Chairman's Report [I. Financial Performance](index=1&type=section&id=I.%20Financial%20Performance) CITIC Telecom International Holdings Limited's total revenue for H1 2025 decreased by 1.7% YoY to HKD 4.807 billion, with telecom services revenue down 2.1% to HKD 4.072 billion, while profit attributable to equity holders rose 1.3% to HKD 461 million, and basic EPS increased 1.6% to 12.5 HK cents | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 4.807 billion | 4.889 billion | -1.7% | | Telecom Services Revenue | 4.072 billion | 4.160 billion | -2.1% | | Profit Attributable to Equity Holders | 461 million | 455 million | +1.3% | | Basic Earnings Per Share | 12.5 HK cents | 12.3 HK cents | +1.6% | | Interim Dividend (per share) | 6.0 HK cents | 6.0 HK cents | 0% | [II. Development Review](index=2&type=section&id=II.%20Development%20Review) The Group continued to deepen its "internationalization" and "technology-led" strategies in H1 2025, maintaining a leading position in Macau's mobile and broadband markets, advancing "Cloud-Network-Security" integrated services and AI application innovation, while increasing R&D investment, expanding overseas markets, and making progress in ESG and corporate governance [Macau Mobile Market Remains Solid, Value-Driven Operations Deepen](index=2&type=section&id=Macau%20Mobile%20Market%20Remains%20Solid%2C%20Value-Driven%20Operations%20Deepen) The Group maintained its leading position in Macau's mobile market, with 5G user penetration nearing 100%, enhancing business value and customer stickiness through existing customer value management and 5G application innovation - As of June 30, 2025, the Group maintained its leading market share in Macau's mobile market[5](index=5&type=chunk) - 5G user base exceeded **800,000**, with penetration among mobile users approaching **100%**[5](index=5&type=chunk) - Continued to advance 5G application innovation, enriching new personal digital applications like cloud gaming to enhance user value and stickiness[5](index=5&type=chunk) [Macau Broadband Market Capability Leaps, Deepening Enterprise and Government Client Engagement](index=2&type=section&id=Macau%20Broadband%20Market%20Capability%20Leaps%2C%20Deepening%20Enterprise%20and%20Government%20Client%20Engagement) The Group maintained its leading position in Macau's broadband market, launching F5.5G fiber broadband and Macau's first "10 Gigabit Community" solution, supporting "Digital Macau" construction, and providing customized 5.5G private network services and smart healthcare platforms for enterprise and government clients - In H1 2025, the Group launched F5.5G fiber broadband internet service and integrated 50G-PON, 5.5G (5G-A), and Wi-Fi 7 network technologies to implement Macau's first "10 Gigabit Community" solution[6](index=6&type=chunk) - As of June 30, 2025, the Group maintained its leading market share in Macau's broadband market[6](index=6&type=chunk) - Provided customized 5.5G private network services for Macau's enterprise and government clients and enriched the "Dr. Easy Smart Healthcare Platform" with online AI consultation services[6](index=6&type=chunk) [Enterprise "Cloud-Network-Security" Integrated Services Upgraded, "Smart Empowerment" Application Innovation Flourishes](index=2&type=section&id=Enterprise%20%22Cloud-Network-Security%22%20Integrated%20Services%20Upgraded%2C%20%22Smart%20Empowerment%22%20Application%20Innovation%20Flourishes) The Group, with TrustCSITM 3.0 as its core, built a self-developed SIEM platform to establish an integrated "Cloud-Network-Security" defense system, while leveraging AI large model technology to empower its product matrix, launching innovative products like SmartCLOUDTM Intelligent Assistant, "AI Databank," and "Workflow+" to facilitate enterprise digital transformation - Centered on TrustCSITM 3.0, a self-developed Security Information and Event Management (SIEM) platform was built to establish an integrated "Cloud-Network-Security" defense system[7](index=7&type=chunk) - Developed SmartCLOUDTM Intelligent Assistant leveraging AI large model technology, offering natural language query and report viewing functionalities for data[7](index=7&type=chunk) - Launched two new products, "AI Databank" and "Workflow+," to help clients achieve business process automation and data element value realization[7](index=7&type=chunk)[8](index=8&type=chunk) [Platform Service Capabilities Fully Upgraded, Ecosystem Cooperation Drives New Business Expansion](index=3&type=section&id=Platform%20Service%20Capabilities%20Fully%20Upgraded%2C%20Ecosystem%20Cooperation%20Drives%20New%20Business%20Expansion) The Group upgraded its information and communication hub status, advancing "DataMall Roaming" and one-card-multiple-number platform upgrades, and launched "Global Mobile Number Smart Authentication Service" and "Cross-border 5G SD-WAN Private Line" based on its NaaS 1.0 platform, while expanding into cross-border data and IPX interconnection through partnerships with basic telecom operators and industry partners, signing strategic cooperation agreements and becoming a compliant data provider for the Shenzhen Data Exchange - Advanced the "DataMall Roaming" platform to 4/5G and completed the upgrade of the one-card-multiple-number platform to VoLTE[9](index=9&type=chunk) - Launched "Global Mobile Number Smart Authentication Service" and "Cross-border 5G SD-WAN Private Line" based on its self-developed Network as a Service (NaaS) 1.0 platform[9](index=9&type=chunk) - Signed a cooperation agreement with the Shenzhen Data Exchange, becoming a compliant data provider to build cross-border data compliant flow and transaction services[9](index=9&type=chunk) [Leveraging Technological Innovation, Building a Technology-Driven Enterprise to New Heights](index=3&type=section&id=Leveraging%20Technological%20Innovation%2C%20Building%20a%20Technology-Driven%20Enterprise%20to%20New%20Heights) The Group focused on cloud-network, computing power, and AI technologies, strengthening key core technology research and development, and winning multiple international and domestic awards, including at MWC Barcelona, the Digital China Innovation Competition, and the Geneva International Exhibition of Inventions, while undertaking the "CITIC Hong Kong AI Technology Innovation Center" and acquiring new patents and software copyrights - The smart tourism application "RJET" project won the third prize in the "Open Gateway Global Application Scenario Design and Development Competition"[10](index=10&type=chunk) - The AI innovation product "AI Databank" won a silver medal at the 50th Geneva International Exhibition of Inventions[10](index=10&type=chunk) - Undertook the "CITIC Hong Kong AI Technology Innovation Center," obtaining **8 new authorized patents** and **1 software copyright** in H1 2025, accumulating **29 patents** and **64 software copyrights**[10](index=10&type=chunk) [Focusing on "Going Global" and "Bringing In," Intensifying Overseas Business Expansion](index=3&type=section&id=Focusing%20on%20%22Going%20Global%22%20and%20%22Bringing%20In%2C%22%20Intensifying%20Overseas%20Business%20Expansion) The Group continued to expand its global network hubs, adding a network node in Yibin, Sichuan, building new Beijing and Guangzhou Xinchuang hybrid cloud platforms, and completing backbone network bandwidth upgrades in Vietnam and Indonesia, covering 160 countries and regions across five continents, deepening its presence in the Southeast Asian market, and achieving new business breakthroughs with an internet license in the Philippines - Added a network node in Yibin, Sichuan Province, built new Beijing and Guangzhou Xinchuang hybrid cloud platforms, and completed backbone network bandwidth upgrades in Vietnam and Indonesia[11](index=11&type=chunk) - As of June 30, 2025, the Group owned nearly **170 network service nodes** globally, established over **60 SD-WAN gateways**, and its business covered **160 countries and regions** across five continents[11](index=11&type=chunk) - Successfully signed an internet service agreement after obtaining an internet license in the Philippines, achieving new business breakthroughs[12](index=12&type=chunk) [Actively Practicing ESG Principles, Continuously Enhancing Corporate Governance](index=4&type=section&id=Actively%20Practicing%20ESG%20Principles%2C%20Continuously%20Enhancing%20Corporate%20Governance) The Group adheres to technology and green development concepts, winning the "Green Supply Chain Innovation Technology Excellence Award" for its sustainable supply chain management innovation solution, achieving an "A" rating in ESG, cultivating talent through the "Youth Growth Program," enhancing customer satisfaction, and improving its corporate compliance management system to ensure stable operations - Won the "Green Supply Chain Innovation Technology Excellence Award" at the "2025 Hong Kong Sustainable Development Innovation Technology Awards" for its sustainable supply chain management innovation solution "AI Analytics"[13](index=13&type=chunk) - As of June 30, 2025, the Group achieved an **"A" rating** in ESG from relevant rating agencies[13](index=13&type=chunk) - CTM Macau held its 12th "Youth Growth Program," dedicated to cultivating local information technology talent in Macau[13](index=13&type=chunk) [III. Outlook](index=4&type=section&id=III.%20Outlook) The Group will steadfastly pursue its vision of becoming a "leading digital intelligence telecom enterprise in the Asia-Pacific region," focusing on deepening reforms, accelerating digital transformation, building a technology-driven enterprise, fostering a high-level open cooperation ecosystem, and enhancing risk management capabilities to achieve high-quality development and sustained shareholder returns - Group Vision: To become a leading digital intelligence telecom enterprise in the Asia-Pacific region[15](index=15&type=chunk) [Comprehensively Deepen Reforms, Accelerate Digital Transformation](index=4&type=section&id=Comprehensively%20Deepen%20Reforms%2C%20Accelerate%20Digital%20Transformation)

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布的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公布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。 CHINESE ESTATES HOLDINGS LIMITED 華 人 置 業 集 團 （於百慕達註冊成立之有限公司） （股份代號：127） 截至二零二五年六月三十日止六個月之中期業績 Chinese Estates Holdings Limited（「本公司」）之董事會（「董事會」）謹此公布本公司及其附屬 公司（統稱「本集團」）截至二零二五年六月三十日止六個月（「本期間」）之未經審核綜合中期 業績，連同二零二四年同期之比較數字：－ 簡明綜合全面收益報表 截至二零二五年六月三十日止六個月 | | | | 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 | | | | （未經審核） | （未經審核） | | 收入 | 3 | 134,106 | 195,132 | | 提供貨品及服務之成本 ...

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。 XIAOCAIYUAN INTERNATIONAL HOLDING LTD. 小菜園國際控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：0999） 截至2025年6月30日止六個月業績公告 及 委任提名委員會成員 財務摘要： | | | 截至6月30日止六個月 | | | --- | --- | --- | --- | | | 2025年 | 2024年 | 變動 | | | 人民幣千元 | 人民幣千元 | | | | （未經審核） | （未經審核） | | | 收入 | 2,713,666 | 2,547,463 | 6.5% | | 除稅前利潤 | 542,313 | 380,860 | 42.4% | | 所得稅 | (159,916) | (98,981) | 61.6% | | 期內利潤 | 382,397 | 281,879 | 35.7% | | 以下各方應佔： | | | | ...

[Financial Highlights](index=1&type=section&id=財務摘要) China Everbright Greentech Limited announced its unaudited interim financial results for the six months ended June 30, 2025, with revenue decreasing by 3% and EBITDA by 11% year-on-year, but profit attributable to equity holders of the Company increased by 33%, and interim dividend doubled to 2.8 HK cents per share Key Financial Data for H1 2025 | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | -3% | | EBITDA | 974,366 | 1,100,415 | -11% | | Profit attributable to equity holders of the Company | 190,791 | 143,925 | +33% | | Interim dividend (per share) | 2.8 HK cents | 1.4 HK cents | +100% | - Profit attributable to equity holders of the Company increased by **33%** year-on-year, and interim dividend doubled to **2.8 HK cents** per share[4](index=4&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=綜合財務報表) This section presents the unaudited consolidated statement of profit or loss, consolidated statement of comprehensive income, and consolidated statement of financial position for the six months ended June 30, 2025, showcasing the company's financial performance and position at period-end [Consolidated Statement of Profit or Loss](index=2&type=section&id=綜合損益表) During the period, the company reported revenue of **HKD 3,400,122 thousands**, gross profit of **HKD 856,778 thousands**, profit before tax of **HKD 244,429 thousands**, profit attributable to equity holders of the Company of **HKD 190,791 thousands**, and basic and diluted earnings per share of **9.23 HK cents** Consolidated Statement of Profit or Loss Summary | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 3,400,122 | 3,505,577 | | Gross Profit | 856,778 | 681,102 | | Profit before tax | 244,429 | 207,087 | | Profit attributable to equity holders of the Company | 190,791 | 143,925 | | Basic and diluted earnings per share | 9.23 HK cents | 6.97 HK cents | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=綜合全面收益表) For the six months ended June 30, 2025, the company's profit for the period was **HKD 163,859 thousands**, other comprehensive income (primarily due to exchange differences) was **HKD 288,670 thousands**, resulting in a total comprehensive income for the period of **HKD 452,529 thousands** Consolidated Statement of Comprehensive Income Summary | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit for the period | 163,859 | 136,718 | | Other comprehensive income (net of tax) | 288,670 | 1,643 | | Total comprehensive income for the period | 452,529 | 138,361 | | Total comprehensive income attributable to equity holders of the Company | 468,284 | 146,567 | - Exchange differences arising from the translation of overseas operations shifted from a negative **HKD 159,132 thousands** in H1 2024 to a positive **HKD 336,716 thousands** in H1 2025, which is the primary reason for the significant increase in other comprehensive income[6](index=6&type=chunk) [Consolidated Statement of Financial Position](index=4&type=section&id=綜合財務狀況表) As of June 30, 2025, the company's total non-current assets were **HKD 23,280,840 thousands**, total current assets were **HKD 14,459,129 thousands**, total current liabilities were **HKD 11,180,745 thousands**, and net assets were **HKD 12,437,445 thousands** Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Total non-current assets | 23,280,840 | 23,414,866 | | Total current assets | 14,459,129 | 12,916,735 | | Total current liabilities | 11,180,745 | 10,298,028 | | Net assets | 12,437,445 | 11,662,300 | | Total equity attributable to equity holders of the Company | 10,142,825 | 9,609,839 | - Total current assets increased from **HKD 12,916,735 thousands** as of December 31, 2024, to **HKD 14,459,129 thousands** as of June 30, 2025, primarily due to a significant increase in cash and cash equivalents[7](index=7&type=chunk) - Goodwill decreased from **HKD 65,681 thousands** as of December 31, 2024, to **HKD 0** as of June 30, 2025, indicating goodwill impairment during the reporting period[7](index=7&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=財務報表附註) This section details the basis of preparation, changes in accounting policies, operating segment information, revenue composition, finance costs, profit before tax components, income tax, dividends, earnings per share, trade and other receivables, contract assets, and trade and other payables, along with their specific circumstances and changes [Basis of Preparation](index=6&type=section&id=編製基準) The interim financial report is prepared in accordance with HKAS 34 and the Listing Rules, with accounting policies consistent with the prior year's financial statements, except for anticipated changes - The report is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - The accounting policies adopted are consistent with those used in the annual financial statements for the year ended December 31, 2024, except for changes in accounting policies expected to be reflected in the full-year 2025 financial statements[9](index=9&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=會計政策變動) The Group has applied HKAS 21 amendment "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability", but it has no significant impact on this interim report due to the absence of relevant transactions - The Group has applied the amendment to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" in the interim financial report for the current accounting period[10](index=10&type=chunk) - As the Group has not entered into any transactions denominated in a foreign currency that cannot be exchanged into other currencies, these amendments have no significant impact on this interim report[10](index=10&type=chunk) [Operating Segment Information](index=6&type=section&id=運營分部資料) The Group is divided into four reportable segments: Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation, with segment performance assessed based on adjusted EBITDA, and major customer information disclosed [Segment Classification and Basis of Assessment](index=6&type=section&id=分部劃分與評估基準) The Group is classified into four reportable segments: Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation, with "adjusted EBITDA" used by top management to assess segment performance and allocate resources - The Group reports four reportable segments: Biomass Integrated Utilization project construction and operation, Hazardous and Solid Waste Treatment project construction and operation, Environmental Remediation project operation, and Photovoltaic and Wind Power Generation project operation[12](index=12&type=chunk)[16](index=16&type=chunk) - Segment performance is reported using "adjusted earnings before interest, tax, depreciation and amortisation (non-GAAP measure)" ("adjusted EBITDA")[14](index=14&type=chunk) [Segment Performance, Assets and Liabilities](index=8&type=section&id=分部業績%E3%80%81資產及負債) During the period, Biomass Integrated Utilization projects contributed the highest revenue and adjusted EBITDA, while Environmental Remediation projects recorded a loss, with detailed segment asset and liability totals presented Segment Performance, Assets and Liabilities Summary (H1 2025) | Segment | Revenue (HKD thousands) | Adjusted EBITDA (HKD thousands) | Segment Assets (HKD thousands) | | :--- | :--- | :--- | :--- | | Biomass Integrated Utilization | 2,711,473 | 1,021,719 | 27,146,714 | | Hazardous and Solid Waste Treatment | 515,235 | 26,738 | 6,447,862 | | Environmental Remediation | 72,680 | (59,052) | 624,314 | | Photovoltaic and Wind Power Generation | 100,734 | 86,761 | 1,408,163 | | Total | 3,400,122 | 1,076,166 | 35,627,053 | - The Environmental Remediation project operation segment recorded an adjusted EBITDA loss of **HKD 59,052 thousands**[17](index=17&type=chunk) [Major Customer Information](index=9&type=section&id=主要客戶資料) For the six months ended June 30, 2025, the Group's revenue from two local Chinese government agencies accounted for over **10%** of total revenue, with one agency contributing **HKD 1,261,485 thousands** - For the six months ended June 30, 2025, the Group transacted with two local government agencies in the People's Republic of China ("China"), with these transactions individually accounting for over **10%** of the Group's revenue[18](index=18&type=chunk) - Revenue from this Chinese local government agency was **HKD 1,261,485 thousands** (H1 2024: **HKD 892,286 thousands**)[18](index=18&type=chunk) [Revenue](index=9&type=section&id=收益) For the six months ended June 30, 2025, the Group's total revenue was **HKD 3,400,122 thousands**, primarily contributed by operating service revenue from biomass integrated utilization projects, with financial income from service concession arrangements also accounting for a certain proportion Revenue Analysis (H1 2025) | Revenue Type | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Biomass Integrated Utilization project construction service revenue | 46,488 | 178,507 | | Biomass Integrated Utilization project operating service revenue | 2,502,922 | 2,436,265 | | Hazardous and Solid Waste Treatment project operating service revenue | 513,275 | 562,378 | | Environmental Remediation project operating service revenue | 72,680 | 63,026 | | Photovoltaic and Wind Power Generation project operating service revenue | 100,734 | 97,320 | | Total revenue from contracts with customers | 3,236,099 | 3,337,496 | | Financial income from service concession arrangements | 164,023 | 168,081 | | Total Revenue | 3,400,122 | 3,505,577 | - Revenue from biomass integrated utilization project construction services significantly decreased by **74%** year-on-year, from **HKD 178,507 thousands** to **HKD 46,488 thousands**[19](index=19&type=chunk) [Finance Costs](index=10&type=section&id=財務費用) For the six months ended June 30, 2025, the Group's total finance costs were **HKD 294,302 thousands**, a significant decrease from the prior period, primarily due to reduced interest on bank and other borrowings Finance Costs Analysis (H1 2025) | Finance Cost Type | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 186,021 | 334,442 | | Interest on lease liabilities | 282 | 473 | | Interest on medium-term notes | 88,954 | 78,172 | | Asset-backed securities right maintenance fees | 19,307 | – | | Finance costs incurred | 294,564 | 413,087 | | Less: Interest capitalized | (262) | (2,596) | | Total | 294,302 | 410,491 | - Interest on bank and other borrowings significantly decreased from **HKD 334,442 thousands** in H1 2024 to **HKD 186,021 thousands** in H1 2025[20](index=20&type=chunk) - New asset-backed securities right maintenance fees amounted to **HKD 19,307 thousands**[20](index=20&type=chunk) [Profit Before Tax](index=11&type=section&id=除稅前盈利) During the period, the Group's profit before tax was **HKD 244,429 thousands**, primarily impacted by intangible asset amortization, depreciation, cost of inventories consumed, and impairment losses on goodwill and property, plant and equipment - Amortization of intangible assets was **HKD 291,759 thousands**, and depreciation of property, plant and equipment was **HKD 131,558 thousands**[21](index=21&type=chunk) - Cost of inventories consumed was **HKD 1,186,532 thousands**, and credit losses on trade and contract assets were **HKD 13,000 thousands**[21](index=21&type=chunk) - Impairment losses on goodwill and property, plant and equipment of **HKD 178,379 thousands** were recognized, including a full impairment of goodwill for Everbright Ecological Remediation (Jiangsu) Co., Ltd. of **HKD 65,816 thousands**, and impairment of property, plant and equipment of **HKD 112,563 thousands** due to the cessation of operations of certain hazardous and solid waste treatment projects[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) [Income Tax](index=12&type=section&id=所得稅) The Group's total income tax expense for the six months ended June 30, 2025, was **HKD 80,570 thousands**, primarily from Chinese operations, calculated at a statutory rate of **25%** under Chinese tax laws, with some Chinese subsidiaries enjoying tax incentives Income Tax Expense Analysis (H1 2025) | Income Tax Type | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | | :--- | :--- | :--- | | Current – Other locations: Provision for the period | 100,758 | 66,004 | | Under/(over) provision in prior periods | 2,675 | (442) | | Deferred | (22,863) | 4,807 | | Total tax expense for the period | 80,570 | 70,369 | - Taxation for Chinese operations is calculated at a statutory rate of **25%** on taxable profits in accordance with Chinese tax laws and regulations, with certain Chinese subsidiaries enjoying tax incentives[24](index=24&type=chunk) - Management assesses that the Group currently has no significant tax risks arising from global minimum tax reform[25](index=25&type=chunk) [Dividends](index=12&type=section&id=股息) The Board declared an interim dividend of **2.8 HK cents** per share for the six months ended June 30, 2025, doubling from the prior period, with a payout ratio of **30.32%**, payable on or about October 14, 2025 - The Board declared an interim dividend of **2.8 HK cents** per ordinary share (H1 2024: **1.4 HK cents** per share), totaling approximately **HKD 57,850 thousands**[26](index=26&type=chunk) - The interim dividend payout ratio for the six months ended June 30, 2025, was **30.32%** (2024: **20.1%**)[81](index=81&type=chunk) [Earnings Per Share Attributable to Equity Holders of the Company](index=12&type=section&id=本公司權益股東應佔每股盈利) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to equity holders of the Company were **9.23 HK cents**, an increase from **6.97 HK cents** in the prior period Earnings Per Share Analysis (H1 2025) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (HKD thousands) | 190,791 | 143,925 | | Weighted average number of ordinary shares (thousands) | 2,066,078 | 2,066,078 | | Basic and diluted earnings per share | 9.23 HK cents | 6.97 HK cents | - Profit for the period attributable to equity holders of the Company increased from **HKD 143,925 thousands** in H1 2024 to **HKD 190,791 thousands** in H1 2025[27](index=27&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=13&type=section&id=應收賬款%E3%80%81其他應收款項%E3%80%81按金及預付款項) As of June 30, 2025, total trade receivables were **HKD 6,663,649 thousands**, with a significant portion overdue by more than thirteen months, and loss allowance at period-end was **HKD 207,684 thousands** Trade Receivables Ageing Analysis (June 30, 2025) | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Not more than one month | 548,607 | 569,029 | | Over thirteen months | 4,508,782 | 4,322,342 | | Total trade receivables (net of loss allowance) | 6,663,649 | 6,458,757 | - The loss allowance for trade receivables at period-end was **HKD 207,684 thousands**, an increase from **HKD 196,776 thousands** at the beginning of the year[30](index=30&type=chunk) - The carrying amount of trade receivables measured at fair value through other comprehensive income increased from **HKD 4,733,080 thousands** as of December 31, 2024, to **HKD 5,107,229 thousands** as of June 30, 2025[29](index=29&type=chunk) [Contract Assets](index=14&type=section&id=合約資產) As of June 30, 2025, the Group's total contract assets were **HKD 10,482,092 thousands**, primarily comprising service concession arrangement assets and unbilled renewable energy tariff subsidies Contract Assets Composition (June 30, 2025) | Contract Asset Type | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Service concession arrangement assets | 6,525,979 | 6,494,201 | | Unbilled renewable energy tariff subsidies | 3,530,348 | 3,106,104 | | Environmental remediation contract assets | 442,695 | 402,969 | | Total contract assets (net of impairment) | 10,482,092 | 9,992,953 | - Unbilled renewable energy tariff subsidies increased from **HKD 3,106,104 thousands** as of December 31, 2024, to **HKD 3,530,348 thousands** as of June 30, 2025[31](index=31&type=chunk) - Service concession arrangement assets arise from Build-Operate-Transfer (BOT) and Build-Operate-Own (BOO) arrangements, bearing interest at annual rates ranging from **4.65%** to **6.60%**[32](index=32&type=chunk) [Trade and Other Payables and Accruals](index=16&type=section&id=應付賬款%E3%80%81其他應付款項及應計費用) As of June 30, 2025, the Group's total trade and other payables and accruals were **HKD 2,430,921 thousands**, with trade payables primarily consisting of amounts due to third parties and fellow subsidiaries Trade and Other Payables and Accruals Composition (June 30, 2025) | Liability Type | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade payables – Third parties | 1,112,755 | 1,310,870 | | Trade payables – Fellow subsidiaries | 40,840 | 21,841 | | Other payables and accruals | 1,060,140 | 1,187,301 | | Deferred income – Government grants | 187,759 | 167,948 | | Total | 2,430,921 | 2,716,308 | - Total trade payables decreased from **HKD 1,332,711 thousands** as of December 31, 2024, to **HKD 1,153,595 thousands** as of June 30, 2025[37](index=37&type=chunk) - Of the trade payables, **HKD 377,817 thousands** were construction payables for the Group's BOT and certain BOO arrangements[37](index=37&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=管理層討論與分析) During the period, amidst a complex international economic and trade environment, the Group maintained steady progress, focusing on "dual carbon" strategy and "new quality productive forces" to drive business transformation and achieve stable and improving operating performance. The company made progress in market expansion, technological innovation, operations management, risk control, and ESG, while ensuring ample funding through diversified financing channels [Operating Performance Overview](index=18&type=section&id=經營業績概覽) In H1 2025, amidst a complex and changing international economic and trade environment, the Group maintained steady progress, focusing on the "dual carbon" strategy and ecological civilization construction, driving transformation into a technology-led environmental enterprise, achieving stable and improving operating performance with both quality and efficiency - The Group resolutely implemented national decisions on deepening the "dual carbon" strategy and promoting ecological civilization construction, fully driving the company's transformation into a technology-led environmental enterprise[39](index=39&type=chunk) - The Group achieved stable and improving operating performance in the first half of the year, demonstrating a positive development trend with both quality and efficiency[39](index=39&type=chunk) - As of June 30, 2025, the Group had implemented **142** environmental investment projects with a total investment of approximately **RMB 30.65 billion**; it had cumulatively undertaken **70** light-asset projects such as environmental remediation, involving total contract amounts of approximately **RMB 1.855 billion**[40](index=40&type=chunk) [Business Development and Strategy](index=18&type=section&id=業務發展與戰略) The Group advanced its "second entrepreneurship" around the "Two-Modernizations and One-Type" strategy, focusing on "clean energy" as its core business, expanding into biomass heating, distributed PV, user-side energy storage, and virtual power plant projects, while actively promoting high-value biomass utilization and landfill ecological remediation light-asset projects - The Group fully advanced its "second entrepreneurship" journey, anchored by "clean energy" as its core business, centered on the "Two-Modernizations and One-Type" (technological, international, ecological) core development strategy[41](index=41&type=chunk) - Continued focus on clean energy projects targeting "zero-carbon parks" such as biomass heating, distributed photovoltaic, user-side energy storage, and virtual power plants, as well as light-asset projects with a focus on "landfill ecological remediation"[41](index=41&type=chunk) - Added **520,000 tons** of annual heating capacity, expanded the first bio-natural gas project, added **10 million tons** of annual bio-natural gas production capacity, and added approximately **RMB 128 million** in environmental remediation business contract value[41](index=41&type=chunk) [Technological Innovation and R&D](index=19&type=section&id=科技創新與研發) The Group firmly centered on technological innovation, focusing on R&D of cutting-edge technologies like bio-natural gas, biomass gasification heating, and green methanol, successfully launching its first bio-natural gas project through industry-academia-research collaboration, and partnering with Alibaba Cloud to build a "Virtual Power Plant and Power Trading Auxiliary Decision Platform" - The Group firmly positioned technological innovation as its core development engine, strategically focusing on key areas such as bio-natural gas, biomass gasification heating, biomass-to-green methanol, and biomass-to-sugar[42](index=42&type=chunk) - Actively collaborated with institutions like the Chinese Academy of Sciences to develop efficient anaerobic fermentation technology for bio-natural gas from biomass, successfully launching the first bio-natural gas project[42](index=42&type=chunk) - Jointly with Alibaba Cloud, developed an "Virtual Power Plant and Power Trading Auxiliary Decision Platform" based on AI algorithm technology, successfully signing **136** power users[42](index=42&type=chunk) [Operations Management and Risk Control](index=20&type=section&id=運營管理與風險控制) The Group deepened cost-saving and revenue-generating efforts through refined operations management, optimizing fuel quality and procurement costs, and implemented "one enterprise, one policy" and asset optimization strategies to address challenges in the hazardous and solid waste treatment market. Concurrently, it strengthened its comprehensive risk management system, revised the "Risk Factor List," and optimized related party transaction management policies - In biomass integrated utilization, actively expanded the heating market, opened green certificate trading channels, and optimized fuel quality and procurement costs[43](index=43&type=chunk) - In hazardous and solid waste treatment, adopted a strategy emphasizing both quality improvement and efficiency enhancement, and asset optimization, through organizational restructuring, implementing "one enterprise, one policy," reducing production costs, and disposing of inefficient and non-performing assets[43](index=43&type=chunk) - Comprehensive risk management is integrated into the company's development strategy, by establishing an efficient risk management system, revising the "Risk Factor List," and defining the scope of "key controlled risks"[44](index=44&type=chunk) [Environmental, Social and Governance (ESG)](index=21&type=section&id=環境%E3%80%81社會及管治%20(ESG)) The Group highly prioritizes ESG risks, integrating them into its comprehensive risk management system, deepening climate-related risk management, advancing TCFD work, and earning multiple honors for its outstanding ESG performance, including the "2025 ESG Model Enterprise Award" and improved ESG ratings from Wind and Huazheng Index - The Group consistently prioritizes Environmental, Social, and Governance (ESG) related risks, integrating them into its comprehensive risk management system for key control[45](index=45&type=chunk) - Deepened the work on Task Force on Climate-related Financial Disclosures (TCFD), clarifying the impact of climate-related risks and opportunities on the Group's business operations through scenario analysis[45](index=45&type=chunk) - With its outstanding ESG performance, the Group received multiple honors, including the "**2025 ESG Model Enterprise Award**," and achieved improved ESG ratings from both Wind and Huazheng Index, two authoritative institutions[45](index=45&type=chunk) [Social Responsibility](index=21&type=section&id=社會責任) The Group continued to deepen public access to environmental facilities, with its Rugao Biomass Power Generation project included in the national list of open environmental facilities; as of June 30, 2025, **47** projects were officially open to the public, having cumulatively hosted **1,635** visitors - The Group continued to deepen its commitment to opening environmental facilities to the public, disclosing project environmental impact assessment reports and environmental monitoring data through various media channels[46](index=46&type=chunk) - The Group's Rugao Biomass Power Generation project was included by the Ministry of Ecology and Environment in the fifth batch of national environmental facilities and urban sewage and waste treatment facilities open to the public[46](index=46&type=chunk) - As of June 30, 2025, the company had a total of **47** projects officially open to the public, cumulatively holding **79** offline public open days and receiving a total of **1,635** visitors[46](index=46&type=chunk) [Financial Performance Summary](index=22&type=section&id=財務表現總結) During the period, the Group's revenue decreased by **3%** year-on-year to **HKD 3,400,122 thousands**, and EBITDA decreased by **11%** to **HKD 974,366 thousands**, but profit attributable to equity holders of the Company increased by **33%** year-on-year to **HKD 190,791 thousands**, primarily due to reduced operating costs - The Group recorded revenue of approximately **HKD 3,400,122 thousands**, a **3%** decrease from the prior period; EBITDA was approximately **HKD 974,366 thousands**, an **11%** decrease from the prior period[47](index=47&type=chunk) - Profit attributable to equity holders of the Company was approximately **HKD 190,791 thousands**, a **33%** increase from the prior period[47](index=47&type=chunk) - The decrease in revenue was mainly due to reduced construction service revenue; the increase in profit attributable to equity holders of the Company benefited from exploring cost reduction potential during the period, leading to a decrease in operating costs[47](index=47&type=chunk) [Financing Activities](index=22&type=section&id=融資活動) In H1 2025, the Group successfully broadened its financing channels by issuing the first tranche of asset-backed special plans (**RMB 630 million** priority class) and two tranches of green medium-term notes (totaling **RMB 2 billion**), with proceeds used to supplement working capital, repay debt, and invest in projects - In January 2025, the first tranche of asset-backed special plans was issued, with a priority asset-backed securities issuance size of **RMB 630 million** and a coupon rate of **1.79%**[48](index=48&type=chunk) - In February 2025, the first tranche of 2025 green medium-term notes was issued, with an issuance amount of **RMB 1 billion** and a fixed annual coupon rate of **2.39%**[49](index=49&type=chunk) - In May 2025, the second tranche of 2025 green medium-term notes was issued, with a principal amount of **RMB 1 billion** and an annual coupon rate of **1.98%**[49](index=49&type=chunk) [Segment Revenue and Profit Analysis](index=24&type=section&id=分部收益與盈利分析) During the period, the Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation segments collectively generated **HKD 3,400,122 thousands** in revenue, with operating service revenue accounting for **94%**. The Biomass Integrated Utilization segment contributed the highest EBITDA, while the Environmental Remediation segment recorded a loss Segment Revenue and EBITDA (H1 2025) | Segment | Revenue (HKD thousands) | EBITDA (HKD thousands) | | :--- | :--- | :--- | | Biomass Integrated Utilization projects | 2,711,473 | 1,021,719 | | Hazardous and Solid Waste Treatment projects | 515,235 | 26,738 | | Environmental Remediation projects | 72,680 | (59,052) | | Photovoltaic and Wind Power Generation projects | 100,734 | 86,761 | | Total | 3,400,122 | 1,076,166 | - Construction service revenue was approximately **HKD 46,488 thousands**, a **74%** decrease from the prior period; operating service revenue was approximately **HKD 3,189,611 thousands**, a **1%** increase from the prior period[50](index=50&type=chunk) - By revenue nature, construction services, operating services, and financial income accounted for **1%**, **94%**, and **5%** of total revenue, respectively[50](index=50&type=chunk) [Segment Business Details](index=25&type=section&id=分部業務詳情) This section details the operating models, project layouts, key operating data, and financial performance of the Group's four core business segments—Biomass Integrated Utilization, Hazardous and Solid Waste Treatment, Environmental Remediation, and Photovoltaic and Wind Power Generation—revealing their growth drivers and challenges [Biomass Integrated Utilization](index=25&type=section&id=生物質綜合利用) The Group's biomass integrated utilization business primarily generates electricity and heat from biomass raw materials, combined with waste-to-energy, achieving an urban-rural integrated model. As of June 30, 2025, it had **57** projects with a total investment of approximately **RMB 17.354 billion**, contributing approximately **HKD 1,021,719 thousands** in EBITDA during the period, a **15%** year-on-year increase - The Group primarily utilizes biomass raw materials for power generation and heating, and has developed a unique urban-rural integrated business model, combining biomass integrated utilization projects with waste-to-energy projects[51](index=51&type=chunk) - As of June 30, 2025, the Group owned a total of **57** biomass integrated utilization projects, with a total investment of approximately **RMB 17.354 billion** and a total designed installed capacity of **1,069 MW**[51](index=51&type=chunk) Biomass Integrated Utilization Segment Key Operating Data (H1 2025) | Operating Data | H1 2025 | H1 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Grid-connected electricity (MWh) | 3,265,205 | 3,176,136 | 3% | | Biomass raw material processed (tons) | 3,742,000 | 3,883,000 | -4% | | Municipal solid waste processed (tons) | 2,074,000 | 2,057,000 | 1% | | Steam supplied (tons) | 1,773,000 | 1,328,000 | 34% | [Hazardous and Solid Waste Treatment](index=26&type=section&id=危廢及固廢處置) The Group's hazardous and solid waste treatment business covers incineration, landfill, physical-chemical treatment, and comprehensive utilization, capable of treating **44** categories of hazardous waste listed in the "National Hazardous Waste List". As of June 30, 2025, it had **48** projects with a total investment of approximately **RMB 11.257 billion**. During the period, this segment's EBITDA decreased by **76%** year-on-year and recorded a net loss, primarily due to weak market recovery, intensified competition, and asset disposal losses - The Group primarily engages in the safe disposal and comprehensive utilization of general industrial solid waste, hazardous waste, dead animals, etc., capable of safely disposing of **44** out of **46** categories of hazardous waste listed in the "National Hazardous Waste List"[54](index=54&type=chunk) - As of June 30, 2025, the Group owned a total of **48** hazardous and solid waste treatment projects, with a total investment of approximately **RMB 11.257 billion**[54](index=54&type=chunk) Hazardous and Solid Waste Treatment Segment Key Operating Data (H1 2025) | Operating Data | H1 2025 | H1 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Hazardous and solid waste treated (tons) – Harmless disposal | 212,000 | 217,000 | -2% | | Hazardous and solid waste treated (tons) – Resource comprehensive utilization | 27,300 | 30,200 | -10% | | Resource utilization product sales (tons) | 7,300 | 6,500 | 12% | | Grid-connected electricity (MWh) | 13,039 | 14,023 | -7% | | Steam supplied (tons) | 403,000 | 379,000 | 6% | [Environmental Remediation](index=27&type=section&id=環境修復) The Group's environmental remediation business covers landfill ecological restoration, industrial contaminated site remediation, etc., possessing multiple professional qualifications. As of June 30, 2025, there were **19** projects under execution, with total contract amounts of approximately **RMB 814 million**. During the period, this segment recorded an EBITDA loss of approximately **HKD 59,052 thousands**, and net loss increased, mainly due to lower-than-expected market conditions and goodwill impairment - The Group's environmental remediation business primarily covers landfill ecological restoration, industrial contaminated site remediation, polluted farmland remediation, and river and lake sediment treatment[57](index=57&type=chunk) - As of June 30, 2025, the Group had a total of **19** environmental remediation projects under execution, with total contract amounts of approximately **RMB 814 million**[58](index=58&type=chunk) - The Group's environmental remediation projects recorded a loss before interest, tax, depreciation, and amortization of approximately **HKD 59,052 thousands**, an **820%** increase in loss from the prior period[59](index=59&type=chunk) - The increased loss was primarily due to the environmental remediation market conditions developing below expectations, continuous project operating losses, and goodwill impairment losses[59](index=59&type=chunk) [Photovoltaic and Wind Power Generation](index=28&type=section&id=光伏發電及風電) As of June 30, 2025, the Group's photovoltaic and wind power generation business had **33** photovoltaic projects and **2** wind power projects, with a total designed installed capacity of **246.66 MW**. During the period, both EBITDA and net profit for this segment decreased by **2%** year-on-year, mainly due to reduced grid-connected electricity from wind power projects and increased maintenance costs - As of June 30, 2025, the Group had a total of **33** operational and completed photovoltaic power projects and **2** operational wind power projects, with a total designed installed capacity of **246.66 MW**[60](index=60&type=chunk) - The Group's photovoltaic and wind power generation projects contributed approximately **HKD 86,761 thousands** in earnings before interest, tax, depreciation, and amortization, a **2%** decrease from the prior period[61](index=61&type=chunk) Photovoltaic and Wind Power Generation Segment Key Operating Data (H1 2025) | Operating Data | H1 2025 | H1 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Grid-connected electricity (MWh) | 145,970 | 144,832 | 1% | [Business Outlook](index=29&type=section&id=業務展望) Looking ahead to 2025, the Group will adhere to the "seek progress while maintaining stability, promote stability through practical efforts" approach, focusing on the "clean energy" strategy, responding to policy changes, building a "traditional business strengthening + emerging areas breakthrough" dual-driven pattern, deepening regional synergy, and accelerating industrial upgrading, embarking on a new journey of "second entrepreneurship" [Macro Environment and Policy Trends](index=29&type=section&id=宏觀環境與政策趨勢) In 2025, the global economy will see a differentiated recovery amidst green transformation and geopolitical reshaping, as China concludes its "14th Five-Year Plan," ecological environment governance enters a new "precise, intelligent, systematic" stage, and new energy electricity price marketization reforms and "zero-carbon park" construction bring new development opportunities and challenges - **2025** marks the final year of the "14th Five-Year Plan" and a critical year for deeply integrating new quality productive forces with green development, as ecological environment governance enters a new stage of "precision, intelligence, and systematization"[65](index=65&type=chunk) - The National Development and Reform Commission and the National Energy Administration jointly issued a notice to promote the full market entry of new energy grid-connected electricity and establish a unified institutional framework for direct green power connections[65](index=65&type=chunk) - The "Notice on Carrying out Zero-Carbon Park Construction" clarifies "carbon emissions per unit of energy consumption" as a core indicator, which will further promote the energy structure transformation and green upgrading of industrial parks[65](index=65&type=chunk) [Strategic Direction and Future Plans](index=30&type=section&id=戰略方向與未來規劃) The Group will build a "traditional business strengthening + emerging areas breakthrough" dual-driven pattern, focusing on "cogeneration + green empowerment," expanding the heating market, extending the industrial chain to high-value utilization projects such as biomass-to-sugar, biomass-to-carbon, and bio-natural gas, deepening regional synergy, accelerating the divestment of inefficient assets, and building a leader in the biomass energy industry with its "clean energy" strategy - The Group is focused on building a dual-driven pattern of "traditional business strengthening + emerging areas breakthrough," with "cogeneration + green empowerment" as its core direction[66](index=66&type=chunk) - Actively accelerated the expansion of heating users, broadened heating areas, and increased heating revenue to enhance cash flow; promoted the extension of the industrial chain to high-value-added segments, focusing on the implementation of high-value utilization projects such as biomass-to-sugar, biomass-to-carbon, and bio-natural gas[66](index=66&type=chunk) - During the "15th Five-Year Plan" period, the Group will focus on the "clean energy" strategy, aiming to become a leading enterprise in China's biomass energy industry and build a new multi-energy complementary pattern of "green electricity + green steam + green hydrogen + green methanol"[67](index=67&type=chunk) [Financial Review](index=32&type=section&id=財務回顧) This section reviews the Group's financial position, financial resources, indebtedness, foreign exchange risk, pledge of assets, commitments, contingent liabilities, tax relief, and human resources as of June 30, 2025, indicating a robust asset-liability structure, good liquidity, and continuous optimization of financing structure [Financial Position](index=32&type=section&id=財務狀況) As of June 30, 2025, the Group's total assets were approximately **HKD 37,739,969 thousands**, net assets approximately **HKD 12,437,445 thousands**, and net asset value per share increased to **HKD 4.91**. The gearing ratio remained stable at **67.04%**, and the current ratio increased to **129.32%** Financial Position Summary (June 30, 2025) | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Total assets | 37,739,969 | 36,331,601 | +3.88% | | Net assets | 12,437,445 | 11,662,300 | +6.65% | | Net asset value per share attributable to equity holders of the Company | 4.91 HKD | 4.65 HKD | +5.59% | | Gearing ratio | 67.04% | 67.90% | -0.86 percentage points | | Current ratio | 129.32% | 125.40% | +3.92 percentage points | - The gearing ratio remained stable, primarily benefiting from the company's cautious investment strategy amidst economic uncertainties[69](index=69&type=chunk) [Financial Resources](index=32&type=section&id=財務資源) The Group adopted prudent principles for cash and financial management; as of June 30, 2025, cash and bank balances were approximately **HKD 2,610,492 thousands**, an increase of approximately **HKD 936,776 thousands** from end-2024, with primary funding sources being medium-term notes, internal cash flow, and bank loans - The Group adopted prudent principles for cash and financial management, effectively managing risks and reducing funding costs[70](index=70&type=chunk) - As of June 30, 2025, the Group held cash and bank balances of approximately **HKD 2,610,492 thousands**, an increase of approximately **HKD 936,776 thousands** from end-2024[70](index=70&type=chunk) - Working capital primarily originated from proceeds from medium-term note issuance, internal cash flow, and bank loans[70](index=70&type=chunk) [Indebtedness](index=32&type=section&id=負債狀況) As of June 30, 2025, the Group's total outstanding loans were approximately **HKD 21,913,625 thousands**, with **52%** at fixed interest rates and **48%** at floating interest rates. Bank financing facilities were ample, with unused facilities of approximately **HKD 7,081,449 thousands** - As of June 30, 2025, the Group's total outstanding loans were approximately **HKD 21,913,625 thousands**, an increase of approximately **HKD 913,473 thousands** from end-2024[71](index=71&type=chunk) - The Group's fixed-rate and floating-rate loans accounted for **52%** and **48%**, respectively[71](index=71&type=chunk) Maturity Profile of Interest-Bearing Bank and Other Borrowings (HKD millions) | Maturity | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 8,901 | 7,718 | | In the 2nd year | 4,702 | 4,787 | | In the 3rd to 5th year | 5,782 | 5,571 | | After the 5th year | 2,529 | 2,924 | | Total | 21,914 | 21,000 | [Foreign Exchange Risk](index=33&type=section&id=外匯風險) The Group's primary operations are in mainland China, with most assets, loans, and transactions denominated in RMB, creating a natural hedge, and foreign exchange risk is managed through appropriate matching of currency loans and financial instruments - The Group has foreign exchange risk from investments outside Hong Kong (including mainland China), but China is the Group's primary business location, accounting for over **95%** of total investments and revenue[73](index=73&type=chunk) - Most of the Group's assets, loans, and major transactions are denominated in RMB, essentially forming a natural hedge[73](index=73&type=chunk) [Pledge of Assets](index=33&type=section&id=資產抵押) As of June 30, 2025, the Group's total net book value of pledged assets was approximately **HKD 17,888,150 thousands**, primarily used for bank financing and other loans - The total net book value of pledged assets was approximately **HKD 17,888,150 thousands** (December 31, 2024: **HKD 17,920,001 thousands**)[74](index=74&type=chunk) - Pledged assets include certain revenue rights related to the Group's service concession arrangements, contract assets, intangible assets and receivables, bank deposits, the Group's property, plant and equipment, and right-of-use assets[74](index=74&type=chunk) [Commitments](index=34&type=section&id=承擔) As of June 30, 2025, the Group had purchase commitments contracted for construction contracts of approximately **HKD 36,885 thousands**, and capital commitments related to investments in joint ventures, associates, and financial asset entities of approximately **HKD 45,558 thousands** - As of June 30, 2025, the Group had purchase commitments contracted for construction contracts of approximately **HKD 36,885 thousands**[75](index=75&type=chunk) - Capital commitments related to investments in joint ventures, associates, and financial asset entities amounted to **HKD 45,558 thousands**[75](index=75&type=chunk) [Contingent Liabilities](index=34&type=section&id=或有負債) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[76](index=76&type=chunk) [Tax Relief and Exemptions](index=34&type=section&id=稅務寬減及豁免) The Company is unaware of any tax relief or exemptions enjoyed by shareholders due to their holding of the Company's shares - The Company is unaware of any tax relief or exemptions enjoyed by shareholders due to their holding of the Company's shares[77](index=77&type=chunk) [Human Resources](index=34&type=section&id=人力資源) As of June 30, 2025, the Group employed over **3,200** staff in Hong Kong and mainland China, with total staff costs of approximately **HKD 294,243 thousands**, and provided continuous training and other benefits - As of June 30, 2025, the Group employed over **3,200** staff in Hong Kong and mainland China[78](index=78&type=chunk) - Total staff costs for the six months ended June 30, 2025, were approximately **HKD 294,243 thousands**[78](index=78&type=chunk) [Other Information](index=34&type=section&id=其他資料) This section covers other important information regarding the Group's corporate governance, compliance with the standard code for securities transactions by directors, interim dividend distribution, closure of register of members, dealings in listed securities, and publication of interim report and board members [Corporate Governance](index=34&type=section&id=企業管治) The Group is committed to maintaining robust corporate governance, having adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules, and complied with all applicable code provisions during the reporting period - The Group has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules as its corporate governance practice code[79](index=79&type=chunk) - For the six months ended June 30, 2025, the Company complied with all applicable code provisions set out in Part 2 of the Corporate Governance Code[79](index=79&type=chunk) [Standard Code for Securities Transactions by Directors](index=35&type=section&id=董事進行證券交易之標準守則) The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules and confirmed that all Directors complied with the code during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for Directors' securities transactions[80](index=80&type=chunk) - Following specific enquiries made to all Directors, the Company confirmed that they had complied with the required standards set out in the Standard Code throughout the review period[80](index=80&type=chunk) [Interim Dividend](index=35&type=section&id=中期股息) The Board declared an interim dividend of **2.8 HK cents** per share for the six months ended June 30, 2025, with a payout ratio of **30.32%**, payable on or about October 14, 2025 - The Board declared an interim dividend of **2.8 HK cents** per share for the six months ended June 30, 2025 (2024: **1.4 HK cents** per share)[81](index=81&type=chunk) - The interim dividend payout ratio for the six months ended June 30, 2025, was **30.32%** (2024: **20.1%**)[81](index=81&type=chunk) - The interim dividend will be paid in cash on or about Tuesday, October 14, 2025[81](index=81&type=chunk) [Closure of Register of Members](index=35&type=section&id=暫停辦理股份過戶登記) To qualify for the interim dividend, the Company will suspend its register of members from September 19 to September 23, 2025, with all share transfer documents to be lodged with the Hong Kong share registrar by 4:30 p.m. on September 18, 2025 - The Company's register of members will be closed from Friday, September 19, 2025, to Tuesday, September 23, 2025 (both dates inclusive)[82](index=82&type=chunk) - To qualify for the interim dividend, all share transfer documents and relevant share certificates must be lodged with the Company's Hong Kong share registrar by **4:30 p.m.** on Thursday, September 18, 2025[82](index=82&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=購買%E3%80%81出售或贖回本公司之上市證券) 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 - 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[83](index=83&type=chunk) [Publication and Despatch of Interim Report](index=36&type=section&id=刊載及寄發中期報告) The Company's interim results announcement for the six months ended June 30, 2025, has been published on the HKEX and company websites, and the interim report will be published and despatched to shareholders who have opted for printed copies in due course - The Company's interim results announcement for the six months ended June 30, 2025, has been published on the Hong Kong Stock Exchange and the Company's website[84](index=84&type=chunk) - The Company's 2025 interim report will be published on the HKEX and the Company's website and despatched to shareholders who have opted for printed copies in due course[84](index=84&type=chunk) [Board of Directors](index=36&type=section&id=董事會成員) As of the announcement date, the Board of Directors includes Mr. Zhu Fugang (Chairman, Executive Director), Mr. Liang Haidong (CEO, Executive Director), Mr. Huang Chaoxiong (Executive Director), Ms. Mao Jing (Non-executive Director), and Mr. Zou Xiaolei, Professor Yan Houmin, Mr. Li Huaqiang (Independent Non-executive Directors) - The Board of Directors includes Mr. Zhu Fugang (Chairman, Executive Director), Mr. Liang Haidong (CEO, Executive Director), Mr. Huang Chaoxiong (Executive Director), Ms. Mao Jing (Non-executive Director), Mr. Zou Xiaolei (Independent Non-executive Director), Professor Yan Houmin (Independent Non-executive Director), and Mr. Li Huaqiang (Independent Non-executive Director)[86](index=86&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company achieved significant growth in revenue, gross profit, and net profit in the first half of 2025, with a notable increase in basic earnings per share and interim dividends Financial Performance Summary | Indicator | H1 2025 (million USD) | H1 2024 (million USD) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,664.5 | 1,300.5 | 28.0% | | Gross Profit | 669.4 | 402.6 | 66.3% | | Gross Margin | 40.2% | 31.0% | +9.2pp | | Profit | 633.4 | 352.8 | 79.5% | | Basic Earnings Per Share | 0.24 | 0.13 | 84.6% | | Interim Dividend (per share HKD) | 1.30 | 0.72 | 80.6% | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group reported a 28.0% revenue increase to $1,664.5 million, a 66.3% gross profit rise to $669.4 million, and a 79.5% profit increase to $633.4 million, with basic EPS reaching $0.24 Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Revenue | 1,664,489 | 1,300,521 | | Cost of Sales | (995,058) | (897,906) | | Gross Profit | 669,431 | 402,615 | | Other Income and Gains/(Losses) Net | 37,822 | 20,228 | | Administrative Expenses | (67,809) | (63,824) | | Other Expenses Net | (1,673) | (399) | | Finance Costs | (8,466) | (7,345) | | Share of Profits of Joint Ventures | 13,348 | 10,491 | | Share of Profits of Associates | 954 | 612 | | Profit Before Tax | 643,607 | 362,378 | | Income Tax | (10,159) | (9,532) | | Profit for the Period | 633,448 | 352,846 | | Total Comprehensive Income for the Period | 647,438 | 349,327 | | Basic Earnings Per Share Attributable to Owners of the Company | 0.24 | 0.13 | - Other comprehensive income shifted from a loss of **$3,519 thousand** in H1 2024 to a gain of **$13,990 thousand** in H1 2025, primarily due to positive foreign exchange differences from overseas operations[7](index=7&type=chunk)[9](index=9&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased to $2,221.9 million, with net current assets significantly improving to $632.9 million, reflecting a robust asset base and enhanced liquidity Statement of Financial Position | Indicator | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 1,835,929 | 1,827,726 | | Right-of-use Assets | 275,655 | 235,841 | | Total Non-current Assets | 2,221,864 | 2,174,554 | | **Current Assets** | | | | Cash and Bank Balances | 798,996 | 744,494 | | Total Current Assets | 1,118,002 | 1,023,519 | | **Current Liabilities** | | | | Trade Payables | 281,629 | 233,680 | | Bank Borrowings | 13,170 | 114,981 | | Total Current Liabilities | 485,105 | 544,756 | | **Non-current Liabilities** | | | | Bank Borrowings | 60,469 | 51,876 | | Total Non-current Liabilities | 268,133 | 231,813 | | **Equity** | | | | Equity Attributable to Owners of the Company | 2,564,540 | 2,404,236 | | Total Equity | 2,586,628 | 2,421,504 | | Net Current Assets | 632,897 | 478,763 | [Notes to the Interim Condensed Consolidated Financial Information](index=7&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [Corporate Information](index=7&type=section&id=Corporate%20Information) SITC International Holdings Company Limited, incorporated in the Cayman Islands, primarily provides integrated shipping logistics services, with Resourceful Link Management Limited as its direct holding company - The Group primarily provides integrated shipping logistics services, including container shipping, freight forwarding, shipping agency, yard, warehousing, land leasing, and other services[12](index=12&type=chunk) - The Company's direct holding company is Resourceful Link Management Limited, incorporated in the British Virgin Islands, and its ultimate holding company is Better Master Limited[12](index=12&type=chunk) [Basis of Preparation and Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in USD under HKAS 34 and Appendix D2 of the Listing Rules, with no material impact from the newly adopted HKAS 21 amendment - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[13](index=13&type=chunk) - The amendment to HKAS 21, "Lack of Exchangeability," has no impact on the interim condensed consolidated financial information as the Group's transaction and functional currencies are exchangeable[15](index=15&type=chunk) [Operating Segment Information](index=8&type=section&id=Operating%20Segment%20Information) The Group operates as a single operating segment, as the chief operating decision-maker reviews overall performance and financial position on a consolidated basis - The Group has only a single operating segment, as the chief operating decision-maker (i.e., the executive directors of the Company) reviews the Group's overall results and financial position[16](index=16&type=chunk) [Revenue](index=8&type=section&id=Revenue) The Group's revenue primarily derives from contracts with customers, totaling $1,663.4 million in the first half of 2025, constituting the vast majority of total revenue Revenue Sources | Revenue Source | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 1,663,385 | 1,299,443 | | Other Rental Income | 1,104 | 1,078 | | Total | 1,664,489 | 1,300,521 | [Finance Costs](index=9&type=section&id=Finance%20Costs) The Group's finance costs, primarily from bank borrowings and lease liabilities, increased to $8.5 million in H1 2025, mainly due to higher interest on lease liabilities Finance Costs Breakdown | Finance Cost Item | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 3,288 | 3,180 | | Interest on Lease Liabilities | 5,097 | 4,107 | | Increase in Discounting of Provision for Restoration Costs | 81 | 58 | | Total Finance Costs | 8,466 | 7,345 | [Profit Before Tax](index=9&type=section&id=Profit%20Before%20Tax) The Group's profit before tax significantly increased, driven by revenue growth and improved gross margin, with a decrease in bunker fuel costs partially offset by higher other service costs Cost of Sales Components | Cost Item | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Bunker Fuel Costs Consumed | 150,190 | 158,762 | | Other Service Costs | 844,868 | 739,144 | | Total | 995,058 | 897,906 | | Depreciation of Property, Plant and Equipment | 2,276 | 2,043 | | Depreciation of Right-of-use Assets | 1,472 | 1,282 | | Net Impairment Loss on Trade Receivables | 516 | 8 | - A net loss of **$603 thousand** was recorded from the disposal of a joint venture in H1 2025, with no comparable item in H1 2024[19](index=19&type=chunk) [Income Tax](index=10&type=section&id=Income%20Tax) Income tax expense slightly increased to $10.2 million, reflecting the growth in taxable profit, with rates varying across mainland China, Hong Kong, and other jurisdictions Income Tax Expense by Region | Region | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Mainland China | 3,206 | 3,250 | | Hong Kong | 254 | 452 | | Other Countries/Regions | 6,699 | 5,830 | | Total Current Period Tax Expense | 10,159 | 9,532 | - Income tax expense attributable to joint ventures and associates increased to **$4,364 thousand**, up from the prior year[21](index=21&type=chunk) [Interim Dividends](index=10&type=section&id=Interim%20Dividends) The Board resolved to declare an interim dividend of HKD 1.30 per share (equivalent to $0.17), a substantial increase from HKD 0.72 in the prior period, totaling $447.1 million Interim Dividend Details | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interim Dividend Per Share (HKD) | 1.30 | 0.72 | | Interim Dividend Per Share (USD) | 0.17 | 0.09 | | Total Interim Dividends (thousand USD) | 447,118 | 247,264 | [Earnings Per Share Attributable to Owners of the Company](index=10&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic earnings per share attributable to owners of the Company reached $0.24, and diluted earnings per share were $0.23, both showing significant year-on-year growth, indicating enhanced profitability Earnings Per Share Calculation | Indicator | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company Used for Basic and Diluted EPS Calculation | 629,995 | 350,674 | | Weighted Average Number of Ordinary Shares Used for Basic EPS Calculation | 2,653,048,042 | 2,645,698,301 | | Weighted Average Number of Ordinary Shares Used for Diluted EPS Calculation | 2,691,188,536 | 2,683,158,629 | - Diluted earnings per share calculation considers the dilutive effect of shares held under share options and share award schemes[24](index=24&type=chunk)[25](index=25&type=chunk) [Trade Receivables](index=12&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables were $170.4 million, a slight decrease from year-end 2024, with the majority due within one month Trade Receivables Aging Analysis | Aging | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Within 1 Month | 134,718 | 147,346 | | 1 to 2 Months | 20,095 | 15,834 | | 2 to 3 Months | 7,797 | 6,883 | | Over 3 Months | 7,780 | 4,608 | | Total | 170,390 | 174,671 | [Trade Payables](index=12&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables increased to $281.6 million from year-end 2024, with the largest portion due within one month Trade Payables Aging Analysis | Aging | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Within 1 Month | 225,806 | 177,660 | | 1 to 2 Months | 20,963 | 23,260 | | 2 to 3 Months | 9,602 | 6,931 | | Over 3 Months | 25,258 | 25,829 | | Total | 281,629 | 233,680 | [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) [Overview and Business Review](index=13&type=section&id=Overview%20and%20Business%20Review) SITC International, a leading Asian shipping logistics group, expanded its service network to 82 trade routes and a fleet of 119 vessels with 185,787 TEU capacity in H1 2025, optimizing operations for global trade changes - The Group is one of Asia's leading shipping logistics groups, providing integrated transportation and logistics solutions, focusing on the Asian market[28](index=28&type=chunk)[29](index=29&type=chunk) Operational Highlights | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Trade Routes | 82 | 78 | | Number of Ports Covered | 82 | - | | Fleet Size (vessels) | 119 | - | | Total Capacity (TEU) | 185,787 | - | | Owned Vessels (vessels) | 101 | - | | Leased Vessels (vessels) | 18 | - | | Average Age of Vessels (years) | 9.4 | - | | Yard Area (square meters) | Approx. 2,100,000 | - | | Warehouse Area (square meters) | Approx. 180,000 | - | - Capital expenditure for H1 2025 was **$72.1 million**, with **$31.9 million** for container purchases and **$30.8 million** for container vessels[30](index=30&type=chunk) - The Group will optimize its unique operating model, focus on expanding its service network in Asia, increase route density, extend the sea-land integrated service value chain, and strengthen refined management to reduce costs and enhance efficiency[31](index=31&type=chunk) [Financial Performance Analysis](index=16&type=section&id=Financial%20Performance%20Analysis) This section details the Group's H1 2025 financial performance, including revenue, costs, profit, and expenses, highlighting key drivers of significant profitability improvement such as increased volume, freight rates, and asset disposal gains [Revenue Analysis](index=16&type=section&id=Revenue%20Analysis) Group revenue increased by 28.0% to $1,664.5 million, primarily driven by a 7.3% growth in container volume and a 22.8% increase in average freight rates (excluding slot exchange fees) Revenue Performance | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue (million USD) | 1,664.5 | 1,300.5 | +28.0% | | Container Volume (TEU) | 1,829,665 | 1,705,164 | +7.3% | | Average Freight Rate (USD/TEU) | 776.4 | 632.4 | +22.8% | Revenue Composition | Revenue Component | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Container Shipping and Extended Logistics Revenue | 1,512,689 | 1,160,241 | | Other Container Logistics Revenue | 150,696 | 139,202 | | Other Revenue | 1,104 | 1,078 | [Cost of Sales Analysis](index=16&type=section&id=Cost%20of%20Sales%20Analysis) Cost of sales increased by 10.8% to $995.1 million, mainly due to higher equipment and cargo transportation costs and container shipping vessel costs Cost of Sales Breakdown | Cost Item | H1 2025 (million USD) | H1 2024 (million USD) | YoY Change | | :--- | :--- | :--- | :--- | | Total Cost of Sales | 995.1 | 897.9 | +10.8% | | Equipment and Cargo Transportation Costs | 520.5 | 458.6 | +13.5% | | Container Shipping Vessel Costs | 151.9 | 122.1 | +24.4% | - Voyage costs slightly decreased from **$204.7 million** to **$198.7 million**[32](index=32&type=chunk) [Gross Profit and Gross Margin Analysis](index=16&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20Analysis) Gross profit surged by 66.3% to $669.4 million, with the gross margin improving from 31.0% to 40.2%, demonstrating effective revenue growth and cost control Gross Profit and Margin Performance | Indicator | H1 2025 (million USD) | H1 2024 (million USD) | YoY Change | | :--- | :--- | :--- | :--- | | Gross Profit | 669.4 | 402.6 | +66.3% | | Gross Margin | 40.2% | 31.0% | +9.2pp | [Other Income and Gains Analysis](index=17&type=section&id=Other%20Income%20and%20Gains%20Analysis) Net other income and gains (excluding bank interest and fair value gains on financial assets) increased to $18.0 million, primarily due to a significant rise in gains from the disposal of container vessels Other Income and Gains | Indicator | H1 2025 (million USD) | H1 2024 (million USD) | YoY Change | | :--- | :--- | :--- | :--- | | Net Other Income and Gains | 18.0 | 7.8 | +10.2 | | Gains on Disposal of Vessels | 13.8 | 3.4 | +10.4 | [Bank Interest and Investment Income Analysis](index=17&type=section&id=Bank%20Interest%20and%20Investment%20Income%20Analysis) Bank interest income, other investment income, and fair value gains on financial assets collectively increased to $19.8 million, mainly attributable to higher average deposit balances Bank Interest and Investment Income | Indicator | H1 2025 (million USD) | H1 2024 (million USD) | | :--- | :--- | :--- | | Bank Interest, Other Investment Income and Fair Value Gains on Financial Assets | 19.8 | 12.4 | - The increase is primarily attributable to higher average deposit balances compared to the previous year[38](index=38&type=chunk) [Administrative Expenses Analysis](index=17&type=section&id=Administrative%20Expenses%20Analysis) Administrative expenses increased by 6.2% to $67.8 million, primarily due to an overall rise in staff costs Administrative Expenses | Indicator | H1 2025 (million USD) | H1 2024 (million USD) | YoY Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 67.8 | 63.8 | +6.2% | - The increase in administrative expenses is primarily attributable to an overall increase in staff costs[39](index=39&type=chunk) [Other Expenses Net Analysis](index=17&type=section&id=Other%20Expenses%20Net%20Analysis) Net other expenses increased to $1.7 million, mainly due to impairment provisions for assets and losses on disposal of financial assets Other Expenses Net | Indicator | H1 2025 (million USD) | H1 2024 (million USD) | | :--- | :--- | :--- | | Other Expenses Net | 1.7 | 0.4 | - The increase is primarily attributable to impairment provisions for assets and losses on disposal of financial assets[40](index=40&type=chunk) [Finance Costs Analysis](index=18&type=section&id=Finance%20Costs%20Analysis) Finance costs increased to $8.5 million, primarily driven by higher interest on lease liabilities Finance Costs | Indicator | H1 2025 (million USD) | H1 2024 (million USD) | | :--- | :--- | :--- | | Finance Costs | 8.5 | 7.3 | - The increase in finance costs is primarily attributable to higher interest on lease liabilities[41](index=41&type=chunk) [Share of Profits of Joint Ventures and Associates Analysis](index=18&type=section&id=Share%20of%20Profits%20of%20Joint%20Ventures%20and%20Associates%20Analysis) Share of profits from joint ventures increased by 27.2% to $13.3 million, mainly due to higher profits from certain jointly controlled freight forwarding and yard companies, with associates' profits also rising to $1.0 million Share of Profits | Indicator | H1 2025 (million USD) | H1 2024 (million USD) | YoY Change | | :--- | :--- | :--- | :--- | | Share of Profits of Joint Ventures | 13.3 | 10.5 | +27.2% | | Share of Profits of Associates | 1.0 | 0.6 | +66.7% | [Profit Before Tax Analysis](index=18&type=section&id=Profit%20Before%20Tax%20Analysis) Profit before tax significantly increased to $643.6 million, reflecting the combined impact of the aforementioned revenue and cost factors Profit Before Tax | Indicator | H1 2025 (million USD) | H1 2024 (million USD) | | :--- | :--- | :--- | | Profit Before Tax | 643.6 | 362.4 | [Income Tax Expense Analysis](index=18&type=section&id=Income%20Tax%20Expense%20Analysis) Income tax expense increased to $10.2 million, primarily due to the rise in taxable profit Income Tax Expense | Indicator | H1 2025 (million USD) | H1 2024 (million USD) | | :--- | :--- | :--- | | Income Tax Expense | 10.2 | 9.5 | [Profit for the Period Analysis](index=18&type=section&id=Profit%20for%20the%20Period%20Analysis) Profit for the period substantially increased by $280.6 million to $633.4 million, demonstrating a significant enhancement in the Group's overall profitability Profit for the Period | Indicator | H1 2025 (million USD) | H1 2024 (million USD) | YoY Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 633.4 | 352.8 | +280.6 | [Liquidity, Financial and Capital Resources](index=19&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) The Group's total assets grew to $3,339.9 million, total liabilities decreased to $753.2 million, and the current ratio improved to 2.3, with a capital gearing ratio maintained at 0%, indicating strong liquidity and a robust financial position Liquidity and Financial Position | Indicator | June 30, 2025 (million USD) | December 31, 2024 (million USD) | YoY Change | | :--- | :--- | :--- | :--- | | Total Assets | 3,339.9 | 3,198.1 | +4.4% | | Total Liabilities | 753.2 | 776.6 | -3.0% | | Cash and Cash Equivalents | 799.0 | 744.5 | +7.3% | | Secured Interest-bearing Bank Loans | 58.6 | - | - | | Current Ratio | 2.3 | 1.9 | +0.4 | | Capital Gearing Ratio | 0% | 0.9% | -0.9pp | - The Group does not hold foreign exchange hedging instruments and manages foreign exchange risk by closely monitoring currency fluctuations[47](index=47&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[49](index=49&type=chunk) [Pledged Assets](index=20&type=section&id=Pledged%20Assets) The Group's bank loans are secured by vessels with a net book value of approximately $120.3 million and land mortgages of $10.4 million Pledged Assets | Pledged Asset | June 30, 2025 (million USD) | December 31, 2024 (million USD) | | :--- | :--- | :--- | | Vessels | 120.3 | 222.3 | | Land | 10.4 | 9.9 | [Employees and Remuneration Policy](index=20&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 2,252 full-time staff, with employee costs rising to $103.1 million, and adopted a new share scheme to incentivize staff based on performance and market levels Employee Information | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Full-time Employees | 2,252 | 2,132 | | Employee Costs (million USD) | 103.1 | 97.4 | - The Group adopted a new share scheme on April 26, 2024, to provide incentives to eligible participants and promote business development[51](index=51&type=chunk) [Material Investments, Acquisitions and Disposals](index=20&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) In H1 2025, the Group took delivery of two new container vessels and exercised options to build two more for a total of $58.0 million, with no other material investment, acquisition, or disposal activities - During the six months ended June 30, 2025, **two new container vessels** were delivered[52](index=52&type=chunk) - SITC Shipowner Company Limited exercised options to build **two container vessels** for a total consideration of **$58.0 million**[52](index=52&type=chunk) [Future Plans for Material Investments or Capital Assets](index=21&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The Company plans to continue purchasing container vessels and containers and investing in logistics projects, expecting internal financial resources and bank borrowings to meet funding requirements - The Company will continue to purchase container vessels and containers and invest in logistics projects at appropriate times[53](index=53&type=chunk) - The Company expects its internal financial resources and bank borrowings to be sufficient to meet the required funding needs[53](index=53&type=chunk) [Events After the Reporting Period](index=21&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, SITC Shipowner Company Limited, a wholly-owned subsidiary, entered into shipbuilding contracts on August 2, 2025, for four 2,700 TEU container vessels, with a maximum total consideration of $152,720,000 - On August 2, 2025, SITC Shipowner Company Limited, a wholly-owned subsidiary of the Company, entered into shipbuilding contracts for **four 2,700 TEU container vessels**, with a maximum total consideration of **$152,720,000**[54](index=54&type=chunk) [Interim Dividends](index=21&type=section&id=Interim%20Dividends) The Board resolved to declare an interim dividend of HKD 1.30 per share (equivalent to $0.17) to shareholders on record as of September 4, 2025, payable on or before September 16, 2025 - The Board resolved to declare an interim dividend of **HKD 1.30 per share** (equivalent to **$0.17**) for the six months ended June 30, 2025, to shareholders on record at the close of business on Thursday, September 4, 2025[56](index=56&type=chunk) - The dividend is expected to be paid on or before Tuesday, September 16, 2025[56](index=56&type=chunk) [Closure of Register of Members](index=22&type=section&id=Closure%20of%20Register%20of%20Members) To determine eligibility for the interim dividend, the Company will suspend its register of members from September 1 to September 4, 2025, requiring shareholders to complete transfer registrations by 4:30 p.m. on August 29, 2025 - The Company will suspend its register of members from **Monday, September 1, 2025, to Thursday, September 4, 2025** (both days inclusive)[58](index=58&type=chunk) - To be eligible for the interim dividend, shareholders must lodge all transfer documents with the relevant share certificates at the Company's Hong Kong share registrar by **4:30 p.m. on Friday, August 29, 2025**[58](index=58&type=chunk) [Other Information and Corporate Governance](index=22&type=section&id=Other%20Information%20and%20Corporate%20Governance) [Share Transactions](index=22&type=section&id=Share%20Transactions) During the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, redeemed, or sold any of its listed securities, and no treasury shares were held - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[59](index=59&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[59](index=59&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The Company is committed to maintaining stringent corporate governance practices and confirmed compliance with the Corporate Governance Code in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Company has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, with no deviations during the six months ended June 30, 2025[60](index=60&type=chunk) [Model Code for Securities Transactions by Directors](index=22&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Board adopted the Model Code for Securities Transactions by Directors of Listed Issuers from Appendix C3 of the Listing Rules, establishing a company code no less stringent, with all directors confirming compliance - The Board has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules and has established a company code no less stringent than the Model Code[61](index=61&type=chunk) - Following specific inquiries with all Directors, they have confirmed compliance with the required standards under the Model Code and the Company Code for the six months ended June 30, 2025[61](index=61&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the Group's accounting principles, internal controls, and financial reporting matters, including the interim results - The Company's Audit Committee comprises three independent non-executive directors: Dr. Liu Ka Ying, Eileen (Chairperson), Mr. Tse Siu Yui, and Dr. Hu Mantian[62](index=62&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed internal controls and financial reporting matters, including the unaudited interim results for the six months ended June 30, 2025[62](index=62&type=chunk) [Publication of Results](index=23&type=section&id=Publication%20of%20Results) This interim results announcement is published on the websites of Hong Kong Exchanges and Clearing Limited and the Company, with the interim report to be available on these sites in due course - This interim results announcement is published on the websites of Hong Kong Exchanges and Clearing Limited (http://www.hkexnews.hk) and the Company (http://www.sitc.com)[63](index=63&type=chunk) [Board Information](index=23&type=section&id=Board%20Information) This announcement is issued by Mr. Yang Xianxiang, Chairman of the Board, on behalf of the Board, which comprises four executive, one non-executive, and three independent non-executive directors as of the announcement date - This announcement is issued by Mr. Yang Xianxiang, Chairman of the Board, on behalf of the Board[64](index=64&type=chunk) - As of the date of this announcement, the Company's executive directors are Mr. Yang Xianxiang, Mr. Xue Mingyuan, Mr. Liu Kecheng, and Mr. Lai Zhiyong; the non-executive director is Ms. Yang Xin; and the independent non-executive directors are Mr. Tse Siu Yui, Dr. Liu Ka Ying, Eileen, and Dr. Hu Mantian[65](index=65&type=chunk)

Financial Highlights [Financial Indicators](index=4&type=section&id=Financial%20Indicators) For the six months ended June 30, 2025, the company's revenue grew 32.0% to **$7.52 billion**, but profitability declined significantly, with adjusted EBITDA down 4.8% and a net loss of **$87 million** Key Financial Indicators | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | 7,520 million USD | 5,695 million USD | | **Adjusted EBITDA** | 748 million USD | 786 million USD | | **Adjusted EBITDA Margin** | 9.9% | 13.8% | | **Net (Loss)/Profit** | (87) million USD | 565 million USD | | **Basic (Loss)/Earnings Per Share** | (0.0057) USD | 0.0372 USD | | **Net Debt (Period-end)** | 7,378 million USD | 6,415 million USD (as of 2024 year-end) | Chairman's Letter [Chairman's Letter](index=5&type=section&id=Chairman's%20Letter) Chairman Bernard Zonneveld highlights a challenging H1 2025 for the global economy and aluminum industry, with trade wars and rising debt, aluminum price gains offset by Ruble appreciation, and the company focusing on low-carbon metals and 2050 carbon neutrality - Macroeconomic environment is severe, with new trade wars and countermeasures increasing market uncertainty and eroding corporate confidence[6](index=6&type=chunk) - Despite rising aluminum prices in H1, the positive impact was largely offset by a 25% appreciation of the Ruble during the same period[6](index=6&type=chunk) - The company is expanding its low-carbon metal supply and updating its climate strategy, aiming for decarbonization and carbon neutrality by 2050[7](index=7&type=chunk) General Director's Letter [General Director's Letter](index=6&type=section&id=General%20Director's%20Letter) General Director Evgenii Nikitin emphasizes navigating global economic volatility, geopolitical conflicts, and domestic constraints, while pursuing long-term goals including environmental upgrades, inert anode technology, increased recycled metal use, and digital integration - The company announced an aluminum capacity optimization program in late November 2024 to address soaring alumina prices and macroeconomic risks[9](index=9&type=chunk) - The company is the only one globally producing commercial high-quality aluminum using inert anode technology under industrial conditions[9](index=9&type=chunk) - The company demonstrates environmental commitment by increasing recycled metal use and expanding additive manufacturing and fertilizer production lines with by-products[9](index=9&type=chunk) Management Discussion and Analysis [Industry Trends and Business Environment](index=7&type=section&id=Industry%20Trends%20and%20Business%20Environment) In H1 2025, the global aluminum market experienced significant volatility due to US trade policies and supply chain disruptions, with LME aluminum prices averaging **$2,593 per tonne**, global primary aluminum demand growing 3.6% driven by China, and a structural supply deficit of **1.1 million tonnes** in China contrasting with a **1 million tonne** surplus outside China - In H1 2025, LME aluminum prices averaged **$2,593 per tonne**, an increase of **$76.5 per tonne**[15](index=15&type=chunk) - Global primary aluminum demand increased by 3.6% year-on-year to **36.7 million tonnes**, with China's consumption rising 4.5% to **22.9 million tonnes**, serving as the main growth engine[15](index=15&type=chunk) - The market landscape shows divergence: a persistent supply surplus of approximately **1 million tonnes** outside China, while China continues to face a structural supply deficit of approximately **1.1 million tonnes**[15](index=15&type=chunk) [Financial and Operating Performance](index=9&type=section&id=Financial%20and%20Operating%20Performance) In H1 2025, total revenue grew 32.0% to **$7.52 billion** driven by increased sales volume and LME aluminum prices, but sales costs rose 39.3%, reducing gross margin from 23.0% to 18.8%, with adjusted EBITDA declining 4.8% to **$748 million** and a net loss of **$87 million** due to exchange losses and higher interest expenses [Key Operating Data](index=9&type=section&id=Key%20Operating%20Data) In H1 2025, primary aluminum production decreased 1.7% to **1,924 thousand tonnes**, while alumina production increased 13.5% to **3,400 thousand tonnes**, and bauxite production rose 21.8% to **9,668 thousand tonnes**, with primary aluminum and alloy sales up 21.7% to **2,286 thousand tonnes**, and aluminum segment cost per tonne increasing from **$1,975** to **$2,265** Key Operating Data (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | **Production (thousand tonnes)** | | | | Primary Aluminum | 1,924 | 1,957 | | Alumina | 3,400 | 2,995 | | Bauxite (wet) | 9,668 | 7,940 | | **Sales Volume (thousand tonnes)** | | | | Sales of Primary Aluminum and Alloys | 2,286 | 1,879 | | **Price and Cost (USD per tonne)** | | | | Aluminum Segment Cost per Tonne | 2,265 | 1,975 | | LME Aluminum Price per Tonne | 2,538 | 2,360 | [Production Analysis](index=10&type=section&id=Production%20Analysis) In H1 2025, primary aluminum production decreased 1.7% due to capacity optimization, while alumina production increased 13.5% driven by the acquisition of a 30% stake in Wen Feng New Materials, and bauxite production rose 21.8% due to increased third-party sales, with aluminum foil and packaging materials production declining 5.0% - Primary aluminum production decreased by 1.7% to **1,924 thousand tonnes**, primarily due to the capacity optimization program announced in November 2024[24](index=24&type=chunk) - Alumina production increased by 13.5% to **3.4 million tonnes**, mainly due to the acquisition of a 30% stake in Chinese company Wen Feng New Materials[25](index=25&type=chunk) - Bauxite production increased by 21.8% to **9.668 million tonnes**, primarily achieved through partial sales of CBK and Dian Dian bauxite to third-party customers[27](index=27&type=chunk) [Revenue Analysis](index=12&type=section&id=Revenue%20Analysis) Total revenue increased 32.0% to **$7.52 billion**, with primary aluminum and alloy sales revenue up 29.8% to **$5.966 billion** driven by volume and price, alumina sales revenue growing 97.4% from both volume and price, and Asia's revenue share significantly increasing from 42% to 53% Revenue Composition (For the six months ended June 30) | Product Category | 2025 Revenue (million USD) | 2024 Revenue (million USD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales of Primary Aluminum and Alloys | 5,966 | 4,597 | +29.8% | | Sales of Alumina | 377 | 191 | +97.4% | | Sales of Foil and Other Aluminum Products | 376 | 342 | +9.9% | | Other Revenue | 801 | 565 | +41.8% | | **Total Revenue** | **7,520** | **5,695** | **+32.0%** | - By geographical region, Asia's revenue share increased significantly from 42% to 53%, while Europe's share decreased from 22% to 16%[40](index=40&type=chunk) [Cost of Sales Analysis](index=14&type=section&id=Cost%20of%20Sales%20Analysis) Total cost of sales increased 39.3% from **$4.385 billion** to **$6.110 billion**, primarily due to a 21.7% increase in primary aluminum sales volume and higher prices for alumina, other raw materials, average electricity, and transportation tariffs, with energy, alumina, and other raw materials being the largest cost components - Total cost of sales increased by 39.3% to **$6,110 million**, growing faster than revenue, primarily due to increased sales volume and higher prices for raw materials and energy[41](index=41&type=chunk) [Operating Performance and Adjusted EBITDA](index=15&type=section&id=Operating%20Performance%20and%20Adjusted%20EBITDA) Due to faster cost growth than revenue, the company's gross margin decreased from 23.0% to 18.8%, operating performance declined 42.7% to **$252 million**, and adjusted EBITDA decreased 4.8% to **$748 million**, with the adjusted EBITDA margin falling from 13.8% to 9.9%, reflecting deteriorating profitability Adjusted EBITDA Reconciliation (For the six months ended June 30) | Item (million USD) | 2025 | 2024 | | :--- | :--- | :--- | | Operating Performance | 252 | 440 | | Add: Amortization and Depreciation | 327 | 249 | | Add: Impairment of Non-current Assets | 166 | 96 | | Add: Loss on Disposal of Property, Plant and Equipment | 3 | 1 | | **Adjusted EBITDA** | **748** | **786** | [Loss/Profit for the Period](index=16&type=section&id=Loss%2FProfit%20for%20the%20Period) Influenced by a significant increase in finance expenses, particularly **$181 million** in exchange losses, and higher income tax expenses, the company shifted from a pre-tax profit of **$729 million** to **$125 million**, ultimately reporting a net loss of **$87 million** for the period, compared to a profit of **$565 million** in the prior year, with adjusted recurring net loss at **$16 million** versus a **$620 million** profit - Finance expenses increased by 231.8% year-on-year to **$584 million**, primarily due to higher interest expenses and an exchange loss of **$181 million** (compared to an exchange gain of **$139 million** in the prior period)[45](index=45&type=chunk)[46](index=46&type=chunk) - The company recorded a net loss of **$87 million** for the period, compared to a profit of **$565 million** in the corresponding period of 2024[51](index=51&type=chunk) Adjusted and Recurring Net Profit Reconciliation (For the six months ended June 30) | Item (million USD) | 2025 | 2024 | | :--- | :--- | :--- | | Net (Loss)/Profit for the Period | (87) | 565 | | **Adjusted Net (Loss)/Profit** | **(194)** | **446** | | **Recurring Net (Loss)/Profit** | **(16)** | **620** | [Segment Reporting](index=19&type=section&id=Segment%20Reporting) Among core segments, the Aluminum segment's profitability significantly declined, with its EBITDA margin dropping from 19.0% to 13.1%, while the Alumina segment showed improvement, increasing its EBITDA margin from 0.6% to 3.8% Core Segment Performance (For the six months ended June 30) | Segment | Indicator | 2025 | 2024 | | :--- | :--- | :--- | :--- | | **Aluminum** | Segment EBITDA (million USD) | 725 | 853 | | | Segment EBITDA Margin | 13.1% | 19.0% | | **Alumina** | Segment EBITDA (million USD) | 44 | 5 | | | Segment EBITDA Margin | 3.8% | 0.6% | [Working Capital](index=20&type=section&id=Working%20Capital) As of June 30, 2025, the Group's working capital slightly decreased to **$4.344 billion** from **$4.586 billion** at year-end 2024, with a significant increase in current liabilities leading to a **$582 million** net current liability, compared to a **$1.602 billion** net current asset at the prior year-end - The Group recorded a net current liability of **$582 million** as of June 30, 2025, compared to net current assets of **$1.602 billion** as of December 31, 2024[57](index=57&type=chunk) [Capital Expenditure](index=21&type=section&id=Capital%20Expenditure) In H1 2025, total capital expenditure significantly increased to **$707 million** from **$516 million** in the prior year, primarily allocated to maintaining existing production facilities, including potline modernization and re-equipment Capital Expenditure Breakdown (For the six months ended June 30) | Category (million USD) | 2025 | 2024 | | :--- | :--- | :--- | | Development Capital Expenditure | 297 | 207 | | Maintenance | 410 | 309 | | **Total Capital Expenditure** | **707** | **516** | [Loans and Borrowings](index=22&type=section&id=Loans%20and%20Borrowings) As of June 30, 2025, the Group's loans and borrowings had a face value of **$4.166 billion**, in addition to **$4.321 billion** in bonds, with the debt portfolio primarily comprising Russian bank loans and RMB and Ruble bonds issued on the Moscow Exchange - As of June 30, 2025, the Group's loans and borrowings had a face value of **$4.166 billion**, excluding **$4.321 billion** in bonds[61](index=61&type=chunk) [Key Events During the Reporting Period](index=23&type=section&id=Key%20Events%20During%20the%20Reporting%20Period) In H1 2025, the company engaged in frequent financing activities, including issuing multiple tranches of Ruble and RMB-denominated bonds, redeeming some matured RMB bonds, and using cross-currency interest rate swaps to convert Ruble bond exposure to RMB or USD, with no dividends recommended or approved by the Board - The Board did not recommend or approve the payment of dividends for the six months ended June 30, 2025[65](index=65&type=chunk) - The company conducted multiple bond issuances and redemptions during the period, involving Ruble and RMB, and used cross-currency swaps to manage currency risk[66](index=66&type=chunk) [Cash Flow](index=24&type=section&id=Cash%20Flow) In H1 2025, operating cash flow significantly improved to **$888 million** from a **$403 million** net outflow in the prior year, while net cash used in investing activities expanded from **$232 million** to **$528 million**, and net cash used in financing activities substantially increased from **$104 million** to **$799 million** due to debt repayments, with cash and cash equivalents decreasing to **$1.123 billion** at period-end Cash Flow Statement Summary (For the six months ended June 30) | Item (million USD) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from/(used in) Operating Activities | 888 | (403) | | Net Cash used in Investing Activities | (528) | (232) | | Net Cash used in Financing Activities | (799) | (104) | | **Net Change in Cash and Cash Equivalents** | **(439)** | **(739)** | [Financial Ratios](index=25&type=section&id=Financial%20Ratios) The company's financial ratios indicate pressure, with the debt-to-asset ratio stable at 35.4%, but return on equity turning negative to **-0.7%**, and the interest coverage ratio sharply declining from 9.0x to 1.4x, signaling significantly weakened debt servicing capability - The interest coverage ratio (EBIT/Net Interest) sharply decreased from 9.0x in the prior period to **1.4x**[72](index=72&type=chunk) - Return on equity (Net Profit/Total Equity) decreased from 4.7% to **-0.7%**[71](index=71&type=chunk) [Business Risks](index=29&type=section&id=Business%20Risks) The company faces multiple business risks, including demand uncertainty from global commodity market volatility, reliance on uninterrupted power supply, transportation service disruptions, foreign exchange fluctuations, labor issues, dependence on third-party raw material suppliers (especially in geopolitical contexts), equipment failure risks, HSE risks, and multi-jurisdictional regulatory and political risks - Key business risks identified by the company include: demand volatility, power supply interruptions, reliance on transportation, foreign exchange fluctuations, labor issues, supply chain risks (especially suspension of Ukrainian facilities and Australian export ban), equipment failures, and geopolitical risks[91](index=91&type=chunk)[95](index=95&type=chunk) Independent Auditor's Report [Independent Auditor's Report](index=31&type=section&id=Independent%20Auditor's%20Report) TSATR-Audit Services Limited Liability Company issued an unmodified review conclusion on the company's interim condensed consolidated financial statements for the six months ended June 30, 2025, but included an 'Emphasis of Matter' paragraph highlighting significant uncertainties related to geopolitical tensions, sanctions, and market volatility that may cast significant doubt on the Group's ability to continue as a going concern - The auditor issued an unmodified conclusion on the interim financial statements[100](index=100&type=chunk) - The report includes an "Emphasis of Matter" paragraph, noting significant uncertainties that may cast substantial doubt on the Group's ability to continue as a going concern, primarily stemming from geopolitical tensions, sanctions, and market volatility[101](index=101&type=chunk) Interim Condensed Consolidated Financial Statements [Interim Condensed Consolidated Statement of Profit or Loss](index=34&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company reported revenue of **$7.52 billion**, up 32% year-on-year, but operating performance decreased from **$440 million** to **$252 million** due to increased cost of sales and expenses, resulting in a net loss of **$87 million** for the period compared to a profit of **$565 million** in the prior year Interim Condensed Consolidated Statement of Profit or Loss Summary (million USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 7,520 | 5,695 | | Gross Profit | 1,410 | 1,310 | | Operating Performance | 252 | 440 | | Profit Before Tax | 125 | 729 | | **Net (Loss)/Profit for the Period** | **(87)** | **565** | [Interim Condensed Consolidated Statement of Financial Position](index=36&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to **$24.053 billion** from **$22.201 billion** at year-end 2024, primarily due to higher equity in associates and joint ventures, with total liabilities rising from **$10.985 billion** to **$11.949 billion**, total equity increasing from **$11.216 billion** to **$12.104 billion**, and current liabilities exceeding current assets by **$582 million**, resulting in a net current liability Interim Condensed Consolidated Statement of Financial Position Summary (million USD) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **24,053** | **22,201** | | Non-current Assets | 15,818 | 13,840 | | Current Assets | 8,235 | 8,361 | | **Total Equity and Liabilities** | **24,053** | **22,201** | | Total Equity | 12,104 | 11,216 | | Total Liabilities | 11,949 | 10,985 | | **Net Current (Liabilities)/Assets** | **(582)** | **1,602** | [Interim Condensed Consolidated Statement of Cash Flows](index=39&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2025, net cash from operating activities significantly improved to **$888 million** from a **$403 million** net outflow in the prior year, while net cash used in investing activities expanded from **$232 million** to **$528 million**, and net cash used in financing activities substantially increased from **$104 million** to **$799 million** due to debt repayments, with cash and cash equivalents decreasing to **$1.123 billion** at period-end Interim Condensed Consolidated Statement of Cash Flows Summary (million USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash from/(used in) Operating Activities | 888 | (403) | | Net Cash used in Investing Activities | (528) | (232) | | Net Cash used in Financing Activities | (799) | (104) | | **Net Decrease in Cash and Cash Equivalents** | **(439)** | **(739)** | [Summary of Notes to the Financial Statements](index=41&type=section&id=Summary%20of%20Notes%20to%20the%20Financial%20Statements) Notes to the financial statements provide detailed explanations of the company's financial position and operating performance, highlighting significant uncertainties regarding going concern due to geopolitical instability and sanctions, investments in Norilsk Nickel and Hebei Wen Feng New Materials, detailed loan and bond structures with frequent issuance and redemption activities, **$854 million** in capital commitments, and post-reporting period events including the acquisition of an Indian alumina refinery stake and new RMB loans - Note 1(f) Going Concern: Management indicates that ongoing geopolitical instability, sanctions, financing availability, and market volatility create significant uncertainty regarding the Group's ability to meet its financial obligations on time and continue as a going concern[132](index=132&type=chunk) - Note 10 Investments in Joint Ventures: The Group completed the acquisition of a 30% stake in Hebei Wen Feng New Materials Co Ltd, a Chinese alumina producer, in April 2024 for a final consideration of **$316 million**[160](index=160&type=chunk) - Note 18 Events After the Reporting Date: In July 2025, the Group completed the first stage of acquiring a 26% stake in Pioneer Aluminium Industries Limited in India for **$243.75 million** and secured new loans totaling **9.3 billion RMB**[202](index=202&type=chunk) Corporate Governance and Shareholder Information [Directors' and Major Shareholders' Interests](index=71&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) The report discloses changes in Board members, including the retirement of two non-executive directors and the appointment of four new directors, with EN+ Group holding 56.88% and SUAL Partners 25.72% as major shareholders, noting that Oleg Deripaska's effective shareholding is capped at 25.57% - On June 26, 2025, two non-executive directors retired, and two new non-executive directors and two new independent non-executive directors were appointed[207](index=207&type=chunk) Major Shareholder Holdings (As of June 30, 2025) | Shareholder Name | Capacity | Shareholding Percentage | | :--- | :--- | :--- | | Oleg Deripaska (via En+) | Indirectly held | 56.88% (nominal) | | SUAL Partners | Beneficial owner | 25.72% | - The report clarifies that Mr. Oleg Deripaska's effective shareholding in the company cannot exceed **25.57%** due to restrictions on his voting rights and equity in the controlling company En+[214](index=214&type=chunk) [Corporate Governance Practices](index=74&type=section&id=Corporate%20Governance%20Practices) The company adheres to international and Hong Kong corporate governance standards, largely complying with the HKEX Corporate Governance Code during the review period, though some directors missed extraordinary general meetings due to business conflicts, and the company has adopted and confirmed compliance with a stricter code for directors' securities transactions - The company has complied with most code provisions of the HKEX Corporate Governance Code during the review period[223](index=223&type=chunk) - The report discloses that some non-executive and independent non-executive directors were unable to attend the extraordinary general meetings held during the period due to business scheduling conflicts[225](index=225&type=chunk)

年度半年報 管理層討論與分析 截至2025年6月30日止三及六個月有關財務狀況及經營業績的管理層討論與分析。 （以美元列值，惟另有指明除外） | 前瞻性陳述 | 1 | | --- | --- | | 本公司 | 2 | | 概覽 | 2 | | 表現摘要 | 2 | | 前景 | 3 | | 經營業績 | 5 | | 節選季度財務數據 | 5 | | 節選季度生產數據及分析 | 5 | | 季度數據回顧 | 7 | | 非國際財務報告準則指標 | 9 | | 礦物資產 | 11 | | 長山壕礦 | 11 | | 甲瑪礦區 | 13 | | 流動資金及資金來源 | 17 | | 現金流 | 18 | | 經營現金流 | 19 | | 投資現金流 | 19 | | 融資現金流 | 19 | | 產生的開支 | 19 | | 產權比率 | 19 | | 附屬公司、聯營企業與合資企業的重大投資、收購及處置， | | | 以及重大固定資產投資計劃 | 20 | | 資產抵押 | 20 | | 外匯匯率波動及相關避險交易影響 | 20 | | 承諾 | 20 | | 關聯方交易 | 21 | | 建議交易 | 22 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 CHINA GOLD INTERNATIONAL RESOURCES CORP. LTD. 管理層討論與分析 截至2025年6月30日止三及六個月有關財務狀況及經營業績的管理層討論與分析。 （以美元列值，惟另有指明除外） 中 國 黃 金 國 際 資 源 有 限 公 司 （ 根 據 加 拿 大 英 屬 哥 倫 比 亞 法 例 成 立 的 有 限 公 司 ） （香港股份代號：2099） （多倫多股份代號：CGG) 截至2025年6月30日止六個月 業績公告 財務摘要 | | 2025年 | 2024年 | | --- | --- | --- | | | 截至6月30日止六個月 | | | | 千美元 | 千美元 | | 銷售收入 | 580,365 | 208,498 | | 淨溢利（虧損） | 202,322 | (30,892) | | 每股基本盈利（虧損）（仙） | 50.53 | (7.99) | | ...

[Performance Overview & Management Commentary](index=2&type=section&id=Performance%20Overview%20%26%20Management%20Commentary) [Q2 2025 Business Highlights](index=2&type=section&id=Q2%202025%20Business%20Highlights) In Q2 2025, the company achieved year-over-year growth in user base and outstanding loan balance, with 41.4% of total facilitated loans under light-capital models and a 90-day+ delinquency rate of 1.97% Q2 2025 Key Operating Metrics | Metric | Q2 2025 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Total Facilitated and Originated Loan Volume | RMB 84.61 billion | +16.1% | -4.8% | | - Light-Capital/ICE/Tech Solution Share | 41.4% | - | - | | Total Outstanding Loan Balance at Period End | RMB 140.08 billion | +13.4% | -0.1% | | - Light-Capital/ICE/Tech Solution Share | Approx. 51% | - | - | | Cumulative Approved Credit Line Users | 60.2 million | +12.3% | - | | Cumulative Successful Borrower Withdrawals | 36.8 million | +14.9% | - | | 90-Day+ Delinquency Rate | 1.97% | - | - | [Q2 2025 Financial Highlights](index=3&type=section&id=Q2%202025%20Financial%20Highlights) The company achieved robust financial performance in Q2 2025, with total net revenue reaching **RMB 5.22 billion** and Non-GAAP net profit at **RMB 1.85 billion**, demonstrating sustained profitability Q2 2025 Key Financial Data | Metric | Amount (RMB) | Amount (USD) | | :--- | :--- | :--- | | Total Net Revenue | 5.216 billion | 0.728 billion | | Net Profit | 1.731 billion | 0.242 billion | | Non-GAAP Net Profit | 1.849 billion | 0.258 billion | | Diluted Net Earnings Per ADS | 12.76 | 1.78 | | Diluted Non-GAAP Net Earnings Per ADS | 13.63 | 1.90 | [Management Commentary](index=3&type=section&id=Management%20Commentary) Management highlighted the company's resilient operations amidst macroeconomic uncertainties and regulatory changes, achieved by tightening risk controls, optimizing business structure with **51%** light-asset model share, and diversifying customer acquisition channels, while prudently increasing provisions to near historical highs - CEO Wu Haisheng noted that in response to economic uncertainties and regulatory changes, the company proactively tightened risk control standards and adjusted its business structure, with the outstanding loan balance from light-asset models, ICE, and comprehensive technology solutions reaching approximately **51%**[7](index=7&type=chunk) - CFO Xu Zuoli emphasized that despite the volatile macroeconomic environment, the company achieved robust financial performance and prudently assessed risks, with new provisions in Q2 approaching historical highs[7](index=7&type=chunk) - CRO Zheng Yan added that influenced by macroeconomic challenges, overall market risk levels fluctuated, with the first-day delinquency rate reaching **5.1%**, prompting the company to tighten risk controls and potentially implement further measures to mitigate potential risks[7](index=7&type=chunk) [Financial Performance Analysis](index=4&type=section&id=Financial%20Performance%20Analysis) [Operating Results](index=4&type=section&id=Operating%20Results) In Q2 2025, total net revenue grew **25.4%** to **RMB 5.22 billion**, driven by credit-driven and platform services, while operating costs and expenses significantly increased **41.6%** to **RMB 3.08 billion**, resulting in operating income of **RMB 2.14 billion**, up **7.6%** year-over-year [Net Revenue](index=4&type=section&id=Net%20Revenue) Total net revenue reached **RMB 5.22 billion**, a **25.4%** year-over-year increase, with credit-driven service net revenue at **RMB 3.57 billion** (up **22.4%**) and platform service net revenue at **RMB 1.65 billion** (up **32.3%**), driven by increased financing income and referral service fees respectively Q2 2025 Net Revenue Composition (RMB million) | Revenue Item | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Net Revenue** | **5,215.9** | **4,160.1** | **+25.4%** | | **Credit-Driven Service Net Revenue** | **3,565.5** | **2,912.2** | **+22.4%** | | - Financing Income | 2,205.0 | 1,690.1 | +30.5% | | - Release of Guarantee Liabilities Income | 805.3 | 972.6 | -17.2% | | **Platform Service Net Revenue** | **1,650.3** | **1,247.9** | **+32.3%** | | - Loan Facilitation and Service Fees - Light-Capital | 326.8 | 524.4 | -37.7% | | - Referral Service Fees | 986.4 | 623.5 | +58.2% | [Operating Costs and Expenses](index=5&type=section&id=Operating%20Costs%20and%20Expenses) Total operating costs and expenses increased **41.6%** to **RMB 3.08 billion**, primarily driven by a rise in sales and marketing expenses to **RMB 663 million** due to increased investment in embedded finance channels and information flow advertising, and a significant increase in contingent liability provisions to **RMB 398 million** due to higher heavy-capital loan volumes and risk assessment adjustments Q2 2025 Operating Costs and Expenses Composition (RMB million) | Cost Item | Q2 2025 | Q2 2024 | YoY Change Reason | | :--- | :--- | :--- | :--- | | **Total** | **3,079.7** | **2,175.1** | **-** | | Facilitation, Origination and Servicing Expenses | 781.0 | 722.2 | Increase in total loan volume | | Sales and Marketing Expenses | 662.7 | 366.4 | Increased investment in embedded finance channels and information flow advertising | | Provision for Loans Receivable | 773.8 | 849.5 | Reversal of prior provisions, partially offset by increase in on-balance sheet loans | | Provision for Contingent Liabilities | 397.6 | (213.3) | Increase in heavy-capital loan facilitation volume and risk assessment adjustments | [Profitability and EPS](index=6&type=section&id=Profitability%20and%20EPS) In Q2 2025, the company achieved operating income of **RMB 2.14 billion**, net profit of **RMB 1.73 billion** (up **25.7%** YoY), and Non-GAAP net profit of **RMB 1.85 billion** (up **30.8%** YoY), with diluted net earnings per ADS at **RMB 12.76** Q2 2025 Profitability Metrics (RMB million) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Income | 2,136.2 | 1,985.0 | +7.6% | | Non-GAAP Operating Income | 2,254.7 | 2,021.9 | +11.5% | | Net Profit | 1,730.5 | 1,376.5 | +25.7% | | Non-GAAP Net Profit | 1,849.0 | 1,413.4 | +30.8% | | Diluted Net Earnings Per ADS (RMB) | 12.76 | 8.92 | +43.0% | [Asset Quality](index=7&type=section&id=Asset%20Quality) The report presents asset quality performance of facilitated loans across different periods through 30-day+ and 180-day+ delinquency rate charts (Vintage Curves), which are key tools for assessing credit business risk trends - The report provides quarterly historical loan 30-day+ and 180-day+ delinquency rate charts to track the asset quality performance of loans originated in different periods[22](index=22&type=chunk)[23](index=23&type=chunk)[26](index=26&type=chunk) [Shareholder Returns & Business Outlook](index=7&type=section&id=Shareholder%20Returns%20%26%20Business%20Outlook) [Dividends and Share Repurchase](index=7&type=section&id=Dividends%20and%20Share%20Repurchase) The company declared a H1 2025 dividend of **USD 0.76** per ADS and actively executed its share repurchase program, having repurchased approximately **USD 277 million** in ADS under the 2025 plan as of August 14, 2025 - The Board approved a H1 2025 dividend of **USD 0.38** per Class A ordinary share or **USD 0.76** per ADS, with the record date set for September 8, 2025[25](index=25&type=chunk) - As of August 14, 2025, the company repurchased approximately **7.1 million** ADS at an average price of **USD 38.9/ADS**, totaling approximately **USD 277 million**, under its **USD 450 million** 2025 share repurchase program[27](index=27&type=chunk) [Business Outlook](index=8&type=section&id=Business%20Outlook) Given ongoing macroeconomic uncertainties, the company maintains a cautious outlook for Q3 2025, projecting net profit between **RMB 1.52 billion** and **RMB 1.72 billion**, and Non-GAAP net profit between **RMB 1.60 billion** and **RMB 1.80 billion**, representing a **2% to 13%** year-over-year decrease Q3 2025 Performance Guidance | Metric | Forecast Range (RMB billion) | YoY Change | | :--- | :--- | :--- | | Net Profit | 1.52 - 1.72 billion | -13% to -2% | | Non-GAAP Net Profit | 1.60 - 1.80 billion | - | [Financial Statements](index=11&type=section&id=Financial%20Statements) [Unaudited Condensed Consolidated Balance Sheets](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets reached **RMB 59.75 billion**, up **24.1%** from year-end 2024, primarily driven by increased net loans receivable, with total liabilities at **RMB 35.65 billion** and total equity at **RMB 24.11 billion**, indicating a stable balance sheet structure Key Balance Sheet Items (As of June 30, 2025) | Item | Amount (RMB billion) | | :--- | :--- | | **Total Assets** | **59.75** | | Cash, Cash Equivalents and Restricted Cash | 8.21 | | Net Loans Receivable (Current + Non-current) | 37.43 | | **Total Liabilities** | **35.65** | | Amounts Due to Consolidated Trust Investors | 20.00 | | **Total Equity** | **24.11** | [Unaudited Condensed Consolidated Statements of Operations](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This statement details the company's revenue, costs, and profit composition for Q2 and H1 2025, showing Q2 net revenue of **RMB 5.22 billion**, operating income of **RMB 2.14 billion**, and net profit of **RMB 1.73 billion** Q2 2025 Income Statement Overview (RMB million) | Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Net Revenue | 5,215.9 | 4,160.1 | | Total Operating Costs and Expenses | 3,079.7 | 2,175.1 | | Operating Income | 2,136.2 | 1,985.0 | | Net Profit | 1,730.5 | 1,376.5 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q2 2025, the company generated **RMB 2.62 billion** in net cash from operating activities, indicating strong core business cash generation, while net cash used in investing activities was **RMB 8.19 billion**, and net cash from financing activities was **RMB 2.00 billion** Q2 2025 Cash Flow Statement Overview (RMB million) | Item | Q2 2025 | | :--- | :--- | | Net Cash from Operating Activities | 2,622.0 | | Net Cash Used in Investing Activities | (8,191.1) | | Net Cash from Financing Activities | 1,995.6 | | Cash, Cash Equivalents and Restricted Cash at Period End | 8,212.4 | [GAAP to IFRS Reconciliation](index=17&type=section&id=GAAP%20to%20IFRS%20Reconciliation) [Reconciliation Explanation and Results](index=17&type=section&id=Reconciliation%20Explanation%20and%20Results) This section provides a quantitative reconciliation of financial statements prepared under US GAAP to IFRS, as required by HKEX, showing H1 2025 net profit of **RMB 3.52 billion** under IFRS, slightly lower than **RMB 3.53 billion** under US GAAP - The company's directors prepared interim financial statements under US GAAP and disclosed a reconciliation of differences with International Financial Reporting Standards (IFRS)[51](index=51&type=chunk) - Deloitte Touche Tohmatsu has performed a limited assurance engagement on this reconciliation statement and found no material issues[54](index=54&type=chunk)[55](index=55&type=chunk) [Notes on Key Accounting Differences](index=24&type=section&id=Notes%20on%20Key%20Accounting%20Differences) The report details five key accounting differences between US GAAP and IFRS: expected credit loss recognition (CECL vs. IFRS 9 three-stage model), effective interest rate calculation, share-based payment attribution, financial guarantee accounting, and convertible preferred note measurement - Expected Credit Losses: US GAAP uses the CECL model to recognize lifetime expected losses at inception, while IFRS 9 employs a three-stage model, recognizing lifetime losses only when credit risk significantly increases[62](index=62&type=chunk) - Effective Interest Rate: US GAAP calculates based on contractual cash flows, whereas IFRS uses estimated cash flows[63](index=63&type=chunk) - Financial Guarantees: US GAAP recognizes standby and contingent guarantee liabilities using the gross method, while IFRS recognizes revenue based on premiums received and measures liabilities at the higher of loss allowance or initial recognition amount[63](index=63&type=chunk) - Convertible Preferred Notes: Under US GAAP, they are measured as liabilities, while under IFRS, they are designated as fair value through profit or loss[63](index=63&type=chunk)

[Performance Highlights](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) H1 2025 saw significant growth in platform technology service revenue and net profit, driven by platformization and AI applications Key Performance Indicators for H1 2025 | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Platform Technology Service Revenue | 210.6 million RMB | 153.8 million RMB | +37.0% | | Profit After Tax | 203.0 million RMB | 165.1 million RMB | +22.9% | | Total Cumulative Platform Customers | >19,100 | >16,700 | +14.4% | | Cumulative Supply Chain Assets Processed | ~278.0 billion RMB | ~216.0 billion RMB | +28.7% | - The platformization strategy continues to deepen, with funding partners increasing from 138 to 181, a **31.2% year-on-year growth**. Small and medium-sized enterprise (SME) clients account for **over 97%**[2](index=2&type=chunk) - Technology service revenue reached approximately **52.0% of total operating revenue**, a significant increase from **35.3% in the prior year**, becoming a core growth driver[2](index=2&type=chunk) - First-time AI information service revenue exceeded **400,000 RMB**, generated by AI Agents assisting clients in order acquisition, marking initial success in AI commercialization[2](index=2&type=chunk) [Management Discussion and Analysis](index=2&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section analyzes the company's operational performance, financial results, and future outlook [Business Overview](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A6%BD) The 'AI+Industrial Supply Chain' firm saw **22.9%** net profit growth in H1 2025, fueled by platform tech services and global expansion Key Financial and Operating Data for H1 2025 | Indicator | H1 2025 | YoY Change | | :--- | :--- | :--- | | Net Profit | 203.0 million RMB | +22.9% | | Operating Revenue and Income | 405.1 million RMB | -7.1% | | Share of Results of Associates | 79.0 million RMB | +94.1% | | Total Cumulative Platform Customers | >19,100 | +14.4% | | Cumulative Supply Chain Assets Processed | ~278.0 billion RMB | +28.7% | | Platform Technology Service Revenue | 210.6 million RMB | +37.0% | - The company continues to advance its 'asset-light' operating model, with platform technology service revenue exceeding **50% of total revenue**, becoming the primary growth driver[5](index=5&type=chunk) - Initial commercialization of AI technology achieved, with AI Agent-assisted order acquisition generating over **400,000 RMB** in AI information service revenue[5](index=5&type=chunk) - Actively expanding into strategic emerging industries, with e-commerce funding facilitation growing nearly **8 times year-on-year**; partnered with Standard Robots to enter the robotics sector; introduced XtalPi and Jiaoge Pengyou as strategic investors to enhance AI R&D and live e-commerce capabilities[7](index=7&type=chunk) - The company committed to a three-year dividend payout ratio of no less than **90% until 2026**, with total dividends for 2025 expected to be approximately **950 million RMB**[6](index=6&type=chunk) [Business Outlook and Prospects](index=5&type=section&id=%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B%E8%88%87%E5%89%8D%E6%99%AF) The company established its Singapore HQ to expand internationally, exploring Web3.0 and stablecoins for global supply chain efficiency - Established Singapore International Headquarters to expand international markets and explore innovative applications of Web3.0 and stablecoins[8](index=8&type=chunk) - Invested in a top SHEIN supplier to support the construction of flexible smart factories overseas and promote the globalization of China's apparel industry; completed the first international working capital facilitation business with the largest integrated logistics enterprise in the Philippines[9](index=9&type=chunk) - Plans to explore the compliant application of stablecoins in international supply chain working capital services, leveraging their 'payment-as-settlement' feature to reduce payment costs to **0.1%**, mitigate exchange rate risks, and enhance capital efficiency[10](index=10&type=chunk) [Financial Review](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) H1 2025 saw structural financial optimization: **7.1%** revenue decrease, **22.9%** net profit growth, driven by platform tech services and reduced financing costs [Financial Summary](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E6%A6%82%E8%A6%81) Operating revenue decreased **7.1%**, but net profit rose **22.9%**, with EPS increasing from **16 to 20 RMB cents** Financial Summary (Six Months Ended June 30) | Indicator (RMB thousands) | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue and Income** | **405,090** | **436,050** | **(7.1%)** | | — Platform Technology Service Revenue | 210,641 | 153,779 | 37.0% | | — Digital Financial Solutions Revenue | 194,021 | 275,038 | (29.5%) | | Financing Costs | 122,599 | 185,414 | (33.9%) | | Share of Results of Associates | 78,994 | 40,702 | 94.1% | | **Net Profit** | **202,959** | **165,126** | **22.9%** | | Earnings Per Share (RMB cents) | 20 RMB cents | 16 RMB cents | 25.0% | [Operating Revenue and Income](index=6&type=section&id=%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Total revenue decreased **7.1%** due to the asset-light strategy, offset by significant growth in platform technology service revenue - Platform technology service revenue increased from **154 million RMB** to **211 million RMB**, a **37.0% year-on-year growth**, primarily due to strengthened platform ecosystem connections and technological capabilities, serving more SME clients[14](index=14&type=chunk) - Digital financial solutions revenue decreased from **275 million RMB** to **194 million RMB**, a **29.5% year-on-year reduction**, reflecting the company's asset-light strategy of reducing proprietary capital investment and shifting towards platform facilitation[15](index=15&type=chunk) [Share of Results of Associates](index=8&type=section&id=%E6%87%89%E4%BD%94%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%A5%AD%E7%B8%BE) Share of results of associates significantly increased by **94.1%** to **79.0 million RMB**, a key outcome of platformization - Share of results of associates significantly increased from **40.7 million RMB** in the prior year to **79.0 million RMB**, a **94.1% year-on-year increase**[18](index=18&type=chunk) [Expenses](index=8&type=section&id=%E6%94%AF%E5%87%BA) Total operating expenses increased by **13.8%** to **123 million RMB**, with the cost-to-revenue ratio rising to **30.4%** Operating Expense Details (Six Months Ended June 30) | Expense Item (RMB thousands) | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Staff Costs | 73,708 | 69,127 | 6.6% | | Depreciation and Amortization | 19,057 | 15,003 | 27.0% | | Other Operating Expenses | 30,393 | 24,108 | 26.1% | | **Total** | **123,158** | **108,238** | **13.8%** | [Capital Structure, Liquidity, Financial Resources, and Leverage](index=13&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B%E3%80%81%E6%B5%81%E5%8B%95%E6%80%A7%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E6%A3%BF%E6%A1%BF) As of June 30, 2025, cash and cash equivalents were **713 million RMB**, operating cash inflow was **3.56 billion RMB**, and leverage ratio increased from **1.58 to 1.95** Key Capital Structure Indicators | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 712.8 million RMB | 515.6 million RMB | | Interest-bearing Borrowings and Related Party Loans | 4.7421 billion RMB | 5.1361 billion RMB | | Leverage Ratio | 1.95 | 1.58 | [Use of Proceeds](index=13&type=section&id=%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) Proceeds from 2021 and 2025 placements were largely used for strategic acquisitions, tech service expansion, platform development, and AI R&D - Net proceeds from the 2021 placement, approximately **551 million HKD**, have been substantially utilized for strategic acquisitions, development of supply chain technology services, and general working capital for platformization[41](index=41&type=chunk)[45](index=45&type=chunk) - Net proceeds from the 2025 placement, approximately **209 million HKD**, have been largely used to accelerate platform technology service expansion, focusing on innovative areas like e-commerce, AI applications, and robotics, as well as increasing R&D investment in the 'Shengyitong Cloud Platform'[43](index=43&type=chunk)[45](index=45&type=chunk) [Corporate Governance and Other Information](index=20&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The company complied with corporate governance codes, maintained public float, and the Audit Committee reviewed interim financials - The company complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the reporting period[71](index=71&type=chunk) - The company maintained a public float of no less than **25%**[68](index=68&type=chunk) - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[73](index=73&type=chunk) [Condensed Consolidated Financial Statements](index=24&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the company's condensed consolidated financial statements: profit or loss, comprehensive income, financial position, equity, and cash flows [Condensed Consolidated Statement of Profit or Loss](index=24&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) Despite revenue decrease, profit increased from **165 million RMB to 203 million RMB**, driven by lower financing costs and associate profits [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=25&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Total comprehensive income for the period was **205 million RMB**, higher than **168 million RMB** in the prior year, including other comprehensive income [Condensed Consolidated Statement of Financial Position](index=26&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Total assets decreased from **10.60 billion RMB** to **10.54 billion RMB**, total liabilities increased from **6.48 billion RMB** to **6.97 billion RMB**, reducing net assets [Condensed Consolidated Statement of Changes in Equity](index=28&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement details changes in shareholders' equity components, including profit, dividends, share issuance, and share-based payments [Condensed Consolidated Statement of Cash Flows](index=30&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash inflow from operating activities was **3.56 billion RMB**, with net outflows from investing and financing activities, ending with **713 million RMB** cash [Notes to the Condensed Consolidated Financial Statements](index=32&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated financial statements, explaining key financial figures and accounting policies [Note 4: Operating Revenue and Income](index=33&type=section&id=4.%20%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) This note details operating revenue breakdown, with platform inclusive matching and referral services as key components of platform technology service revenue Platform Technology Service Revenue Breakdown (RMB thousands) | Service Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Platform Inclusive Matching Technology Services | 97,825 | 100,997 | | Referral Services | 92,577 | 50,913 | | Digital Ecosystem Services | 12,517 | – | | ABS Product Technology Services | 3,561 | 1,038 | | AI Information Services | 427 | – | | Other Services | 3,734 | 831 | | **Total** | **210,641** | **153,779** | [Note 9: Dividends](index=36&type=section&id=9.%20%E8%82%A1%20%E6%81%AF) This note discloses dividends declared, including the 2024 final and 2025 special dividends, totaling approximately **951 million RMB** Dividends Declared During the Period | Dividend Item | Amount (RMB thousands) | | :--- | :--- | | 2024 Final Dividend (RMB 0.347 per share) | 349,504 | | 2025 Special Dividend (RMB 0.596 per share) | 601,149 | | **Total** | **950,653** | [Note 10: Earnings Per Share](index=36&type=section&id=10.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This note presents data for basic and diluted EPS calculation, with both basic and diluted EPS at **20 RMB cents** Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit (RMB thousands) | 199,841 | 155,322 | | Weighted Average Number of Ordinary Shares (thousands) | 980,234 | 979,697 | | Diluted Weighted Average Number of Ordinary Shares (thousands) | 984,071 | 979,957 |