[Performance Summary](index=1&type=section&id=Performance%20Summary) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) In H1 2025, total revenue decreased by 6% to RMB 489 million, with product sales slightly down and CDMO/CMO revenue falling 32% due to project delays, leading to an 87% drop in net profit to RMB 4.06 million, while operating cash flow grew 25% to RMB 34.83 million, and core product Bevacizumab Injection made significant overseas market progress Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB Thousands) | YoY Change | | :--- | :--- | :--- | | Revenue | 489,140 | -6% | | - Product Sales Revenue | 397,909 | -1% | | - CDMO/CMO Business Revenue | 77,301 | -32% | | Net Profit | 4,062 | -87% | | Net Cash from Operating Activities | 34,830 | +25% | - The decline in net profit is primarily attributed to delayed delivery milestones for key CDMO projects, increased depreciation and amortization from new major construction projects, and higher selling and administrative expenses for overseas market expansion and management system optimization[4](index=4&type=chunk) - Core product Bevacizumab Injection (Puxinting®) received marketing approval in Nigeria and Pakistan, with production facilities passing GMP inspections in Brazil, Colombia, and other countries, marking the commencement of the company's international commercial supply[5](index=5&type=chunk) - The company-licensed TAB014 (Bevacizumab Intravitreal Injection Solution) to Zhaoke Ophthalmology has submitted a marketing application, making it the first Bevacizumab ophthalmic formulation to be declared for marketing in China for wet age-related macular degeneration (wAMD)[6](index=6&type=chunk) [Consolidated Financial Information](index=3&type=section&id=Consolidated%20Financial%20Information) [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported revenue of RMB 489 million, a 6% decrease year-on-year, with operating profit significantly dropping to RMB 9.18 million from RMB 33.26 million due to stable costs and expenses amidst declining revenue, resulting in a net profit of RMB 4.06 million, down 87% year-on-year, and basic and diluted earnings per share of RMB 0.01 Summary of Interim Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Item | 2025 (RMB Thousands) | 2024 (RMB Thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 489,140 | 520,603 | -6.0% | | Operating Profit | 9,178 | 33,258 | -72.4% | | Profit Before Income Tax | 4,062 | 31,559 | -87.1% | | Profit for the Period | 4,062 | 31,559 | -87.1% | | Basic and Diluted Earnings Per Share (RMB) | 0.01 | 0.04 | -75.0% | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were RMB 1.476 billion, a slight decrease from year-end 2024, while total liabilities decreased to RMB 745 million, primarily due to lower current liabilities, and total equity slightly increased to RMB 732 million, with net current assets improving to RMB 390 million from RMB 328 million Summary of Interim Condensed Consolidated Statement of Financial Position | Item | June 30, 2025 (RMB Thousands) | December 31, 2024 (RMB Thousands) | | :--- | :--- | :--- | | **Total Assets** | **1,476,422** | **1,508,772** | | Non-current Assets | 729,669 | 765,495 | | Current Assets | 746,753 | 743,277 | | **Total Liabilities** | **744,740** | **779,117** | | Non-current Liabilities | 388,247 | 363,754 | | Current Liabilities | 356,493 | 415,363 | | **Total Equity** | **731,682** | **729,655** | | Net Current Assets | 390,260 | 327,914 | [Notes to Financial Information](index=6&type=section&id=Notes%20to%20Financial%20Information) The notes detail the company's accounting policies, revenue composition, and asset and liability status, showing that product sales constitute the largest portion of revenue, the vast majority of income and non-current assets are from Mainland China, total borrowings are approximately RMB 396 million with a weighted average effective interest rate of 3.33%, and no dividends were distributed this period Revenue Breakdown for H1 2025 (RMB Thousands) | Revenue Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales of Goods | 397,909 | 400,400 | | CDMO/CMO | 77,301 | 113,791 | | Commission Income | 6,144 | 5,339 | | Revenue from Licensed-out Products | 4,717 | – | | Others | 3,069 | 1,073 | | **Total** | **489,140** | **520,603** | - The company's operations are primarily concentrated in Mainland China, with 97.5% of total revenue in H1 2025 originating from Mainland China, and all non-current assets located there[26](index=26&type=chunk) - As of June 30, 2025, the company's total borrowings amounted to **RMB 396 million**, with approximately 90% being non-current (over one year) borrowings, and the weighted average effective interest rate for bank borrowings was **3.33%**[38](index=38&type=chunk)[40](index=40&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[44](index=44&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=16&type=section&id=Business%20Review) In H1 2025, the company solidified its position as a leading domestic biopharmaceutical CDMO, particularly in the ADC field, adding 16 new projects, accumulating 169 projects, securing RMB 200 million in signed uncompleted orders with a 73% customer repurchase rate, while its self-developed core product Puxinting® (Bevacizumab) achieved significant overseas expansion with approvals in Nigeria and Pakistan, initiating international commercial supply - As a one-stop, integrated, end-to-end antibody and ADC drug CDMO service provider, the company added **16 new projects** (including 14 ADC projects) in H1, accumulating a total of **169 projects**[47](index=47&type=chunk)[48](index=48&type=chunk) - Signed and uncompleted orders reached **RMB 200 million**, with a customer repurchase rate of **73%** during the reporting period, and the company assisted a client in completing the world's first approved clinical dual-payload ADC project[48](index=48&type=chunk) - Core product Puxinting® (Bevacizumab) received marketing approval in Nigeria and Pakistan, with production facilities passing GMP inspections in multiple countries, initiating international commercial supply[50](index=50&type=chunk) [CDMO Business Development and Competitive Advantages](index=19&type=section&id=CDMO%20Business%20Development%20and%20Competitive%20Advantages) The company's CDMO business leverages its "integrated, end-to-end" antibody and ADC industrialization platform to significantly shorten R&D cycles, continuously iterating technology platforms like BDKcell® and GL-DisacLink™ ADC sugar-site conjugation technology, maintaining a quality management system compliant with Chinese, US, and European GMP standards with over 60 audits, and benefiting from flexible capacity deployment and an experienced international core team for differentiated competitive advantages - Offers "integrated, end-to-end" antibody and ADC one-stop CDMO services, capable of shortening the timeline from DNA sequence to IND submission to as fast as **11 months**[56](index=56&type=chunk) - Continuously iterates technology platforms, including the self-developed BDKcell® cell line development platform, and co-develops GL-DisacLink™ ADC sugar-site conjugation technology with partners[57](index=57&type=chunk)[59](index=59&type=chunk) - Quality system complies with international standards, having undergone over **60 GMP audits**, including a zero-deficiency EU QP audit and official GMP inspections from multiple emerging market countries[60](index=60&type=chunk) - The CDMO core team is stable, with key executives averaging over **15 years of multinational enterprise management experience**, and as of June 30, 2025, the CDMO team comprised **524 individuals**, accounting for **87%** of the company's total workforce[62](index=62&type=chunk) [Marketed Products and R&D Pipeline](index=22&type=section&id=Marketed%20Products%20and%20R%26D%20Pipeline) The company is streamlining its R&D pipeline to reduce expenses and focus on its core CDMO business, with Puxinting® (Bevacizumab Injection) and Tizian® (Temozolomide Capsules) as its main commercial products; Puxinting® is a core revenue driver, generating RMB 398 million in domestic sales in H1 2025 and actively pursuing overseas registrations in 35 countries, while Tizian® continues to supply the market through national centralized procurement Status of Key R&D Pipeline | Investigational Drug | Indication | Current Stage | | :--- | :--- | :--- | | TAE020 | Acute Myeloid Leukemia | Clinical Phase I | | TAB014 | Wet Age-related Macular Degeneration | NDA | | TAC020 | Various Solid Tumors | Preclinical | - Core product Puxinting® (Bevacizumab) generated domestic sales revenue of **RMB 398 million** in H1 2025, has initiated marketing registration applications in **35 overseas countries**, and received approvals in Nigeria and Pakistan[65](index=65&type=chunk) - Another marketed product, Tizian® (Temozolomide Capsules), has been included in the National Centralized Drug Procurement list and continues to supply multiple provinces after winning bids[66](index=66&type=chunk) [Financial Position Analysis](index=26&type=section&id=Financial%20Position%20Analysis) In H1 2025, the company's revenue decreased by 6% to RMB 489 million, primarily due to a 32% drop in CDMO business revenue impacted by project delivery milestones, leading to an 87% year-on-year plunge in net profit to RMB 4.06 million due to reduced revenue, increased depreciation and amortization, and higher selling and administrative expenses; R&D expenses decreased by 23% through pipeline streamlining, operating cash flow remained healthy with a 25% increase, and investing cash outflow significantly reduced as project construction neared completion Key Financial Item Changes for H1 2025 (RMB Thousands) | Item | H1 2025 | H1 2024 | Reason for Change | | :--- | :--- | :--- | :--- | | Revenue | 489,140 | 520,603 | Some CDMO projects did not reach delivery milestones | | - Product Sales Revenue | 397,909 | 400,400 | Increased market competition | | - CDMO/CMO Revenue | 77,301 | 113,791 | Significant project milestones completed in prior period | | R&D Expenses | 35,628 | 46,059 | Pipeline streamlining, resources focused on CDMO | | Selling Expenses | 277,445 | 276,482 | Increased investment in overseas market promotion | | General and Administrative Expenses | 34,725 | 32,105 | Company expansion, management system enhancement | | Net Profit | 4,062 | 31,559 | Combined impact of revenue decline and increased expenses | - Net cash inflow from operating activities was **RMB 34.83 million**, a **25%** year-on-year increase, demonstrating effective working capital management[85](index=85&type=chunk) - Net cash outflow from investing activities significantly decreased to **RMB 26.51 million** (from RMB 68.78 million in the prior period), primarily due to the global R&D service center construction project nearing completion[85](index=85&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) [Corporate Governance and Dividends](index=30&type=section&id=Corporate%20Governance%20and%20Dividends) The company's audit committee reviewed the financial statements for the period, the Board resolved not to declare an interim dividend for the six months ended June 30, 2025, and the company complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors during the reporting period - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[87](index=87&type=chunk) - The company confirmed compliance with the Corporate Governance Code and the Model Code for Securities Transactions by Directors of Listed Issuers as set out in the Listing Rules throughout the reporting period[88](index=88&type=chunk)[89](index=89&type=chunk) [Use of Proceeds from Subscription](index=30&type=section&id=Use%20of%20Proceeds%20from%20Subscription) The company provided a detailed disclosure on the use of net proceeds from the 2022 subscription, with approximately RMB 20.09 million utilized in H1 2025 and approximately RMB 18.13 million remaining unutilized, which the company intends to use according to previously announced and subsequently revised proposed uses - Regarding the proceeds from the 2022 subscription, approximately **RMB 18.13 million** remained unutilized as of June 30, 2025[94](index=94&type=chunk) - The company plans to utilize the remaining net proceeds according to the disclosed purposes, as revised by reallocations in 2024 and 2025[94](index=94&type=chunk)

[Company Major Financial Indicators](index=2&type=section&id=Company%20Major%20Financial%20Indicators) [Five-Year Financial Summary](index=2&type=section&id=Five-Year%20Financial%20Summary) The report presents the company's performance and balance sheet over the past five half-years, showing a decrease in revenue and a significant decline in profit for the six months ended June 30, 2025, with total assets and liabilities slightly reduced from year-end 2024 Five-Year Performance Summary (As of June 30 for Six Months) | Indicator (RMB thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 390,083 | 408,124 | 522,828 | 271,260 | 399,037 | | **Profit/(Loss) for the Period** | 5,622 | 70,344 | 68,605 | (36,021) | 65,069 | | **Profit Attributable to Equity Holders of the Company** | 5,715 | 70,473 | 68,438 | (35,975) | 65,485 | Five-Year Assets and Liabilities Summary | Indicator (RMB thousands) | June 30, 2025 | December 31, 2024 | December 31, 2023 | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 2,541,453 | 2,586,503 | 2,876,688 | 2,976,007 | 2,781,172 | | **Total Liabilities** | (261,015) | (281,226) | (518,124) | (722,986) | (591,582) | | **Equity Attributable to Equity Holders of the Company** | 2,279,821 | 2,304,567 | 2,357,554 | 2,257,102 | 2,192,946 | [Key Accounting Data and Financial Indicators](index=3&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue decreased by **4.42%** year-on-year, while total profit and net profit attributable to shareholders both declined by over **90%**, primarily due to increased R&D expenses and a high comparative base from one-time compensation in the prior year, though net cash flow from operating activities grew by **125%** Key Accounting Data (RMB) | Key Accounting Data | Current Reporting Period (2025 H1) | Prior Year Period (2024 H1) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 390,083,112 | 408,123,863 | -4.42 | | **Total Profit** | 5,622,200 | 72,186,951 | -92.21 | | **Net Profit Attributable to Shareholders of Listed Company** | 5,715,142 | 70,473,064 | -91.89 | | **Net Cash Flow from Operating Activities** | 62,212,859 | 27,649,549 | 125.00 | - Total profit and net profit attributable to parent company shareholders significantly decreased year-on-year, primarily due to increased R&D expenses in the current period and a higher comparative base from one-time compensation and liquidated damages recognized in the prior year due to termination of cooperation with a Ribao Duo® promotion service provider[11](index=11&type=chunk) Key Financial Indicators | Key Financial Indicators | Current Reporting Period (2025 H1) | Prior Year Period (2024 H1) | Change | | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (RMB/share)** | 0.01 | 0.07 | -85.71% | | **Weighted Average Return on Net Assets (%)** | 0.25 | 2.99 | Decrease 2.74 percentage points | | **R&D Investment as % of Operating Revenue (%)** | 45.63 | 38.06 | Increase 7.57 percentage points | [Non-Recurring Gains and Losses and Amounts](index=5&type=section&id=Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) During the reporting period, the company's non-recurring gains and losses totaled approximately **RMB 15.21 million**, primarily from gains on financial assets like structured deposits and wealth management products, and government subsidies Non-Recurring Gains and Losses Items (RMB) | Non-Recurring Gains and Losses Item | Amount | | :--- | :--- | | Government Subsidies | 6,850,812 | | Gains and Losses from Holding Financial Assets and Liabilities | 8,257,294 | | Gains and Losses from Disposal of Non-Current Assets | 203,055 | | Other Non-Operating Income and Expenses | -103,860 | | **Total** | **15,206,999** | [Financial Review and Management Discussion and Analysis](index=6&type=section&id=Financial%20Review%20and%20Management%20Discussion%20and%20Analysis) [Operating Performance Review](index=6&type=section&id=Operating%20Performance%20Review) During the reporting period, the group's operating revenue decreased by **4%** to **RMB 390 million**, with net profit plummeting by **92%** to **RMB 5.62 million**, primarily due to a high comparative base from one-time gains in the prior year and increased R&D and sales expenses - Operating revenue was approximately **RMB 390 million**, a **4% year-on-year decrease**, with main business revenue primarily from three core products: Aileda® (contributing **49%**), Ribao Duo® (contributing **30%**), and Fumeida® (contributing **20%**)[16](index=16&type=chunk)[17](index=17&type=chunk) - Operating costs increased year-on-year, mainly due to a decrease in Ribao Duo® production volume affected by centralized procurement, leading to higher unit production costs[18](index=18&type=chunk) Period Expense Changes | Expense Item (RMB thousands) | Current Reporting Period (2025 H1) | Prior Year Period (2024 H1) | YoY Change | | :--- | :--- | :--- | :--- | | **Selling Expenses** | 181,910 | 114,493 | +59% | | **Administrative Expenses** | 20,303 | 23,374 | -13% | | **R&D Expenses** | 177,976 | 154,593 | +15% | - Net profit was approximately **RMB 5.62 million**, a **92% year-on-year decrease**, with net profit margin falling from **17%** in the prior year to **1%**, primarily due to compensation and liquidated damages recognized in the prior year from the termination of cooperation with Shanghai Huizheng[25](index=25&type=chunk) [Liquidity and Financial Resources](index=9&type=section&id=Liquidity%20and%20Financial%20Resources) The group maintains a conservative financial policy, primarily relying on internal resources and IPO proceeds, holding approximately **RMB 1.11 billion** in cash and cash equivalents as of the reporting period end, with no outstanding bank borrowings or asset pledges - As of June 30, 2025, the group held cash and cash equivalents of **RMB 1.106 billion**[27](index=27&type=chunk) - The group has no outstanding bank borrowings, rendering the debt-to-asset ratio inapplicable, and no assets were pledged at the period end[27](index=27&type=chunk)[29](index=29&type=chunk)[31](index=31&type=chunk) [Significant Investments and Asset Changes](index=10&type=section&id=Significant%20Investments%20and%20Asset%20Changes) The group's most significant long-term equity investment is a **39.5663%** stake in Shanghai Handu Pharmaceutical Technology Co., Ltd., with a net book value of approximately **RMB 222 million**, accounting for **8.72%** of total assets, resulting in an investment loss of **RMB 2.258 million** for the period, with no major asset acquisitions or disposals - The group's long-term equity investment in Handu Pharmaceutical has a net book value of **RMB 222 million**, accounting for **8.72%** of total assets, and the group recognized an investment loss of approximately **RMB 2.258 million** during the reporting period due to Handu Pharmaceutical's unrealized net loss[35](index=35&type=chunk) - The group's 360 ordinary shares of TuHURA Biosciences, Inc., a US Nasdaq-listed company, had a fair value of approximately **RMB 5,747** at the end of the reporting period[38](index=38&type=chunk) - During the reporting period, the group had no significant acquisitions or disposals of assets, subsidiaries, associates, or joint ventures[39](index=39&type=chunk) [Analysis of Major Controlled and Invested Companies](index=12&type=section&id=Analysis%20of%20Major%20Controlled%20and%20Invested%20Companies) The report details the financial status of major controlled and invested companies, with Taizhou Fudan-Zhangjiang incurring a net loss of **RMB 7.2391 million** due to significantly increased R&D expenses, and Handu Pharmaceutical recording a net loss of **RMB 5.5960 million** Financial Data of Major Controlled and Invested Companies (RMB 10,000) | Company Name | Total Assets | Net Assets | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | :--- | | **Taizhou Fudan-Zhangjiang** | 58,303.47 | 45,547.62 | 9,381.22 | -723.91 | | **Fengyi Holdings** | 2,132.32 | 2,032.39 | 8.17 | -136.55 | | **Shanghai Suyuan Bio** | 1,340.38 | 1,214.22 | 210.77 | -182.95 | | **Handu Pharmaceutical** | 66,531.40 | 52,796.88 | 403.93 | -559.60 | [Subscription of Wealth Management Products and Structured Deposits](index=13&type=section&id=Subscription%20of%20Wealth%20Management%20Products%20and%20Structured%20Deposits) To effectively utilize idle funds, the company subscribed to **RMB 1 billion** worth of structured deposit products from various banks during the reporting period, all of which matured and yielded approximately **RMB 8.26 million** in total gains, with no outstanding products at period end - During the reporting period, the company subscribed to a total of **RMB 1 billion** in structured deposit products using its own idle funds and raised capital[42](index=42&type=chunk) - All structured deposit products matured and were redeemed, yielding total gains of approximately **RMB 8.26 million** during the reporting period[43](index=43&type=chunk)[44](index=44&type=chunk) [Business Review and Outlook](index=14&type=section&id=Business%20Review%20and%20Outlook) [Industry and Main Business Overview](index=14&type=section&id=Industry%20and%20Main%20Business%20Overview) The company specializes in innovative R&D, production, and sales of biopharmaceuticals, focusing on dermatology and oncology with core products Aileda®, Fumeida®, and Ribao Duo®, benefiting from supportive national policies for innovative drugs - The state has intensively introduced multiple policies supporting the development of innovative drugs, including the "Implementation Plan for Full-Chain Support of Innovative Drug Development" and "Several Measures to Support High-Quality Development of Innovative Drugs," providing comprehensive support for industry growth[47](index=47&type=chunk)[48](index=48&type=chunk) - The company's main business products include: **Aileda®** (Aminolevulinic Acid Hydrochloride for External Use), the world's first photodynamic drug for condyloma acuminatum; **Fumeida®** (Hemoporfin for Injection), the world's first photodynamic drug for port-wine stains; and **Ribao Duo®** (Doxorubicin Hydrochloride Liposome Injection), China's first generic version of Doxil for tumor treatment[56](index=56&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) [Discussion and Analysis of Operating Conditions](index=18&type=section&id=Discussion%20and%20Analysis%20of%20Operating%20Conditions) The company's R&D strategy focuses on photodynamic and ADC drugs, with ongoing clinical trials for new indications and novel compounds, while core product sales show mixed performance, and Ribao Duo®'s significant price reduction due to non-中标 in centralized procurement is expected to negatively impact 2025 revenue - R&D strategy focuses on two major areas: **Photodynamic drugs**, expanding new indications for marketed drugs (e.g., Aileda® for cervical precancerous lesions, acne) and developing intraoperative molecular imaging (IMI) technology for surgical visualization in glioblastoma, bladder cancer, etc.; and **Antibody-Drug Conjugates (ADCs)**, with anti-Trop2 antibody-conjugated SN38 drug (FDA018) in Phase III clinical trials, and multiple ADC projects based on the new linker-drug platform (BB05), such as anti-Her2-BB05 and anti-Trop2-BB05, both in Phase I/II clinical trials[61](index=61&type=chunk)[62](index=62&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk) YoY Change in Major Product Sales Revenue | Product | YoY Change in Reporting Period | | :--- | :--- | | **Aileda®** | Increase 2% | | **Fumeida®** | Decrease 7% | | **Ribao Duo®** | Decrease 16% | - Significant event: The anti-tumor drug Ribao Duo®, not selected in the national centralized procurement, has seen its market retail price adjusted downwards by no less than **35%** since May 1, 2025, which is expected to adversely impact the company's sales revenue for 2025 and subsequent periods[81](index=81&type=chunk) [Core Competitiveness Analysis](index=25&type=section&id=Core%20Competitiveness%20Analysis) The company's core competitiveness stems from its four major technology platforms—gene engineering, photodynamic, nanotechnology, and oral solid dosage—with a strategic focus on photodynamic and ADC drugs, demonstrating strong R&D progress and a robust academic promotion and quality control system, supported by a **14.58%** increase in R&D investment - The company possesses four core technology platforms: gene engineering, photodynamic, nanotechnology, and oral solid dosage formulation, with a strategic focus on photodynamic drugs and Antibody-Drug Conjugates (ADCs)[89](index=89&type=chunk) Progress of Key R&D Projects | Technology Area | Project Name | Indication | Latest Progress | | :--- | :--- | :--- | :--- | | **Photodynamic** | Hemoporfin | Port-wine Stains | US Phase II Clinical Study ongoing | | **Photodynamic** | Aminolevulinic Acid Hydrochloride-CIN | HPV-infected Cervical Diseases | Phase II Clinical Study completed | | **Photodynamic** | Aminolevulinic Acid Hydrochloride-Glioblastoma | Glioblastoma Surgical Visualization | Confirmatory Clinical Trial enrollment completed | | **ADC** | Anti-Trop2 Antibody-Conjugated SN38 | Triple-Negative Breast Cancer | Phase III Clinical Study ongoing | | **ADC** | Anti-Her2 Antibody-Conjugated BB05 | HER2-low Expressing Breast Cancer | Phase II Clinical Study enrollment completed | R&D Investment (RMB) | Indicator | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | **Expensed R&D Investment** | 177,976,257 | 154,592,537 | 15.13 | | **Total R&D Investment** | 177,976,257 | 155,330,149 | 14.58 | | **Total R&D Investment as % of Operating Revenue (%)** | 45.63 | 38.06 | Increase 7.57 percentage points | [Risk Factors](index=32&type=section&id=Risk%20Factors) The company faces significant risks including the long, costly, and uncertain nature of new drug R&D, potential loss of core technical personnel, product concentration risk with high reliance on three main products, and intensified drug price reduction risks, particularly for Ribao Duo® after failing centralized procurement - New drug R&D carries high costs, long cycles, and uncertainty risks, where failure to succeed or gain approval for pipeline products will result in losses of prior investments[101](index=101&type=chunk) - Product portfolio is relatively concentrated, with dominant products Aileda®, Ribao Duo®, and Fumeida® accounting for a large proportion of total sales revenue, making the company vulnerable to single-product market impacts[103](index=103&type=chunk) - Drug price reduction risk intensified: Ribao Duo® was not selected in the tenth batch of national centralized procurement and has been subject to price reductions of no less than **35%** since May 1, 2025, with its 2025 annual sales revenue projected to decrease by over **50%** year-on-year, potentially leading to a single-product loss[106](index=106&type=chunk) [Outlook](index=34&type=section&id=Outlook) Moving forward, the group will strategically focus on its two advantageous areas: photodynamic technology, with comprehensive investment to solidify its leadership, and Antibody-Drug Conjugates (ADCs), by rapidly advancing competitive projects for R&D and industrialization to expand market scale - The company will strategically focus on two core areas in the future: **Photodynamic technology**, with comprehensive development from specialized devices to innovative drugs, increasing investment to consolidate industry leadership; and **Antibody-Drug Conjugates (ADCs)**, by rapidly advancing competitive project R&D and industrialization to expand industry scale[109](index=109&type=chunk) [Corporate Governance and Other Significant Matters](index=35&type=section&id=Corporate%20Governance%20and%20Other%20Significant%20Matters) [Corporate Governance Practices](index=36&type=section&id=Corporate%20Governance%20Practices) The company has adopted the HKEX Listing Rules' Corporate Governance Code, complying with all principles and provisions during the reporting period, except for the combined roles of Chairman and CEO held by Mr. Zhao Dajun, which the board believes enhances management efficiency at this stage - The company's corporate governance has one deviation: the roles of Chairman and CEO (General Manager) are both held by Mr. Zhao Dajun, without separation of duties, which the board believes is more beneficial for the company's development at this stage[116](index=116&type=chunk) [Employees and Remuneration](index=37&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the group had **899** employees, a slight decrease from **913** in the prior year, with total staff costs for the reporting period decreasing to **RMB 101.82 million** from **RMB 117.82 million** Employee and Remuneration Overview | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total Employees** | 899 人 | 913 人 | | **Staff Costs (RMB)** | 101,818,230 元 | 117,815,229 元 | [Other Significant Matters](index=39&type=section&id=Other%20Significant%20Matters) During the reporting period, the company adhered to disclosed commitments, with no instances of controlling shareholder fund appropriation, irregular guarantees, or major litigations, while the "Hemoporfin US Registration Project" was extended to December 31, 2025, due to external environmental factors - The net proceeds from A-share issuance amounted to **RMB 974 million**, with a net balance of **RMB 193 million** as of January 1, 2025[126](index=126&type=chunk) - Due to external environmental factors, the "Hemoporfin US Registration Project" has been delayed, and its implementation period has been adjusted to December 31, 2025[131](index=131&type=chunk) [Share Capital Changes and Shareholder Information](index=43&type=section&id=Share%20Capital%20Changes%20and%20Shareholder%20Information) During the reporting period, the company's total share capital and structure remained unchanged, with **19,877** common shareholders at period end, and the top three shareholders being HKSCC NOMINEES LIMITED (**24.58%**), Shanghai Pharmaceutical Group Co., Ltd. (**20.27%**), and Xinqi Phase II Venture Capital Enterprise (**15.14%**) Top Three Shareholders' Holdings | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | | :--- | :--- | :--- | | HKSCC NOMINEES LIMITED | 254,827,740 | 24.58 | | Shanghai Pharmaceutical Group Co., Ltd. | 210,142,560 | 20.27 | | Xinqi Phase II Venture Capital Enterprise | 156,892,912 | 15.14 | [Consolidated Financial Statements](index=49&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheet](index=49&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's total assets were **RMB 2.541 billion**, a **1.74%** decrease from the beginning of the year, with total liabilities at **RMB 261 million**, a **7.18%** decrease, and equity attributable to parent company shareholders totaling **RMB 2.280 billion**, a **1.07%** decrease Key Data from Consolidated Balance Sheet (RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | 1,593,438,095 | 1,606,778,507 | | **Total Non-Current Assets** | 948,015,177 | 979,724,116 | | **Total Assets** | 2,541,453,272 | 2,586,502,623 | | **Total Current Liabilities** | 229,088,028 | 250,952,140 | | **Total Non-Current Liabilities** | 31,927,181 | 30,273,378 | | **Total Liabilities** | 261,015,209 | 281,225,518 | | **Total Equity Attributable to Parent Company Shareholders** | 2,279,821,312 | 2,304,567,412 | | **Total Shareholders' Equity** | 2,280,438,063 | 2,305,277,105 | [Consolidated Income Statement](index=53&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the company's operating revenue was **RMB 390.08 million**, a **4.4%** year-on-year decrease, with operating costs rising **35.3%** to **RMB 39.77 million**, and net profit attributable to parent company shareholders significantly declining by **91.9%** to **RMB 5.715 million** Key Data from Consolidated Income Statement (RMB) | Item | For the 6 Months Ended June 30, 2025 | For the 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Operating Revenue** | 390,083,112 | 408,123,863 | | **Operating Costs** | (39,773,796) | (29,399,848) | | **Selling Expenses** | (181,910,272) | (114,492,701) | | **R&D Expenses** | (177,976,257) | (154,592,537) | | **Total Profit** | 5,622,200 | 72,186,951 | | **Net Profit** | 5,622,200 | 70,344,013 | | **Net Profit Attributable to Parent Company Shareholders** | 5,715,142 | 70,473,064 | [Consolidated Cash Flow Statement](index=56&type=section&id=Consolidated%20Cash%20Flow%20Statement) During the reporting period, net cash flow from operating activities was **RMB 62.21 million**, a **125%** year-on-year increase, primarily due to increased cash received from sales, while net cash outflow from investing activities was **RMB 8.28 million**, and cash and cash equivalents at period end totaled **RMB 1.106 billion** Key Data from Consolidated Cash Flow Statement (RMB) | Item | For the 6 Months Ended June 30, 2025 | For the 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 62,212,859 | 27,649,549 | | **Net Cash Flow (Used in)/Generated from Investing Activities** | (8,277,485) | 4,326,668 | | **Net Cash Flow Used in Financing Activities** | (3,638,269) | (5,522,836) | | **Net Increase in Cash** | 50,205,176 | 26,585,009 | | **Cash Balance at Period End** | 1,106,490,805 | 1,222,481,006 | [Notes to Financial Statements](index=61&type=section&id=Notes%20to%20Financial%20Statements) [Significant Accounting Policies and Estimates](index=62&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) The financial statements are prepared in accordance with China's Accounting Standards for Business Enterprises on a going concern basis, with key policies including expected credit loss model for receivables, weighted average cost for inventory, capitalization of development expenditures under specific conditions, and revenue recognition upon transfer of control, while significant estimates involve useful lives of fixed assets, expected credit losses, and deferred tax asset recognition - The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance of China, with the functional currency being RMB[160](index=160&type=chunk)[165](index=165&type=chunk) - Expenditures in the development phase are capitalized when five conditions are met: technical feasibility, management's intention, future economic benefits, resource availability, and reliable measurement[209](index=209&type=chunk) - Revenue recognition principle: Revenue is recognized at the amount of consideration expected to be entitled when the customer obtains control of the related goods or services[216](index=216&type=chunk) [Notes to Consolidated Financial Statements](index=85&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the composition and changes of major consolidated financial statement items, including a significant reversal of accounts receivable impairment provision, the breakdown of R&D expenses, a **59%** year-on-year decrease in other income primarily due to reduced government subsidies, and investment income mainly from wealth management products - The provision for doubtful accounts on accounts receivable significantly reversed by **RMB 23.837 million** from **RMB 27.046 million** at the beginning of the year, with a period-end balance of **RMB 3.209 million**[254](index=254&type=chunk) Composition of R&D Expenses (RMB) | Item | For the 6 Months Ended June 30, 2025 | For the 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Outsourced R&D Expenses** | 86,088,902 | 55,618,334 | | **Salaries and Wages** | 36,390,548 | 43,950,526 | | **Data and Material Costs** | 20,852,237 | 24,015,533 | | **R&D Department Expenses** | 18,760,793 | 19,656,393 | | **Depreciation Expense** | 15,883,777 | 11,351,751 | | **Total** | **177,976,257** | **154,592,537** | - Investment income was **RMB 6.125 million**, comprising a loss of **RMB 2.132 million** from long-term equity investments accounted for under the equity method and **RMB 8.257 million** from wealth management products[335](index=335&type=chunk) [Supplementary Information to Financial Statements](index=161&type=section&id=Supplementary%20Information%20to%20Financial%20Statements) [Return on Net Assets and Earnings Per Share](index=162&type=section&id=Return%20on%20Net%20Assets%20and%20Earnings%20Per%20Share) During the reporting period, the weighted average return on net assets (ROE) attributable to common shareholders was **0.25%**, a significant decrease from **2.99%** in the prior year, with basic earnings per share at **RMB 0.01**, down from **RMB 0.07** Return on Net Assets and Earnings Per Share | Item | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (RMB) | | :--- | :--- | :--- | | **Current Reporting Period (2025 H1)** | | | | Net Profit Attributable to Common Shareholders of the Company | 0.25% | 0.01 | | After Deducting Non-Recurring Gains and Losses | -0.41% | (0.01) | | **Prior Year Period (2024 H1)** | | | | Net Profit Attributable to Common Shareholders of the Company | 2.99% | 0.07 | | After Deducting Non-Recurring Gains and Losses | 1.85% | 0.04 |

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部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。 截至2025年6月30日止六個月的半年度業績公告 1 1 引言 1.1 董事會欣然宣佈本集團於本報告期之未經審核半年度業績，以及連同截至 2024年6月30日止六個月的數字比較。 1.2 本集團於本報告期的財務報告（「財務報告」）乃按中國企業會計準則編製。 2 財務摘要 2.1 主要財務數據及指標 | | 截至6月30日止六個月 | | | --- | --- | --- | | | 2025年 | 2024年 | | | 人民幣千元 | 人民幣千元 | | | （未經審核） | （未經審核） | | 營業收入 | 738,562 | 828,957 | | 除所得稅前利潤 | 41,980 | 61,513 | | 所得稅費用 | 15,210 | 16,516 | | 淨利潤 | 26,769 | 44,996 | | 歸屬於本公司股東的淨利潤 | 36,530 | 50,724 | | 少數股東損 ...

[Report Cover and Company Information](index=1&type=section&id=Report%20Cover%20and%20Company%20Information) This section provides an overview of Langham Hospitality Investments (Stock Code: 1270) and its interim results for H1 2025 [Company Overview](index=1&type=section&id=Company%20Overview) This report presents the 2025 interim results for Langham Hospitality Investments (Stock Code: 1270), announced by Langham Hospitality Investments Management Limited as the Trustee-Manager and the Board of Directors of Langham Hospitality Investments Limited - Langham Hospitality Investments (Stock Code: 1270) announces its 2025 interim results[2](index=2&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) This section presents key financial indicators for H1 2025, including revenue, operating gross profit, distributable income, and balance sheet metrics [Key Financial Indicators for H1 2025](index=1&type=section&id=Key%20Financial%20Indicators%20for%20H1%202025) In H1 2025, the Trust Group experienced decreased hotel portfolio revenue and operating gross profit, while profit attributable to stapled security holders (excluding non-cash items) significantly increased, leading to a decline in distributable income and no interim distribution, alongside a slight decrease in hotel portfolio value and a marginal rise in gearing ratio 2025 H1 Key Financial Data (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Hotel Portfolio Revenue | 737.5 | 772.9 | -4.6% | | Total Hotel Portfolio Gross Operating Profit | 217.0 | 232.5 | -6.7% | | Trust Group Total Rental Income after Service Fees | 184.8 | 191.1 | -3.3% | | Profit Attributable to Stapled Security Holders (excluding fair value changes of investment properties, derivative financial instruments, and changes related to hotel manager fee arrangements) | 28.4 | 4.3 | 560.5% | | Distributable Income | 28.0 | 34.0 | -17.6% | | Interim Distribution per Stapled Security (HK cents) | - | - | - | | **At Period End** | **June 30, 2025** | **December 31, 2024** | **June 30, 2024** | | Total Hotel Portfolio Value | 15,764 | 15,895 | 15,725 | | Net Asset Value per Stapled Security | HKD 2.70 | HKD 2.77 | HKD 2.75 | | Gearing Ratio | 38.5% | 38.2% | 38.1% | - No interim distribution is declared for this period, reflecting the company's prudent capital management strategy[8](index=8&type=chunk) [Management Discussion and Analysis](index=2&type=section&id=Management%20Discussion%20and%20Analysis) This section discusses market conditions, operational performance of the hotel portfolio, and the financial impact of various business segments [Market Overview and Industry Challenges](index=2&type=section&id=Market%20Overview%20and%20Industry%20Challenges) In H1 2025, Hong Kong saw an 11.7% increase in visitor arrivals, though overnight stays remained below pre-pandemic levels, with the hotel sector facing structural challenges from changing traveler behavior, heightened price sensitivity, and the HKD's appreciation against the RMB - Visitor arrivals to Hong Kong reached **23.6 million** in H1 2025, a **11.7% year-on-year increase**[5](index=5&type=chunk) - Overnight visitors accounted for **47.7%** (approximately **11.3 million**), a **7.0% year-on-year increase**, but still below 2018/2019 levels[5](index=5&type=chunk) - Mainland China visitors comprised **65.0%** of overnight visitors, with short-haul markets (excluding Mainland) growing by **13.5%** and long-haul markets rebounding by **17.3%**[5](index=5&type=chunk) - The hotel industry faces challenges such as shorter booking windows, increased price sensitivity, preference for experiential travel, and the HKD's appreciation against the RMB weakening Mainland visitors' purchasing power[5](index=5&type=chunk) [Hotel Portfolio Operating Performance](index=2&type=section&id=Hotel%20Portfolio%20Operating%20Performance) The hotel portfolio maintained an average room rate of HKD 1,561, but a slight dip in occupancy to 88.4% led to a 1.5% decrease in revenue per available room, compounded by an 8.2% drop in F&B revenue due to shifting consumer preferences, resulting in a 6.7% decline in total gross operating profit and a slight reduction in portfolio valuation - The hotel portfolio maintained an average room rate of **HKD 1,561** per night, with occupancy slightly decreasing by **1.4 percentage points** year-on-year to **88.4%**[6](index=6&type=chunk) - Revenue per available room decreased by **1.5%** year-on-year to **HKD 1,379** per night[6](index=6&type=chunk) - Food and beverage segment revenue decreased by **8.2%** year-on-year, primarily due to changing consumer dining preferences and a structural reduction in banquet events[7](index=7&type=chunk) - Total gross operating profit (before global marketing fees) decreased by **6.7%** to **HKD 217.0 million**[7](index=7&type=chunk) - The hotel investment portfolio valuation decreased to **HKD 15,764 million**, a reduction from December 31, 2024[7](index=7&type=chunk) - Net loss attributable to stapled security holders was **HKD 142.2 million**, mainly impacted by fair value losses on investment properties and derivative financial instruments[7](index=7&type=chunk) [Operating Review and Financial Impact](index=3&type=section&id=Operating%20Review%20and%20Financial%20Impact) The Trust Group's total rental income (before service fees) decreased by 3.5% year-on-year, with service fees down 4.7% but property expenses up 6.9%; total finance costs fell 15.4% despite interest rate swaps shifting to net expense, while fair value losses led to a net loss attributable to stapled security holders, though profit after tax (excluding fair value changes) surged 560.5%, resulting in a 17.6% drop in distributable income and no interim distribution [Rental Income Composition and Changes](index=3&type=section&id=Rental%20Income%20Composition%20and%20Changes) The Trust Group's rental income, comprising stable fixed rent (HKD 225.0 million annually) and variable rent (50% of hotels' total gross operating profit), saw a 3.5% year-on-year decrease in total rental income (before service fees) in H1 2025 due to declining variable rent - The Trust Group's rental income comprises fixed rent (**HKD 225.0 million** annually) and variable rent (calculated as **50%** of the hotels' total gross operating profit)[9](index=9&type=chunk) Rental Income Details (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Fixed Rental Income | 111.6 | 111.9 | -0.3% | | Variable Rental Income | 108.5 | 116.2 | -6.6% | | Retail Shop Rental Income | 0.8 | 0.9 | -11.1% | | Total Rental Income before Service Fees | 220.9 | 229.0 | -3.5% | | Service Fee Expenses | (36.1) | (37.9) | -4.7% | | Trust Group Total Rental Income | 184.8 | 191.1 | -3.3% | [Service Fees and Property Expenses](index=4&type=section&id=Service%20Fees%20and%20Property%20Expenses) Total service fees decreased by 4.7% year-on-year due to weaker hotel performance, while hotel property-related expenses rose by 6.9% from increased insurance and government rates, leading to a 3.9% decline in net property income - The Hotel Manager has opted to receive the full hotel manager fee for the year ending December 31, 2025, in cash[13](index=13&type=chunk) Total Service Fees Details (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Hotel Management Fees | 20.6 | 21.9 | -5.9% | | License Fees | 7.4 | 7.7 | -3.9% | | Global Marketing Fees | 8.1 | 8.3 | -2.4% | | Total Service Fees | 36.1 | 37.9 | -4.7% | - Hotel property-related expenses increased by **6.9%** year-on-year to **HKD 10.9 million**, primarily due to higher insurance premiums and increased government rates and rent[15](index=15&type=chunk) - Net property income decreased to **HKD 173.9 million**, a **3.9%** reduction from the same period last year[15](index=15&type=chunk) [Finance Costs and Interest Rate Risk Management](index=5&type=section&id=Finance%20Costs%20and%20Interest%20Rate%20Risk%20Management) Total finance costs decreased by 15.4% to HKD 137.7 million, primarily due to lower bank borrowing interest, despite interest rate swaps shifting to net expense, as the Trust Group increased its total notional swap amount to HKD 2,600.0 million, hedging 41.9% of outstanding bank borrowings to manage interest rate risk - Total finance costs decreased to **HKD 137.7 million**, a **15.4%** year-on-year reduction, primarily due to a **24.6%** decrease in interest expenses on bank borrowings[16](index=16&type=chunk) - Interest rate swaps shifted from recording net interest income in H1 2024 to recording a net interest expense of **HKD 8.3 million** in H1 2025[16](index=16&type=chunk)[19](index=19&type=chunk) - The Trust Group added **HKD 1,100.0 million** in new swaps, increasing the total notional amount to **HKD 2,600.0 million**, hedging **41.9%** of outstanding bank borrowings[18](index=18&type=chunk) Finance Costs Details (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | (122.2) | (162.1) | -24.6% | | Net Interest on Interest Rate Swaps | (8.3) | 4.2 | Not Applicable | | Amortization of Underwriting/Loan Extension Fees | (6.8) | (4.7) | 44.7% | | Other Borrowing Costs | (0.4) | (0.2) | 100.0% | | Total Finance Costs | (137.7) | (162.8) | -15.4% | [Fair Value Changes and Net Profit](index=6&type=section&id=Fair%20Value%20Changes%20and%20Net%20Profit) The Trust Group recorded fair value losses of HKD 143.3 million on investment properties and HKD 27.3 million on derivative financial instruments, resulting in a net loss attributable to stapled security holders of HKD 142.2 million, though net profit after tax (excluding fair value changes) significantly increased by 560.5% to HKD 28.4 million - Recorded fair value losses of **HKD 143.3 million** on hotel investment properties and **HKD 27.3 million** on derivative financial instruments[19](index=19&type=chunk) - Net loss attributable to stapled security holders was **HKD 142.2 million**[19](index=19&type=chunk) - Excluding the impact of fair value changes, net profit after tax was **HKD 28.4 million**, a significant year-on-year increase of **560.5%**[20](index=20&type=chunk) Key Income Statement Items (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Property Income | 173.9 | 180.9 | -3.9% | | Fair Value (Decrease)/Increase in Investment Properties | (143.3) | 37.4 | Not Applicable | | Fair Value Changes in Derivative Financial Instruments | (27.3) | 15.9 | Not Applicable | | Finance Costs | (137.7) | (162.8) | -15.4% | | (Loss)/Profit Before Tax | (136.6) | 50.7 | Not Applicable | | (Loss)/Profit Attributable to Stapled Security Holders | (142.2) | 43.0 | Not Applicable | | Profit Attributable to Stapled Security Holders (excluding fair value changes, etc.) | 28.4 | 4.3 | 560.5% | [Distributable Income and Distribution Policy](index=8&type=section&id=Distributable%20Income%20and%20Distribution%20Policy) Total distributable income for H1 2025 decreased by 17.6% to HKD 28.0 million after adjusting for non-cash items and cash contributions, leading the Board to decide against an interim distribution due to an uncertain hotel operating outlook and volatile interest rate environment - Total distributable income for H1 2025 was **HKD 28.0 million**, a **17.6%** decrease from the same period last year[8](index=8&type=chunk)[23](index=23&type=chunk) - The Board decided not to declare an interim distribution for this period, adopting a prudent capital management and working capital strategy[8](index=8&type=chunk)[24](index=24&type=chunk) Distributable Income Calculation (HKD million) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | (Loss)/Profit Attributable to Stapled Security Holders | (142.2) | 43.0 | Not Applicable | | Adjustment: Fair Value Decrease/(Increase) in Investment Properties | 143.3 | (37.4) | Not Applicable | | Adjustment: Fair Value Changes in Derivative Financial Instruments | 27.3 | (15.9) | Not Applicable | | Adjustment: Amortization of Underwriting/Loan Extension Fees | 6.8 | 4.7 | 44.7% | | Distributable Income | 28.0 | 34.0 | -17.6% | [Hotel Operating Performance](index=9&type=section&id=Hotel%20Operating%20Performance) This section details the overall performance of the hotel portfolio, compares it to the Hong Kong market, and analyzes individual hotel performance [Overall Hotel Portfolio Performance](index=9&type=section&id=Overall%20Hotel%20Portfolio%20Performance) In H1 2025, the hotel portfolio's total revenue decreased by 4.6% to HKD 737.5 million, driven by declines in room (1.9%) and F&B (8.2%) income, while a slight 1.4 percentage point drop in occupancy to 88.4% and stable average room rates resulted in a 1.5% decrease in revenue per available room Hotel Portfolio Revenue Details (HKD million) | Revenue Details | The Langham Hong Kong | Cordis Hong Kong | Eaton HK | Total | | :--- | :--- | :--- | :--- | :--- | | Rooms | 150.4 | 172.4 | 84.5 | 407.3 | | Food & Beverage | 94.8 | 125.4 | 90.7 | 310.9 | | Other | 2.4 | 8.1 | 8.8 | 19.3 | | Total Revenue | 247.6 | 305.9 | 184.0 | 737.5 | | **Year-on-Year Change** | | | | | | Rooms | -2.8% | -3.6% | 3.2% | -1.9% | | Food & Beverage | -7.5% | -10.4% | -5.9% | -8.2% | | Total Revenue | -5.3% | -5.8% | -1.4% | -4.6% | Key Hotel Portfolio Operating Indicators | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Occupancy Rate | 88.4% | 89.8% | -1.4 percentage points | | Average Room Rate (HKD) | 1,561 | 1,559 | +0.1% | | Revenue Per Available Room (HKD) | 1,379 | 1,400 | -1.5% | [Comparison with Hong Kong Market](index=10&type=section&id=Comparison%20with%20Hong%20Kong%20Market) The Langham Hong Kong and Cordis Hong Kong demonstrated robust performance in the upscale hotel market, with smaller RevPAR declines and higher occupancy rates than the market average, while Eaton HK surpassed the mid-scale market with a 3.7% RevPAR growth, showcasing its effective positioning and operational agility - The Langham Hong Kong and Cordis Hong Kong saw revenue per available room decrease by **2.2%** and **3.3%** respectively, outperforming the **7.9%** decline in the upscale hotel market[26](index=26&type=chunk) - Both hotels' average occupancy rate reached **87.7%**, significantly higher than the market average of **77.0%**[26](index=26&type=chunk) - Eaton HK's revenue per available room increased by **3.7%** year-on-year, surpassing the **6.6%** decline in the mid-scale hotel market[27](index=27&type=chunk) Hong Kong Hotel Market Comparison (H1 2025) | Hotel Category | Occupancy Rate | Average Room Rate (HKD) | Revenue Per Available Room (HKD) | | :--- | :--- | :--- | :--- | | Upscale Hotels | 77.0% | 2,111 | 1,625 | | Mid-scale Hotels | 87.0% | 974 | 847 | | All Hotels | 85.0% | 1,220 | 1,037 | [Individual Hotel Performance Analysis](index=10&type=section&id=Individual%20Hotel%20Performance%20Analysis) The Langham Hong Kong's total revenue decreased by 5.3% due to Mainland visitor market competition and declining F&B income, Cordis Hong Kong's total revenue fell by 5.8% from fewer banquet events, while Eaton HK benefited from diverse activities and prime location, achieving growth in occupancy and average room rate, with RevPAR up 3.7%, despite a drop in F&B revenue due to changing consumer behavior [The Langham Hong Kong](index=10&type=section&id=The%20Langham%20Hong%20Kong) The Langham Hong Kong, with 48% of room revenue from Mainland visitors, maintained its average room rate and achieved 85.6% occupancy, but saw a 2.2% drop in RevPAR and a 7.5% decline in F&B revenue due to changing consumption patterns and fewer banquets, resulting in a 5.3% total revenue decrease - Approximately **48%** of room revenue was generated from Mainland visitors[28](index=28&type=chunk) - Occupancy rate was **85.6%**, average room rate remained stable, and revenue per available room decreased by **2.2%** to **HKD 1,669** per night[28](index=28&type=chunk) - Food and beverage revenue decreased by **7.5%** year-on-year, with total revenue down **5.3%** from the same period last year[28](index=28&type=chunk) [Cordis Hong Kong](index=11&type=section&id=Cordis%20Hong%20Kong) Cordis Hong Kong, primarily serving local and Mainland visitors, maintained its average room rate but experienced a 3.1 percentage point decrease in occupancy, leading to a 3.3% decline in RevPAR, while F&B revenue fell by 10.4% due to fewer banquet events, resulting in a 5.8% total revenue reduction - Average room rate remained unchanged, occupancy decreased by **3.1 percentage points** year-on-year, and revenue per available room decreased by **3.3%** to **HKD 1,424** per night[29](index=29&type=chunk) - Food and beverage revenue decreased by **10.4%** year-on-year, primarily due to fewer banquet events[29](index=29&type=chunk) - Total revenue decreased by **5.8%** from the same period last year[29](index=29&type=chunk) [Eaton HK](index=11&type=section&id=Eaton%20HK) Eaton HK achieved a 90.1% occupancy rate and a 1.9% increase in average room rate, with RevPAR growing 3.7% to HKD 1,003 per night, benefiting from diverse events and its prime location, though overall F&B revenue still declined by 5.9%, leading to a slight 1.4% decrease in total revenue - Occupancy rate reached **90.1%**, average room rate increased by **1.9%** to **HKD 1,114** per night[29](index=29&type=chunk) - Revenue per available room increased by **3.7%** year-on-year to **HKD 1,003** per night[29](index=29&type=chunk) - Overall food and beverage revenue decreased by **5.9%**, mainly due to changing consumer behavior and the trend of local residents dining in Greater Bay Area cities[30](index=30&type=chunk) - Total revenue slightly decreased by **1.4%** year-on-year[30](index=30&type=chunk) [Outlook](index=11&type=section&id=Outlook) This section outlines market prospects, industry challenges, and the company's strategies for navigating the uncertain economic and interest rate environment [Market Outlook and Response Strategies](index=11&type=section&id=Market%20Outlook%20and%20Response%20Strategies) The macroeconomic environment, marked by geopolitical tensions and changing consumer behavior, continues to pressure the hotel industry's profitability with stagnant room rates, prompting the company to optimize pricing and enhance value-added services, while management monitors uncertain interest rates, maintaining a long-term optimistic outlook for Hong Kong's hotel sector despite mixed short-term prospects - The macroeconomic environment is influenced by geopolitical tensions, global trade uncertainties, and changing consumer behavior[31](index=31&type=chunk) - The hotel industry is performing weakly, with room rates difficult to increase, and H2 2025 performance is expected to be similar to H1, with profitability under pressure[31](index=31&type=chunk) - Hotels will optimize dynamic pricing strategies and strengthen their value-added service portfolio to seize new opportunities[32](index=32&type=chunk) - Management will continue to closely monitor interest rate changes and be prepared to take timely measures to mitigate interest rate risks[33](index=33&type=chunk) - The long-term outlook for Hong Kong's hotel industry remains optimistic, benefiting from limited new hotel supply, prime locations, and resilient tourism infrastructure[33](index=33&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) This section provides a review of the Trust Group's net asset value, debt status, liquidity, and asset pledges [Net Asset Value Attributable to Stapled Security Holders](index=12&type=section&id=Net%20Asset%20Value%20Attributable%20to%20Stapled%20Security%20Holders) As of June 30, 2025, the net asset value attributable to stapled security holders was HKD 9,310.0 million, or HKD 2.70 per stapled security, a decrease from December 31, 2024, but still representing a 400.0% premium over the closing price - As of June 30, 2025, the net asset value attributable to stapled security holders was **HKD 9,310.0 million**, or **HKD 2.70** per stapled security[34](index=34&type=chunk) - This represents a decrease from **HKD 2.77** as of December 31, 2024, but still a **400.0% premium** over the closing price of **HKD 0.54**[34](index=34&type=chunk) [Debt Status and Interest Rate Hedging](index=12&type=section&id=Debt%20Status%20and%20Interest%20Rate%20Hedging) The Trust Group's total outstanding borrowings slightly decreased to HKD 6,201.6 million, with secured term loans unchanged, while new interest rate swaps totaling HKD 1,100.0 million increased the total notional amount to HKD 2,600.0 million, hedging 41.9% of outstanding bank borrowings to effectively manage interest rate risk - Total outstanding borrowings (before underwriting fees) were **HKD 6,201.6 million**, a slight decrease from December 31, 2024[35](index=35&type=chunk) - New interest rate swaps totaling **HKD 1,100.0 million** were added, increasing the total notional amount to **HKD 2,600.0 million**[36](index=36&type=chunk) - **41.9%** of outstanding bank borrowings were hedged at a weighted average fixed interest swap rate of **3.59%** per annum (compared to 24.2% hedged at 3.99% as of December 31, 2024)[36](index=36&type=chunk) [Cash Position and Liquidity](index=13&type=section&id=Cash%20Position%20and%20Liquidity) As of June 30, 2025, the Trust Group held HKD 241.2 million in cash balances, a decrease from December 31, 2024, including HKD 51.0 million in restricted bank deposits, complemented by HKD 598.4 million in undrawn revolving loan facilities to enhance liquidity flexibility - Held cash balances of **HKD 241.2 million** (December 31, 2024: HKD 293.4 million), including **HKD 51.0 million** in restricted bank deposits[38](index=38&type=chunk) - Undrawn revolving loan facilities of **HKD 598.4 million** further enhanced liquidity flexibility[38](index=38&type=chunk) [Asset Pledges and Commitments](index=13&type=section&id=Asset%20Pledges%20and%20Commitments) The Trust Group's restricted bank deposits and all investment properties, along with related income, are pledged to secure loan facilities, with no significant commitments as of the reporting period end - Restricted bank deposits and all investment properties, along with proceeds from sales, insurance proceeds, rental income, etc., have been pledged to secure loan facilities[39](index=39&type=chunk) - As of June 30, 2025, the Trust Group had no significant commitments[40](index=40&type=chunk) [Corporate Governance and Stapled Securities](index=13&type=section&id=Corporate%20Governance%20and%20Stapled%20Securities) This section covers the Trust Group's compliance with corporate governance codes and details regarding stapled securities buybacks and issuances [Compliance with Corporate Governance Code](index=13&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Trust Group complied with all applicable corporate governance code provisions and adopted some recommended best practices during the reporting period, with all directors and relevant employees fully adhering to the Securities Dealing Code - The Trust Group complied with all applicable corporate governance code provisions during the reporting period and adopted some recommended best practices[41](index=41&type=chunk) - The Board of Directors of the Trustee-Manager is identical to the Board of Directors of the Company, and directors receive no remuneration, thus nomination and remuneration committee requirements are not applicable[41](index=41&type=chunk) - All directors and relevant employees have fully complied with the Securities Dealing Code[42](index=42&type=chunk) [Stapled Securities Buyback and Issuance](index=14&type=section&id=Stapled%20Securities%20Buyback%20and%20Issuance) The Trust and Company are prohibited from repurchasing or redeeming stapled securities, with 3,444,141,132 units in issue as of June 30, 2025, reflecting an increase of 10,594,487 new units issued as partial payment for the H2 2024 hotel manager fee - The Trust and the Company are prohibited from repurchasing or redeeming their stapled securities[43](index=43&type=chunk) - As of June 30, 2025, the total number of stapled securities in issue was **3,444,141,132**[44](index=44&type=chunk) - During the reporting period, **10,594,487** new stapled securities were issued, representing approximately **0.31%** of the total issued stapled securities, as partial payment for the hotel manager fee for H2 2024[44](index=44&type=chunk)[45](index=45&type=chunk) Changes in Issued Stapled Securities | Date | Details | Number of Issued Stapled Securities | | :--- | :--- | :--- | | December 31, 2024 | Total number of stapled securities in issue | 3,433,546,645 | | February 28, 2025 | Issuance of new stapled securities as partial payment for H2 2024 hotel manager fee | 10,594,487 | | June 30, 2025 | Total number of stapled securities in issue | 3,444,141,132 | [Notes to Financial Statements](index=15&type=section&id=Notes%20to%20Financial%20Statements) This section includes the review of interim results, board information, and detailed notes on the condensed consolidated financial statements [Interim Results Review and Board Information](index=15&type=section&id=Interim%20Results%20Review%20and%20Board%20Information) The Trust Group's unaudited condensed consolidated financial statements were reviewed by the Trustee-Manager, the Company's Audit Committee, and independent auditor Deloitte Touche Tohmatsu in accordance with HK Standard on Review Engagements 2410, with board member information also provided - The interim results have been reviewed by the Audit Committee and by independent auditor Deloitte Touche Tohmatsu in accordance with Hong Kong Standard on Review Engagements 2410[46](index=46&type=chunk) - Board members include Dr. Lo Ka Shui (Chairman), Mr. Brett Stephen BUTCHER (Chief Executive Officer), and several Non-executive Directors and Independent Non-executive Directors[47](index=47&type=chunk)[48](index=48&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=16&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In H1 2025, the Trust Group reported HKD 184,823 thousand in revenue and HKD 173,916 thousand in net property income, but fair value decreases in investment properties and derivative financial instruments led to a pre-tax loss of HKD 136,617 thousand and a loss attributable to stapled security holders of HKD 142,254 thousand, resulting in a basic and diluted loss of 4 HK cents per stapled security Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HKD thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 184,823 | 191,166 | | Net Property Income | 173,916 | 180,956 | | Fair Value (Decrease)/Increase in Investment Properties | (143,327) | 37,373 | | Fair Value Changes in Derivative Financial Instruments | (27,317) | 15,912 | | Finance Costs | (137,726) | (162,843) | | (Loss)/Profit Before Tax | (136,617) | 50,705 | | (Loss)/Profit and Total Comprehensive (Expense)/Income for the Period Attributable to Stapled Security Holders | (142,254) | 43,020 | | (Loss)/Earnings Per Stapled Security (Basic and Diluted) | (4 HK cents) | 1 HK cent | [Condensed Consolidated Statement of Financial Position](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Trust Group's total assets were HKD 16,087,429 thousand, with investment properties at HKD 15,764,000 thousand, resulting in net current assets of HKD 210,227 thousand and total liabilities of HKD 6,777,384 thousand (including HKD 6,168,404 thousand in secured bank loans due after one year), leading to net assets of HKD 9,310,045 thousand Condensed Consolidated Statement of Financial Position (HKD thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-current Assets | 15,773,150 | 15,904,746 | | Investment Properties | 15,764,000 | 15,895,000 | | Total Current Assets | 314,279 | 333,598 | | Total Current Liabilities | 104,052 | 87,180 | | Net Current Assets | 210,227 | 246,418 | | Total Assets Less Current Liabilities | 15,983,377 | 16,151,164 | | Total Non-current Liabilities | 6,673,332 | 6,648,753 | | Net Assets | 9,310,045 | 9,502,411 | | Total Equity | 9,310,045 | 9,502,411 | [Notes: General Information and Basis of Presentation](index=18&type=section&id=Notes%3A%20General%20Information%20and%20Basis%20of%20Presentation) The Trust Group, comprising Langham Hospitality Investments Trust and its Trustee-Manager, Langham Hospitality Investments Management Limited, Langham Hospitality Investments Limited, and its subsidiaries, presents its condensed consolidated financial statements in Hong Kong dollars, prepared under HKAS 34 and Listing Rules, with no significant impact from the first-time application of revised HKFRS accounting standards this period - The Trust Group's principal business activity is property investment, and the condensed consolidated financial statements are presented in Hong Kong dollars[53](index=53&type=chunk)[54](index=54&type=chunk) - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix 16 to the Listing Rules[57](index=57&type=chunk) - Revised Hong Kong Financial Reporting Standards accounting standards were first applied in this interim period, but with no significant impact on the financial position and performance[59](index=59&type=chunk) [Notes: Revenue](index=19&type=section&id=Notes%3A%20Revenue) The Trust Group's revenue primarily derives from basic and variable rental income from master lessee GE (LHIL) Lessee Limited, alongside retail shop rental income from Eaton HK, totaling HKD 184,823 thousand in H1 2025, a decrease from the prior year Revenue Details (HKD thousand) | Revenue Source | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Basic Rent from Master Lessee | 111,575 | 111,885 | | Variable Rent from Master Lessee | 108,520 | 116,226 | | Service Fee Expenses | (36,106) | (37,871) | | Rental Income from Retail Shops at Eaton HK | 834 | 926 | | Total Revenue | 184,823 | 191,166 | [Notes: Segment Information](index=20&type=section&id=Notes%3A%20Segment%20Information) The Group's operating segments focus on the leasing performance of The Langham Hong Kong, Cordis Hong Kong, and Eaton HK, all of which experienced decreased revenue and performance in H1 2025, with Cordis Hong Kong generating the highest revenue, and all hotels seeing a slight decline in fair value by the period end - The Group's operating segments focus on the operating results of leasing The Langham Hong Kong, Cordis Hong Kong, and Eaton HK[62](index=62&type=chunk) Segment Revenue and Performance (H1 2025, HKD thousand) | Hotel | Segment Revenue | Segment Performance | | :--- | :--- | :--- | | The Langham Hong Kong | 77,631 | 62,316 | | Cordis Hong Kong | 97,100 | 75,866 | | Eaton HK | 46,198 | 35,734 | | Total Segments | 220,929 | 173,916 | - As of the end of the reporting period, the fair values of The Langham Hong Kong, Cordis Hong Kong, and Eaton HK were **HKD 5,410 million**, **HKD 6,770 million**, and **HKD 3,584 million** respectively, all showing a decrease from December 31, 2024[66](index=66&type=chunk) [Notes: Finance Costs](index=22&type=section&id=Notes%3A%20Finance%20Costs) Total finance costs for H1 2025 decreased by 15.4% to HKD 137,726 thousand, primarily due to reduced bank borrowing interest, despite interest rate swaps shifting from net income to net expense Finance Costs Details (HKD thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest on Bank Borrowings | 122,155 | 162,063 | | Net Interest on Interest Rate Swaps | 8,346 | (4,151) | | Amortization of Underwriting/Loan Extension Fees | 6,800 | 4,685 | | Interest on Lease Liabilities | 23 | 11 | | Other Borrowing Costs | 402 | 235 | | Total Finance Costs | 137,726 | 162,843 | [Notes: Income Tax Expense](index=22&type=section&id=Notes%3A%20Income%20Tax%20Expense) Income tax expense for H1 2025 was HKD 5,637 thousand, a 27.3% decrease from the same period last year, primarily comprising current tax and deferred tax Income Tax Expense (HKD thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Hong Kong Profits Tax: Current Tax | 2,185 | 1,246 | | Deferred Tax: For the Period | 3,452 | 6,430 | | Total Income Tax Expense | 5,637 | 7,685 | [Notes: Total Distributable Income](index=23&type=section&id=Notes%3A%20Total%20Distributable%20Income) Total distributable income for H1 2025 was HKD 28,027 thousand, a 17.6% decrease from the same period last year, calculated by adjusting non-cash items (such as fair value changes, depreciation, amortization, etc.) from the loss/profit attributable to stapled security holders Total Distributable Income Calculation (HKD thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | (Loss)/Profit for the Period Attributable to Stapled Security Holders | (142,254) | 43,020 | | Adjustment: Fair Value Decrease/(Increase) in Investment Properties | 143,327 | (37,373) | | Adjustment: Fair Value Changes in Derivative Financial Instruments | 27,317 | (15,912) | | Adjustment: Amortization of Underwriting/Loan Extension Fees | 6,800 | 4,685 | | Total Distributable Income | 28,027 | 34,022 | [Notes: Distribution Table](index=24&type=section&id=Notes%3A%20Distribution%20Table) The Board decided not to declare an interim distribution for H1 2025, while the 2024 final distribution of 1.6 HK cents per stapled security was paid to holders on June 4, 2025 - The Board decided not to declare any total distributable income for the six months ended June 30, 2025[72](index=72&type=chunk) - For the financial year ended December 31, 2024, **48%** of the total distributable income was distributed, with a final distribution of **1.6 HK cents** per stapled security[72](index=72&type=chunk) - The total 2024 final distribution of **HKD 55,106 thousand** was paid to stapled security holders on June 4, 2025[72](index=72&type=chunk) Distribution Table Summary (HKD thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Distributable Income for Interim Distribution Period | 28,027 | 34,022 | | Interim Distribution | - | - | | Total Distributable Income for Financial Year Ended December 31, 2024 | 113,022 | 297,613 | | Distributable Income for Final Distribution Period | 54,251 | - | | Interim Distribution Per Stapled Security (HK cents) | - | - | | Final Distribution Per Stapled Security (HK cents) | 1.6 | - | [Notes: (Loss)/Earnings Per Stapled Security](index=25&type=section&id=Notes%3A%20%28Loss%29%2FEarnings%20Per%20Stapled%20Security) In H1 2025, basic and diluted loss per stapled security was 4 HK cents, calculated from a period loss of HKD 142,254 thousand and a weighted average of 3,440,746 thousand stapled securities, with basic and diluted losses being equal due to the loss (Loss)/Earnings Per Stapled Security Calculation | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | (Loss)/Profit for the Period (HKD thousand) | (142,254) | 43,020 | | Weighted Average Number of Stapled Securities (thousand) | 3,440,746 | 3,361,407 | | Basic and Diluted (Loss)/Earnings Per Stapled Security | (4 HK cents) | 1 HK cent | - In H1 2025, basic and diluted loss per stapled security are equal as they are anti-dilutive[75](index=75&type=chunk) [Notes: Trade and Other Receivables and Payables](index=27&type=section&id=Notes%3A%20Trade%20and%20Other%20Receivables%20and%20Payables) As of June 30, 2025, total trade and other receivables, deposits, and prepayments amounted to HKD 22,801 thousand, including HKD 13,314 thousand due from the master lessee, while trade and other payables increased to HKD 50,895 thousand, including HKD 21,772 thousand payable to a fellow subsidiary to be settled by issuing deferred stapled securities Trade and Other Receivables, Deposits and Prepayments (HKD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Amounts Due from Master Lessee | 13,314 | 29,417 | | Deposits and Prepayments | 8,989 | 11,299 | | Trade and Other Receivables, Deposits and Prepayments Classified as Current Assets | 14,579 | 32,678 | Trade and Other Payables, Deposits and Accruals (HKD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables | 50,895 | 34,498 | | Accruals and Other Payables | 13,461 | 23,440 | | Amounts Due for Works | 911 | 2,616 | | Deposits Received | 577 | 577 | | Total | 65,844 | 61,131 | - Trade payables include an amount of **HKD 21,772 thousand** payable to a fellow subsidiary, relating to unpaid hotel management fees and license fees for H2 2024, which will be settled by the allotment and issue of **46,320,885** stapled securities[79](index=79&type=chunk) [Financial Statements of Langham Hospitality Investments Management Limited](index=29&type=section&id=Financial%20Statements%20of%20Langham%20Hospitality%20Investments%20Management%20Limited) This section presents the condensed income statement and statement of financial position for Langham Hospitality Investments Management Limited, along with general information and accounting policies [Condensed Statement of Profit or Loss and Other Comprehensive Income](index=29&type=section&id=Condensed%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Langham Hospitality Investments Management Limited recorded no revenue in both H1 2025 and H1 2024. Administrative expenses are borne by fellow subsidiaries and the Trust estate, resulting in zero profit or loss and total comprehensive income/expense for the period Condensed Statement of Profit or Loss and Other Comprehensive Income of Langham Hospitality Investments Management Limited (HKD) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | - | - | | Administrative Expenses | 11,857 | 11,857 | | Less: Amounts Borne by Fellow Subsidiaries and the Trust Estate | (11,857) | (11,857) | | Profit or Loss and Total Comprehensive Income/Expense for the Period | - | - | [Condensed Statement of Financial Position](index=30&type=section&id=Condensed%20Statement%20of%20Financial%20Position) The condensed statement of financial position for Langham Hospitality Investments Management Limited shows that as of June 30, 2025, and December 31, 2024, its cash, net assets, share capital, and total equity all amounted to HKD 1 Condensed Statement of Financial Position of Langham Hospitality Investments Management Limited (HKD) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | 1 | 1 | | Net Assets | 1 | 1 | | Share Capital | 1 | 1 | | Total Equity | 1 | 1 | [Notes: General Information and Accounting Policies](index=31&type=section&id=Notes%3A%20General%20Information%20and%20Accounting%20Policies) Langham Hospitality Investments Management Limited's principal business is managing the Trust as its Trustee-Manager, with management costs and expenses deducted from the Trust estate and no management fees charged, and its condensed financial statements are presented in Hong Kong dollars, prepared under HKAS 34 with consistent accounting policies, showing no significant impact from the first-time application of revised HKFRS accounting standards this period - Langham Hospitality Investments Management Limited's principal business is acting as the Trustee-Manager for Langham Hospitality Investments, managing the Trust[84](index=84&type=chunk) - The costs and expenses of managing the Trust are deductible from the Trust estate, and the Company does not charge any management fees[84](index=84&type=chunk) - The condensed financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting", with accounting policies consistent with the annual financial statements[87](index=87&type=chunk)[88](index=88&type=chunk) - The revised Hong Kong Financial Reporting Standards accounting standards adopted in this interim period had no significant impact on the amounts reported and/or disclosures contained in these condensed financial statements[90](index=90&type=chunk)

[Report Statements and GEM Characteristics](index=1&type=section&id=Report%20Statements%20and%20GEM%20Characteristics) This section outlines disclaimers regarding the announcement's content and highlights the higher investment risks associated with the GEM market [Disclaimer and GEM Market Risks](index=1&type=section&id=Disclaimer%20and%20GEM%20Market%20Risks) Hong Kong Exchanges and the Stock Exchange are not responsible for this announcement's content, noting GEM's higher investment risks and potential for significant market volatility - Hong Kong Exchanges and the Stock Exchange are not responsible for the accuracy or completeness of this announcement's content and assume no liability for any losses arising from it[1](index=1&type=chunk) - The GEM market is positioned as a listing platform for small and medium-sized companies, which carry higher investment risks, and their securities may experience significant market volatility with no guarantee of high liquidity[3](index=3&type=chunk) [Directors' Responsibility Statement](index=1&type=section&id=Directors'%20Responsibility%20Statement) The company's directors collectively and individually assume full responsibility for this announcement, confirming its accuracy, completeness, and absence of misleading information - The company's directors collectively and individually assume full responsibility for this announcement, confirming the information is accurate, complete, not misleading or fraudulent, and without omissions[4](index=4&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) This section provides a concise overview of the company's key financial performance indicators for the period [Financial Highlights Overview](index=2&type=section&id=Financial%20Highlights%20Overview) For the six months ended June 30, 2025, revenue decreased by 8.2% to RMB 80,368 '000, while profit attributable to owners declined significantly by 34.6% to RMB 20,490 '000 Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | Change % | | :--- | :--- | :--- | :--- | | Revenue | 80,368 | 87,553 | -8.2 | | Profit for the period attributable to owners of the Company | 20,490 | 31,336 | -34.6 | | Basic earnings per share | RMB 2.56 cents | RMB 3.92 cents | -34.6 | [Interim Results](index=3&type=section&id=Interim%20Results) This section presents the unaudited condensed consolidated statements of comprehensive income and financial position for the interim period [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group reported revenue of RMB 80,368 '000 and gross profit of RMB 48,669 '000, with profit attributable to owners at RMB 20,490 '000 Condensed Consolidated Statement of Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 80,368 | 87,553 | | Cost of services | (31,699) | (35,443) | | Gross profit | 48,669 | 52,110 | | Other income and gains, net | 5,675 | 9,097 | | Selling and distribution expenses | (227) | (591) | | Administrative expenses | (14,044) | (9,441) | | Finance costs | (29) | (44) | | Profit before income tax | 40,044 | 51,131 | | Income tax expense | (11,474) | (8,756) | | Profit for the period | 28,570 | 42,375 | | **Profit for the period attributable to owners of the Company** | **20,490** | **31,336** | | **Profit for the period attributable to non-controlling interests** | **8,080** | **11,039** | [Unaudited Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As at June 30, 2025, total assets were RMB 926,708 '000, with total liabilities of RMB 170,000 '000, resulting in net assets of RMB 756,721 '000 and total equity attributable to owners of RMB 569,145 '000 Condensed Consolidated Statement of Financial Position as at June 30, 2025 | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 516,486 | 502,972 | | Current assets | 410,222 | 405,662 | | **Total assets** | **926,708** | **908,634** | | **Liabilities** | | | | Current liabilities | 132,210 | 143,679 | | Non-current liabilities | 37,777 | 36,229 | | **Total liabilities** | **170,000** | **179,908** | | **Net assets** | **756,721** | **728,726** | | **Equity** | | | | Equity attributable to owners of the Company | 569,145 | 552,078 | | Non-controlling interests | 187,576 | 176,648 | | **Total equity** | **756,721** | **728,726** | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the interim financial statements, covering general information, accounting policies, and specific financial items [General Information](index=7&type=section&id=General%20Information) The company, incorporated in the Cayman Islands, primarily engages in investment holding, with its subsidiaries operating port services in Chizhou, Anhui Province, China, and listed on GEM in 2018 - The Company was incorporated in the Cayman Islands on October 30, 2017, and listed on GEM of the Stock Exchange of Hong Kong on July 10, 2018[11](index=11&type=chunk) - The Company's principal business is investment holding, with its subsidiaries primarily engaged in port operations in Chizhou, Anhui Province, China[11](index=11&type=chunk) - The unaudited condensed consolidated financial statements are presented in RMB and have been reviewed by the audit committee[13](index=13&type=chunk)[14](index=14&type=chunk) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The interim financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, consistent with annual financial statements, except for new HKFRSs effective January 1, 2025 - The unaudited condensed consolidated financial statements are 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 provisions of the GEM Listing Rules[15](index=15&type=chunk) - The accounting policies used are consistent with those in the annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of new and revised Hong Kong Financial Reporting Standards effective January 1, 2025[16](index=16&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) The Group operates solely in port services, thus no segment information is presented, with all revenue and major non-current assets originating from China - The Group has only one operating segment, which is the provision of port services, and therefore no segment information is presented in the condensed consolidated financial statements[18](index=18&type=chunk) - The Group provides port services in China, and all revenue for the six months ended June 30, 2025, and 2024, was derived from China[19](index=19&type=chunk) [Revenue](index=8&type=section&id=Revenue) Revenue, primarily from port services, decreased to RMB 80,368 '000 for the six months ended June 30, 2025, with bulk and general cargo handling services contributing the largest share - Revenue refers to income derived from the provision of port services (excluding value-added tax)[20](index=20&type=chunk) Revenue Composition (For the Six Months Ended June 30) | Revenue Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Port service income | 80,368 | 87,553 | | Provision of stevedoring services - bulk and general cargo | 73,368 | 78,100 | | Provision of stevedoring services - containers | 1,689 | 1,433 | | Provision of ancillary port services | 5,311 | 8,020 | [Profit Before Income Tax](index=10&type=section&id=Profit%20Before%20Income%20Tax) Profit before income tax for the six months ended June 30, 2025, decreased to RMB 40,044 '000, primarily due to various operating expenses including employee benefits and depreciation Items Deducted/(Credited) in Arriving at Profit Before Income Tax (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of inventories recognized as an expense | 1,067 | 1,926 | | Employee benefit expenses | 13,598 | 14,073 | | Direct operating expenses from investment properties that generated rental income | 631 | 373 | | Depreciation of property, plant and equipment | 12,751 | 12,359 | | Repair and maintenance expenses | 2,413 | 3,078 | | Subcontracting fees | 6,541 | 9,022 | | Amortisation of deferred government grants | (445) | (445) | | Gain on land resumption | – | (924) | - For the six months ended June 30, 2025, the Group's research and development expenses were approximately **RMB 2,584,000**, of which employee benefit expenses were approximately **RMB 1,736,000**[25](index=25&type=chunk) - A gain on land resumption of approximately **RMB 924,000** was recorded in the corresponding period of 2024, due to Chizhou Port Holdings entering into a compensation agreement with Chizhou Economic and Technological Development Zone Management Committee for the resumption of certain leased land[25](index=25&type=chunk) [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) Income tax expense increased to RMB 11,474 '000 for the six months ended June 30, 2025, primarily due to the expiration of a tax holiday for Chizhou Port Holdings, despite Chizhou Niutoushan enjoying a preferential tax rate Income Tax Expense (For the Six Months Ended June 30) | Tax Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax - PRC Enterprise Income Tax | 9,183 | 7,191 | | Deferred tax charged to profit or loss | 2,291 | 1,565 | | **Total income tax expense** | **11,474** | **8,756** | - Chizhou Port Holdings' eligible projects concluded their three-year 50% tax reduction incentive on December 31, 2024, resulting in the cessation of this benefit in 2025[27](index=27&type=chunk) - Chizhou Port Holdings and Chizhou Niutoushan, as high-tech enterprises, enjoy a preferential tax rate of **15%** in specific fiscal years[27](index=27&type=chunk)[28](index=28&type=chunk) [Earnings Per Share](index=12&type=section&id=Earnings%20Per%20Share) Basic earnings per share for the six months ended June 30, 2025, decreased to RMB 2.56 cents, with diluted earnings per share being identical due to no potential dilutive shares Earnings Per Share Calculation (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 20,490 (RMB '000) | 31,336 (RMB '000) | | Weighted average number of ordinary shares in issue during the period | 800,000,000 shares | 800,000,000 shares | | Basic and diluted earnings per share | RMB 2.56 cents | RMB 3.92 cents | [Dividends](index=12&type=section&id=Dividends) The Board of Directors does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[32](index=32&type=chunk) [Trade Receivables](index=12&type=section&id=Trade%20Receivables) Net trade receivables decreased to RMB 7,118 '000 as at June 30, 2025, with most receivables falling within a 30-day credit period Net Trade Receivables | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables | 7,119 | 7,867 | | Less: Impairment allowance | (1) | (1) | | **Net trade receivables** | **7,118** | **7,866** | - The credit period for trade receivables generally ranges from **10 to 55 days**[35](index=35&type=chunk) Aging Analysis of Trade Receivables (Net of Impairment Allowance) | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 7,118 | 6,117 | | 31 to 90 days | – | 1,082 | | 91 to 120 days | – | 667 | | 121 to 365 days | – | – | | Over one year | – | – | | **Total** | **7,118** | **7,866** | [Trade Payables](index=13&type=section&id=Trade%20Payables) Total trade payables increased to RMB 6,768 '000 as at June 30, 2025, with a typical credit period of 30 days - The credit period for trade payables is generally **30 days**[36](index=36&type=chunk) Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 2,932 | 2,833 | | 31 to 90 days | 1,783 | 428 | | 91 to 120 days | 106 | 39 | | 121 to 365 days | 282 | 122 | | Over one year | 1,665 | 1,990 | | **Total** | **6,768** | **5,412** | [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business performance, financial results, and future outlook, including key influencing factors and strategic initiatives [Business Review](index=14&type=section&id=Business%20Review) As an inland port operator in China, the Group experienced an 8.7% decrease in bulk and general cargo throughput but a 5.0% increase in container throughput for H1 2025, leading to an 8.2% revenue decline - The Group is an inland port operator in China, primarily providing port logistics services, operating JiangKou Port Area and Niutoushan Port Area, and is the largest public port operator in Chizhou City[38](index=38&type=chunk) Business Performance for the Six Months Ended June 30, 2025 | Indicator | June 30, 2025 | June 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | Total bulk and general cargo throughput | 12.7 million tons | 13.9 million tons | -8.7 | | Total container throughput | 8,825 TEUs | 8,406 TEUs | +5.0 | | Revenue | RMB 80.4 million | RMB 87.6 million | -8.2 | | Profit | RMB 28.6 million | RMB 42.4 million | -32.6 | [Influencing Factors and Outlook Analysis](index=14&type=section&id=Influencing%20Factors%20and%20Outlook%20Analysis) Port throughput is affected by global economic pressures, adverse weather, and domestic economic downturns, but the Group anticipates stable freight volumes and new growth from major projects in H2 2025 - Key factors affecting port throughput include: global economic recovery pressure in the international environment, leading to decreased demand for dry bulk shipping; increased domestic economic downturn pressure, sluggish real estate and infrastructure, and a weak market for non-metallic mineral building materials[40](index=40&type=chunk)[43](index=43&type=chunk) - Looking ahead to H2 2025, the Chinese economy is expected to remain relatively subdued but generally stable, with governments at all levels promoting high-quality development, and total port freight volume maintaining a relatively stable and normal range[41](index=41&type=chunk) - The Group is advancing major projects such as the dedicated railway line to the port and the JiangKou Terminal Phase IV, anticipating new rapid development after the railway line becomes operational[42](index=42&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) This financial review details the Group's revenue decline, stable gross margin, increased administrative and income tax expenses, and a decrease in profit for the period and net profit margin [Revenue](index=16&type=section&id=Financial%20Review%2FRevenue) Total revenue for the six months ended June 30, 2025, decreased by 8.2% to RMB 80,368 '000, primarily due to reduced cargo throughput and a decline in logistics agency business Revenue Composition and Changes (For the Six Months Ended June 30) | Revenue Category | 2025 (RMB '000) | 2024 (RMB '000) | Increase/(Decrease) (RMB '000) | Change % | | :--- | :--- | :--- | :--- | :--- | | Stevedoring services - bulk and general cargo | 73,368 | 78,100 | (4,732) | (6.1) | | Stevedoring services - containers | 1,689 | 1,433 | 256 | 17.9 | | Subtotal | 75,057 | 79,533 | (4,476) | (5.6) | | Ancillary port services | 5,311 | 8,020 | (2,709) | (33.8) | | **Total revenue** | **80,368** | **87,553** | **(7,185)** | **(8.2)** | Changes in Cargo Throughput and Container Throughput (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | Total cargo throughput ('000 tons) | 12,711 | 13,915 | (1,204) | (8.7) | | Container throughput (TEUs) | 8,825 | 8,406 | 419 | 5.0 | - The decrease in revenue was primarily due to reduced cargo handling income (a **1.2 million tons** decrease in cargo throughput) and a decline in logistics agency business[45](index=45&type=chunk) [Cost of Services](index=17&type=section&id=Cost%20of%20Services) Cost of services decreased by 10.5% to approximately RMB 31.7 million for the six months ended June 30, 2025, mainly due to reduced staff costs, subcontracting fees, and maintenance expenses - Cost of services primarily includes depreciation of property, plant and equipment, staff costs, subcontracting fees, fuel and oil, consumables, electricity, and repair and maintenance expenses[46](index=46&type=chunk) - For the six months ended June 30, 2025, cost of services was approximately **RMB 31.7 million**, a decrease of **RMB 3.7 million** or approximately **10.5%** compared to the same period last year[46](index=46&type=chunk) - The decrease in cost of services was mainly due to a combined reduction of approximately **RMB 2.7 million** in staff costs and subcontracting fees (due to an **8.7%** decrease in cargo throughput), and a decrease of approximately **RMB 0.7 million** in repair and maintenance expenses[46](index=46&type=chunk) [Gross Profit and Gross Margin](index=17&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by 6.6% to approximately RMB 48.7 million for the six months ended June 30, 2025, while the gross margin remained stable at approximately 60.6% Changes in Gross Profit and Gross Margin (For the Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Increase/(Decrease) (RMB '000) | Change % | | :--- | :--- | :--- | :--- | :--- | | Gross profit | 48,669 | 52,110 | (3,441) | (6.6) | | Gross margin (%) | 60.6 | 59.5 | 1.1 | N/A | - The decrease in gross profit was primarily due to an **8.2%** reduction in total revenue compared to the same period last year[47](index=47&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) Administrative expenses increased by 48.8% for the six months ended June 30, 2025, primarily due to higher other taxes from land use rights acquisition and increased legal and professional fees - Administrative expenses increased by approximately **RMB 4.6 million** or **48.8%**[48](index=48&type=chunk) - Key reasons include: an increase of approximately **RMB 2.5 million** in other taxes due to related taxes from a subsidiary's acquisition of land use rights; and an increase of approximately **RMB 1.7 million** in legal and professional fees due to more compliance activities during the period[48](index=48&type=chunk) [Income Tax Expense](index=18&type=section&id=Financial%20Review%2FIncome%20Tax%20Expense) Income tax expense increased by 30.7% to approximately RMB 11.5 million for the six months ended June 30, 2025, mainly due to the expiration of a tax holiday for Chizhou Port Holdings - Income tax expense was approximately **RMB 11.5 million**, an increase of **RMB 2.7 million** or approximately **30.7%** compared to the same period last year[49](index=49&type=chunk) - The increase in income tax was mainly due to the expiration of Chizhou Port Holdings' eligible projects' three-year 50% tax reduction incentive on December 31, 2024, resulting in taxation at the standard rate of **25%** in 2025[49](index=49&type=chunk) - For the six months ended June 30, 2025, the effective tax rate was approximately **28.7%**, and the adjusted effective tax rate after excluding deferred tax expense was approximately **22.9%**, which was lower than the standard tax rate mainly due to the high-tech enterprise tax incentive for Chizhou Niutoushan[49](index=49&type=chunk) [Profit for the Period](index=18&type=section&id=Profit%20for%20the%20Period) The Group recorded a profit of approximately RMB 28.6 million for the six months ended June 30, 2025, a decrease from the prior year, with the net profit margin falling to 35.5% Profit for the Period and Net Profit Margin (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | RMB 28.6 million | RMB 42.4 million | | Net profit margin | 35.5% | 48.4% | [Capital Structure, Liquidity, and Financial Resources](index=18&type=section&id=Capital%20Structure%2C%20Liquidity%2C%20and%20Financial%20Resources) The Group's capital structure remains unchanged since listing, funded by operating cash and equity, with strong financial health, RMB 373.3 million in cash, no outstanding debt, and foreign exchange risk monitoring - The Company's share capital consists solely of ordinary shares, and its capital structure has remained unchanged since its listing on July 10, 2018[51](index=51&type=chunk) - The Group primarily funds its liquidity and capital requirements through cash generated from operations, bank borrowings (if any), and equity contributions from shareholders[51](index=51&type=chunk) Liquidity and Financial Resources (As at June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Bank and cash balances | 373.3 | 379.9 | | Total equity attributable to owners of the Company | 569.1 | 552.1 | | Outstanding debt | Nil | Nil | - The Directors believe the Group's financial position is sound, sufficient to expand its business and achieve its business objectives[53](index=53&type=chunk) - The Group monitors foreign exchange risks and plans to enter into foreign currency options or forward contracts when appropriate[55](index=55&type=chunk) [Significant Investments and Commitments](index=20&type=section&id=Significant%20Investments%20and%20Commitments) The Group committed RMB 10 million to Chizhou Tiehang for a 5% stake in November 2024, with an additional RMB 66.765 million capital commitment approved in March 2025, and no other major acquisitions or disposals during the period - Chizhou Port Holdings entered into a joint venture agreement with four investors on November 9, 2024, to inject **RMB 10,000,000** into Chizhou Tiehang in exchange for a **5%** equity interest[58](index=58&type=chunk) - On March 12, 2025, Chizhou Tiehang's shareholders' meeting approved an increase in additional capital commitment of approximately **RMB 1,335,303,000**, requiring Chizhou Port Holdings to contribute an additional approximately **RMB 66,765,000**[58](index=58&type=chunk) - As at June 30, 2025, Chizhou Port Holdings had injected **RMB 17,365,000** into Chizhou Tiehang[58](index=58&type=chunk) - For the six months ended June 30, 2025, the Group did not acquire or hold any significant investments, nor were there any significant acquisitions or disposals involving subsidiaries, associates, and joint ventures[59](index=59&type=chunk)[60](index=60&type=chunk) Employees and Remuneration (As at June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of employees | Approximately 200 | 205 | | Total staff costs (for six months) | RMB 13.6 million | RMB 14.1 million | [Asset Pledges and Subsequent Events](index=21&type=section&id=Asset%20Pledges%20and%20Subsequent%20Events) As at June 30, 2025, the Group pledged property, plant, and equipment totaling RMB 123.6 million and investment properties totaling RMB 14.5 million, with no significant subsequent events or interim dividend recommendations Pledged Assets (As at June 30) | Asset Category | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Property, plant and equipment | 123.6 | 127.4 | | Investment properties | 14.5 | 14.1 | - As at June 30, 2025, the Group had no contingent liabilities[57](index=57&type=chunk) - No significant events affecting the Group have occurred since the end of the reporting period and up to the date of this announcement[65](index=65&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[66](index=66&type=chunk) [Latest Business Developments](index=21&type=section&id=Latest%20Business%20Developments) Recent business developments include a construction contract for JiangKou Terminal Phase IV, increased capital commitment to Chizhou Tiehang, and the transfer of land use rights to Chizhou Haishun - Chizhou Haishun (a subsidiary in which the Company indirectly holds a **43.2%** effective equity interest) entered into a construction contract with an independent contractor for the JiangKou Terminal Phase IV project, with a consideration of **RMB 146,485,000**[67](index=67&type=chunk) - Chizhou Tiehang's shareholders' meeting approved an increase in additional capital commitment of approximately **RMB 1,335,303,000**, requiring Chizhou Port Holdings to contribute an additional approximately **RMB 66,765,000** to Chizhou Tiehang, with a further injection of **RMB 5,850,000** for the six months ended June 30, 2025[67](index=67&type=chunk) - Chizhou Port Holdings transferred the project land use rights, covering an area of approximately **74,798 square meters**, to Chizhou Haishun for a consideration of approximately **RMB 17,952,000**, and Chizhou Haishun has obtained the property ownership certificate[68](index=68&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) This section covers details on listed securities transactions, competitive interests, and changes in director information [Listed Securities Transactions and Competing Interests](index=22&type=section&id=Listed%20Securities%20Transactions%20and%20Competing%20Interests) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period, and directors confirmed no competing interests with the Group's business - 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[69](index=69&type=chunk) - The Directors confirm that none of the Company's controlling shareholders or Directors and their respective close associates have any interests in any business that competes directly or indirectly with the Group's business[70](index=70&type=chunk) [Changes in Directors' Information](index=22&type=section&id=Changes%20in%20Directors'%20Information) Ms. Zhang Huifeng, a non-executive director, was appointed as a member of the Board's Nomination Committee, effective June 16, 2025 - Ms. Zhang Huifeng, a non-executive director, has been appointed as a member of the Board's Nomination Committee, effective June 16, 2025[71](index=71&type=chunk) [Corporate Governance](index=23&type=section&id=Corporate%20Governance) This section details the company's adherence to corporate governance codes, directors' securities dealing code, and the audit committee's review of financial statements [Corporate Governance Code](index=23&type=section&id=Corporate%20Governance%20Code) The company fully complied with the applicable code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules throughout the reporting period - The Company has complied with the applicable code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules throughout the reporting period, with no deviations[72](index=72&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=23&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The Group adopted the Model Code for Securities Transactions by Directors as per GEM Listing Rules, and all directors confirmed compliance during the reporting period - The Group has adopted the required standards for dealing set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for directors' securities transactions in the Company's shares[73](index=73&type=chunk) - Following specific enquiries with the Directors, all Directors have confirmed their compliance with the required standards set out in the code of conduct throughout the reporting period[73](index=73&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited interim financial statements and found them compliant with accounting standards and disclosure requirements - The Audit Committee comprises three independent non-executive directors: Mr. Zhang Shimin (Chairman), Mr. Nie Rui, and Mr. Zheng Yanbin[74](index=74&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that the results comply with applicable accounting standards, the GEM Listing Rules, other applicable legal requirements, and provide adequate disclosures[74](index=74&type=chunk) [Board Members and Report Publication](index=24&type=section&id=Board%20Members%20and%20Report%20Publication) As of the announcement date, the Board consists of two executive, one non-executive, and three independent non-executive directors, with this announcement published on the Stock Exchange and company websites - As of the date of this announcement, the executive directors are Mr. Gui Sihai and Mr. Huang Xueliang; the non-executive director is Ms. Zhang Huifeng; and the independent non-executive directors are Mr. Nie Rui, Mr. Zhang Shimin, and Mr. Zheng Yanbin[76](index=76&type=chunk) - This announcement will be published on the Stock Exchange's website and the Company's website for at least seven days from the date of publication[76](index=76&type=chunk)

[Company Overview and Performance Highlights](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88%E4%B8%8E%E4%B8%9A%E7%BB%A9%E4%BA%AE%E7%82%B9) [Interim Performance Summary](index=2&type=section&id=%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%94%E4%BA%94%E5%B9%B4%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88%20MMG%20%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) MMG achieved significant financial and operational growth in H1 2025, with net profit after tax increasing over 600%, and record-high EBITDA and EBIT, driven by increased copper production, higher commodity prices, and reduced Las Bambas unit costs. The company's balance sheet strengthened, with record-low net debt and leverage, and the first dividend from Las Bambas - In H1 2025, MMG's Total Recordable Injury Frequency (TRIF) was **1.81 per million work hours**, an improvement from **2.06** for the full year 2024[4](index=4&type=chunk) 2025 H1 Key Financial Indicators Comparison (USD millions) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Revenue | 2,817.0 | 1,918.2 | 47% | | EBITDA | 1,539.9 | 779.0 | 98% | | EBIT | 1,058.8 | 311.1 | 240% | | Net Profit After Tax | 566.3 | 79.5 | 612% | | Net Cash Flow from Operating Activities | 1,185.0 | 515.3 | 130% | | Basic Earnings Per Share | 2.80 US cents | 0.23 US cents | 1117% | - MMG's balance sheet strengthened, with net debt decreasing by **$903.3 million** from year-end 2024, and leverage ratio falling from **41% to 33%**[4](index=4&type=chunk) - Las Bambas distributed its first dividend to MMG and its joint venture partners, totaling **$276.5 million**[4](index=4&type=chunk) - MMG's total payable copper sales reached a record high since 2018, totaling **237,651 tonnes** in H1 2025[4](index=4&type=chunk) - Las Bambas' copper in concentrate production increased by **67% to 210,637 tonnes**, and EBITDA grew by **122% to $1,310.5 million**[4](index=4&type=chunk) - Kinsevere's cathode copper production increased by **19% to 25,425 tonnes**, but EBITDA decreased by **26% to $30.4 million**, affected by unstable power supply[4](index=4&type=chunk) - Khoemacau's copper in concentrate production increased by **121% to 22,043 tonnes**, and EBITDA rose by **167% to $89.6 million**, primarily due to extended ownership period and higher commodity prices[4](index=4&type=chunk) - Dugald River's zinc in concentrate production increased by **6% to 84,426 tonnes**, but EBITDA decreased by **18% to $66.0 million**, offset by lower lead and silver production and increased operating expenses[4](index=4&type=chunk) - Rosebery's zinc in concentrate production decreased by **22% to 23,505 tonnes**, and EBITDA decreased by **20% to $54.8 million**, affected by lower ore grades and equipment reliability challenges[7](index=7&type=chunk) - The company maintains its 2025 copper production guidance of **466,000-522,000 tonnes** and zinc production guidance of **215,000-240,000 tonnes**. C1 cost guidance for both Las Bambas and Rosebery has been lowered[7](index=7&type=chunk) - Total capital expenditure for 2025 is projected to be between **$1,100 million and $1,250 million**, primarily for expansion projects at Las Bambas, Khoemacau, and Kinsevere[7](index=7&type=chunk) [Chairman's Letter](index=4&type=section&id=%E8%91%A3%E4%BA%8B%E9%95%B7%E5%87%BD%E4%BB%B6) Chairman Xu Jiqing highlighted MMG's record-breaking profitability in H1 2025, with new highs in EBITDA and EBIT, significant net profit growth, and successful debt reduction. The company continues to invest in strategic capital programs, including the acquisition of Brazil Nickel, for long-term growth and diversification. The Chairman reaffirmed commitment to safety, sustainability, and community engagement, maintaining an optimistic outlook on future commodity markets - MMG achieved record-breaking profitability in the first half, with EBITDA and EBIT reaching new highs, and net profit after tax of **$566.3 million**, with profit attributable to equity holders of the Company at **$340 million**[8](index=8&type=chunk) - MMG's net debt decreased by **$903.3 million** from year-end 2024, and the Group's leverage ratio fell from **41% to 33%**[8](index=8&type=chunk) - The company announced in February the acquisition of Brazil Nickel from Anglo American, expected to be completed by year-end 2025, to expand its footprint in future-facing minerals[9](index=9&type=chunk) - MMG continues to build and deepen relationships with communities where it operates, advancing shared development programs and fulfilling its commitment to economic and social inclusion[9](index=9&type=chunk) - Looking ahead, the renewable energy transition, electrification, infrastructure development, and new technology investments underscore the critical role of copper, zinc, cobalt, and nickel in building a sustainable future, with the global outlook remaining optimistic[9](index=9&type=chunk) [CEO's Report](index=5&type=section&id=%E8%A1%8C%E6%94%BF%E7%B8%BD%E8%A3%81%E5%A0%B1%E5%91%8A) CEO Jing Zhao's inaugural interim report noted MMG's leapfrog operational and financial growth in H1 2025, with continuous improvement in safety performance. The company's financial position is robust, with substantial debt reduction and the first Las Bambas dividend. Copper sales and production significantly increased, while Australian zinc production remained stable. The company maintains its full-year production guidance and is committed to enhancing long-term shareholder value - MMG achieved leapfrog growth in both operations and financials in H1 2025, with encouraging improvements in safety performance[12](index=12&type=chunk) - MMG's balance sheet also reached its most robust level in a decade, benefiting from improved profitability and cash flow generation-driven debt reduction[12](index=12&type=chunk) - Copper sales and production from the company's three copper mines significantly increased, with strong performance from Las Bambas, and Khoemacau and Kinsevere in ramp-up phases[13](index=13&type=chunk) - MMG maintains its production guidance for the year, with total copper production up to **522,000 tonnes** and zinc production up to **240,000 tonnes**[13](index=13&type=chunk) - The company will continue to monitor market dynamics while focusing on enhancing its ability to create long-term value for shareholders, with a focus on safe and reliable operations, strict cost and capital management, and maintaining long-term growth momentum in the second half[14](index=14&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Consolidated Financial Performance](index=6&type=section&id=%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%94%E4%BA%94%E5%B9%B4%E5%85%AD%E6%9C%88%E4%B8%89%E5%8D%81%E6%97%A5%E6%AD%A2%E5%85%AD%E5%80%8B%E6%9C%88%E6%A5%AD%E7%B8%BE) The Group's H1 2025 revenue increased by 47% to $2,817.0 million, with net profit after tax surging 612% to $566.3 million, primarily due to higher sales volumes and commodity prices. Profit attributable to equity holders of the Company grew 1,511% to $340.0 million 2025 H1 Consolidated Statement of Profit or Loss Summary (USD millions) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Revenue | 2,817.0 | 1,918.2 | 47% | | EBITDA | 1,539.9 | 779.0 | 98% | | EBIT | 1,058.8 | 311.1 | 240% | | Profit Before Income Tax | 919.3 | 143.1 | 542% | | Profit for the Period After Income Tax | 566.3 | 79.5 | 612% | | Profit Attributable to Equity Holders of the Company | 340.0 | 21.1 | 1,511% | - Profit attributable to non-controlling interests increased by **288% to $226.3 million**, primarily from Las Bambas and Khoemacau[18](index=18&type=chunk)[19](index=19&type=chunk) [Overview of Operating Results](index=7&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE%E6%A6%82%E6%B3%81) The Group's H1 2025 revenue grew 47% to $2,817.0 million, driven by increased sales volumes ($678.1 million) and higher commodity prices ($220.7 million). Revenue from copper, gold, silver, and cobalt significantly increased, while lead and molybdenum revenue declined 2025 H1 Segment Revenue and EBITDA (USD millions) | Segment | 2025 Revenue | 2024 Revenue | Revenue Change % | 2025 EBITDA | 2024 EBITDA | EBITDA Change % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Las Bambas | 2,006.8 | 1,256.0 | 60% | 1,310.5 | 590.3 | 122% | | Kinsevere | 234.6 | 188.3 | 25% | 30.4 | 41.4 | (27%) | | Khoemacau | 199.9 | 90.2 | 122% | 89.6 | 33.5 | 167% | | Dugald River | 227.5 | 226.1 | 1% | 66.0 | 80.2 | (18%) | | Rosebery | 141.0 | 152.7 | (8%) | 54.8 | 68.3 | (20%) | | Total | 2,817.0 | 1,918.2 | 47% | 1,539.9 | 779.0 | 98% | - Increased sales volumes contributed **$678.1 million**, primarily driven by higher copper concentrate sales from Las Bambas (**$603.0 million**) and Khoemacau (**$106.9 million**)[23](index=23&type=chunk) - Higher commodity prices contributed **$220.7 million**, mainly from increased prices for copper (**$140.6 million**), gold (**$40.2 million**), silver (**$27.9 million**), and zinc (**$16.7 million**)[23](index=23&type=chunk) 2025 H1 Revenue by Commodity (USD millions) | Commodity | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Copper | 2,208.6 | 1,373.0 | 61% | | Zinc | 233.5 | 224.2 | 4% | | Lead | 32.0 | 50.0 | (36%) | | Gold | 148.6 | 89.0 | 67% | | Silver | 139.9 | 112.2 | 25% | | Molybdenum | 46.9 | 68.5 | (32%) | | Cobalt | 7.5 | 1.3 | 477% | | Total | 2,817.0 | 1,918.2 | 47% | 2025 H1 LME Average Cash Price (USD) | Commodity | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Copper (USD/tonne) | 9,432 | 9,097 | 4% | | Zinc (USD/tonne) | 2,739 | 2,641 | 4% | | Lead (USD/tonne) | 1,959 | 2,121 | (8%) | | Gold (USD/ounce) | 3,071 | 2,205 | 39% | | Silver (USD/ounce) | 32.77 | 26.11 | 26% | | Molybdenum (USD/tonne) | 45,444 | 45,994 | (1%) | | Cobalt (USD/tonne) | 29,019 | 27,174 | 7% | 2025 H1 Payable Metal in Products Sold | Commodity | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Copper (tonnes) | 237,651 | 157,503 | 51% | | Zinc (tonnes) | 89,201 | 92,464 | (4%) | | Lead (tonnes) | 16,061 | 23,961 | (33%) | | Gold (ounces) | 47,968 | 39,311 | 22% | | Silver (ounces) | 4,337,251 | 4,245,706 | 2% | | Molybdenum (tonnes) | 1,207 | 1,635 | (26%) | | Cobalt (tonnes) | 482 | 92 | 424% | [Operating Expenses and Finance Costs](index=9&type=section&id=%E7%B6%93%E7%87%9F%E8%B2%BB%E7%94%A8%E8%88%87%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) The Group's total operating expenses increased 18% to $1,258.2 million in H1 2025, mainly due to higher production costs at Las Bambas, unfavorable inventory changes at Kinsevere, and a full operating period for Khoemacau. Exploration expenses rose 56%, while Khoemacau acquisition and integration costs significantly decreased. Net finance costs fell 17%, benefiting from lower debt balances and reduced interest rates - Total operating expenses increased by **$195.0 million (18%) to $1,258.2 million**, primarily due to higher operating expenses at Las Bambas (**$59.5 million**), including increased production expenses, tax provisions, and freight costs[30](index=30&type=chunk) - Kinsevere's operating expenses increased by **$61.5 million**, mainly due to unfavorable inventory changes (**$43.4 million**)[30](index=30&type=chunk) - Khoemacau's operating expenses increased by **$56.8 million**, reflecting a full six months of operations under MMG's ownership[30](index=30&type=chunk) - Exploration expenses increased by **$15.3 million (56%) to $42.5 million**, primarily due to increased drilling activities at Las Bambas[31](index=31&type=chunk) - Transaction and integration costs for the Khoemacau mine acquisition decreased by **$19.9 million**, mainly due to lower acquisition costs in 2024 and reduced integration costs in 2025[31](index=31&type=chunk) - Net other income increased by **$51.9 million (419%) to $39.5 million**, primarily attributable to favorable exchange rate impacts at Las Bambas and the release of tax-related provisions[32](index=32&type=chunk) - Depreciation and amortization expenses increased by **$13.2 million (3%) to $481.1 million**, mainly due to increased mining volumes at Las Bambas and an additional three months of depreciation and amortization for Khoemacau[32](index=32&type=chunk) - Net finance costs decreased by **$28.5 million (17%) to $139.5 million**, primarily due to lower debt balances (**$69.2 million**) and reduced interest rates (**$14.7 million**)[33](index=33&type=chunk) - Income tax expense increased by **$289.4 million**, mainly due to the growth in underlying profit before income tax[33](index=33&type=chunk) [Mine Operations Analysis](index=10&type=section&id=%E7%A4%A6%E5%B1%B1%E5%88%86%E6%9E%90) This section details the production, sales, financial performance, and outlook for MMG's key mines (Las Bambas, Kinsevere, Khoemacau, Dugald River, and Rosebery) in H1 2025. Las Bambas and Khoemacau showed strong performance with significant growth in output and profitability; Kinsevere's production increased but profitability was constrained by power supply; Dugald River's zinc output grew but profitability was affected by by-products; Rosebery saw declines in both output and profitability [Las Bambas](index=10&type=section&id=Las%20Bambas) Las Bambas' copper in concentrate production increased 67% to 210,637 tonnes in H1 2025, with revenue up 60% to $2,006.8 million and EBITDA up 122% to $1,310.5 million. Strong performance was driven by improved ore grades and high recovery rates. C1 costs significantly reduced to $1.06/lb. The 2025 copper production guidance is maintained at 360,000-400,000 tonnes, with C1 cost guidance lowered to $1.40-$1.60/lb Las Bambas 2025 H1 Production and Sales Data | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Ore Mined (tonnes) | 42,131,755 | 24,792,754 | 70% | | Copper in Concentrate (tonnes) | 210,637 | 126,198 | 67% | | Copper Sold (tonnes) | 190,577 | 125,668 | 52% | Las Bambas 2025 H1 Financial Performance (USD millions) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Revenue | 2,006.8 | 1,256.0 | 60% | | EBITDA | 1,310.5 | 590.3 | 122% | | EBIT | 912.6 | 236.4 | 286% | | EBITDA Margin | 65% | 47% | - | - The H1 2025 C1 cost was **$1.06/lb**, a reduction from **$1.81/lb** in 2024, benefiting from increased copper production and higher by-product credits[39](index=39&type=chunk) - The 2025 Las Bambas copper production guidance is maintained between **360,000 tonnes and 400,000 tonnes**, with C1 cost guidance lowered to between **$1.40/lb and $1.60/lb**[40](index=40&type=chunk) [Kinsevere](index=12&type=section&id=Kinsevere) Kinsevere's cathode copper production increased 19% to 25,425 tonnes in H1 2025, but EBITDA decreased 27% to $30.3 million, primarily constrained by unstable national power supply. Revenue grew 25% to $234.6 million, benefiting from higher copper and cobalt sales and copper prices. C1 costs slightly increased to $3.17/lb. The 2025 cathode copper production guidance is maintained at 63,000-69,000 tonnes, with C1 costs expected near the upper end of the guidance range Kinsevere 2025 H1 Production and Sales Data | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Ore Mined (tonnes) | 546,536 | 1,599,920 | (66%) | | Cathode Copper (tonnes) | 25,425 | 21,278 | 19% | | Copper Sold (tonnes) | 25,270 | 21,465 | 18% | | Cobalt Sold (tonnes) | 482 | 92 | 424% | Kinsevere 2025 H1 Financial Performance (USD millions) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Revenue | 234.6 | 188.3 | 25% | | EBITDA | 30.3 | 41.4 | (27%) | | EBIT | 15.2 | 6.2 | 145% | | EBITDA Margin | 13% | 22% | - | - The H1 2025 C1 cost was **$3.17/lb**, a slight increase from **$3.14/lb** in 2024, mainly due to higher cash production costs[46](index=46&type=chunk) - The 2025 cathode copper production guidance is maintained between **63,000 tonnes and 69,000 tonnes**, with output potentially closer to the lower end of the guidance range due to unstable power supply[47](index=47&type=chunk) [Khoemacau](index=14&type=section&id=Khoemacau) Khoemacau's copper in concentrate production increased 121% to 22,043 tonnes in H1 2025, with revenue up 122% to $199.9 million and EBITDA up 167% to $89.6 million. Growth was primarily due to a full six months of ownership and increased ore mining. C1 costs decreased to $2.05/lb. The 2025 copper production guidance is maintained at 43,000-53,000 tonnes, with C1 cost guidance maintained at $2.30-$2.65/lb Khoemacau 2025 H1 Production and Sales Data | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Ore Mined (tonnes) | 1,612,660 | 756,169 | 113% | | Copper in Concentrate (tonnes) | 22,043 | 9,982 | 121% | | Copper Sold (tonnes) | 21,244 | 9,717 | 119% | | Silver Sold (ounces) | 657,867 | 301,929 | 118% | Khoemacau 2025 H1 Financial Performance (USD millions) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Revenue | 199.9 | 90.2 | 122% | | EBITDA | 89.6 | 33.5 | 167% | | EBIT | 70.6 | 23.1 | 206% | | EBITDA Margin | 45% | 37% | - | - The H1 2025 C1 cost was **$2.05/lb**, an improvement from **$2.65/lb** in H1 2024[53](index=53&type=chunk) - The 2025 copper production guidance is maintained between **43,000 tonnes and 53,000 tonnes**, with C1 cost estimated between **$2.30/lb and $2.65/lb**[54](index=54&type=chunk) [Dugald River](index=15&type=section&id=Dugald%20River) Dugald River's zinc in concentrate production increased 6% to 84,426 tonnes in H1 2025, with revenue flat year-on-year. EBITDA decreased 18% to $66.0 million, offset by lower lead and silver production and increased operating expenses. C1 costs improved to $0.65/lb. The 2025 zinc production guidance is maintained at 170,000-185,000 tonnes, with C1 costs expected at the lower end of the guidance range Dugald River 2025 H1 Production and Sales Data | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Ore Mined (tonnes) | 880,396 | 908,512 | (3%) | | Zinc in Concentrate (tonnes) | 84,426 | 79,284 | 6% | | Lead in Concentrate (tonnes) | 8,805 | 10,799 | (18%) | | Zinc Sold (tonnes) | 70,153 | 69,353 | 1% | | Lead Sold (tonnes) | 8,906 | 12,785 | (30%) | | Silver Sold (ounces) | 691,884 | 1,086,005 | (36%) | Dugald River 2025 H1 Financial Performance (USD millions) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Revenue | 227.5 | 226.1 | 1% | | EBITDA | 66.0 | 80.2 | (18%) | | EBIT | 37.8 | 53.8 | (30%) | | EBITDA Margin | 29% | 35% | - | - The H1 2025 zinc C1 cost was **$0.65/lb**, an improvement from **$0.67/lb** in 2024, mainly due to higher zinc production, lower treatment charges, and reduced selling expenses[57](index=57&type=chunk) - The full-year 2025 zinc production guidance is maintained between **170,000 tonnes and 185,000 tonnes**, with C1 costs expected at the lower end of the previous guidance range of **$0.75/lb to $0.90/lb**[58](index=58&type=chunk) [Rosebery](index=17&type=section&id=Rosebery) Rosebery's zinc in concentrate production decreased 22% to 23,505 tonnes in H1 2025, with revenue down 8% to $141.0 million and EBITDA down 20% to $54.8 million. The decline was mainly attributed to lower ore grades and equipment reliability challenges. C1 costs slightly increased to negative $0.32/lb. The 2025 zinc production guidance is maintained at 45,000-55,000 tonnes, with C1 cost guidance lowered to negative $0.10 to positive $0.15/lb Rosebery 2025 H1 Production and Sales Data | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Ore Mined (tonnes) | 468,775 | 518,611 | (10%) | | Zinc in Concentrate (tonnes) | 23,505 | 30,263 | (22%) | | Lead in Concentrate (tonnes) | 8,347 | 10,970 | (24%) | | Zinc Sold (tonnes) | 19,048 | 23,111 | (18%) | | Lead Sold (tonnes) | 7,155 | 11,176 | (36%) | | Gold Sold (ounces) | 12,396 | 14,922 | (17%) | | Silver Sold (ounces) | 861,960 | 1,271,387 | (32%) | Rosebery 2025 H1 Financial Performance (USD millions) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Revenue | 141.0 | 152.7 | (8%) | | EBITDA | 54.8 | 68.3 | (20%) | | EBIT | 39.8 | 30.2 | 32% | | EBITDA Margin | 39% | 45% | (13%) | - The H1 2025 zinc C1 cost was **negative $0.32/lb**, an increase from **negative $0.42/lb** in 2024, reflecting the decline in zinc production[63](index=63&type=chunk) - The 2025 zinc in concentrate production guidance is maintained between **45,000 tonnes and 55,000 tonnes**, with C1 cost guidance lowered to between **negative $0.10/lb and positive $0.15/lb**[64](index=64&type=chunk) [Cash Flow and Financial Resources](index=19&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%88%87%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's net cash inflow from operating activities surged 130% to $1,185.0 million in H1 2025, primarily driven by increased sales volumes at Las Bambas and higher commodity prices. Net cash outflow from investing activities decreased 83%, due to the Khoemacau acquisition in 2024. Net cash outflow from financing activities increased, mainly due to net loan repayments and reduced non-controlling interest contributions 2025 H1 Net Cash Flow (USD millions) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,185.0 | 515.3 | 130% | | Net Cash Flow from Investing Activities | (424.2) | (2,464.9) | 83% | | Net Cash Flow from Financing Activities | (246.2) | 2,123.6 | (112%) | | Net Increase in Cash | 514.6 | 174.0 | 196% | - Net cash inflow from operating activities increased by **$669.7 million**, primarily attributable to higher sales volumes at Las Bambas (**$603.0 million**) and generally higher commodity prices (**$220.7 million**)[66](index=66&type=chunk) - Net cash outflow from investing activities decreased by **$2,040.7 million**, mainly due to the **$2,042.8 million** payment for the acquisition of the Khoemacau copper mine in 2024[67](index=67&type=chunk) - Net cash flow from financing activities decreased by **$2,369.8 million**, due to net loan repayments of **$388.8 million** in H1 2025 (compared to net loan drawdowns of **$1,889.8 million** in 2024)[67](index=67&type=chunk) Debt-to-Equity Ratio (USD millions) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Debt | 3,539.1 | 4,442.4 | | Total Equity | 7,060.9 | 6,278.5 | | Net Debt plus Total Equity | 10,600.0 | 10,720.9 | | Debt-to-Equity Ratio | 0.33 | 0.41 | - As of June 30, 2025, the Group had undrawn debt facilities of **$2,841 million**[70](index=70&type=chunk) [Strategic Development and Exploration](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) MMG announced the acquisition of Brazil Nickel in H1 2025 to expand its commodity portfolio and global footprint. The company continues to advance expansion projects at Kinsevere and Khoemacau, aiming to extend mine life and increase capacity. Concurrently, active growth exploration activities are underway at various mines to assess and expand mineral resource potential - MMG announced on February 18, 2025, the acquisition of **100%** equity in Brazil Nickel for a total cash consideration not exceeding **$500 million**, with the transaction expected to close by year-end 2025[71](index=71&type=chunk) - The Kinsevere Expansion Project (KEP) continues its capacity ramp-up, with copper recovery from the sulphide concentrator exceeding **75%** and roasting conversion rate at the roaster reaching **88%**. To mitigate unstable power supply, an additional **12MW** of diesel generator capacity is being procured[74](index=74&type=chunk) - The Khoemacau Expansion Project plans to construct a new concentrator with an annual processing capacity of **4.5 million tonnes**, aiming to expand mine capacity to **130,000 tonnes** of copper in concentrate per year, with first concentrate production expected in 2028[75](index=75&type=chunk) - In H1 2025, the Group achieved **479 contracts** through market interactions and internal renegotiations, involving an annual operating or capital value totaling **$607.8 million**[78](index=78&type=chunk) - As of June 30, 2025, the Group employed **5,220 full-time employees** across its operating businesses, with total employee benefits expenses of **$271.5 million**, mainly due to increased MLB profit sharing expenses[87](index=87&type=chunk) - Las Bambas' exploration drilling focused on near-surface skarn and porphyry copper mineralization, assessing mineral potential in the intermediate area between the Chalcobamba and Sulfobamba pits[88](index=88&type=chunk) - Deep drilling in Zone 5 at Khoemacau confirmed the continuity of mineralization at a depth of **1,800 meters**[91](index=91&type=chunk) - Underground drilling at Dugald River discovered new extensions below previously undrilled zinc-lead-silver veins, extending the known depth of sulphide mineralization[92](index=92&type=chunk) 2025 H1 Growth Drilling Data Summary | Project | Drill Hole Category | Metres Drilled (m) | Number of Holes | Average Metres Drilled (m) | | :--- | :--- | :--- | :--- | :--- | | Las Bambas | Diamond | 26,126 | 65 | 402 | | Kinsevere | Diamond | 2,875 | 11 | 261 | | Khoemacau | Diamond | 471 | 2 | 236 | | Dugald River | Diamond | 10,356 | 13 | 797 | | Rosebery | Diamond | 36,161 | 158 | 229 | | Total | | 77,949 | 249 | 313 | [Risk Management and Future Outlook](index=24&type=section&id=%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E8%88%87%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) [Financial and Other Risk Management](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E5%85%B6%E4%BB%96%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) MMG faces multiple risks including commodity prices, interest rates, liquidity, and country and community factors. The company manages price risk through commodity hedging and regularly monitors interest rate risk. Liquidity is ample, but political, economic, and community instability risks exist in some countries. Favorable rulings were obtained for tax contingent liabilities (withholding tax and income tax) in Peru, but SUNAT has appealed, leaving the final outcome uncertain - As of June 30, 2025, the Group entered into various commodity transactions to hedge copper and zinc prices, including **93,100 tonnes of copper** at fixed prices ranging from **$9,000/tonne to $10,093/tonne**[99](index=99&type=chunk)[103](index=103&type=chunk) Impact of 10% Commodity Price Change on Profit After Tax and Other Comprehensive Income (USD millions) | Commodity | Price Change | Increase/(Decrease) in Profit | Decrease/(Increase) in Other Comprehensive Income | | :--- | :--- | :--- | :--- | | Copper | +10% | 3.0 | (57.7) | | Zinc | +10% | 2.6 | - | | Total | | 5.6 | (57.7) | | Copper | -10% | (3.0) | 57.7 | | Zinc | -10% | (2.6) | - | | Total | | (5.6) | 57.7 | Impact of 100 Basis Point Interest Rate Change on Profit After Tax (USD millions) | Indicator | +100 Basis Points | -100 Basis Points | | :--- | :--- | :--- | | Cash and Cash Equivalents | 1.9 | (1.9) | | Floating Rate Loans | (18.8) | 18.8 | | Total | (16.9) | 16.9 | - The Group has sufficient debt facilities to manage liquidity, and as of June 30, 2025, there were no breaches of any loan covenants[107](index=107&type=chunk) - The Group faces country and community risks such as changes in political regimes or policies, currency exchange rate fluctuations, changes in licensing regimes, changes in political conditions and government regulations, and community unrest[109](index=109&type=chunk) - Peru's National Tax Superintendence (SUNAT) disputed withholding tax and income tax assessments for Las Bambas, but MLB obtained favorable rulings from the Peruvian Tax Court, revoking **$557.0 million** in withholding tax appeal assessments and **$2,016 million** in income tax, interest, and penalties uncertainties[115](index=115&type=chunk)[117](index=117&type=chunk) - SUNAT has filed judicial appeals against the Tax Court's rulings, and a final decision may take several years[115](index=115&type=chunk)[118](index=118&type=chunk) [Future Outlook](index=29&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) MMG is committed to long-term, disciplined growth, targeting production of metals crucial for a low-carbon future. Through prudent cost and risk management, operational excellence, and a strategic asset portfolio in South America, Africa, and Australia, the company continuously enhances operational value and seeks diversification opportunities. The company maintains its 2025 production guidance for key mines and plans to extend mine life and increase capacity through expansion and exploration - MMG is committed to long-term, disciplined growth and ambitious metal production targets for metals critical to achieving a low-carbon future[120](index=120&type=chunk) - MMG's asset portfolio in South America, Africa, and Australia strategically positions it in many rapidly growing economic regions[120](index=120&type=chunk) - 2025 key mine production guidance: Las Bambas copper **360,000-400,000 tonnes**; Kinsevere cathode copper **63,000-69,000 tonnes**; Khoemacau copper **43,000-53,000 tonnes**; Dugald River zinc **170,000-185,000 tonnes**; Rosebery zinc **45,000-55,000 tonnes**[121](index=121&type=chunk) - Las Bambas plans to produce **350,000-400,000 tonnes** of copper in concentrate annually in the medium term and continues to implement exploration programs within its existing mining concessions[122](index=122&type=chunk) - The Kinsevere Expansion Project is expected to extend the mine life to 2035, with an annual production of approximately **80,000 tonnes** of cathode copper at full capacity[123](index=123&type=chunk) - Khoemacau plans to increase annual copper in concentrate production to **130,000 tonnes by 2028**, involving the construction of a new concentrator, increased output from Zone 5, and development of expansion deposits[126](index=126&type=chunk) - Dugald River aims to achieve an annual mining target of **2,000,000 tonnes of ore** to produce approximately **200,000 tonnes of zinc equivalent** per year, and is studying the construction of a wind farm to reduce its carbon footprint[127](index=127&type=chunk) - Rosebery is focused on prioritizing increased zinc equivalent production, updating resource models, and advancing sustainable tailings storage solutions to extend mine operational life and optimize long-term value[128](index=128&type=chunk) [Condensed Consolidated Interim Financial Statements](index=34&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Interim Statement of Profit or Loss](index=34&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E6%90%8D%E7%9B%8A%E8%A1%A8) The Group's H1 2025 revenue was $2,817.0 million, a 47% increase year-on-year. EBITDA reached $1,539.9 million, and EBIT was $1,058.8 million. Profit for the period was $566.3 million, with $340.0 million attributable to equity holders of the Company, and basic earnings per share of 2.80 US cents 2025 H1 Condensed Consolidated Interim Statement of Profit or Loss Summary (USD millions) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Revenue | 2,817.0 | 1,918.2 | | EBITDA | 1,539.9 | 779.0 | | EBIT | 1,058.8 | 311.1 | | Profit Before Income Tax | 919.3 | 143.1 | | Profit for the Period | 566.3 | 79.5 | | Profit Attributable to Equity Holders of the Company | 340.0 | 21.1 | | Basic Earnings Per Share | 2.80 US cents | 0.23 US cents | [Condensed Consolidated Interim Statement of Comprehensive Income](index=35&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group's profit for H1 2025 was $566.3 million. Other comprehensive loss was $16.4 million, mainly from changes in cash flow hedges. Total comprehensive income for the period was $549.9 million, with $329.5 million attributable to equity holders of the Company 2025 H1 Condensed Consolidated Interim Statement of Comprehensive Income Summary (USD millions) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit for the Period | 566.3 | 79.5 | | Other Comprehensive (Loss)/Income | (16.4) | (27.4) | | Total Comprehensive Income for the Period | 549.9 | 52.1 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 329.5 | 5.4 | [Condensed Consolidated Interim Statement of Financial Position](index=36&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets were $15,486.3 million, total liabilities $8,425.4 million, and total equity $7,060.9 million. Total equity increased by $782.4 million from year-end 2024, primarily due to profit for the period and increased non-controlling interests. Net current assets turned positive, indicating improved liquidity 2025 June 30 Condensed Consolidated Interim Statement of Financial Position Summary (USD millions) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 15,486.3 | 14,985.9 | | Total Liabilities | 8,425.4 | 8,707.4 | | Total Equity | 7,060.9 | 6,278.5 | | Net Current Assets/(Liabilities) | 651.3 | (467.1) | - Property, plant and equipment within non-current assets amounted to **$11,674.1 million**, and intangible assets were **$1,043.9 million**[145](index=145&type=chunk) - Cash and cash equivalents within current assets significantly increased to **$707.3 million** from **$192.7 million** at year-end 2024[145](index=145&type=chunk) - Loans within non-current liabilities were **$3,999.6 million**, and loans within current liabilities were **$241.8 million**[146](index=146&type=chunk) [Condensed Consolidated Interim Statement of Cash Flows](index=40&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The Group's net cash inflow from operating activities was $1,185.0 million in H1 2025, a 130% increase year-on-year. Net cash outflow from investing activities was $424.2 million, a significant reduction from the prior year. Net cash outflow from financing activities was $246.2 million, mainly due to loan repayments and reduced non-controlling interest contributions. Net increase in cash and cash equivalents was $514.6 million 2025 H1 Condensed Consolidated Interim Statement of Cash Flows Summary (USD millions) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 1,185.0 | 515.3 | | Net Cash Used in Investing Activities | (424.2) | (2,464.9) | | Net Cash (Used in)/from Financing Activities | (246.2) | 2,123.6 | | Net Increase in Cash and Cash Equivalents | 514.6 | 174.0 | | Cash and Cash Equivalents at June 30 | 707.3 | 621.0 | - Cash received from customers was **$3,137.3 million**, and cash paid to suppliers and employees was **$1,610.9 million**[152](index=152&type=chunk) - Expenditure on purchase of property, plant and equipment was **$424.3 million**[152](index=152&type=chunk) - Proceeds from external loans were **$1,150.0 million**, and repayment of external loans was **$1,517.7 million**[152](index=152&type=chunk) [Condensed Consolidated Interim Statement of Changes in Equity](index=38&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, total equity attributable to equity holders of the Company was $3,747.2 million, and non-controlling interests were $3,313.7 million. Profit for the period and subscription of shares by non-controlling interests were key drivers of the equity increase. Cash flow hedge reserve decreased due to hedging losses 2025 H1 Equity Changes Summary (USD millions) | Indicator | January 1, 2025 | Profit for the Period | Other Comprehensive Loss | Total Comprehensive Income | Total Transactions with Owners | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Attributable to Equity Holders of the Company | 3,419.0 | 340.0 | (10.5) | 329.5 | (1.3) | 3,747.2 | | Non-Controlling Interests | 2,859.5 | 226.3 | (5.9) | 220.4 | 233.8 | 3,313.7 | | Total Equity | 6,278.5 | 566.3 | (16.4) | 549.9 | 232.5 | 7,060.9 | - Proceeds from subscription of shares by non-controlling interests in subsidiaries amounted to **$337.5 million**, and dividends paid to non-controlling interests were **$103.7 million**[147](index=147&type=chunk) - Cash flow hedge reserve decreased by **$10.5 million** due to other comprehensive loss during the period[147](index=147&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=41&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [General Information and Independent Review](index=41&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99%E5%8F%8A%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1) MMG Limited, an investment holding company incorporated in Hong Kong, engages in exploration, development, and mining of copper, zinc, gold, silver, molybdenum, lead, and cobalt deposits globally. These condensed consolidated interim financial statements are presented in USD, approved for issue by the Board, and reviewed by the Audit Committee and external auditors - The Company and its subsidiaries (the "Group") are engaged in the exploration, development, and mining of copper, zinc, gold, silver, molybdenum, lead, and cobalt deposits worldwide[155](index=155&type=chunk) - The condensed consolidated interim financial statements for the six months ended June 30, 2025, are unaudited but have been reviewed by the Company's Audit Committee and external auditors[155](index=155&type=chunk) [Basis of Preparation and Accounting Policies](index=41&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E8%88%87%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) These condensed consolidated interim financial statements are prepared on a going concern basis in accordance with the HKEX Listing Rules and HKAS 34 Interim Financial Reporting issued by the HKICPA. HKAS 21 (Amendment) "Lack of Exchangeability" was first applied this period, with no significant impact on financial position or performance - These condensed consolidated interim financial statements have been prepared on a going concern basis, assuming the continuity of ordinary business activities and the realization of assets and settlement of liabilities in the normal course of business[157](index=157&type=chunk) - HKAS 21 (Amendment) "Lack of Exchangeability" was first applied in this interim period, with no significant impact on the Group's financial position and performance for the current and prior periods[160](index=160&type=chunk) [Segment Information](index=42&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's reportable segments include Las Bambas, Kinsevere, Khoemacau, Dugald River, Rosebery, and "Other." The Executive Committee as the chief operating decision-maker regularly reviews internal reports for each segment to assess performance and allocate resources. Segment results are measured by EBIT, and segment assets and liabilities exclude income tax-related items - The Group's reportable segments include Las Bambas, Kinsevere, Khoemacau, Dugald River, and Rosebery, as well as the "Other" category[163](index=163&type=chunk)[165](index=165&type=chunk) - Segment results are measured by the EBIT earned by each segment, which is the indicator reported to the chief operating decision-maker for resource allocation and performance assessment[166](index=166&type=chunk) 2025 H1 Segment Revenue and EBIT (USD millions) | Segment | Revenue | EBITDA | EBIT | | :--- | :--- | :--- | :--- | | Las Bambas | 2,006.8 | 1,310.5 | 912.6 | | Kinsevere | 234.6 | 30.4 | 15.2 | | Khoemacau | 199.9 | 89.6 | 70.6 | | Dugald River | 227.5 | 66.0 | 37.8 | | Rosebery | 141.0 | 54.8 | 39.8 | | Other Unallocated Items/Eliminations | 7.2 | (11.4) | (17.2) | | Group Total | 2,817.0 | 1,539.9 | 1,058.8 | 2025 June 30 Segment Assets and Liabilities (USD millions) | Segment | Segment Assets | Segment Liabilities | Segment Non-Current Assets | | :--- | :--- | :--- | :--- | | Las Bambas | 9,325.2 | 2,314.5 | 8,097.9 | | Kinsevere | 1,195.0 | 381.2 | 995.0 | | Khoemacau | 3,306.3 | 935.4 | 3,131.3 | | Dugald River | 710.6 | 98.4 | 654.9 | | Rosebery | 248.1 | 169.0 | 205.5 | | Other Unallocated Items/Eliminations | 371.0 | 2,718.7 | 351.9 | | Group Total | 15,156.2 | 6,617.2 | 13,436.5 | [Expenses](index=46&type=section&id=%E8%B2%BB%E7%94%A8) The Group's total expenses for H1 2025 were $1,776.5 million, an increase from 2024. Key expenses include cost of sales, employee benefits, contracting and consulting fees, energy costs, and consumables. Total depreciation and amortization expenses amounted to $481.1 million 2025 H1 Major Expenses (USD millions) | Expense Category | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Changes in Inventories of Finished Goods and Work in Progress | (142.4) | (39.3) | | Employee Benefits Expenses | 247.5 | 152.7 | | Contracting and Consulting Fees | 386.7 | 309.0 | | Energy Costs | 178.5 | 166.7 | | Spares and Consumables Costs | 299.0 | 297.5 | | Depreciation and Amortisation Expenses | 471.9 | 458.5 | | Cost of Sales | 1,508.5 | 1,380.4 | | Operating Expenses (including depreciation and amortisation) | 1,730.1 | 1,521.7 | | Exploration Expenses | 42.5 | 27.2 | | Administrative Expenses | 15.6 | 16.2 | | Transaction and Integration Costs for Khoemacau Acquisition | 0.3 | 20.2 | | Total Expenses | 1,776.5 | 1,609.5 | - Total employee benefits expenses were **$271.5 million** (2024: **$190.4 million**), of which **$24.0 million** was included in administrative expenses, exploration expenses, and other expense categories[176](index=176&type=chunk) - Total depreciation and amortization expenses were **$481.1 million** (2024: **$467.9 million**), of which **$9.2 million** was included in exploration expenses and other expense categories[176](index=176&type=chunk) [Finance Income and Finance Costs](index=47&type=section&id=%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5%E5%92%8C%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) The Group's finance income for H1 2025 was $6.9 million, primarily from interest income. Total finance costs were $146.4 million, a decrease from 2024, mainly due to reduced interest expenses from third parties and related parties 2025 H1 Finance Income and Costs (USD millions) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Total Finance Income | 6.9 | 13.6 | | Interest Expense – Third Parties | (59.8) | (129.5) | | Interest Expense – Related Parties | (55.9) | (70.0) | | Total Finance Costs | (146.4) | (181.6) | - Other finance costs – related parties include **$3.3 million** (2024: **$2.2 million**) in guarantee fees paid to China Minmetals and Minmetals Non-ferrous for guarantees provided to secure external bank revolving credit facilities[176](index=176&type=chunk) [Income Tax Expense](index=48&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E6%94%AF%E5%87%BA) The Group's income tax expense for H1 2025 was $353.0 million, a significant increase from 2024, primarily due to higher profit before income tax. The Group recognized a current income tax expense of $0.2 million under Pillar Two rules, as its Singapore operations did not meet the transitional CbCR safe harbor provisions 2025 H1 Income Tax Expense (USD millions) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Current Income Tax Expense | 379.6 | 55.0 | | Deferred Income Tax (Credit)/Expense | (26.6) | 8.6 | | Income Tax Expense | 353.0 | 63.6 | - The Group recognized a current income tax expense of **$0.2 million** for the six months ended June 30, 2025 (2024: nil) under Pillar Two rules, which is expected to be levied on its subsidiary in Singapore[179](index=179&type=chunk) [Earnings Per Share](index=49&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) The Group's basic and diluted earnings per share for H1 2025 were both 2.80 US cents, a significant increase from the prior year. Earnings per share are calculated by dividing profit attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the reporting period 2025 H1 Earnings Per Share Data | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company for Basic and Diluted EPS Calculation (USD millions) | 340.0 | 21.1 | | Weighted Average Number of Ordinary Shares for Basic EPS Calculation (thousands) | 12,130,849 | 9,198,779 | | Weighted Average Number of Ordinary Shares for Diluted EPS Calculation (thousands) | 12,150,116 | 9,279,150 | | Basic Earnings Per Share | 2.80 US cents | 0.23 US cents | | Diluted Earnings Per Share | 2.80 US cents | 0.23 US cents | [Dividends](index=49&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any dividend to ordinary shareholders for the six months ended June 30, 2025 - The Directors do not recommend the payment of any dividend to ordinary shareholders for the six months ended June 30, 2025 (2024: nil)[183](index=183&type=chunk) [Property, Plant and Equipment](index=50&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) As of June 30, 2025, the Group's net book value of property, plant and equipment was $11,674.1 million. Additions during the period amounted to $420.6 million, and depreciation and amortization was $468.1 million. No indications of impairment or impairment reversals were identified this period 2025 H1 Property, Plant and Equipment Net Book Value Changes (USD millions) | Indicator | Amount | | :--- | :--- | | Net Book Value at January 1, 2025 | 11,722.6 | | Additions | 420.6 | | Depreciation and Amortisation | (468.1) | | Disposals | (1.0) | | Net Book Value at June 30, 2025 | 11,674.1 | - The Group's management believes that no indications of impairment or impairment reversals were identified within any of the Group's cash-generating units during the reporting period[185](index=185&type=chunk) [Intangible Assets](index=50&type=section&id=%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group's net book value of intangible assets was $1,043.9 million, with depreciation and amortization of $0.3 million during the period 2025 H1 Intangible Assets Net Book Value Changes (USD millions) | Indicator | Amount | | :--- | :--- | | Net Book Value at January 1, 2025 | 1,044.2 | | Additions | - | | Depreciation and Amortisation | (0.3) | | Net Book Value at June 30, 2025 | 1,043.9 | [Principal Subsidiaries with Material Non-Controlling Interests](index=50&type=section&id=%E6%93%81%E6%9C%89%E9%87%8D%E5%A4%A7%E9%9D%9E%E6%8E%A7%E5%88%B6%E6%80%A7%E6%AC%8A%E7%9B%8A%E7%9A%84%E4%B8%BB%E8%A6%81%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) As of June 30, 2025, the Group's total non-controlling interests were $3,313.7 million, primarily from the Las Bambas joint venture and Khoemacau joint venture. The Las Bambas joint venture paid dividends of $103.7 million to non-controlling shareholders, and the Khoemacau joint venture issued shares worth $337.5 million to Comor 2025 June 30 Non-Controlling Interests Composition (USD millions) | Company | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Las Bambas Joint Venture | 2,483.3 | 2,372.0 | | Khoemacau Joint Venture | 830.4 | 487.5 | | Total | 3,313.7 | 2,859.5 | - For the six months ended June 30, 2025, the Las Bambas joint venture paid dividends of **$103.7 million** to its non-controlling shareholders[187](index=187&type=chunk) - For the six months ended June 30, 2025, the Khoemacau joint venture issued **2,607,682,500 shares**, representing **45%** of the total issued shares, to Comor for an amount of **$337.5 million**[188](index=188&type=chunk) 2025 H1 Las Bambas and Khoemacau Joint Venture Consolidated Income Summary (USD millions) | Company | Revenue | Profit/(Loss) for the Period | Total Comprehensive Income | | :--- | :--- | :--- | :--- | | Las Bambas Joint Venture | 2,006.8 | 586.6 | 573.2 | | Khoemacau Joint Venture | 199.9 | 14.0 | 12.1 | [Trade and Other Receivables](index=52&type=section&id=%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE) As of June 30, 2025, the Group's trade receivables were $414.2 million, with most amounts due within six months from the invoice date. Amounts due from related companies were $187.2 million. Non-current other receivables were $104.0 million, including amounts due from Glencore and SUNAT - As of June 30, 2025, the Group's trade receivables included in "Trade and Other Receivables" primarily relate to mining operations, with a balance of **$414.2 million** (December 31, 2024: **$443.7 million**)[191](index=191&type=chunk) - The Group's trade receivables, other receivables, and prepayments include amounts due from related companies of **$187.2 million** (December 31, 2024: **$242.2 million**)[191](index=191&type=chunk) - The Group's non-current other receivables amounted to **$104.0 million** (December 31, 2024: **$125.5 million**), including amounts due from Glencore for the MLB acquisition project and amounts due from SUNAT for VAT audits in 2011 and 2012[192](index=192&type=chunk) [Share Capital](index=53&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's issued and fully paid ordinary shares totaled 12,140,531 thousand shares, with share capital of $4,384.2 million. New shares were issued during the period due to vesting of employee performance awards, and a rights issue completed in 2024, issuing 3,465,433 thousand new shares, with proceeds used for loan repayment 2025 June 30 Share Capital Changes (thousands of shares/USD millions) | Indicator | Number of Ordinary Shares (thousands) | Share Capital (USD millions) | | :--- | :--- | :--- | | At January 1, 2024 | 8,656,047 | 3,224.6 | | Employee Performance Awards Exercised and Vested | 7,534 | 2.8 | | Rights Issue | 3,465,433 | 1,152.4 | | At December 31, 2024 | 12,129,014 | 4,379.8 | | Employee Performance Awards Exercised and Vested | 11,517 | 4.4 | | At June 30, 2025 | 12,140,531 | 4,384.2 | - On July 15, 2024, the Company completed a rights issue, issuing **3,465,432,486 new shares**, with proceeds of **$1,152.4 million** (net of transaction costs) used for loan repayment[193](index=193&type=chunk) [Reserves and Retained Earnings](index=54&type=section&id=%E5%84%B2%E5%82%99%E5%8F%8A%E7%95%99%E5%AD%98%E6%94%B6%E7%9B%8A) As of June 30, 2025, total reserves attributable to equity holders of the Company were negative $1,859.9 million, and retained earnings were $1,222.9 million. Profit for the period increased retained earnings, while cash flow hedge reserve decreased due to hedging losses 2025 June 30 Reserves and Retained Earnings Changes (USD millions) | Indicator | January 1, 2025 | Profit for the Period | Other Comprehensive Loss | Appropriation to Surplus Reserve | Employee Long-Term Incentives | Employee Performance Awards Exercised and Vested | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Reserves | (1,871.9) | - | (10.5) | 28.2 | (1.3) | (4.4) | (1,859.9) | | Retained Earnings | 911.1 | 340.0 | - | (28.2) | - | - | 1,222.9 | | Total | (960.8) | 340.0 | (10.5) | - | (1.3) | (4.4) | (637.0) | - The cash flow hedge reserve records the gain or loss portion of hedging instruments, including commodity hedges and interest rate swaps attributable to equity holders of the Company, retained in other comprehensive income[196](index=196&type=chunk) [Loans](index=56&type=section&id=%E8%B2%B8%E6%AC%BE) As of June 30, 2025, the Group's total loans amounted to $4,246.4 million, comprising $3,999.6 million in non-current loans and $241.8 million in current loans. Loans primarily include related party loans and bank loans, with an effective annual interest rate of 5.2% 2025 June 30 Loan Composition (USD millions) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-Current Loans - Related Parties | 2,519.0 | 1,705.0 | | Non-Current Bank Loans (Net) | 1,480.6 | 2,035.1 | | Current Loans - Related Parties | 26.3 | 861.3 | | Current Bank Loans (Net) | 215.5 | 27.4 | | Total Loans (excluding prepayments) | 4,246.4 | 4,635.1 | - For the six months ended June 30, 2025, the effective annual interest rate on loans was **5.2%** (2024: **5.2%**)[198](index=198&type=chunk) [Trade and Other Payables](index=56&type=section&id=%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE) As of June 30, 2025, the Group's trade payables balance was $393.6 million, with most amounts aged less than six months - As of June 30, 2025, the trade payables balance included in "Trade and Other Payables" was **$393.6 million** (December 31, 2024: **$387.2 million**), of which **$365.0 million** (December 31, 2024: **$384.3 million**) was aged less than six months[199](index=199&type=chunk) [Deferred Income](index=57&type=section&id=%E9%81%9E%E5%BB%B6%E6%94%B6%E5%85%A5) As of June 30, 2025, the Group's total deferred income was $349.6 million, with a current portion of $20.7 million and a non-current portion of $328.9 million. Deferred income of $11.2 million was recognized during the period, and interest on discounting amounted to $13.7 million 2025 June 30 Deferred Income Changes (USD millions) | Indicator | Amount | | :--- | :--- | | January 1, 2025 | 347.1 | | Deferred Income Recognized During the Period | (11.2) | | Interest on Discounting | 13.7 | | June 30, 2025 | 349.6 | | Current | 20.7 | | Non-Current | 328.9 | [Significant Related Party Transactions](index=57&type=section&id=%E9%87%8D%E5%A4%A7%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) The Company's ultimate controlling entity is China Minmetals Corporation Limited. The Group engaged in several significant related party transactions with China Minmetals and its group companies, including sales of non-ferrous metals, commodity derivative transactions, purchases of consumables and services, and interest expenses. Related party loan agreements were revised, with the lender replaced by Minmetals Hong Kong, repayment periods extended, and interest rates adjusted - The Company's **67.4%** shares are held by Minmetals Non-ferrous through its subsidiary China Minmetals H.K. (Holdings) Limited, with the ultimate controlling entity being China Minmetals Corporation Limited[201](index=201&type=chunk) 2025 H1 Transactions with China Minmetals and its Group Companies Summary (USD millions) | Transaction Category | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Sales of Non-Ferrous Metals | 1,303.3 | 777.2 | | Loss on Commodity Derivative Instruments | (15.3) | (23.2) | | Purchases of Consumables and Services | (3.5) | (14.6) | | Interest Expense | (55.9) | (70.0) | | Other Finance Costs | (3.8) | (3.0) | 2025 June 30 Significant Related Party Balances (USD millions) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Amounts Payable to Related Parties | 2,637.0 | 2,609.3 | | Total Amounts Receivable from Related Parties | 187.2 | 242.2 | | Derivative Financial Liabilities – Transactions with Related Parties | 22.4 | - | - The loan agreement between MMG SA and Top Create was revised, extending the repayment period by **three years to July 2028** from July 2025, and changing the interest rate from a fixed **4.5%** to "Term Secured Overnight Financing Rate (SOFR) plus an annual margin of **0.4%**"[206](index=206&type=chunk) - The lender for all loan tranches has been replaced from Top Create to Minmetals Hong Kong, with the Group's obligations remaining unchanged[208](index=208&type=chunk) [Capital Commitments](index=59&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's capital expenditure commitments contracted but not yet recognized as liabilities totaled $515.3 million, primarily for property, plant and equipment 2025 June 30 Capital Expenditure Commitments (USD millions) | Category | Within One Year | More Than One Year but Not Exceeding Five Years | Total | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 499.1 | 15.2 | 514.3 | | Intangible Assets | 1.0 | - | 1.0 | | Total | 500.1 | 15.2 | 515.3 | [Other Information](index=31&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Corporate Governance](index=31&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company is committed to maintaining high standards of corporate governance practices, having complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules. The Board adopted a dividend policy and Board Charter. All Directors confirmed compliance with the Model Code for Securities Transactions - The Company has complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[130](index=130&type=chunk) - The Board resolved to adopt a dividend policy on April 1, 2025, aiming to provide long-term value to shareholders through a combination of value-accretive growth and dividend returns[131](index=131&type=chunk) - The Audit and Risk Management Committee comprises **six members**, including **four independent non-executive directors** and **two non-executive directors**, primarily responsible for financial reporting, risk management, and internal controls[133](index=133&type=chunk)[135](index=135&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=32&type=section&id=%E8%B3%BC%E5%9B%9E%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - 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 (including sales of treasury shares)[136](index=136&type=chunk) [Publication of Interim Results and Interim Report](index=32&type=section&id=%E5%85%AC%E4%BD%88%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement is available on the Company's website, and the 2025 interim report will be dispatched to shareholders and published on the HKEX and Company websites in due course - This interim results announcement is also available on the Company's website (www.mmg.com). The Company's 2025 interim report will be dispatched to shareholders in due course and published on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the Company, respectively[137](index=137&type=chunk) [Independent Review](index=32&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1) The interim financial information for the six months ended June 30, 2025, is unaudited but has been reviewed by the Company's independent auditor, Deloitte Touche Tohmatsu, in accordance with HKSRS 2410, and by the Company's Audit and Risk Management Committee - The interim financial information for the six months ended June 30, 2025, is unaudited but has been reviewed by the Company's independent auditor, Deloitte Touche Tohmatsu, in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants[138](index=138&type=chunk) [Group Financial Information](index=33&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) The financial information for the six months ended June 30, 2025 and 2024, presented in the 2025 interim results announcement, is derived from the statutory condensed consolidated interim financial statements but does not constitute part of them. The Company has filed its consolidated financial statements for the year ended December 31, 2024, with the Registrar of Companies, and the auditor's report was unqualified - The financial information for the six months ended June 30, 2025 and 2024, contained in the 2025 interim results announcement, does not constitute part of the Company's statutory condensed consolidated interim financial statements but is derived from them[139](index=139&type=chunk) - The Company has filed its consolidated financial statements for the year ended December 31, 2024, with the Registrar of Companies in accordance with section 662(3) and Part 3 of Schedule 6 to the Companies Ordinance[139](index=139&type=chunk) - The Company's auditor has issued a report on these condensed consolidated interim financial statements. The auditor's report contained no modified opinion[139](index=139&type=chunk) [Glossary](index=60&type=section&id=%E8%A9%9E%E5%BD%99) This section provides definitions for key terms and abbreviations used in the report to ensure consistent understanding of the content by readers [Company Information](index=62&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides MMG Limited's Melbourne and Hong Kong office addresses, correspondence address, company website, share registrar information, and contact details for investor and media inquiries. It also lists the Executive Committee members - MMG Limited's Melbourne office is located at Level 24, 28 Freshwater Place, Southbank, Victoria 3006, Australia[214](index=214&type=chunk) - The Hong Kong office is located at Room 1208, 12/F, China Minmetals Tower, 79 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong[214](index=214&type=chunk) - Executive Committee members include Jing ZHAO (CEO and Executive Director), Song QIAN (CFO), Troy HEY (Executive General Manager – Corporate Relations), Nan WANG (Executive General Manager – Operations), and Xiangjun GUAN (Acting Executive General Manager – Commercial and Development)[214](index=214&type=chunk) [Important Dates](index=62&type=section&id=%E9%87%8D%E8%A6%81%E6%97%A5%E6%9C%9F) This section lists the important release dates for MMG's 2025 interim report and third-quarter production report - MMG's 2025 Interim Report will be released on **September 18, 2025**[215](index=215&type=chunk) - MMG's Third Quarter Production Report is expected to be released on **October 22, 2025**[215](index=215&type=chunk)

[Supplemental Announcement to the 2024 Annual Report](index=1&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E5%9B%9B%E5%B9%B4%E5%B9%B4%E5%A0%B1%E4%B9%8B%E8%A3%9C%E5%85%85%E5%85%AC%E5%91%8A) [Details of the 2023 Share Option Scheme](index=1&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%B8%89%E5%B9%B4%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83%E8%A9%B3%E6%83%85) This supplemental announcement provides additional information on the 2023 Share Option Scheme disclosed in Hop Fung Group Holdings Limited's 2024 Annual Report, detailing authorization limits, vesting periods, exercise periods, acceptance terms, and share subscription price determination criteria [Maximum Entitlement for Each Eligible Participant](index=1&type=section&id=%E5%90%84%E5%90%88%E8%B3%87%E6%A0%BC%E5%8F%83%E8%88%87%E8%80%85%E5%8F%AF%E7%8D%B2%E6%8E%88%E6%AC%8A%E6%AC%8A%E7%9B%8A%E4%B8%8A%E9%99%90) This section clarifies the maximum total number of shares that various eligible participants may be granted and exercise within a 12-month period under the 2023 Share Option Scheme and other related plans, and specifies conditions requiring shareholder approval - The total number of shares issued upon exercise of share options and awards to any grantee within any 12-month period (including the grant date) shall not exceed **1% of the company's then-issued share capital**[4](index=4&type=chunk) - Granting share options to directors (excluding independent non-executive directors), chief executives, or their associates, if resulting in the aggregate of shares granted and to be granted within 12 months exceeding **0.1% of the issued shares**, requires shareholder approval, with relevant parties abstaining from voting[4](index=4&type=chunk) - Granting share options to independent non-executive directors, substantial shareholders, or their associates, if resulting in the aggregate of shares granted and to be granted within 12 months exceeding **0.1% of the issued shares**, requires shareholder approval, with relevant parties abstaining from voting[5](index=5&type=chunk) [Vesting Period](index=2&type=section&id=%E6%AD%B8%E5%B1%AC%E6%9C%9F) This section outlines the minimum holding period before share options can be exercised and notes the Board's discretion to determine shorter vesting periods and set performance targets - Grantees must hold share options for a minimum of **12 months** before exercise[6](index=6&type=chunk) - The Board (or Remuneration Committee) may, at its discretion, grant shorter vesting periods to employee participants[6](index=6&type=chunk) - The Board may determine and set performance targets that must be achieved before the exercise of share options[6](index=6&type=chunk) [Exercise Period](index=2&type=section&id=%E8%A1%8C%E4%BD%BF%E6%9C%9F) This section stipulates the maximum period during which share options can be exercised - Share options may be exercised at any time within the period determined and notified by the directors to the grantee, but not exceeding **ten (10) years** from the date of the share option offer[7](index=7&type=chunk) [Time for Acceptance and Vesting of Share Options](index=2&type=section&id=%E6%8E%A5%E7%B4%8D%E8%B3%BC%E8%82%A1%E6%AC%8A%E5%8F%8A%E6%AD%B8%E5%B1%AC%E4%B9%8B%E6%99%82%E9%96%93) This section clarifies the acceptance deadline for share option offers and the nominal consideration required - Offers may be accepted within a maximum of **21 days** from the date the offer is made (which must be a business day)[8](index=8&type=chunk) - A consideration of **HK$1.00** must be paid upon acceptance[8](index=8&type=chunk) [Basis for Determining Share Subscription Price](index=2&type=section&id=%E8%82%A1%E4%BB%BD%E8%AA%8D%E8%B3%BC%E5%83%B9%E7%9A%84%E9%8E%9A%E5%AE%9A%E5%9F%BA%E6%BA%96) This section details the three criteria for determining the share option subscription price, stipulating that the subscription price must not be lower than the highest of these - The subscription price for any share option shall not be less than the highest of the following three items[9](index=9&type=chunk) - 1. The closing price of the shares as stated in the daily quotation sheet of the Stock Exchange on the date of grant[9](index=9&type=chunk) - 2. The average closing price of the shares as stated in the daily quotation sheets of the Stock Exchange for the **five business days** immediately preceding the date of grant[9](index=9&type=chunk) - 3. The nominal value of the shares[10](index=10&type=chunk) [Board Members](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1) This section lists the current executive and independent non-executive directors of Hop Fung Group Holdings Limited as of the announcement date - Executive Directors include: Mr. Hui Sum Ping, Mr. Hui Sum Tai, and Ms. Hui Yuk Ling[11](index=11&type=chunk) - Independent Non-Executive Directors include: Mr. Cho Sze Wai, Mr. Wong Chu Leung, and Mr. Chow Suk Ming[11](index=11&type=chunk)

(於開曼群島註冊成立之有限公司) (股份代號：0775) 二零二五年中期業績 二零二五年中期業績 - 增加研發投資 截至二零二五年六月三十日止六個月，長江生命科技集團有限公司（「長江生命 科技」或「公司」）錄得未經審核股東應佔虧損約港幣一億五千零八十萬元，相 較去年同期之股東應佔溢利港幣一百萬元，負差異為港幣一億五千一百八十萬元。 二零二四年上半年度與二零二五年同期比較由盈轉虧，乃歸因於公司早前 計劃增加研發投資之決定，相關款項由二零二四年之港幣七千二百九十萬元 提升至二零二五年的港幣二億三千五百三十萬元，亦即公司增加投入 港幣一億六千二百四十萬元於科研項目以加快進程。 根據公司保守之會計政策，各項研發投資於產生期間以費用入賬處理。 如二零二五年上半年度的科研開支與去年相同，期內錄得之淨溢利貢獻會較 二零二四年同期略增（增幅為港幣一千零六十萬元）。 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文件的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本文件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。 董事會宣佈不派發二零二五年度中期股息（二零二四年：無） ...

Supplementary Announcement [Purpose and Background of the Announcement](index=1&type=section&id=Purpose%20and%20Background) This supplementary announcement clarifies disclosures on connected transactions in the 2024 Annual Report to ensure compliance with Chapter 14A of the Listing Rules - This announcement supplements the 2024 Annual Report of Shun Tak Holdings Limited published on April 25, 2025[3](index=3&type=chunk) - The purpose is to clarify disclosures of connected transactions in the annual report in accordance with Rule 14A.72 of the Listing Rules of The Stock Exchange of Hong Kong Limited[3](index=3&type=chunk) [Clarification and Compliance Confirmation of Connected Transactions](index=1&type=section&id=Clarification%20on%20Related%20Party%20Transactions) The announcement confirms that, except for one agreement, other related party transactions in Note 34 of the 2024 Annual Report are not subject to Chapter 14A requirements - Disclosed transaction: The **Renewed Master Consultancy Agreement** with Occasions Asia Pacific Limited (a connected person) for brand marketing and consultancy services was disclosed on pages 67 and 177 of the 2024 Annual Report[3](index=3&type=chunk) - Other than the aforementioned transaction, other related party transactions in Note 34 of the 2024 Annual Report **do not constitute connected or continuing connected transactions** subject to the announcement, circular, shareholder approval, and/or reporting requirements under Chapter 14A of the Listing Rules[3](index=3&type=chunk) - The Company has **complied with the requirements of Chapter 14A** of the Listing Rules in respect of the disclosed transaction[4](index=4&type=chunk) [Remaining Content of the Annual Report and Board of Directors](index=2&type=section&id=Remaining%20Content%20and%20Board%20Information) Except for the clarifications herein, all other information in the 2024 Annual Report remains unchanged, and the current board members are listed - Save as disclosed in this announcement, **all other information and contents set out in the 2024 Annual Report remain unchanged**[5](index=5&type=chunk) - As of August 12, 2025, the Executive Directors are Ms Ho Chiu King, Pansy; Ms Ho Chiu Fung, Daisy; Ms Ho Chiu Ha, Maisy; Mr Shum Hong Kuen, David; and Mr Ieong Ion Fan; the Independent Non-executive Directors are Mr Ho Hau Hay, Hamilton; Mr Ng Chi Man; Mr Ip Ka Keung, Charles; and Ms Iu Iu Sam[7](index=7&type=chunk)

[Performance Highlights](index=1&type=section&id=Highlights) The company reported an 8.9% revenue growth and 10.4% operating profit increase, primarily driven by strong pork sales offsetting a decline in meat product volume Key Performance Indicators for the Six Months Ended June 30, 2025 | Indicator | H1 2025 | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Data** | | | | | Meat Products Sales Volume (Thousand Metric Tons) | 1,451 | 1,501 | -3.3% | | Pork Sales Volume (Thousand Metric Tons) | 1,960 | 1,823 | +7.5% | | **Financial Data (Million USD)** | | | | | Revenue | 13,387 | 12,293 | +8.9% | | Operating Profit | 1,259 | 1,140 | +10.4% | | Profit Attributable to Owners (before biological fair value adjustment) | 725 | 694 | +4.5% | | Profit Attributable to Owners (after biological fair value adjustment) | 788 | 784 | +0.5% | | **Per Share Data** | | | | | Basic Earnings Per Share (Cents, before adjustment) | 5.65 | 5.41 | +4.4% | | Basic Earnings Per Share (Cents, after adjustment) | 6.14 | 6.11 | +0.5% | | Interim Dividend Per Share (HKD) | 0.20 | 0.10 | +100% | - During the reporting period, the company's overall revenue grew by **8.9%**, and operating profit increased by **10.4%**. Despite a **3.3%** decrease in core meat product sales volume, pork sales volume achieved a **7.5%** increase, becoming the main driver of performance[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) [Management Discussion and Analysis](index=2&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the company's operational performance, market dynamics, and strategic initiatives across its global segments, highlighting key drivers and challenges Segment Performance Overview (Million USD) | Segment | Revenue (H1 2025) | Revenue (H1 2024) | Revenue Change | Operating Profit (H1 2025) | Operating Profit (H1 2024) | Operating Profit Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Meat Products | 6,640 | 6,491 | +2.3% | 1,047 | 1,137 | -7.9% | | Pork | 5,623 | 4,926 | +14.1% | 255 | 95 | +168.4% | | Other | 1,124 | 876 | +28.3% | (43) | (92) | N/A | | **Total** | **13,387** | **12,293** | **+8.9%** | **1,259** | **1,140** | **+10.4%** | - Meat products business remains the group's core, contributing **83.2%** of operating profit and **49.6%** of revenue[15](index=15&type=chunk) [Industry Overview](index=2&type=section&id=Industry%20Overview) The group's three major markets—China, the US, and Europe—showed divergent trends, influenced by supply, demand, and trade dynamics - The group's global operations span China, North America, and Europe, with North America contributing the largest share of revenue (**55.2%**) and operating profit (**53.6%**) during the period[8](index=8&type=chunk) [China Market](index=2&type=section&id=China) China's market saw ample hog supply and limited consumption growth, leading to a slight decline in hog prices despite increased pork imports - China's market maintained ample hog supply but limited consumption growth, resulting in a modest **0.8%** year-on-year decrease in average hog prices to **RMB 15.5 per kilogram**[9](index=9&type=chunk) - Despite complex international trade conditions, China's total imports of pork and offal increased by **3.4%** to **1.15 million metric tons** during the review period[10](index=10&type=chunk) [US Market](index=3&type=section&id=US) The US market experienced rising hog prices and pork values due to tighter supply and strong demand, which challenged slaughtering operations and reduced exports - Tightened pork supply and firm prices for other meats fueled strong US domestic pork demand, driving average hog prices up **8.7%** and average pork values up **4.5%** year-on-year[11](index=11&type=chunk) - Pork value growth lagged hog price increases, creating an unfavorable operating environment for slaughtering companies, while high prices and tariffs led to a **4.0%** year-on-year decrease in pork exports[11](index=11&type=chunk) [Europe Market](index=3&type=section&id=Europe) Europe saw increased pork production and trade disruptions, leading to an 8.3% decline in average carcass prices, which boosted export competitiveness - Total EU pork production increased by **1.2%** year-on-year, with increased supply and trade disruptions from foot-and-mouth disease in some regions driving an **8.3%** decrease in average EU carcass prices[13](index=13&type=chunk) - Falling prices enhanced the export competitiveness of pork products, leading to a **1.9%** year-on-year increase in total EU exports, including a **6.0%** rise in exports to China[13](index=13&type=chunk) [Operating Performance](index=4&type=section&id=Operating%20Performance) The group's overall revenue grew by 8.9% to $13.387 billion, and operating profit increased by 10.4% to $1.259 billion, primarily driven by strong pork business performance [Meat Products Segment](index=5&type=section&id=Meat%20Products) The Meat Products segment's operating profit declined by 7.9% to $1.047 billion, primarily due to weak demand in China and increased raw material costs in North America - Meat Products segment operating profit decreased by **7.9%** to **$1.047 billion**, primarily due to declining sales and profits in China from weak demand, and squeezed margins in North America as raw material costs outpaced selling price increases[18](index=18&type=chunk) Meat Products Segment Performance by Region (Million USD) | Region | Revenue (H1 2025) | Revenue Change | Operating Profit (H1 2025) | Operating Profit Change | | :--- | :--- | :--- | :--- | :--- | | China | 1,531 | -9.8% | 411 | -10.7% | | North America | 4,102 | +4.0% | 569 | -7.3% | | Europe | 1,007 | +18.3% | 67 | +6.3% | - European operations showed strong performance, with revenue and operating profit growing by **18.3%** and **6.3%** respectively, driven by the acquisition of Argal and effective pricing discipline[17](index=17&type=chunk)[18](index=18&type=chunk) [Pork Segment](index=6&type=section&id=Pork) The Pork segment's operating profit surged by 168.4% to $255 million, mainly driven by the turnaround of North American hog farming operations - Pork segment operating profit surged by **168.4%** to **$255 million**, primarily driven by the turnaround of North American hog farming operations to profitability[20](index=20&type=chunk) Pork Segment Performance by Region (Million USD) | Region | Revenue (H1 2025) | Revenue Change | Operating Profit (H1 2025) | Operating Profit Change | | :--- | :--- | :--- | :--- | :--- | | China | 1,795 | +8.4% | 28 | — | | North America | 3,279 | +21.0% | 163 | N/A (Loss of $4 million in prior period) | | Europe | 549 | -2.0% | 64 | -9.9% | - Global hog slaughter volume increased by **6.2%** to **23.67 million heads** year-on-year, and external pork sales grew by **7.5%**, collectively driving a **14.1%** increase in revenue[19](index=19&type=chunk)[20](index=20&type=chunk) [Other Segments](index=7&type=section&id=Other) Other segments' revenue increased by 28.3% to $1.124 billion, contributing positively to profit, primarily due to the poultry business returning to profitability - Other business revenue grew by **28.3%** to **$1.124 billion** and contributed to profitability, primarily due to the poultry business returning to profit[21](index=21&type=chunk) - Poultry business slaughter volume increased by **11.8%** to **182 million birds**, with external sales up **13.0%**, forming a key part of the group's protein diversification strategy[21](index=21&type=chunk) [Significant Corporate Developments](index=8&type=section&id=Significant%20Corporate%20Developments) The most significant development was the successful spin-off and Nasdaq listing of Smithfield, generating $534 million in net cash proceeds and a subsequent $325 million special dividend to shareholders [Smithfield's Independent Listing on Nasdaq](index=8&type=section&id=Smithfield's%20Independent%20Listing%20on%20Nasdaq%20Global%20Select%20Market) In January 2025, the group successfully spun off its North American business, Smithfield, for independent listing on Nasdaq under the ticker 'SFD' - In January 2025, the group spun off its North American business, Smithfield, for independent listing on Nasdaq under the ticker **'SFD'**[22](index=22&type=chunk) - The group received approximately **$534 million** in net cash proceeds from selling a portion of Smithfield's shares[22](index=22&type=chunk) - Following the listing, the group distributed approximately **$325 million** in total special cash and in-specie dividends to shareholders[22](index=22&type=chunk) [Financial Position and Capital Management](index=8&type=section&id=Financial%20Position%20and%20Capital%20Management) The group maintained strong liquidity with $1.832 billion in cash and $6.197 billion in unused bank facilities, while managing increased debt and stable financial costs, retaining investment-grade credit ratings [Liquidity](index=9&type=section&id=Liquidity) The group maintained robust liquidity with $1.832 billion in cash and $6.197 billion in unused bank facilities, with a stable current ratio of 1.9 times Liquidity Position (Million USD) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Bank Balances | 1,832 | 2,055 | | Unused Bank Facilities | 6,197 | 5,358 | | Current Ratio | 1.9x | 1.9x | [Credit Profile](index=9&type=section&id=Credit%20Profile) The group maintained strong investment-grade credit ratings with stable outlooks from Fitch (BBB+), S&P Global (BBB), and Moody's (Baa2) - The group maintained strong investment-grade credit ratings with stable outlooks: - Fitch: **BBB+** - S&P Global: **BBB** - Moody's: **Baa2**[26](index=26&type=chunk) [Debt Profile](index=10&type=section&id=Debt%20Profile) Total outstanding loans increased to $3.875 billion, with 99.9% being unsecured, and no defaults occurred during the period Outstanding Loan Analysis (Million USD) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **By Nature** | | | | Senior Unsecured Notes | 1,984 | 1,982 | | Bank Loans | 1,885 | 1,318 | | **Total** | **3,875** | **3,310** | | **By Region** | | | | North America | 1,984 | 1,983 | | China | 1,722 | 1,099 | | Europe | 169 | 228 | - As of June 30, 2025, **99.9%** of the group's loans were unsecured, with no defaults occurring during the period[29](index=29&type=chunk) [Leverage Ratios](index=11&type=section&id=Leverage%20Ratios) Leverage ratios increased, with the net debt-to-equity ratio rising from 11.0% to 17.0%, reflecting the increase in total loans Changes in Leverage Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt-to-Equity Ratio | 32.2% | 29.1% | | Net Debt-to-Equity Ratio | 17.0% | 11.0% | | Debt-to-EBITDA Ratio | 1.2x | 1.1x | | Net Debt-to-EBITDA Ratio | 0.6x | 0.4x | [Financial Costs](index=11&type=section&id=Financial%20Costs) Despite an increase in total loans, financial costs remained stable at $74 million due to a decrease in the average interest rate on outstanding loans to 2.74% - Despite an increase in total loans, financial costs remained stable at **$74 million** due to a decrease in applicable loan interest rates, with the average interest rate on outstanding loans falling from **2.95%** to **2.74%**[32](index=32&type=chunk) [Human Resources](index=12&type=section&id=Human%20Resources) As of the reporting period end, the group employed approximately 100,000 people globally, with total compensation expenses rising by 6.1% to $2.131 billion due to wage inflation and share-based compensation - As of June 30, 2025, the group employed approximately **100,000 employees** globally, with **46,000** in China, **35,000** in North America, and **19,000** in Europe[33](index=33&type=chunk) - Total compensation expenses for the period were **$2.131 billion**, a **6.1%** year-on-year increase, primarily influenced by global wage inflation and share-based compensation[34](index=34&type=chunk) [Biological Assets](index=12&type=section&id=Biological%20Assets) The fair value of the group's biological assets was $1.343 billion, with a net gain of $62 million from fair value adjustments, lower than the prior year's gain Biological Assets Quantity and Value | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Hogs (Ten Thousand Heads) | 1,080 | 1,260 (Estimated) | | Total Poultry (Ten Thousand Birds) | 3,270 | 2,170 (Estimated) | | **Fair Value (Million USD)** | **1,343** | **1,441** | - During the reporting period, the net impact of biological fair value adjustments on profit or loss was a gain of **$62 million**, compared to a gain of **$96 million** in the prior period[35](index=35&type=chunk) [Major Investments and Restructuring Activities](index=13&type=section&id=Major%20Investments%20and%20Restructuring%20Activities) The group undertook strategic initiatives including forming US joint ventures for hog supply, restructuring US western operations, and acquiring a controlling stake in Spain's Argal to bolster European growth - Established two joint ventures in the US, Murphy Farms and VisionAg Hog Production, to secure a stable annual supply of approximately **3.8 million hogs**[36](index=36&type=chunk)[37](index=37&type=chunk) - Continued restructuring of US western operations to address persistently rising operating costs in certain regions[38](index=38&type=chunk) - Completed the acquisition of a **50.1%** equity stake in Spanish meat product producer Argal, aiming to establish it as the group's growth platform in Spain and Europe[41](index=41&type=chunk) [Capital Expenditures](index=14&type=section&id=Capital%20Expenditures) Total capital expenditures for the period were $290 million, a decrease from $349 million in the prior year, with investments focused on production facilities in China, North America, and Europe Capital Expenditures by Region (Million USD) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | China | 73 | 117 | | North America | 158 | 173 | | Europe | 59 | 59 | | **Total** | **290** | **349** | - Capital expenditures were primarily allocated to the construction, renovation, and modernization of production plants and related facilities[43](index=43&type=chunk)[46](index=46&type=chunk) [Key Risks and Their Management](index=15&type=section&id=Key%20Risks%20and%20Their%20Management) The group manages risks such as commodity price volatility, currency and interest rate fluctuations, and contingent liabilities, including ongoing antitrust litigation in the US [Commodity Price Risk](index=15&type=section&id=Commodity%20Price%20Risk) The group mitigates commodity price volatility for hogs, pork, and corn through effective inventory management, cost pass-through, overseas imports, and hedging in active markets - The group mitigates the impact of price fluctuations in commodities like hogs, pork, and corn through effective inventory management, cost pass-through, overseas imports, and hedging in active markets[48](index=48&type=chunk) [Currency and Interest Rate Risk](index=16&type=section&id=Currency%20and%20Interest%20Rate%20Risk) The group manages currency risk by settling in local currencies and hedging significant exposures, while optimizing its debt portfolio with 91.8% fixed-rate loans to manage interest rate risk - The group mitigates currency risk by settling in local currencies across regions and actively monitoring and hedging significant foreign exchange exposures, while managing interest rate risk by optimizing its debt portfolio, with approximately **91.8%** of loans at fixed rates by period-end[49](index=49&type=chunk) [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) Smithfield faces ongoing antitrust lawsuits in the US, having settled collective claims for $194 million, with 22 individual cases still pending active defense - Smithfield faces antitrust lawsuits in the US, having paid approximately **$194 million** to settle all collective claims, with **22 individual cases** still pending and the company intending to actively defend against them[51](index=51&type=chunk) [Sustainability](index=17&type=section&id=Sustainability) The group integrates sustainability into its governance through a board-level ESG committee, maintaining an A+ rating on the Hang Seng Corporate Sustainability Index and a BBB ESG rating from MSCI - The group has a board-level Environmental, Social, and Governance (ESG) Committee responsible for setting sustainability goals and guiding development strategies[52](index=52&type=chunk) - The company remains a constituent of the Hang Seng Corporate Sustainability Index with an **A+** rating, and MSCI maintains its **BBB** ESG rating[53](index=53&type=chunk) [Outlook](index=17&type=section&id=Outlook) Management plans to focus on core meat products, drive transformation in China, maintain profitability in the US, expand in Europe, and enhance pork business efficiency, aiming for stable performance and shareholder returns amidst global uncertainties - Future strategic priorities include product and channel transformation in China, maintaining high profitability in the US, scaling up and enhancing profit contribution in Europe, and improving hog farming metrics and processing efficiency for the pork business[55](index=55&type=chunk) [Condensed Consolidated Financial Statements](index=18&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the group's condensed consolidated financial statements, including the income statement, balance sheet, and cash flow statement, for the reporting period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=18&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The group reported revenue of $13.387 billion, a profit for the period of $919 million, and profit attributable to owners of $788 million, resulting in basic earnings per share of 6.14 cents [Condensed Consolidated Statement of Financial Position](index=20&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were $20.846 billion, total liabilities were $8.795 billion, and net assets were $12.051 billion, with a current ratio of 1.9 times [Condensed Consolidated Statement of Cash Flows](index=22&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash generated from operating activities was $767 million, while investing and financing activities resulted in net cash outflows of $829 million and $147 million respectively, leading to a period-end cash balance of $1.832 billion [Notes to the Condensed Interim Consolidated Financial Information](index=23&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Information) This section provides detailed notes to the condensed interim consolidated financial information, offering further insights into segment performance and dividend declarations [Segment Information](index=24&type=section&id=Segment%20Information) This note details revenue and profit data by business segment (Meat Products, Pork, Other) and region (China, North America, Europe), highlighting North America as the largest contributor and Pork as the primary driver of profit growth Segment Revenue and Profit for H1 2025 (Million USD) | Segment | Region | External Revenue | Reportable Segment Profit | | :--- | :--- | :--- | :--- | | **Meat Products** | | **6,640** | **1,047** | | | China | 1,531 | 411 | | | North America | 4,102 | 569 | | | Europe | 1,007 | 67 | | **Pork** | | **5,623** | **255** | | | China | 1,795 | 28 | | | North America | 3,279 | 163 | | | Europe | 549 | 64 | | **Other** | | **1,124** | **(43)** | [Dividends](index=28&type=section&id=Dividends) The board proposed an interim dividend of HKD 0.20 per share for the six months ended June 30, 2025, double the prior year's dividend, payable around September 30, 2025 - The Board proposed an interim dividend of **HKD 0.20 per share** for 2025, double the **HKD 0.10 per share** paid in the prior period of 2024[78](index=78&type=chunk) [Other Information](index=36&type=section&id=Other%20Information) This section covers additional corporate governance and financial details, including the Audit Committee's review and the interim dividend announcement [Audit Committee](index=36&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the group's interim results, internal controls, and financial reporting matters - The company's Audit Committee, composed of three independent non-executive directors, reviewed the interim results for the period in conjunction with management[95](index=95&type=chunk) [Interim Dividend](index=37&type=section&id=Interim%20Dividend) The Board proposed an interim dividend of HKD 0.20 per share, totaling approximately $327 million, payable around September 30, 2025, with relevant record date arrangements announced - The Board proposed an interim dividend of **HKD 0.20 per share**, totaling approximately **$327 million**, expected to be paid around September 30, 2025[99](index=99&type=chunk)