香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部分內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 CAPINFO COMPANY LIMITED* 中華人民共和國，北京，二零二五年八月十八日 - 1 - 本公司董事（「董事」）會（「董事會」）謹此根據上市規則第14A.71(6)(a)條提供下列有關二零 二四年年報所披露持續關連交易的補充資料。 根據上市規則第14A.55條，獨立非執行董事已審閱持續關連交易，並確認該等交易乃(i) 於本集團日常及一般業務過程中；(ii)按照正常商業條款或更優條款；及(iii)根據規管該等 交易的協議內公平合理且符合本公司股東整體利益的條款訂立。 本補充公告所載資料不會影響二零二四年年報所載的其他資料。除本公告所披露者外， 二零二四年年報內一切其他資料及內容維持不變。 承董事會命 首都信息發展股份有限公司 董事長 余東輝 1075 有關二零二四年年報的 補充公告 茲提述首都信息發展股份有限公司（「本公司」），連同其附屬公司統稱「本集團」）截至二零 二四年十二月三十一日止年 ...

[Summary for the Six Months Ended June 30, 2025](index=2&type=section&id=%E6%88%AA%E8%87%B32025%E5%B9%B46%E6%9C%8830%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88%E6%91%98%E8%A6%81) Leapmotor achieved significant operational and financial breakthroughs in H1 2025, including its first semi-annual net profit, record gross margin, and leading vehicle deliveries among new energy brands [Operational Highlights](index=2&type=section&id=%E7%B6%93%E7%87%9F%E4%BA%AE%E9%BB%9E) The company achieved its first semi-annual net profit and record-high gross margin, leading in vehicle deliveries among new energy brands - In H1 2025, the company's semi-annual net profit turned positive for the first time, reaching **RMB 0.3 billion**, becoming the second Chinese new energy vehicle startup to achieve semi-annual profitability[7](index=7&type=chunk) - In H1 2025, the company's gross margin reached **14.1%**, a semi-annual record since its inception[7](index=7&type=chunk) - In H1 2025, the company's total vehicle deliveries were **221,664 units**, ranking first among Chinese new energy vehicle brands[7](index=7&type=chunk) - In July 2025, deliveries exceeded **50,129 units**, maintaining the top position among Chinese new energy vehicle brands for five consecutive months, and being the only new energy brand with monthly deliveries over 50,000 units in 2025[7](index=7&type=chunk) [Financial Highlights](index=2&type=section&id=%E8%B2%A1%E5%8B%99) Revenue and gross margin saw substantial growth, leading to a turnaround in net profit and significant increase in operating cash flow 2025 H1 Key Financial Data | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Revenue | 24.25 | 8.85 | 174.0% | | Gross Margin | 14.1% | 1.1% | 13 percentage points | | Net Profit Attributable to Equity Holders | 0.03 | (2.21) | Turnaround to Profit | | Adjusted Net Profit (Non-IFRS) | 0.33 | (2.02) | Turnaround to Profit | | Net Cash from Operating Activities | 2.86 | 0.27 | 960.0% | | Free Cash Flow | 0.86 | (0.48) | Turnaround to Profit | | Cash and Cash Equivalents and On-Hand Funds (as of June 30) | 29.58 | N/A | N/A | - Revenue growth was primarily driven by increased vehicle and spare parts deliveries, strategic collaborations, carbon credit trading income, and growth in related service revenue[7](index=7&type=chunk) - Gross margin improvement was mainly attributed to economies of scale from increased sales, continuous cost management, optimized product mix, and other business income[7](index=7&type=chunk) [Sales Performance](index=3&type=section&id=%E9%8A%B7%E9%87%8F) The company achieved record-high vehicle deliveries in H1 2025, maintaining its leading position among new energy vehicle brands - Total vehicle deliveries in H1 2025 reached **221,664 units**, a **155.7% year-on-year increase**, ranking first among Chinese new energy vehicle brands[10](index=10&type=chunk) - July 2025 deliveries reached **50,129 units**, maintaining the top position among Chinese new energy vehicle brands for five consecutive months, and being the only new energy brand with monthly deliveries exceeding 50,000 units in 2025[10](index=10&type=chunk) - As of June 18, 2025, cumulative deliveries surpassed the **800,000-unit** milestone[10](index=10&type=chunk) - The C10 achieved over **100,000 global deliveries** within 13 months of its launch, consistently ranking first in sales among new energy brand mid-size SUVs for three consecutive months[10](index=10&type=chunk) - The B10's deliveries exceeded **10,000 units** in its second month on the market, becoming Leapmotor's fastest product to reach this milestone[10](index=10&type=chunk) [Product Updates and Technology Architecture](index=3&type=section&id=%E7%94%A2%E5%93%81) The company launched new B-platform models and updated C-platform models, all based on the LEAP 3.5 architecture, integrating advanced intelligent features - In 2025, two new B-platform models (B10, B01) and three updated C-platform models (New C10, New C16, All-new C11) were launched, all built on the **LEAP 3.5 architecture**[9](index=9&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) - The Leapmotor B10 (RMB 120,000-class SUV) launched on April 10, 2025, featuring end-to-end assisted driving, LiDAR, and a Qualcomm 8650 chip, winning multiple international design and performance awards[9](index=9&type=chunk) - The Leapmotor B01 (high-quality intelligent sedan for the mainstream market) launched on July 24, 2025, with over **10,000 orders** in 72 hours, targeting young individuals and families[10](index=10&type=chunk)[11](index=11&type=chunk) - The New C10 launched on May 15, 2025, bringing high-end features like **800V high-voltage platform**, LiDAR, and end-to-end assisted driving to the RMB 140,000-class market[11](index=11&type=chunk) - The New C16 launched on June 18, 2025, as the only "ultra-comfortable intelligent long-range SUV" in its class to adopt **CTC2.0** and **800V solutions**[11](index=11&type=chunk) - The All-new C11 launched on July 10, 2025, with nearly **50% core component upgrades** and over **110 experience enhancements**, bringing AR-HUD, LiDAR, and **800V supercharging** to the mainstream market[12](index=12&type=chunk) [R&D Progress](index=4&type=section&id=%E7%A0%94%E7%99%BC) The company advanced its LEAP 3.5 architecture, significantly increased investment in intelligent driving R&D, and achieved breakthroughs in AR-HUD, electric drive systems, and CTC battery technology - The **LEAP 3.5 technology architecture** was released on March 10, 2025, featuring a Qualcomm 8650/8295 chip combination, achieving cockpit-driving integration and the world's most integrated central domain controller[13](index=13&type=chunk) - Investment in intelligent driving R&D continued to increase in H1 2025, with both the intelligent driving team size and computing power resources increasing by nearly **100%**[13](index=13&type=chunk) - City commuting navigation assistance based on end-to-end algorithms was mass-produced for the first time, and the Qualcomm 8650 domain control assisted driving solution was developed and applied to B-platform models in just **six months**[13](index=13&type=chunk) - Plans for H2 2025 include increasing R&D resources for end-to-end and VLA technologies, aiming to achieve city NOA combined assisted driving capabilities by year-end[13](index=13&type=chunk) - The fully self-developed AR-HUD was first applied to the All-new C11, featuring the largest **60-inch AR-HUD** in its class, with future coverage planned for D-platform and main C-platform models[14](index=14&type=chunk) - The electric drive system's CLTC operating efficiency increased by approximately **1%**, maintaining industry-leading overall efficiency; mass production of the new-generation compressor project achieved best-in-class NVH performance[14](index=14&type=chunk) - Leapmotor's CTC battery was among the first to pass the new national standard (GB 38031-2025) for power batteries, obtaining a "safety pass" a year in advance, with over **250,000 sets of CTC2.0 batteries** already installed[15](index=15&type=chunk) [Sales Channels and Digital Marketing](index=5&type=section&id=%E9%8A%B7%E5%94%AE%E6%B8%A0%E9%81%93) The company expanded its sales network, significantly improved single-store efficiency, and implemented a comprehensive digital marketing system to enhance user engagement - As of June 30, 2025, the sales and service network covered **286 cities**, adding **88 new cities**, totaling **806 sales stores** and **461 service stores**[16](index=16&type=chunk) - Single-store efficiency increased by over **50% year-on-year** in H1, attributed to the "1+N" model and "Golden Seed" program[16](index=16&type=chunk) - Plans for H2 2025 include deepening channel layout in first and second-tier cities, expanding into untapped cities, and projecting a **90% city coverage rate** by year-end[16](index=16&type=chunk) - A full-lifecycle digital marketing and service system was deployed, achieving 360-degree full reach across the user's entire journey and all scenarios[17](index=17&type=chunk) - Core retail metrics significantly improved in H1 2025: potential customer conversion rate increased by **2 percentage points**, in-store conversion rate increased by **5 percentage points**; store operational efficiency grew by **27% year-on-year**[17](index=17&type=chunk) [Service Strategy](index=6&type=section&id=%E6%9C%8D%E5%8B%99) The "Three Fast, Two Save" strategy significantly improved service response, vehicle repair, and spare parts delivery, enhancing user satisfaction - In H1 2025, the "Three Fast, Two Save" strategy achieved significant results: fast service response (**99.5% response rate within 15 minutes**, a **9% year-on-year increase**), fast vehicle repair (**98.3% one-time repair rate**, a **4.4% sequential increase**), and fast spare parts delivery (**91.5% delivery rate within 48 hours**, a **14.3% sequential increase**)[18](index=18&type=chunk) - In H2 2025, the company will continue to strengthen the "Three Fast, Two Save" core service philosophy, enhancing user service as a strategic competitive advantage through systematic capability building[18](index=18&type=chunk) [Capital and Strategic Cooperation](index=6&type=section&id=%E8%B3%87%E6%9C%AC%E5%8F%8A%E6%88%B0%E7%95%A5%E5%90%88%E4%BD%9C) The company signed a strategic cooperation with FAW for joint development and parts, and is progressing with a private placement of domestic shares - On March 3, 2025, a Strategic Cooperation Memorandum of Understanding was signed with China FAW, initiating joint development of new energy passenger vehicles and component cooperation, with the first collaborative vehicle project already launched[19](index=19&type=chunk) - Both parties will further explore the feasibility of deepening capital cooperation to achieve full industry chain resource synergy[19](index=19&type=chunk) - On March 26, 2025, the China Securities Regulatory Commission approved Leapmotor's private placement of domestic shares; on June 25, the annual general meeting approved a resolution to amend the company's articles of association to increase registered capital, with related matters progressing steadily[19](index=19&type=chunk) [Global Expansion](index=7&type=section&id=%E5%85%A8%E7%90%83%E5%8C%96) The company achieved leading export volumes among new energy brands, expanded its international sales network, and initiated local assembly projects in key markets - In H1 2025, exports reached **20,375 units**, ranking first among new energy vehicle brands[20](index=20&type=chunk) - In June, Leapmotor's market share in the German BEV market exceeded **1%**; in July, over **4,000 European users** placed orders, setting a new historical record[20](index=20&type=chunk) - The first batch of B10s was officially shipped to Europe in July 2025 and will be officially launched at the Munich Motor Show in September[21](index=21&type=chunk) - The T03 achieved first place in efficiency at the 2025 ECOBEST European Range Challenge and was ranked as the number one new brand in German car dealer satisfaction in the "2025 German Dealer Satisfaction Survey"[21](index=21&type=chunk) - On June 12, 2025, right-hand drive versions of the C10 and T03 officially launched in the Hong Kong market, with the **1,500th Leapmotor Center globally** opening in Hong Kong[21](index=21&type=chunk) - As of the end of June 2025, Leapmotor International B.V. established over **600 sales and after-sales service outlets** in approximately **30 international markets** including Europe, the Middle East, Africa, and Asia-Pacific[21](index=21&type=chunk) - On April 18, 2025, the Leapmotor C10 Malaysia local assembly project was launched with Stellantis Group, and the first C10-OTS vehicle completed assembly and rolled off the production line[21](index=21&type=chunk) - Plans include establishing a European local production base by the end of **2026** to further advance global market expansion[22](index=22&type=chunk) [Environmental, Social, and Governance ("ESG")](index=7&type=section&id=%E7%92%B0%E5%A2%83%E3%80%81%E7%A4%BE%E6%9C%83%E5%8F%8A%E7%AE%A1%E6%B2%BB%EF%BC%88%E3%80%8CE%E3%80%8D%EF%BC%89) The company published its third ESG report, maintained an MSCI ESG AA rating, and actively engaged in social welfare and carbon credit initiatives - In H1 2025, the third ESG report was released, and the company received an **MSCI ESG AA rating** for the second consecutive year[23](index=23&type=chunk) - On March 26, 2025, a donation of **RMB 5 million** was made to the Zhejiang Provincial Disabled Persons' Welfare Foundation to support technology-assisted public welfare projects for people with physical disabilities in Zhejiang Province[23](index=23&type=chunk) - Actively exploring market-valued carbon credit transfers, committed to achieving a win-win situation for both economic and environmental benefits[23](index=23&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section analyzes H1 2025 financial performance, detailing improvements in revenue, costs, profit, and cash flow, alongside liquidity, capital resources, and risk management [Financial Analysis](index=8&type=section&id=%E8%B2%A1%E5%8B%99%E5%88%86%E6%9E%90) A detailed review of revenue, costs, and profit metrics, highlighting significant improvements in gross margin and a turnaround to operating profit [Revenue](index=8&type=section&id=%E6%94%B6%E7%9B%8A) Total revenue and electric vehicle sales experienced substantial growth, primarily driven by increased deliveries and strategic collaborations Revenue Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 24.25 | 8.85 | 174.0% | | Electric Vehicle and Component Sales | 23.10 | 8.84 | 161.4% | - Total revenue growth was primarily due to increased vehicle and spare parts deliveries, strategic collaborations, carbon credit trading income, and growth in related service revenue[24](index=24&type=chunk) - Electric vehicle and component sales growth was mainly due to increased vehicle and spare parts deliveries[24](index=24&type=chunk) [Cost of Sales](index=8&type=section&id=%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) Cost of sales increased due to higher sales volume, partially offset by ongoing cost management efforts Cost of Sales Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Cost of Sales | 20.82 | 8.75 | 137.9% | - The increase in cost of sales was primarily due to higher sales volume, partially offset by continuous cost management efforts[25](index=25&type=chunk) [Gross Profit and Gross Margin](index=8&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit and gross margin significantly improved, driven by increased sales volume, cost management, and product mix optimization Gross Profit and Gross Margin Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Gross Profit | 3.43 | 0.10 | 3330.0% | | Gross Margin | 14.1% | 1.1% | 13 percentage points | - Gross margin improvement was primarily due to economies of scale from increased sales, continuous cost management, optimized product mix, and other business income[26](index=26&type=chunk) [Selling Expenses](index=8&type=section&id=%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) Selling expenses increased due to higher advertising and promotional activities and an expanded sales force Selling Expenses Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Selling Expenses | 1.41 | 0.90 | 56.7% | - The increase in selling expenses was primarily due to increased advertising and promotional efforts and a larger sales force[27](index=27&type=chunk) [Administrative Expenses](index=8&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased, mainly attributed to the growth in administrative personnel Administrative Expenses Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Administrative Expenses | 0.79 | 0.44 | 79.5% | - The increase in administrative expenses was primarily due to an increase in administrative personnel[28](index=28&type=chunk) [R&D Expenses](index=9&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) R&D expenses increased due to intensified investment in research and development and an expanded R&D team R&D Expenses Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | R&D Expenses | 1.89 | 1.22 | 54.9% | - The increase in R&D expenses was primarily due to intensified R&D investment and an increase in R&D personnel[29](index=29&type=chunk) [Operating Profit](index=9&type=section&id=%E7%B6%93%E7%87%9F%E5%88%A9%E6%BD%A4) Operating profit significantly improved, primarily driven by a substantial increase in gross profit from rapidly growing sales volume Operating Profit Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Improvement | | :--- | :--- | :--- | :--- | | Operating Profit | (0.09) | (2.40) | 96.3% | - Operating profit significantly improved primarily due to a substantial increase in gross profit driven by rapidly growing sales volume[30](index=30&type=chunk) [Net Finance Income](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) Net finance income decreased, primarily due to a reduction in interest income Net Finance Income Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Decrease | | :--- | :--- | :--- | :--- | | Net Finance Income | 0.11 | 0.19 | 42.1% | - The decrease in net finance income was primarily due to a reduction in interest income[31](index=31&type=chunk) [Share of Profit of Associates, Net](index=9&type=section&id=%E6%87%89%E4%BD%94%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%BA%A2%E5%88%A9%E6%B7%A8%E9%A1%8D) Share of profit of associates improved, mainly due to enhanced performance of associated companies Share of Profit of Associates, Net Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Improvement | | :--- | :--- | :--- | :--- | | Share of Profit of Associates, Net | 0.01 | (0.01) | 200.0% | - The improvement in share of profit of associates was primarily due to enhanced performance of associated companies[32](index=32&type=chunk) [Net Profit and Adjusted Net Profit](index=9&type=section&id=%E6%B7%A8%E5%88%A9%E6%BD%A4%E5%8F%8A%E7%B6%93%E8%AA%BF%E6%95%B4%E6%B7%A8%E5%88%A9%E6%BD%A4) The company achieved a turnaround to net profit and adjusted net profit, reflecting significant financial performance improvement Net Profit and Adjusted Net Profit Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Change | | :--- | :--- | :--- | :--- | | Net Profit | 0.03 | (2.21) | Turnaround to Profit | | Adjusted Net Profit (Non-IFRS) | 0.33 | (2.02) | Turnaround to Profit | [Basic and Diluted Earnings Per Share](index=9&type=section&id=%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E5%8F%8A%E6%94%A4%E8%96%84%E5%88%A9%E6%BD%A4) Basic and diluted earnings per share turned positive, reflecting the company's overall profitability improvement Basic and Diluted Earnings Per Share Comparison | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share | 0.02 | (1.65) | [Liquidity and Capital Resources](index=9&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The company maintains strong liquidity, with sufficient capital resources to support ongoing operations and expansion plans, while managing debt and cash flows effectively [Financial Position](index=9&type=section&id=%E8%B3%87%E9%87%91%E7%8B%80%E6%B3%81) The company holds substantial cash and equivalents, deemed sufficient for its operational and expansion needs - As of June 30, 2025, cash and cash equivalents, restricted cash, financial assets at fair value through profit or loss, and bank time deposits totaled **RMB 29.58 billion**[35](index=35&type=chunk) - The company believes its existing capital resources are sufficient to support ongoing operations and business development expansion plans[35](index=35&type=chunk) [Interest Expenses on Bank and Other Borrowings](index=10&type=section&id=%E9%8A%80%E8%A1%8C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE%E7%9A%84%E5%88%A9%E6%81%AF%E9%96%8B%E6%94%AF) Interest expenses on bank and other borrowings increased year-on-year Interest Expenses on Bank and Other Borrowings Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Interest Expenses | 50 | 30 | 66.7% | [Borrowings](index=10&type=section&id=%E5%80%9F%E6%AC%BE) Total borrowings increased, comprising both non-current and current portions Total Borrowings Comparison | Indicator | June 30, 2025 (RMB billion) | December 31, 2024 (RMB billion) | | :--- | :--- | :--- | | Total Borrowings | 2.67 | 2.37 | [Capital Gearing Ratio](index=10&type=section&id=%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The company's capital gearing ratio was negative as of June 30, 2025 - As of June 30, 2025, the Group's capital gearing ratio was **negative**, calculated as net debt divided by total capital[38](index=38&type=chunk) [Net Cash Generated from Operating Activities](index=10&type=section&id=%E7%B6%93%E7%87%9F%E6%B4%BB%E5%8B%95%E7%94%A2%E7%94%9F%E7%8F%BE%E9%87%91%E6%B7%A8%E9%A1%8D) Net cash generated from operating activities significantly increased, driven by higher deliveries, improved gross margin, and optimized cash flow management Net Cash from Operating Activities Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Increase | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 2.86 | 0.27 | 2.59 | - The improvement in operating cash flow was primarily due to increased product deliveries, optimized gross margin, and enhanced operating cash flow management[39](index=39&type=chunk) [Free Cash Flow](index=10&type=section&id=%E8%87%AA%E7%94%B1%E7%8F%BE%E9%87%91%E6%B5%81) Free cash flow improved significantly, primarily due to increased net cash generated from operating activities Free Cash Flow Comparison | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | Year-on-Year Increase | | :--- | :--- | :--- | :--- | | Free Cash Flow | 0.86 | (0.48) | 1.34 | - The improvement in free cash flow was primarily due to increased net cash generated from operating activities[40](index=40&type=chunk) [Treasury Policy](index=10&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The company may seek equity or debt financing if cash requirements exceed available cash and equivalents - If the company determines its cash requirements exceed the amount of cash and cash equivalents on hand, it may seek to issue equity or debt securities or obtain credit financing[41](index=41&type=chunk) [Pledge of Assets](index=10&type=section&id=%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC) Restricted deposits increased, primarily used as collateral for bank acceptance bills, borrowings, and guarantees for supplier contracts Restricted Deposits Comparison | Indicator | June 30, 2025 (RMB billion) | December 31, 2024 (RMB billion) | Year-on-Year Increase | | :--- | :--- | :--- | :--- | | Restricted Deposits | 4.94 | 1.98 | 149.5% | - Restricted deposits are primarily used for bank acceptance bills, bank loan collateral, customs guarantees, and guarantees for contracts with the Group's suppliers[42](index=42&type=chunk) - The company pledges certain financial assets at fair value through other comprehensive income, land use rights, and property, plant, and equipment as collateral for borrowings and the issuance of bank acceptance bills[42](index=42&type=chunk) [Significant Investments and Capital Asset Plans](index=11&type=section&id=%E6%8C%81%E6%9C%89%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The company had no significant investments or specific plans for major capital asset acquisitions during the reporting period - For the six months ended June 30, 2025, the company had no significant investments (including any investments in investee companies whose value accounted for **5% or more** of the Group's total assets as of June 30, 2025)[43](index=43&type=chunk) - As of June 30, 2025, except as otherwise disclosed, the Group had no specific plans for significant investments and acquisitions of capital assets[44](index=44&type=chunk) [Capital Commitments and Capital Expenditures](index=11&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E5%8F%8A%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital commitments primarily relate to property, plant, and equipment acquisitions, with capital expenditures focused on new factory equipment and production lines Capital Commitments and Capital Expenditures | Indicator | June 30, 2025 (RMB billion) | 2025 H1 (RMB billion) | | :--- | :--- | :--- | | Capital Commitments (Acquisition of Property, Plant and Equipment) | 5.34 | N/A | | Capital Expenditures | N/A | 2.00 | - Capital expenditures were primarily for investments in new factory machinery and equipment and the introduction of new vehicle production lines in existing factories[45](index=45&type=chunk) [Contingent Liabilities](index=11&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) The company had no significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the company had no significant contingent liabilities[46](index=46&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=11&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) The company did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - For the six months ended June 30, 2025, the company did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[47](index=47&type=chunk) [Non-IFRS Measures](index=11&type=section&id=%E9%9D%9E%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F) The company uses adjusted net profit (non-IFRS) to provide a clearer view of operational performance by excluding share-based payment expenses - The company uses adjusted net profit (non-IFRS) as an additional financial measure to eliminate the potential impact of share-based payment expenses, aiding in the comparison of operating performance[48](index=48&type=chunk) Reconciliation of Net Profit to Adjusted Net Profit | Indicator | 2025 H1 (RMB billion) | 2024 H1 (RMB billion) | | :--- | :--- | :--- | | Net Profit | 0.03 | (2.21) | | Add: Share-based Payment Expenses | 0.30 | 0.19 | | Adjusted Net Profit (Non-IFRS) | 0.33 | (2.02) | [Risk Management](index=12&type=section&id=%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) Management assessed key risks, including foreign exchange and interest rate exposures, and continues to monitor them without current hedging measures [Foreign Exchange Risk](index=12&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The company primarily operates in RMB and currently faces no significant direct foreign exchange risk, with no hedging instruments held - The company uses RMB as its functional currency and currently does not incur significant direct foreign exchange risk[50](index=50&type=chunk) - As of June 30, 2025, the company did not hold any financial instruments for hedging purposes[50](index=50&type=chunk) [Interest Rate Risk](index=12&type=section&id=%E5%88%A9%E7%8E%87%E9%A2%A8%E9%9A%AA) The company's interest rate risk primarily stems from borrowings, with no hedging instruments currently employed - The Group's interest rate risk primarily arises from borrowings, with floating-rate borrowings exposing the Group to cash flow interest rate risk and fixed-rate borrowings exposing it to fair value interest rate risk[51](index=51&type=chunk) - For the six months ended June 30, 2025, the Group did not use any interest rate swap contracts or other financial instruments to hedge its interest rate risk[51](index=51&type=chunk) [Employees and Remuneration Policy](index=13&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, Leapmotor employed 21,656 full-time staff, offering comprehensive training, competitive compensation, statutory benefits, and share incentive plans - As of June 30, 2025, the Group had **21,656 full-time employees**, most of whom are located in Zhejiang Province, China[52](index=52&type=chunk) - The Group primarily recruits employees through campus recruitment fairs, online recruitment, internal referrals, and recruitment agencies, providing safety awareness, quality awareness, and corporate culture training for R&D and manufacturing staff, and implementing a comprehensive training system for all employees[52](index=52&type=chunk) - The Group offers competitive remuneration and a dynamic work environment, participating in various government statutory employee welfare plans, including social insurance (pension, medical, unemployment, work injury, and maternity insurance) and housing provident fund, in addition to purchasing employer liability insurance and supplementary commercial health insurance[52](index=52&type=chunk) - To recognize the contributions of key employees and incentivize their further development of the company, two share award schemes and one pre-IPO share option scheme have been adopted[52](index=52&type=chunk) [Other Corporate Governance Information](index=13&type=section&id=%E5%85%B6%E4%BB%96%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E4%BF%A1%E6%81%AF) The company adhered to corporate governance codes, with the Board reviewing the combined Chairman/CEO role, and reported no listed securities transactions or interim dividends, while ensuring director compliance and audit committee oversight [Purchase, Redemption or Sale of Listed Securities](index=13&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E8%B4%96%E5%9B%9E%E6%88%96%E5%87%BA%E5%94%AE%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period - 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, nor did they hold any treasury shares[53](index=53&type=chunk) [Compliance with Corporate Governance Code](index=13&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complied with the Corporate Governance Code, with the exception of the combined Chairman and CEO roles, which the Board deems efficient - The company complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the reporting period and up to the date of this announcement, except for code provision C.2.1[54](index=54&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Zhu Jiangming; the Board believes this arrangement ensures consistent leadership within the company, enhancing the Group's overall strategic planning effectiveness and efficiency, and will continue to review and consider separation at an appropriate time[55](index=55&type=chunk) [Dividends](index=14&type=section&id=%E8%82%A1%E6%81%AF) The Board did not recommend the declaration of any interim dividends for the reporting period - The Board did not recommend the declaration of any interim dividends for the reporting period[56](index=56&type=chunk) [Directors' Securities Transactions](index=14&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) All directors confirmed full compliance with the standard code for securities transactions, and the company implemented policies for handling inside information - The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all directors confirmed full compliance with all relevant requirements during the reporting period and up to the date of this announcement[57](index=57&type=chunk) - The company also implemented policies for handling and disseminating inside information, ensuring relevant personnel are informed on a need-to-know basis and reasonable measures are taken to maintain confidentiality[57](index=57&type=chunk) [Audit Committee](index=15&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising independent non-executive directors, reviewed the Group's unaudited interim condensed consolidated financial information - The Audit Committee (comprising Mr. Shen Linhua, Mr. Fu Yuwu, and Ms. Wan Jiale, all independent non-executive directors) reviewed the Group's unaudited interim condensed consolidated financial information for the six months ended June 30, 2025[58](index=58&type=chunk) [Independent Auditor's Review](index=15&type=section&id=%E7%8D%A8%E7%AB%8B%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%AF%A9%E9%96%B1) The interim results for the six months ended June 30, 2025, were reviewed by PricewaterhouseCoopers in accordance with HKSRS 2410 - The interim results for the six months ended June 30, 2025, were unaudited but reviewed by PricewaterhouseCoopers, the Group's auditor, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[59](index=59&type=chunk) [Events After Reporting Period](index=15&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant post-reporting period events occurred other than those disclosed in the announcement - Except as otherwise disclosed in this announcement, no significant events occurred after June 30, 2025[60](index=60&type=chunk) [Interim Condensed Consolidated Financial Statements](index=16&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents Leapmotor Technology's unaudited interim condensed consolidated financial statements for H1 2025, including comprehensive income, financial position, equity changes, and cash flows [Interim Condensed Consolidated Statement of Comprehensive Income/(Loss)](index=16&type=section&id=%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%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E8%A1%A8) This statement details the Group's revenue, costs, and profit/loss, showing a significant turnaround to profitability for the period Summary of Interim Condensed Consolidated Statement of Comprehensive Income/(Loss) | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Revenue | 24,249,601 | 8,845,408 | | Cost of Sales | (20,823,968) | (8,745,183) | | Gross Profit | 3,425,633 | 100,225 | | Selling Expenses | (1,405,355) | (902,653) | | Administrative Expenses | (789,558) | (435,015) | | R&D Expenses | (1,894,331) | (1,221,285) | | Operating Loss | (88,630) | (2,395,029) | | Finance Income - Net | 110,430 | 189,126 | | Profit/(Loss) Before Income Tax | 33,023 | (2,211,720) | | Profit/(Loss) for the Period Attributable to Equity Holders of the Company | 33,030 | (2,211,736) | | Basic Earnings/(Loss) Per Share (RMB) | 0.02 | (1.65) | | Total Comprehensive Income/(Loss) for the Period Attributable to Equity Holders of the Company | 40,256 | (2,247,421) | [Interim Condensed Consolidated Statement of Financial Position](index=18&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) This statement presents the Group's assets, liabilities, and equity as of June 30, 2025, reflecting its financial health and structure Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 18,655,444 | 11,193,878 | | Current Assets | 27,635,055 | 26,452,642 | | **Total Assets** | **46,290,499** | **37,646,520** | | **Equity** | | | | Total Equity | 13,008,073 | 10,070,666 | | **Liabilities** | | | | Non-current Liabilities | 3,123,530 | 2,600,938 | | Current Liabilities | 30,158,896 | 24,974,916 | | **Total Liabilities** | **33,282,426** | **27,575,854** | | **Total Equity and Liabilities** | **46,290,499** | **37,646,520** | [Interim Condensed Consolidated Statement of Changes in Equity](index=20&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement outlines the changes in the Group's equity components over the reporting periods, including share capital, reserves, and accumulated losses Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator (RMB thousand) | Share Capital | Reserves | Accumulated Losses | Total | | :--- | :--- | :--- | :--- | :--- | | January 1, 2024 | 1,336,966 | 25,057,804 | (13,896,574) | 12,498,196 | | June 30, 2024 (Unaudited) | 1,336,966 | 25,217,592 | (16,108,310) | 10,446,248 | | January 1, 2025 | 1,336,966 | 25,451,070 | (16,717,370) | 10,070,666 | | June 30, 2025 (Unaudited) | 1,407,179 | 28,285,234 | (16,684,340) | 13,008,073 | [Interim Condensed Consolidated Statement of Cash Flows](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E8%A1%A8) This statement summarizes the Group's cash flows from operating, investing, and financing activities, reflecting changes in cash and cash equivalents Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 2,858,168 | 267,554 | | Net Cash Used in Investing Activities | (5,476,764) | (2,460,099) | | Net Cash from/(Used in) Financing Activities | 2,707,554 | (345,475) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 88,958 | (2,538,020) | | Cash and Cash Equivalents at End of Period | 6,465,338 | 9,197,853 | [Notes to the Interim Condensed Consolidated Financial Information](index=22&type=section&id=I%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%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes to the interim financial statements, covering significant changes, segment and revenue data, expenses, income tax, EPS, dividends, inventories, receivables, payables, and borrowings [Significant Changes During the Reporting Period](index=22&type=section&id=1%20%E6%96%BC%E6%9C%AC%E5%A0%B1%E5%91%8A%E6%9C%9F%E7%9A%84%E9%87%8D%E5%A4%A7%E8%AE%8A%E5%8B%95) The Group primarily operates in China's new energy vehicle sector, with no significant climate-related or emerging business risks identified - The Group is primarily engaged in the production, research and development, and sales of new energy vehicles in the People's Republic of China ("China")[68](index=68&type=chunk) - The Group has reviewed its climate-related risks and other emerging business risks and has not identified any risks that would have a significant impact on the Group's financial performance or position as of June 30, 2025[68](index=68&type=chunk) - As of June 30, 2025, the Group had sufficient working capital and committed financial facilities available for its operating activities and ongoing investment commitments[68](index=68&type=chunk) [Segment and Revenue Information](index=22&type=section&id=2%20%E5%88%86%E9%83%A8%E5%8F%8A%E6%94%B6%E7%9B%8A%E8%B3%87%E6%96%99) This section details the Group's revenue breakdown by geographical region and category, along with contract liabilities and assets [Revenue by Geographical Region](index=22&type=section&id=%E6%8C%89%E5%9C%B0%E5%8D%80%E5%8A%83%E5%88%86%E7%9A%84%E6%94%B6%E7%9B%8A) Revenue is primarily generated from mainland China, with growing contributions from Europe and other regions Revenue by Geographical Region | Region (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Mainland China | 22,288,250 | 8,781,778 | | Europe | 1,849,945 | 63,630 | | Others | 111,406 | – | | **Total** | **24,249,601** | **8,845,408** | [Revenue for the Reporting Period](index=23&type=section&id=%E6%96%BC%E5%A0%B1%E5%91%8A%E6%9C%9F%E7%9A%84%E6%94%B6%E7%9B%8A) Revenue is primarily derived from the sale of vehicles and components, with a smaller portion from services, and no single customer accounts for over 10% of total revenue Revenue by Category | Revenue Category (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Sales of Vehicles, Components and Others (recognized at a point in time) | 24,057,938 | 8,836,298 | | Provision of Services (recognized over time) | 191,663 | 9,110 | | **Total** | **24,249,601** | **8,845,408** | - Revenue from transactions with any single external customer did not account for **10% or more** of the Group's total revenue[72](index=72&type=chunk) [Contract Liabilities](index=23&type=section&id=%E5%90%88%E7%B4%84%E8%B2%A0%E5%82%B5) Contract liabilities primarily relate to value-added services and customer points, recognized as revenue upon service provision or goods transfer Contract Liabilities | Contract Liability Category (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current (Provision of Services) | 357,447 | 285,310 | | Current (Provision of Services and Customer Points) | 108,773 | 161,419 | | **Total** | **466,220** | **446,729** | - Contract liabilities primarily include various value-added services in vehicle sales contracts (such as one-year extended warranty or lifetime warranty, connected car services, OTA firmware upgrades, lifetime free roadside assistance, lifetime free pick-up and delivery for maintenance, and others) and customer points, which are distinct from vehicle sales and recognized as revenue when services are provided or goods are transferred[73](index=73&type=chunk) [Unsatisfied Performance Obligations](index=24&type=section&id=%E6%9C%AA%E9%81%94%E6%88%90%E5%B1%A5%E7%B4%84%E8%B2%AC%E4%BB%BB) The total transaction price allocated to unsatisfied performance obligations is expected to be recognized as revenue over one to eight years Total Transaction Price Allocated to Unsatisfied Performance Obligations | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Transaction Price Allocated to Partially or Wholly Unsatisfied Performance Obligations at Period/Year-end | 768,880 | 446,729 | - Management expects that approximately **RMB 108.8 million** of the transaction price allocated to unsatisfied performance obligations as of June 30, 2025, will be recognized as revenue within one year, with the remaining approximately **RMB 660.1 million** recognized within one to eight years[75](index=75&type=chunk) [Contract Assets](index=24&type=section&id=%E5%90%88%E7%B4%84%E8%B3%87%E7%94%A2) Contract assets, net of loss allowance, were recorded as of June 30, 2025 Contract Assets | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contract Assets | 68,202 | – | | Loss Allowance | (1,005) | – | | **Net** | **67,197** | **–** | [Other Income - Net](index=24&type=section&id=3%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%EF%BC%8D%E6%B7%A8%E9%A1%8D) Other income, net, increased, primarily driven by fair value gains on financial assets Other Income - Net | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net Fair Value Gains on Financial Assets at Fair Value Through Profit or Loss | 87,794 | 50,958 | | Net Loss on Disposal of Property, Plant and Equipment and Right-of-use Assets | (1,533) | (26,699) | | Net Foreign Exchange Loss | (14,915) | (2,006) | | Other Items | (3,414) | (956) | | **Total** | **67,932** | **21,297** | [Expenses by Nature](index=25&type=section&id=%E8%B2%BB%E7%94%A8%E6%80%A7%E8%B3%AA%E5%88%86%E9%A1%9E) This section categorizes expenses by nature, including changes in inventories, raw materials, employee benefits, and marketing costs Summary of Expenses by Nature | Expense Category (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Changes in Inventories of Finished Goods | 412,747 | 214,124 | | Raw Materials and Consumables Used | 18,615,129 | 8,035,177 | | Employee Benefit Expenses | 2,974,680 | 1,433,410 | | Advertising and Promotion Expenses | 856,836 | 541,034 | | Transportation and Storage Costs | 528,306 | 154,161 | | Depreciation and Amortization Expenses | 403,926 | 320,755 | | Three Guarantees Expenses | 332,256 | 228,558 | | Design and Development Expenses | 246,368 | 180,189 | | Legal, Consulting and Other Professional Service Fees | 109,617 | 42,850 | | Others | 407,664 | 154,680 | | **Total** | **24,913,212** | **11,304,136** | [Income Tax](index=25&type=section&id=5%20%E6%89%80%E5%BE%97%E7%A8%85) The company and its subsidiaries benefit from preferential tax rates for high-tech enterprises, with no significant impact from BEPS 2.0 identified Current Income Tax | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Current Income Tax (Reversal)/Expense | (7) | 16 | - The company and its subsidiary, Zhejiang Lingsheng Power Technology Co., Ltd., enjoy a preferential income tax rate of **15%** as high-tech enterprises[80](index=80&type=chunk) - Other subsidiaries in mainland China are subject to a statutory Chinese enterprise income tax rate of **25%**, while Hong Kong-incorporated subsidiaries are subject to a Hong Kong profits tax rate of **16.5%**[80](index=80&type=chunk) - Enterprises engaged in R&D activities are entitled to deduct **200%** of their R&D expenses as tax-deductible items ("super deduction") starting from 2021[81](index=81&type=chunk) - The impact of the BEPS 2.0 global minimum tax framework (Pillar Two) has been assessed, and no significant risks were identified or confirmed for the period ended June 30, 2025[81](index=81&type=chunk) [Earnings/(Loss) Per Share](index=26&type=section&id=6%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89) This section details the calculation of basic and diluted earnings per share, reflecting the company's profitability [Basic Earnings/(Loss) Per Share](index=26&type=section&id=%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E7%9B%88%E5%88%A9%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Basic earnings per share turned positive, reflecting the company's improved financial performance Basic Earnings/(Loss) Per Share | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Ordinary Equity Holders of the Company | 33,030 | (2,211,736) | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 1,361,793 | 1,336,966 | | Basic Earnings/(Loss) Per Share (expressed in RMB per share) | 0.02 | (1.65) | [Diluted Earnings/(Loss) Per Share](index=27&type=section&id=%E6%AF%8F%E8%82%A1%E6%94%A4%E8%96%84%E7%9B%88%E5%88%A9%E2%88%95%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Diluted earnings per share also turned positive, with no anti-dilutive effect from potential ordinary shares in the prior loss-making period - As the Group incurred a loss for the six months ended June 30, 2024, potential ordinary shares were not included in the calculation of diluted loss per share because their inclusion would have been anti-dilutive. Therefore, diluted loss per share for the six months ended June 30, 2024, was the same as basic loss per share[84](index=84&type=chunk) Diluted Earnings/(Loss) Per Share | Indicator (RMB thousand) | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Ordinary Equity Holders of the Company | 33,030 | (2,211,736) | | Weighted Average Number of Ordinary Shares Used in Calculating Diluted Earnings Per Share (thousand shares) | 1,371,663 | Not Applicable | | Diluted Earnings/(Loss) Per Share (expressed in RMB per share) | 0.02 | (1.65) | [Dividends](index=27&type=section&id=7%20%E8%82%A1%E6%81%AF) The company did not declare or pay any dividends for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the company did not declare or pay any dividends[86](index=86&type=chunk) [Inventories](index=27&type=section&id=8%20%E5%AD%98%E8%B2%A8) Inventory, comprising raw materials and finished goods, increased, with a portion recognized as cost of sales and impairment allowance Composition of Inventories | Inventory Category (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw Materials and Spare Parts | 2,038,778 | 1,063,847 | | Finished Goods | 587,738 | 1,000,485 | | Less: Impairment Allowance | (36,452) | (41,716) | | **Net** | **2,590,064** | **2,022,616** | - Raw materials primarily include materials for mass production and spare parts for after-sales service. Finished goods include vehicles ready for shipment from production plants, vehicles in transit to fulfill customer orders, and new vehicles available for immediate sale at the Group's sales and service centers[88](index=88&type=chunk) - For the six months ended June 30, 2025, inventories recognized as cost of sales amounted to approximately **RMB 18.655 billion**, and inventory impairment allowance recognized was approximately **RMB 33.206 million**[88](index=88&type=chunk) [Trade and Bills Receivables](index=28&type=section&id=9%20%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) Trade and bills receivables increased, primarily consisting of amounts due from related parties, government subsidies, and customer receivables Trade and Bills Receivables | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bills Receivable | 21,518 | 348,857 | | Total Trade Receivables | 2,870,083 | 1,638,423 | | Impairment Allowance | (8,429) | (6,008) | | **Total** | **2,883,172** | **1,981,272** | - Trade receivables primarily include amounts due from related parties, government subsidies for promoting new energy vehicles, and amounts due from customers[89](index=89&type=chunk) Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 2,734,947 | 1,536,446 | | 6 months to 1 year | 131,996 | 22,985 | | 1 to 2 years | 2,240 | 6,230 | | Over 2 years | 900 | 72,762 | - Bills receivable have maturity periods ranging from **3 to 6 months**[90](index=90&type=chunk) [Borrowings](index=29&type=section&id=10%20%E5%80%9F%E6%AC%BE) Total borrowings increased, comprising both non-current and current portions, secured by various assets and subject to floating interest rates Composition of Borrowings | Borrowing Category (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Borrowings | 1,212,425 | 1,108,437 | | Current Borrowings | 1,455,159 | 1,265,715 | | **Total Borrowings** | **2,667,584** | **2,374,152** | - Total long-term bank borrowings amounted to approximately **RMB 1.532 billion**, of which approximately **RMB 418 million** is due for repayment within one year from the statement of financial position date, bearing floating annual interest rates ranging from **2.65% to 2.95%**, and secured by buildings, construction in progress, land use rights, bank time deposits, and restricted cash[92](index=92&type=chunk) - Long-term other borrowings include a **24-month** borrowing from a finance lease company and a **10-year** and a **14-month** third-party borrowing, partly obtained through sale and leaseback arrangements, and secured by related property, plant, and equipment[94](index=94&type=chunk) - Current borrowings include a **9-month** borrowing of **RMB 1 billion** from a related party, bearing an effective annual interest rate of **2.50%**[94](index=94&type=chunk) [Trade and Bills Payables](index=31&type=section&id=11%20%E8%B2%A3%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) Trade and bills payables increased, primarily for materials, with bills payable secured by restricted cash and short-term bank deposits Trade and Bills Payables | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables - Amounts Payable for Materials | 11,854,381 | 11,575,839 | | Bills Payable - Amounts Payable for Materials | 11,473,385 | 7,327,573 | | **Total** | **23,327,766** | **18,903,412** | - Bills payable have maturity periods ranging from **3 to 6 months**, and their issuance is secured by certain restricted cash, short-term bank time deposits, and bills receivable[95](index=95&type=chunk) - Due to their short-term nature, the carrying amounts of trade payables approximate their fair values[96](index=96&type=chunk) Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 11,628,151 | 11,476,516 | | 6 months to 1 year | 147,770 | 3,293 | | Over 1 year | 78,460 | 96,030 | [Other Payables and Accrued Expenses](index=32&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8) Other payables and accrued expenses increased, covering advertising, rebates, freight, salaries, and payables for property, plant, and equipment Other Payables and Accrued Expenses | Category (RMB thousand) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accrued Expenses - Advertising and Promotion Expenses | 979,551 | 976,158 | | Accrued Expenses - Rebates Payable | 691,461 | 561,917 | | Accrued Expenses - Freight | 273,002 | 23,611 | | Salaries and Welfare Payable | 709,232 | 650,991 | | Amounts Payable for Acquisition of Property, Plant and Equipment | 449,691 | 418,951 | | Amounts Payable for Design and Development Services | 374,536 | 341,620 | | Deposits from Suppliers and Dealers | 313,420 | 247,508 | | Other Taxes Payable | 322,127 | 235,351 | | Others | 257,782 | 269,272 | | **Total** | **4,370,802** | **3,725,379** | [Basis of Preparation](index=32&type=section&id=13%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This section outlines the basis for preparing the financial statements and assesses the impact of new and revised accounting standards [New Standards and Interpretations](index=32&type=section&id=%E6%96%B0%E8%A8%82%E6%BA%96%E5%89%87%E5%8F%8A%E8%A8%AD%E9%87%8B) The Group assessed new and revised standards, concluding no significant impact on its interim results or financial position - The Group has assessed the adoption of new and revised standards applicable to the reporting period and concluded that they have no significant impact on the Group's interim results and financial position[100](index=100&type=chunk) - New or revised standards issued but not yet effective for financial years beginning on January 1, 2025, and not early adopted by the Group, include IAS 21 (Amendment) "Lack of Exchangeability" (effective January 1, 2025), which are not expected to have a significant impact on the Group's financial performance and position[102](index=102&type=chunk)[104](index=104&type=chunk) [Supplementary Information](index=34&type=section&id=%E8%A3%9C%E5%85%85%E4%BF%A1%E6%81%AF) This section provides details on the interim results publication, upcoming earnings call, company overview, and forward-looking statements, cautioning investors about potential risks [Publication of Interim Results Announcement and Interim Report](index=34&type=section&id=%E5%88%8A%E7%99%BC%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) The interim results announcement and report are published on the HKEX and company websites, with printed copies sent to shareholders who requested them - This results announcement has been published on the HKEX website www.hkexnews.hk and the company's website www.leapmotor.com[105](index=105&type=chunk) - The company's interim report will be published on the aforementioned HKEX and company websites and will be dispatched in due course to shareholders who have elected to receive printed copies of corporate communications[105](index=105&type=chunk) [Earnings Conference Call](index=34&type=section&id=%E6%A5%AD%E7%B8%BE%E9%9B%BB%E8%A9%B1%E6%9C%83%E8%AD%B0) Management will host an earnings conference call via webcast on August 18, 2025, at 7:00 PM Beijing/Hong Kong time - The company's management will host an earnings conference call via webcast on Monday, August 18, 2025, at **7:00 PM Beijing/Hong Kong time**, to discuss the Group's interim results for the six months ended June 30, 2025[106](index=106&type=chunk) - Investors wishing to participate in the earnings conference call are requested to complete online registration using the designated link at least **20 minutes** before the call begins and may submit relevant questions to the designated email address[106](index=106&type=chunk) [About the Company](index=34&type=section&id=%E9%97%9C%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8) Leapmotor is a Chinese new energy vehicle company with full-stack R&D capabilities, offering a comprehensive product matrix and expanding globally through strategic partnerships - Leapmotor is a Chinese new energy vehicle company with full-stack R&D capabilities in core new energy vehicle technologies, covering intelligent electric vehicle design, R&D, manufacturing, assisted driving, motor and electronic control systems, battery system development, and cloud-based connected car solutions[107](index=107&type=chunk) - As a technology-driven enterprise, Leapmotor consistently adheres to full-stack R&D of core technologies, self-developing and manufacturing high-value-added core components accounting for **65% of vehicle costs**, and has successively launched industry-first intelligent electric technologies such as the **eight-in-one electric drive**, the first mass-produced **CTC battery-chassis integration technology**, and the first **"four-domain-in-one" central integrated electronic and electrical architecture**[107](index=107&type=chunk) - Leapmotor's product line covers A, B, C, and D series, forming a complete product matrix including sedans, SUVs, and MPVs, with current models including B01, B10, C16, C10, C11, C01, T03, offering both pure electric and extended-range dual power options[107](index=107&type=chunk) - In 2023, Stellantis Group invested in Leapmotor. In May 2024, both parties officially established Leapmotor International joint venture to expand into international markets, with Leapmotor's asset-light "reverse globalization" pioneering a new paradigm for Chinese automakers' overseas expansion, leveraging Stellantis Group's international channel resources to set new records for new energy vehicle brands' global reach[107](index=107&type=chunk) - As of June 2025, Leapmotor's cumulative deliveries exceeded **800,000 units**, ranking among the top tier of new energy vehicle brands[107](index=107&type=chunk) [Forward-Looking Statements](index=35&type=section&id=%E5%89%8D%E7%9E%BB%E6%80%A7%E9%99%B3%E8%BF%B0) This section contains forward-looking statements based on assumptions about future business strategies and operating environments, subject to known and unknown risks - This announcement contains forward-looking statements, including but not limited to statements regarding our future financial condition, strategies, plans, objectives, goals, targets, and the future development of markets in which we participate or seek to participate, which are based on assumptions about our current and future business strategies and future operating environments[108](index=108&type=chunk) - These forward-looking statements involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control, that may cause our actual results, performance, or achievements, or industry results, to differ materially from those expressed or implied by the forward-looking statements[108](index=108&type=chunk) - The company undertakes no obligation to update any forward-looking statements, and shareholders and potential investors are urged to exercise caution when dealing in the company's shares[108](index=108&type=chunk)[109](index=109&type=chunk) [Board Statement](index=35&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) This statement confirms the announcement's release by the Board, listing the current composition of the Board of Directors - This announcement is published by order of the Board of Directors of Zhejiang Leapmotor Technology Co., Ltd. by Mr. Zhu Jiangming, Founder, Chairman, and Chief Executive Officer[110](index=110&type=chunk) - As of the date of this announcement, the Board comprises executive directors Mr. Zhu Jiangming, Mr. Cao Li, and Mr. Zhou Hongtao; non-executive directors Mr. Grégoire Olivier, Mr. Douglas Ostermann, and Mr. Jin Yufeng; and independent non-executive directors Mr. Fu Yuwu, Ms. Wan Jiale, and Mr. Shen Linhua[111](index=111&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不會因本公告全部或任何部份內容而産生或因倚賴該等內容而 引致的任何損失承擔任何責任。 中石化石油工程技術服務股份有限公司 （在中華人民共和國註冊成立之股份有限公司） (股份代號：1033) 二零二五年半年度業績公告 中石化石油工程技術服務股份有限公司（「本公司」）董事會（「董事會」）謹此呈上本公司及其附 屬公司（「本集團」）截至二零二五年六月三十日止六個月之半年度業績。 1. 重要提示 1.1本公司董事會、監事會（「監事會」）及其董事、監事、高級管理人員保證本公告所載資料不存在 任何虛假記載、誤導性陳述或者重大遺漏，並對其內容的真實性、準確性和完整性承擔個別及連帶責 任。 1.2 本公司按中國企業會計準則及按國際財務報告準則編制的二零二五年半年度財務報告均未經審計； 本公司按國際財務報告準則編制的二零二五年半年度財務報告已經香港立信德豪會計師事務所有限公 司審閱。 1.3 本公司董事長吳柏志先生，總經理張建闊先生，總會計師程中義先生，財務資產部經理張雪平女 士聲明：保證本公告中財務報告的 ...

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。 Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd. 四川科倫博泰生物醫藥股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：6990） 截 至2025年6月30日止六個月 之 中期業績公告 董事會欣然宣佈本集團截至2025年6月30日止六個月的未經審計簡明綜 合 中 期 業 績，連 同 截 至2024年6月30日 止 六 個 月 的 比 較 數 字。本 公 司 獨 立 核數師已根據香港會計師公會頒佈的香港審閱工作準則第2410號「實 體 獨 立 核 數 師 審 閱 中 期 財 務 資 料」對 中 期 財 務 資 料 進 行 審 閱。除 本 公 告 另 有 界 定 外，本 公 告 所 用 詞 彙 與 招 股 章 程 所 界 定 者 ...

（於開曼群島註冊成立的有限公司，並以「美圖之家」名稱於香港經營業務） （股份代號：1357） 美图公司 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示概不會就因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Meitu, Inc. (1)截至2025年6月30日止六個月 中期業績公告 (2)自股份溢價賬派付中期股息 (3)建議修訂組織章程細則及採納新組織章程細則 (4)暫停辦理股份過戶登記手續；及 (5)非執行董事辭任 美图公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司、其子公司及合併聯屬實體 （統稱「本集團」）截至2025年6月30日止六個月的未經審核合併業績。 在本公告中，「美圖」、「我們」及「我們的」指本公司（定義見上文）及本集團（定義見上文）（視乎 文義所指）。 主要摘要 * 歸屬母公司權益持有人 1 • 2025年6月的月活躍用戶（「MAU」）達2.80億，同比增長8.5%，較2024年12月實現的 6.7%同比增速有所提升。付費訂閱用戶數達約1,540萬，其中約1,360萬來自 ...

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。 ANDRE Yantai North Andre Juice Co., Ltd.* 02218 中期業績公佈 截至二零二五年六月三十日止六個月 中期業績（未經審核） 烟台北方安德利果汁股份有限公司（「本公司」）董事會（「董事會」）欣然提呈本公司及其附屬 公司（合稱「本集團」）截至二零二五年六月三十日止六個月的未經審核合併業績，連同二零 二四年同期之比較數據如下： 1 ANDRE Yantai North Andre Juice Co., Ltd.* 02218 合併資產負債表－未經審核 2025年6月30日 （除特別註明外，金額單位均為人民幣元） | | 附註五 | 2025年6月30日 | 2024年12月31日 | | --- | --- | --- | --- | | 資產 | | | | | 流動資產： | | | | | 貨幣資金 | 註釋1 | 959,110,291.37 | 236,45 ...

[Supplemental Announcement to the 2024 Annual Report](index=1&type=section&id=Supplemental%20Announcement%20to%20the%202024%20Annual%20Report) This supplemental announcement provides detailed disclosures on continuing connected transactions, related party transactions, and compliance with listing rules, clarifying information from the 2024 annual report [1. Continuing Connected Transactions](index=1&type=section&id=1.%20Continuing%20Connected%20Transactions) This section details the main terms, pricing policies, and proposed annual caps for continuing connected transactions with Crown City Group and Jun Guang Group [a. Crown City Product and Service Master Framework Agreement](index=1&type=section&id=a.%20Crown%20City%20Product%20and%20Service%20Master%20Framework%20Agreement) This agreement between the company and controlling shareholder Crown City Group covers mutual provision of watches, accessories, and labor services, outlining pricing policies and annual transaction caps until December 31, 2025 - The contracting parties are the Company and Crown City Group (the Company's controlling shareholder)[3](index=3&type=chunk)[4](index=4&type=chunk) - The agreement period is from January 1, 2023, to December 31, 2025[4](index=4&type=chunk) - Transaction nature includes Crown City Group providing watches, accessories, and watch labor services to the Group, and the Group providing watches, accessories, and watch labor services to Crown City Group[6](index=6&type=chunk) - Pricing policy requires product and service unit prices to refer to price lists generally applicable to all independent third parties, determined through fair negotiation and on normal commercial terms, and not less favorable than current market prices for similar categories and quality of products or services provided by independent third parties[5](index=5&type=chunk)[6](index=6&type=chunk) Proposed Annual Caps and Actual Balances for Crown City Product and Service Master Framework Agreement | Period / Fiscal Year | Proposed Annual Cap (HKD) | Actual Balance (HKD) | | :------------------- | :------------------------ | :------------------- | | **Products** | | | | For the year ended December 31, 2023 | 9,500,000 | 640,000 | | For the year ended December 31, 2024 | 9,500,000 | 5,880,000 | | For the year ended December 31, 2025 | 9,500,000 | 9,500,000 | | **Services** | | | | For the year ended December 31, 2023 | 500,000 | 484,000 | | For the year ended December 31, 2024 | 500,000 | 500,000 | | For the year ended December 31, 2025 | 500,000 | 500,000 | [b. Jun Guang Processing Service Master Framework Agreement](index=3&type=section&id=b.%20Jun%20Guang%20Processing%20Service%20Master%20Framework%20Agreement) This agreement between the company and Jun Guang Group covers the provision of watch component processing services by the Group, specifying commercial terms and annual caps until September 30, 2024 - The contracting parties are the Company and Jun Guang Group[9](index=9&type=chunk) - The agreement period is from December 1, 2023, to September 30, 2024[9](index=9&type=chunk) - The subject matter is the Group providing watch component processing services to Jun Guang Group from time to time[10](index=10&type=chunk) - Pricing policy requires service fees and terms to be on normal commercial terms, not less favorable than those available from independent third parties, referencing the Group's general price list for all customers, and compared with at least two similar service transactions with independent third parties[10](index=10&type=chunk)[11](index=11&type=chunk) Proposed Annual Caps and Actual Balances for Jun Guang Processing Service Master Framework Agreement | Period | Proposed Annual Cap (HKD) | Actual Balance (HKD) | | :------------------------- | :------------------------ | :------------------- | | Period from December 1, 2023 to December 31, 2023 | 4,000,000 | 1,792,000 | | Period from January 1, 2024 to September 30, 2024 | 10,000,000 | 3,615,000 | [2. Related Party Transactions](index=5&type=section&id=2.%20Related%20Party%20Transactions) This section clarifies related party transactions, detailing the nature and amounts of transactions with Crown City Group's fellow subsidiaries and Jun Guang Group's associated companies, primarily involving sales, purchases, and leasing [a. Crown City Group](index=5&type=section&id=a.%20Crown%20City%20Group) This section lists specific transactions between the Group and various fellow subsidiaries of Crown City Group for the 2024 fiscal year, including sales, purchases, and leasing, totaling approximately HKD 3.62 million under the Product and Service Master Framework Agreement Transactions with Crown City Group Fellow Subsidiaries (FY2024) | Related Party Name | Relationship | Transaction Nature | HKD Thousand | | :------------------------------------- | :---------------- | :----------------- | :----------- | | Guangdong Juxin Watch Co., Limited | Fellow Subsidiary | Sales of Goods | 975 | | Shenzhen Permanence Commerce Co., Limited | Fellow Subsidiary | Sales of Goods | 213 | | Corum Watches Malaysia SND BHD | Fellow Subsidiary | Sales of Goods | 11 | | Corum Watches Singapore Pte. Ltd | Fellow Subsidiary | Sales of Goods | 290 | | Corum (Hong Kong) Limited | Fellow Subsidiary | Rental Income | 300 | | Jilin Dayou Watch Limited | Fellow Subsidiary | Sales of Goods | 201 | | EBOHR Luxuries International Co., Limited | Fellow Subsidiary | Sales of Goods | 84 | | | | Rental Expense | 546 | | Difushi Watch (Shenzhen) Co., Limited | Fellow Subsidiary | Purchases of Goods | 12 | | Montres Corum Sàrl | Fellow Subsidiary | Sales of Goods | 875 | | Zhuhai Rossini Watch Industry Limited | Fellow Subsidiary | Sales of Goods | 58 | | PAMA Precision Manufacturing Ltd. | Fellow Subsidiary | Purchases of Goods | 55 | - For the year ended December 31, 2024, the total value of product and service transactions under the Product and Service Master Framework Agreement was approximately **HKD 3,620,000**[16](index=16&type=chunk) [b. Jun Guang Group](index=6&type=section&id=b.%20Jun%20Guang%20Group) This section lists specific transactions between the Group and various associated companies of Jun Guang Group for the 2024 fiscal year, including sales and purchases, totaling approximately HKD 6.385 million under the Processing Service Master Framework Agreement for the nine months ended September 30, 2024 Transactions with Jun Guang Group Associated Companies (FY2024) | Related Party Name | Relationship | Transaction Nature | HKD Thousand | | :------------------------------------- | :---------------- | :----------------- | :----------- | | Shenzhen Crown City Jinxi Watch Industry Co., Limited | Associated Company | Sales of Goods | 1,809 | | | | Purchases of Goods | 51 | | Fair Future Industrial Limited | Associated Company | Sales of Goods | 3,965 | | Bestimever Limited | Associated Company | Purchases of Goods | 188 | | Qinzhou Jintai Precision Hardware Products Co., Limited | Associated Company | Sales of Goods | 343 | | | | Purchases of Goods | 29 | | **Total** | | | **6,385** | - For the nine months ended September 30, 2024, the total value of processing service transactions under the Processing Service Master Framework Agreement was approximately **HKD 6,385,000**[17](index=17&type=chunk) Shenzhen Crown City Jinxi Watch Industry Co., Limited Transactions (HKD Thousand) | Period | Amount | | :--------------- | :----- | | Jan-Sep 2024 | 1,809 | | Oct-Dec 2024 | 299 | | **Total** | **2,108** | Fair Future Industrial Limited Transactions (HKD Thousand) | Period | Amount | | :--------------- | :----- | | Jan-Sep 2024 | 3,965 | | Oct-Dec 2024 | 2,255 | | **Total** | **6,220** | [3. Compliance Statement and Board Information](index=6&type=section&id=3.%20Compliance%20Statement%20and%20Board%20Information) The company confirms compliance with Listing Rules Chapter 14A, clarifies that other related party transactions are either not continuing connected transactions or fully exempt, and lists the board of directors - The Company confirms compliance with the relevant provisions of Chapter 14A of the Listing Rules[18](index=18&type=chunk) - Except for continuing connected transactions disclosed in the 'Continuing Connected Transactions' section on page 56 of the annual report, all other related party transactions do not constitute continuing connected transactions or are fully exempt under Chapter 14A of the Listing Rules[19](index=19&type=chunk) - The Board of Directors includes Executive Directors Mr. Teguh Halim and Mr. Kong Lok, Non-executive Director Mr. Xiong Ying, and Independent Non-executive Directors Mr. Yu Chi Kit, Mr. Ng Tsz Yip, and Ms. Xiang Ting[19](index=19&type=chunk)

（於開曼群島註冊成立之有限公司） 網站：www.sinobiopharm.com （股票編號：1177） 截至二零二五年六月三十日止六個月之中期業績公告 | 財務摘要 | | | | | --- | --- | --- | --- | | | 截至六月三十日止六個月 | | | | | 二零二五年 | 二零二四年 | 變動 | | | 人民幣億元 | 人民幣億元 | % | | 收入 | 175.7 | 158.7 | +10.7% | | 毛利率(%) | 82.5% | 82.1% | +0.4百分點 | | （附註1） 銷售及管理費用佔收入比率(%) | 42.9% | 43.1% | -0.2百分點 | | 研發費用佔收入比率(%) | 18.1% | 16.2% | +1.9百分點 | | 來自持續經營業務之歸屬於母公司持有者盈利 | | | | | （附註2） 財務報表所示 | 33.9 | 14.1 | +140.2% | | （附註3） 基本溢利 | 30.9 | 15.4 | +101.1% | | （附註4） 創新產品收入 | 78.0 | 61.3 | +27.2% | | 佔收入 | ...

[Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's total revenue slightly decreased, but profit for the period and total comprehensive income significantly grew, indicating improved profitability [Overview of Statement of Profit or Loss](index=2&type=section&id=Overview%20of%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's total revenue slightly decreased year-on-year, but profit for the period and total comprehensive income both achieved significant growth, indicating improved profitability | Indicator | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Commission and Fee Income | 160,282,624 | 141,299,173 | 13.44% | | Interest Income | 117,922,649 | 72,773,734 | 62.04% | | Net Trading and Investment Income | 120,046,994 | 204,802,065 | -41.38% | | Total Revenue | 398,252,267 | 418,874,972 | -4.92% | | Profit for the Period | 102,931,754 | 88,669,217 | 16.08% | | Basic and Diluted Earnings Per Share | 0.0142 | 0.0182 | -22.00% | - Despite a **4.92%** year-on-year decrease in total revenue, profit for the period increased by **16.08%**, demonstrating improved cost control and efficiency[4](index=4&type=chunk) [Overview of Other Comprehensive Income](index=3&type=section&id=Overview%20of%20Other%20Comprehensive%20Income) The Group's other comprehensive income significantly increased in the first half of 2025, primarily due to fair value changes of equity instruments designated at fair value through other comprehensive income | Indicator | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Other Comprehensive Income for the Period, After Tax | 71,175,065 | 40,664,283 | 75.04% | | Total Comprehensive Income for the Period | 174,106,819 | 129,333,500 | 34.62% | - Fair value changes of equity instruments designated at fair value through other comprehensive income increased from HK$26,021,792 in 2024 to **HK$46,050,894** in 2025[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) The Group's total assets significantly increased, driven by debt investments and current financial assets, while liabilities also rose [Asset Structure](index=4&type=section&id=Asset%20Structure) As of June 30, 2025, the Group's total assets significantly increased, driven primarily by a substantial rise in debt investments measured at amortized cost and current financial assets at fair value through profit or loss | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 2,441,685,200 | 964,100,192 | 153.26% | | Current Assets | 18,459,411,393 | 14,768,665,732 | 24.99% | | Total Assets | 20,901,096,593 | 15,732,765,924 | 32.85% | - Non-current debt investments measured at amortized cost increased by **220%** from HK$690,934,760 to HK$2,210,958,551[6](index=6&type=chunk) - Current financial assets at fair value through profit or loss increased by **43.7%** from HK$4,373,209,742 to HK$6,284,497,750[6](index=6&type=chunk) [Liabilities and Equity Structure](index=5&type=section&id=Liabilities%20and%20Equity%20Structure) The Group's total liabilities significantly increased, driven by repurchase agreements and bank borrowings, leading to a decrease in net current assets and current ratio, and a substantial rise in the gearing ratio. Nevertheless, total equity attributable to ordinary shareholders still grew | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Current Liabilities | 15,106,326,112 | 10,316,187,272 | 46.43% | | Non-current Liabilities | 1,470,835,209 | 1,180,500,199 | 24.59% | | Total Liabilities | 16,577,161,321 | 11,496,687,471 | 44.19% | | Net Assets | 4,323,935,272 | 4,236,078,453 | 2.07% | | Equity Attributable to Ordinary Shareholders | 3,323,935,272 | 3,236,078,453 | 2.71% | - Net current assets decreased by **24.69%** to **HK$3,353.09 million**, and the current ratio decreased from **1.4 times** to **1.2 times**[7](index=7&type=chunk)[45](index=45&type=chunk) - Total bank borrowings increased by **91.29%** to **HK$5,014.30 million**, and the gearing ratio increased from **212%** to **295%**[7](index=7&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the Group's general information, accounting policies, revenue breakdown, segment performance, and financial statement components [1. General Information](index=7&type=section&id=1.%20General%20Information) The Company, incorporated in the Cayman Islands, primarily operates in Hong Kong, offering brokerage, margin financing, corporate finance, asset management, and financial product investment services, with its ultimate holding company being Industrial Securities Co., Ltd - The Company was incorporated in the Cayman Islands on July 21, 2015, with its principal place of business in Hong Kong[9](index=9&type=chunk) - The Group primarily engages in providing brokerage services, margin financing services, corporate finance services, asset management services, and financial products and investments[9](index=9&type=chunk) - The ultimate holding company is Industrial Securities Co., Ltd., listed on the Shanghai Stock Exchange in China[9](index=9&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies](index=7&type=section&id=2.%20Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) This interim financial information is prepared in accordance with HKAS 34 and adopts the same accounting policies as the 2024 annual financial statements, with new HKFRS amendments having no significant impact on the interim condensed consolidated financial statements - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants[10](index=10&type=chunk) - The accounting policies adopted are consistent with those of the 2024 annual consolidated financial statements, except for the initial adoption of amendments to Hong Kong Financial Reporting Standards[11](index=11&type=chunk) - The adoption of HKAS 21 (Amendment) "The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability" had no significant impact on the interim condensed consolidated financial statements[12](index=12&type=chunk) [3. Revenue and Other Income](index=9&type=section&id=3.%20Revenue%20and%20Other%20Income) The Group's revenue sources are diversified, including commission and fee income, interest income, and net trading and investment income. In the first half of 2025, corporate finance commission income grew significantly, while net trading and investment income decreased Revenue Source Analysis | Revenue Category | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Commission and Fee Income | 160,282,624 | 141,299,173 | 13.44% | | Interest Income | 117,922,649 | 72,773,734 | 62.04% | | Net Trading and Investment Income | 120,046,994 | 204,802,065 | -41.38% | | Total Revenue | 398,252,267 | 418,874,972 | -4.92% | - Placement, underwriting, and sub-underwriting commission income (debt securities) from corporate finance increased by **120.37%** from HK$38,682,565 in 2024 to HK$85,240,629 in 2025[13](index=13&type=chunk) - Interest income from financial institutions decreased by **24.99%** from HK$95,264,428 in 2024 to HK$71,563,816 in 2025[16](index=16&type=chunk) [4. Segment Reporting](index=12&type=section&id=4.%20Segment%20Reporting) The Group reports results by business segments including wealth management, corporate finance, asset management, and financial products and investments. In the first half of 2025, corporate finance segment revenue and results grew significantly, while financial products and investments segment revenue and results decreased - The Group's operating segments include wealth management, corporate finance, asset management, financial products and investments, and others[18](index=18&type=chunk) Segment Revenue and Results (First Half 2025) | Segment | Revenue (HKD) | Results (HKD) | | :--- | :--- | :--- | | Wealth Management | 78,540,086 | 71,522,648 | | Corporate Finance | 90,079,806 | 58,764,177 | | Asset Management | 6,936,386 | (10,658,375) | | Financial Products and Investments | 224,573,515 | (15,929,680) | | Others | – | 19,551,839 | | Consolidated Total | 398,252,267 | 123,250,609 | - Corporate finance segment revenue increased by **84.89%** year-on-year, with results growing from HK$10,925,062 in 2024 to **HK$58,764,177** in 2025[19](index=19&type=chunk)[20](index=20&type=chunk) - Financial products and investments segment revenue decreased by **14.50%** year-on-year, with results turning from a profit of HK$10,986,709 in 2024 to a **loss of HK$15,929,680** in 2025[19](index=19&type=chunk)[20](index=20&type=chunk) [5. Profit Before Tax](index=14&type=section&id=5.%20Profit%20Before%20Tax) Profit before tax achieved significant growth, primarily influenced by decreased staff costs, reduced reversal of impairment losses on financial assets, and increased other income Profit Before Tax Components | Item | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Staff Costs | 90,122,845 | 101,204,007 | | Reversal of Impairment Losses on Financial Assets | (2,056,386) | (11,239,922) | | Other Gains or Losses | (52,826,614) | 735,234 | - Staff costs decreased by **11.05%** year-on-year, from HK$101,204,007 to HK$90,122,845[22](index=22&type=chunk) - Exchange gains turned from a loss of HK$1,120,980 in 2024 to a **gain of HK$60,830,488** in 2025[22](index=22&type=chunk) [6. Taxation](index=15&type=section&id=6.%20Taxation) The Group's tax expense significantly increased, primarily due to a rise in deferred tax, while the Hong Kong profits tax rate remained unchanged Tax Expense | Tax Category | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Hong Kong Profits Tax: Current | 701,091 | 1,745,811 | | Hong Kong Profits Tax: Deferred Tax | 19,617,764 | 6,387,194 | | Total Tax | 20,318,855 | 8,133,005 | - Deferred tax significantly increased by **207.14%** from HK$6,387,194 in 2024 to HK$19,617,764 in 2025[24](index=24&type=chunk) - The Hong Kong profits tax rate remained at **16.5%**, with the first HK$2,000,000 for qualifying corporations taxed at **8.25%**[24](index=24&type=chunk) [7. Dividends](index=15&type=section&id=7.%20Dividends) The Company distributed a final dividend for the 2024 financial year but did not declare an interim dividend for the first half of 2025 - A final dividend of **HK$0.01 per ordinary share**, totaling **HK$40,000,000** for the year ended December 31, 2024, was distributed in the first half of 2025[25](index=25&type=chunk) - The Board did not declare any interim dividends for the six months ended June 30, 2025, and 2024[26](index=26&type=chunk) [8. Earnings Per Share](index=16&type=section&id=8.%20Earnings%20Per%20Share) Basic earnings per share attributable to ordinary shareholders of the Company was HK$0.0142, a decrease from the prior period, with no dilutive potential ordinary shares Earnings Per Share Calculation | Indicator | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 102,931,754 | 88,669,217 | | Less: Allocation to Other Equity Instrument Holders | (46,250,000) | (15,800,000) | | Profit for the Period Attributable to Ordinary Shareholders of the Company | 56,681,754 | 72,869,217 | | Weighted Average Number of Ordinary Shares | 4,000,000,000 | 4,000,000,000 | | Basic Earnings Per Share | 0.0142 | 0.0182 | - Profit for the period attributable to ordinary shareholders of the Company decreased by **22.1%** year-on-year, leading to a decrease in basic earnings per share[27](index=27&type=chunk) - For the six months ended June 30, 2025, there were no dilutive potential ordinary shares outstanding, thus diluted earnings per share was the same as basic earnings per share[27](index=27&type=chunk) [9. Trade and Other Receivables](index=17&type=section&id=9.%20Trade%20and%20Other%20Receivables) The Group's total trade and other receivables increased, with a significant rise in receivables from brokers in financial products and investments, while secured margin loans substantially decreased, along with a corresponding reduction in impairment provisions Trade and Other Receivables Analysis | Receivables Category | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Secured Margin Loans (Net) | 448,752,025 | 617,639,954 | -27.34% | | Securities Trading Business (Excluding Margin Loans) | 286,520,551 | 231,205,758 | 23.93% | | Futures and Options Contracts Trading Business | 190,341,927 | 126,212,265 | 50.81% | | Financial Products and Investments Business | 425,699,022 | 165,722,217 | 156.87% | | Total Trade and Other Receivables | 1,379,177,656 | 1,171,860,830 | 17.69% | - Impairment provision for secured margin loans decreased from HK$533,674,166 as of December 31, 2024, to **HK$202,619,663** as of June 30, 2025[28](index=28&type=chunk) - The normal settlement period for trade receivables from corporate finance and asset management businesses is within one month to one year after service provision[30](index=30&type=chunk) [10. Trade and Other Payables](index=20&type=section&id=10.%20Trade%20and%20Other%20Payables) The Group's total trade and other payables significantly increased, driven by amounts due to clients and brokers in securities trading and financial products and investments, reflecting increased business activity Trade and Other Payables Analysis | Payables Category | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Securities Trading Business | 2,562,254,437 | 1,742,810,386 | 47.02% | | Futures and Options Contracts Trading Business | 370,847,385 | 336,877,496 | 10.09% | | Financial Products and Investments Business | 620,150,994 | 166,422,915 | 272.64% | | Total Trade and Other Payables | 3,553,252,834 | 2,246,110,797 | 58.11% | - Amounts due to clients in securities trading business increased from HK$1,736,296,194 to **HK$2,451,051,391**[34](index=34&type=chunk) - Amounts due to brokers in financial products and investments business significantly increased from HK$149,564,486 to **HK$608,959,100**[34](index=34&type=chunk) - Amounts due to the immediate holding company in the Group's securities trading business increased to **HK$7,032,085** from HK$4,050,272 at the end of last year[35](index=35&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews market conditions, the Group's overall performance, detailed business segment results, financial position, liquidity, and future outlook [I. Market Review](index=22&type=section&id=I.%20Market%20Review) In the first half of 2025, despite a global economic slowdown, Hong Kong's capital market performed strongly, with new share fundraising ranking first globally and the Hang Seng Index showing leading gains, solidifying its status as an international financial center - In the first half of 2025, Hong Kong's IPO market raised **HK$107.1 billion**, a seven-fold year-on-year increase, ranking first globally[36](index=36&type=chunk) - The Hang Seng Index ranked among the top global major stock markets with a gain of nearly **20%**[36](index=36&type=chunk) - The average daily turnover of Hong Kong stocks was **HK$240.2 billion**, an increase of approximately **118%** compared to the same period in 2024[36](index=36&type=chunk) [II. Performance and Overview](index=22&type=section&id=II.%20Performance%20and%20Overview) The Group's operating revenue decreased by 4.92% year-on-year in the first half of 2025, but net profit after tax increased by 16.08%, primarily due to efficient internal management and strong growth in corporate finance business Group Overall Performance Overview | Indicator | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 398.25 million | 418.87 million | -4.92% | | Net Profit After Tax | 102.93 million | 88.67 million | 16.08% | - Operating revenue from corporate finance services increased by **84.89%** year-on-year, while revenue from wealth management, asset management, and financial products and investments businesses all decreased[37](index=37&type=chunk) [III. Business Review](index=23&type=section&id=III.%20Business%20Review) This section provides a detailed review of the Group's major business segments, highlighting strong performance in corporate finance, while wealth management, asset management, and financial products and investments businesses experienced revenue declines [Wealth Management](index=23&type=section&id=Wealth%20Management) Wealth management business revenue decreased by 22.24% year-on-year, primarily due to lower brokerage service commissions and margin financing interest income, despite increased client Hong Kong stock trading volume and cross-border wealth management connect product sales Wealth Management Business Revenue | Revenue Category | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Wealth Management Business Revenue | 77.89 million | 100.17 million | -22.24% | | Brokerage Service Commission and Fee Income | 64.49 million | 85.22 million | -24.33% | | Margin Financing Interest Income | 13.40 million | 14.94 million | -10.31% | - Client Hong Kong stock trading volume was approximately **HK$34.7 billion**, an increase of approximately **71%** year-on-year[39](index=39&type=chunk) - Cross-border Wealth Management Connect product sales were nearly **HK$0.9 billion**, an increase of approximately **11%** year-on-year[39](index=39&type=chunk) [Corporate Finance](index=23&type=section&id=Corporate%20Finance) Corporate finance business revenue significantly increased by 84.89% year-on-year, primarily driven by substantial growth in debt securities placement, underwriting, and sub-underwriting commission income, with improved debt underwriting ranking and green bond underwriting scale Corporate Finance Business Revenue | Revenue Category | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Corporate Finance Business Revenue | 90.08 million | 48.72 million | 84.89% | | Debt Securities Placement, Underwriting, and Sub-underwriting Commission Income | 85.24 million | 38.68 million | 120.37% | | Sponsorship Fee Income | 1.05 million | – | N/A | | Equity Underwriting Income | 0.55 million | 0.04 million | 1287.5% | - Ranking for Chinese-funded debt underwriting in Hong Kong improved by three places to **sixth**, completing **105 bond underwriting projects** with a scale equivalent to **US$1.112 billion**, a **13%** year-on-year increase[40](index=40&type=chunk) - Underwrote **34 green bonds**, with a financing issuance scale exceeding **HK$60.7 billion**[40](index=40&type=chunk) - Successfully assisted **six companies** in listing in Hong Kong, improving the ranking for Chinese-funded equity underwriting in Hong Kong by seven places to **twelfth**[41](index=41&type=chunk) [Asset Management](index=24&type=section&id=Asset%20Management) Asset management business revenue decreased by 22.42% year-on-year, despite maintaining an AUM of approximately HK$5.7 billion, with overall stable fund product performance, including a 16.7% net asset value growth for the China Core Asset Fund Asset Management Business Revenue | Indicator | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Asset Management Business Revenue | 5.71 million | 7.36 million | -22.42% | - As of June 30, 2025, there were **26 asset management products** with an AUM of approximately **HK$5.7 billion**[42](index=42&type=chunk) - The China Core Asset Fund's net asset value increased by **16.7%** in the first half of 2025[42](index=42&type=chunk) [Financial Products and Investments](index=24&type=section&id=Financial%20Products%20and%20Investments) Financial products and investments revenue decreased by 14.50% year-on-year, with the Group achieving stable annualized returns for fixed income and equity investments under a neutral-to-conservative risk appetite Financial Products and Investments Revenue | Indicator | 2025 (HKD) | 2024 (HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Financial Products and Investments Revenue | 224.57 million | 262.64 million | -14.50% | - Cumulative annualized return on fixed income investments was **8.19%**, and on equity investments was **13.75%**[43](index=43&type=chunk) [Financial Position](index=25&type=section&id=Financial%20Position) As of June 30, 2025, the Group's total assets and total liabilities both significantly increased, reflecting an expansion in business scale Financial Position Overview | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 20,901.10 million | 15,732.77 million | 32.85% | | Total Liabilities | 16,577.16 million | 11,496.69 million | 44.19% | [Liquidity, Financial Resources, and Capital Structure](index=25&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20and%20Capital%20Structure) The Group's net current assets and current ratio decreased, while bank borrowings and gearing ratio significantly increased, but net cash inflow and bank balances continued to grow Liquidity and Capital Structure | Indicator | June 30, 2025 (HKD) | December 31, 2024 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Current Assets | 3,353.09 million | 4,452.48 million | -24.69% | | Current Ratio | 1.2 times | 1.4 times | -14.29% | | Bank Balances | 2,269.42 million | 1,961.29 million | 15.71% | | Total Bank Borrowings | 5,014.30 million | 2,621.31 million | 91.29% | | Gearing Ratio | 295% | 212% | 39.15% | | Total Equity Attributable to Ordinary Shareholders | 3,323.94 million | 3,236.08 million | 2.71% | - For the six months ended June 30, 2025, the Group's net cash inflow was **HK$308.13 million**[45](index=45&type=chunk) [Outlook](index=26&type=section&id=Outlook) The Group anticipates maintaining stable operations in the second half of 2025, seizing digital asset opportunities, expanding wealth management and corporate finance, optimizing asset management products, strengthening risk control and talent development, and implementing green finance principles - Seize strategic opportunities from the accelerated iteration in digital assets, systematically planning technology R&D and business reserves[47](index=47&type=chunk) - Build a rich and balanced wealth management product matrix, focusing on expanding institutional clients and enhancing cross-border financial service capabilities[47](index=47&type=chunk) - Leverage the brand and professional advantages of bond underwriting business to consolidate and enhance market leadership; seize opportunities from the warming Hong Kong stock market, focusing on hot sectors[47](index=47&type=chunk) - Adhere to a "neutral-to-conservative" low-volatility investment strategy, strictly controlling risks and capturing market rotation opportunities through diversified investments[47](index=47&type=chunk) - Uphold compliance and risk control bottom lines, optimize resource allocation, build a professional, market-oriented, and international talent team, and implement green financial service concepts[47](index=47&type=chunk) [Other Information](index=26&type=section&id=Other%20Information) This section covers material investments, asset pledges, employee and remuneration policies, contingent liabilities, post-reporting events, and risk management [Material Investments and Material Acquisitions or Disposals of Subsidiaries and Affiliated Companies](index=26&type=section&id=Material%20Investments%20and%20Material%20Acquisitions%20or%20Disposals%20of%20Subsidiaries%20and%20Affiliated%20Companies) For the six months ended June 30, 2025, the Group did not undertake any material investments, acquisitions, or disposals of subsidiaries and affiliated companies - The Group did not undertake any material investments, acquisitions, or disposals of subsidiaries and affiliated companies during the reporting period[48](index=48&type=chunk) [Pledge of Assets by the Group](index=26&type=section&id=Pledge%20of%20Assets%20by%20the%20Group) The Group's pledged assets primarily consist of debt securities used as collateral for repurchase agreements - The Group's pledged assets are primarily debt securities used as collateral for repurchase agreements[49](index=49&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's employee count decreased, with a corresponding reduction in total remuneration, and the remuneration policy is reviewed and awarded based on market practice, individual performance, and the Group's financial performance Employee and Remuneration Overview | Indicator | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Number of Full-time Employees | 164 | 224 | -26.8% | | Total Remuneration | 90.12 million HKD | 101.20 million HKD | -11.05% | - Remuneration policy is reviewed periodically based on market practice, with bonuses awarded based on individual performance appraisals, current market conditions, and the Group's financial performance[50](index=50&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) As of the end of the reporting period and the date of this announcement, the Group had no material contingent liabilities - The Group had no material contingent liabilities[51](index=51&type=chunk) [Events After the Reporting Period](index=27&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of this announcement, the Board was not aware of any events after the reporting period that would have a material impact on the Group's business or financial performance - The Board was not aware of any material events after the reporting period concerning the Group's business or financial performance[52](index=52&type=chunk) [Risk Management](index=27&type=section&id=Risk%20Management) The Group has established a comprehensive risk management organizational structure and a "three lines of defense" mechanism to identify, assess, monitor, and respond to various risks, including credit, liquidity, market, operational, compliance, legal, and reputational risks, ensuring stable operations and strategic goal achievement [Risk Management Structure and Mechanism](index=27&type=section&id=Risk%20Management%20Structure%20and%20Mechanism) The Group has a comprehensive risk management organizational structure comprising the Board, management, Risk Management Committee, risk management department, and various departments, implementing a "three lines of defense" risk management governance framework to ensure risks are within reasonable limits - Established a comprehensive risk management organizational structure comprising the Board, management, Risk Management Committee, risk management department, various departments, and subsidiaries[53](index=53&type=chunk) - Implemented a "three lines of defense" risk management framework: business units and subsidiaries (first line), risk management department (second line), and audit department (third line)[54](index=54&type=chunk) - Implemented risk appetite, limit management, and authorization management systems, adhering to the philosophy of "prudent operation and long-term development"[54](index=54&type=chunk) [Credit Risk](index=28&type=section&id=Credit%20Risk) The Group monitors credit risk through its Risk Management Committee and Investment and Financing Business Review Committee, implementing daily mark-to-market, public opinion monitoring, stress testing, and regular impairment measurement to mitigate credit risk - Established a Risk Management Committee and an Investment and Financing Business Review Committee to review and monitor credit risk management policies[55](index=55&type=chunk) - Closely monitors credit business risk limit indicators, implements daily mark-to-market and timely warnings, and establishes a public opinion information monitoring mechanism[55](index=55&type=chunk) - Conducts regular stress tests and timely provides for expected credit losses in accordance with the latest financial instrument standards[55](index=55&type=chunk) [Liquidity Risk](index=29&type=section&id=Liquidity%20Risk) The Group has established liquidity risk management policies and procedures, ensuring funding needs and regulatory requirements are met through multi-level authorization mechanisms, diversified financing channels, and strict liquidity monitoring (e.g., daily reports, cash flow forecasts, stress tests) - Formulated liquidity risk management policies and procedures, and maintained liquidity and financial resource requirements[56](index=56&type=chunk) - Established multi-level authorization mechanisms and internal policies to set authorization limits for commitments or cash outflows[56](index=56&type=chunk) - Met financing needs through bank borrowings, bond issuance, and other means, implementing management measures such as daily monitoring reports, future cash flow forecasts, and liquidity stress tests[56](index=56&type=chunk) [Market Risk](index=29&type=section&id=Market%20Risk) The Group monitors and controls market risk by formulating policies and procedures, conducting pre-assessments, setting limits, and regularly reviewing market strategies to address changes in exchange rates, interest rates, and financial asset prices - Formulated policies and procedures to monitor and control market risks arising from business operations[57](index=57&type=chunk) - Arranged professionals to discuss and assess relevant market risks before engaging in new transactions or launching new businesses[57](index=57&type=chunk) - Established market risk limit indicators and regularly reviewed and adjusted market strategies to optimize investment strategies[57](index=57&type=chunk) [Operational Risk](index=30&type=section&id=Operational%20Risk) The Group has established a comprehensive operational risk management framework and mechanism, identifying, assessing, monitoring, and responding to operational risks comprehensively through sound management mechanisms, internal control procedures, risk reporting, and training, also maintaining a business continuity management mechanism - Established an operational risk management framework including the Board, management, Risk Management Committee, Risk Management Department, and various departments[58](index=58&type=chunk) - Established sound management mechanisms and effective internal control procedures to identify, assess, and monitor operational risks through risk reports, limit indicators, and control matrices[58](index=58&type=chunk) - Established a business continuity management mechanism, with emergency plans and business continuity plans in place, and conducts regular drills[59](index=59&type=chunk) [Compliance and Legal Risk](index=31&type=section&id=Compliance%20and%20Legal%20Risk) The Group actively promotes a robust and comprehensive compliance and legal risk management framework, ensuring business operations comply with laws and regulations through its compliance management structure, policies, internal training, and collaboration with external legal advisors - Actively promoted the establishment of a robust and comprehensive compliance and legal risk management framework, formulating relevant policies, procedures, and templates[61](index=61&type=chunk) - Established a three-line defense for compliance management, with the Compliance and Legal Department leading policy formulation, providing compliance advice, monitoring licensed business operations, and organizing training[61](index=61&type=chunk) - Equipped with dedicated legal personnel, and engaged **5 long-term legal advisors** and maintained close cooperation with other external law firms[61](index=61&type=chunk) [Reputational Risk](index=32&type=section&id=Reputational%20Risk) The Group has established a complete corporate governance structure and reputational risk management mechanism, adhering to principles of prevention first and proactivity, managing reputational risk comprehensively, with no major reputational risk events occurring during the reporting period - Actively promoted the establishment of a reputational risk management mechanism, adhering to principles such as prevention first, proactivity, and timely reporting[62](index=62&type=chunk) - Conducts comprehensive management of reputational risk, including event classification, risk identification, risk assessment, risk reporting, risk handling, and risk evaluation[62](index=62&type=chunk) - During the reporting period, the Group further improved its reputational risk management system, maintaining stable overall public sentiment with no major reputational risk events[62](index=62&type=chunk) [Purchase, Sale or Redemption of Listed Securities of the Company and its Subsidiaries](index=32&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities%20of%20the%20Company%20and%20its%20Subsidiaries) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any listed securities of the Company and its subsidiaries - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any listed securities of the Company and its subsidiaries[63](index=63&type=chunk) - The Company held no treasury shares[64](index=64&type=chunk) [Competing Interests](index=32&type=section&id=Competing%20Interests) Except for disclosed continuing connected transactions, as of June 30, 2025, no director, controlling shareholder, or their close associates held any interests in businesses competing with the Group's operations - Except for continuing connected transactions disclosed in the prospectus, no director, controlling shareholder, or their close associates held competing interests[65](index=65&type=chunk) [Directors' Securities Transactions](index=33&type=section&id=Directors'%20Securities%20Transactions) The Company has adopted a code of conduct for directors' securities transactions, and all directors confirmed compliance with this code and the Listing Rules' Model Code during the reporting period - The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[66](index=66&type=chunk) - All directors confirmed compliance with the relevant code for the six months ended June 30, 2025[66](index=66&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) For the six months ended June 30, 2025, the Company complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules - The Company complied with the code provisions contained in the Corporate Governance Code set out in Appendix C1 of the Listing Rules[67](index=67&type=chunk) [Audit Committee](index=33&type=section&id=Audit%20Committee) The Company's Audit Committee reviewed the Group's unaudited condensed consolidated results for the six months ended June 30, 2025, confirming compliance with applicable accounting standards, Listing Rules, and other legal requirements - The Audit Committee comprises Mr. Xiong Bo (Non-executive Director) and Mr. Chan Ho Wing and Mr. Tian Li (Independent Non-executive Directors), with Mr. Chan Ho Wing as Chairman[68](index=68&type=chunk) - The Audit Committee reviewed the Group's unaudited condensed consolidated results for the six months ended June 30, 2025[68](index=68&type=chunk) - The Committee considered that the results complied with applicable accounting standards, requirements of the Listing Rules, and other applicable legal requirements, and that adequate disclosures were made[68](index=68&type=chunk)

Performance Highlights [Q2 2025 Performance Highlights](index=1&type=section&id=2025%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E4%B8%9A%E7%BB%A9%E4%BA%AE%E7%82%B9) Tongcheng Travel Holdings Limited announced unaudited consolidated results for the three months ended June 30, 2025, with revenue increasing by 10.0% to RMB 4,669.4 million, adjusted EBITDA growing by 29.7%, and adjusted net profit increasing by 18.0%, while average monthly paying users also saw a 9.2% increase Q2 2025 Key Financial Indicators | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 4,669,431 | 4,245,357 | 10.0% | | Profit before income tax | 785,745 | 539,128 | 45.7% | | Profit for the period | 642,105 | 429,330 | 49.6% | | Adjusted EBITDA for the period | 1,185,177 | 913,465 | 29.7% | | Adjusted net profit for the period | 775,103 | 656,690 | 18.0% | | Revenue Growth (YoY) | 10.0% | 48.1% | - | | Adjusted EBITDA Margin | 25.4% | 21.5% | Up 3.9pp | | Adjusted Net Profit Margin | 16.6% | 15.5% | Up 1.1pp | - Average monthly paying users increased by **9.2% year-over-year** to **46.4 million** people[3](index=3&type=chunk)[7](index=7&type=chunk) [H1 2025 Performance Highlights](index=3&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E4%B8%9A%E7%BB%A9%E4%BA%AE%E7%82%B9) For the six months ended June 30, 2025, the company's revenue increased by 11.5% year-over-year to RMB 9,046.9 million, adjusted EBITDA grew by 35.2%, and adjusted net profit increased by 28.6%, with annual paying users and cumulative service person-times reaching new highs H1 2025 Key Financial Indicators | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 9,046,863 | 8,111,635 | 11.5% | | Profit before income tax | 1,590,807 | 991,458 | 60.5% | | Profit for the period | 1,320,606 | 829,586 | 59.2% | | Adjusted EBITDA for the period | 2,344,561 | 1,733,693 | 35.2% | | Adjusted net profit for the period | 1,563,271 | 1,215,178 | 28.6% | | Revenue Growth (YoY) | 11.5% | 48.8% | - | | Adjusted EBITDA Margin | 25.9% | 21.4% | Up 4.5pp | | Adjusted Net Profit Margin | 17.3% | 15.0% | Up 2.3pp | - Average monthly paying users increased by **9.2% year-over-year** to **46.5 million** people[10](index=10&type=chunk)[13](index=13&type=chunk) - Annual paying users increased by **10.2% year-over-year** to **251.7 million** people, reaching a new historical high[10](index=10&type=chunk)[13](index=13&type=chunk) - Cumulative service person-times for the twelve months increased by **7.2% year-over-year** to **1,990.6 million**[10](index=10&type=chunk)[13](index=13&type=chunk) Business Review [Market Overview and Company Performance](index=5&type=section&id=%E5%B8%82%E5%9C%BA%E6%A6%82%E5%86%B5%E4%B8%8E%E5%85%AC%E5%8F%B8%E8%A1%A8%E7%8E%B0) China's tourism industry maintained strong growth in Q2 2025 with increasing demand for experiential travel, and the company solidified its market position through user insights and product service optimization, achieving significant growth in total revenue and adjusted net profit - China's tourism industry maintained a strong growth momentum in Q2 2025, with increasing demand for experiential travel[14](index=14&type=chunk) - The company's total revenue increased by **10.0%** and **11.5% year-over-year** in Q2 and H1, respectively, with adjusted net profit reaching **RMB 775.1 million** and **RMB 1,563.3 million**, respectively[14](index=14&type=chunk) [User Growth and Traffic Strategy](index=5&type=section&id=%E7%94%A8%E6%88%B7%E5%A2%9E%E9%95%BF%E4%B8%8E%E6%B5%81%E9%87%8F%E7%AD%96%E7%95%A5) The company's user base and value continued to grow, with annual and monthly paying users reaching new highs, and its market position in non-first-tier cities was strengthened through multi-channel strategies including the WeChat ecosystem, proprietary apps, and social media - For the twelve months ended June 30, 2025, annual paying users increased by **10.2% year-over-year** to **251.7 million** people, reaching a new historical high[15](index=15&type=chunk) - For the three and six months ended June 30, 2025, average monthly paying users both increased by **9.2% year-over-year** to **46.4 million** and **46.5 million** people, respectively[15](index=15&type=chunk) - Over **87%** of registered users reside in non-first-tier cities in China, with **69%** of new paying users on the WeChat platform originating from non-first-tier cities[15](index=15&type=chunk) - The WeChat ecosystem and proprietary apps are significant traffic sources, with daily active users of proprietary apps showing strong growth in Q2 and reaching a new historical high[16](index=16&type=chunk) - The establishment of dedicated hotlines and customer service teams, along with enriched user benefits and welfare, significantly improved user retention and loyalty[17](index=17&type=chunk) [Core Business Segment Performance](index=6&type=section&id=%E6%A0%B8%E5%BF%83%E4%B8%9A%E5%8A%A1%E5%88%86%E9%83%A8%E8%A1%A8%E7%8E%B0) Core online travel platform business showed strong growth with increased revenue from accommodation and transportation ticketing, while other businesses performed exceptionally driven by hotel management, but the vacation business saw a revenue decline due to safety concerns in Southeast Asia [Accommodation Reservation Services](index=6&type=section&id=%E4%BD%8F%E5%AE%BF%E9%A2%84%E8%AE%A2%E6%9C%8D%E5%8A%A1) Accommodation business revenue increased by 15.2% year-over-year to RMB 1,371.4 million, driven by business volume growth and improved monetization capabilities, as the company actively explored new booking scenarios and focused on high-value users and expansion in lower-tier cities - Accommodation business revenue increased by **15.2% year-over-year** to **RMB 1,371.4 million**[18](index=18&type=chunk) - Actively exploring new accommodation booking scenarios such as weekend getaways, concerts, and sports events, driving daily average room nights to a new historical high[18](index=18&type=chunk) - Focusing on high-value users and intensifying expansion efforts in lower-tier cities to enhance market share and competitiveness[18](index=18&type=chunk) [Transportation Ticketing Services](index=6&type=section&id=%E4%BA%A4%E9%80%9A%E7%A5%A8%E5%8A%A1%E6%9C%8D%E5%8A%A1) Transportation ticketing services revenue increased by 7.9% year-over-year to RMB 1,881.0 million, with international air ticket volume reaching a new historical high, growing by nearly 30%, and improved monetization capabilities for train ticket services - Transportation ticketing services revenue increased by **7.9% year-over-year** to **RMB 1,881.0 million**[19](index=19&type=chunk) - International air ticket volume reached a new historical high, growing by nearly **30% year-over-year**[19](index=19&type=chunk) - Continuously upgrading the Smart Travel system and optimizing operational strategies to enhance the monetization capability of train ticket services[19](index=19&type=chunk) [Other Businesses](index=6&type=section&id=%E5%85%B6%E4%BB%96%E4%B8%9A%E5%8A%A1) Other businesses revenue increased by 27.5% to RMB 755.4 million, primarily driven by the hotel management business, which continues its healthy asset-light development with over 2,700 hotels in operation and another 1,500 in preparation - Other businesses revenue increased by **27.5% year-over-year** to **RMB 755.4 million**[19](index=19&type=chunk) - The number of hotels operating under the hotel management business platform has exceeded **2,700**, with another **1,500** hotels in preparation[19](index=19&type=chunk) [Vacation Business](index=6&type=section&id=%E5%BA%A6%E5%81%87%E4%B8%9A%E5%8A%A1) Vacation business revenue decreased by 8.0% to RMB 661.7 million, primarily due to safety concerns in Southeast Asia - Vacation business revenue decreased by **8.0% year-over-year** to **RMB 661.7 million**[19](index=19&type=chunk) - The revenue decline was primarily due to safety concerns in Southeast Asia, leading to a reduction in outbound tour group revenue[19](index=19&type=chunk) [Technology Empowerment and Strategic Partnerships](index=7&type=section&id=%E6%8A%80%E6%9C%AF%E8%B5%8B%E8%83%BD%E4%B8%8E%E6%88%98%E7%95%A5%E5%90%88%E4%BD%9C) The company is committed to empowering industry partners through technology, forming strategic collaborations with Shandong Airport Management Group and Xi'an Xianyang International Airport, while also integrating cutting-edge technology to launch the AI itinerary planning agent DeepTrip, enhancing operational efficiency and user experience - Reached a strategic partnership with Shandong Airport Management Group to help optimize route networks and improve operational efficiency[20](index=20&type=chunk) - Fully upgraded strategic cooperation with Xi'an Xianyang International Airport, deepening intermodal product development, member benefit integration, and joint marketing[20](index=20&type=chunk) - Launched AI itinerary planning agent DeepTrip, integrating platform supply chain capabilities with DeepSeek inference capabilities to optimize customized tour consultation processes, enhancing user experience and booking efficiency[21](index=21&type=chunk) Business Outlook and Strategy [Business Outlook and Strategy](index=7&type=section&id=%E4%B8%9A%E5%8A%A1%E5%89%8D%E6%99%AF%E5%8F%8A%E7%AD%96%E7%95%A5) The company remains optimistic about the development prospects of China's tourism industry, benefiting from strong market demand, government support, improved infrastructure, and digital transformation, and will continue to deepen its core online travel platform business, expand outbound tourism, strengthen hotel management, and seek strategic growth opportunities - China's tourism industry maintains high-quality development driven by strong market demand, with summer travel enthusiasm remaining high[22](index=22&type=chunk) - Optimistic about the development prospects of China's tourism industry, benefiting from government attention, improved infrastructure, and digital transformation[22](index=22&type=chunk) - Tourist preferences are shifting towards more experiential and immersive travel methods, driving the emergence of new tourism scenarios[22](index=22&type=chunk) - Confident in the growth potential of China's outbound tourism market, benefiting from simplified visa policies, restored international flight capacity, and increased demand[22](index=22&type=chunk) - Future strategies include deepening the core online travel platform, expanding outbound tourism, strengthening the hotel management business, and seeking strategic growth opportunities[22](index=22&type=chunk) Detailed Financial Performance Analysis [Q2 2025 vs. Q2 2024 Comparison](index=8&type=section&id=2025%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E4%B8%8E2024%E5%B9%B4%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E6%AF%94%E8%BE%83) This section details the financial performance comparison between Q2 2025 and the same period in 2024, covering revenue, gross profit, various operating expenses, changes in financial assets, and final profit, showing significant growth in revenue and operating profit but also increases in some expense items Q2 2025 vs. Q2 2024 Income Statement Comparison | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 4,669,431 | 4,245,357 | +10.0% | | Gross Profit | 3,036,282 | 2,744,335 | +10.6% | | Operating Profit | 809,316 | 517,025 | +56.5% | | Profit for the Period | 642,105 | 429,330 | +49.6% | | Profit Attributable to Equity Holders of the Company | 641,813 | 433,691 | +48.0% | [Revenue Analysis](index=9&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue increased by 10.0% year-over-year to RMB 4,669.4 million, with core online travel platform revenue growing by 13.7%, including 15.2% in accommodation reservation services and 7.9% in transportation ticketing services, while other revenue grew by 27.5% driven by hotel management services, and vacation business revenue declined by 8.0% due to safety concerns in Southeast Asia Q2 2025 Revenue Segment Comparison | Revenue Segment | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Core Online Travel Platform | 4,007,775 | 3,525,959 | 13.7% | | Accommodation Reservation Services | 1,371,367 | 1,190,879 | 15.2% | | Transportation Ticketing Services | 1,881,010 | 1,742,736 | 7.9% | | Other | 755,398 | 592,344 | 27.5% | | Vacation | 661,656 | 719,398 | (8.0)% | | **Total Revenue** | **4,669,431** | **4,245,357** | **10.0%** | - Vacation revenue decreased by **8.0%** to **RMB 661.7 million**, primarily due to reduced outbound tour group revenue from Southeast Asia[27](index=27&type=chunk) [Analysis of Cost of Sales, Operating Expenses, and Unallocated Items](index=10&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC%E3%80%81%E7%BB%8F%E8%90%A5%E5%BC%80%E6%94%AF%E5%8F%8A%E6%9C%AA%E5%88%86%E9%85%8D%E9%A1%B9%E7%9B%AE%E5%88%86%E6%9E%90) Cost of sales, service development expenses, sales and marketing expenses, and administrative expenses all saw varying changes, with cost of sales increasing by 8.8% due to higher procurement costs and depreciation, sales and marketing expenses growing by 2.4% but decreasing as a percentage of revenue, and net reversal of impairment losses on financial assets increasing, alongside significant growth in fair value gains on investments measured at fair value Q2 2025 Details of Cost of Sales, Operating Expenses, and Unallocated Items | Item | 2025 (RMB '000) | % of Total | 2024 (RMB '000) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 1,633,149 | 42.3% | 1,501,022 | 40.2% | | Service Development Expenses | 504,524 | 13.1% | 494,281 | 13.3% | | Sales and Marketing Expenses | 1,538,292 | 39.9% | 1,501,710 | 40.2% | | Administrative Expenses | 277,742 | 7.2% | 272,193 | 7.3% | | Net Reversal of Impairment Losses on Financial Assets | (8,745) | (0.2)% | (8,267) | (0.2)% | | Fair Value Changes of Investments Measured at FVTPL | (48,208) | (1.2)% | (19,468) | (0.5)% | | Other Income | (17,399) | (0.5)% | (27,708) | (0.7)% | | Other Gains/(Losses) Net | (19,240) | (0.6)% | 14,569 | 0.4% | | **Total Cost of Sales, Operating Expenses, and Unallocated Items** | **3,860,115** | **100.0%** | **3,728,332** | **100.0%** | - Cost of sales increased by **8.8%** to **RMB 1,633.1 million**, primarily due to increased costs for value-added user services, depreciation expenses, and employee benefit expenses[29](index=29&type=chunk) - Sales and marketing expenses increased by **2.4%** to **RMB 1,538.3 million**, but excluding share-based compensation, the percentage of revenue decreased from **35.1%** to **32.8%**[31](index=31&type=chunk) - Fair value gains on investments measured at fair value through profit or loss reached **RMB 48.2 million**, primarily influenced by fair value gains from investments in certain public and private companies and wealth management products[34](index=34&type=chunk) - Other net gains amounted to **RMB 19.2 million**, primarily due to exchange gains of **RMB 10.5 million**[36](index=36&type=chunk) [Non-IFRS Financial Measures](index=13&type=section&id=%E9%9D%9E%E5%9B%BD%E9%99%85%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E5%87%86%E5%88%99%E8%B4%A2%E5%8A%A1%E8%AE%A1%E9%87%8F) The company uses adjusted EBITDA and adjusted net profit for the period as non-IFRS financial measures to provide a more comparable assessment of core business performance, excluding non-cash or non-core business-driven items such as share-based compensation, amortization, and depreciation - Adjusted EBITDA is defined as operating profit adjusted for share-based compensation, amortization of intangible assets, depreciation, exchange gains/losses, and other items[39](index=39&type=chunk) - Adjusted net profit for the period is defined as profit for the period adjusted for net share-based compensation, amortization of intangible assets from acquisitions, exchange gains/losses, and other items[39](index=39&type=chunk) [Reconciliation of Adjusted EBITDA to Operating Profit](index=14&type=section&id=%E7%BB%8F%E8%B0%83%E6%95%B4EBITDA%E4%B8%8E%E7%BB%8F%E8%90%A5%E6%BA%A2%E5%88%A9%E7%9A%84%E5%AF%B9%E8%B4%A6) This section provides a detailed reconciliation of adjusted EBITDA to operating profit, illustrating the impact of various adjustment items on operating profit to derive adjusted EBITDA Reconciliation of Adjusted EBITDA to Operating Profit (RMB '000) | Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Profit for the Period | 809,316 | 517,025 | 1,626,599 | 972,050 | | Add: Total Share-based Compensation | 73,878 | 107,910 | 149,057 | 222,124 | | Add: Amortization of Intangible Assets | 195,058 | 170,092 | 389,886 | 346,770 | | Add: Depreciation of Property, Plant and Equipment and Right-of-use Assets | 135,807 | 84,815 | 226,555 | 166,306 | | Less: Net Exchange (Gains)/Losses | (10,452) | 29,259 | (18,167) | 46,932 | | Less: Net (Gains)/Losses from Investees | (21,412) | 4,470 | (27,385) | (18,574) | | Other | 2,982 | (106) | (1,984) | (1,915) | | **Adjusted EBITDA** | **1,185,177** | **913,465** | **2,344,561** | **1,733,693** | [Reconciliation of Adjusted Net Profit to Profit for the Period](index=15&type=section&id=%E6%9C%9F%E5%86%85%E7%BB%8F%E8%B0%83%E6%95%B4%E6%BA%A2%E5%88%A9%E4%B8%8E%E6%9C%9F%E5%86%85%E6%BA%A2%E5%88%A9%E7%9A%84%E5%AF%B9%E8%B4%A6) This section provides a detailed reconciliation of adjusted net profit for the period to profit for the period, illustrating the impact of various adjustment items on profit for the period to derive adjusted net profit Reconciliation of Adjusted Net Profit for the Period to Profit for the Period (RMB '000) | Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Profit for the Period | 642,105 | 429,330 | 1,320,606 | 829,586 | | Add: Net Share-based Compensation | 91,607 | 124,001 | 149,523 | 211,817 | | Add: Amortization of Intangible Assets from Acquisitions | 65,100 | 64,417 | 130,201 | 134,969 | | Less: Net Exchange (Gains)/Losses | (10,452) | 29,259 | (18,167) | 46,932 | | Less: Net (Gains)/Losses from Investees | (21,412) | 4,470 | (27,385) | (18,574) | | Other | 8,155 | 5,213 | 8,493 | 10,448 | | **Adjusted Net Profit for the Period** | **775,103** | **656,690** | **1,563,271** | **1,215,178** | [Share-based Compensation](index=16&type=section&id=%E4%BB%A5%E8%82%A1%E4%BB%BD%E4%B8%BA%E5%9F%BA%E7%A1%80%E7%9A%84%E9%85%AC%E9%87%91) This section lists the total and net share-based compensation recognized in cost of sales and expense items, broken down by different expense categories Details of Share-based Compensation (RMB '000) | Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 1,962 | 3,928 | 3,942 | 8,019 | | Service Development Expenses | 13,012 | 26,753 | 26,421 | 54,724 | | Sales and Marketing Expenses | 6,493 | 13,475 | 13,548 | 27,499 | | Administrative Expenses | 52,411 | 63,754 | 105,146 | 131,882 | | **Total Share-based Compensation** | **73,878** | **107,910** | **149,057** | **222,124** | | Tax Impact of Provisional Differences | 17,729 | 16,091 | 466 | (10,307) | | **Net Share-based Compensation** | **91,607** | **124,001** | **149,523** | **211,817** | Liquidity and Financial Resources [Cash Flow](index=16&type=section&id=%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F) The company primarily funds its liquidity needs through net cash generated from operations and bank borrowings; for the six months ended June 30, 2025, net cash from operating activities significantly increased, but net cash outflow from investing activities substantially rose, leading to a net decrease in cash and cash equivalents H1 2025 Cash Flow (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,035,147 | 1,294,712 | | Net Cash Flow (Used in)/Generated from Investing Activities | (3,559,529) | 576,752 | | Net Cash Flow (Used in)/Generated from Financing Activities | (216,859) | 688,029 | | Net (Decrease)/Increase in Cash and Cash Equivalents | (741,241) | 2,559,493 | | Cash and Cash Equivalents at End of Period | 7,272,479 | 7,747,983 | - Net cash generated from operating activities was **RMB 3,035.1 million**, primarily driven by profit before income tax and an increase in trade payables[46](index=46&type=chunk) - Net cash used in investing activities was **RMB 3,559.5 million**, primarily due to net cash paid for wealth management products and time deposits, and the purchase of property, plant and equipment[47](index=47&type=chunk) - Net cash used in financing activities was **RMB 216.9 million**, primarily due to repayment of bank borrowings and payment of long-term lease liabilities[48](index=48&type=chunk) [Capital Gearing Ratio](index=17&type=section&id=%E8%B5%84%E6%9C%AC%E8%B4%9F%E5%80%BA%E6%AF%94%E7%8E%87) As of June 30, 2025, the company's capital gearing ratio was approximately 25.0% - As of June 30, 2025, the capital gearing ratio was approximately **25.0%**[49](index=49&type=chunk) [Pledge of Assets](index=17&type=section&id=%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) On January 9, 2024, the company borrowed RMB 410.0 million for an acquisition completed in 2023, with the loan secured by 100% equity interest in the target company - On January 9, 2024, the company borrowed **RMB 410.0 million**, secured by **100%** equity interest in the target company, to finance an acquisition completed in 2023[50](index=50&type=chunk) [Capital Expenditure](index=18&type=section&id=%E8%B5%84%E6%9C%AC%E5%BC%80%E6%94%AF) For the first half of 2025, total capital expenditure amounted to RMB 440.4 million, primarily for the acquisition of property, plant and equipment, purchase of intangible assets, and long-term investments, which was a decrease compared to the same period last year H1 2025 Total Capital Expenditure (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 224,322 | 372,679 | | Purchase of Intangible Assets | 31,940 | 6,607 | | Long-term Investments | 184,104 | 574,201 | | **Total Capital Expenditure** | **440,366** | **953,487** | - Capital expenditure is primarily funded by cash generated from operations and bank borrowings[51](index=51&type=chunk) [Long-term Investments](index=18&type=section&id=%E9%95%BF%E6%9C%9F%E6%8A%95%E8%B5%84) As of June 30, 2025, total long-term investments amounted to RMB 3,775.2 million, a decrease from the end of 2024, mainly due to the disposal of certain equity-accounted investments and fair value-measured investments Total Long-term Investments (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investments Accounted for Using the Equity Method | 1,632,892 | 1,682,145 | | Investments Measured at Fair Value Through Profit or Loss | 798,135 | 957,238 | | Investments Measured at Amortized Cost | 1,344,153 | 1,329,289 | | **Total Long-term Investments** | **3,775,180** | **3,968,672** | - The decrease in long-term investments was primarily due to the disposal of investments or interests in certain private companies and funds with significant influence, as well as the disposal of investments in certain private companies[52](index=52&type=chunk) - The overall strategy for long-term investments is to invest in or acquire businesses that can foster growth and bring benefits to the company[52](index=52&type=chunk) [Short-term Investments](index=19&type=section&id=%E7%9F%AD%E6%9C%9F%E6%8A%95%E8%B5%84) As of June 30, 2025, total short-term investments amounted to RMB 6,162.6 million, a significant increase from the end of 2024, primarily driven by short-term investments (wealth management products) measured at fair value through profit or loss Total Short-term Investments (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Short-term Investments Measured at Amortized Cost | 1,042,817 | 160,639 | | Short-term Investments Measured at Fair Value Through Profit or Loss | 5,119,817 | 2,733,033 | | **Total Short-term Investments** | **6,162,634** | **2,893,672** | - Short-term investments measured at fair value through profit or loss primarily consist of wealth management products with expected returns ranging from **0.86% to 6.50%**[53](index=53&type=chunk) - The company chooses to invest in highly liquid, secure financial products with reasonable returns to generate higher returns than demand deposits or time deposits in a low-interest rate environment[53](index=53&type=chunk) [Significant Acquisitions and Disposals](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE) On April 17, 2025, the company, through eLong, entered into an agreement with Wanda Hotels Development to acquire 100% equity interest in Wanda Hotel Management for an initial consideration of approximately RMB 2,497.3 million, upon which Wanda Hotel Management will become an indirect wholly-owned subsidiary of the company - The company, through eLong, acquired **100%** equity interest in Wanda Hotel Management for an initial consideration of approximately **RMB 2,497.3 million**[54](index=54&type=chunk) - Upon completion, Wanda Hotel Management will become an indirect wholly-owned subsidiary of the company, and its financial results will be consolidated into the Group's financial statements[54](index=54&type=chunk) [Foreign Exchange Risk](index=19&type=section&id=%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9) The company manages foreign exchange risk by regularly reviewing its net foreign exchange exposure and entering into derivative contracts for economic hedging purposes - The company manages foreign exchange risk by regularly reviewing its net foreign exchange exposure[55](index=55&type=chunk) - As of June 30, 2025, the company entered into certain derivative contracts with financial institutions for economic hedging purposes[56](index=56&type=chunk) Employees [Employees](index=20&type=section&id=%E5%83%B1%E5%93%A1) As of June 30, 2025, the company had 10,402 full-time employees, primarily located in non-first-tier cities in China, and recruits through diverse channels, provides internal training, participates in statutory employee benefit plans, and maintains good employee relations without significant labor disputes - As of June 30, 2025, the company had **10,402** full-time employees[57](index=57&type=chunk) - Approximately **30.3%** and **6.9%** of employees are located in Suzhou and Beijing, respectively, with the remaining **62.8%** in other regions of China and overseas[57](index=57&type=chunk) - The company recruits through campus recruitment, recruitment agencies, and online channels, and provides management, technical, and other training[57](index=57&type=chunk) - Participates in China's statutory employee welfare plans, including social insurance funds and housing provident funds[57](index=57&type=chunk) - The company maintains good working relationships with its employees and has not experienced any significant labor disputes[57](index=57&type=chunk) Interim Condensed Consolidated Financial Statements [Interim Condensed Consolidated Statement of Profit or Loss](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the unaudited consolidated profit or loss for the three and six months ended June 30, 2025, including revenue, cost of sales, gross profit, various expenses, operating profit, and profit for the period - Provides detailed data for revenue, gross profit, operating profit, and profit for the period for the three and six months ended June 30, 2025 and 2024, respectively[58](index=58&type=chunk) [Interim Condensed Consolidated Statement of Comprehensive Income](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the unaudited consolidated comprehensive income for the three and six months ended June 30, 2025, including profit for the period and other comprehensive income/loss - Provides detailed data for profit for the period and other comprehensive income/loss for the three and six months ended June 30, 2025 and 2024, respectively[59](index=59&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=23&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) This statement presents the unaudited consolidated financial position as of June 30, 2025, and December 31, 2024, including non-current assets, current assets, equity, and liabilities - Provides detailed data for assets, liabilities, and equity as of June 30, 2025, and December 31, 2024[60](index=60&type=chunk)[61](index=61&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement presents the unaudited consolidated cash flows for the six months ended June 30, 2025, including cash flows from operating, investing, and financing activities - Provides detailed data for net cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024, respectively[62](index=62&type=chunk) Notes to the Financial Statements [General Information](index=26&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) Tongcheng Travel Holdings Limited was incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, with the Group primarily engaged in travel-related services in China, and the interim condensed consolidated financial information is prepared in accordance with IAS 34, adopting certain new or revised standards - The Company was incorporated on January 14, 2016, under the laws of the Cayman Islands, and its shares have been listed on the Hong Kong Stock Exchange since November 26, 2018[63](index=63&type=chunk) - The Group is primarily engaged in providing travel-related services in China, including accommodation reservation, transportation ticketing, online advertising, hotel management (core online travel platform), and offline travel agencies, operating scenic spots (vacation business)[63](index=63&type=chunk) - The interim condensed consolidated financial information is prepared in accordance with IAS 34 and has adopted new or revised standards, such as 'Lack of Exchangeability—Amendments to IAS 21'[63](index=63&type=chunk) - Certain new or revised standards (e.g., IFRS 18, IFRS 19) are not yet mandatorily effective and are not expected to have a significant impact on the Group[65](index=65&type=chunk)[66](index=66&type=chunk) [Segment Information](index=27&type=section&id=%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group identifies two reportable segments: core online travel platform and vacation, with the chief operating decision maker assessing business performance based on each segment's revenue and operating profit/loss, and unallocated items primarily include share-based compensation, amortization of intangible assets, and corporate administrative expenses - The Group identifies two reportable segments: core online travel platform and vacation[67](index=67&type=chunk) - The chief operating decision maker assesses segment performance based on the revenue and operating profit/loss of each operating segment[67](index=67&type=chunk) Q2 2025 Segment Operating Profit/(Loss) (RMB '000) | Segment | Core Online Travel Platform | Vacation | Unallocated Items | Total | | :--- | :--- | :--- | :--- | :--- | | Operating Profit/(Loss) | 1,070,334 | 4,427 | (265,445) | 809,316 | H1 2025 Segment Operating Profit/(Loss) (RMB '000) | Segment | Core Online Travel Platform | Vacation | Unallocated Items | Total | | :--- | :--- | :--- | :--- | :--- | | Operating Profit/(Loss) | 2,177,173 | 29,970 | (580,544) | 1,626,599 | [Expenses by Nature](index=28&type=section&id=%E6%8C%89%E6%80%A7%E8%B3%AA%E5%8A%83%E5%88%86%E7%9A%84%E9%96%8B%E6%94%AF) This section details expenses by nature for the three and six months ended June 30, 2025, including employee benefits, advertising and promotion, and travel product costs Q2 2025 Expenses by Nature (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Employee Benefit Expenses | 1,029,124 | 1,002,817 | | Advertising and Promotion Expenses | 980,841 | 971,271 | | Travel Product Costs | 669,712 | 712,662 | | Order Payment and Settlement Costs | 335,385 | 336,624 | | Depreciation and Amortization Expenses | 330,865 | 254,907 | | Procurement Costs | 228,829 | 142,462 | | Commission Expenses | 166,632 | 143,920 | | Bandwidth and Server Hosting Fees | 52,335 | 39,881 | | Short-term Rental and Utility Fees | 33,702 | 26,465 | | Professional Service Fees and Subcontracting Fees | 33,449 | 53,033 | | Travel and Entertainment Expenses | 32,193 | 34,445 | | Taxes and Surcharges | 25,088 | 21,968 | | Telephone and Communication | 4,316 | 2,918 | | Other | 31,236 | 25,833 | | **Total** | **3,953,707** | **3,769,206** | [Other Gains/(Losses) Net](index=29&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E5%87%80%E9%A2%9D) For the three and six months ended June 30, 2025, the company recorded net other gains, primarily influenced by exchange gains and investment income from investments measured at amortized cost Q2 2025 Other Gains/(Losses) Net (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Exchange Gains/(Losses) | 10,452 | (29,259) | | Investment Income from Investments Measured at Amortized Cost | 19,657 | 12,498 | | Net (Losses)/Gains from Derivative Financial Instruments | (2,982) | 106 | | Net (Losses)/Gains from Disposal/Partial Disposal of Equity-Accounted Investments | (7,113) | 206 | | Net Losses from Disposal/Write-off of Property, Plant and Equipment | (4,163) | (349) | | Other | 3,389 | 2,229 | | **Total** | **19,240** | **(14,569)** | [Income Tax Expense](index=29&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) The company's income tax expense increased in both Q2 and H1 2025, with Chinese subsidiaries enjoying a 15% preferential tax rate as high-tech enterprises, some small low-profit enterprises benefiting from a 20% preferential rate, and others paying at 25%, while no deferred tax liability for withholding tax on retained earnings of Chinese subsidiaries has been recognized Q2 2025 Income Tax Expense (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Income Tax | 122,580 | 93,592 | | Deferred Income Tax | 21,060 | 16,206 | | **Total** | **143,640** | **109,798** | - Four direct Chinese subsidiaries are recognized as high-tech enterprises, subject to a **15%** preferential tax rate, with qualifications to be renewed between 2025 and 2026[74](index=74&type=chunk) - Certain subsidiaries, as small low-profit enterprises, enjoy a **20%** preferential corporate income tax rate[75](index=75&type=chunk) - The company has not recognized deferred tax liabilities for withholding tax on retained earnings distributed by Chinese subsidiaries, as there are no plans for distribution[75](index=75&type=chunk) - The Group has assessed the potential risks of Pillar Two income tax and does not expect to pay any related top-up tax for the financial year ending December 2025[76](index=76&type=chunk) [Earnings Per Share](index=31&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This section presents the basic and diluted earnings per share for the three and six months ended June 30, 2025, along with calculation details Q2 2025 Basic Earnings Per Share (RMB) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (RMB '000) | 641,813 | 433,691 | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 2,282,569 | 2,271,428 | | **Basic Earnings Per Share (RMB)** | **0.28** | **0.19** | Q2 2025 Diluted Earnings Per Share (RMB) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company for Diluted EPS Calculation (RMB '000) | 641,813 | 433,691 | | Weighted Average Number of Ordinary Shares for Diluted EPS Calculation (thousand shares) | 2,315,864 | 2,299,776 | | **Diluted Earnings Per Share (RMB)** | **0.28** | **0.19** | - As of June 30, 2025, a total of **129,915,768** share options and **27,729,953** restricted share units remained unexercised, having a potential dilutive effect on earnings per share[79](index=79&type=chunk) [Dividends](index=32&type=section&id=%E8%82%A1%E6%81%AF) The company declared a final dividend of HKD 0.18 per share for the year ended December 31, 2024, on March 20, 2025, which was paid on July 15, 2025, and no dividends were declared or paid for the six months ended June 30, 2025 - The 2024 final dividend of **HKD 0.18 per share** (approximately **RMB 379.1 million**) was paid on July 15, 2025[81](index=81&type=chunk) - For the six months ended June 30, 2025, the company did not declare or pay any dividends[81](index=81&type=chunk) [Investments Accounted for Using the Equity Method](index=32&type=section&id=%E6%8E%A1%E7%94%A8%E6%9D%83%E7%9B%8A%E6%B3%95%E5%85%A5%E8%B3%B9%E7%9A%84%E6%8A%95%E8%B3%87) As of June 30, 2025, the closing balance of investments accounted for using the equity method was RMB 1,632.9 million, a decrease from the beginning of the period, primarily due to dividend payments and the disposal of certain investments Changes in Investments Accounted for Using the Equity Method (RMB '000) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Beginning Balance | 1,682,145 | 1,429,800 | | Additions | 2,350 | 138,872 | | Dividends | (55,121) | (46,168) | | Share of Profit | 23,464 | 10,848 | | Disposals | (22,744) | (2,830) | | **Ending Balance** | **1,632,892** | **1,629,738** | [Investments](index=32&type=section&id=%E6%8A%95%E8%B3%87) This section details the company's short-term and long-term investments, including types of investments measured at amortized cost and fair value through profit or loss, their rates of return, and fair value changes Total Investments (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Assets - Short-term Investments | 6,162,634 | 2,893,672 | | Non-current Assets - Long-term Investments | 2,142,288 | 2,286,527 | | **Total** | **8,304,922** | **5,180,199** | [Short-term Investments Measured at Amortized Cost](index=32&type=section&id=%E6%8C%89%E6%94%A4%E9%8A%B7%E6%88%90%E6%9C%AC%E8%A8%88%E9%87%8F%E7%9A%84%E7%9F%AD%E6%9C%9F%E6%8A%95%E8%B3%87) Short-term investments measured at amortized cost are time deposits of less than one year, denominated in USD or RMB, held to collect contractual cash flows - Short-term investments are time deposits of less than one year, with returns calculated at a fixed interest rate, denominated in USD or RMB[84](index=84&type=chunk) [Short-term Investments Measured at Fair Value Through Profit or Loss](index=33&type=section&id=%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E7%9F%AD%E6%9C%9F%E6%8A%95%E8%B3%87) These short-term investments primarily consist of wealth management products denominated in RMB, HKD, or USD, with expected returns ranging from 0.86% to 6.50%, and are measured at fair value because their returns are not guaranteed - Short-term investments primarily consist of wealth management products with expected returns ranging from **0.86% to 6.50%** (2024: **1.90% to 4.58%**)[85](index=85&type=chunk) - All wealth management products have unguaranteed returns and are therefore measured at fair value through profit or loss[85](index=85&type=chunk) [Long-term Investments Measured at Amortized Cost](index=33&type=section&id=%E6%8C%89%E6%94%A4%E9%8A%B7%E6%88%90%E6%9C%AC%E8%A8%88%E9%87%8F%E7%9A%84%E9%95%B7%E6%9C%9F%E6%8A%95%E8%B3%87) Long-term investments measured at amortized cost are time deposits with maturities of 2 to 3 years, denominated in RMB, with fixed annual interest rates ranging from 2.50% to 3.35% - Long-term investments are time deposits with maturities of **2 to 3 years**, with fixed annual interest rates ranging from **2.50% to 3.35%** (2024: **2.70% to 3.56%**), all denominated in RMB[86](index=86&type=chunk) [Long-term Investments Measured at Fair Value Through Profit or Loss](index=33&type=section&id=%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%95%B7%E6%9C%9F%E6%8A%95%E8%B3%87) These long-term investments include equity in private and public companies and wealth management products with maturities over one year, measured at fair value due to lack of control or unguaranteed returns, with wealth management products having an expected return of 8.00% - Long-term investments include equity in private and public companies and wealth management products with maturities over one year[86](index=86&type=chunk) - Wealth management products have an expected return of **8.00%** (2024: **3.43% to 8.00%**), with unguaranteed returns[87](index=87&type=chunk) - Fair value of private company equity is valued using unobservable inputs (Level 3), while public company equity is measured at market quotations (Level 1)[86](index=86&type=chunk) [Fair Value Changes of Investments Measured at Fair Value Through Profit or Loss](index=34&type=section&id=%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E6%8A%95%E8%B3%87%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%AE%8A%E5%8B%95) For the three and six months ended June 30, 2025, both short-term and long-term investments measured at fair value through profit or loss recorded fair value gains Q2 2025 FVTPL Investment Fair Value Changes (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Fair Value Changes of Short-term Investments | 22,855 | 24,239 | | Fair Value Changes of Long-term Investments | 25,353 | (4,771) | | **Total** | **48,208** | **19,468** | [Prepayments and Other Receivables](index=34&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total prepayments and other receivables amounted to RMB 5,976.8 million, with a significant portion being current, including restricted designated deposit accounts and amounts due from related parties Total Prepayments and Other Receivables (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current, Total | 574,433 | 475,761 | | Current, Total | 5,976,791 | 5,450,137 | | **Total** | **6,551,224** | **5,925,898** | - Among current prepayments and other receivables, restricted designated deposit accounts amounted to **RMB 2,933.2 million**, and amounts due from related parties were **RMB 852.8 million**[89](index=89&type=chunk) [Trade Receivables](index=35&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net trade receivables amounted to RMB 2,144.3 million, with most balances aged within six months Trade Receivables Aging Analysis (RMB '000) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Up to Six Months | 2,102,898 | 1,702,620 | | Over Six Months | 102,575 | 117,550 | | Less: Impairment Allowance | (61,188) | (92,583) | | **Ending Balance** | **2,144,285** | **1,727,587** | - The company typically grants customers a **30-day** credit period[90](index=90&type=chunk) [Derivative Financial Instruments](index=35&type=section&id=%E8%A1%8D%E7%94%9F%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7) The company recognized net realized gains and unrealized losses/gains from forward exchange contracts in other gains/losses net Q2 2025 Derivative Financial Instruments Profit or Loss (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Realized Gains | – | – | | Unrealized (Losses)/Gains | (2,982) | 106 | | **Total** | **(2,982)** | **106** | [Borrowings](index=36&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the company's total borrowings amounted to RMB 4,062.1 million, comprising unsecured and secured long-term and short-term bank borrowings Total Borrowings (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Liabilities | 2,687,325 | 2,794,457 | | Current Liabilities | 1,374,809 | 1,359,289 | | **Total** | **4,062,134** | **4,153,746** | [Trade Payables](index=36&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables amounted to RMB 6,233.6 million, with most balances aged within six months Trade Payables Aging Analysis (RMB '000) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Up to Six Months | 6,079,391 | 4,228,780 | | Over Six Months | 154,225 | 238,350 | | **Total** | **6,233,616** | **4,467,130** | Corporate Governance and Other Information [Interim Dividend](index=37&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend to shareholders for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[94](index=94&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=37&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) 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, and the company held no treasury shares - For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[95](index=95&type=chunk) - As of June 30, 2025, the company held no treasury shares[96](index=96&type=chunk) [Standard Code for Securities Transactions](index=37&type=section&id=%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 has adopted and complied with the Standard Code for Securities Transactions, with all directors confirming compliance, and no instances of employee breaches have been noted - The company has adopted and complied with the Standard Code, and all directors have confirmed compliance[97](index=97&type=chunk) - No instances of employee breaches of the Standard Code have been noted[97](index=97&type=chunk) [Compliance with Corporate Governance Code](index=37&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company has adopted and applied the principles and code provisions of the Corporate Governance Code and has been in compliance for the six months ended June 30, 2025 - The company has adopted and applied the Corporate Governance Code and has consistently complied with its code provisions[98](index=98&type=chunk) [Audit Committee](index=37&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%91%A1%E6%9C%83) The Audit Committee, comprising three members, has reviewed the Group's unaudited condensed consolidated financial results for the six months ended June 30, 2025, and found them to be in compliance with relevant accounting standards, rules, and regulations - The Audit Committee comprises three members, including two independent non-executive directors and one non-executive director[99](index=99&type=chunk) - Reviewed the Group's unaudited condensed consolidated financial results for the six months ended June 30, 2025, and deemed them to be in compliance with relevant accounting standards, rules, and regulations[99](index=99&type=chunk) [Events After Six Months Ended June 30, 2025](index=37&type=section&id=%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant events requiring disclosure in this announcement occurred from June 30, 2025, up to the date of this announcement - No significant post-balance sheet events occurred from June 30, 2025, up to the date of this announcement[100](index=100&type=chunk) Publication of Results Announcement and Interim Report [Publication of Results Announcement and Interim Report](index=38&type=section&id=%E5%88%8A%E7%99%BC%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 has been published on the HKEXnews website and the company's website, and the company's interim report for the three and six months ended June 30, 2025, will be dispatched or made available electronically to shareholders in due course - The results announcement has been published on the HKEXnews website (www.hkexnews.hk) and the company's website (www.tongchengir.com)[101](index=101&type=chunk) - The interim report will be dispatched or made available electronically to shareholders in due course[101](index=101&type=chunk) Definitions [Definitions](index=38&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms and phrases used in the announcement to ensure readers' accurate understanding of the report's content - Provides definitions for key terms including the Company's share incentive schemes, AI, APP, annual paying users, Audit Committee, China, the Company, Corporate Governance Code, daily active users, Directors, eLong, the Group, HKD, Hong Kong, IFRS, Listing Rules, Standard Code, monthly paying users, online travel platform, RMB, Shares, USD, Shareholders, Stock Exchange, travel service providers, Wanda Hotels Development, and Wanda Hotel Management[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[108](index=108&type=chunk) Acknowledgements [Acknowledgements](index=40&type=section&id=%E8%87%B4%E8%AC%9D) The Board of Directors extends its sincere gratitude to the company's shareholders, management team, employees, business partners, and customers, and lists the members of the Board - The Board of Directors thanks shareholders, the management team, employees, business partners, and customers for their support and contributions[105](index=105&type=chunk) - Lists the names of executive directors, non-executive directors, and independent non-executive directors[107](index=107&type=chunk)[108](index=108&type=chunk)