[Financial Summary](index=1&type=section&id=Financial%20Summary) In H1 2025, the company's revenue grew by 22.0%, but profit after tax decreased by 33.7% and profit attributable to owners of the Company fell by 66.0% Key Financial Indicators for H1 2025 | Indicator | H1 2025 (S$ thousand) | H1 2024 (S$ thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 212,895 | 174,573 | +22.0% | | Gross Profit | 50,528 | 44,393 | +13.8% | | Profit after tax | 3,847 | 5,806 | -33.7% | | Profit attributable to owners of the Company | 1,286 | 3,781 | -66.0% | | Basic earnings per share (cents) | 0.29 | 0.85 | -65.9% | - The Board does not recommend an interim dividend for H1 2025, consistent with the prior year[3](index=3&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=A.%20Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) H1 2025 revenue grew 22.0%, but profit for the period dropped 33.7% and profit attributable to owners fell 66.0% due to increased costs and foreign exchange losses Key Consolidated Statement of Profit or Loss Data | Item | H1 2025 (S$ thousand) | H1 2024 (S$ thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 212,895 | 174,573 | +22.0% | | Gross Profit | 50,528 | 44,393 | +13.8% | | Profit before income tax | 7,475 | 8,515 | -12.2% | | Profit for the period | 3,847 | 5,806 | -33.7% | | Profit attributable to owners of the Company | 1,286 | 3,781 | -66.0% | | Basic earnings per share (cents) | 0.29 | 0.85 | -65.9% | - Other comprehensive loss was primarily driven by a **S$5.66 million** foreign exchange difference, a significant negative shift from the **S$0.44 million** gain in the prior year, impacting total comprehensive income[7](index=7&type=chunk) [Consolidated Statement of Financial Position](index=4&type=section&id=B.%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly increased to S$423 million, driven by higher non-current service concession receivables, while total liabilities rose and total equity slightly decreased to S$245 million Key Consolidated Statement of Financial Position Items (Group) | Item | June 30, 2025 (S$ thousand) | December 31, 2024 (S$ thousand) | | :--- | :--- | :--- | | **Total Assets** | **423,366** | **415,905** | | Non-current assets | 189,765 | 169,527 | | Current assets | 233,601 | 246,378 | | **Total Liabilities** | **178,174** | **168,693** | | Non-current liabilities | 47,253 | 55,519 | | Current liabilities | 130,921 | 113,174 | | **Total Equity** | **245,192** | **247,212** | - Non-current service concession receivables significantly increased from **S$81.65 million** to **S$102 million**, serving as the primary driver for asset growth[9](index=9&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=C.%20Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) In H1 2025, total equity slightly decreased from S$247 million to S$245 million, as profit for the period was offset by other comprehensive losses, primarily from negative foreign exchange reserve movements - Equity attributable to owners of the Company decreased from **S$207 million** to **S$203 million**, mainly due to a total comprehensive loss of **S$3.32 million**, which included **S$1.29 million** profit and **S$4.61 million** foreign exchange reserve loss[11](index=11&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=D.%20Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to S$7.22 million in H1 2025, primarily due to changes in service concession receivables, leading to a slight reduction in period-end cash and cash equivalents Consolidated Cash Flow Statement Summary (Group) | Item | H1 2025 (S$ thousand) | H1 2024 (S$ thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 7,218 | 15,546 | | Net cash used in investing activities | (5,277) | (3,643) | | Net cash used in financing activities | (2,777) | (10,323) | | Net decrease/increase in cash and cash equivalents | (836) | 1,580 | | Cash and cash equivalents at end of period | 56,071 | 60,071 | - The decline in operating cash flow was primarily due to a **S$20.49 million** outflow from "changes in receivables from service concession arrangements", significantly higher than the **S$0.70 million** in the prior year[15](index=15&type=chunk) [Notes to the Interim Condensed Consolidated Financial Statements](index=9&type=section&id=E.%20Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [5 Segment Information](index=10&type=section&id=5%20Segment%20Information) In H1 2025, renewable energy and other specialized engineering solutions segments saw significant revenue growth, while motion control remained stable, with China as the largest market and Indonesia showing substantial growth External Sales Revenue by Business Segment (S$ thousand) | Business Segment | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Engineering Solutions—Motion Control | 131,788 | 131,098 | +0.5% | | Other Specialized Engineering Solutions | 44,541 | 34,805 | +28.0% | | Industrial Computing Solutions | 3,166 | 3,101 | +2.1% | | Renewable Energy | 32,479 | 4,961 | +554.7% | | **Total** | **212,895** | **174,573** | **+22.0%** | Revenue from External Customers by Geographical Region (S$ thousand) | Region | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | China | 132,279 | 127,671 | +3.6% | | Indonesia | 32,757 | 5,190 | +531.2% | | Singapore | 17,702 | 15,807 | +12.0% | | Other | 29,157 | 25,905 | +12.6% | [10 Basic Earnings Per Share](index=18&type=section&id=10%20Basic%20Earnings%20Per%20Share) Basic and diluted earnings per share decreased by 65.9% to 0.29 cents, primarily due to a significant decline in profit attributable to owners of the Company Earnings Per Share Calculation | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to owners (S$ thousand) | 1,286 | 3,781 | | Weighted average number of ordinary shares | 448,590,125 | 446,000,209 | | Basic and diluted earnings per share (cents) | 0.29 | 0.85 | [15 Trade and Other Receivables](index=21&type=section&id=15%20Trade%20and%20Other%20Receivables) Group receivables are mainly service concession and trade receivables, with non-current service concession receivables significantly increasing to S$102 million, and over 90-day trade receivables accounting for 23.9% - Non-current service concession receivables significantly increased, reflecting the long-term contractual nature of the renewable energy business[66](index=66&type=chunk) Trade Receivables Ageing Analysis (Group) | Ageing | June 30, 2025 (S$ thousand) | December 31, 2024 (S$ thousand) | | :--- | :--- | :--- | | Within 30 days | 38,624 | 40,337 | | 31 to 90 days | 32,078 | 29,197 | | Over 90 days | 22,185 | 24,264 | | **Total** | **92,887** | **93,798** | [Management Discussion and Analysis](index=26&type=section&id=F.%20Management%20Discussion%20and%20Analysis) [Business Review](index=26&type=section&id=Business%20Review) H1 2025 revenue grew 22.0% (27.0% at constant currency) driven by industrial automation and renewable energy construction, but profit attributable to owners declined 66.0% due to unrealized FX losses, though core profit grew 35.1% excluding this impact - Core industrial automation business revenue grew by **6.4%** (**10.4%** at constant currency), accounting for **84.7%** of total revenue[88](index=88&type=chunk) - Renewable energy business saw significant growth, with **S$27.10 million** in construction revenue from two small hydropower plants under construction, projected to increase total installed capacity by **81.3%** upon 2026 operation[88](index=88&type=chunk) - China's industrial automation business revenue increased by **3.7%** (**9.7%** in RMB terms), surpassing China's GDP growth, highlighting its critical role in the economy[86](index=86&type=chunk) - Southeast Asia industrial automation business revenue grew by **15.1%**, benefiting from global supply chain diversification and regional industrial upgrades, with strong growth in Malaysia, Thailand, and Taiwan[91](index=91&type=chunk) [Business Outlook](index=28&type=section&id=Business%20Outlook) The Group maintains cautious optimism, focusing on capability enhancement and market expansion, with strong growth prospects in industrial automation in China and Southeast Asia, and significant opportunities in renewable energy in Indonesia - China market: Government investments in robotics and AI, along with the 15th Five-Year Plan's focus on technological innovation, will create favorable conditions for long-term growth[100](index=100&type=chunk)[102](index=102&type=chunk) - Markets outside China: Strategic expansion in Malaysia, Thailand, and Taiwan has shown initial success, benefiting from enhanced industrial manufacturing capabilities in Southeast and East Asia[104](index=104&type=chunk) - Renewable Energy: Indonesia's new Electricity Supply Business Plan (RUPTL) significantly raises renewable energy targets, with hydropower as the second-largest expansion source, promising long-term stable revenue and profit growth[105](index=105&type=chunk) [Financial Review](index=30&type=section&id=Financial%20Review) Revenue growth was driven by renewable energy construction and industrial automation, but overall gross margin decreased to 23.7% due to lower-margin construction revenue, while other operating expenses rose significantly due to S$5.3 million in foreign exchange losses, maintaining a healthy gearing ratio of 34.9% Revenue and Gross Profit Analysis (S$ thousand) | Segment | Revenue (H1 2025) | Gross Profit (H1 2025) | Gross Margin (H1 2025) | Gross Margin (H1 2024) | | :--- | :--- | :--- | :--- | :--- | | Industrial Automation | 180,416 | 43,574 | 24.2% | 23.5% | | Renewable Energy | 32,479 | 6,954 | 21.4% | 91.4% | | - Operations & Financing | 5,352 | 4,944 | 92.4% | 91.4% | | - Construction Revenue | 27,127 | 2,010 | 7.4% | N/A | | **Total** | **212,895** | **50,528** | **23.7%** | **25.4%** | - Other operating expenses increased by **S$6.4 million**, primarily due to a **S$5.3 million** foreign exchange loss from the revaluation of receivables and payables caused by a weaker USD against SGD and a stronger USD against IDR[115](index=115&type=chunk) - As of June 30, 2025, the Group's gearing ratio (total borrowings/shareholders' equity) was **34.9%**, slightly higher than **34.0%** at the end of 2024[137](index=137&type=chunk) [Other Information](index=36&type=section&id=G.%20Other%20Information) [Dividend Information](index=36&type=section&id=Dividend%20Information) Considering economic and operating uncertainties, the Board decided not to recommend an interim dividend for 2025, aiming to conserve funds for business development - The Board did not declare or recommend an interim dividend for the period ended June 30, 2025[155](index=155&type=chunk) [Material Acquisitions and Disposals](index=38&type=section&id=Material%20Acquisitions%20and%20Disposals) During the period, the Group engaged in capital activities including the proposed acquisition of 51% equity in PT Funda Konstruksi Engineering, establishment of a wholly-owned subsidiary, and completion of 51% acquisition of IFME Works to enhance capabilities in power facility construction, management services, and engineering solutions - On May 15, 2025, the Company completed the acquisition of **51.0%** equity in IFME Works Pte. Ltd. for **S$2.5 million**, making it a subsidiary of the Group[166](index=166&type=chunk) - On March 20, 2025, the Company established a wholly-owned subsidiary, Estun (Jiangxi) Management Co., Ltd., with a registered capital of **US$15 million**, primarily for management services and property holding[165](index=165&type=chunk) [Corporate Governance](index=38&type=section&id=Corporate%20Governance) The Group adheres to Singapore and Hong Kong corporate governance codes, with an Audit Committee comprising three independent non-executive directors who reviewed the unaudited financial results, confirming compliance with accounting standards and listing rules - The Group has complied with the provisions of the 2018 revised Code of Corporate Governance in Singapore and the Corporate Governance Code in Hong Kong[167](index=167&type=chunk) - The Audit Committee, composed of three independent non-executive directors, has reviewed the unaudited consolidated results of the Group for the period[170](index=170&type=chunk)

[Unaudited Consolidated Results](index=1&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E6%A5%AD%E7%B8%BE) This section presents the company's unaudited financial performance and position for the first half of 2025, highlighting significant revenue growth and changes in assets and liabilities [Unaudited Consolidated Statement of Comprehensive Income](index=1&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The company's revenue nearly doubled in the first half of 2025, with significant increases in profit for the period and profit attributable to shareholders, though gross margin declined; basic and diluted earnings per share rose to **6.70 US cents** Key Unaudited Financial Data for H1 2025 (USD thousands) | Metric | 2025 (USD thousands) | 2024 (USD thousands) | | :--- | :--- | :--- | | Revenue | 323,328 | 107,979 | | Cost of sales | (281,545) | (89,990) | | Gross profit | 41,783 | 17,989 | | Profit before tax | 24,206 | 3,557 | | Profit for the period | 19,989 | 2,733 | | Profit attributable to equity holders of the Company | 17,046 | 1,963 | | Basic and diluted earnings per share (US cents) | 6.70 | 0.80 | - Total comprehensive income for the period shifted from a **negative USD 1,731 thousand** in H1 2024 to **positive USD 24,393 thousand** in H1 2025, primarily due to foreign currency translation differences from overseas operations and positive other comprehensive income from joint ventures and associates[4](index=4&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total assets and shareholders' equity both increased, net current assets rose, current liabilities slightly increased, and non-current liabilities decreased Unaudited Consolidated Financial Position as of June 30, 2025 (USD thousands) | Metric | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | | :--- | :--- | :--- | | Total non-current assets | 226,970 | 224,182 | | Total current assets | 221,560 | 198,032 | | Total current liabilities | 147,039 | 144,208 | | Net current assets | 74,521 | 53,824 | | Total assets less current liabilities | 301,491 | 278,006 | | Total non-current liabilities | 16,586 | 17,494 | | Net assets | 284,905 | 260,512 | | Total equity | 284,905 | 260,512 | [Notes to the Unaudited Consolidated Financial Statements](index=5&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of preparation, changes in accounting policies, operating segment information, and specific financial statement line items for the interim period [Basis of Preparation](index=5&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This unaudited interim financial report is prepared in accordance with IAS 34 and the Listing Rules, consistent with the accounting policies of the 2024 annual financial statements, and presented in USD - The financial report is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) - Accounting policies and basis of preparation are consistent with those adopted in the annual financial statements for the year ended December 31, 2024[7](index=7&type=chunk) - This interim financial information is presented in USD, with all amounts rounded to the nearest **thousand USD**[8](index=8&type=chunk) [Changes in Accounting Policies and Disclosures](index=5&type=section&id=2.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E4%B9%8B%E6%9B%B4%E6%94%B9) The Group applied amendments to IAS 21, which had no significant impact on the interim financial report due to the absence of transactions in non-exchangeable currencies, and no other new standards not yet in effect were adopted - The Group has applied the amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" issued by the IASB to the interim financial report for the current accounting period[9](index=9&type=chunk) - As the Group did not enter into any foreign currency transactions that are not exchangeable into other currencies, the amendments had no significant impact on this interim financial report[9](index=9&type=chunk) - The Group has not early adopted any new standards or interpretations that are not yet effective for the current accounting period[10](index=10&type=chunk) [Operating Segment Information](index=6&type=section&id=3.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's operations are divided into two reportable segments, Biochemical and Industrial, with management independently monitoring their performance; the Biochemical segment contributes all consolidated revenue, while the Industrial segment operates through joint ventures and associates - The Group's operations are divided into two reportable operating segments based on products and services: the Biochemical segment (manufacturing and/or sales of animal health pharmaceutical products and aureomycin) and the Industrial segment (trading of machinery and equipment, and manufacturing and sales of automotive parts)[11](index=11&type=chunk)[13](index=13&type=chunk) - Segment performance is assessed based on the profit of reportable segments, calculated as adjusted profit before tax, excluding bank interest income, finance costs, and items not attributable to individual segments[11](index=11&type=chunk) - All revenue from contracts with customers is recognized when control over the promised products is transferred to the customer, either upon delivery to the customer's premises (domestic sales) or according to sales terms and conditions (export sales)[11](index=11&type=chunk) [Reportable Operating Segments](index=7&type=section&id=3.(a)%20%E5%8F%AF%E5%91%88%E5%A0%B1%E7%B6%93%E7%87%9F%E5%88%86%E9%A1%9E) The Biochemical segment achieved significant revenue growth in H1 2025, contributing all external group revenue, while the Industrial segment primarily contributed profit through joint ventures and associates, with segment assets and liabilities allocated between the two businesses Reportable Operating Segment Performance for H1 2025 (USD thousands) | Metric | Biochemical Business | Industrial Business | Total | | :--- | :--- | :--- | :--- | | Segment revenue (sales to external customers) | 323,328 | – | 323,328 | | Group segment results | 24,465 | (424) | 24,041 | | Share of profit of joint ventures | – | 1,350 | 1,350 | | Share of profit of associates | – | 783 | 783 | | Profit before tax | | | 24,206 | | Depreciation and amortization | 4,478 | – | 4,478 | | Capital expenditure | 1,150 | – | 1,150 | Reportable Operating Segment Assets and Liabilities as of June 30, 2025 (USD thousands) | Metric | Biochemical Business | Industrial Business | Total | | :--- | :--- | :--- | :--- | | Segment assets | 285,765 | 127,260 | 413,025 | | Total assets | | | 448,530 | | Segment liabilities | 94,142 | – | 94,142 | | Total liabilities | | | 163,625 | | Investment in joint ventures | – | 102,068 | 102,068 | | Investment in associates | – | 22,581 | 22,581 | Reportable Operating Segment Performance for H1 2024 (USD thousands) | Metric | Biochemical Business | Industrial Business | Total | | :--- | :--- | :--- | :--- | | Segment revenue (sales to external customers) | 107,979 | – | 107,979 | | Group segment results | 4,954 | (973) | 3,981 | | Share of profit of joint ventures | – | 114 | 114 | | Share of profit of associates | – | 1,161 | 1,161 | | Profit before tax | | | 3,557 | | Depreciation and amortization | 3,938 | – | 3,938 | | Capital expenditure | 8,950 | – | 8,950 | Reportable Operating Segment Assets and Liabilities as of December 31, 2024 (USD thousands) | Metric | Biochemical Business | Industrial Business | Total | | :--- | :--- | :--- | :--- | | Segment assets | 266,009 | 123,783 | 389,792 | | Total assets | | | 422,214 | | Segment liabilities | 83,044 | 60 | 83,104 | | Total liabilities | | | 161,702 | | Investment in joint ventures | – | 98,717 | 98,717 | | Investment in associates | – | 21,383 | 21,383 | [Geographical Information](index=10&type=section&id=3.(b)%20%E5%9C%B0%E5%8D%80%E8%B3%87%E6%96%99) In H1 2025, Mainland China was the primary source of group revenue with a significant increase in contribution, while revenue from Asia Pacific, Americas, Europe, and other regions also grew; the vast majority of the Group's non-current assets are located in Mainland China Revenue from External Customers by Location (USD thousands) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Mainland China | 267,093 | 74,072 | | Asia Pacific (excluding Mainland China) | 21,382 | 11,245 | | Americas | 20,977 | 15,097 | | Europe and other regions | 13,876 | 7,565 | | **Total** | **323,328** | **107,979** | - As of June 30, 2025, **99%** (December 31, 2024: 99%) of the Group's non-current assets were located in Mainland China[22](index=22&type=chunk) [Revenue](index=11&type=section&id=4.%20%E6%94%B6%E5%85%A5) Revenue represents the net invoiced amount of sales after deducting VAT, government surcharges, returns, and trade discounts, recognized under IFRS 15, and entirely derived from the Biochemical business - Revenue represents the net cumulative invoiced amount of sales after deducting VAT and government surcharges, and after deducting returns and trade discounts, recognized within the scope of IFRS 15[23](index=23&type=chunk) - All of the Group's revenue is derived from the Biochemical business[23](index=23&type=chunk) [Other Net Income](index=11&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) Other net income for H1 2025 was **USD 1,788 thousand**, a decrease from the prior period, mainly due to losses on disposal of property, plant and equipment and reduced government grants, though foreign currency translation differences turned into net income Analysis of Other Net Income (USD thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank interest income | 439 | 694 | | Government grants | 731 | 1,066 | | Net loss/(income) on disposal of property, plant and equipment | (537) | 929 | | Net foreign currency translation differences | 881 | (521) | | Service income | – | 987 | | Others | 274 | 152 | | **Total** | **1,788** | **3,307** | [Finance Costs](index=11&type=section&id=6.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs for H1 2025 were **USD 1,059 thousand**, a decrease from the prior period, primarily due to reduced interest expenses on bank borrowings and adjustments in interest capitalization rates Analysis of Finance Costs (USD thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest expense on bank borrowings | 1,245 | 1,604 | | Less: Interest expense capitalized | (186) | (355) | | **Total** | **1,059** | **1,249** | - Interest expense capitalized is calculated at annual interest rates ranging from **2.6% to 4.2%** (six months ended June 30, 2024: 3.2% to 5.1%) for each loan agreement[25](index=25&type=chunk) [Profit Before Tax](index=12&type=section&id=7.%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax for H1 2025 was **USD 24,206 thousand**, primarily after deducting cost of inventories sold, depreciation of property, plant and equipment, and amortization of prepaid land lease payments Deductions from Profit Before Tax (USD thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 281,545 | 89,990 | | Depreciation of property, plant and equipment | 4,419 | 3,877 | | Amortization of prepaid land lease payments | 59 | 61 | [Income Tax](index=12&type=section&id=8.%20%E6%89%80%E5%BE%97%E7%A8%85) The Group had no assessable income in Hong Kong, while its PRC subsidiaries are subject to income tax at a **25%** rate, with some enjoying tax concessions; total income tax expense for H1 2025 was **USD 4,217 thousand** - The Group did not earn any assessable income in Hong Kong during the period, thus no provision for Hong Kong profits tax was made[27](index=27&type=chunk) - Subsidiaries operating in the People's Republic of China are subject to income tax at a rate of **25%** on their assessable income, with certain subsidiaries enjoying exemptions or reductions in income tax[27](index=27&type=chunk) Analysis of Income Tax Expense (USD thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current period – PRC current expense | 4,121 | 691 | | Over-provision in prior years | (896) | – | | Deferred | 992 | 133 | | **Total tax expense for the period** | **4,217** | **824** | [Interim Dividend](index=12&type=section&id=9.%20%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[29](index=29&type=chunk) [Earnings Per Share Attributable to Equity Holders of the Company](index=13&type=section&id=10.%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%B1%E6%87%89%E4%BD%B5%E4%B9%8B%E6%BA%A2%E5%88%A9) Basic earnings per share are calculated based on profit attributable to equity holders of the Company and the weighted average number of ordinary shares outstanding, amounting to **6.70 US cents** for H1 2025, with no potential dilutive ordinary shares - Basic earnings per share are calculated based on the profit for the period attributable to equity holders of the Company and the weighted average number of ordinary shares and convertible preference shares in issue during the period[30](index=30&type=chunk) Basic Earnings Per Share Calculation Data | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the period attributable to equity holders of the Company used in the calculation of basic earnings per share (USD thousands) | 17,046 | 1,963 | | Weighted average number of ordinary shares and convertible preference shares in issue during the period used in the calculation of basic earnings per share | 253,329,087 | 253,329,087 | - There were no potential dilutive ordinary shares for the six months ended June 30, 2025 and 2024, thus diluted earnings per share were equal to basic earnings per share[32](index=32&type=chunk) [Trade and Bills Receivables](index=14&type=section&id=11.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE%E5%8F%8A%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills receivables amounted to **USD 138,134 thousand**, an increase from the end of 2024, with the largest portion aged 60 days or less; the Group maintains strict control over credit risk - The Group maintains strict control over outstanding balances, with management regularly reviewing overdue balances and potentially charging overdue interest at rates determined by the Group with reference to market practice[34](index=34&type=chunk) - In the opinion of the Directors, the Group does not have significant concentrations of credit risk[34](index=34&type=chunk) Aging Analysis of Trade and Bills Receivables (USD thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables: | | | | 60 days or less | 89,832 | 79,002 | | 61 to 180 days | 40,828 | 30,755 | | More than 180 days | 4,948 | 5,064 | | **Subtotal** | **135,608** | **114,821** | | Bills receivables: | | | | 60 days or less | 1,573 | 353 | | 61 to 180 days | 953 | 655 | | **Subtotal** | **2,526** | **1,008** | | **Total** | **138,134** | **115,829** | [Trade Payables](index=14&type=section&id=12.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE) As of June 30, 2025, total trade payables amounted to **USD 78,238 thousand**, an increase from the end of 2024, with the largest portion aged 60 days or less Aging Analysis of Trade Payables (USD thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 60 days or less | 56,030 | 48,908 | | 61 to 180 days | 15,288 | 13,481 | | More than 180 days | 6,920 | 5,132 | | **Total** | **78,238** | **67,521** | [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an overview of the Group's financial performance, business operations, liquidity, and outlook for the period, highlighting key drivers and strategic initiatives [Group Performance](index=15&type=section&id=%E9%9B%86%E5%9C%98%E6%A5%AD%E7%B8%BE) In H1 2025, Group revenue significantly increased by approximately **2 times** to **USD 323.3 million**, primarily driven by the Biochemical business, with a substantial rise in profit attributable to equity holders of the Company, though gross margin declined due to increased sales of lower-margin products - The Group is engaged in Biochemical and Industrial businesses, with the Biochemical business being the source of all consolidated revenue, and the Industrial business contributing profit through joint ventures and associates[36](index=36&type=chunk) - Revenue for H1 2025 increased by approximately **2 times** to **USD 323.3 million** (H1 2024: USD 108 million), primarily reflecting the successful implementation and ongoing execution of key strategies to develop major customer sales[36](index=36&type=chunk) - Overall gross margin decreased from **16.7%** in H1 2024 to **12.9%** in H1 2025, mainly due to increased sales of lower-margin animal health pharmaceutical products[36](index=36&type=chunk) - Profit attributable to equity holders of the Company was **USD 17 million** (H1 2024: USD 2 million), with basic and diluted earnings per share at **6.7 US cents** (H1 2024: 0.8 US cents)[37](index=37&type=chunk) [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Biochemical business revenue grew by approximately **2 times**, with an increased proportion of animal health pharmaceutical products leading to a decline in overall gross margin; in the Industrial business, ECI Metro's machinery equipment sales increased, raising its share of profit, while Zhanjiang Deli's automotive parts sales and profit margin decreased, reducing its share of profit - Biochemical business revenue increased by approximately **2 times** to **USD 323.3 million**, with animal health pharmaceutical products' revenue contribution rising from **67%** to **84%**, while aureomycin products' contribution decreased to **16%**[38](index=38&type=chunk) - The Industrial business operates through ECI Metro and Zhanjiang Deli; ECI Metro's sales of excavators, generators, and parts grew by **37.7%**, and its share of profit from joint ventures increased to **USD 1.4 million**[40](index=40&type=chunk) - Zhanjiang Deli's motorcycle parts sales increased, but automotive parts sales and profit margin declined due to intense market competition, with its share of profit from associates decreasing from **USD 1.2 million** to **USD 0.8 million**[40](index=40&type=chunk) [Biochemical Business](index=15&type=section&id=%E7%94%9F%E5%8C%96%E6%A5%AD%E5%8B%99) Biochemical business revenue grew by approximately **2 times**, primarily from the manufacturing and sales of animal health pharmaceutical products and aureomycin products; the significant increase in animal health pharmaceutical products' share, despite their lower profit margins, led to a decline in overall gross margin - Revenue primarily derives from the manufacturing and/or sales of animal health pharmaceutical products and aureomycin products, with a strategic expansion of the product portfolio to include related veterinary pharmaceutical products[38](index=38&type=chunk) - Biochemical business revenue increased by approximately **2 times** to **USD 323.3 million** in H1 2025[38](index=38&type=chunk) - The revenue contribution from animal health pharmaceutical products increased from **67%** in H1 2024 to **84%** in H1 2025, while that from aureomycin products decreased from **33%** to **16%**[38](index=38&type=chunk) - The lower average profit margin of animal health pharmaceutical products led to a decrease in overall gross margin from **16.7%** in H1 2024 to **12.9%** in H1 2025[39](index=39&type=chunk) [Industrial Business](index=16&type=section&id=%E5%B7%A5%E6%A5%AD%E6%A5%AD%E5%8B%99) The Industrial business operates through ECI Metro and Zhanjiang Deli; ECI Metro's machinery equipment sales grew by **37.7%**, with its share of profit increasing to **USD 1.4 million**, though overall profit margins were affected by domestic brand competition; Zhanjiang Deli saw increased motorcycle parts sales, but automotive parts sales and profit margins declined, reducing its share of profit to **USD 0.8 million** - ECI Metro primarily engages in the sales, leasing, and maintenance services of Caterpillar machinery and equipment in Western China, with sales of excavators, generators, and parts increasing by **37.7%** in H1 2025 compared to H1 2024[40](index=40&type=chunk) - ECI Metro's share of profit from joint ventures increased from **USD 0.1 million** in H1 2024 to **USD 1.4 million** in H1 2025[40](index=40&type=chunk) - Zhanjiang Deli primarily manufactures and sells automotive parts; motorcycle parts sales increased, but automotive parts sales and profit margins declined due to intense market competition[40](index=40&type=chunk) - Zhanjiang Deli's share of profit from associates decreased from **USD 1.2 million** in H1 2024 to **USD 0.8 million** in H1 2025[40](index=40&type=chunk) [Outlook](index=16&type=section&id=%E5%B1%95%E6%9C%9B) With China's economy expected to continue its steady recovery, the Group maintains a cautiously optimistic outlook for the remainder of 2025 - China's economy is expected to continue its steady recovery, and the Group maintains a cautiously optimistic outlook for its performance for the remainder of 2025[41](index=41&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=%E8%B3%87%E9%87%91%E6%B5%81%E5%8B%95%E6%80%A7%E5%8F%8A%E8%B2%A1%E6%94%BF%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's total assets grew by **6.2%** to **USD 448.5 million**; the net debt-to-equity ratio decreased to **0.08**, indicating reduced financial leverage, and all borrowings are denominated in RMB - As of June 30, 2025, the Group's total assets were **USD 448.5 million**, an increase of **6.2%** from **USD 422.2 million** as of December 31, 2024[42](index=42&type=chunk) - The net debt-to-equity ratio (defined as bank borrowings less cash and deposits divided by total equity) was **0.08**, compared to **0.14** as of December 31, 2024, indicating reduced financial leverage[42](index=42&type=chunk) - All of the Group's borrowings as of June 30, 2025, and December 31, 2024, were denominated in RMB[43](index=43&type=chunk) - The Group monitors foreign exchange fluctuations and considers appropriate hedging activities when necessary[43](index=43&type=chunk) [Capital Structure](index=17&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) The Group meets its liquidity requirements through working capital and borrowings; as of June 30, 2025, cash and cash equivalents increased by **USD 3.1 million** to **USD 35.5 million** - The Group meets its liquidity requirements through working capital and borrowings[44](index=44&type=chunk) - As of June 30, 2025, the Group held cash and cash equivalents of **USD 35.5 million** (December 31, 2024: USD 32.4 million), an increase of **USD 3.1 million**[44](index=44&type=chunk) [Pledge of Group Assets](index=17&type=section&id=%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group's total borrowings were **USD 59.1 million**, of which **USD 16.6 million** (**28.2%** of total borrowings) were secured by assets, primarily property, plant and equipment and prepaid land lease payments - As of June 30, 2025, the Group's total borrowings were **USD 59.1 million** (December 31, 2024: USD 69.2 million)[45](index=45&type=chunk) - Of these, **USD 16.6 million** (December 31, 2024: USD 18.8 million) of borrowings were secured by assets, representing **28.2%** (December 31, 2024: 27.1%) of total borrowings[45](index=45&type=chunk) - Certain of the Group's property, plant and equipment and prepaid land lease payments with a combined net book value of **USD 23.6 million** (December 31, 2024: USD 24.0 million) have been pledged as security[45](index=45&type=chunk) [Contingent Liabilities](index=17&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025[46](index=46&type=chunk) [Employees and Remuneration Policy](index=17&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E9%85%AC%E9%87%91%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group employed approximately **900** staff in Mainland China and Hong Kong, with remuneration policies based on performance, experience, and market levels, offering benefits such as medical insurance and training - As of June 30, 2025, the Group employed approximately **900** staff in Mainland China and Hong Kong[47](index=47&type=chunk) - The Group determines staff remuneration based on employee performance, experience, and prevailing market levels, with discretionary bonuses awarded[47](index=47&type=chunk) - Other employee benefits include, for example, medical insurance and training[47](index=47&type=chunk) [Interim Dividend](index=17&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[48](index=48&type=chunk) [Other Information](index=18&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers corporate governance, directors' securities transactions, review of interim results, and any purchase, sale, or redemption of the company's listed securities [Corporate Governance Code](index=18&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Company is committed to maintaining high corporate governance standards and complies with the Corporate Governance Code in Appendix C1 of the Listing Rules, with only a minor deviation due to the Chairman's absence from the Annual General Meeting - The Company is committed to maintaining high corporate governance standards, with principles aimed at upholding high levels of ethics, transparency, accountability, and integrity across all aspects of its business[49](index=49&type=chunk) - The Board believes that for the six months ended June 30, 2025, the Company has applied the principles and complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[49](index=49&type=chunk) - However, the Company's Chairman was unable to attend the Annual General Meeting held on June 10, 2025, due to other business engagements, resulting in a deviation from code provision F.2.2[49](index=49&type=chunk) [Directors' Securities Transactions](index=18&type=section&id=%E8%91%A3%E4%BA%8B%E7%9A%84%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The Company has adopted a code of conduct for securities transactions, and all Directors confirmed compliance with the required standards of this code during the reporting period - The Company has adopted a code of conduct for securities transactions, which is based on the required standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules[50](index=50&type=chunk) - All Directors have responded to specific inquiries from the Company and confirmed their compliance with the required standards set out in the code of conduct for securities transactions for the six months ended June 30, 2025[50](index=50&type=chunk) [Review of Interim Results](index=18&type=section&id=%E5%AF%A9%E9%96%B1%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The interim results for the six months ended June 30, 2025, are unaudited but have been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, resulting in an unmodified review report, and also reviewed by the Audit Committee - The interim results for the six months ended June 30, 2025, are unaudited but have been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[51](index=51&type=chunk) - KPMG's unmodified review report is included in the interim report to be submitted to the Company's shareholders[51](index=51&type=chunk) - The Company's Audit Committee has also reviewed the interim results for the six months ended June 30, 2025[52](index=52&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=19&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025[53](index=53&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示概不會就本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何 責任。 Yum China Holdings, Inc. 百勝中國控股有限公司 （於美利堅合眾國特拉華州註冊成立的有限公司） （股份代號：9987） 截 至 2025 年 6 月 3 0 日止六個月之中期業績公告 百勝中國控股有限公司（「本公司」或「百勝」）（紐交所代號：YUMC及港交所代號：9987）謹此發佈本公司 截至2025年6月30日止六個月（「報告期」）的未經審核簡明合併業績，連同2024年同期可對比數字，該等 資料乃根據美國公認會計準則編製，並由本公司董事會（「董事會」）下屬審計委員會審閱。 承董事會命 百勝中國控股有限公司 屈翠容 董事及首席執行官 香港，2025年8月11日 於本公告日期，本公司董事會包括董事會主席及獨立董事胡祖六博士、執行董事屈翠容女士、非執行董 事Robert B. AIKEN先 生、 以 及 獨 立 董 事Mikel A. DURHAM女 士、Edouard ETTEDGUI ...

[Condensed Consolidated Interim Statement of Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) This section presents the Group's interim comprehensive income statement, detailing revenue, expenses, and net loss for the period [Consolidated Profit and Loss Analysis](index=1&type=section&id=Consolidated%20Profit%20and%20Loss%20Analysis) The Group recorded a net loss of HK$2,215 thousand for the interim period 2025, a significant decline from a net profit of HK$6,260 thousand in 2024, primarily due to an 18.77% decrease in total revenue and a substantial increase in other operating expenses Consolidated Profit and Loss Summary (HK$ thousand) | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Sales of healthcare products | 41,559 | 50,687 | -18.0% | | Other income | 3,625 | 4,814 | -24.7% | | Total revenue | 45,184 | 55,501 | -18.77% | | Cost of sales for healthcare business | (23,852) | (31,086) | -23.27% | | Total expenses | (46,750) | (48,065) | -2.74% | | (Loss)/Profit before tax | (1,566) | 7,436 | -121.06% | | Income tax expense | (649) | (1,176) | -44.81% | | (Loss)/Profit for the period | (2,215) | 6,260 | -135.38% | | Currency exchange differences | 6,154 | (519) | N/A | | Total comprehensive income for the period | 3,939 | 5,741 | -31.39% | | Basic and diluted (loss)/profit per share (HK cents) | (0.11) | 0.31 | -135.48% | [Condensed Consolidated Interim Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) This section outlines the Group's financial position, including assets, liabilities, and equity as of June 30, 2025 [Consolidated Financial Position Analysis](index=3&type=section&id=Consolidated%20Financial%20Position%20Analysis) As of June 30, 2025, the Group's total assets decreased by 4.7% to HK$266,240 thousand, with total equity increasing by 1.61% to HK$248,246 thousand, while total current liabilities significantly decreased by 48.7% Consolidated Financial Position Summary (HK$ thousand) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property, plant and equipment | 69 | 77 | -10.39% | | Inventories | 17,239 | 34,546 | -50.0% | | Trade receivables | 28,838 | 36,720 | -21.47% | | Cash and bank balances and client trust bank balances | 218,597 | 206,336 | 5.94% | | Total current assets | 266,171 | 279,305 | -4.69% | | Total assets | 266,240 | 279,382 | -4.70% | | Total equity | 248,246 | 244,307 | 1.61% | | Trade and other payables | 16,907 | 30,861 | -45.20% | | Total current liabilities | 17,994 | 35,075 | -48.70% | | Total liabilities | 17,994 | 35,075 | -48.70% | [Notes to the Interim Financial Information](index=4&type=section&id=Notes%20to%20the%20Interim%20Financial%20Information) This section provides detailed notes and explanations supporting the condensed consolidated interim financial statements [1. Basis of Preparation](index=4&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" and consistent with prior year accounting policies - The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[7](index=7&type=chunk) - The preparation of interim financial information requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses; actual results may differ from these estimates[7](index=7&type=chunk) [2. Segment Reporting](index=4&type=section&id=2.%20Segment%20Reporting) The Group's operations are divided into healthcare business (selling healthcare products) and unallocated segments (providing non-healthcare services and investment holding), with healthcare business revenue and segment profit decreasing in the interim period 2025 - The Group's operating segments include the healthcare business segment (selling healthcare products) and the unallocated segment (providing services other than healthcare business and investment holding)[8](index=8&type=chunk) - The Group commenced its healthcare business in 2022, establishing online stores on internationally renowned e-commerce platforms to sell healthcare products sourced from suppliers[8](index=8&type=chunk) Segment Performance (HK$ thousand) | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Healthcare Business Segment** | | | | Segment revenue from external customers | 41,559 | 50,687 | | Segment profit/(loss) | 5,656 | 8,401 | | **Unallocated Segment** | | | | Other income | 3,625 | 4,814 | | Segment profit/(loss) | (7,222) | (965) | | **Total** | | | | Total revenue and other income | 45,184 | 55,501 | | Profit/(Loss) for the period | (2,215) | 6,260 | [Major Customers](index=6&type=section&id=Major%20Customers) In the interim period 2025, Customer A was the largest customer, contributing HK$9,161 thousand in revenue, indicating a high dependency on a single customer, with the largest debtor accounting for 75% of total trade receivables Revenue from Major Customers (HK$ thousand) | Customer | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Customer A | 9,161 | – | | Customer B | 2,760 | 10,841 | | Customer C | 2,659 | 8,699 | | Customer D | 2,550 | 6,092 | - As of June 30, 2025, trade receivables from the largest debtor accounted for **75%** of total trade receivables (December 31, 2024: 85%)[25](index=25&type=chunk) [3. Other Income](index=6&type=section&id=3.%20Other%20Income) The Group's other income, primarily interest income, decreased by 24.7% to HK$3,625 thousand in the interim period 2025, mainly due to interest rates returning to normal levels Other Income Details (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest income | 3,625 | 4,814 | - The decrease in other income was primarily due to interest income returning to normal levels in the interim period 2025 as interest rates declined[43](index=43&type=chunk) [4. Other Operating Expenses](index=7&type=section&id=4.%20Other%20Operating%20Expenses) Other operating expenses significantly increased by 47.47% to HK$20,424 thousand in the interim period 2025, mainly driven by higher marketing, advertising, and promotion expenses, and a substantial increase in net exchange losses Other Operating Expenses Details (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Auditor's remuneration – audit services | 684 | 679 | 0.74% | | Marketing, advertising and promotion expenses | 6,806 | 5,490 | 23.97% | | Professional and consulting fees | 3,145 | 3,895 | -19.30% | | Import duties on inbound goods | 1,889 | 1,659 | 13.86% | | Postage and courier fees | 1,352 | 1,064 | 27.07% | | Information services expenses | 672 | 269 | 149.81% | | Net exchange losses | 3,802 | 19 | 19910.53% | | Total other operating expenses | 20,424 | 13,850 | 47.47% | - The increase in other operating expenses was primarily due to an increase of **HK$1,300 thousand** in marketing and promotion expenses compared to the interim period 2024, aimed at enhancing the Group's long-term brand awareness and customer engagement[48](index=48&type=chunk) [5. Income Tax Expense](index=7&type=section&id=5.%20Income%20Tax%20Expense) Income tax expense for the interim period 2025 was HK$649 thousand, a decrease from HK$1,176 thousand in the same period of 2024, with Hong Kong profits tax at 16.5% and New Zealand and Australia at 28% and 30% respectively Income Tax Expense Details (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current tax: expense for the period | 649 | 1,176 | | Income tax expense | 649 | 1,176 | - Hong Kong profits tax is provided at a rate of **16.5%** on the estimated assessable profits for the period; overseas profits tax is calculated at prevailing rates in the countries where the Group operates, with New Zealand and Australia income tax expenses calculated at **28%** and **30%** respectively[15](index=15&type=chunk) [6. Dividends](index=7&type=section&id=6.%20Dividends) The Board resolved not to declare any dividends for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare any dividends for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[17](index=17&type=chunk) [7. Earnings/(Loss) Per Share](index=8&type=section&id=7.%20Earnings%2F%28Loss%29%20Per%20Share) The loss attributable to equity holders of the Company was HK$2,215 thousand for the interim period 2025, resulting in a basic and diluted loss per share of 0.11 HK cents, compared to a profit of HK$6,260 thousand and earnings per share of 0.31 HK cents in the prior year Earnings/(Loss) Per Share Details | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | (Loss)/Profit attributable to equity holders of the Company (HK$ thousand) | (2,215) | 6,260 | | Weighted average number of ordinary shares outstanding (number of shares) | 2,033,290,000 | 2,033,290,000 | | Basic and diluted (loss)/profit per share (HK cents) | (0.11) | 0.31 | - Basic and diluted earnings/(loss) per share were the same for the six months ended June 30, 2025 and 2024[19](index=19&type=chunk) [8. Inventories](index=8&type=section&id=8.%20Inventories) Finished goods inventories decreased significantly by 50% to HK$17,239 thousand as of June 30, 2025, with the cost of goods recognized as cost of sales being HK$23,852 thousand for the period Inventories (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finished goods – merchandise | 17,239 | 34,546 | -50.0% | - For the six months ended June 30, 2025, the cost of goods recognized as cost of sales was approximately **HK$23,852 thousand** (six months ended June 30, 2024: HK$31,086 thousand)[19](index=19&type=chunk) [9. Trade Receivables](index=8&type=section&id=9.%20Trade%20Receivables) Net trade receivables decreased by 21.47% to HK$28,838 thousand as of June 30, 2025, comprising amounts due from fellow subsidiaries and third parties, with the Group strictly monitoring receivables and applying HKFRS 9 for expected credit losses Trade Receivables Summary (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables – fellow subsidiaries | 21,688 | – | N/A | | Trade receivables – third parties | 7,775 | 37,345 | -79.19% | | Total trade receivables | 29,463 | 37,345 | -21.09% | | Less: Impairment allowance | (625) | (625) | 0.0% | | Net trade receivables | 28,838 | 36,720 | -21.47% | - The Group is committed to strictly monitoring its outstanding receivables and has established a credit control team to minimize credit risk[19](index=19&type=chunk) - The Group applies the simplified approach under HKFRS 9 to measure expected credit losses, which requires the use of a lifetime expected loss allowance for all trade receivables[20](index=20&type=chunk) [Aging Analysis](index=9&type=section&id=Aging%20Analysis) As of June 30, 2025, current trade receivables significantly increased to 59.7% from 25.5% in December 2024, indicating improved collection efficiency, while receivables over six but within twelve months decreased from 20.6% to 8.7% Trade Receivables Aging Analysis (HK$ thousand) | Aging | June 30, 2025 (HK$ thousand) | June 30, 2025 (%) | December 31, 2024 (HK$ thousand) | December 31, 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Current | 17,577 | 59.7 | 9,514 | 25.5 | | Within three months | 6,696 | 22.7 | 15,480 | 41.5 | | Over three months but within six months | 2,618 | 8.9 | 4,619 | 12.4 | | Over six months but within twelve months | 2,572 | 8.7 | 7,732 | 20.6 | | Total | 29,463 | 100.0 | 37,345 | 100.0 | [Movement in Impairment Loss Allowance](index=9&type=section&id=Movement%20in%20Impairment%20Loss%20Allowance) The impairment loss allowance for trade receivables remained at HK$625 thousand as of June 30, 2025, consistent with December 31, 2024 Impairment Loss Allowance (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Beginning/End of period | 625 | – | | Impairment loss | – | 625 | | End of period/year | 625 | 625 | [Trade Receivables from Related Parties](index=9&type=section&id=Trade%20Receivables%20from%20Related%20Parties) As of June 30, 2025, trade receivables from related parties amounted to HK$21,688 thousand, with a loss allowance of HK$531 thousand, representing an expected credit loss rate of 2.45%, with no such receivables in the prior year Related Party Trade Receivables (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables from related parties | 21,688 | Zero | | Loss allowance | 531 | Zero | | Expected credit loss rate | 2.45% | Not applicable | [Trade Receivables from Third Parties](index=10&type=section&id=Trade%20Receivables%20from%20Third%20Parties) As of June 30, 2025, trade receivables from third parties significantly decreased to HK$7,775 thousand from HK$37,345 thousand in December 2024, with a loss allowance of HK$94 thousand and an expected loss rate of 1.21% Third Party Trade Receivables (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables from third parties | 7,775 | 37,345 | | Loss allowance | 94 | 625 | | Expected credit loss rate | 1.21% | 1.67% | [Concentration of Risk](index=10&type=section&id=Concentration%20of%20Risk) As of June 30, 2025, trade receivables from the largest debtor accounted for 75% of the total, a decrease from 85% in December 2024, yet still indicating high customer concentration, which the Group manages through counterparty limits and approval processes - As of June 30, 2025, trade receivables from the largest debtor accounted for **75%** of total trade receivables (December 31, 2024: 85%)[25](index=25&type=chunk) - The Group adopts various monitoring and measures, including setting counterparty limits, approval, and evaluation controls, to avoid excessive concentration of risk in its portfolio[25](index=25&type=chunk) [Currency Denomination](index=10&type=section&id=Currency%20Denomination) Trade receivables are primarily denominated in HKD and RMB, with HK$15,010 thousand in HKD and HK$12,425 thousand in RMB as of June 30, 2025 Trade Receivables by Currency (HK$ thousand) | Currency | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | HKD | 15,010 | 28,607 | | RMB | 12,425 | 6,667 | | USD | 1,403 | 1,446 | | Total | 28,838 | 36,720 | [10. Other Receivables, Prepayments and Deposits](index=11&type=section&id=10.%20Other%20Receivables%2C%20Prepayments%20and%20Deposits) Total other receivables, prepayments, and deposits decreased to HK$1,239 thousand as of June 30, 2025, from HK$1,703 thousand in December 2024, mainly due to a reduction in interest receivables and prepayments Other Receivables, Prepayments and Deposits (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest receivables | 734 | 947 | -22.5% | | Prepayments | 298 | 551 | -45.9% | | Other receivables | 161 | 141 | 14.2% | | Total | 1,239 | 1,703 | -27.2% | [11. Cash and Bank Balances and Client Trust Bank Balances](index=11&type=section&id=11.%20Cash%20and%20Bank%20Balances%20and%20Client%20Trust%20Bank%20Balances) Total cash and bank balances and client trust bank balances increased by 5.94% to HK$218,597 thousand as of June 30, 2025, primarily driven by a significant growth in cash and bank balances, with client trust funds unavailable for the Group's own debts Cash and Bank Balances and Client Trust Bank Balances (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 30,884 | 9,353 | 230.2% | | Bank time deposits | 186,549 | 195,818 | -4.73% | | Client trust bank balances | 1,164 | 1,165 | -0.09% | | Total | 218,597 | 206,336 | 5.94% | - The Group holds trust and segregated accounts with authorized financial institutions to safeguard client deposits from general business transactions and cannot use client funds to settle its own debts[27](index=27&type=chunk) - As of June 30, 2025 and December 31, 2024, no bank balances were pledged to banks for bank facilities, and no overdrafts were utilized[27](index=27&type=chunk) [12. Trade and Other Payables](index=12&type=section&id=12.%20Trade%20and%20Other%20Payables) Total trade and other payables significantly decreased by 45.2% to HK$16,907 thousand as of June 30, 2025, primarily due to a reduction in trade payables, with supplier credit terms typically ranging from immediate to 90 days Trade and Other Payables (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 15,633 | 28,606 | -45.35% | | Accrued audit fees | 705 | 1,400 | -49.64% | | Other accrued expenses | 544 | 796 | -31.66% | | Total | 16,907 | 30,861 | -45.20% | - Credit terms granted by suppliers for goods payable are typically from immediate to **90 days**[29](index=29&type=chunk) [13. Share Capital and Reserves](index=12&type=section&id=13.%20Share%20Capital%20and%20Reserves) The Company's issued and fully paid share capital remained at HK$20,333 thousand as of June 30, 2025, consistent with December 31, 2024, while reserves slightly increased to HK$227,913 thousand Share Capital (HK$ thousand) | Item | June 30, 2025 (Number of Shares) | June 30, 2025 (HK$ thousand) | December 31, 2024 (Number of Shares) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Authorized share capital (par value HK$0.01 per share) | 4,000,000,000 | 40,000 | 4,000,000,000 | 40,000 | | Issued and fully paid share capital | 2,033,290,000 | 20,333 | 2,033,290,000 | 20,333 | - Reserves include capital reserve, which represents the difference between the carrying amount of net assets of subsidiaries like CA Premium New Zealand Limited and the par value of shares issued in exchange for these subsidiaries as part of a reorganization completed in 2012[31](index=31&type=chunk) [14. Related Party Transactions and Balances](index=13&type=section&id=14.%20Related%20Party%20Transactions%20and%20Balances) The Group engaged in significant related party transactions during the period, including payments for software maintenance, management services, and sales, inventory purchases, and commission payments with fellow subsidiaries, all conducted on normal commercial terms Related Party Transactions (HK$ thousand) | Transaction Type | Related Party | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | | Payment for software maintenance, upgrade and support services | Related party | 14 | 16 | | Payment for management services | Then direct holding company | 115 | 173 | | Payment for management services | Fellow subsidiary | 70 | – | | Sales of goods | Fellow subsidiary | 817 | – | | Purchase of inventories | Fellow subsidiary | 493 | – | | Payment of commission | Fellow subsidiary | 86 | – | - Tehealth (Hong Kong) Limited and Tong Ren Tang International conducted buying and selling of healthcare products on normal commercial terms and after fair negotiation[33](index=33&type=chunk) - In accordance with Rule 14A.76 of the Listing Rules, the above continuing connected transactions are fully exempt from shareholder approval, independent non-executive directors' and auditor's annual review, and disclosure requirements[34](index=34&type=chunk) [15. Litigation and Contingent Liabilities](index=14&type=section&id=15.%20Litigation%20and%20Contingent%20Liabilities) Two legal proceedings involving the Group and Sheng Hui Information Technology Co., Ltd. are ongoing, with trials scheduled for January 2026, and the Company's legal counsel is cautiously optimistic about the outcome, thus no provision is deemed necessary by the directors - The Company received a writ of summons with endorsement of claim from Sheng Hui Information Technology Co., Ltd. against the Company, claiming for improper termination of the IT service agreement and other matters[35](index=35&type=chunk) - The aforementioned litigation will be heard together with the High Court legal proceedings initiated by the Company against Sheng Hui in 2019 for breach of the IT service agreement, with the trial scheduled for January 2026[35](index=35&type=chunk) - Despite the uncertainty of the litigation outcome and potential financial impact, the Company's directors believe no provision is required as the Company's legal counsel is cautiously optimistic about the outcome of both cases[35](index=35&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's financial performance, position, and operational developments during the interim period [Financial Highlights](index=15&type=section&id=Financial%20Highlights) In the interim period 2025, the Group's total revenue decreased by 18% to HK$45,184 thousand, turning a pre-tax profit into a loss of HK$1,566 thousand, with a net loss attributable to shareholders of HK$2,215 thousand, while net cash from operating activities significantly increased by 344% Financial Performance Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 45,184 | 55,501 | -18% | | (Loss)/Profit before tax | (1,566) | 7,436 | -121% | | (Loss)/Profit for the period attributable to equity holders of the Company | (2,215) | 6,260 | -135% | | Net cash generated from/(used in) operating activities | 7,030 | (2,879) | +344% | | Net profit margin | (5.3%) | 12.3% | N/A | | Inventory turnover (times) | 0.9 | 3.0 | N/A | | Basic and diluted (loss)/profit per share (HK cents/share) | (0.11) | 0.31 | -135% | | Return on equity | (0.9%) | 2.6% | N/A | Financial Position Summary (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 266,240 | 279,382 | -5% | | Total equity | 248,246 | 244,307 | 2% | | Current ratio | 14.8 | 8.0 | N/A | | Total equity attributable to equity holders of the Company | 248,246 | 244,307 | 2% | | Total number of issued shares (in thousands) | 2,033,290 | 2,033,290 | – | | Net asset value per share attributable to equity holders of the Company (HK$/share) | 0.1221 | 0.1202 | 2% | | Debt-to-equity ratio | Zero | Zero | Not applicable | [Changes in Equity](index=16&type=section&id=Changes%20in%20Equity) As of June 30, 2025, total equity increased from the beginning of the year to HK$248,246 thousand, primarily due to other comprehensive income of HK$6,154 thousand, which partially offset the period's loss Changes in Equity (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Balance at January 1 | 244,307 | 239,865 | | (Loss)/Profit for the period | (2,215) | 6,260 | | Other comprehensive income/(expense) | 6,154 | (519) | | Total equity balance at June 30 | 248,246 | 245,606 | [Key Financial Ratios and Trends](index=16&type=section&id=Key%20Financial%20Ratios%20and%20Trends) The Group experienced a temporary decline in profitability but maintained a strong current ratio, reflecting robust liquidity and prudent working capital management, with the Board remaining optimistic about future prospects and committed to enhancing operational efficiency - The Group's profitability experienced a temporary decline, primarily due to strategic adjustments in product mix and pricing aimed at positioning the business for long-term growth[38](index=38&type=chunk) - Despite short-term performance being affected by transitional factors, the Group's current ratio remained strong, reflecting a robust liquidity position and prudent working capital management[38](index=38&type=chunk) [Review of Significant Changes](index=16&type=section&id=Review%20of%20Significant%20Changes) In the interim period 2025, the Group's revenue decreased due to a temporary slowdown in the healthcare business, operating expenses moderately increased reflecting strategic investments, and profit attributable to shareholders turned into a loss mainly due to one-off professional fees related to a change in controlling shareholder, while the healthcare segment remains a growth driver expanding B2C channels and ODM portfolio - The Group recorded revenue of **HK$41.6 million** in the interim period 2025, a decrease from **HK$50.7 million** in the interim period 2024, primarily due to a temporary slowdown in the healthcare business segment[39](index=39&type=chunk) - Operating expenses moderately increased, reflecting effective strategic investments in professional services and marketing activities, which are expected to support future growth and strengthen the Group's brand influence[39](index=39&type=chunk) - The Group recorded a temporary net loss of **HK$2.2 million**, primarily due to one-off professional fees of **HK$2.5 million** related to the change in the Company's controlling shareholder and the subsequent general offer triggered in the interim period 2025[39](index=39&type=chunk) - The healthcare segment continues to be the Group's growth driver; despite a temporary decline, the Group is expanding its B2C channels and ODM portfolio, which is expected to drive sustainable revenue growth[39](index=39&type=chunk) - As of June 30, 2025, the Group maintained a robust financial position with cash and bank balances of **HK$217.4 million**, providing strong liquidity and flexibility to support future growth initiatives[40](index=40&type=chunk) [Comparison of Interim Period 2025 with Interim Period 2024](index=17&type=section&id=Comparison%20of%20Interim%20Period%202025%20with%20Interim%20Period%202024) This section provides a detailed comparison of key financial metrics for the interim periods of 2025 and 2024, highlighting decreases in total revenue, healthcare business revenue, other income, cost of sales, referral expenses, staff costs, and depreciation, alongside significant increases in other operating expenses and net loss - Total revenue, healthcare business revenue, other income, cost of sales, referral expenses and other fees, staff costs, and depreciation all decreased compared to the same period last year[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) - Other operating expenses and net loss significantly increased, leading to the Group's shift from profit to loss[48](index=48&type=chunk)[49](index=49&type=chunk) [Total Revenue](index=17&type=section&id=Total%20Revenue) In the interim period 2025, the Group's total revenue was approximately HK$45,200 thousand, a decrease of about 18.6% from approximately HK$55,500 thousand in the same period of 2024 Total Revenue (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 45,200 | 55,500 | -18.6% | [A. Healthcare Business Revenue](index=17&type=section&id=A.%20Healthcare%20Business%20Revenue) Healthcare business revenue for the interim period 2025 was approximately HK$41,600 thousand, a decrease of about 17.95% from HK$50,700 thousand in the same period of 2024 Healthcare Business Revenue (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Healthcare business revenue | 41,600 | 50,700 | -17.95% | [B. Other Income](index=17&type=section&id=B.%20Other%20Income) Other income decreased by approximately 24.7% from HK$4,800 thousand in the interim period 2024 to HK$3,600 thousand in the interim period 2025, primarily due to interest rates returning to normal levels Other Income (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other income | 3,600 | 4,800 | -24.7% | [Cost of Sales](index=17&type=section&id=Cost%20of%20Sales) Cost of sales for the interim period 2025 was HK$23,900 thousand, a decrease of approximately 23.2% from HK$31,100 thousand in the same period of 2024 Cost of Sales (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 23,900 | 31,100 | -23.2% | [Referral Expenses and Other Fees](index=17&type=section&id=Referral%20Expenses%20and%20Other%20Fees) Referral expenses and other fees decreased from HK$1,300 thousand in the interim period 2024 to HK$1,100 thousand in the interim period 2025, consistent with changes in healthcare business activities Referral Expenses and Other Fees (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Referral expenses and other fees | 1,100 | 1,300 | -15.4% | [Staff Costs](index=17&type=section&id=Staff%20Costs) Staff costs decreased from HK$1,600 thousand in the interim period 2024 to HK$1,400 thousand in the interim period 2025 Staff Costs (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Staff costs | 1,400 | 1,600 | -12.5% | [Depreciation – Property, Plant and Equipment](index=17&type=section&id=Depreciation%20%E2%80%93%20Property%2C%20Plant%20and%20Equipment) Depreciation of property, plant, and equipment decreased from approximately HK$200 thousand in the interim period 2024 to approximately HK$30 thousand in the interim period 2025, primarily because some assets were fully depreciated in 2025 Depreciation – Property, Plant and Equipment (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation – property, plant and equipment | 30 | 200 | -85.0% | [Other Operating Expenses](index=17&type=section&id=Other%20Operating%20Expenses) Other operating expenses increased by approximately 47.5% from HK$13,800 thousand in the interim period 2024 to HK$20,400 thousand in the interim period 2025, mainly due to increased marketing and promotion expenses Other Operating Expenses (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other operating expenses | 20,400 | 13,800 | 47.5% | [Net Loss](index=17&type=section&id=Net%20Loss) A net loss of HK$2,200 thousand was recorded in the interim period 2025, compared to a net profit of HK$6,300 thousand in the same period of 2024, primarily due to decreased revenue, increased other operating expenses, and one-off professional fees related to a change in controlling shareholder Net Loss (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net loss | (2,200) | 6,300 | -134.9% | - The net loss was primarily due to the aforementioned reasons, coupled with one-off expenses related to the change in the Company's controlling shareholder and the subsequent general offer, such as legal, advisory, and other transaction-related professional fees[49](index=49&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) In the interim period 2025, the Group's operations were primarily funded by equity, cash generated from business operations, and cash and bank deposits, with cash and bank balances (including time deposits maturing within three months) increasing to HK$217,400 thousand as of June 30, 2025 - The Group's operations are primarily funded by equity, cash generated from the Group's business operations, and cash and bank deposits[50](index=50&type=chunk) Cash and Bank Balances (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances (including bank time deposits with original maturity within three months) | 217,400 | 205,200 | 5.95% | [Foreign Exchange Risk](index=18&type=section&id=Foreign%20Exchange%20Risk) In the interim period 2025, the Group recorded an exchange loss of HK$3,800 thousand and a currency exchange gain of approximately HK$6,200 thousand, mainly due to the translation of foreign currency denominated monetary assets by Australian and New Zealand subsidiaries into their local reporting currencies, with the Group actively managing foreign exchange risk through regular review of currency positions and hedging strategies Foreign Exchange Impact (HK$ thousand) | Item | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Exchange loss | 3,800 | 20 | | Currency exchange gain/(loss) | 6,200 | (500) | - The currency exchange gain was primarily due to the translation of foreign currency denominated monetary assets by the Company's subsidiaries in Australia and New Zealand into their local reporting currencies at the half-year end[51](index=51&type=chunk) - The Group actively manages foreign exchange risk by regularly reviewing currency positions within a basket of currencies and employing hedging strategies based on current market conditions and the working capital needs of its subsidiaries[51](index=51&type=chunk) [Capital Structure](index=18&type=section&id=Capital%20Structure) In the interim period 2025, the Group's capital structure comprised equity attributable to owners of the Company, including issued share capital and reserves - In the interim period 2025, the Group's capital structure comprised equity attributable to owners of the Company (including issued share capital and reserves)[52](index=52&type=chunk) [Pledge of the Group's Assets](index=18&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) As of June 30, 2025, the Group had no pledged assets, consistent with December 31, 2024 - As of June 30, 2025, the Group had no pledged assets (December 31, 2024: nil)[53](index=53&type=chunk) [Contingent Liabilities](index=18&type=section&id=Contingent%20Liabilities) Details of the Group's contingent liabilities as of June 30, 2025, are provided in the notes to the interim financial information, primarily involving litigation with Sheng Hui Information Technology Co., Ltd - Details of the Group's contingent liabilities as of June 30, 2025, are set out in the notes to the interim financial information[54](index=54&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's remuneration policy aligns with market practices, determined by employee performance and experience, with a total of 13 employees as of June 30, 2025 - The Group's remuneration policy is in line with current market practices and determined based on individual employee performance and experience[55](index=55&type=chunk) - As of June 30, 2025, the Group employed a total of **13 staff** (including employees, consultants, and directors)[55](index=55&type=chunk) [Business Review and Outlook](index=18&type=section&id=Business%20Review%20and%20Outlook) In the interim period 2025, the Group faced a complex competitive environment with expected declines in revenue and profit, but focused on product innovation, brand development, and operational efficiency, making progress in expanding B2C distribution channels and optimizing its ODM product portfolio, while maintaining cautious optimism for the second half of 2025 with plans for new product launches, strengthened partnerships, and continued investment in digital marketing, supply chain optimization, and R&D - For the six months ended June 30, 2025, the Group faced a more complex and competitive operating environment compared to the same period in 2024, primarily due to shifting consumer preferences and intensified competition in the healthcare product market; despite year-on-year declines in revenue and profit, these fluctuations were within expectations[56](index=56&type=chunk) - The Group continued to focus on strategic priorities such as product innovation, brand development, and operational efficiency to lay a solid foundation for long-term growth, actively promoting and selling over **eighty well-known healthcare products** through various major e-commerce platforms, including Tmall, Douyin, and JD.com[56](index=56&type=chunk) - As of the date of this announcement, the Group is actively negotiating agency arrangements for **four new healthcare products** with relevant organizations; looking ahead to the second half of 2025, the Group remains cautiously optimistic about its prospects, planning to launch new healthcare products and related services, strengthen cooperation with existing brand partners, and expand sales channels[57](index=57&type=chunk) [Concentration of Credit Risk in Trade Receivables](index=19&type=section&id=Concentration%20of%20Credit%20Risk%20in%20Trade%20Receivables) As of June 30, 2025, trade receivables remained stable at HK$28,800 thousand, with the largest debtor accounting for 75% of the total, reflecting typical B2B relationships in the healthcare industry, and the Group maintains a robust credit control framework, with approximately 60% of trade receivables being current Trade Receivables (HK$ thousand) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 28,800 | 36,700 | -21.53% | - As of June 30, 2025, trade receivables from the largest debtor accounted for **75%** of total trade receivables (December 31, 2024: 85%)[58](index=58&type=chunk) - As of the reporting date, approximately **60%** of trade receivables were current, compared to 25.5% of trade receivables being current as of December 31, 2024[58](index=58&type=chunk) [Subsequent Settlement of Trade Receivables](index=19&type=section&id=Subsequent%20Settlement%20of%20Trade%20Receivables) As of June 30, 2025, total trade receivables amounted to HK$29,463 thousand, of which HK$10,606 thousand had been subsequently settled as of the date of this announcement Subsequent Settlement of Trade Receivables (HK$ thousand) | Aging | Total Balance as of June 30, 2025 (HK$ thousand) | Subsequently Settled as of this Announcement Date (HK$ thousand) | | :--- | :--- | :--- | | Current | 17,577 | 3,734 | | Within 3 months | 6,696 | 5,101 | | Over 3 months but within 6 months | 2,618 | 1,771 | | Over 6 months but within 12 months | 2,572 | – | | Total | 29,463 | 10,606 | [Expected Recovery of Long-Term Receivables and Justification for Loss Allowance](index=20&type=section&id=Expected%20Recovery%20of%20Long-Term%20Receivables%20and%20Justification%20for%20Loss%20Allowance) The Group is confident in the full recovery of trade receivables, deeming the HK$625 thousand loss allowance sufficient, based on high customer credit standing, ongoing business relationships with customers for long-term receivables, and a consistent business model and customer base - Based on high customer credit standing, ongoing business relationships with customers for trade receivables balances over six months from invoice date, and a consistent business model and customer base, the Group is confident that trade receivables are fully recoverable; therefore, the loss allowance of **HK$625 thousand** is considered sufficient[62](index=62&type=chunk) [(1) High Customer Credit Standing](index=20&type=section&id=%281%29%20High%20Customer%20Credit%20Standing) The Group's customer credit standing remains robust, primarily from reputable large and well-known customers, with past payment behavior indicating full recoverability of receivables - Our customer credit standing remains robust, with past payment behavior indicating full recoverability of receivables; as of June 30, 2025, the Group's trade receivables primarily originate from reputable large and well-known customers[60](index=60&type=chunk) [(2) Ongoing Business Relationships with Customers for Trade Receivables Over Six Months](index=20&type=section&id=%282%29%20Ongoing%20Business%20Relationships%20with%20Customers%20for%20Trade%20Receivables%20Over%20Six%20Months) As of June 30, 2025, trade receivables with invoice dates over six but within twelve months are from three customers who maintain ongoing contracts and good business relationships with the Group - As of June 30, 2025, trade receivables with invoice dates over six months but within twelve months totaled **HK$2.6 million**, originating from three customers who currently maintain ongoing contracts and good business relationships with the Group[61](index=61&type=chunk) [(3) Consistent Business Model and Customer Base](index=20&type=section&id=%283%29%20Consistent%20Business%20Model%20and%20Customer%20Base) The Group's current business model and customer base remain largely consistent, with no issues identified regarding the recoverability of trade receivables or the need for additional impairment provisions - Regarding trade receivables, the Group's current business model and customer base remain largely consistent, and this is expected to continue in the future[62](index=62&type=chunk) - The Group believes it has established standard business arrangements with these customers (especially B2B customers) and has not identified any issues related to the recoverability of trade receivables or the need for additional impairment provisions to date[62](index=62&type=chunk) [Actions Taken or to be Taken for Recovery of Long-Term Receivables (if any)](index=20&type=section&id=Actions%20Taken%20or%20to%20be%20Taken%20for%20Recovery%20of%20Long-Term%20Receivables%20%28if%20any%29) The Group has implemented several measures to recover long-term receivables, including increasing sales revenue from customers with shorter payment cycles, strict control of outstanding receivables by a dedicated credit control team, and regular review of customer backgrounds and business conditions - Increase sales revenue from customers with shorter payment cycles while gradually reducing sales to customers with relatively longer payment cycles to improve the overall recovery period of trade receivables[65](index=65&type=chunk) - Strict control of outstanding trade receivables by a dedicated credit control team, including direct follow-up by sales personnel for invoices over three months old and escalation of invoices over six months old to senior management[65](index=65&type=chunk) - Regularly review customer backgrounds, reputations, market positions, and business conditions using publicly available information to guide credit assessments[65](index=65&type=chunk) [Latest Regulatory Compliance](index=20&type=section&id=Latest%20Regulatory%20Compliance) Following its successful resumption of trading in July 2024, the Company continues to operate normally and confirms compliance with Rule 13.24 of the Listing Rules of The Stock Exchange of Hong Kong Limited - Following its successful resumption of trading in July 2024, the Company continues to operate its business normally and in an orderly manner[63](index=63&type=chunk) - The Board confirms that the Company remains in compliance with Rule 13.24 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[63](index=63&type=chunk) [Material Acquisitions or Disposals](index=20&type=section&id=Material%20Acquisitions%20or%20Disposals) The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the interim period 2025 - The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the interim period 2025[64](index=64&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) This section covers additional disclosures including significant investments, litigation, post-reporting period events, dividends, securities transactions, corporate governance, directors' interests, and financial statement review [Material Investments Held](index=21&type=section&id=Material%20Investments%20Held) The Group did not hold any material investments during the interim period 2025 - The Group did not hold any material investments during the interim period 2025[66](index=66&type=chunk) [Material Litigation and Arbitration](index=21&type=section&id=Material%20Litigation%20and%20Arbitration) Apart from the legal actions disclosed in this announcement for the interim period 2025, the Group had no other material litigation or arbitration and was unaware of any material contingent liabilities - Apart from the legal actions disclosed in this announcement for the interim period 2025, the Group had no other material litigation or arbitration and was unaware of any material contingent liabilities[67](index=67&type=chunk) [Events After the Reporting Period](index=21&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events affecting the Group occurred after the reporting period and up to the date of this announcement - No significant events affecting the Group occurred after the reporting period and up to the date of this announcement[68](index=68&type=chunk) [Interim Dividends](index=21&type=section&id=Interim%20Dividends) The Board resolved not to declare any dividends for the interim period 2025 (interim period 2024: nil) - The Board resolved not to declare any dividends for the interim period 2025 (interim period 2024: nil)[69](index=69&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the interim period 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the interim period 2025[70](index=70&type=chunk) [Compliance with Corporate Governance Code](index=21&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code throughout the interim period 2025, except for the deviation where Mr. Ji Guangfei held both Chairman and Chief Executive Officer roles, which the Board believes enhances business strategy execution and operational efficiency, with a balanced board structure providing adequate checks and balances - The Company complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the interim period 2025[71](index=71&type=chunk) - Since April 11, 2025, Mr. Ji Guangfei has held both the roles of Chairman and Chief Executive Officer, which constitutes a deviation from code provision C.2.1 of the Corporate Governance Code[71](index=71&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer facilitates the execution of the Group's business strategies and enhances operational efficiency; furthermore, under the supervision of a Board comprising three executive directors, three non-executive directors, and three independent non-executive directors, the Company believes the Board structure is appropriate, with a balanced distribution of power, providing sufficient checks and balances to safeguard the interests of the Company and its shareholders[71](index=71&type=chunk) [Directors' Securities Transactions](index=21&type=section&id=Directors%27%20Securities%20Transactions) The Board adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance with it throughout the interim period 2025 - The Board adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules as the code of conduct for directors' dealings in the Company's securities[72](index=72&type=chunk) - In response to specific inquiries from the Company, all directors confirmed that they had complied with the Model Code at all applicable times during the interim period 2025[72](index=72&type=chunk) [Directors' Interests in Transactions, Arrangements or Contracts](index=21&type=section&id=Directors%27%20Interests%20in%20Transactions%2C%20Arrangements%20or%20Contracts) Except for related party transactions disclosed in the notes to the interim financial information, the Group did not enter into any significant ongoing transactions, arrangements, or contracts during the interim period where directors or their associated entities had a material direct or indirect interest - All related party transactions entered into by the Group during the reporting period were conducted in the ordinary course of business on normal commercial terms and in compliance with applicable Listing Rules[73](index=73&type=chunk) - Except for those disclosed in the 'Related Party Transactions and Balances' section of the notes to the interim financial information, the Group did not enter into any ongoing transactions, arrangements, or contracts during the interim period 2025 or at any time during the relevant period that were significant to the Group's business and in which a director or an entity connected with a director had a material direct or indirect interest[73](index=73&type=chunk) [Changes in Directors' Information](index=22&type=section&id=Changes%20in%20Directors%27%20Information) Effective April 11, 2025, Mr. Yuan Feng was re-designated as a non-executive director and resigned as Deputy Chief Executive Officer, and Mr. Zhong Zhuoxun was re-designated as a non-executive director and notified his waiver of director's fees from July 1, 2025 - Effective April 11, 2025, Mr. Yuan Feng was re-designated as a non-executive director and resigned as Deputy Chief Executive Officer[74](index=74&type=chunk) - Mr. Zhong Zhuoxun was re-designated as a non-executive director, and on June 26, 2025, a notification was received confirming his waiver of director's fees of **HK$240,000 per annum**, effective from July 1, 2025[74](index=74&type=chunk) [Basis of Determining Directors' Remuneration](index=22&type=section&id=Basis%20of%20Determining%20Directors%27%20Remuneration) Directors' remuneration is determined by the Board based on recommendations from the Remuneration Committee, considering company performance, individual performance, industry benchmarks, and market conditions, and is reviewed periodically, with the basis remaining unchanged in the interim period 2025 - Directors' remuneration is determined by the Board based on the recommendations of the Company's Remuneration Committee, with reference to the Company's performance and profitability, individual directors' performance, industry remuneration benchmarks, and current market conditions[75](index=75&type=chunk) - The basis for determining directors' remuneration (including bonuses) remained unchanged during the interim period 2025[75](index=75&type=chunk) [Review of Financial Statements](index=22&type=section&id=Review%20of%20Financial%20Statements) The Audit Committee reviewed and had no objections to the accounting treatments adopted for the Company's unaudited condensed consolidated interim results for the interim period 2025, providing recommendations and opinions - The Audit Committee reviewed and had no objections to the accounting treatments adopted by the Company for the preparation of the Group's unaudited condensed consolidated interim results for the interim period 2025, and provided recommendations and opinions accordingly[76](index=76&type=chunk) [Publication of Interim Report](index=22&type=section&id=Publication%20of%20Interim%20Report) The Company's 2025 interim report will be published on its website (www.tehealth.com) and the HKEX website (www.hkexnews.hk) in due course, with printed copies dispatched to shareholders - The Company's 2025 interim report (containing all financial and other relevant information of the Company as required by the Listing Rules) will be published on the Company's website (www.tehealth.com) and the HKEX website (www.hkexnews.hk) in due course, and printed copies will be dispatched to shareholders[77](index=77&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 YUE YUEN INDUSTRIAL (HOLDINGS) LIMITED 裕元工業（ 集 團 ）有限公司 * （於百慕達註冊成立之有限公司） （股份代號：00551） 截至二零二五年六月三十日止六個月 未經審核中期業績 | 本集團財務摘要 | | | | | --- | --- | --- | --- | | | 截至六月三十日 | | | | | 止六個月 | | 增加╱（減少） | | | 二零二五年 | 二零二四年 | 百分比 | | （千美元） 營業收入 | 4,060,148 | 4,015,407 | 1.1% | | 本公司擁有人應佔經常 | | | | | （千美元） 性溢利 | 162,822 | 178,887 | (9.0)% | | 本公司擁有人應佔非經常 | | | | | 性溢利 （千美元） | 8,368 | 5,514 | 51.8% | | 本公司擁有人應佔 | | ...

[Report Overview](index=1&type=section&id=Report%20Overview) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported significant declines in revenue, gross profit, operating profit, and profit attributable to owners for the six months ended June 30, 2025, alongside reduced margins and dividends Financial Performance for the Six Months Ended June 30 | Financial Performance (RMB thousands) | 2025 | 2024 | Change | | :---------------------------------- | :------- | :------- | :----- | | Revenue | 9,159,425 | 9,983,269 | -8.3% | | Gross Profit | 3,069,210 | 3,415,700 | -10.1% | | Operating Profit | 281,596 | 482,555 | -41.6% | | Profit Attributable to Owners of the Company | 187,615 | 335,722 | -44.1% | | Gross Profit Margin (%) | 33.5% | 34.2% | -0.7 percentage points | | Operating Profit Margin (%) | 3.1% | 4.8% | -1.7 percentage points | | Basic Earnings Per Share (RMB cents) | 3.62 | 6.48 | -44.1% | | Interim Dividend (HKD) | 0.0115 | 0.02 | -42.5% | | Special Dividend (HKD) | 0.0115 | 0.02 | -42.5% | Financial Position as of June 30 | Financial Position (RMB thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------- | :--------------- | :----- | | Inventories | 4,865,388 | 4,946,314 | -1.6% | | Trade and Other Receivables | 2,009,997 | 2,124,515 | -5.4% | | Cash and Cash Equivalents | 1,232,169 | 1,419,052 | -13.2% | | Bank Borrowings | 196,778 | 39,273 | 401.1% | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, revenue declined 8.3% to RMB 9,159,425 thousand, with significant drops in gross profit, operating profit, and profit attributable to owners Key Data from Condensed Consolidated Statement of Profit or Loss | Metric (RMB thousands) | 2025 | 2024 | | :--------------------- | :------- | :------- | | Revenue | 9,159,425 | 9,983,269 | | Cost of Sales | (6,090,215) | (6,567,569) | | Gross Profit | 3,069,210 | 3,415,700 | | Operating Profit | 281,596 | 482,555 | | Profit for the Period | 200,106 | 338,006 | | Attributable to Owners of the Company | 187,615 | 335,722 | | Basic Earnings Per Share | RMB 3.62 cents | RMB 6.48 cents | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Profit for the period was RMB 200,106 thousand, but fair value losses and exchange differences increased other comprehensive expenses, reducing total comprehensive income to RMB 197,764 thousand Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric (RMB thousands) | 2025 | 2024 | | :--------------------- | :------- | :------- | | Profit for the Period | 200,106 | 338,006 | | Fair value (loss) gain on equity instruments at fair value through other comprehensive income | (716) | 1,256 | | Exchange differences arising from translation of foreign operations | (1,626) | 3,313 | | Other comprehensive (expense) income for the period | (2,342) | 4,569 | | Total comprehensive income for the period | 197,764 | 342,575 | | Attributable to Owners of the Company | 185,273 | 340,291 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, both non-current and current assets decreased, with a notable increase in bank borrowings despite a slight growth in net assets Key Data from Condensed Consolidated Statement of Financial Position | Metric (RMB thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------- | :--------------- | | Non-current assets | 3,329,854 | 3,630,267 | | Current assets | 9,261,076 | 9,407,623 | | Inventories | 4,865,388 | 4,946,314 | | Trade and other receivables | 2,009,997 | 2,124,515 | | Cash and cash equivalents | 1,232,169 | 1,419,052 | | Current liabilities | 2,844,523 | 3,253,830 | | Trade and other payables | 1,857,721 | 2,349,583 | | Bank borrowings | 196,778 | 39,273 | | Net assets | 8,977,358 | 8,870,796 | | Total equity | 8,977,358 | 8,870,796 | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The financial statements are prepared under HKAS 34 and Listing Rules, using historical cost, consistent with prior policies, with no material impact from new HFRS revisions - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - The condensed consolidated financial statements are prepared on the historical cost basis, except for certain properties and financial instruments that are measured at revalued amounts or fair values, and the accounting policies and methods of computation are consistent with those used in the annual consolidated financial statements for the prior year[10](index=10&type=chunk) - The revised Hong Kong Financial Reporting Standards (HKAS 21 (Amendment) Lack of Exchangeability) applied for the first time in the current interim period had no significant impact on the Group's financial position and performance for the current and prior periods[11](index=11&type=chunk) [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) The Group's main business is sportswear and footwear distribution and retail, plus concessionaire sales commissions, with total revenue of RMB 9,159,425 thousand for the period - The Group's principal activities are the distribution and retail of sportswear and footwear products, and earning concessionaire sales commissions by providing mall space[12](index=12&type=chunk) Revenue Analysis | Revenue (RMB thousands) | 2025 | 2024 | | :---------------------- | :------- | :------- | | Sales of sportswear and footwear products | 9,105,516 | 9,924,029 | | Concessionaire sales commissions | 53,909 | 59,240 | | **Total Revenue** | **9,159,425** | **9,983,269** | [Income Tax Expense](index=7&type=section&id=Income%20Tax%20Expense) Total income tax expense for the six months ended June 30, 2025, significantly decreased to RMB 74,998 thousand, mainly due to increased deferred tax credits Income Tax Expense Details | Income Tax Expense (RMB thousands) | 2025 | 2024 | | :--------------------------------- | :------- | :------- | | PRC Enterprise Income Tax - Current period | 121,652 | 125,213 | | PRC Enterprise Income Tax - Over-provision in prior periods | (24,819) | (11,547) | | Withholding tax on dividends | 15,000 | 15,254 | | Current tax expense – total | 111,833 | 128,920 | | Deferred tax (credit) expense | (36,835) | 7,985 | | **Total Income Tax Expense** | **74,998** | **136,905** | [Finance Costs and Profit for the Period](index=8&type=section&id=Finance%20Costs%20and%20Profit%20for%20the%20Period) Finance costs for the six months ended June 30, 2025, totaled RMB 28,091 thousand, mainly from lease liabilities, with profit calculated after various cost deductions Finance Costs Details | Finance Costs (RMB thousands) | 2025 | 2024 | | :---------------------------- | :------- | :------- | | Interest expense on bank borrowings | 1,482 | 1,191 | | Interest expense on advances from related parties | 47 | 50 | | Interest expense on lease liabilities | 26,562 | 34,139 | | **Total Finance Costs** | **28,091** | **35,380** | - Profit for the period is arrived at after charging total employee costs of **RMB 1,053,815 thousand**, depreciation of right-of-use assets of **RMB 337,733 thousand**, and depreciation of property, plant and equipment of **RMB 153,813 thousand**[17](index=17&type=chunk) - Net change in provision for inventories was **RMB 18,754 thousand**, which has been included in cost of sales[17](index=17&type=chunk) [Dividends](index=9&type=section&id=Dividends) Total dividends recognized were RMB 94,736 thousand, with the Board declaring an interim dividend of HKD 0.0115 and a special dividend of HKD 0.0115 per share Dividends Recognized During the Period | Dividends (RMB thousands) | 2025 | 2024 | | :------------------------ | :------- | :------- | | 2024 final dividend | 47,368 | 56,652 | | 2024 special dividend | 47,368 | – | | **Total** | **94,736** | **56,652** | - The Board resolved to declare an interim dividend of **HKD 0.0115** per share and a special dividend of **HKD 0.0115** per share, totaling **HKD 0.0230** per share, with a payout ratio of **60%**[18](index=18&type=chunk) [Earnings Per Share](index=9&type=section&id=Earnings%20Per%20Share) Profit attributable to owners was RMB 187,615 thousand, with weighted average ordinary shares of 5,183,714,855 for basic EPS and 5,195,697,858 for diluted EPS Earnings Per Share Calculation Data | Metric (RMB thousands) | 2025 | 2024 | | :--------------------- | :------- | :------- | | Profit for the period attributable to owners of the Company | 187,615 | 335,722 | Weighted Average Number of Ordinary Shares | Metric | 2025 | 2024 | | :--- | :------- | :------- | | Weighted average number of ordinary shares for the purpose of calculating basic earnings per share | 5,183,714,855 | 5,181,024,601 | | Effect of dilutive potential ordinary shares – unvested award shares | 11,983,003 | 2,662,649 | | Weighted average number of ordinary shares for the purpose of calculating diluted earnings per share | 5,195,697,858 | 5,183,687,250 | [Trade and Other Receivables and Payables](index=10&type=section&id=Trade%20and%20Other%20Receivables%20and%20Payables) As of June 30, 2025, trade and other receivables totaled RMB 918,539 thousand, while trade and other payables were RMB 684,224 thousand, with shifts in aging profiles - The Group generally grants credit periods of **30 to 60 days**[22](index=22&type=chunk) Aging Analysis of Trade and Other Receivables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :---------------------------- | :-------------------------------- | | 0 – 30 days | 899,678 | 955,328 | | 31 – 90 days | 18,646 | 18,373 | | Over 90 days | 215 | – | | **Total** | **918,539** | **973,701** | Aging Analysis of Trade and Other Payables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :---------------------------- | :-------------------------------- | | 0 – 30 days | 678,616 | 954,011 | | 31 – 90 days | – | 12,968 | | Over 90 days | 5,608 | 5,011 | | **Total** | **684,224** | **971,990** | [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=12&type=section&id=Business%20Review) Amidst a volatile consumption landscape, the Group adjusted strategies, optimized inventory, and enhanced omnichannel capabilities, achieving significant growth in private domain traffic and improving consumer experience [Business Environment](index=12&type=section&id=Business%20Environment) China's consumption environment saw normalized promotions, declining physical traffic, and intensified e-commerce, impacting the Group's profitability despite GDP and retail sales growth - China's H1 GDP grew by **5.3%** year-on-year, and total retail sales of consumer goods grew by **5.0%**, but the footwear and apparel retail sector continued to underperform[25](index=25&type=chunk) - The Group dynamically adjusted promotional strategies in response to market trends, cautiously implementing orderly discounts, but declining sales volume led to operating deleverage, and increased discount rates impacted profitability[25](index=25&type=chunk) - The Group continuously enhanced its omnichannel capabilities, with excellent performance in private domain traffic channels, and live streaming sales recorded **over 100% growth**[25](index=25&type=chunk) [Integrated Channel Management - Physical Stores](index=12&type=section&id=Integrated%20Channel%20Management%20-%20Physical%20Stores) Physical store traffic was weak, with same-store sales declining 10-20%, leading the Group to optimize its 3,408 direct stores in Greater China through refined retail strategies - Physical store traffic was weak, with same-store sales recording a **mid-teen decline of 10% to 20%**, and franchise channel performance deteriorated quarter-on-quarter[27](index=27&type=chunk) - As of June 30, 2025, the Group had **3,408 directly operated stores** in Greater China, with a net decrease of **40 stores** during the period[27](index=27&type=chunk)[28](index=28&type=chunk) - The Group continued to optimize its store portfolio and enhance digital capabilities, integrating its pan-micro-store ecosystem, membership programs, and other digital services with its physical store network to enrich consumer experience, and expanded its multi-brand outlet stores 'YYsports Warehouse'[28](index=28&type=chunk) [Integrated Channel Management - Omnichannel](index=14&type=section&id=Integrated%20Channel%20Management%20-%20Omnichannel) Omnichannel sales grew by **16%**, contributing **33%** to total sales, offsetting physical store weakness, with the Group leveraging its pan-micro-store ecosystem and Douyin live streaming for efficiency - The Group's omnichannel sales grew by approximately **16%** year-on-year, increasing its contribution to total sales to approximately **33%**, which helps efficient inventory management[30](index=30&type=chunk) - The pan-micro-store ecosystem, as an extension of the physical store network, drives conversion rates through quality, personalized services, and upgrades localized operations by integrating Douyin live streaming and nationwide inventory synchronization[30](index=30&type=chunk) [Strengthening Strategic Alliances with Business Partners](index=14&type=section&id=Strengthening%20Strategic%20Alliances%20with%20Business%20Partners) The Group enhanced digital membership via YYsports WeChat and live streaming, boosted member growth and sales through brand partner integration and Douyin authorization, and invested in joint marketing for improved logistics and inventory - The Group continued to empower its digital membership integration program through the YYsports WeChat mini-program and live streaming, supporting in-depth member management and promoting online-offline consumer experience[31](index=31&type=chunk) - By strengthening the integration with brand partner membership programs and expanding Douyin account authorizations, the Group further drove member growth and increased current season sales[31](index=31&type=chunk) - Continued investment in joint marketing platforms to enhance merchandise allocation and logistics management efficiency, and strengthen inventory integration plans with brand partners[32](index=32&type=chunk) [Digital Transformation for Operational Excellence](index=15&type=section&id=Digital%20Transformation%20for%20Operational%20Excellence) The Group advanced digital transformation by perfecting SAP system integration for business-finance optimization and upgrading business intelligence systems to enhance management decision-making and retail excellence - The Group continued to perfect the integration and upgrade of its SAP system, achieving business-finance integration and optimization, and enhancing management decision-making efficiency[33](index=33&type=chunk) - By integrating business intelligence systems and optimizing digital management tools, the Group can more efficiently oversee overall operations, improve in-store real-time efficiency, optimize resources, and digitally empower member services[33](index=33&type=chunk) [Performance Analysis](index=15&type=section&id=Performance%20Analysis) Revenue declined 8.3% and gross profit 10.1% due to a challenging retail environment, leading to a 41.6% drop in operating profit and a 44.1% decrease in profit attributable to owners [Financial Review](index=15&type=section&id=Financial%20Review) Revenue decreased 8.3% to RMB 9,159.4 million, gross profit fell 10.1% to RMB 3,069.2 million, and operating profit dropped 41.6% to RMB 281.6 million, impacting overall profitability - Revenue decreased by **8.3%** to **RMB 9,159.4 million**, primarily due to a volatile retail environment, fluctuating store traffic, and deteriorating performance of franchise channels[34](index=34&type=chunk)[35](index=35&type=chunk) - Gross profit was **RMB 3,069.2 million**, with gross profit margin decreasing by **0.7 percentage points** to **33.5%**, mainly affected by price competition in the retail industry and increased average discount rates[36](index=36&type=chunk) - Selling and distribution expenses and administrative expenses combined decreased by **5.3%** year-on-year to **RMB 2,890.3 million**, accounting for **31.6%** of total revenue[37](index=37&type=chunk) - Operating profit decreased by **41.6%** to **RMB 281.6 million**, with operating profit margin decreasing by **1.7 percentage points** year-on-year to **3.1%**[38](index=38&type=chunk) - Financial income was **RMB 21.6 million**, and finance costs decreased by **20.6%** to **RMB 28.1 million**, primarily benefiting from reduced interest expense on lease liabilities[39](index=39&type=chunk) - Profit attributable to owners of the company was **RMB 187.6 million**, with profit margin attributable to owners of **2.0%**, a year-on-year decrease of **1.4 percentage points**[40](index=40&type=chunk) [Working Capital Efficiency](index=17&type=section&id=Working%20Capital%20Efficiency) Average inventory turnover was **146 days**, with inventory value decreasing to **RMB 4,865.4 million**, while average trade receivables and payables turnover periods were **19** and **25 days**, respectively - Average inventory turnover period was **146 days** (H1 2024: 130 days), with less than **10%** of inventories over 12 months at period-end[41](index=41&type=chunk) - Inventory value decreased from **RMB 4,946.3 million** as of December 31, 2024, to **RMB 4,865.4 million** as of June 30, 2025[41](index=41&type=chunk) - Average trade receivables turnover period was **19 days** (H1 2024: 18 days), and average trade payables turnover period was **25 days** (H1 2024: 32 days)[41](index=41&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group maintained a robust financial position with **RMB 2,694.1 million** in cash, **RMB 6,416.6 million** in working capital, and a **2.2%** gearing ratio - Bank balances and cash (including bank deposits over three months and cash and cash equivalents) reached **RMB 2,694.1 million**[42](index=42&type=chunk) - Working capital (current assets less current liabilities) was **RMB 6,416.6 million**[42](index=42&type=chunk) - Total bank borrowings were **RMB 196.8 million**, with a gearing ratio of **2.2%** (December 31, 2024: 0.4%)[42](index=42&type=chunk) - Net cash generated from operating activities was **RMB 399.3 million**[43](index=43&type=chunk) [Capital Expenditure](index=17&type=section&id=Capital%20Expenditure) Capital expenditure decreased to **RMB 119.4 million**, primarily for new stores, upgrades, and digital transformation, with **RMB 23.5 million** in contracted but unprovided capital expenditure - Total capital expenditure decreased to **RMB 119.4 million** (H1 2024: RMB 190.8 million)[44](index=44&type=chunk) - Capital expenditure covered strategic new store openings, continuous upgrades of experience-oriented physical stores, and further advancement of long-term digital transformation strategies[44](index=44&type=chunk) - As of June 30, 2025, capital expenditure contracted but not provided for in the consolidated financial statements related to the acquisition of property, plant and equipment was **RMB 23.5 million**[45](index=45&type=chunk) [Foreign Currency Exchange](index=18&type=section&id=Foreign%20Currency%20Exchange) The Group primarily operates in Greater China with RMB-denominated transactions, currently without foreign exchange hedging, but may use derivatives to manage future currency risks - The Group primarily operates in Greater China, with most transactions denominated in **RMB**[46](index=46&type=chunk) - As of June 30, 2025, the Group had not used foreign exchange hedging financial instruments[46](index=46&type=chunk) - The Group may enter into forward contracts, currency swaps, or options as needed to hedge currency risks arising from foreign currency transactions[46](index=46&type=chunk) [Outlook and Future Developments](index=18&type=section&id=Outlook%20and%20Future%20Developments) [Strategic Focus and Development Directions](index=18&type=section&id=Strategic%20Focus%20and%20Development%20Directions) The Group will pursue operational excellence and digital transformation, focusing on refined retail, optimizing channels, expanding 'YYsports Warehouse', introducing new brands, and enhancing omnichannel traffic to boost competitiveness - The Group will continue to implement operational excellence and digital transformation strategies, strengthening its business model, diversifying channel mix, enhancing operational efficiency, strategically managing dynamic inventory, and efficiently managing working capital[47](index=47&type=chunk) - The Group will strengthen its own channel – multi-brand outlet store 'YYsports Warehouse' strategy, as an efficient channel for inventory clearance and new brand incubation[48](index=48&type=chunk) - The Group will expand the scale of popular Korean yoga brand XEXYMIX, open more Crocs and Pony 1972 mono-brand stores, and target the outdoor market with Dynafit[48](index=48&type=chunk) - The Group will strengthen omnichannel public and private domain traffic channels, including Douyin live streaming inventory synchronization, platform store cluster initiatives, instant retail, and Xiaohongshu seeding marketing[48](index=48&type=chunk) - The Group will continue to expand strategic cooperation with business partners, deepen inventory sharing and membership integration programs, and advance SAP system integration and optimization, leveraging upgraded business intelligence systems[49](index=49&type=chunk) [Industry Outlook](index=20&type=section&id=Industry%20Outlook) Despite challenges, the Greater China sports industry is promising, with China's sports industry value projected to reach **RMB 5 trillion** by 2025, driven by outdoor sports and major sporting events - The Greater China sports industry outlook remains promising, with China's sports industry value expected to expand to **RMB 5 trillion** by **2025**[50](index=50&type=chunk) - The outdoor sports industry is expected to exceed **RMB 3 trillion** by **2025**[50](index=50&type=chunk) - Upcoming major events such as the **2025 World Games**, **Women's Rugby World Cup**, **2026 Winter Olympics and Paralympics**, and **2026 FIFA World Cup** will drive sports goods consumption growth, especially in niche and women's sports markets[50](index=50&type=chunk) [Human Resources and Share Award Scheme](index=20&type=section&id=Human%20Resources%20and%20Share%20Award%20Scheme) [Human Resources](index=20&type=section&id=Human%20Resources) As of June 30, 2025, the Group employed approximately **19,200** staff, offering competitive remuneration, a share award scheme, and comprehensive benefits - As of June 30, 2025, the Group had approximately **19,200 employees**[51](index=51&type=chunk) - The Group provides market-competitive remuneration, share awards, and employee benefits such as social insurance, mandatory provident fund, medical benefits, and training programs[51](index=51&type=chunk) [Share Award Scheme](index=20&type=section&id=Share%20Award%20Scheme) The share award scheme uses existing shares, with total awards capped at **4%** of issued shares; **133,721,810** shares awarded to date, with **19,200,000** unvested - The share award scheme involves existing shares only and does not involve the issuance of new shares[52](index=52&type=chunk) - The total number of award shares shall not exceed **4%** (i.e., **213,047,184 shares**) of the number of issued shares on the date of grant[52](index=52&type=chunk) - As of the date of this announcement, the total number of shares awarded under the share award scheme was **133,721,810 shares**, representing approximately **2.51%** of the issued shares[52](index=52&type=chunk) - For the six months ended June 30, 2025, no award shares were granted, **2,880,000** award shares lapsed or were cancelled, and **19,200,000** award shares remained unvested[53](index=53&type=chunk) [Dividend Policy](index=21&type=section&id=Dividend%20Policy) [Interim and Special Dividends](index=21&type=section&id=Interim%20and%20Special%20Dividends) The Board declared an interim dividend of **HKD 0.0115** and a special dividend of **HKD 0.0115** per share, totaling **HKD 0.0230** per share, with a **60%** payout ratio - The Board resolved to declare an interim dividend of **HKD 0.0115** per share (H1 2024: HKD 0.02 per share)[54](index=54&type=chunk) - The Board resolved to declare a special dividend of **HKD 0.0115** per share (H1 2024: HKD 0.02 per share)[54](index=54&type=chunk) - Total dividends paid for the period were **HKD 0.0230** per share, with a payout ratio of **60%**[54](index=54&type=chunk) [Closure of Register of Members](index=21&type=section&id=Closure%20of%20Register%20of%20Members) The register of members will be closed from **September 16 to September 18, 2025**, for interim and special dividend eligibility, with transfer documents due by **September 15, 2025** - The Company will suspend the registration of members from **Tuesday, September 16, 2025, to Thursday, September 18, 2025**[55](index=55&type=chunk) - To qualify for the interim and special dividends, all transfer documents must be lodged with Computershare Hong Kong Investor Services Limited not later than **4:30 p.m. on Monday, September 15, 2025**[55](index=55&type=chunk) [Dealings in Listed Securities](index=21&type=section&id=Dealings%20in%20Listed%20Securities) [Purchase, Sale or Redemption of Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor held any treasury shares for the six months ended June 30, 2025 - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries had purchased, sold, or redeemed any of its listed securities[56](index=56&type=chunk) - As at June 30, 2025, the Company did not hold any treasury shares in the Central Clearing and Settlement System or otherwise[56](index=56&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) [Review of Accounts](index=22&type=section&id=Review%20of%20Accounts) The Audit Committee, management, and independent auditor Deloitte Touche Tohmatsu reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025 - The Audit Committee of the Board has reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, with management and the independent auditor[57](index=57&type=chunk) - Deloitte Touche Tohmatsu, the independent auditor, has reviewed the Group's unaudited condensed consolidated financial information in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[57](index=57&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The company applied and complied with the Corporate Governance Code principles and provisions in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The Company has applied the principles set out in the Corporate Governance Code in Appendix C1 to the Listing Rules and has complied with all applicable code provisions and recommended best practices[58](index=58&type=chunk) [Standard Code for Securities Transactions by Directors](index=22&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code for Securities Transactions by Directors, and all directors confirmed compliance throughout the period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its code of conduct regarding directors’ dealings in the Company’s securities[59](index=59&type=chunk) - Following specific enquiry by the Company, all Directors confirmed that they had complied with the required standards set out in the Standard Code throughout the six months ended June 30, 2025[59](index=59&type=chunk) [Publication of Results Announcement and Interim Report](index=22&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This announcement is published on the company and HKEX websites, with the 2025 interim report to be published and dispatched to shareholders in due course - This announcement has been published on the Company’s website (www.pousheng.com) and the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk)[60](index=60&type=chunk) - The Company’s 2025 interim report containing all applicable information required by the Listing Rules will be published on the above websites and dispatched to shareholders in due course in the manner required by the Listing Rules[60](index=60&type=chunk) [Acknowledgements and Board of Directors](index=22&type=section&id=Acknowledgements%20and%20Board%20of%20Directors) [Acknowledgements](index=22&type=section&id=Acknowledgements) Chairman Mr. George Chou expressed gratitude to customers, suppliers, shareholders, fellow directors, and all employees for their support and dedicated service - Mr. George Chou, the Chairman, sincerely thanked all customers, suppliers, and shareholders for their support, and fellow directors for their valuable contributions and all employees of the Group for their full commitment and dedicated service during the period[61](index=61&type=chunk)[62](index=62&type=chunk) [Board of Directors](index=23&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprises non-executive, executive, and independent non-executive directors, including Chairman Mr. George Chou, CEO Ms. Sharon Chang, and CFO Mr. Jason Chen - The Board of Directors includes Non-executive Directors Mr. George Chou (Chairman), Ms. Patty Tsai, and Mr. Lee Yi-Nan[64](index=64&type=chunk) - Executive Directors include Mr. Hu Chia-Ho, Ms. Sharon Chang (Chief Executive Officer), and Mr. Jason Chen (Chief Financial Officer)[64](index=64&type=chunk) - Independent Non-executive Directors include Mr. Chen Huan-Chung, Mr. Fung Raymond, and Mr. Liu Shih-Liang[64](index=64&type=chunk)

[Performance Highlights](index=3&type=section&id=Performance%20Highlights) [Key Financial Indicators](index=3&type=section&id=Key%20Financial%20Indicators) For the six months ended June 30, 2025, Youzan Technology's total revenue increased by 4.0% to RMB 714 million, swinging to a profit of RMB 72.57 million for the period, with operating profit surging over 30 times, while gross margin decreased from 68.4% to 65.4% Overview of Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue** | 713,589,000 | 686,329,000 | +4.0% | | **Gross Profit** | 466,775,000 | 469,149,000 | -0.5% | | **Gross Margin** | 65.4% | 68.4% | -3.0 p.p. | | **Operating Profit** | 84,089,000 | 2,586,000 | +3151.7% | | **Profit/(Loss) for the Period** | 72,569,000 | (4,295,000) | Swung to Profit | | **Cash and Cash Equivalents (End of Period)** | 939,816,000 | - | - | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[7](index=7&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, the company's total revenue was RMB 714 million, a 4.0% year-on-year increase, with operating profit significantly rising from RMB 2.59 million to RMB 84.09 million due to effective control of expenses, resulting in a net profit of RMB 72.57 million and basic earnings per share of RMB 0.0023, a turnaround from last year's loss Consolidated Statement of Profit or Loss Summary | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 713,589 | 686,329 | | Gross Profit | 466,775 | 469,149 | | Operating Profit | 84,089 | 2,586 | | Profit/(Loss) Before Tax | 74,353 | (6,764) | | Profit/(Loss) for the Period | 72,569 | (4,295) | | Profit/(Loss) Attributable to Owners of the Parent | 72,742 | (17,224) | | Basic Earnings/(Loss) Per Share (RMB) | 0.0023 | (0.0005) | [Consolidated Statement of Financial Position](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were RMB 6.08 billion, total liabilities RMB 4.94 billion, and net assets RMB 1.14 billion, an increase from RMB 1.08 billion at the end of 2024, with net current assets rising to RMB 388 million and a current ratio of 1.09, indicating stable short-term solvency Consolidated Statement of Financial Position Summary | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Total Non-current Assets** | 1,408,728 | 1,412,490 | | **Total Current Assets** | 4,670,940 | 4,498,721 | | **Total Current Liabilities** | 4,283,227 | 4,144,146 | | **Net Current Assets** | 387,713 | 354,575 | | **Total Non-current Liabilities** | 657,915 | 691,574 | | **Net Assets** | 1,138,526 | 1,075,491 | [Consolidated Statement of Changes in Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, total equity attributable to owners of the parent increased to RMB 1.14 billion, primarily driven by a profit of RMB 72.74 million for the period, alongside share repurchases of RMB 22.54 million and adjustments to reserves due to share award schemes - During the period, equity attributable to owners of the parent increased from **RMB 1.077 billion** at the beginning of the year to **RMB 1.140 billion** at the end of the period[13](index=13&type=chunk) - The primary driver for the increase in equity was the **RMB 72.74 million** profit recorded for the period[13](index=13&type=chunk) - The company conducted share repurchases during the period, leading to an increase in treasury shares of **RMB 22.54 million**[13](index=13&type=chunk) [Consolidated Statement of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the reporting period, net cash flow from operating activities turned positive, reaching a net inflow of RMB 86.53 million, indicating improved core business cash generation, with cash and cash equivalents increasing by RMB 51.09 million to RMB 940 million at period-end, reflecting a robust overall financial position Cash Flow Statement Summary | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Flows from/(used in) Operating Activities | 86,530 | (64,293) | | Net Cash Flows from/(used in) Investing Activities | 95 | (1,086) | | Net Cash Flows used in Financing Activities | (35,539) | (17,088) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | **51,086** | **(82,467)** | | **Cash and Cash Equivalents at End of Period** | **939,816** | **840,766** | [Notes to the Financial Statements](index=12&type=section&id=Notes%20to%20the%20Financial%20Statements) [Operating Segment Information](index=13&type=section&id=Operating%20Segment%20Information) The company operates in three segments: third-party payment services, merchant services, and others, with merchant services being the primary revenue source at RMB 560 million and turning profitable with RMB 41.28 million, while third-party payment services generated RMB 150 million in revenue and RMB 51.74 million in segment profit Segment Performance for H1 2025 | Segment | Sales to External Customers (RMB thousands) | Segment Profit (RMB thousands) | | :--- | :--- | :--- | | Third-Party Payment Services | 149,807 | 51,741 | | Merchant Services | 560,277 | 41,278 | | Other | 3,505 | 3,560 | - Compared to the same period last year, the merchant services segment's performance significantly improved, swinging from a loss of **RMB 41.83 million** to a profit of **RMB 41.28 million**[22](index=22&type=chunk) [Revenue Analysis](index=15&type=section&id=Revenue%20Analysis) The company's total revenue is primarily derived from subscription and merchant solutions, with merchant solutions revenue growing by 10.3% to RMB 338 million, driving overall growth, while subscription solutions revenue slightly decreased by 1.0% to RMB 374 million, with the vast majority of revenue originating from mainland China Revenue by Business Line | Business Line | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Subscription Solutions | 373,643 | 377,489 | -1.0% | | Merchant Solutions | 338,211 | 306,639 | +10.3% | | Other | 1,735 | 2,201 | -21.2% | | **Total** | **713,589** | **686,329** | **+4.0%** | - Over **99%** of the company's revenue is derived from the mainland China market[24](index=24&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=27&type=section&id=Business%20Review%20and%20Outlook) In H1 2025, Youzan continued to integrate intelligent technology into its SaaS solutions, helping merchants enhance public domain marketing, private domain operations, and store management efficiency, with GMV reaching approximately RMB 49.8 billion, of which 51% came from store SaaS business, and existing paying merchants totaling 53,651 with an 11% increase in average sales per merchant - The company's core strategy is to provide merchants with social network-based omnichannel SaaS systems and new retail solutions, continuously integrating intelligent technology to help merchants increase revenue and efficiency[47](index=47&type=chunk)[48](index=48&type=chunk) Key Operating Data for H1 2025 | Indicator | Value | | :--- | :--- | | Gross Merchandise Volume (GMV) | Approximately RMB 49.8 billion | | Proportion of GMV from Store SaaS Business | Approximately 51% | | Average Sales Per Merchant | Approximately RMB 0.93 million (Year-on-year increase of **11%**) | | Number of Existing Paying Merchants | 53,651 | | Number of New Paying Merchants | 8,583 | - The company's future business development strategy is to: 1. Achieve business growth while maintaining a steady increase in profit margins; 2. Enhance the "silicon content" (intelligence) across all business segments to build an intelligent organization[53](index=53&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) Total revenue in H1 2025 grew 4.0% to RMB 714 million, primarily driven by a 10.3% increase in merchant solutions revenue due to higher logistics solution penetration, while subscription solutions revenue slightly declined by 1.0%, and cost of sales rose 13.6% due to increased logistics and transaction costs, leading to a gross margin decrease from 68.4% to 65.4%, with significant operating profit improvement attributed to effective control over selling, administrative, and R&D expenses Revenue Composition and Changes | Business Line | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Subscription Solutions | 373,643 | 377,489 | (1.0) | | Merchant Solutions | 338,211 | 306,639 | 10.3 | | **Total** | **713,589** | **686,329** | **4.0** | - Cost of sales increased by **13.6%** year-on-year, primarily due to higher logistics costs (**+69.0%**), transaction costs (**+9.6%**), and technical service expenses (**+52.6%**) [62](index=62&type=chunk) Gross Profit and Gross Margin Analysis | Business Line | H1 2025 Gross Profit (RMB thousands) | H1 2025 Gross Margin (%) | H1 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | | Subscription Solutions | 287,318 | 76.9% | 78.3% | | Merchant Solutions | 178,323 | 52.7% | 56.2% | | **Total** | **466,775** | **65.4%** | **68.4%** | - All operating expenses decreased year-on-year: selling and distribution expenses by **2.2%**, administrative expenses by **9.4%**, and research and development costs by **14.9%**, primarily due to personnel optimization and the widespread application of AI tools[68](index=68&type=chunk) [Non-HKFRS Measures](index=34&type=section&id=Non-HKFRS%20Measures) To better reflect core operating performance, the company disclosed non-HKFRS financial metrics, with adjusted EBITDA reaching RMB 70.20 million, a 94.6% year-on-year increase, and adjusted non-HKFRS profit for the period at RMB 82.36 million, up 59.0%, after excluding non-cash or non-operating items like share-based payments and depreciation and amortization Reconciliation of Non-HKFRS Measures | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Operating Profit | 84,089 | 2,586 | | **Adjusted EBITDA** | **70,201** | **36,069** | | Profit/(Loss) for the Period | 72,569 | (4,295) | | **Adjusted Non-HKFRS Profit for the Period** | **82,357** | **51,806** | [Capital and Liquidity](index=36&type=section&id=Capital%20and%20Liquidity) As of June 30, 2025, the company maintained a robust financial position with approximately RMB 940 million in cash and cash equivalents, a stable debt-to-asset ratio of 5.7%, and manageable foreign exchange risk as most transactions and balances are denominated in RMB, with a total of 1,509 employees at period-end - As of June 30, 2025, the Group's cash and cash equivalents amounted to approximately **RMB 940 million**[76](index=76&type=chunk) - The debt-to-asset ratio (total debt/total assets) was **5.7%**, remaining stable compared to the end of 2024[74](index=74&type=chunk) - As of June 30, 2025, the Group employed approximately **1,509** staff[78](index=78&type=chunk) [Other Statutory Disclosures](index=38&type=section&id=Other%20Statutory%20Disclosures) [Share Option and Share Award Schemes](index=40&type=section&id=Share%20Option%20and%20Share%20Award%20Schemes) The company incentivizes employees through share option and share award schemes, with 13.6 million unexercised share options under the 2019 scheme as of June 30, 2025, and the share award scheme ongoing, with certain awards vested and forfeited during the period, and scheme limits clarified - As of June 30, 2025, there were **13,600,000** unexercised share options under the terminated "2019 Share Option Scheme," with an exercise price of **HKD 0.385**[89](index=89&type=chunk) - During the period, **12,353,942** awarded shares vested and **6,012,564** awarded shares were forfeited or lapsed under the Share Award Scheme[95](index=95&type=chunk) [Share Repurchases](index=44&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, the company actively repurchased 257.87 million shares on the Stock Exchange for a total consideration of approximately HKD 23.79 million, demonstrating management's confidence in the company's prospects, and also transferred approximately 1.576 billion treasury shares to the trustee under the share award scheme Share Repurchase Details for H1 2025 | Repurchase Month | Number of Shares Repurchased | Price Paid Per Share Range (HKD) | Total Consideration (HKD thousands) | | :--- | :--- | :--- | :--- | | January 2025 | 4,000,000 | 0.104 - 0.108 | 428 | | March 2025 | 59,888,000 | 0.097 - 0.104 | 6,084 | | April 2025 | 136,392,000 | 0.079 - 0.101 | 11,945 | | May 2025 | 40,588,000 | 0.086 - 0.095 | 3,721 | | June 2025 | 17,000,000 | 0.090 - 0.097 | 1,613 | | **Total** | **257,868,000** | - | **23,791** | [Corporate Governance](index=45&type=section&id=Corporate%20Governance) The company is committed to maintaining high corporate governance standards, largely complying with the Corporate Governance Code during the reporting period, though the roles of Chairman and CEO are held by the same individual, Mr. Zhu Ning, a deviation from Code Provision C.2.1, which the Board believes is in the best interest of the company and its shareholders, and the Audit Committee has reviewed the period's results - The company has complied with the Corporate Governance Code, but there is a deviation from Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Zhu Ning[103](index=103&type=chunk)[104](index=104&type=chunk) - The Board believes that Mr. Zhu Ning serving concurrently as Chairman and Chief Executive Officer facilitates the continuous execution of business plans and is in the overall best interest of the company and its shareholders[105](index=105&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim results for the period[106](index=106&type=chunk)

Stock code 股份代號: 8601 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Interim Report 中期報告 2025 寶燵控股有限公司 Boltek Holdings Limited CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing i ...

Financial Performance - Revenue for the six months ended June 30, 2025, was approximately $62,943,000, an increase of about 9.9% compared to the same period last year[2]. - Net profit for the same period was approximately $21,665,000, representing a year-on-year increase of about 13.4%[2]. - Basic earnings per share for the six months ended June 30, 2025, was approximately 1.96 cents, an increase of about 12.6% year-on-year[2]. - Gross profit for the six months was approximately $34,963,000, compared to $31,745,000 in the previous year, reflecting a strong performance[3]. - The company reported a pre-tax profit of $26,577,000, up from $22,710,000 in the same period last year[3]. - The total pre-tax profit for the six months ended June 30, 2025, was $26,577 thousand, compared to $22,710 thousand in 2024, showing an increase of 17.0%[23]. - The company's profit attributable to owners for the six months ended June 30, 2025, was approximately $21,665,000, reflecting a year-on-year growth of about 13.4%[59]. Dividends and Shareholder Returns - The board declared an interim dividend of 12.34 HK cents per share to shareholders listed on August 15, 2025[2]. - The interim dividend for the six months ended June 30, 2025, is set at 12.34 HK cents per share, up from 10.83 HK cents per share in 2024, reflecting a 13.98% increase[26]. - The board declared an interim dividend of HK$0.1234 per share for the period ending June 30, 2025, with payment expected on August 26, 2025[77]. Revenue Breakdown - Total revenue from customer contracts for the six months ended June 30, 2025, was $62,943 thousand, representing an increase of 9.5% compared to $57,298 thousand for the same period in 2024[19]. - Revenue from SD-WAN router sales was $44,447 thousand for the six months ended June 30, 2025, up from $40,946 thousand in 2024, marking a growth of 12.2%[20]. - Revenue from North America decreased to $34,394 thousand in 2025 from $36,761 thousand in 2024, a decline of 6.4%[17]. - Revenue from Europe, the Middle East, and Africa increased significantly to $20,497 thousand in 2025 from $14,725 thousand in 2024, reflecting a growth of 39.1%[17]. - Sales from fixed network priority connections slightly decreased to approximately $7,616,000, while mobile network priority connections increased to approximately $36,831,000, a year-over-year growth of about 14.4%[38]. - Warranty and support services grew by approximately 6.9% to about $13,441,000, and software license sales increased by approximately 33.8% to about $5,055,000[38]. - The sales breakdown for the six months ended June 30, 2025, showed that one-time sales accounted for 71.9% of total revenue, while recurring sales accounted for 28.1%[43]. Expenses and Costs - The cost of goods sold for the six months ended June 30, 2025, was $26,771 thousand, up from $24,450 thousand in 2024, representing an increase of 9.5%[23]. - Total operating expenses for the six months ended June 30, 2025, were approximately $10,151,000, an increase of about 4.2% year-on-year[56]. - Sales and distribution expenses slightly decreased to approximately $1,821,000 for the six months ended June 30, 2025[50]. - General and administrative expenses increased slightly to approximately $3,710,000 for the six months ended June 30, 2025[52]. - Research and development, consulting, and other expenses grew by 9.9% to approximately $4,620,000 for the six months ended June 30, 2025, mainly due to increased salaries[53]. Assets and Liabilities - Cash and cash equivalents at the end of the period were $55,666,000, down from $65,933,000 at the end of the previous year[7]. - Total assets less current liabilities amounted to $66,977,000, compared to $68,996,000 at the end of the previous year[5]. - The company’s total equity was $51,557,000 as of June 30, 2025, down from $56,299,000 at the end of the previous year[5]. - Trade receivables increased to $25,891,000 as of June 30, 2025, from $15,519,000 as of December 31, 2024, marking a growth of 66.8%[30]. - Inventory decreased to $13,619,000 as of June 30, 2025, from $16,160,000 as of December 31, 2024, indicating a reduction of 15.4%[29]. - Trade payables amounted to $5,434,000 as of June 30, 2025, compared to $4,321,000 as of December 31, 2024, showing an increase of 25.8%[32]. - As of June 30, 2025, the company's bank borrowings amounted to approximately $3,085,000, down from $8,516,000 as of December 31, 2024[69]. - The capital-to-debt ratio as of June 30, 2025, was approximately 6.0%, a decrease from 15.1% as of December 31, 2024[69]. Employee and Corporate Governance - The company had 196 full-time employees as of June 30, 2025, an increase from 180 full-time employees as of December 31, 2024[72]. - The company has adopted a corporate governance code to maintain high levels of corporate governance and transparency[89]. - The company has complied with all applicable provisions of the corporate governance code during the reporting period[89]. - The board's remuneration is determined based on the company's operational performance, individual performance, and market data[73]. Strategic Initiatives - The company plans to develop more targeted regional strategies and new products for the EMEA and Asia-Pacific markets to better meet customer needs[62]. - The collaboration with Starlink has expanded to include all Starlink devices, opening up a larger potential market[64]. - The company launched the SpeedFusion Connect application on iOS and Android, enhancing connectivity for mobile users[66]. Stock Options and Shareholder Information - The company has granted a total of 13,321,000 stock options as of June 30, 2025, with 12,274,000 options remaining after accounting for forfeitures and cancellations[82]. - The exercise price for stock options granted on July 20, 2016, is HKD 0.483, with a total of 25% of these options exercisable one year after the grant date[85]. - The stock options granted on December 11, 2023, have an exercise price of HKD 1.99, with 100,000 options granted and fully vested[82]. - As of June 30, 2025, the company's major shareholder holds 756,000,000 shares, representing 68.6% of the total shares[79]. Other Information - The company has no significant investments or investment plans as of June 30, 2025[74]. - There were no significant acquisitions or disposals of subsidiaries or associates during the period ending June 30, 2025[75]. - The company has not conducted any significant subsequent events after June 30, 2025, up to the date of this interim report[86]. - The company does not currently have a foreign exchange hedging policy but monitors foreign exchange risks closely[71]. - The company has not purchased, redeemed, or sold any of its listed securities during the reporting period[88]. - The audit committee has reviewed the group's interim performance and discussed audit, internal control, and financial reporting matters with management[91].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性或完整性亦不發表任何聲明，並明 確表示，概不對因本公佈全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 TINGYI (CAYMAN ISLANDS) HOLDING CORP. 康師傅控股有限公司* （在開曼群島註冊成立之有限公司） （股份編號：0322） 截至二零二五年六月三十日止六個月 業績公佈 摘要 | | | 截至6月30日止6個月 | | | | --- | --- | --- | --- | --- | | | 人民幣千元 | 2025年 | 2024年 | 變動 | | ‧ | 收益 | 40,092,163 | 41,201,208 | ↓2.7% | | ‧ | 毛利率(%) | 34.5% | 32.6% | ↑1.9個百分點 | | ‧ | 集團毛利 | 13,815,035 | 13,439,915 | ↑2.8% | | ‧ | 扣除利息、稅項、折舊及攤銷前盈利(EBITDA) | 5,450,637 | 4,824,605 | ↑13.0% | | ‧ | 本期溢利 | 2,6 ...