cycles and proactive business contraction Non-Core Businesses Key Data | Business Category | H1 2025 Revenue (RMB million) | YoY Growth Rate (%) | H1 2025 Gross Profit (RMB million) | YoY Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Urban Space Integrated Services | 360.2 | 3.0 | 32.8 | 5.3 | | Other Community Value-Added Services | 187.2 | -10.3 | 112.7 | 6.8 | | Developer Value-Added Services | 219.3 | -76.1 | 21.3 | 906.3 | - Developer value-added services revenue decreased by **76.1%**, primarily due to industry cycle impacts and the company's proactive business contraction, but gross profit increased year-on-year by **906.3%**, indicating business structure optimization[65](index=65&type=chunk)[73](index=73&type=chunk) [Financial Performance Analysis](index=28&type=section&id=4.4%20%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%88%86%E6%9E%90) The Group's revenue structure improved with increased recurring business share, driving a **3.1%** total revenue growth, while sales costs rose proportionally, gross profit margin remained stable, and administrative expenses decreased due to technological efficiencies, leading to profit growth - Total revenue of RMB **18,137.5** million, increased year-on-year by **3.1%**, primarily due to increased management scale and business contracts[67](index=67&type=chunk) - Community space residential consumption services revenue increased year-on-year by **11.8%**, benefiting from market expansion capabilities, especially deep cultivation in the existing market[67](index=67&type=chunk) - Commercial and urban space integrated services revenue decreased by **5.2%**, primarily due to the company's proactive contraction of developer business[68](index=68&type=chunk) - AIoT and BPaaS solutions services revenue decreased by **23.6%**, primarily affected by external environmental pressures and intensified market competition[69](index=69&type=chunk) - Total cost of sales of RMB **15,644.6** million, increased year-on-year by **3.0%**, consistent with revenue scale growth[70](index=70&type=chunk) - Total gross profit of RMB **2,492.9** million, increased year-on-year by **3.8%**, total gross profit margin of **13.7%**, largely stable compared to the same period last year[71](index=71&type=chunk) - Other income and gains, net decreased by **26.5%**, primarily due to declining money market interest rates and the expiration of VAT additional deduction policies[75](index=75&type=chunk) - Administrative expenses decreased by **8.0%**, primarily benefiting from technological efficiency improvements and back-office functional team building[77](index=77&type=chunk) - Profit for the period increased by **5.4%** to RMB **837.8** million; core net profit increased by **10.8%** to RMB **1,321.1** million[79](index=79&type=chunk) [Liquidity and Financial Resources](index=31&type=section&id=%E8%B3%87%E9%87%91%E6%B5%81%E5%8B%95%E6%80%A7%E5%8F%8A%E8%B2%A1%E6%94%BF%E8%B3%87%E6%BA%90) This section details the company's cash flow, debt, asset pledges, and foreign exchange risk management - Cash and cash equivalents balance of RMB **10,937.0** million, decreased by RMB **2,515.9** million compared to December **31**, **2024**, primarily used for dividend payments of **1,011.9** million and investment payments of **1,116.8** million[81](index=81&type=chunk) - Net operating cash flow increased by RMB **2,050.4** million compared to H**1** **2024**, showing improvement[82](index=82&type=chunk) - Assumed bank borrowings of RMB **573.9** million due to business combination, net debt ratio is not applicable[83](index=83&type=chunk) - Certain investment properties and trade receivables and retention money were pledged to secure bank borrowings[85](index=85&type=chunk) - The Group's foreign exchange risk exposure is limited, and fluctuations in RMB exchange rates against foreign currencies have not had a material impact on operating results[86](index=86&type=chunk) [Corporate Governance and Other Information](index=32&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers corporate governance practices, significant transactions, employee policies, and other relevant disclosures [Significant Investments, Acquisitions and Disposals](index=32&type=section&id=6.1%20%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the reporting period, the company acquired the remaining **55%** equity of Shanghai Xiangda Real Estate Development Co., Ltd., making it a wholly-owned subsidiary, with no other significant investment or acquisition plans beyond those disclosed in the prospectus - As of the end of May **2025**, the company indirectly held all equity in Shanghai Xiangda, and its results have been consolidated into the Group's results[87](index=87&type=chunk) - Apart from plans disclosed in the prospectus and changes in use of proceeds, the Group has no specific plans for significant investments or acquisitions of major capital assets[88](index=88&type=chunk) [Employees and Remuneration Policy](index=32&type=section&id=6.2%20%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June **30**, **2025**, the company had **102,093** employees with total costs of approximately RMB **6,010.3** million, focusing on talent development, competitive compensation, and employee stock ownership plans Employees and Remuneration Overview | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 102,093 | 102,441 | | Total Employee Costs (RMB million) | 6,010.3 | - | - The company established a corporate culture centered on 'being a service provider,' 'striving for first place,' and 'sunny and healthy' values, offering tiered leadership training camps, market expansion personnel training, key service position training camps, and AI learning courses[89](index=89&type=chunk)[90](index=90&type=chunk) [Material Events After Reporting Period](index=33&type=section&id=6.3%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) There have been no material events affecting the Group subsequent to the reporting period up to the date of this announcement - There have been no material events affecting the Group subsequent to the reporting period up to the date of this announcement[91](index=91&type=chunk) [Purchase, Sale and Redemption of Listed Securities of the Company](index=33&type=section&id=6.4%20%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E5%8F%8A%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) During the reporting period, the company repurchased a total of **4,250,000** H shares for approximately **84,866,975** HKD, representing **0.37%** of total share capital, with **3,512,200** shares subsequently cancelled H Share Repurchase Details | Repurchase Date | Number of Shares Repurchased | Total Price (HKD) | | :--- | :--- | :--- | | January 2, 2025 | 500,000 | 10,195,950 | | January 6, 2025 | 500,000 | 10,120,000 | | January 8, 2025 | 500,000 | 10,054,350 | | January 10, 2025 | 500,000 | 9,957,200 | | January 13, 2025 | 500,000 | 9,972,300 | | January 14, 2025 | 750,000 | 14,777,775 | | January 15, 2025 | 500,000 | 9,731,750 | | January 17, 2025 | 500,000 | 10,057,650 | | **Total** | **4,250,000** | **84,866,975** | - Repurchased H shares accounted for **0.37%** of the company's total share capital (excluding treasury H shares), with the Board believing the repurchase demonstrates confidence in the company's business development and prospects[92](index=92&type=chunk)[93](index=93&type=chunk) - As of the date of this announcement, the company has cancelled **3,512,200** repurchased H shares and held a total of **11,560,200** repurchased H shares as treasury H shares[94](index=94&type=chunk) [Corporate Governance Code](index=34&type=section&id=6.5%20%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company adheres to high corporate governance standards, adopting the Listing Rules' Corporate Governance Code, and while the Chairman and CEO roles are combined, the Board believes this arrangement enhances decision-making and execution efficiency, with appropriate checks and balances in place - The company has adopted the Corporate Governance Code set out in Appendix C**1** of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[95](index=95&type=chunk) - Mr. Zhu Baquan serves as both Chairman and General Manager, combining the roles of Chairman and Chief Executive Officer, but the Board believes this arrangement enhances decision-making and execution efficiency, with appropriate checks and balances in place[95](index=95&type=chunk) [Standard Code for Securities Transactions by Directors and Relevant Employees](index=34&type=section&id=6.6%20%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%89%E9%97%9C%E5%83%B1%E5%93%A1%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%89%87) The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, with directors confirming compliance with the code throughout the reporting period and no reported breaches by relevant employees - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, and directors confirmed compliance with the code throughout the reporting period[96](index=96&type=chunk) [Audit Committee](index=35&type=section&id=6.7%20%E5%AF%A9%E8%A8%88%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee reviewed the unaudited condensed consolidated interim results for the six months ended June **30**, **2025**, confirming compliance with accounting principles and adequate disclosure - The Audit Committee, comprising Ms. Law Kam Yee, Mr. Chen Yuyu, and Mr. Sun Jia, reviewed the interim results and confirmed their compliance and adequate disclosure[97](index=97&type=chunk) [Interim Dividend](index=35&type=section&id=6.8%20%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board proposed an interim dividend totaling RMB **1,100.0** million (RMB **0.951** per share, tax inclusive) for the six months ended June **30**, **2025**, with detailed tax implications for H-share shareholders - The Board proposed an interim dividend totaling RMB **1,100.0** million (RMB **0.951** per share, tax inclusive) for the six months ended June **30**, **2025**[98](index=98&type=chunk) - Dividends for H-share shareholders will be declared in RMB but paid in HKD, subject to shareholder approval at the EGM convened on September **3**, **2025**[98](index=98&type=chunk) - Non-resident enterprise H-share shareholders will be subject to a **10%** withholding corporate income tax; H-share individual shareholders will be subject to individual income tax rates ranging from **10%** to **20%** based on their residency and tax agreements with China[99](index=99&type=chunk)[100](index=100&type=chunk)[102](index=102&type=chunk) [Closure of Register of Members](index=37&type=section&id=6.9%20%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) The company will temporarily suspend share transfer registration on two separate occasions to determine eligibility for attending the EGM and receiving the interim dividend - To determine eligibility for attending and voting at the EGM, share transfer registration will be suspended from August **29**, **2025**, to September **3**, **2025** (both dates inclusive)[103](index=103&type=chunk) - To determine eligibility for the proposed **2025** interim dividend, share transfer registration will be suspended from September **9**, **2025**, to September **11**, **2025** (both dates inclusive)[104](index=104&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=38&type=section&id=6.10%20%E5%88%8A%E8%BC%89%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.onewo.com), with the interim report to be published in due course, and the Chinese version shall prevail in case of any discrepancy - This announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.onewo.com), with the interim report to be published in due course[105](index=105&type=chunk) - In case of any discrepancy between the Chinese and English versions, the Chinese version shall prevail[105](index=105&type=chunk)

Financial Performance - The company reported revenue of approximately RMB 7.434 billion, representing a year-on-year increase of about 14.3%[5] - Profit amounted to approximately RMB 3.135 billion, reflecting a year-on-year growth of about 15.0%[5] - Basic earnings per share were approximately RMB 0.053, an increase of about 14.8% compared to the same period last year[5] - For the six months ended June 30, 2025, the company recorded revenue of approximately RMB 7.434 billion, representing a year-on-year growth of about 14.3%[14] - The company's profit for the same period was approximately RMB 3.135 billion, an increase of about 15.0% compared to the previous year[14] - The basic earnings per share were approximately RMB 0.53, reflecting a year-on-year increase of about 14.8%[14] - Gross profit for the same period was RMB 6,772,773,000, up from RMB 5,926,283,000, indicating a growth of 14.3%[57] - The company achieved a profit before tax of RMB 3,688,152,000, compared to RMB 3,118,186,000 in the previous year, reflecting an increase of 18.3%[57] - Net profit for the period was RMB 3,134,929,000, which is a 15.0% increase from RMB 2,725,525,000 in 2024[57] - Basic and diluted earnings per share were both RMB 0.53, compared to RMB 0.46 in the previous year, marking a 15.2% increase[57] Revenue Sources - Revenue from innovative drugs and collaborative products reached approximately RMB 6.145 billion, up approximately 22.1% year-on-year, accounting for about 82.7% of total revenue[5] - Revenue from the oncology segment was approximately RMB 4.531 billion, representing about 60.9% of total revenue[15] - Sales revenue from innovative drugs and collaborative products reached approximately RMB 6.145 billion, accounting for about 82.7% of total revenue[14] - Revenue from product sales was RMB 5,776,795,000, up from RMB 5,103,080,000, reflecting a growth of 13.2% year-over-year[68] Research and Development - R&D expenses were approximately RMB 1.441 billion, an increase of about 20.4% year-on-year, representing approximately 19.4% of total revenue[5] - The company has multiple new drug applications and clinical trial approvals, including HS-20093 for osteosarcoma and HS-10561 for chronic spontaneous urticaria[8][9] - The company is focused on expanding its product pipeline in oncology and autoimmune diseases, with several drugs in various stages of clinical trials and approvals[6] - The company has over 70 ongoing clinical trials across more than 40 candidate innovative drugs as of June 30, 2025[31] - The company incurred approximately RMB 191 million in R&D expenses for advancing multiple licensed projects during the reporting period[39] - The company established a robust R&D platform with over 1,900 researchers across four centers in the U.S. and China[30] Product Approvals and Innovations - The company achieved a breakthrough therapy designation from the FDA for its B7-H3 targeted antibody-drug conjugate (ADC) for treating relapsed or refractory osteosarcoma[7] - The company’s innovative drug, XinYue® (Inalizumab injection), received priority review status from the NMPA for a new indication to treat IgG4-related disease[7] - The innovative drug Aumseqa® received approval from the UK Medicines and Healthcare products Regulatory Agency (MHRA) for use as a first-line treatment for adult patients with advanced or metastatic NSCLC with activated EGFR mutations[17] - Aumseqa® has been included in eight national clinical guidelines, including the CSCO guidelines for NSCLC treatment[17] - The company has successfully expanded its innovative drug portfolio, with Aumseqa® gaining approval for two new indications during the reporting period[18] - HaoSen XinFu® (甲磺酸氟馬替尼片) is the first innovative second-generation TKI for chronic myeloid leukemia in China, achieving molecular response faster and deeper than other treatments, with a growing patient population[19] - XinYue® (伊奈利珠單抗注射液) received NMPA approval for treating AQP4 antibody-positive NMOSD in March 2022 and was included in the national medical insurance directory in January 2023, with successful renewal for 2024[21] - Fulaimei® (聚乙二醇洛塞那肽注射液) is the first domestically developed GLP-1 receptor agonist approved for type 2 diabetes, with confirmed efficacy in blood sugar reduction and low incidence of adverse events, included in the national medical insurance directory since 2020[23] - Hengmu® (艾米替諾福韋片) is the first oral antiviral drug for chronic hepatitis B in China, with long-term efficacy and safety data published, and included in the national medical insurance directory since 2021[25] - Shengluo Lai® (培莫沙肽注射液) is the only approved small molecule peptide drug for treating anemia due to chronic kidney disease, with favorable clinical trial results showing comparable efficacy to traditional treatments[28] Financial Position and Cash Flow - The company reported a net cash inflow of RMB 3.605 billion from operating activities for the six months ended June 30, 2025, with capital expenditures of RMB 245 million[46] - As of June 30, 2025, the company had cash and bank deposits totaling RMB 27.104 billion, an increase from RMB 22.622 billion as of December 31, 2024[47] - The company's asset-liability ratio was approximately 11.3% as of June 30, 2025, compared to 9.4% as of December 31, 2024, indicating a stable financial condition[47] - Cash and bank balances increased to RMB 27,103,694,000 as of June 30, 2025, up from RMB 22,621,566,000 at the end of 2024[60] - Total assets less current liabilities amounted to RMB 31,470,393,000, compared to RMB 28,962,631,000 in the previous year[61] Corporate Governance and ESG - The company maintained an MSCI ESG rating of AA and was recognized as one of the top 1% in the Chinese pharmaceutical industry by S&P Global[14] - The company is committed to long-term sustainable development, as evidenced by its ongoing improvements in ESG performance[14] - The board continues to monitor ESG strategies and risks, ensuring alignment with long-term corporate goals[45] - The company maintained compliance with corporate governance codes, with the board confirming adherence to all applicable provisions except for the separation of the roles of chairman and CEO[81] - The audit committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[84] Shareholder Information - The company declared a dividend of HKD 0.1353 per share for the fiscal year 2024, totaling approximately RMB 734,910,000, compared to RMB 768,760,000 for the previous year[74] - The board declared an interim dividend of HKD 0.2316 per share for the six months ended June 30, 2025, compared to HKD 0.2010 for the same period in 2024, representing an increase of approximately 10.5%[86] - The record date for the interim dividend is September 25, 2025, with a suspension of share transfer registration from September 24 to September 25, 2025[86]