[Yongjia Group Holdings Limited 2024 Annual Report Supplemental Announcement](index=1&type=section&id=Yongjia%20Group%20Holdings%20Limited%202024%20Annual%20Report%20Supplemental%20Announcement) This announcement supplements Yongjia Group Holdings Limited's 2024 annual report, providing additional details on the share option scheme while affirming the unchanged status of other report contents [Basic Information of the Announcement](index=1&type=section&id=Basic%20Information%20of%20the%20Announcement) This section outlines the fundamental context of Yongjia Group Holdings Limited's supplemental announcement, including company details and its purpose as an annual report supplement - This announcement is a supplement to the **annual report** of **Yongjia Group Holdings Limited (Stock Code: 3322)** for the year ended December 31, 2024, published on **April 24, 2025**[2](index=2&type=chunk) - The announcement date is **August 15, 2025**[3](index=3&type=chunk) [Supplemental Information on Share Option Scheme](index=1&type=section&id=Supplemental%20Information%20on%20Share%20Option%20Scheme) This section provides supplementary details on the company's share option scheme, including its effective date, validity, and the number of shares available for issuance as of year-end 2024 - The company's share option scheme became effective on **June 20, 2016**, with a validity period of **ten years**[2](index=2&type=chunk) Key Data of Share Option Scheme | Metric | Data | | :--- | :--- | | **Total Shares Available for Issuance (as of January 1, 2024, and December 31, 2024)** | 128,440,000 shares | | **Percentage of Total Issued Shares (excluding treasury shares)** | 10% | - The information contained in this supplemental announcement does not affect other information in the annual report; all other information in the annual report remains **unchanged** except for the disclosed content[2](index=2&type=chunk) [Board Members](index=1&type=section&id=Board%20Members) This section lists the board members of Yongjia Group Holdings Limited as of the announcement date, highlighting the independent non-executive directors - As of the announcement date, the board members include: **Li Kwok Tung (Chairman)**, **Lai Ching Ping**, **Li Kwok Leung**, **Wong Chi Keung**, **Kwan Kai Cheong (Independent Non-executive Director)**, **Ma Ka Chun (Independent Non-executive Director)**, and **Chan Kit Fan (Independent Non-executive Director)**[3](index=3&type=chunk)[4](index=4&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Rego Interactive Co., Ltd （潤歌互動有限公司） （於開曼群島註冊成立的有限公司） （股份代號：2422） 有關二零二四年年報之補充公告 茲 提 述 潤 歌 互 動 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 度 之 年 度 報 告（「二零二四年年報」）。除 另 有 界 定 外，本 公 告 所 用 詞 彙 應 具 備 二 零 二 四 年 年 報 所 界 定 之 相 同 涵 義。 除 二 零 二 四 年 年 報 所 提 供 的 資 料 外，本 公 司 董 事 會（「董事會」）謹 此 提 供 有 關 董 事 會 報 告 所 披 露 股 份 獎 勵 計 劃（「股份獎勵計劃」）的 補 充 資 料。 股份獎勵計劃 於 二 零 二 三 年 一 ...

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。 Shenzhen Investment Holdings Bay Area Development Company Limited 深 圳 投 控 灣 區 發 展 有 限 公 司 （於開曼群島註冊成立之有限公司） 股份代號：737（港幣櫃檯）及 80737（人民幣櫃檯） 截至 2025 年 6 月 30 日止六個月之中期業績 | 摘要 ◼ | 分佔淨路費收入總計約人民幣 12.54 億元，其中，沿江高速公路（深圳段）受沿江 | | --- | --- | | | 二期和深中通道於 2024 年 6 月同步通車，以及 2025 年 1 月起貨車收費調整結束及 | | | 媽灣隧道開通的综合影響，其路費收入顯著增長；廣深高速公路和廣珠西綫高速 | | | 公路受周邊高速公路網絡進一步完善，帶來負面分流影響。 | | ◼ | 公園上城在 2025 年上半年新推出 2 座預售；合同銷售金額約人民幣 7.03 億 ...

2025 SHENG TANG HOLDINGS LIMITED 聖唐控股有限公司 （股份代號：8305） （於開曼群島註冊成立之有限公司） SHENG TANG HOLDINGS LIMITED 聖唐控股有限公司 INTERIM REPORT 2025 中期報告 目錄 | 公司資料 | 3 | | --- | --- | | 管理層討論及分析 | 5 | | 未經審核簡明綜合損益及其他全面收益表 | 18 | | 未經審核簡明綜合財務狀況表 | 19 | | 未經審核簡明綜合權益變動表 | 21 | | 未經審核簡明綜合現金流量表 | 22 | | 未經審核簡明綜合財務報表附註 | 23 | 聖唐控股有限公司 2025中期報告 公司資料 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有更高投資風險的公司提 供一個上市的市場。有意投資的人士應了解投資於該等公司的潛在風險，並應 經過審慎周詳的考慮後方作出投資決定。GEM的較高風險及其他特色，表示 GEM較適合專業及其他經驗豐富的投資者。由於GEM上市公司普遍為中小型 公司，在GEM買賣的證券可能會較於聯交所主 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於英屬處女群島註冊成立並遷冊至百慕達及於百慕達存續之有限公司） （股份代號：396） 截至二零二五年六月三十日止六個月之中期業績 中期業績 興利（香港）控股有限公司（「本公司」）董事會（各稱一位「董事」，統稱「董事會」） 謹此公佈本公司及其附屬公司（「本集團」）截至二零二五年六月三十日止六個月的 未經審核簡明綜合中期業績，連同二零二四年同期的比較數字。 1 簡明綜合中期損益表 | | | （未經審核） | | | --- | --- | --- | --- | | | | 截至六月三十日止六個月 | | | | | 二零二五年 | 二零二四年 | | | 附註 | 千港元 | 千港元 | | 營業額 | 3 | 50,446 | 61,530 | | 銷售成本 | | 45,051 | 52,385 | | 毛利 | | 5,395 | 9,145 | | 其他淨收入 | | 932 | 784 | | ...

[Company Information and Report Statements](index=1&type=section&id=Company%20Information%20and%20Report%20Statements) This section outlines TL Natural Gas Holdings Limited's GEM listing, its corporate profile, and the report's compliance and definitions [Company Profile and GEM Characteristics](index=1&type=section&id=Company%20Profile%20and%20GEM%20Characteristics) TL Natural Gas Holdings Limited, listed on GEM (stock code 8536), is incorporated in the Cayman Islands, with GEM offering listing opportunities for SMEs but carrying higher investment risks - Company name: TL Natural Gas Holdings Limited, stock code **8536**, incorporated in Cayman Islands, listed on HKEX GEM[1](index=1&type=chunk) - HKEX GEM market provides listing platform for SMEs but involves **higher investment risks**, potential market volatility, and no guarantee of high liquidity[2](index=2&type=chunk) [Report Statements and Definitions](index=2&type=section&id=Report%20Statements%20and%20Definitions) This report's information complies with GEM Listing Rules, with directors assuming full responsibility for accuracy, and all currency values are in RMB, defining CNG and LNG - Report information published in compliance with HKEX GEM Listing Rules; directors assume full responsibility for accuracy, completeness, and non-misleading nature[3](index=3&type=chunk) - All currency values in the report are presented in Renminbi ("RMB")[4](index=4&type=chunk) - Compressed Natural Gas (CNG) refers to high-pressure compressed natural gas used as a clean alternative vehicle fuel; Liquefied Natural Gas (LNG) refers to natural gas converted into liquid form[4](index=4&type=chunk) [Unaudited Condensed Consolidated Financial Results](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Results) This section presents the unaudited condensed consolidated financial statements, including income, comprehensive income, financial position, equity changes, and cash flows [Condensed Consolidated Statement of Profit or Loss](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, group revenue decreased to RMB 42,882 thousand, while loss for the period narrowed to RMB 2,679 thousand Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 42,882 | 44,424 | (1,542) | -3.47% | | Cost of sales | (39,263) | (40,563) | 1,300 | -3.20% | | Gross profit | 3,619 | 3,861 | (242) | -6.27% | | Loss before tax | (2,679) | (4,000) | 1,321 | -33.03% | | Loss for the period | (2,679) | (4,497) | 1,818 | -40.43% | | Loss for the period attributable to owners of the Company | (2,679) | (4,423) | 1,744 | -39.43% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive expense for the period significantly decreased to RMB 2,977 thousand, driven by a narrower loss and improved exchange differences Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss for the period | (2,679) | (4,497) | 1,818 | -40.43% | | Exchange differences on translating foreign operations | – | (1,958) | 1,958 | -100.00% | | Exchange differences on translating financial statements of the Company | (298) | 977 | (1,275) | -130.50% | | Other comprehensive expense for the period (net of tax) | (298) | (981) | 683 | -69.62% | | Total comprehensive expense for the period | (2,977) | (5,478) | 2,501 | -45.66% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to RMB 64,367 thousand, with net assets rising to RMB 55,880 thousand and net current assets to RMB 40,215 thousand Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total non-current assets | 15,793 | 19,997 | (4,204) | -21.02% | | Total current assets | 48,574 | 42,204 | 6,370 | 15.10% | | Total current liabilities | 8,359 | 8,324 | 35 | 0.42% | | Net current assets | 40,215 | 33,880 | 6,335 | 18.69% | | Net assets | 55,880 | 53,298 | 2,582 | 4.85% | | Total equity | 55,880 | 53,298 | 2,582 | 4.85% | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners increased to RMB 55,880 thousand, primarily due to new share issuance proceeds, partially offset by loss and exchange differences - Total equity attributable to owners of the Company was **RMB 55,880 thousand** as of June 30, 2025, an increase from **RMB 53,298 thousand** as of January 1, 2025[11](index=11&type=chunk) - The increase in equity was primarily due to net proceeds from share issuance of **RMB 5,559 thousand**, partially offset by a loss for the period of **RMB 2,679 thousand** and a decrease in exchange fluctuation reserve of **RMB 298 thousand**[11](index=11&type=chunk) - Lapse of share options resulted in a decrease in share option reserve of **RMB 4,300 thousand** and a corresponding increase in accumulated losses[11](index=11&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash and cash equivalents increased by RMB 2,521 thousand, reaching RMB 32,101 thousand at period-end, with reduced net cash used in operating activities and increased net cash from financing activities Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (2,769) | (3,506) | 737 | -21.02% | | Net cash from investing activities | 31 | 79 | (48) | -60.76% | | Net cash from financing activities | 5,259 | 2,932 | 2,327 | 79.37% | | Net increase (decrease) in cash and cash equivalents | 2,521 | (495) | 3,016 | -609.29% | | Cash and cash equivalents at end of period | 32,101 | 27,913 | 4,188 | 15.00% | [Notes to the Condensed Consolidated Interim Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the financial statements, covering general information, accounting policies, segment information, and other financial disclosures [General Information](index=9&type=section&id=General%20Information) The Company, incorporated in the Cayman Islands and listed on the Stock Exchange, primarily engages in natural gas sales and digital marketing services, with Yong Sheng Industrial Limited and Hong Sheng Industrial Limited as its holding and ultimate holding companies - The Company is incorporated in the Cayman Islands and its shares are listed on the Stock Exchange[14](index=14&type=chunk) - The Group's principal activities are natural gas sales and provision of digital marketing services[15](index=15&type=chunk) - The Company's holding company and ultimate holding company are Yong Sheng Industrial Limited and Hong Sheng Industrial Limited, respectively[14](index=14&type=chunk) [Basis of Preparation and Principal Accounting Policies](index=9&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared under HKAS 34 and GEM Listing Rules, using the historical cost convention, consistent with prior year policies, with no significant impact from new HKFRS amendments - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of the GEM Listing Rules[16](index=16&type=chunk) - The financial statements are prepared on a historical cost basis, and accounting policies are consistent with the annual consolidated financial statements for the year ended December 31, 2024[17](index=17&type=chunk) - Newly applied amendments to Hong Kong Financial Reporting Standards (HKAS 21 amendments) have no significant impact on the Group's financial position and performance[19](index=19&type=chunk) [Revenue and Operating Segment Information](index=10&type=section&id=Revenue%20and%20Operating%20Segment%20Information) The Group's main operating segments are natural gas sales and digital marketing services, with natural gas sales being the primary revenue source, while other segments do not meet reportable thresholds - The Group's reportable segments include sales of compressed natural gas and liquefied natural gas, natural gas transmission services ("Natural Gas Sales"), and provision of digital marketing services[21](index=21&type=chunk) - Other operating segments, such as automatic car wash services and fast-food catering services, do not meet the quantitative thresholds for reportable segments and are classified as "Others"[21](index=21&type=chunk) [Reportable Segments](index=11&type=section&id=Reportable%20Segments) This section details the revenue and segment results for the Group's reportable segments, primarily natural gas sales and digital marketing services 2025 First Half Segment Revenue and Results | Segment | Revenue (RMB thousands) | Segment Results (RMB thousands) | | :--- | :--- | :--- | | Natural Gas Sales | 42,882 | (574) | | Digital Marketing Services | – | (364) | | Others | – | (129) | | **Total** | **42,882** | **(1,067)** | 2024 First Half Segment Revenue and Results | Segment | Revenue (RMB thousands) | Segment Results (RMB thousands) | | :--- | :--- | :--- | | Natural Gas Sales | 44,424 | (974) | | Digital Marketing Services | – | (244) | | Others | – | (113) | | **Total** | **44,424** | **(1,331)** | [Revenue Disaggregation and Geographical Information](index=13&type=section&id=Revenue%20Disaggregation%20and%20Geographical%20Information) All the Group's revenue is generated from customers in China, primarily from CNG and LNG sales, with all non-current assets also located in China Customer Contract Revenue Disaggregation (For the six months ended June 30) | Type of Goods or Services | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of compressed natural gas and liquefied natural gas | 42,882 | 44,424 | | **Total Revenue** | **42,882** | **44,424** | - During the reporting period, all the Group's revenue was generated from customers located in China[26](index=26&type=chunk) - As of June 30, 2025, all non-current assets by geographical location were in China, amounting to **RMB 15,793 thousand**[27](index=27&type=chunk) [Major Customer Information](index=13&type=section&id=Major%20Customer%20Information) The Group did not have any major customers whose revenue accounted for 10% or more of the Group's total revenue during the two periods - The Group had no major customers whose revenue amounted to or exceeded **10%** of the Group's total revenue for the two periods[28](index=28&type=chunk) [Other Income, Gains and Other Losses](index=14&type=section&id=Other%20Income%2C%20Gains%20and%20Other%20Losses) For the six months ended June 30, 2025, total other income, gains, and other losses decreased to RMB 88 thousand, mainly due to lower bank interest income Other Income, Gains and Other Losses (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 75 | 137 | | Net exchange loss | (1) | (1) | | Miscellaneous income | 14 | 23 | | **Total** | **88** | **159** | [Loss Before Tax](index=14&type=section&id=Loss%20Before%20Tax) For the six months ended June 30, 2025, the Group's loss before tax was primarily driven by cost of inventories sold, depreciation, amortization, utility expenses, transportation expenses, auditor's remuneration, and employee benefit expenses Loss Before Tax Major Components (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories sold | 37,119 | 38,152 | | Depreciation of property, plant and equipment | 1,197 | 1,313 | | Depreciation of right-of-use assets | 276 | 520 | | Amortisation of other intangible assets | 28 | 5 | | Employee benefit expenses | 3,055 | 3,148 | [Finance Costs](index=15&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs decreased to RMB 14 thousand, primarily consisting of interest on lease liabilities Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on lease liabilities | 14 | 26 | [Tax](index=15&type=section&id=Tax) For the six months ended June 30, 2025, the Group did not provide for current income tax expense due to no taxable profit and no significant deferred tax, with Chinese subsidiaries subject to a 25% corporate income tax rate Tax Analysis (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax – China | – | – | | Deferred tax | – | 497 | | **Total tax for the period** | **–** | **497** | - The Group is not subject to income tax in the Cayman Islands and British Virgin Islands, and no Hong Kong profits tax was provided for Hong Kong subsidiaries due to no assessable profits[33](index=33&type=chunk) - Chinese subsidiaries are subject to corporate income tax at a statutory rate of **25%**[33](index=33&type=chunk) [Loss Per Share](index=16&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share attributable to owners narrowed to RMB (1.46) cents, with diluted loss per share being the same due to the anti-dilutive effect of share options Loss Per Share Calculation (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the Company (RMB thousands) | (2,679) | (4,423) | | Weighted average number of ordinary shares (thousands) | 183,839 | 182,249 | | **Basic loss per share (cents)** | **(1.46)** | **(2.43)** | - Diluted loss per share is the same as basic loss per share because the outstanding share options had an anti-dilutive effect on the basic loss per share amount[35](index=35&type=chunk) [Dividends](index=16&type=section&id=Dividends) The Board did not declare any dividends for the six months ended June 30, 2025, consistent with the prior period - The Board did not declare any dividends for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[36](index=36&type=chunk) [Movements in Property, Plant and Equipment and Right-of-Use Assets](index=16&type=section&id=Movements%20in%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) During the interim period, the Group acquired property, plant, and equipment at a cost of RMB 44 thousand, a decrease from the prior period, with no additions to right-of-use assets in either period - The Group acquired property, plant and equipment at a cost of **RMB 44 thousand** during the interim period, a decrease from **RMB 58 thousand** in the prior period[37](index=37&type=chunk) - No additions to right-of-use assets were identified in either period[38](index=38&type=chunk) [Trade Receivables](index=17&type=section&id=Trade%20Receivables) As of June 30, 2025, net trade receivables slightly increased to RMB 1,886 thousand, with a typical credit period of one month and no collateral held Net Trade Receivables (As of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Gross trade receivables | 1,907 | 1,816 | | Less: Provision for expected credit losses | (21) | (14) | | **Net trade receivables** | **1,886** | **1,802** | - The Group primarily enters into trade terms with customers on credit, with a typical credit period of **one month**, and holds no collateral or other credit enhancements for trade receivable balances[39](index=39&type=chunk) Trade Receivables Ageing Analysis (As of June 30) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 1,886 | 1,802 | [Trade Payables](index=18&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables significantly decreased to RMB 22 thousand, with supplier credit periods ranging from 30 to 90 days Trade Payables Ageing Analysis (As of June 30) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | – | 119 | | 3 to 6 months | 22 | – | | **Total** | **22** | **119** | - The Group is generally granted credit periods ranging from **30 to 90 days** by its suppliers[43](index=43&type=chunk) [Share Capital](index=18&type=section&id=Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital increased to RMB 7,280 thousand, comprising 212,505,000 shares, primarily due to the issuance of 29,310,000 new shares during the period Share Capital Movements (As of June 30) | Indicator | June 30, 2025 (Number of Shares) | June 30, 2025 (RMB thousands) | December 31, 2024 (Number of Shares) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | At beginning of period/year | 183,195,000 | 6,210 | 183,195,000 | 5,990 | | Shares issued | 29,310,000 | 1,070 | 5,940,000 | 220 | | **At end of period/year** | **212,505,000** | **7,280** | **189,135,000** | **6,210** | - On June 27, 2025, **29,310,000 shares** were placed at **HK$0.225 per share** under the terms of a placing agreement, generating gross proceeds of approximately **RMB 6,018 thousand** and net proceeds of approximately **RMB 5,559 thousand**[44](index=44&type=chunk) [Related Party Transactions](index=19&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, total remuneration paid to key management personnel decreased to RMB 515 thousand Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Short-term employee benefits | 507 | 581 | | Contributions to pension schemes | 8 | 8 | | **Total remuneration paid to key management personnel** | **515** | **589** | [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a review of the Group's business operations, financial performance, future outlook, capital structure, and other relevant management insights [Business Review](index=20&type=section&id=Business%20Review) The Group primarily operates in Jingzhou, Hubei Province, China, focusing on CNG and LNG sales and transmission services, procuring CNG from PetroChina and distributing to retail and wholesale customers - The Group's principal place of business is in Jingzhou, Hubei Province, China, engaging in CNG and LNG sales and transmission services[46](index=46&type=chunk) - The Group primarily supplies CNG, with revenue derived from distributing CNG to retail customers (vehicle end-users) and wholesale customers (city gas companies, gas station operators, and industrial users), procuring natural gas from PetroChina Company Limited[47](index=47&type=chunk) - The Group also supplies LNG to some wholesale customers[47](index=47&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's revenue decreased by 3.38% to RMB 42.9 million, while loss for the period narrowed by 38.6% to RMB 2.7 million, with a slight decline in gross profit margin and a significant reduction in administrative expenses [Revenue](index=20&type=section&id=Revenue) Total revenue for the six months ended June 30, 2025, decreased by 3.38% to RMB 42.9 million, with increased LNG sales offsetting declines in wholesale CNG sales Revenue Composition and Change (For the six months ended June 30) | Revenue Source | 2025 (RMB millions) | 2024 (RMB millions) | Change (millions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 42.9 | 44.4 | (1.5) | -3.38% | | Sales of CNG to wholesale customers | 12.9 | 17.6 | (4.7) | -26.7% | | Sales of CNG to retail customers | 6.6 | 6.2 | 0.4 | 6.5% | | Sales of LNG | 23.4 | 20.6 | 2.8 | 13.6% | - The increase in LNG sales revenue was due to increased local community demand[48](index=48&type=chunk) [Cost of Sales](index=20&type=section&id=Cost%20of%20Sales) Cost of sales for the six months ended June 30, 2025, decreased by 3.2% to RMB 39.3 million, primarily due to a reduction in the cost of inventories sold Cost of Sales Change (For the six months ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (millions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of sales | 39.3 | 40.6 | (1.3) | -3.2% | | Cost of inventories sold | 37.1 | 38.2 | (1.1) | -2.9% | [Gross Profit](index=21&type=section&id=Gross%20Profit) Gross profit for the six months ended June 30, 2025, decreased by 7.69% to RMB 3.6 million, with the gross profit margin slightly declining to 8.4% Gross Profit and Gross Profit Margin Change (For the six months ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (millions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross profit | 3.6 | 3.9 | (0.3) | -7.69% | | Gross profit margin | 8.4% | 8.7% | -0.3% | -3.45% | - The decrease in gross profit margin was mainly due to price guidance from Hubei Provincial Price Bureau and Jingzhou Price Bureau, which prevented the full pass-through of increased natural gas procurement costs, and the low gross profit margin of LNG sales[50](index=50&type=chunk) [Selling and Distribution Expenses](index=21&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses remained stable at approximately RMB 0.3 million for the six months ended June 30, 2025 - Selling and distribution expenses, primarily staff costs and other office expenses for the operating department, remained stable at approximately **RMB 0.3 million** for the six months ended June 30, 2025[51](index=51&type=chunk) [Administrative Expenses](index=21&type=section&id=Administrative%20Expenses) Administrative expenses for the six months ended June 30, 2025, decreased significantly by 20.8% to RMB 6.1 million, mainly due to reduced legal, professional, and consulting fees, and lower staff costs Administrative Expenses Change (For the six months ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (millions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Administrative expenses | 6.1 | 7.7 | (1.6) | -20.8% | - The decrease in administrative expenses was mainly due to a reduction of approximately **RMB 0.7 million** in legal and professional fees and consulting fees, and a reduction of approximately **RMB 0.4 million** in staff costs[52](index=52&type=chunk) [Finance Costs](index=21&type=section&id=Finance%20Costs) Finance costs primarily represent interest on lease liabilities - Finance costs refer to interest on lease liabilities[53](index=53&type=chunk) [Tax](index=21&type=section&id=Tax) For the six months ended June 30, 2025, the Group did not provide for current income tax expense due to no taxable profit and no significant deferred tax - For the six months ended June 30, 2025, the Group did not provide for current income tax expense as no assessable profits were generated during the period and there was no significant deferred tax[54](index=54&type=chunk) [Loss for the Period](index=21&type=section&id=Loss%20for%20the%20Period) Loss attributable to owners for the six months ended June 30, 2025, narrowed by 38.6% to RMB 2.7 million, primarily due to reduced administrative expenses Loss for the Period Attributable to Owners of the Company Change (For the six months ended June 30) | Indicator | 2025 (RMB millions) | 2024 (RMB millions) | Change (millions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company | 2.7 | 4.4 | (1.7) | -38.6% | - The decrease in loss was mainly due to a reduction in administrative expenses from approximately **RMB 7.7 million** to approximately **RMB 6.1 million**[55](index=55&type=chunk) [Prospects](index=22&type=section&id=Prospects) Despite global economic challenges, the Group is optimistic about China's natural gas consumption growth driven by clean energy policies, actively exploring new business opportunities, mitigating risks, and prudently considering new investments - The global economic landscape is expected to remain challenging, with geopolitical tensions and a slowdown in China's property market potentially prolonging financial difficulties and hindering growth[56](index=56&type=chunk) - The Group is optimistic about China's natural gas consumption growth, benefiting from the Chinese government's promotion of clean energy (coal-to-gas conversion) and pollution control policies[56](index=56&type=chunk) - The Group will actively explore new business opportunities, diversify revenue streams, mitigate risks, and prudently consider new investments to enhance shareholder value[56](index=56&type=chunk) [Dividends](index=22&type=section&id=Dividends) The Board does not recommend paying any dividends for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend paying any dividends for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[57](index=57&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=22&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group had total equity of approximately RMB 55.9 million and cash and cash equivalents of RMB 32.1 million, demonstrating sufficient working capital and liquidity with no interest-bearing bank borrowings Capital Structure and Liquidity (As of June 30) | Indicator | June 30, 2025 (RMB millions) | | :--- | :--- | | Total equity | 55.9 | | Cash and cash equivalents | 32.1 | | Working capital (Net current assets) | 40.2 | | Current ratio | 5.8 | - The Group has no interest-bearing bank borrowings, thus the gearing ratio is not applicable[58](index=58&type=chunk) - Given stable operating cash inflows and sufficient cash balances, the Group possesses adequate liquidity and financial resources[58](index=58&type=chunk) [Prepayments and Other Receivables](index=23&type=section&id=Prepayments%20and%20Other%20Receivables) As of June 30, 2025, prepayments and other receivables increased to RMB 14.5 million, primarily comprising supplier deposits and advances to third parties Prepayments and Other Receivables Composition (As of June 30) | Item | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | | :--- | :--- | :--- | | Total prepayments and other receivables | 14.5 | 10.9 | | Deposits to suppliers and advances to third parties | 8.7 | 4.9 | | Prepaid expenses | 3.3 | 3.5 | | Amounts due from directors | 2.5 | 2.5 | [Commitments](index=23&type=section&id=Commitments) As of June 30, 2025, the Group had no contracted but unprovided capital commitments, compared to RMB 539 thousand for plant and machinery commitments as of December 31, 2024 Capital Commitments (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted, but not provided for: Plant and machinery | – | 539 | [Contingent Liabilities and Guarantees](index=23&type=section&id=Contingent%20Liabilities%20and%20Guarantees) As of June 30, 2025, the Group had no significant contingent liabilities and guarantees - As of June 30, 2025, the Group had no significant contingent liabilities and guarantees[61](index=61&type=chunk) [Pledge of Assets](index=23&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledge of assets - As of June 30, 2025, the Group had no pledge of assets[62](index=62&type=chunk) [Foreign Currency Risk](index=23&type=section&id=Foreign%20Currency%20Risk) The Group primarily operates in China with transactions denominated in RMB, experiencing no significant impact from exchange rate fluctuations during the period and undertaking no hedging transactions - The Group operates its business in China, with most transactions denominated in RMB, and did not experience significant impact or difficulties from exchange rate fluctuations on operating liquidity during the period[63](index=63&type=chunk) - The Group has not entered into any hedging transactions or forward contract arrangements[63](index=63&type=chunk) [Interest Rate Risk](index=23&type=section&id=Interest%20Rate%20Risk) The Group has no significant interest rate risk, currently lacks specific management policies, but will closely monitor future risks - The Group has no significant interest rate risk, currently has no specific policies for managing interest rate risk, and has not entered into any interest rate swap transactions[64](index=64&type=chunk) [Material Investments, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures and Future Plans for Material Investments or Capital Assets](index=23&type=section&id=Material%20Investments%2C%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The Company held no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period, and the Board currently has no other plans for material investments or capital asset increases - The Company held no material investments, nor any material acquisitions and disposals of subsidiaries, associates, and joint ventures during the period[65](index=65&type=chunk) - As of the date of this report, the Board has not authorized any other plans for material investments or increases in capital assets[66](index=66&type=chunk) [Employees and Remuneration Policy](index=24&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 66 employees with staff costs of approximately RMB 3.1 million, and remuneration policy is based on market salaries, individual performance, commitment, and responsibilities, with training provided Employee Count and Costs (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total employees | 66 | 69 | | Staff costs (For the six months ended June 30, RMB millions) | 3.1 | 2.7 | - Remuneration is determined with reference to comparable market salaries, individual performance, commitment, and responsibilities, with relevant internal and/or external training provided[67](index=67&type=chunk) [Fundraising Activities](index=24&type=section&id=Fundraising%20Activities) The Group conducted two placing activities during the reporting period, the 2024 and 2025 placings, aimed at expanding the shareholder base, capital base, and raising funds [2024 Placing](index=24&type=section&id=2024%20Placing) On January 30, 2024, the Company successfully placed 5,940,000 shares at HK$0.658 per share, with proceeds allocated for renewable energy-related businesses and general working capital - On January 30, 2024, the Company successfully placed **5,940,000 shares** at a placing price of **HK$0.658 per share**[69](index=69&type=chunk) 2024 Placing Proceeds Usage (HK$ millions) | Description | Intended Use Amount | Percentage of Net Proceeds | Utilized as of June 30, 2025 | Unutilized as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Investment in renewable energy-related businesses | 1.5 | 50% | – | 1.5 | | General working capital | 1.5 | 50% | 1.5 | – | | **Total** | **3.0** | **100%** | **1.5** | **1.5** | - The unutilized amount is expected to be utilized before the end of 2025[70](index=70&type=chunk) [2025 Placing](index=25&type=section&id=2025%20Placing) On June 27, 2025, the Company successfully placed 29,310,000 shares at HK$0.225 per share, with proceeds intended for a potential joint venture in black pellet trading and general working capital - On June 27, 2025, the Company successfully placed **29,310,000 shares** at a placing price of **HK$0.225 per share**[72](index=72&type=chunk) 2025 Placing Proceeds Usage (HK$ millions) | Description | Intended Use Amount | Percentage of Net Proceeds | Utilized as of June 30, 2025 | Unutilized as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Possible establishment of a joint venture for trading black pellets | 3.0 | 50% | – | 3.0 | | General working capital | 3.0 | 50% | – | 3.0 | | **Total** | **6.0** | **100%** | **–** | **6.0** | - The proposed investment in the joint venture is expected in 2025, and net proceeds for general working capital are expected to be utilized before 2026[73](index=73&type=chunk) [Use of Proceeds](index=27&type=section&id=Use%20of%20Proceeds) The Company's net proceeds from its 2018 listing, approximately HK$29.2 million, were primarily for expanding the gas station network and upgrading the Jingzhou mother station, with the latter completed in 2021 and other station constructions awaiting government approval [Use of Listing Proceeds](index=27&type=section&id=Use%20of%20Listing%20Proceeds) This section details the allocation of net proceeds from the Company's 2018 listing, primarily for expanding the gas station network and upgrading the Jingzhou mother station Listing Proceeds Usage (HK$ thousands) | Description | Intended Use in Prospectus | Percentage of Net Proceeds | Actual Use as of June 30, 2025 | Unutilized Amount as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Construction of a CNG gas station to expand the gas station network | 5,212 | 17.9% | 2,400 | 2,812 | | Construction of an integrated CNG/LNG gas station to expand the gas station network | 12,250 | 42.0% | 2,334 | 9,916 | | Upgrade of infrastructure and equipment at Jingzhou mother station to include LNG refueling capability | 8,772 | 30.1% | 8,772 | – | | Working capital and other general corporate purposes | 2,916 | 10.0% | 2,916 | – | | **Total** | **29,150** | **100.0%** | **16,422** | **12,728** | [Progress of Implementation Plan](index=28&type=section&id=Progress%20of%20Implementation%20Plan) Plans for building CNG and integrated CNG/LNG stations are awaiting government approval, while the Jingzhou mother station upgrade was completed in 2021, and unutilized proceeds are held in licensed banks - Plans to construct CNG gas stations and integrated CNG/LNG gas stations have obtained equipment quotations, negotiated consultant terms, and submitted applications to the government, with completion expected by the end of 2025[76](index=76&type=chunk) - The implementation plan to upgrade infrastructure and equipment at the Jingzhou mother station to include LNG refueling capability was completed in **2021**, and the mother station can now sell both CNG and LNG[76](index=76&type=chunk)[77](index=77&type=chunk) - Due to the demolition of a sub-station, the Company has been seeking relocation opportunities, and other gas station constructions are awaiting approval from relevant government authorities[77](index=77&type=chunk) - As of June 30, 2025, the unutilized net proceeds were deposited in licensed banks in China[77](index=77&type=chunk) - The Directors do not anticipate any changes to the major plans for the use of proceeds[78](index=78&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section covers various other disclosures, including directors' and major shareholders' interests, share option schemes, compliance, and corporate governance [Directors' and Chief Executive's Interests and/or Short Positions in Shares, Underlying Shares and Debentures of the Company and any Associated Corporations](index=29&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%2For%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20any%20Associated%20Corporations) As of June 30, 2025, Executive Directors Mr. Liu Yongcheng and Mr. Liu Yongqiang, acting in concert, were deemed to have long positions in approximately 35.82% of the Company's total issued shares Directors' and Chief Executive's Long Positions in Ordinary Shares and Underlying Shares of the Company (As of June 30) | Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Liu Yongcheng | Interest in controlled corporation and parties acting in concert | 76,125,000 | 35.82% | | Mr. Liu Yongqiang | Interest in controlled corporation and parties acting in concert | 76,125,000 | 35.82% | - Mr. Liu Yongcheng directly owns **100%** interest in Yong Sheng Industrial Limited, which holds **19,392,500 shares**. Mr. Liu Yongqiang directly owns **100%** interest in Hong Sheng Industrial Limited, which holds **56,732,500 shares**[81](index=81&type=chunk) - Mr. Liu Yongcheng and Mr. Liu Yongqiang are parties acting in concert, and thus are deemed or taken to be interested in the shares held by each other[81](index=81&type=chunk) [Substantial Shareholders' Interests and/or Short Positions in Shares and Underlying Shares of the Company](index=31&type=section&id=Substantial%20Shareholders%27%20Interests%20and%2For%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Yong Sheng Industrial Limited and Hong Sheng Industrial Limited, acting in concert, held approximately 35.82% interest each in the Company's issued shares, while An Wen Development Limited held 6.53% Substantial Shareholders' Long Positions in Ordinary Shares and Underlying Shares of the Company (As of June 30) | Name | Capacity | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Yong Sheng Industrial Limited | Beneficial owner and parties acting in concert | 76,125,000 | 35.82% | | Hong Sheng Industrial Limited | Beneficial owner and parties acting in concert | 76,125,000 | 35.82% | | An Wen Development Limited | Beneficial owner | 13,872,500 | 6.53% | - The interests of Yong Sheng Industrial Limited and Hong Sheng Industrial Limited are controlled by Mr. Liu Yongcheng and Mr. Liu Yongqiang, respectively, through direct shareholding and acting-in-concert agreements[84](index=84&type=chunk)[85](index=85&type=chunk) - Mr. Yu Jianwei directly owns **100%** interest in An Wen Development Limited[85](index=85&type=chunk) [Share Option Scheme](index=32&type=section&id=Share%20Option%20Scheme) The Company's share option scheme was approved on April 20, 2018; all existing options lapsed during the six months ended June 30, 2025, with no expense recognized, and 8,500,000 new options were granted post-period on July 8, 2025 - The Share Option Scheme was approved and adopted by shareholders on **April 20, 2018**[86](index=86&type=chunk) - During the six months ended June 30, 2025, all existing share options lapsed, and no share option expense was recognized for the period[94](index=94&type=chunk) - The vesting period for share options is divided into three tranches: **30%** from the grant date to expiry, **30%** from the first anniversary of the grant date to expiry, and **40%** from the second anniversary of the grant date to expiry[92](index=92&type=chunk) - Share options are exercisable for a period of **five years** from the grant date, with fair value calculated using the Binomial Option Pricing Model[92](index=92&type=chunk) - Subsequent to the end of the reporting period, on July 8, 2025, the Company granted a total of **8,500,000 share options**, representing approximately **4.00%** of the issued shares as of the date of this report[95](index=95&type=chunk) [Directors' Rights to Acquire Shares](index=35&type=section&id=Directors%27%20Rights%20to%20Acquire%20Shares) For the six months ended June 30, 2025, the Company granted no rights to any directors or their associates to acquire benefits by purchasing the Company's shares or debentures - For the six months ended June 30, 2025, the Company did not grant any rights to any directors or their respective spouses or children under 18 years of age to acquire benefits by purchasing the Company's shares or debentures[96](index=96&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[97](index=97&type=chunk) [Compliance with the Required Standard of Dealings by Directors in Securities Transactions](index=35&type=section&id=Compliance%20with%20the%20Required%20Standard%20of%20Dealings%20by%20Directors%20in%20Securities%20Transactions) The Company adopted the required standard of dealings for directors' securities transactions as per GEM Listing Rules, and all directors confirmed compliance for the six months ended June 30, 2025 - The Company has adopted the required standard of dealings as set out in Rules 5.48 to 5.67 of the GEM Listing Rules as its code of conduct for directors' securities transactions[98](index=98&type=chunk) - Following specific enquiries made to all Directors, all Directors confirmed their compliance with the required standard of dealings for the six months ended June 30, 2025[98](index=98&type=chunk) [Non-Competition Undertaking](index=36&type=section&id=Non-Competition%20Undertaking) The controlling shareholders signed a non-competition undertaking on April 20, 2018, and confirmed compliance during the reporting period, committing not to engage in any business competing with the Group - The Group's controlling shareholders signed a non-competition undertaking on **April 20, 2018**, and confirmed compliance with the undertaking during the period[99](index=99&type=chunk) - The controlling shareholders undertake not to directly or indirectly conduct, operate, or engage in any business that competes or may compete significantly with the existing business activities of any member of the Group[99](index=99&type=chunk) [Competing Interests](index=36&type=section&id=Competing%20Interests) As of June 30, 2025, no directors, controlling shareholders, or substantial shareholders, or their close associates, held any positions or interests in businesses that compete significantly with the Group's operations - For the six months ended June 30, 2025, to the best knowledge of the Directors, no Directors, controlling shareholders, and substantial shareholders of the Company, or their respective close associates, held any positions or interests in any business or company that competes or may compete significantly with the Group's business[100](index=100&type=chunk) [Corporate Governance Code](index=36&type=section&id=Corporate%20Governance%20Code) The Company adopted and complied with the Corporate Governance Code in Appendix C1 of the GEM Listing Rules, with a deviation where the Chairman and Chief Executive are the same person, which the Board deems appropriate with proper checks and balances - The Company has adopted and complied with the Corporate Governance Code as set out in Appendix C1 to the GEM Listing Rules[101](index=101&type=chunk) - There is one deviation: the roles of Chairman and Chief Executive are performed by Mr. Liu Yongcheng, which deviates from Code Provision C.2.1[101](index=101&type=chunk) - The Board believes this deviation is appropriate as Mr. Liu Yongcheng is familiar with the Group's operations, and there are proper checks and balances exercised by the Board and three independent non-executive Directors[101](index=101&type=chunk) [Update on Directors' Information](index=37&type=section&id=Update%20on%20Directors%27%20Information) For the six months ended June 30, 2025, no changes in directors' information required disclosure under GEM Listing Rule 17.50A(1) - For the six months ended June 30, 2025, no changes in directors' information were required to be disclosed pursuant to Rule 17.50A(1) of the GEM Listing Rules[102](index=102&type=chunk) [Audit and Risk Management Committee](index=37&type=section&id=Audit%20and%20Risk%20Management%20Committee) The Company established an Audit and Risk Management Committee, comprising three independent non-executive directors, which reviewed the Group's unaudited condensed consolidated financial statements and this report for the six months ended June 30, 2025 - The Company has established an Audit and Risk Management Committee, whose written terms of reference comply with Code Provision D.3.3 of the Corporate Governance Code[103](index=103&type=chunk) - The Committee comprises three independent non-executive Directors: Mr. Yang Zhenyu (Chairman), Ms. Luo Hongru, and Ms. Zeng Li[103](index=103&type=chunk) - The Committee has reviewed the Group's unaudited condensed consolidated financial statements and this report for the six months ended June 30, 2025[103](index=103&type=chunk) [Post-Balance Sheet Events](index=37&type=section&id=Post-Balance%20Sheet%20Events) Except as disclosed in this report, no significant events occurred after the end of the reporting period - Save as disclosed in this report, no significant events occurred after the end of the reporting period[104](index=104&type=chunk) [Forward-Looking Statements](index=37&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements regarding the Group's future financial condition, operating results, and business, which involve known and unknown risks and uncertainties that could cause actual results to differ materially from expectations - This report contains forward-looking statements regarding the Group's financial condition, operating results, and business[105](index=105&type=chunk) - These forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from expectations[105](index=105&type=chunk) [By Order of the Board](index=37&type=section&id=By%20Order%20of%20the%20Board) This report was issued by Mr. Liu Yongcheng, Chairman and Chief Executive Officer, on behalf of the Board on August 14, 2025, with the Board comprising three executive and three independent non-executive directors - This report was issued by Mr. Liu Yongcheng, Chairman and Chief Executive Officer, on behalf of the Board on **August 14, 2025**[106](index=106&type=chunk) - The Board comprises Executive Directors Mr. Liu Yongcheng, Mr. Liu Yongqiang, and Mr. Liu Yongsheng; and Independent Non-executive Directors Ms. Luo Hongru, Ms. Zeng Li, and Mr. Yang Zhenyu[106](index=106&type=chunk)

[Management Discussion and Analysis](index=1&type=section&id=Management%20Discussion%20and%20Analysis) [Overview](index=1&type=section&id=Overview) H1 2025 saw Playmates Group's revenue drop 50.5% due to toy business decline, leading to expanded operating and attributable losses despite unchanged interim dividends Key Financial Data Overview for H1 2025 | Indicator | H1 2025 (HKD Thousands) | H1 2024 (HKD Thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Group Revenue | 261,116 | 526,666 | -50.5% | | —Toy Business | 185,514 | 445,141 | -58.3% | | —Property Investment and Management Business | 74,800 | 79,339 | -5.7% | | —Investment Business | 802 | 2,186 | -63.3% | | Gross Profit | 146,835 | 324,137 | -54.7% | | Net Revaluation Loss on Investment Properties | (234,926) | (249,529) | -5.9% | | Operating Loss | (227,641) | (121,081) | +88.0% | | Loss Before Income Tax | (198,940) | (80,414) | +147.4% | | Loss Attributable to Owners of the Company | (205,570) | (159,880) | +28.6% | | Loss Per Share (HK cents) | (9.94) | (7.72) | +28.8% | | Interim Dividend Per Share (HK cents) | 1.50 | 1.50 | 0.0% | - Group revenue significantly decreased by **50.5%** year-on-year to **HKD 261.116 million**, primarily due to a sharp reduction in toy business revenue[2](index=2&type=chunk) - Loss attributable to owners of the Company expanded to **HKD 205.57 million**, with basic loss per share increasing to **9.94 HK cents**[2](index=2&type=chunk) - Net revaluation loss on investment properties was **HKD 234.926 million**, slightly lower than the prior period, but remained a primary cause of operating loss[2](index=2&type=chunk)[3](index=3&type=chunk) [Property Investment and Management Business](index=1&type=section&id=Property%20Investment%20and%20Management%20Business) Property segment revenue fell 5.7% to HKD 74.8M, with HKD 234.9M revaluation losses causing a HKD 183.1M operating loss, yet long-term optimism persists - Property Investment and Management segment revenue decreased by **5.7%** year-on-year to **HKD 74.8 million**[3](index=3&type=chunk) - Fair value of investment properties was **HKD 4.2 billion**, with a net revaluation loss of **HKD 234.9 million**[3](index=3&type=chunk) - Segment operating loss (including property revaluation) was **HKD 183.1 million**, a slight narrowing compared to the prior period[3](index=3&type=chunk) - Total rental income from investment properties was **HKD 65 million**, a **5.1%** year-on-year decrease[4](index=4&type=chunk) - Overall occupancy rate of investment properties was approximately **58.8%**, down from **60.3%** as of December 31, 2024[4](index=4&type=chunk) [Property Investment](index=2&type=section&id=Property%20Investment) Key investment properties in Hong Kong and overseas face market challenges, but renovations and redevelopments aim to enhance long-term value - Key investment properties include commercial buildings (Playmates Group Building), residential units (Mid-Levels Tower), and industrial buildings (Playmates Industrial Building) in Hong Kong[4](index=4&type=chunk) - Overseas investment properties accounted for **9.6%** of the Group's total investment property portfolio fair value (December 31, 2024: **8.6%**)[4](index=4&type=chunk) - The Hong Kong retail and commercial property markets face challenges due to changing consumption patterns, office oversupply, and weak demand[5](index=5&type=chunk) - Internal renovation and refurbishment works for Mid-Levels Tower residential units commenced in 2021, expected to enhance long-term value[6](index=6&type=chunk) - Playmates Industrial Building received conditional planning approval for conversion to commercial use, with subsequent approval procedures currently underway[7](index=7&type=chunk) [Property Management](index=2&type=section&id=Property%20Management) Property management revenue decreased by 9.3% to HKD 9.8M, with Savills appointed for services, as the Group balances its portfolio for growth - Property management business segment revenue decreased by **9.3%** to **HKD 9.8 million**[9](index=9&type=chunk) - Savills Property Management Limited was appointed to manage Playmates Group Building and Playmates Industrial Building, providing comprehensive property management services[8](index=8&type=chunk) - The Group remains optimistic about the long-term prospects of property investment and will appropriately balance its investment property portfolio to achieve capital appreciation and recurring income growth[9](index=9&type=chunk) [Playmates Toys Business](index=3&type=section&id=Playmates%20Toys%20Business) Playmates Toys' global revenue plunged 58% to HKD 186M due to weak brands and trade tensions, resulting in a 43% gross margin and HKD 45M operating loss - Playmates Toys' global revenue decreased by **58%** year-on-year to **HKD 186 million**[10](index=10&type=chunk) - The revenue decrease was primarily attributed to reduced shipments of "Godzilla x Kong" products, a lack of major entertainment-driven events for the "Teenage Mutant Ninja Turtles" brand, and trade tensions hindering product shipments to the US market[10](index=10&type=chunk) - Toy sales gross margin decreased from **56%** in the prior period to **43%**, mainly impacted by US import tariffs, increased product development and tooling costs as a percentage of sales, and higher clearance costs for discontinued products[10](index=10&type=chunk) - Playmates Toys Group recorded an operating loss of **HKD 45 million** (prior period: operating profit of **HKD 68 million**), with a net loss of **HKD 25.6 million**[11](index=11&type=chunk) - The Group is prudently evaluating alternative sourcing options and closely monitoring changes in consumer behavior to address challenges from global trade dynamics and tariff adjustments[11](index=11&type=chunk) [Brand Overview](index=3&type=section&id=Brand%20Overview) The Group develops new product lines for key brands like Ninja Turtles and Power Rangers, aligning with entertainment releases to maintain relevance - The "Teenage Mutant Ninja Turtles" brand will launch a four-season series to connect with the movies, with the first season already aired on Paramount+ and Netflix, and seasons two to four planned for premiere this autumn[12](index=12&type=chunk) - A global licensing agreement was signed with Hasbro to produce and distribute "Power Rangers" toys, with initial products shipped and receiving positive feedback[13](index=13&type=chunk) - As the primary global toy licensee for "Godzilla x Kong," the Group will continue to develop and expand product lines, bringing MonsterVerse characters to life[14](index=14&type=chunk) - The "Winx Club: The Magic Is Back" CGI reboot will premiere on Netflix in October 2025, with the Group launching new fashion dolls and role-play toy lines this autumn[15](index=15&type=chunk) [Investment Business](index=4&type=section&id=Investment%20Business) The investment portfolio, valued at HKD 98.9M, generated HKD 11.5M net gain and HKD 22.2M income in H1 2025, with cautious monitoring ongoing - The fair market value of the investment portfolio was **HKD 98.9 million** (December 31, 2024: **HKD 109.1 million**), representing **1.7%** of the Group's total assets (December 31, 2024: **1.8%**)[17](index=17&type=chunk) - The investment portfolio included **HKD 23.6 million** in Hong Kong-listed securities and **HKD 75.3 million** in overseas-listed securities[17](index=17&type=chunk) - The top ten listed securities included NVIDIA, Amazon, Disney, Netflix, Tencent, Microsoft, Alphabet, Sun Hung Kai Properties, Goldman Sachs, and Apple[17](index=17&type=chunk) - A net investment gain of **HKD 11.5 million** was recorded in H1 2025 (H1 2024: **HKD 18.5 million**)[18](index=18&type=chunk) - Dividend and interest income from the investment portfolio amounted to **HKD 22.2 million** (H1 2024: **HKD 32.2 million**)[18](index=18&type=chunk) [Condensed Consolidated Financial Information](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Information) [Condensed Consolidated Statement of Profit or Loss](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) H1 2025 saw group revenue decline, leading to expanded operating and pre-tax losses, culminating in a HKD 218M period loss due to revaluation losses Key Data from Condensed Consolidated Statement of Profit or Loss (HKD Thousands) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 261,116 | 526,666 | -50.5% | | Cost of Sales | (114,281) | (202,529) | -43.6% | | Gross Profit | 146,835 | 324,137 | -54.7% | | Marketing and License Expenses | (47,609) | (91,651) | -48.1% | | Selling and Distribution Expenses | (15,629) | (31,725) | -50.7% | | Administrative Expenses | (76,312) | (72,313) | +5.5% | | Net Revaluation Loss on Investment Properties | (234,926) | (249,529) | -5.9% | | Operating Loss | (227,641) | (121,081) | +88.0% | | Net Other Income | 33,242 | 48,651 | -31.7% | | Finance Costs | (4,541) | (7,984) | -43.1% | | Loss Before Income Tax | (198,940) | (80,414) | +147.4% | | Income Tax Expense | (19,218) | (34,485) | -44.3% | | Loss for the Period | (218,158) | (114,899) | +89.9% | | Loss Attributable to Owners of the Company | (205,570) | (159,880) | +28.6% | - Period loss increased from **HKD 114.9 million** to **HKD 218.2 million**, and loss attributable to owners of the Company increased from **HKD 159.9 million** to **HKD 205.6 million**[20](index=20&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Period loss expanded to HKD 218M, but positive foreign exchange differences partially offset this, resulting in a wider total comprehensive loss year-on-year Key Data from Condensed Consolidated Statement of Comprehensive Income (HKD Thousands) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (218,158) | (114,899) | +89.9% | | Exchange Differences Arising from Translation of Overseas Subsidiaries | 26,710 | (10,936) | N/A (from loss to gain) | | Total Comprehensive Income for the Period | (191,448) | (125,835) | +52.1% | | Total Comprehensive Income Attributable to Owners of the Company | (178,860) | (170,816) | +4.7% | - Exchange differences arising from the translation of overseas subsidiaries shifted from a loss of **HKD 10.936 million** in H1 2024 to a gain of **HKD 26.71 million** in H1 2025[21](index=21&type=chunk) - Total comprehensive loss for the period was **HKD 191.4 million**, an increase from **HKD 125.8 million** in the prior period[21](index=21&type=chunk) [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets decreased due to reduced investment property values and lower trade receivables, leading to a decline in net current assets and total equity Key Data from Condensed Consolidated Statement of Financial Position (HKD Thousands) | Indicator | June 30, 2025 | Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Investment Properties | 4,208,052 | 4,416,969 | -4.8% | | Trade Receivables | 45,697 | 138,475 | -67.0% | | Financial Assets at Fair Value Through Profit or Loss | 98,924 | 109,116 | -9.3% | | Cash and Bank Balances | 1,081,282 | 1,102,889 | -2.0% | | Bank Borrowings (Current) | 136,800 | 172,200 | -20.6% | | Trade Payables | 46,373 | 23,274 | +99.2% | | Net Current Assets | 952,320 | 1,039,474 | -8.4% | | Net Assets | 5,307,136 | 5,595,364 | -5.1% | | Total Equity | 5,307,136 | 5,595,364 | -5.1% | - Investment property value decreased from **HKD 4.417 billion** to **HKD 4.208 billion**[22](index=22&type=chunk) - Trade receivables significantly decreased by **67.0%** to **HKD 45.697 million**[22](index=22&type=chunk) - Trade payables within current liabilities significantly increased by **99.2%** from **HKD 23.274 million** to **HKD 46.373 million**[22](index=22&type=chunk) - Total assets less current liabilities decreased from **HKD 5.595 billion** to **HKD 5.307 billion**[22](index=22&type=chunk)[23](index=23&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) This section details financial reporting basis, segment performance, and key financial items, highlighting declines in toy business and property revaluation losses - The Group's principal operating segments are Property Investment and Management, Investment, and Toys businesses[27](index=27&type=chunk)[28](index=28&type=chunk) [Basis of Preparation and Accounting Policies](index=9&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) Financial information is prepared under HKAS 34 and Listing Rules, consistent with 2024 annual financial statements - This condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure provisions of the Listing Rules of the Stock Exchange[24](index=24&type=chunk) - The accounting policies adopted in preparing this condensed consolidated financial information are consistent with those applied in the annual financial statements for the year ended December 31, 2024[25](index=25&type=chunk) [Changes in Accounting Policies](index=9&type=section&id=Changes%20in%20Accounting%20Policies) HKFRS amendments had no material impact, and no new standards not yet effective were applied - Certain amendments to Hong Kong Financial Reporting Standards issued by the HKICPA had no significant impact on the Group's results and financial position[26](index=26&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[26](index=26&type=chunk) [Revenue and Segment Information](index=9&type=section&id=Revenue%20and%20Segment%20Information) Group segments include Property, Investment, and Toys, with H1 2025 showing a sharp drop in toy sales and continued property losses [Revenue Analysis](index=10&type=section&id=Revenue%20Analysis) H1 2025 total revenue fell 50.5% to HKD 261M, mainly due to a 58.3% drop in toy sales Revenue Analysis by Major Product or Service Line (HKD Thousands) | Revenue Source | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Toy Sales | 185,514 | 445,141 | -58.3% | | Property Management Income | 9,754 | 10,804 | -9.7% | | Investment Property Rental Income | 65,046 | 68,535 | -5.1% | | Dividend Income | 188 | 507 | -62.9% | | Interest Income | 614 | 1,679 | -63.4% | | Total Revenue | 261,116 | 526,666 | -50.5% | - Toy sales revenue significantly decreased from **HKD 445.141 million** to **HKD 185.514 million**[29](index=29&type=chunk) [Segment Results, Assets and Liabilities](index=10&type=section&id=Segment%20Results,%20Assets%20and%20Liabilities) Property segment loss widened, Toys shifted to a loss, and Investment gained, with changes across segment assets and liabilities Segment (Loss) / Profit Before Income Tax (HKD Thousands) | Segment | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Property Investment and Management Business | (186,720) | (196,637) | Loss narrowed | | Investment Business | 3,230 | (87) | From loss to profit | | Playmates Toys Business | (15,517) | 117,420 | From profit to loss | | Total Loss Before Income Tax | (198,940) | (80,414) | Loss expanded | - The Toys segment's pre-tax results shifted from a profit of **HKD 117.42 million** in H1 2024 to a loss of **HKD 15.517 million** in H1 2025[31](index=31&type=chunk)[32](index=32&type=chunk) - Reportable segment assets for Property Investment and Management decreased from **HKD 4.5656 billion** as of December 31, 2024, to **HKD 4.3598 billion** as of June 30, 2025[33](index=33&type=chunk)[34](index=34&type=chunk) [Geographical Segment Information](index=15&type=section&id=Geographical%20Segment%20Information) Revenue from Americas, Europe, and other Asia Pacific regions significantly declined, with most non-current assets in Hong Kong Revenue from External Customers (HKD Thousands) | Region | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 75,602 | 81,629 | -7.4% | | Americas - United States | 131,459 | 309,462 | -57.5% | | Americas - Other Regions | 20,217 | 25,826 | -21.7% | | Europe | 31,351 | 90,536 | -65.3% | | Other Asia Pacific Regions Excluding Hong Kong | 2,487 | 18,825 | -86.8% | | Total | 261,116 | 526,666 | -50.5% | - Revenue from the Americas (primarily the US) significantly decreased from **HKD 309.462 million** to **HKD 131.459 million**[36](index=36&type=chunk) - Designated non-current assets in Hong Kong amounted to **HKD 3.8949 billion**, representing the vast majority of the total[36](index=36&type=chunk) [Major Customers](index=15&type=section&id=Major%20Customers) Three customers accounted for over 10% of total revenue in H1 2025, indicating increased client concentration - The Group's customer base included three (2024: two) customers whose transactions each accounted for over **10%** of the Group's total revenue[37](index=37&type=chunk) - Revenue from sales to these customers amounted to approximately **HKD 56.572 million**, **HKD 51.054 million**, and **HKD 50.122 million**, respectively[37](index=37&type=chunk) [Net Other Income](index=16&type=section&id=Net%20Other%20Income) Net other income decreased 31.7% to HKD 33.2M, mainly due to realized losses on financial assets and reduced interest income Composition of Net Other Income (HKD Thousands) | Item | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Gain / (Loss) on Financial Assets at Fair Value Through Profit or Loss | 11,480 | 18,516 | -38.0% | | —Unrealized | 12,325 | 14,005 | -12.0% | | —Realized | (845) | 4,511 | N/A (from gain to loss) | | Playmates Toys Treasury —Interest Income | 21,149 | 29,811 | -29.1% | | Playmates Toys Treasury —Dividend Income | 237 | 240 | -1.2% | | Other | 376 | 84 | +347.6% | | Total | 33,242 | 48,651 | -31.7% | - Realized gains on financial assets at fair value through profit or loss shifted from **HKD 4.511 million** to a loss of **HKD 0.845 million**[38](index=38&type=chunk) - Interest income from Playmates Toys Treasury decreased by **29.1%** to **HKD 21.149 million**[38](index=38&type=chunk) [Loss / Profit Before Income Tax](index=16&type=section&id=Loss%20%2F%20Profit%20Before%20Income%20Tax) Pre-tax loss expanded due to decreased revenue, despite reductions in cost of sales and royalties, while R&D and staff costs rose (Loss) / Profit Before Income Tax Deducted / (Credited) Items (HKD Thousands) | Item | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Inventories Sold | 90,999 | 184,619 | -50.7% | | Product Development and Tooling Costs | 14,946 | 10,638 | +40.5% | | Royalty Expenses | 25,849 | 58,936 | -56.1% | | Directors' and Employees' Remuneration | 41,926 | 39,857 | +5.2% | | Depreciation — Other Property, Plant and Equipment | 4,384 | 4,518 | -3.0% | | Depreciation — Right-of-Use Assets | 1,818 | 1,818 | 0.0% | | Interest Expense — Bank Borrowings | 3,632 | 6,323 | -42.6% | | Interest Expense — Lease Liabilities | 134 | 242 | -44.7% | | Net Exchange Gain | (1,075) | (315) | +241.3% | - Product development and tooling costs increased by **40.5%** to **HKD 14.946 million**[39](index=39&type=chunk) - Royalty expenses significantly decreased by **56.1%** to **HKD 25.849 million**[39](index=39&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) Income tax expense fell 44.3% to HKD 19.2M, with unrecognized tax losses significantly increasing to HKD 66.1M Income Tax Expense (HKD Thousands) | Item | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong Profits Tax | 11,273 | 15,565 | -27.6% | | Overseas Taxation | 7,578 | 12,897 | -41.3% | | Total Current Period Tax | 18,851 | 28,462 | -33.7% | | Deferred Tax | 367 | 6,023 | -93.9% | | Total Income Tax Expense | 19,218 | 34,485 | -44.3% | - As of June 30, 2025, the Group's accumulated unrecognized tax losses amounted to **HKD 66.159 million** (December 31, 2024: **HKD 11.071 million**) with no expiry date[41](index=41&type=chunk) [Dividends](index=17&type=section&id=Dividends) An interim dividend of 1.5 HK cents per share was declared, consistent with prior year, in addition to previous fiscal year dividends paid [Interim Dividend](index=17&type=section&id=Interim%20Dividend) An interim dividend of 1.5 HK cents per share was declared, payable September 19, 2025, to shareholders on record by September 2, 2025 - The Board resolved to pay an interim dividend of **1.5 HK cents** per share, consistent with H1 2024[43](index=43&type=chunk) - The interim dividend will be paid on September 19, 2025, to shareholders whose names appear on the Company's register of members as of September 2, 2025[43](index=43&type=chunk) [Dividends Paid for Previous Financial Year During Interim Period](index=18&type=section&id=Dividends%20Paid%20for%20Previous%20Financial%20Year%20During%20Interim%20Period) Second interim and special interim dividends for the previous fiscal year, totaling HKD 62.04M, were paid during the period Dividends Paid for Previous Financial Year During Interim Period (HKD Thousands) | Dividend Type | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Second Interim Dividend of 1.5 HK cents per share | 31,020 | 31,046 | -0.1% | | Special Interim Dividend of 1.5 HK cents per share | 31,020 | 31,045 | -0.1% | | Total | 62,040 | 62,091 | -0.1% | - During the interim period, the second interim dividend and special interim dividend for the previous financial year were both **1.5 HK cents** per share, totaling **HKD 62.04 million**[44](index=44&type=chunk) [Loss Per Share](index=18&type=section&id=Loss%20Per%20Share) Basic loss per share expanded to 9.94 HK cents, with diluted loss per share being identical due to no potential ordinary shares - Basic loss per share was **9.94 HK cents** (2024: **7.72 HK cents**), calculated based on the loss attributable to owners of the Company of **HKD 205.57 million** and a weighted average of **2.068 billion** ordinary shares outstanding[45](index=45&type=chunk) - Diluted loss per share was equal to basic loss per share, as there were no potential ordinary shares during the period[45](index=45&type=chunk) [Trade Receivables](index=19&type=section&id=Trade%20Receivables) Net trade receivables decreased 67% to HKD 45.7M, reflecting toy business seasonality, with a slight rise in customer discount provisions Trade Receivables (HKD Thousands) | Item | June 30, 2025 | Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gross Trade Receivables | 84,950 | 177,322 | -52.1% | | Less: Provision for Customer Discounts | (39,253) | (38,847) | +1.0% | | Net Trade Receivables | 45,697 | 138,475 | -67.0% | - Net trade receivables significantly decreased by **67.0%** to **HKD 45.697 million**, primarily reflecting the seasonal impact of the toy business[46](index=46&type=chunk) - Toy business customers typically have credit terms of **60 to 90 days**, while the Property Investment and Management business does not grant credit terms[46](index=46&type=chunk) [Trade Payables](index=19&type=section&id=Trade%20Payables) Total trade payables significantly increased 99.2% to HKD 46.4M, with a notable rise in short-term payables Trade Payables (HKD Thousands) | Ageing | June 30, 2025 | Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 30 Days | 42,550 | 21,851 | +94.7% | | 31 to 60 Days | 1,758 | 1,389 | +26.6% | | Over 60 Days | 2,065 | 34 | +5973.5% | | Total | 46,373 | 23,274 | +99.2% | - Total trade payables significantly increased by **99.2%** from **HKD 23.274 million** to **HKD 46.373 million**[47](index=47&type=chunk) [US Dollar Equivalents](index=19&type=section&id=US%20Dollar%20Equivalents) US dollar equivalent figures are for reference only, based on HKD 7.8 to USD 1 as of June 30, 2025 - US dollar equivalent figures are based on an exchange rate of **HKD 7.8** to **USD 1** as of June 30, 2025, and are for reference only[48](index=48&type=chunk) [Financial Analysis](index=20&type=section&id=Financial%20Analysis) [Liquidity and Capital Structure](index=20&type=section&id=Liquidity%20and%20Capital%20Structure) Property business provides stable income, while toy seasonality impacts receivables; debt-to-tangible-assets ratio improved to 2.4%, with ample USD cash reserves - The Property Investment and Management business provided a relatively stable income source for the period, with an overall occupancy rate of **58.8%** (December 31, 2024: **60.3%**)[50](index=50&type=chunk) - The toy business is affected by industry seasonality, with trade receivables significantly decreasing after peak sales seasons, amounting to **HKD 44.435 million** as of June 30, 2025 (December 31, 2024: **HKD 136.67 million**)[50](index=50&type=chunk) - The debt-to-tangible-assets ratio (total bank borrowings as a percentage of total tangible assets) was **2.4%** (December 31, 2024: **2.9%**), and the liquidity ratio (current assets to current liabilities) was **3.4** (December 31, 2024: **3.4**)[51](index=51&type=chunk) - Cash and bank balances amounted to **HKD 1.081 billion** (December 31, 2024: **HKD 1.1029 billion**), with the majority (**HKD 1.012 billion**) denominated in US dollars[51](index=51&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) [Repurchase, Sale or Redemption of Shares](index=20&type=section&id=Repurchase,%20Sale%20or%20Redemption%20of%20Shares) Neither the Company nor its subsidiaries repurchased, sold, or redeemed any shares, and no treasury shares were held - During the period, neither the Company nor its subsidiaries repurchased, sold, or redeemed any shares[52](index=52&type=chunk) - The Company held no treasury shares[52](index=52&type=chunk) [Corporate Governance](index=20&type=section&id=Corporate%20Governance) The Company complied with governance codes, except for combined Chairman/CEO roles, with the Board and Audit Committee ensuring effective oversight - The Company has adopted and complied with all applicable provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, except for the non-segregation of the roles of Chairman and Chief Executive Officer[53](index=53&type=chunk) - The Board believes the existing structure (with Executive Directors jointly handling daily operations) is appropriate to ensure effective management and oversight of the Group's business and operations[53](index=53&type=chunk) - The Audit Committee has reviewed accounting principles and practices with management and has reviewed the unaudited condensed consolidated financial information for the six months ended June 30, 2025[53](index=53&type=chunk) [Closure of Register of Members](index=21&type=section&id=Closure%20of%20Register%20of%20Members) Share transfer registration will be suspended from Sept 1-2, 2025, requiring submissions by Aug 29, 2025, for dividend eligibility - The Company will suspend registration of share transfers from September 1 to September 2, 2025 (both dates inclusive)[54](index=54&type=chunk) - Shareholders must lodge transfer documents with the relevant share certificates with the share registrar by 4:30 p.m. on August 29, 2025, to qualify for the interim dividend[54](index=54&type=chunk) [Board of Directors](index=21&type=section&id=Board%20of%20Directors) The Board comprises the Chairman, two Executive Directors, one Non-Executive Director, and three Independent Non-Executive Directors - The Board of Directors includes Mr. Chan Kwong Fai (Chairman), Executive Directors Ms. Chan Hoi Lun and Mr. Chan Kwong Keung, Non-Executive Director Mr. Li Ka Sze, and Independent Non-Executive Directors Mr. Law Kai Yiu, Dr. Ko Ching Fai, and Mr. Jim Tak Chee[55](index=55&type=chunk)

[Financial Performance Summary](index=1&type=section&id=1.%20Financial%20Performance%20Summary) The company's key financial metrics showed a slight decline in the first half of 2025 compared to the prior year Performance Summary for the Six Months Ended June 30, 2025 | Metric | H1 2025 | H1 2024 | Change Y-o-Y | | :--- | :--- | :--- | :--- | | Total Net Revenues | $3.49 billion | $3.55 billion | -1.7% | | Adjusted Property EBITDA | $1.10 billion | $1.17 billion | -5.9% | | Profit for the Period | $413 million | $541 million | -23.7% | [Business Overview and Outlook](index=2&type=section&id=2.%20Business%20Overview%20and%20Outlook) The Macau tourism and gaming market is experiencing a moderate recovery, supported by the completion of major development projects - Macau's tourism and gaming market shows a moderate recovery trend, with total visitor arrivals from mainland China **increasing by 19.3%** and overall gross gaming revenue **growing by 4.4%** year-over-year in H1 2025[8](index=8&type=chunk) - The core development project, "The Londoner Macao Phase II," was substantially completed in Q1 2025 with an estimated total cost of **$1.2 billion**, featuring the new Londoner Grand hotel tower and upgraded facilities[9](index=9&type=chunk) [Management's Discussion and Analysis](index=3&type=section&id=3.%20Management's%20Discussion%20and%20Analysis) This section details the group's operating results, liquidity, and capital resources, highlighting performance drivers and financial position [Operating Performance](index=3&type=section&id=3.1%20Operating%20Performance) The group's overall operating performance faced pressure in H1 2025, with declines in net revenues, adjusted property EBITDA, and net profit [Net Revenues](index=3&type=section&id=3.1.1%20Net%20Revenues) Total net revenues slightly decreased due to a decline in casino revenue, partially offset by growth in rooms and mall segments Net Revenues by Segment (USD in millions) | Revenue Category | H1 2025 | H1 2024 | Change Y-o-Y | | :--- | :--- | :--- | :--- | | Casino | 2,617 | 2,698 | (3.0)% | | Rooms | 406 | 393 | 3.3% | | Mall | 249 | 231 | 7.8% | | Food and Beverage | 123 | 135 | (8.9)% | | Convention, Ferry, Retail and Other | 97 | 94 | 3.2% | | **Total Net Revenues** | **3,492** | **3,551** | **(1.7)%** | - The decrease in casino net revenues was mainly due to lower revenues at The Venetian Macao, The Parisian Macao, and Sands Macao, partially offset by growth at The Londoner Macao following the full operation of Londoner Grand[12](index=12&type=chunk) - Room revenue **grew by 3.3%**, driven by higher occupancy and Revenue Per Available Room (RevPAR), with The Londoner Macao and The Plaza Macao recording significant RevPAR increases of **41.5%** and **12.6%**, respectively[15](index=15&type=chunk)[17](index=17&type=chunk) - Mall revenue **increased by 7.8%**, primarily driven by a **$12 million** increase in percentage rents and a **$4 million** increase in base rents[18](index=18&type=chunk) [Operating Expenses](index=7&type=section&id=3.1.2%20Operating%20Expenses) Operating expenses increased year-over-year, driven by higher employee benefit expenses, foreign exchange losses, and depreciation - Key drivers for the increase in operating expenses include: - A **$42 million** increase in employee benefit expenses - A **$31 million** increase in foreign exchange losses - A **$12 million** increase in depreciation and amortization[24](index=24&type=chunk) [Adjusted Property EBITDA](index=7&type=section&id=3.1.3%20Adjusted%20Property%20EBITDA) Adjusted property EBITDA declined, reflecting increased market competition, though The Londoner Macao showed significant growth Adjusted Property EBITDA by Segment (USD in millions) | Property/Business | H1 2025 | H1 2024 | Change Y-o-Y | | :--- | :--- | :--- | :--- | | The Venetian Macao | 461 | 576 | (20.0)% | | The Londoner Macao | 358 | 275 | 30.2% | | The Parisian Macao | 110 | 154 | (28.6)% | | The Plaza Macao | 140 | 136 | 2.9% | | Sands Macao | 19 | 22 | (13.6)% | | Ferry and Other Operations | 14 | 8 | 75.0% | | **Total** | **1,102** | **1,171** | **(5.9)%** | [Finance Costs](index=8&type=section&id=3.1.4%20Finance%20Costs) Net finance costs decreased due to a lower weighted average borrowing amount and interest rate following debt repayment - The weighted average interest rate **decreased to 4.7%** from 5.0% in the prior-year period, mainly due to lower interest rates on senior notes, interest savings from the repayment of the LVS Term Loan, and benefits from interest rate swaps[28](index=28&type=chunk) - The company fully repaid the outstanding principal of the **$1.06 billion** LVS Term Loan in March 2025, significantly reducing total borrowings[28](index=28&type=chunk) [Profit for the Period](index=8&type=section&id=3.1.5%20Profit%20for%20the%20Period) Profit for the period decreased significantly due to the combined impact of lower revenues and higher expenses - Profit for the six months ended June 30, 2025, was **$413 million**, a **23.7% decrease** year-over-year[29](index=29&type=chunk) [Liquidity, Financial and Capital Resources](index=9&type=section&id=3.2%20Liquidity,%20Financial%20and%20Capital%20Resources) The group maintains a solid financial position with sufficient liquidity to support operations, capital expenditures, and concession commitments [Cash Flows](index=9&type=section&id=3.2.1%20Cash%20Flows) The period saw a net decrease in cash, driven by lower operating inflows and significant outflows for financing activities Cash Flow Summary (USD in millions) | Cash Flow Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 937 | 1,037 | | Net Cash Used in Investing Activities | (306) | (192) | | Net Cash Used in Financing Activities | (1,607) | (419) | | **Net (Decrease)/Increase in Cash and Cash Equivalents** | **(976)** | **426** | - Net cash used in financing activities of **$1.61 billion** was primarily for the repayment of the LVS Term Loan ($1.06 billion), payment of dividends ($260 million), and interest payments ($232 million)[35](index=35&type=chunk) [Capital Expenditures](index=10&type=section&id=3.2.2%20Capital%20Expenditures) Capital expenditures increased year-over-year, with the majority allocated to the construction of The Londoner Macao Phase II Capital Expenditures by Property (USD in millions) | Property | H1 2025 | H1 2024 | | :--- | :--- | :--- | | The Venetian Macao | 85 | 77 | | The Londoner Macao | 228 | 123 | | The Parisian Macao | 9 | 6 | | The Plaza Macao | 5 | 5 | | Sands Macao | 6 | 6 | | **Total** | **333** | **218** | [Investment Commitments](index=11&type=section&id=3.2.3%20Investment%20Commitments) The company is committed to a significant investment plan under its gaming concession, focusing primarily on non-gaming projects - The company has committed to invest at least **MOP 35.84 billion** (approximately $4.43 billion) by December 2032, with **MOP 33.39 billion** (approximately $4.13 billion) designated for non-gaming projects[40](index=40&type=chunk) [Dividends](index=11&type=section&id=3.2.4%20Dividends) The Board of Directors declared an interim dividend for the period, scheduled for payment in September 2025 - An interim dividend of **HK$0.25 per share** was declared, totaling approximately **$258 million**[41](index=41&type=chunk) [Contingent Liabilities](index=11&type=section&id=3.2.5%20Contingent%20Liabilities) Management believes that existing contingent liabilities from litigation and claims will not materially impact the company's financials - Management believes that existing contingent liabilities will not have a material adverse effect on the company's financial condition[42](index=42&type=chunk) [Capital Risk Management](index=12&type=section&id=3.2.6%20Capital%20Risk%20Management) The group's gearing ratio improved slightly as net debt decreased, reflecting prudent capital management Gearing Ratio (USD in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Debt | 5,939 | 6,036 | | Total Equity | 1,120 | 1,031 | | Total Capital | 7,059 | 7,067 | | **Gearing Ratio** | **84.1%** | **85.4%** | [Financial Results](index=13&type=section&id=4.%20Financial%20Results) This section presents the condensed consolidated financial statements for the first half of 2025 [Consolidated Income Statement](index=13&type=section&id=4.1%20Consolidated%20Income%20Statement) The income statement reflects a year-over-year decrease in net revenues and a significant drop in profit attributable to equity holders Consolidated Income Statement Summary (USD in millions) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Revenues | 3,492 | 3,551 | | Operating Profit | 585 | 688 | | Profit Before Income Tax | 413 | 498 | | **Profit for the Period Attributable to Equity Holders of the Company** | **413** | **541** | | Basic Earnings Per Share | 5.10 US cents | 6.69 US cents | [Consolidated Statement of Comprehensive Income](index=14&type=section&id=4.2%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period declined after accounting for other comprehensive expenses like currency adjustments Consolidated Statement of Comprehensive Income Summary (USD in millions) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Equity Holders of the Company | 413 | 541 | | Other Comprehensive Expense | (67) | (14) | | **Total Comprehensive Income for the Period Attributable to Equity Holders of the Company** | **346** | **527** | [Consolidated Balance Sheet](index=15&type=section&id=4.3%20Consolidated%20Balance%20Sheet) The balance sheet shows a reduction in total assets and liabilities, primarily due to decreased cash and debt repayments Consolidated Balance Sheet Summary (USD in millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **10,084** | **11,169** | | Non-current Assets | 8,763 | 8,884 | | Current Assets | 1,321 | 2,285 | | **Total Liabilities** | **8,964** | **10,138** | | Non-current Liabilities | 6,853 | 7,145 | | Current Liabilities | 2,111 | 2,993 | | **Total Equity** | **1,120** | **1,031** | [Notes to the Condensed Consolidated Financial Statements](index=17&type=section&id=4.4%20Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, segment performance, debt structure, and active debt management activities - Segment information shows The Venetian Macao contributed **$1.30 billion** in net revenues and **$461 million** in adjusted property EBITDA, while The Londoner Macao contributed **$1.17 billion** in net revenues and **$358 million** in adjusted property EBITDA[55](index=55&type=chunk) - In June 2025, the company drew down a **HK$12.75 billion** (approximately $1.64 billion) term loan to redeem its maturing **$1.8 billion** senior notes[73](index=73&type=chunk) - In March 2025, the company voluntarily repaid the LVS Term Loan in full, with a total repayment of principal and interest amounting to **$1.07 billion**[74](index=74&type=chunk) [Corporate Governance](index=30&type=section&id=5.%20Corporate%20Governance) The company confirms its compliance with the Corporate Governance Code and reports a recent change in its board composition - The company confirms compliance with all provisions of the Corporate Governance Code during the reporting period[75](index=75&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the period[78](index=78&type=chunk) - On August 8, 2025, Mr. Patrick Sydney Dumont was appointed as a non-executive Director of the company[77](index=77&type=chunk) [Interim Dividend and Closure of Register of Members](index=31&type=section&id=6.%20Interim%20Dividend%20and%20Closure%20of%20Register%20of%20Members) This section details the declaration of the interim dividend and the key dates for shareholder eligibility and payment - The Board of Directors has declared an interim dividend of **HK$0.25 per share**[80](index=80&type=chunk) - To determine eligibility for the dividend, the register of members will be closed on September 1, 2025, with the dividend expected to be paid on September 12, 2025[80](index=80&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 38,444,000, representing a 92% increase from HKD 20,046,000 in the same period of 2024[7] - Gross profit for the same period was HKD 8,219,000, up from HKD 7,547,000, indicating a growth of 8.9%[7] - Operating profit increased significantly to HKD 1,290,000 from HKD 142,000, marking a substantial rise of 810%[7] - The total comprehensive income for the period was HKD 2,678,000, compared to HKD 988,000 in the previous year, reflecting a growth of 170%[7] - Basic and diluted earnings per share rose to HKD 3.39 from HKD 0.41, an increase of 726%[7] - The net profit for the six months ended June 30, 2025, was approximately HKD 1.3 million, a significant increase from a net profit of about HKD 0.1 million in the same period of 2024[41] Cash and Assets - Cash and cash equivalents as of June 30, 2025, were HKD 8,904,000, up from HKD 5,888,000, showing a 51% increase[9] - Total assets less current liabilities increased to HKD 25,691,000 from HKD 23,138,000, a growth of 11%[9] - The company's equity attributable to owners increased to HKD 26,400,000 from HKD 23,662,000, representing an increase of 11.6%[9] - Cash and cash equivalents increased to HKD 8,904,000 at the end of the period, up from HKD 4,002,000 at the end of June 30, 2024[12] Revenue Segmentation - The software services segment generated revenue of HKD 33,078,000, a significant increase of 198.5% from HKD 11,097,000 in the previous year[22] - The trading agency services segment contributed HKD 2,875,000 in revenue, with no revenue reported in the same period of 2024[22] - The geographical breakdown of revenue showed that China accounted for HKD 35,569,000, a significant increase from HKD 11,097,000 in 2024[24] Expenses and Costs - The cost of services provided rose by approximately 141.8% to HKD 30.2 million from HKD 12.5 million in the previous year, primarily due to increased costs associated with software services[43] - Sales expenses increased by approximately 122.4% from about HKD 1.4 million in 2024 to about HKD 3.2 million for the six months ending June 30, 2025, primarily due to increased promotion and advertising expenses in the software services business[46] - Administrative expenses decreased by approximately 39.3% from about HKD 6.1 million in 2024 to about HKD 3.7 million for the six months ending June 30, 2025, mainly due to reduced employee costs and legal and professional fees[47] Shareholder Information - The company has maintained its issued share capital at HKD 3.8 million, with 38,000,000 ordinary shares as of June 30, 2025[37] - As of June 30, 2025, Topliu Limited holds 14,288,677 shares, representing approximately 37.60% of the company's equity[70] - Ms. Sun Li holds 6,071,625 shares through spousal interest, accounting for approximately 15.98% of the company's equity[70] Corporate Governance - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM listing rules[76] - The board believes that having the same individual serve as both CEO and chairman enhances strategic planning and execution consistency[77] - The company has complied with GEM Listing Rule 5.28 regarding the establishment of an audit committee, which includes independent non-executive directors[90] - The audit committee has reviewed the unaudited consolidated results for the six months ending June 30, 2025, and believes they comply with applicable accounting standards and GEM Listing Rules[90] Future Outlook and Plans - The company continues to focus on software services, internet security technology services, and big data analysis as its primary business segments[14] - The company has no significant investments or acquisition plans as of June 30, 2025[56] - There were no significant events after the reporting period up to the date of this report[91]

[Financial Summary](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%A6%82%E8%A6%81) Provides a concise overview of the company's financial performance for the six months ended June 30, 2025 Financial Summary for the Six Months Ended June 30, 2025 (Unaudited) | Metric | For the Six Months Ended June 30 (Unaudited) | Change (%) | | :--- | :--- | :--- | | | **2025 (RMB thousands)** | **2024 (RMB thousands)** | | | **Total Revenue** | 103,577 | 49,004 | 111.4% | | **R&D Costs** | (146,812) | (132,382) | 10.9% | | **Administrative Expenses** | (43,302) | (41,356) | 4.7% | | **Loss Before Tax** | (87,951) | (130,318) | -32.5% | | **Loss for the Period** | (87,951) | (130,318) | -32.5% | | **Loss Per Share (Basic and Diluted)** | (9.14) cents | (12.82) cents | -28.7% | [Company Overview and Business Progress](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88%E4%B8%8E%E4%B8%9A%E5%8A%A1%E8%BF%9B%E5%B1%95) Details the company's strategic vision, overall business advancements, and pipeline development across key therapeutic areas [Company Profile and Vision](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E4%B8%8E%E6%84%BF%E6%99%AF) Ascletis aims to be a world-class innovative biopharmaceutical company addressing unmet global medical needs in metabolic diseases - Company vision: To be the most innovative world-class biopharmaceutical company, dedicated to addressing unmet global medical needs in metabolic diseases[5](index=5&type=chunk) [Overall Business Overview](index=2&type=section&id=%E6%95%B4%E4%BD%93%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A7%88) The company made significant pipeline progress in metabolic and immune diseases, narrowing its loss for the period despite increased R&D investment - The company achieved significant progress in its R&D pipeline across multiple disease areas, including: - **Obesity treatment**: ASC30 oral tablet showed up to **6.5% weight loss** in a US Ib study; ASC30 subcutaneous formulation had a half-life of 36 days, supporting monthly dosing; muscle-sparing candidate ASC47 completed enrollment for combination study with semaglutide - **Immune diseases**: Oral small molecule IL-17 inhibitor ASC50 initiated Phase I clinical study in the US - **Expanded indications**: FASN inhibitor denifanstat (ASC40) for acne achieved all primary endpoints in Phase III study[6](index=6&type=chunk) Financial Performance and Cash Position | Metric | 2025 H1 | 2024 H1 | Change | | :--- | :--- | :--- | :--- | | **Loss for the Period** | approx. 88.0 million RMB | approx. 130.3 million RMB | -32.5% | | **R&D Costs** | approx. 146.8 million RMB | approx. 132.4 million RMB | +10.9% | | **Cash and Equivalents** | approx. 1,827.9 million RMB | approx. 2,117.2 million RMB | - | - As of June 30, 2025, the Group's cash and equivalents reserves were approximately **1.828 billion RMB**, projected to support R&D and operations until 2029[7](index=7&type=chunk) [R&D Pipeline](index=3&type=section&id=%E7%A0%94%E5%8F%91%E7%AE%A1%E7%BA%BF) The company maintains three core pipelines: metabolic diseases, immune diseases, and expanded indications, with global or Greater China rights for various drug candidates - **Metabolic Disease Pipeline**: Core products for obesity, ASC30 (oral/subcutaneous) and ASC47 (subcutaneous), both with global rights and in clinical Phase IIa or Ib[8](index=8&type=chunk) - **Immune Disease Pipeline**: Core product, oral small molecule IL-17 inhibitor ASC50, for psoriasis and other immune diseases, with global rights, in clinical Phase I[9](index=9&type=chunk) - **Expanded Indication Pipeline**: Core product, oral small molecule FASN inhibitor ASC40, for acne, with Greater China rights, in Phase III[10](index=10&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) Provides an in-depth review of the company's operational performance, financial results, and future outlook [Business Review](index=4&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) The company detailed clinical progress and key data for its core pipeline products, with notable advancements in metabolic disease drugs and strategic project adjustments [Metabolic Diseases](index=4&type=section&id=%E4%BB%A3%E8%B0%A2%E6%80%A7%E7%96%BE%E7%97%85) Significant progress in obesity drug pipeline, with ASC30 showing up to 6.5% weight loss and ASC47 demonstrating potential for healthy weight reduction - **ASC30 Oral Tablet**: In a US Phase Ib study, after 4 weeks of treatment, the placebo-adjusted average weight loss was up to **6.5%**, with good tolerability. Its 13-week Phase IIa study has completed enrollment of 125 patients, with top-line data expected in Q4 2025[13](index=13&type=chunk)[14](index=14&type=chunk) - **ASC30 Subcutaneous Injection**: In a US Phase Ib study, an ultra-long-acting formulation showed a half-life of **36 days** in obese patients, supporting monthly or less frequent dosing. Phase IIa study has completed dosing of the first subjects[16](index=16&type=chunk)[17](index=17&type=chunk) - **ASC47 (Muscle-Sparing)**: A single subcutaneous injection in obese patients showed a half-life of **40 days**, supporting monthly to bi-monthly dosing. The combination study with semaglutide has completed enrollment of all 28 subjects[18](index=18&type=chunk)[19](index=19&type=chunk) [Immune Diseases](index=6&type=section&id=%E5%85%8D%E7%96%AB%E7%96%BE%E7%97%85) The company's self-developed novel oral small molecule IL-17 inhibitor ASC50 has initiated a Phase I clinical trial in the US for psoriasis - The novel oral small molecule IL-17 inhibitor **ASC50** has initiated a Phase I clinical trial in the US for psoriasis, with potential to be a best-in-class daily oral drug[21](index=21&type=chunk) - ASC50 is the company's first immunology candidate developed through its structure-based **AI-assisted drug discovery (AISBDD) platform**[22](index=22&type=chunk) [Expanded Indications and Others](index=7&type=section&id=%E6%8B%93%E5%B1%95%E6%80%A7%E9%80%82%E5%BA%94%E7%97%87%E5%8F%8A%E5%85%B6%E4%BB%96) FASN inhibitor denifanstat (ASC40) successfully completed Phase III trials for acne, while the rGBM project was terminated, and out-licensing opportunities are being sought for other assets - **ASC40 for Acne**: Phase III clinical trial achieved success, with all endpoints showing highly statistically significant improvements and good safety. Efficacy was superior to FDA-approved drugs like sarecycline and doxycycline. The company plans to seek commercial partnerships in 2025[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - **Project Termination and Out-licensing**: Based on study results, the company decided to terminate the ASC40 project for recurrent glioblastoma (rGBM). For ASC40 in MASH and ASC61 for solid tumors, the company will seek opportunities to maximize project value, including out-licensing[27](index=27&type=chunk)[28](index=28&type=chunk)[30](index=30&type=chunk) [Preclinical Discovery](index=8&type=section&id=%E4%B8%B4%E5%BA%8A%E5%89%8D%E5%8F%91%E7%8E%B0) The company continues to leverage its AI-assisted drug discovery (AISBDD) and ultra-long-acting drug development (ULAP) platforms to strengthen early-stage R&D - The company continues to strengthen early-stage discovery by leveraging its two core platforms (AISBDD and ULAP) to develop more globally competitive small molecule and peptide pipeline products[31](index=31&type=chunk) [Future and Outlook](index=9&type=section&id=%E6%9C%AA%E6%9D%A5%E5%8F%8A%E5%89%8D%E6%99%AF) The company's H2 2025 strategy focuses on advancing core clinical programs, obtaining key data, strengthening early R&D, and pursuing out-licensing opportunities - Key Outlook for H2 2025: - **Obtain Key Clinical Data**: Expected top-line data from US clinical studies for ASC30 oral tablet (obesity), ASC47 combination therapy (obesity), and ASC50 (psoriasis) - **Advance Clinical Enrollment**: Complete enrollment for all subjects in the US Phase IIa study of ASC30 monthly subcutaneous injection (obesity) - **Strengthen Early R&D**: Accelerate peptide pipeline clinical trials using the ULAP platform - **Seek Out-licensing**: Actively pursue collaboration opportunities with global pharmaceutical companies[35](index=35&type=chunk) [Financial Position Analysis](index=10&type=section&id=%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company's total revenue increased significantly, driven by fair value gains and government grants, while R&D expenses rose, and financial ratios improved, indicating a robust financial position [Revenue and Other Income](index=10&type=section&id=%E6%94%B6%E5%85%A5%E4%B8%8E%E6%94%B6%E7%9B%8A) Total revenue increased by 111.4% to 103.6 million RMB, primarily due to higher fair value gains from financial assets and increased government grants - Total revenue (revenue, other income and gains) increased by **111.4%** from **49.0 million RMB** to **103.6 million RMB**, primarily due to an increase in other income and gains[37](index=37&type=chunk) Details of Other Income and Gains (RMB thousands) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Bank interest income | 30,037 | 48,076 | | Government grants | 34,175 | 12,226 | | Net fair value gain/(loss) on financial assets | 39,151 | (10,735) | | Gain on dilution of interest in an associate | – | 21,147 | | Loss on remeasurement of interest in an associate | – | (24,546) | | **Total** | **102,496** | **49,004** | [Costs and Expenses](index=11&type=section&id=%E6%88%90%E6%9C%AC%E4%B8%8E%E5%BC%80%E6%94%AF) R&D expenses increased by 10.9% to 146.8 million RMB, mainly due to increased investment in the metabolic disease pipeline, while administrative expenses slightly rose - R&D expenses increased by **10.9%** to **146.8 million RMB**, primarily due to increased investment in the metabolic disease product pipeline[43](index=43&type=chunk)[44](index=44&type=chunk) R&D Costs by Product Pipeline (RMB thousands) | Product Pipeline | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Metabolic Diseases | 42,640 | 27,037 | | Expanded Indications - Acne | 43,970 | 47,182 | | Expanded Indications - Oncology | 15,259 | 15,807 | | Preclinical | 38,023 | 14,486 | | **Total** | **146,812** | **132,382** | - Administrative expenses increased by **4.7%** to **43.3 million RMB**, primarily due to higher staff costs and benefits[41](index=41&type=chunk)[42](index=42&type=chunk) [Key Balance Sheet Items](index=13&type=section&id=%E5%85%B3%E9%94%AE%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E9%A1%B9%E7%9B%AE) Inventories, trade receivables, and financial assets increased, with non-current financial assets significantly rising due to fair value gains on listed equity securities, while other payables decreased - Non-current financial assets at fair value through profit or loss increased from **53.5 million RMB** to **79.3 million RMB**, primarily due to an increase in the fair value of investments in NASDAQ-listed equity securities[59](index=59&type=chunk) - Total other payables and accrued expenses decreased from **145.2 million RMB** to **119.9 million RMB**, with provisions reduced by **11.2 million RMB** due to arbitration settlement[64](index=64&type=chunk)[66](index=66&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E4%B8%8E%E8%B5%84%E6%9C%AC%E8%B5%84%E6%BA%90) The company held 1.828 billion RMB in cash and equivalents, with net cash outflow from operating activities and net inflow from investing activities, primarily from maturing time deposits Condensed Consolidated Cash Flow Statement Summary (RMB thousands) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net cash flow (used in) operating activities | (172,990) | (203,415) | | Net cash flow from investing activities | 904,605 | 261,633 | | Net cash flow (used in) financing activities | (14,485) | (45,455) | | **Net increase in cash and cash equivalents** | **717,130** | **12,763** | - Net cash inflow from investing activities was primarily due to a decrease of approximately **864 million RMB** in time deposits with original maturity over three months[71](index=71&type=chunk) - Net cash outflow from financing activities was primarily due to share repurchases totaling approximately **12.8 million RMB**[72](index=72&type=chunk) [Key Financial Ratios](index=22&type=section&id=%E5%85%B3%E9%94%AE%E8%B4%A2%E5%8A%A1%E6%AF%94%E7%8E%87) The company's liquidity improved, with current and quick ratios increasing, and the debt-to-asset ratio decreasing, indicating a more robust financial structure Key Financial Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 14.6 | 12.9 | | Quick Ratio | 14.5 | 12.8 | | Debt-to-Asset Ratio | 6.5% | 7.5% | - The increase in current and quick ratios and the decrease in the debt-to-asset ratio were primarily due to a **reduction in current liabilities**[82](index=82&type=chunk) [Other Information](index=21&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) The company disclosed litigation updates with Viking Therapeutics, including provisions for ITC fines, and detailed its employee structure and compensation policy [Litigation and Contingent Liabilities](index=21&type=section&id=%E8%AF%89%E8%AE%BC%E4%B8%8E%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) The company disclosed litigation with Viking Therapeutics, making provisions for an ITC fine of approximately $567,000 while actively defending the ongoing USDC lawsuit - Regarding the litigation with Viking Therapeutics, the ITC's recommended judgment imposed a fine of approximately **$567,000**, for which the company has made provisions[76](index=76&type=chunk) - The lawsuit filed with the USDC is ongoing, and the company will actively defend it, with no provisions made as of the end of the reporting period[77](index=77&type=chunk) [Employees and Remuneration Policy](index=23&type=section&id=%E9%9B%87%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 208 employees, with 65.9% in R&D, reflecting its research-centric strategy, and total employee costs increased Number of Employees by Function (as of June 30, 2025) | Function | Number of Employees | % of Total | | :--- | :--- | :--- | | Management | 4 | 1.9% | | R&D | 137 | 65.9% | | Manufacturing | 29 | 13.9% | | Operations | 38 | 18.3% | | **Total** | **208** | **100.0%** | - For the six months ended June 30, 2025, total employee costs were approximately **82.1 million RMB**, compared to **76.8 million RMB** in the prior period[84](index=84&type=chunk) [Consolidated Financial Statements](index=24&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) Presents the company's consolidated financial performance and position, including the income statement and balance sheet [Consolidated Statement of Profit or Loss](index=24&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company reported revenue of 1.08 million RMB and a loss of 87.95 million RMB, a 32.5% reduction from the prior year Summary of Consolidated Statement of Profit or Loss (RMB thousands) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Revenue | 1,081 | – | | Other income and gains | 102,496 | 49,004 | | R&D costs | (146,812) | (132,382) | | Administrative expenses | (43,302) | (41,356) | | **Loss before tax** | **(87,951)** | **(130,318)** | | **Loss for the period** | **(87,951)** | **(130,318)** | [Consolidated Statement of Financial Position](index=26&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the company reported total assets of 1.997 billion RMB, total liabilities of 129.0 million RMB, and net assets of 1.868 billion RMB, indicating strong liquidity Summary of Consolidated Statement of Financial Position (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total non-current assets** | 173,899 | 153,790 | | **Total current assets** | 1,822,936 | 1,970,782 | | **Total assets** | **1,996,835** | **2,124,572** | | **Total current liabilities** | 125,125 | 153,053 | | **Total non-current liabilities** | 3,873 | 5,357 | | **Total liabilities** | **129,000** | **158,410** | | **Net assets** | **1,867,837** | **1,966,162** | [Notes to Interim Financial Report](index=28&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E9%99%84%E6%B3%A8) Provides detailed explanations and disclosures supporting the interim financial statements, covering accounting policies, revenue, capital, and dividends [Company Information and Basis of Preparation](index=28&type=section&id=%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99%E4%B8%8E%E7%BC%96%E8%A3%BD%E5%9F%BA%E5%87%86) This unaudited interim financial report, reviewed by KPMG, details the company's primary engagement in drug R&D and its listing on the HKEX - This interim financial report is unaudited but has been reviewed by **KPMG** in accordance with Hong Kong Standard on Review Engagements 2410[96](index=96&type=chunk) - The company is an investment holding company, with subsidiaries primarily engaged in drug R&D. Its shares were listed on the Main Board of the Stock Exchange of Hong Kong on August 1, 2018[93](index=93&type=chunk)[94](index=94&type=chunk) [Revenue and Segment Reporting](index=29&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E6%8A%A5%E5%91%8A) Revenue for the period was 1.08 million RMB, primarily from R&D services, with the company managed as a single operating segment and revenue mainly from Hong Kong - Revenue for the reporting period was **1,081 thousand RMB**, primarily from providing R&D services (**1,054 thousand RMB**)[100](index=100&type=chunk) - The company operates as a **single operating segment**, thus no segment information is presented[102](index=102&type=chunk) [Capital, Reserves and Dividends](index=33&type=section&id=%E8%B5%84%E6%9C%AC%E3%80%81%E5%82%A8%E5%A4%87%E5%8F%8A%E8%82%A1%E6%81%AF) The board did not recommend an interim dividend, while the company repurchased 3.44 million shares and issued new shares from option exercises, also canceling repurchased shares - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025[113](index=113&type=chunk) - During the interim period, the company repurchased shares on the Stock Exchange of Hong Kong for a total consideration of **13.81 million HKD** (equivalent to **12.76 million RMB**)[115](index=115&type=chunk) - During the reporting period, the company cancelled **44,896,790 shares**[117](index=117&type=chunk) [Other Disclosure Information](index=35&type=section&id=%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BF%A1%E6%81%AF) Covers corporate governance practices, details of securities transactions including share repurchases, and the review process for interim results [Corporate Governance](index=35&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The company adheres to the Corporate Governance Code, with the only deviation being Dr. Wu holding both Chairman and CEO roles for efficient leadership - The company has complied with the Corporate Governance Code during the reporting period, except that the roles of Chairman and Chief Executive Officer are not separate, both held by Dr. Wu. The Board believes this arrangement provides more efficient leadership[120](index=120&type=chunk) [Securities Transactions and Share Repurchases](index=35&type=section&id=%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E4%B8%8E%E8%82%A1%E4%BB%BD%E5%9B%9E%E8%B4%AD) The company repurchased 3.44 million shares for 13.559 million HKD to enhance shareholder value and holds treasury shares for its share award scheme Details of Share Repurchases During the Reporting Period | Month of Transaction | Number of Shares Repurchased | Highest Price Per Share (HKD) | Lowest Price Per Share (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 2,640,000 | 4.13 | 2.94 | 9,301,470.00 | | April 2025 | 800,000 | 6.74 | 4.57 | 4,257,980.00 | - As of June 30, 2025, the company held **5,784,210 treasury shares** for its 2025 share award scheme[123](index=123&type=chunk) [Review of Interim Results](index=36&type=section&id=%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%AE%A1%E9%98%85) KPMG, the independent auditor, reviewed the interim financial information, and the Audit Committee confirmed its compliance with accounting standards and regulations - The company's independent auditor, **KPMG**, has reviewed the interim financial information[125](index=125&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the interim results and found them to be in compliance with applicable accounting standards and regulations[125](index=125&type=chunk)