[Financial Summary](index=1&type=section&id=Financial%20Summary) The Group's H1 2025 revenue grew **42.1%** to **US$46.6 million**, achieving a **US$0.04 million** net profit from a prior loss, with no interim dividend recommended [Financial Summary](index=1&type=section&id=Financial%20Summary) Key financial performance indicators for the six months ended June 30, 2025, show significant revenue growth and a return to profitability Financial Summary for the Six Months Ended June 30 (in USD) | | For the Six Months Ended June 30 | | | :--- | :--- | :--- | | | 2025 | 2024 | | ‧Revenue | 46,602,134 | 32,849,975 | | ‧Gross Profit | 5,399,679 | 2,832,826 | | ‧Profit/(Loss) After Tax | 42,597 | (2,418,353) | | ‧Earnings/(Loss) Per Share | 0.00005 | (0.00266) | [Board Statement](index=1&type=section&id=Board%20Statement) The Board's statement confirms no interim dividend recommendation for the reporting period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[3](index=3&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated statement of profit or loss and other comprehensive income and the consolidated statement of financial position, reflecting the Group's financial performance and position [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement details the Group's revenue, expenses, and overall profitability for the six-month period, including other comprehensive income items Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited, in USD) | | | For the Six Months Ended June 30 | | | :--- | :--- | :--- | :--- | | | Note | 2025 | 2024 | | | | USD | USD | | Revenue | 3 | 46,602,134 | 32,849,975 | | Cost of Sales | | (41,202,455) | (30,017,149) | | Gross Profit | | 5,399,679 | 2,832,826 | | Other Income | | 564,244 | 125,682 | | Distribution Expenses | | (1,936,470) | (1,889,763) | | Technology Transfer Fees | | (56,674) | (71,710) | | Administrative and Other Operating Expenses | | (3,067,806) | (3,107,416) | | Results from Operations | | 902,973 | (2,110,381) | | Finance Income | | 1,121,808 | 1,242,306 | | Finance Expenses | | (1,826,283) | (1,211,010) | | Net Finance (Expenses)/Income | 4(a) | (704,475) | 31,296 | | Impairment Loss on Other Property, Plant and Equipment | 4(c) | (125,278) | (282,675) | | Share of Profit/(Loss) of an Associate | | 29,212 | (56,306) | | | | (96,066) | (338,981) | | Profit/(Loss) Before Income Tax | 4 | 102,432 | (2,418,066) | | Income Tax Expense | 5 | (59,835) | (287) | | Profit/(Loss) for the Period | | 42,597 | (2,418,353) | | Other Comprehensive Income for the Period (Net of Tax) | | | | | Items that may be reclassified subsequently to profit or loss: | | | | | Exchange differences on translation of financial statements of foreign subsidiaries and associate | | (682,459) | (2,320,448) | | Total Comprehensive Income for the Period | | (639,862) | (4,738,801) | | Profit/(Loss) for the Period Attributable to: | | | | | Equity holders of the Company | | 42,518 | (2,418,353) | | Non-controlling interests | | 79 | - | | | | 42,597 | (2,418,353) | | Total Comprehensive Income Attributable to: | | | | | Equity holders of the Company | | (639,941) | (4,738,801) | | Non-controlling interests | | 79 | - | | | | (639,862) | (4,738,801) | | Earnings/(Loss) Per Share - Basic and Diluted | 6 | 0.00005 | (0.00266) | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the Group's assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Consolidated Statement of Financial Position (Unaudited, in USD) | | 2025 | 2024 | | :--- | :--- | :--- | | | June 30 | December 31 | | | USD | USD | | **Non-Current Assets** | | | | Investment Properties | 3,613,808 | 3,725,726 | | Other Property, Plant and Equipment | 3,345,490 | 3,544,783 | | Interests in an Associate | 531,381 | 516,470 | | **Total Non-Current Assets** | **7,490,679** | **7,786,979** | | **Current Assets** | | | | Inventories | 25,271,692 | 22,292,912 | | Trade and Other Receivables and Prepayments | 21,248,539 | 18,886,534 | | Recoverable Current Tax | 8,371 | - | | Cash and Bank Balances | 58,590,173 | 54,391,467 | | **Total Current Assets** | **105,118,775** | **95,570,913** | | **Current Liabilities** | | | | Trade and Other Payables | 22,914,631 | 22,220,446 | | Bank Loans | 43,250,656 | 33,823,923 | | Lease Liabilities | 55,445 | 55,085 | | Current Tax Payable | 52,063 | 200,245 | | **Total Current Liabilities** | **66,272,795** | **56,299,699** | | **Net Current Assets** | **38,845,980** | **39,271,214** | | **Total Assets Less Current Liabilities** | **46,336,659** | **47,058,193** | | **Non-Current Liabilities** | | | | Deferred Tax Liabilities | 16,107 | 14,395 | | Lease Liabilities | 1,977,893 | 2,061,277 | | **Total Non-Current Liabilities** | **1,994,000** | **2,075,672** | | **Net Assets** | **44,342,659** | **44,982,521** | | **Equity and Reserves** | | | | Share Capital | 1,162,872 | 1,162,872 | | Reserves | 43,175,396 | 43,815,337 | | **Total Equity Attributable to Equity Holders of the Company** | **44,338,268** | **44,978,209** | | Non-controlling Interests | 4,391 | 4,312 | | **Total Equity** | **44,342,659** | **44,982,521** | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the interim financial report's basis of preparation, accounting policy changes, revenue, segment information, profit/loss before tax, income tax, earnings per share, and key financial positions [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) This section outlines the accounting standards and review procedures used for preparing the interim financial report - This interim financial report is unaudited and prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 "Interim Financial Reporting"[9](index=9&type=chunk) - The report has been reviewed by the Company's auditor, KPMG, in accordance with Hong Kong Standard on Review Engagements 2410[10](index=10&type=chunk) [2. Changes in Accounting Policies](index=6&type=section&id=2.%20Changes%20in%20Accounting%20Policies) This section details any new accounting standards or interpretations adopted and their impact on the interim financial report - The Group has applied the amendments to International Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability", which had no material impact on this interim report[11](index=11&type=chunk) - No new standards or interpretations not yet effective have been adopted in this accounting period[12](index=12&type=chunk) [3. Revenue and Segment Information](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group is divided into two reporting segments: manufacturing and sales of motorcycles, and spare parts and engines, with revenue classified by product/service and customer geography [3(a) Revenue Classification](index=7&type=section&id=3%28a%29%20Revenue%20Classification) This section presents the Group's revenue categorized by major product or service items and the geographical distribution of its customers Revenue Classification (by Major Product or Service Items and Customer Geographical Location) | | For the Six Months Ended June 30 | | | :--- | :--- | :--- | | | 2025 (USD) | 2024 (USD) | | **By Major Product or Service Items** | | | | - Manufacturing and sales of motorcycles | 41,798,757 | 28,704,173 | | - Manufacturing and sales of spare parts and engines | 4,803,377 | 4,145,802 | | **Total Revenue** | **46,602,134** | **32,849,975** | | **By Geographical Location of Customers** | | | | - Vietnam (location of operations) | 18,348,302 | 17,467,360 | | - Malaysia | 11,534,868 | 7,120,613 | | - Greece | 3,522,944 | 1,778,689 | | - Philippines | 2,903,796 | 2,639,203 | | - Thailand | 2,362,185 | 1,484,395 | | - Spain | 1,997,629 | - | | - Belgium | 1,490,656 | - | | - China | 971,370 | 122,872 | | - United Arab Emirates | - | 1,783,994 | | - Other regions | 3,470,384 | 452,849 | | **Total Revenue** | **46,602,134** | **32,849,975** | [3(b) Information on Segment Revenue and Profit/Loss](index=8&type=section&id=3%28b%29%20Information%20on%20Segment%20Revenue%20and%20Profit%2FLoss) This section provides detailed financial information on revenue and profit/loss for each reportable business segment Segment Revenue and Profit/Loss | | For the Six Months Ended June 30, 2025 | | | | For the Six Months Ended June 30, 2024 | | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Manufacturing and sales of motorcycles (USD) | Manufacturing and sales of spare parts and engines (USD) | Total (USD) | | Manufacturing and sales of motorcycles (USD) | Manufacturing and sales of spare parts and engines (USD) | Total (USD) | | Revenue from external customers | 41,798,757 | 4,803,377 | 46,602,134 | | 28,704,173 | 4,145,802 | 32,849,975 | | Inter-segment revenue | - | 9,770,012 | 9,770,012 | | - | 7,596,180 | 7,596,180 | | Reportable segment revenue | 41,798,757 | 14,573,389 | 56,372,146 | | 28,704,173 | 11,741,982 | 40,446,155 | | Segment profit/(loss) before depreciation | 1,479,874 | 62,011 | 1,541,885 | | (670,973) | (423,062) | (1,094,035) | | Depreciation | (107,281) | - | (107,281) | | (110,605) | - | (110,605) | | Reportable segment profit/(loss) | 1,372,593 | 62,011 | 1,434,604 | | (781,578) | (423,062) | (1,204,640) | | Share of profit/(loss) of an associate | | | 29,212 | | | | (56,306) | | Net finance expenses | | | (704,475) | | | | 31,296 | | Impairment loss on other property, plant and equipment | | | (125,278) | | | | (282,675) | | Unallocated corporate expenses | | | (531,631) | | | | (905,741) | | Profit/(Loss) before income tax | | | 102,432 | | | | (2,418,066) | [4. Profit/(Loss) Before Income Tax](index=9&type=section&id=4.%20Profit%2F%28Loss%29%20Before%20Income%20Tax) This section details components affecting profit/loss before tax, including net finance expenses/income, staff costs, other operating items, and impairment losses on property, plant and equipment [4(a) Net Finance Expenses/(Income)](index=9&type=section&id=4%28a%29%20Net%20Finance%20Expenses%2F%28Income%29) This section breaks down the Group's net finance expenses or income, including bank interest and foreign exchange gains/losses Net Finance Expenses/(Income) | | For the Six Months Ended June 30 | | | :--- | :--- | :--- | | | 2025 (USD) | 2024 (USD) | | Bank interest income | (1,121,808) | (1,242,306) | | Finance income | (1,121,808) | (1,242,306) | | Bank interest paid and payable | 848,815 | 886,878 | | Interest on lease liabilities | 71,472 | 50,200 | | Net foreign exchange losses | 905,996 | 273,932 | | Finance expenses | 1,826,283 | 1,211,010 | | Net finance expenses/(income) | 704,475 | (31,296) | [4(b) Staff Costs](index=9&type=section&id=4%28b%29%20Staff%20Costs) This section details the total staff costs, including wages, salaries, and retirement plan contributions Staff Costs | | For the Six Months Ended June 30 | | | :--- | :--- | :--- | | | 2025 (USD) | 2024 (USD) | | Wages, salaries and other benefits | 4,543,328 | 4,327,554 | | Defined contribution retirement plan contributions | 552,773 | 557,285 | | **Total Staff Costs** | **5,096,101** | **4,884,839** | [4(c) Other Impairment Losses on Property, Plant and Equipment](index=10&type=section&id=4%28c%29%20Other%20Impairment%20Losses%20on%20Property%2C%20Plant%20and%20Equipment) This section outlines other significant items impacting profit/loss before tax, such as depreciation, gains on asset disposal, and impairment losses Other Items Affecting Profit/Loss Before Tax | | For the Six Months Ended June 30 | | | :--- | :--- | :--- | | | 2025 (USD) | 2024 (USD) | | Depreciation of investment properties and other property, plant and equipment | 120,503 | 124,237 | | Gain on disposal of other property, plant and equipment | (9,170) | (63,433) | | (Reversal of)/provision for write-down of inventories | (994,606) | 652,246 | | Reversal of impairment provision for trade receivables | (191,641) | (345,771) | | Research and development expenses | 823,681 | 728,748 | | Impairment loss on other property, plant and equipment | 125,278 | 282,675 | - Impairment loss on property, plant and equipment of **US$125,278** was recognized in the current period (prior period: US$282,675), primarily due to intense competition in the motorcycle industry and increased manufacturing costs[20](index=20&type=chunk) - Impairment assessment was determined based on the higher of value in use and fair value less costs to sell, using a pre-tax discount rate of **13%**[21](index=21&type=chunk) [5. Income Tax Expense](index=11&type=section&id=5.%20Income%20Tax%20Expense) This section details the Group's income tax expense for the period and applicable tax rates in different jurisdictions Current Period Tax | | For the Six Months Ended June 30 | | | :--- | :--- | :--- | | | 2025 (USD) | 2024 (USD) | | Current provision | 59,835 | 287 | - The Group is not subject to income tax in Hong Kong and the Cayman Islands[22](index=22&type=chunk)[23](index=23&type=chunk) - Vietnam corporate income tax rates vary by business type: **18%** for motorcycle assembly and production, **10%** for engine assembly and production, and **20%** for other businesses[23](index=23&type=chunk) [6. Earnings/(Loss) Per Share](index=11&type=section&id=6.%20Earnings%2F%28Loss%29%20Per%20Share) This section calculates basic earnings/loss per share and explains why diluted earnings/loss per share is identical due to the absence of potential dilutive ordinary shares [6(a) Basic Earnings/(Loss) Per Share](index=11&type=section&id=6%28a%29%20Basic%20Earnings%2F%28Loss%29%20Per%20Share) This section details the calculation of basic earnings or loss per share for the reporting period - For the six months ended June 30, 2025, basic earnings per share was **US$0.00005** (prior period: basic loss per share US$0.00266)[24](index=24&type=chunk) - The calculation is based on profit attributable to equity holders of the Company of **US$42,518** and a weighted average of **907,680,000** ordinary shares outstanding[24](index=24&type=chunk) [6(b) Diluted Earnings/(Loss) Per Share](index=11&type=section&id=6%28b%29%20Diluted%20Earnings%2F%28Loss%29%20Per%20Share) This section explains why diluted earnings or loss per share is identical to basic earnings or loss per share - Diluted earnings/loss per share for the period is the same as basic earnings/loss per share, as there are no potential dilutive ordinary shares[25](index=25&type=chunk) [7. Dividends](index=11&type=section&id=7.%20Dividends) This section confirms the Company's dividend policy and any dividends paid or declared during the reporting period - For the six months ended June 30, 2025, the Company neither paid nor declared any dividends[26](index=26&type=chunk) [8. Other Property, Plant and Equipment](index=12&type=section&id=8.%20Other%20Property%2C%20Plant%20and%20Equipment) This section provides details on the recognition of costs and impairment losses related to other property, plant and equipment - Costs of **US$125,278** for other property, plant and equipment items were recognized in the current period (prior period: US$282,675)[30](index=30&type=chunk) - Impairment loss recognized in the statement of profit or loss was **US$125,278** (prior period: US$282,675)[30](index=30&type=chunk) [9. Trade and Other Receivables and Prepayments](index=12&type=section&id=9.%20Trade%20and%20Other%20Receivables%20and%20Prepayments) This section presents a breakdown of trade and other receivables, prepayments, and their aging analysis Trade and Other Receivables and Prepayments | | 2025 | 2024 | | :--- | :--- | :--- | | | June 30 (USD) | December 31 (USD) | | Trade receivables | 9,396,308 | 9,234,648 | | Non-trade receivables | 9,948,033 | 7,336,432 | | Prepayments | 494,964 | 487,591 | | Amounts due from related parties - trade | 1,409,234 | 1,827,436 | | Amounts due from related parties - non-trade | - | 427 | | **Total** | **21,248,539** | **18,886,534** | Aging Analysis of Trade Receivables | | 2025 | 2024 | | :--- | :--- | :--- | | | June 30 (USD) | December 31 (USD) | | Within 3 months | 10,193,165 | 8,860,451 | | Over 3 months but within 1 year | 612,377 | 2,116,279 | | Over 1 year but within 2 years | - | 85,354 | | **Total** | **10,805,542** | **11,062,084** | [10. Trade and Other Payables](index=13&type=section&id=10.%20Trade%20and%20Other%20Payables) This section details the Group's trade and other payables, including an aging analysis of trade payables Trade and Other Payables | | 2025 | 2024 | | :--- | :--- | :--- | | | June 30 (USD) | December 31 (USD) | | Trade payables | 3,726,062 | 4,340,713 | | Other payables and accrued operating expenses | 2,891,912 | 3,277,014 | | Contract liabilities - payments received in advance of performance | 1,088,497 | 1,191,403 | | Provisions | 1,643,301 | 1,705,450 | | Amounts due to related parties - trade | 13,563,198 | 11,696,403 | | Amounts due to related parties - non-trade | 1,661 | 9,463 | | **Total** | **22,914,631** | **22,220,446** | Aging Analysis of Trade Payables | | 2025 | 2024 | | :--- | :--- | :--- | | | June 30 (USD) | December 31 (USD) | | Within 3 months | 17,273,568 | 15,292,974 | | Over 3 months but within 1 year | 12,661 | 736,989 | | Over 1 year but within 5 years | 3,031 | 7,153 | | **Total** | **17,289,260** | **16,037,116** | [Commitments](index=13&type=section&id=Commitments) This section confirms the absence of any significant capital commitments or contingent liabilities for the Group - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities[52](index=52&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the Group's H1 2025 operating environment, business performance, financial position, and outlook, highlighting revenue growth and improved profitability despite global challenges [Company Overview](index=14&type=section&id=Company%20Overview) This section provides a brief introduction to the Group's core business as a leading motorcycle manufacturer in Vietnam - The Group is one of Vietnam's leading manufacturers of scooters and national motorcycles, with an annual production capacity of **200,000** units, selling under the SYM brand, and also producing motorcycle engines and parts[33](index=33&type=chunk) [Operating Environment](index=14&type=section&id=Operating%20Environment) This section discusses the global and local economic conditions impacting the Group's operations, including trade policies and market growth - Global trade and political landscapes continue to adjust, with US tariffs increasing corporate operating costs and accelerating supply chain restructuring[34](index=34&type=chunk) - Vietnam's economy showed steady growth, with **GDP increasing by 7.52%** in the first half, and the total motorcycle market sales growing by **6.4%** year-on-year[34](index=34&type=chunk) [Business Review](index=14&type=section&id=Business%20Review) This section reviews the Group's sales performance in domestic and export markets, highlighting key growth drivers - Total sales volume in Vietnam was approximately **22.4 thousand units**, a year-on-year increase of **4.7%**, primarily due to the launch of new models, safe driving education, and online promotions[35](index=35&type=chunk) - Total export sales volume was approximately **18.4 thousand units**, a significant year-on-year increase of **65.8%**, mainly driven by strong sales momentum in the Malaysian market (growth of **34.3%**)[35](index=35&type=chunk)[36](index=36&type=chunk) - Initial results were achieved in the European market, with significant sales volume growth recorded in the first half[37](index=37&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) The Group's H1 revenue grew **42.1%**, achieving profitability with improved gross margin, driven by cost control and sales volume, though net finance expenses rose due to exchange losses [Revenue](index=15&type=section&id=Revenue) This section highlights the significant increase in revenue, primarily driven by new motorcycle models - Revenue increased by **42.1%** to **US$46.6 million** (prior period: US$32.8 million), primarily benefiting from the launch of new motorcycle models[39](index=39&type=chunk) [Cost of Sales](index=15&type=section&id=Cost%20of%20Sales) This section analyzes the changes in cost of sales and its proportion to total revenue - Cost of sales increased by **37.3%** to **US$41.2 million**, primarily attributable to the increase in overall sales volume[40](index=40&type=chunk) - The percentage of cost of sales to total revenue decreased from **91.4%** to **88.4%**, mainly due to increased sales scale and enhanced bargaining power from bulk purchases[40](index=40&type=chunk) [Gross Profit and Gross Profit Margin](index=15&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) This section discusses the increase in gross profit and gross profit margin, driven by higher sales volume - Gross profit increased to **US$5.4 million** (prior period: US$2.8 million), and gross profit margin improved to **11.6%** (prior period: 8.6%), primarily due to increased sales volume[41](index=41&type=chunk) [Distribution Expenses](index=16&type=section&id=Distribution%20Expenses) This section explains the increase in distribution expenses, mainly due to higher export sales - Distribution expenses increased by **2.6%** to **US$1.94 million**, primarily due to higher export sales volume leading to increased transportation and packaging costs[42](index=42&type=chunk) [Administrative and Other Operating Expenses](index=16&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) This section analyzes the reduction in administrative and other operating expenses, indicating improved operational efficiency - Administrative and other operating expenses decreased by **1.3%** to **US$3.07 million**, representing **6.6%** of total revenue, reflecting improved operational efficiency[43](index=43&type=chunk) [Results from Operations](index=16&type=section&id=Results%20from%20Operations) This section reports the Group's operating profit for the period, a significant turnaround from a prior period loss - The Group recorded an operating profit of **US$0.9 million** for the current period (prior period: operating loss of US$2.1 million)[44](index=44&type=chunk) [Net Finance Expenses/Income](index=16&type=section&id=Net%20Finance%20Expenses%2FIncome) This section details the shift from net finance income to net finance expenses, primarily due to reduced bank interest income and increased exchange losses - A shift from net finance income of **US$0.03 million** in the prior period to net finance expenses of **US$0.70 million** in the current period, mainly due to decreased bank interest income and increased exchange losses[45](index=45&type=chunk) [Impairment Loss on Other Property, Plant and Equipment](index=16&type=section&id=Impairment%20Loss%20on%20Other%20Property%2C%20Plant%20and%20Equipment) This section explains the impairment loss recognized on property, plant and equipment due to industry competition and rising manufacturing costs - An impairment loss of approximately **US$0.1 million** was recognized, reflecting a re-evaluation of the value of related assets due to industry competition and rising manufacturing costs[46](index=46&type=chunk) [Profit/(Loss) for the Period and Net Profit/(Loss) Margin](index=16&type=section&id=Profit%2F%28Loss%29%20for%20the%20Period%20and%20Net%20Profit%2F%28Loss%29%20Margin) This section reports the Group's net profit for the period, marking a significant turnaround from a net loss in the prior period - The Group recorded a net profit of **US$0.04 million** for the current period (prior period: net loss of US$2.42 million), with the net profit margin turning from **-7.4%** to **0.1%**[47](index=47&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=Liquidity%20and%20Financial%20Resources) This section provides an overview of the Group's liquidity position, including net current assets, interest-bearing borrowings, gearing ratio, and cash balances - Net current assets were **US$38.8 million** (December 31, 2024: US$39.3 million)[48](index=48&type=chunk) - Interest-bearing borrowings repayable within one year amounted to **US$43.3 million** (December 31, 2024: US$33.8 million)[48](index=48&type=chunk) - The gearing ratio was **97.5%** (December 31, 2024: 75.2%), calculated as total bank loans divided by total shareholders' equity[48](index=48&type=chunk) - Total cash and bank balances were **US$58.6 million** (December 31, 2024: US$54.4 million), primarily denominated in Vietnamese Dong and US Dollars[49](index=49&type=chunk) - Pledged bank fixed deposits of **US$19,582,961** served as security for bank facilities granted to the Group[58](index=58&type=chunk) [Exchange Rate Fluctuation Risk](index=17&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) This section addresses the Group's exposure to exchange rate fluctuations and its approach to managing this risk - The Group's primary trading currencies are Vietnamese Dong and US Dollars, and it will closely monitor exchange rate trends and enhance risk awareness[50](index=50&type=chunk) - As of June 30, 2025, the Group did not use any financial instruments to hedge its foreign exchange risks[50](index=50&type=chunk) [Human Resources and Remuneration Policy](index=17&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) This section provides information on the Group's employee count and total staff costs for the reporting period - As of June 30, 2025, the Group employed a total of **1,021** employees (prior period: 1,003 employees)[51](index=51&type=chunk) - Total salaries and related costs for the six months ended June 30, 2025, were approximately **US$5.1 million** (prior period: approximately US$4.9 million)[51](index=51&type=chunk) [Capital Commitments and Contingent Liabilities](index=17&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) This section confirms the absence of any significant capital commitments or contingent liabilities for the Group - As of June 30, 2025, the Group had no significant capital commitments or contingent liabilities[52](index=52&type=chunk) [Significant Acquisitions or Disposals of Subsidiaries or Associates](index=17&type=section&id=Significant%20Acquisitions%20or%20Disposals%20of%20Subsidiaries%20or%20Associates) This section confirms no significant acquisitions or disposals of subsidiaries or associates during the reporting period - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries or associates[53](index=53&type=chunk) [Material Investments Held](index=17&type=section&id=Material%20Investments%20Held) This section confirms the absence of any material investments held by the Group during the reporting period - For the six months ended June 30, 2025, the Group did not hold any material investments[54](index=54&type=chunk) [Future Plans for Material Investments or Capital Assets](index=17&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) This section outlines the Group's future plans regarding material investments or capital asset acquisitions - As of June 30, 2025, other than those disclosed in this announcement, the Group had no other specific plans for material investments or acquisitions of capital assets[55](index=55&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=17&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) This section reports on any transactions involving the Company's listed securities during the period - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[56](index=56&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[57](index=57&type=chunk) [Changes After December 31, 2024](index=18&type=section&id=Changes%20After%20December%2031%2C%202024) This section confirms the absence of significant changes in the Group's financial position since December 31, 2024 - Except as otherwise disclosed in this announcement, there have been no significant changes in the Group's financial position since December 31, 2024[59](index=59&type=chunk) [Outlook](index=18&type=section&id=Outlook) This section outlines the Group's strategic focus and plans for navigating future economic challenges and expanding market presence - Looking ahead to the second half of 2025, as the global economy remains in a phase of inflation adjustment and monetary and trade policy rebalancing, the Group will continue to prudently respond to international market fluctuations and flexibly adjust its product strategy and regional sales layout[60](index=60&type=chunk) - For domestic sales, the Group will precisely target customer segments and enhance brand engagement through diversified marketing channels; for export sales, it will continue to strengthen global overseas market promotion, enhance brand loyalty, and actively explore different overseas markets[60](index=60&type=chunk) - The Group will continue to adhere to its business philosophy of focusing on core business, prioritizing quality, and ensuring customer satisfaction, with product innovation as a key strategy, continuously strengthening its product design and core technology development capabilities[60](index=60&type=chunk) [Other Information](index=19&type=section&id=Other%20Information) This section provides information on IPO proceeds, corporate governance, directors' securities dealing, public float, post-reporting events, interim results review, dividend policy, and report publication [Application of Proceeds from Initial Public Offering](index=19&type=section&id=Application%20of%20Proceeds%20from%20Initial%20Public%20Offering) This section details the utilization of net proceeds from the IPO and the remaining unutilized balance - The net proceeds from the initial public offering were approximately **US$76.7 million**, with an unutilized balance of **US$17.0 million** as of June 30, 2025[61](index=61&type=chunk)[62](index=62&type=chunk) Use of Proceeds from Initial Public Offering | | Net Proceeds from IPO in Prospectus and Announcement (Approx. US$ Million) | Unutilized Balance as of January 1, 2025 (Approx. US$ Million) | Amount Utilized During the Six Months Ended June 30, 2025 (Approx. US$ Million) | Unutilized Balance as of June 30, 2025 (Approx. US$ Million) | | :--- | :--- | :--- | :--- | :--- | | Construction and establishment of R&D center in Vietnam | 11.7 | - | - | - | | Expansion of distribution channels in Vietnam | 19.0 | - | - | - | | Acquisitions of assets or businesses | 9.0 | - | - | - | | General working capital | 2.7 | - | - | - | | Development of production site and relocation of existing production facilities | 15.0 | 2.0 | 0.1 | 1.9 | | Land development | 19.3 | 15.1 | - | 15.1 | | **Total** | **76.7** | **17.1** | **0.1** | **17.0** | - The unutilized net proceeds are expected to be fully utilized by or before **2030**[63](index=63&type=chunk) [Corporate Governance Practices](index=20&type=section&id=Corporate%20Governance%20Practices) This section confirms the Company's adherence to corporate governance code during the reporting period - The Company has complied with the Corporate Governance Code as set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[64](index=64&type=chunk) [Compliance with the Standard Code for Securities Transactions by Directors](index=20&type=section&id=Compliance%20with%20the%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) This section confirms directors' compliance with the standard code for securities transactions - The Company's directors have confirmed compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules during the current period[65](index=65&type=chunk) [Sufficiency of Public Float](index=20&type=section&id=Sufficiency%20of%20Public%20Float) This section confirms the Company maintained sufficient public float as required by listing rules - The Company has maintained a sufficient public float as required by the Listing Rules throughout the current period and up to the date of this announcement[66](index=66&type=chunk) [Material Events After Reporting Period](index=20&type=section&id=Material%20Events%20After%20Reporting%20Period) This section confirms no material events occurred after the reporting period that could impact the Group - No material events that could affect the Group have occurred after June 30, 2025, and up to the date of this announcement[67](index=67&type=chunk) [Review of Interim Results](index=20&type=section&id=Review%20of%20Interim%20Results) This section confirms the review of unaudited interim results by the audit committee and external auditors - The unaudited interim results have been reviewed by the Company's audit committee and by the Company's auditor, KPMG, in accordance with Hong Kong Standard on Review Engagements 2410[68](index=68&type=chunk) [Interim Dividend](index=20&type=section&id=Interim%20Dividend) This section reiterates the Board's decision regarding interim dividend payment - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[69](index=69&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=20&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This section provides information on where the interim results announcement and report are published - The interim results announcement has been published on the HKEXnews website and the Company's website, and the interim report will be published on the aforementioned websites in due course[70](index=70&type=chunk) [Acknowledgement](index=21&type=section&id=Acknowledgement) This section expresses gratitude to stakeholders for their support - The Group extends its sincere gratitude to the Company's shareholders, suppliers, customers, and all employees[71](index=71&type=chunk) [Board of Directors](index=21&type=section&id=Board%20of%20Directors) This section lists the composition of the Board of Directors - The Board of Directors comprises three executive directors, three non-executive directors, and three independent non-executive directors[72](index=72&type=chunk)

截至二零二五年六月三十日止六個月 中期業績公告 香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Q TECHNOLOGY (GROUP) COMPANY LIMITED 丘鈦科技(集團)有限公 司 （於開曼群島註冊成立的有限公司） （股份代號：1478） 業績摘要 1 • 本集團截至二零二五年六月三十日止六個月（「本期間」）的未經審核收入 約為人民幣8,831,512,000元，較二零二四年六月三十日止六個月（「同期」） 增長約15.1%。收入增長主要是由於：於本期間，本集團應用於車載和物 聯網(IoT)領域的攝像頭模組的銷售數量同比增長約47.9%，推動攝像頭模 組產品的綜合平均單價較同期增長約27.2%，及指紋識別模組產品的銷售 數量較同期增長約59.7%。 • 本期間本集團的毛利約為人民幣654,051,000元，毛利率約為7.4%，較同 期的約5.2%提升約2.2個百分點。毛利率提升主要是由於：(i)於本期間， 全球智能手機銷售 ...

[Financial Statements](index=2&type=section&id=Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the first half of 2025, the Group's revenue increased by 5.0% year-on-year to RMB 12.67 billion, but gross profit decreased by 13.4% due to faster growth in cost of sales, leading to a 19.3% decline in profit for the period and a 12.8% decrease in profit attributable to owners of the parent 2025 H1 Key Profit or Loss Data | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 12,665,749 | 12,060,957 | +5.0% | | Gross Profit | 2,040,184 | 2,355,720 | -13.4% | | Profit Before Tax | 918,518 | 1,122,610 | -18.2% | | Profit for the Period | 757,116 | 938,486 | -19.3% | | Profit Attributable to Owners of the Parent | 599,295 | 686,996 | -12.8% | | Basic Earnings Per Share (RMB cents) | 51.50 | 56.4 | -8.7% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased by 10.8% from the end of 2024 to RMB 36.04 billion, primarily driven by an increase in property, plant, and equipment, while total liabilities increased by 14.5% to RMB 22.90 billion, mainly due to an increase in non-current interest-bearing borrowings, resulting in net assets growing by 4.9% to RMB 13.14 billion Key Balance Sheet Data as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Period Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 28,256,258 | 26,217,520 | +7.8% | | Total Current Assets | 7,785,057 | 6,300,724 | +23.6% | | **Total Assets** | **36,041,315** | **32,518,244** | **+10.8%** | | Total Current Liabilities | 11,126,855 | 11,367,961 | -2.1% | | Total Non-current Liabilities | 11,772,334 | 8,628,495 | +36.4% | | **Total Liabilities** | **22,899,189** | **19,996,456** | **+14.5%** | | **Net Assets** | **13,142,126** | **12,521,788** | **+4.9%** | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) During the period, total equity increased from RMB 12.52 billion at the beginning of the year to RMB 13.14 billion, primarily driven by profit for the period of RMB 757 million, partially offset by dividends paid to non-controlling shareholders (RMB 122 million) and share repurchases (RMB 4.84 million) - Total equity increased by approximately **RMB 620 million** during the period, primarily contributed by current period profit[7](index=7&type=chunk) - The company conducted share repurchases, costing approximately **RMB 4.84 million**[7](index=7&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [Product Performance Contribution](index=7&type=section&id=3.%20Product%20performance%20contribution) By product, the fertilizer segment (urea and compound fertilizer) contributed the majority of revenue and profit, with urea remaining the largest profit source despite a significant year-on-year decline in segment profit, while in the chemical segment, methanol revenue grew significantly, and other products performed steadily or slightly declined H1 2025 Performance by Product Segment | Product Segment | Revenue (RMB thousands) | Segment Profit (RMB thousands) | | :--- | :--- | :--- | | Urea | 3,225,357 | 662,636 | | Compound Fertilizer | 3,566,305 | 563,356 | | Methanol | 1,641,974 | 138,724 | | Liquid Ammonia | 533,249 | 69,437 | | Melamine | 377,812 | 116,775 | | DMF | 587,071 | 108,294 | | Others | 2,733,981 | 380,962 | | **Total** | **12,665,749** | **2,040,184** | - Compared to the same period last year, urea segment profit significantly decreased from **RMB 1.18 billion** to **RMB 660 million**, which is the primary reason for the Group's overall profit decline[16](index=16&type=chunk)[19](index=19&type=chunk) [Notes on Key Financial Items](index=9&type=section&id=Notes%20on%20Key%20Financial%20Items) This section details the composition and changes of key financial items including revenue, expenses, dividends, borrowings, and gearing ratio, noting that finance costs decreased year-on-year, total interest-bearing borrowings increased but with optimized structure, and the gearing ratio slightly rose to 63.5% [Dividends](index=12&type=section&id=8.%20Dividends) During the period, the company declared a final dividend for the year ended December 31, 2024, totaling RMB 334 million, with no interim dividend proposed or declared for the six months ended June 30, 2025 - Final dividend for 2024 of **RMB 333,643,000** has been distributed[28](index=28&type=chunk) - No interim dividend proposed for 2025[28](index=28&type=chunk) [Interest-bearing Bank and Other Borrowings](index=17&type=section&id=17.%20Interest-bearing%20bank%20and%20other%20borrowings) As of the end of the period, total interest-bearing borrowings were RMB 15.53 billion, a significant increase from RMB 12.86 billion at the beginning of the period, with the Group actively optimizing its debt structure by improving the long-term to short-term borrowing ratio from 6:4 to 7:3, increasing the proportion of medium and long-term loans to reduce short-term repayment pressure Interest-bearing Borrowings Structure | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Borrowings | 4,858,594 | 5,267,226 | | Non-current Borrowings | 10,673,109 | 7,588,086 | | **Total** | **15,531,703** | **12,855,312** | - The Group optimized its debt structure by increasing medium and long-term project loans, adjusting the long-term to short-term borrowing ratio from **6:4** to **7:3**, to match project construction cycles and alleviate short-term funding pressure[44](index=44&type=chunk) [Gearing Ratio](index=19&type=section&id=18.%20Gearing%20ratio) As of the end of the first half of 2025, the Group's gearing ratio was 63.5%, an increase of 2 percentage points from 61.5% at the beginning of the year, primarily due to new medium and long-term loans of approximately RMB 2.67 billion to meet project construction needs - Gearing ratio (total liabilities/total assets) increased from **61.5%** to **63.5%**[45](index=45&type=chunk) - The increase in gearing ratio was mainly due to new medium and long-term loans to support project construction; the company expects cash flow to improve and the gearing ratio to stabilize after the Jiangxi Phase II project commences operation[45](index=45&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=20&type=section&id=Business%20Review) In the first half of 2025, despite a decline in gross profit due to falling product prices, the Group achieved a 5% year-on-year revenue increase through new capacity deployment and market expansion, with Q2 performance significantly rebounding quarter-on-quarter, showing a positive trend with gross profit up 44% and net profit up 104% - H1 revenue increased by **5%** year-on-year to approximately **RMB 12.67 billion**, but net profit attributable to owners of the parent decreased by **13%** year-on-year (down **9%** after non-recurring items)[46](index=46&type=chunk) - The decline in performance was mainly due to product price decreases exceeding cost reductions, with urea gross profit decreasing by nearly **44%** year-on-year, being the primary drag[46](index=46&type=chunk) - Q2 performance significantly improved quarter-on-quarter, with gross profit increasing by **44%** and net profit growing by **104%**, driven by both selling prices and sales volume[47](index=47&type=chunk) [Segment Performance Analysis](index=21&type=section&id=Segment%20Performance%20Analysis) In the fertilizer segment, urea revenue decreased by 16% due to price declines, but sales volume increased by 4%, while compound fertilizer revenue grew by 5% benefiting from new capacity; in the chemical segment, methanol performed strongly with a 27% revenue increase, and melamine and DMF achieved sales volume growth by expanding markets, partially offsetting the impact of price declines [Fertilizer Segment](index=21&type=section&id=Fertilizer%20Segment) Urea business revenue declined by 16% due to a 19% year-on-year decrease in selling price, with gross margin falling to 21%, though the company reduced production costs by 7% through technical optimization and procurement strategies; compound fertilizer business revenue grew by 5% driven by an 8% increase in sales volume due to the Guangxi base commissioning, but rising raw material costs reduced gross margin to 16% - **Urea**: Revenue decreased by **16%** year-on-year due to a **19%** decline in average selling price. The company actively expanded overseas markets, driving an increase in export volume, supporting a **4%** year-on-year growth in total sales volume. Gross margin decreased from **31%** to **21%**[48](index=48&type=chunk) - **Compound Fertilizer**: Revenue increased by **5%** year-on-year due to an **8%** increase in sales volume. The Guangxi base commissioning expanded coverage to the South China market, with high-efficiency fertilizer sales volume increasing by **11%** year-on-year. Gross margin decreased from **18%** to **16%** due to rising raw material costs[49](index=49&type=chunk) [Chemical Segment](index=22&type=section&id=Chemical%20Segment) Methanol benefited from market improvement and increased foreign trade volume, with sales volume up 28% and revenue up 27%; liquid ammonia sales and revenue both decreased due to the company's 'prioritize methanol, reduce ammonia' strategy; melamine and DMF, despite falling prices, achieved sales volume growth of 5% and 9% respectively by expanding overseas markets and collaborating with leading enterprises, and improved gross margins through cost control - **Methanol**: Sales volume increased by **28%** year-on-year, driving a **27%** increase in revenue, with gross margin stable at **8%**[50](index=50&type=chunk)[51](index=51&type=chunk) - **Liquid Ammonia**: Revenue decreased by **20%** year-on-year due to the company's 'prioritize methanol, reduce ammonia' strategy leading to reduced self-production. Gross margin benefited from cost reduction, increasing from **11%** to **13%**[52](index=52&type=chunk) - **Melamine**: Revenue decreased by **5%** year-on-year due to a **9%** decline in selling price, but sales volume increased by **5%**. Through expanding into the EU market and cost control, gross margin increased from **30%** to **31%**[53](index=53&type=chunk) - **DMF**: Revenue slightly decreased by **1%** year-on-year due to a **9%** decline in selling price, but sales volume increased by **9%**. Through technical transformation to reduce costs, gross margin significantly increased from **13%** to **18%**[54](index=54&type=chunk) [Analysis of Expenses and Other Income](index=24&type=section&id=Analysis%20of%20Expenses%20and%20Other%20Income) During the period, net other income significantly increased by 79% year-on-year, mainly from government grants and byproduct sales, while selling expenses increased by 4% due to expanded sales volume, general and administrative expenses (excluding share-based payment expenses) actually decreased by 5% year-on-year, and finance costs significantly decreased by 14% due to optimized debt structure and lower interest rates - **Other Income, Net**: Increased by **79%** year-on-year to **RMB 200 million**, mainly due to increased government grants and net profit from byproduct sales[55](index=55&type=chunk) - **Selling and Distribution Expenses**: Increased by **4%** year-on-year, mainly due to increased handling and freight inspection service fees resulting from higher sales volume and overseas market development[56](index=56&type=chunk) - **General and Administrative Expenses**: Slightly decreased by **0.3%** year-on-year. Excluding **RMB 35 million** in share-based payment expenses, actual administrative expenses decreased by **5%** year-on-year, benefiting from organizational streamlining and optimized equipment maintenance[57](index=57&type=chunk) - **Finance Costs**: Decreased by **14%** year-on-year to **RMB 230 million**, mainly due to the Group optimizing its debt structure and replacing high-interest loans, leading to a **0.8 percentage point** decrease in average loan interest rate[59](index=59&type=chunk) [Outlook](index=26&type=section&id=Outlook) Looking ahead to the second half, the company expects urea prices to remain stable and the chemical industry's prosperity to improve, with the Group adhering to its strategy of 'fertilizer as foundation, high-quality development,' focusing on high-efficiency fertilizers and cost advantages, as several ongoing projects are scheduled to commence operation, with full capacity release expected by 2027, bringing long-term value growth to the Group - The company's strategic core is to be an 'advocate for high-efficiency fertilizers in China,' focusing on R&D of slow-release and controlled-release technologies, and providing full-chain agricultural services with humic acid as the core product[62](index=62&type=chunk)[63](index=63&type=chunk) - Construction projects are progressing steadily: Jiangxi Base Phase II project is expected to commence operation in Q3 this year, and Xinxiang Base Chemical New Materials project in Q1 next year[63](index=63&type=chunk) - By **2027**, all of the Group's ongoing capacities are expected to be fully released, at which point cash flow will significantly exceed capital expenditures, forming a positive cycle of 'investment, output, and development'[63](index=63&type=chunk) [Risk Management and Other Disclosures](index=27&type=section&id=Risk%20Management%20and%20Other%20Disclosures) [Operational and Financial Risks](index=27&type=section&id=Operational%20and%20Financial%20Risks) The Group faces key risks including market risks (product selling price and raw material cost fluctuations), interest rate risk, liquidity risk, and gearing ratio risk, which the company manages by monitoring cash positions, adjusting the long-term to short-term loan structure, and adapting its asset-liability structure based on economic conditions - Key market risks include fluctuations in average product selling prices, raw material (primarily coal) costs, and interest rate volatility[64](index=64&type=chunk) - Liquidity risk management: The Group manages liquidity risk by adjusting its loan structure; as of the end of the period, the proportion of debt due within one year decreased from **40.97%** to **31.28%**[69](index=69&type=chunk) - Gearing ratio risk: The Group monitors its gearing ratio, which was **63.5%** at the end of the period[70](index=70&type=chunk) [Corporate Governance and Other Information](index=29&type=section&id=Corporate%20Governance%20and%20Other%20Information) The company confirmed compliance with all corporate governance code provisions during the reporting period, repurchasing 1,006,000 shares for approximately HKD 5.32 million to demonstrate confidence in business prospects and optimize capital structure, with the Group having 11,945 employees as of the period end - The company repurchased **1,006,000** shares on the Stock Exchange during the period for a total consideration of approximately **HKD 5.318 million**, with repurchased shares intended for employee share incentive schemes and other purposes[76](index=76&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - As of June 30, 2025, the Group had **11,945** employees, a slight increase from **11,787** at the end of 2024[80](index=80&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。 SHENG TANG HOLDINGS LIMITED 聖 唐 控 股 有 限 公 司 (於開曼群島註冊成立之有限公司) (股份代號: 8305) 截至二零二五年六月三十日止六個月之 中期業績公告 聖唐控股有限公司（「本公司」）董事（「董事」）會（「董事會」）宣佈本公司及其 附屬公司截至二零二五年六月三十日止六個月的未經審核簡明綜合業績。 本公告 列載本公 司二零二五 年度中期 業績報告（「中期業 績報告」）全文，符 合聯交所GEM證券上市規則（「GEM上市規則」）中有關中期業績初步公告附 載資料的相關要求。載有GEM上市規則規定資料的中期業績報告的印刷版 本，將於適當時候以GEM上市規則所規定方式寄發予本公司股東。 承董事會命 聖唐控股有限公司 主席 ...

[Corporation Information](index=3&type=section&id=Corporation%20Information) [Definitions](index=7&type=section&id=Definitions) [Financial Highlights](index=13&type=section&id=Financial%20Highlights) The company reported a 9.9% year-on-year revenue decrease to RMB 106.9 million, yet gross loss narrowed by 22.5% and loss attributable to owners decreased by 28.7% to RMB 332.7 million, with operating cash flow turning positive and cash and cash equivalents rising 19.0% to RMB 1.0511 billion Financial Highlights | Indicator | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Revenue** | 106,948 | 118,736 | | **Gross Profit** | (13,455) | (17,369) | | **Loss before income tax** | (352,408) | (489,819) | | **Loss for the period** | (352,201) | (487,929) | | **Loss per share** | RMB (3.86) | RMB (5.74) | | | **As of June 30, 2025 (RMB thousands)** | **As of December 31, 2024 (RMB thousands)** | | **Total Assets** | 4,610,107 | 4,692,131 | | **Total Liabilities** | 2,999,300 | 2,753,042 | | **Equity attributable to owners of the Company** | 1,725,155 | 2,036,150 | | **Cash and cash equivalents** | 1,051,112 | 883,356 | - Total revenue decreased by approximately **9.9%** year-on-year, with hydrogen fuel cell system sales revenue increasing by **141.8%** and overseas revenue growing by **360.3%**[23](index=23&type=chunk) - Gross loss narrowed by approximately **22.5%** year-on-year, and loss attributable to owners of the company decreased by approximately **28.7%** year-on-year[23](index=23&type=chunk) - Operating cash flow turned positive, achieving a net inflow of approximately **RMB 95.1 million**. Cash and cash equivalents at period-end increased by approximately **19.0%** compared to the beginning of the period[23](index=23&type=chunk) - The Board of Directors recommended no interim dividend for the six months ended June 30, 2025[23](index=23&type=chunk)[112](index=112&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Business and Industry Review](index=15&type=section&id=Business%2FIndustry%20Review) In H1 2025, the company capitalized on improving Chinese hydrogen energy policies, advancing its Sirius series fuel cell system to mass production, expanding heavy-duty truck applications and overseas markets, and making key progress in green hydrogen ecosystem projects - China's hydrogen energy industry policies continued to improve, with the National Energy Administration promoting the establishment of hydrogen energy management mechanisms, expanding demonstration city clusters, and multiple provinces and cities introducing highway toll exemptions for hydrogen-powered vehicles, enhancing the economic viability of hydrogen heavy-duty trucks[24](index=24&type=chunk)[25](index=25&type=chunk) - The company's independently developed new generation fuel cell system product, the Sirius series, has entered mass production, with both raw material and manufacturing costs further reduced compared to the previous generation[28](index=28&type=chunk)[30](index=30&type=chunk) - The company continued to expand application scenarios, promoting the large-scale adoption of medium and long-haul hydrogen heavy-duty trucks, and participated in the Hong Kong hydrogen fuel cell tourist bus cross-border passenger transport project, which has received in-principle approval[32](index=32&type=chunk)[33](index=33&type=chunk) - The two green hydrogen production, storage, transportation, and utilization integrated demonstration projects led by the company in Ningxia were successfully selected for the second batch of the National Development and Reform Commission's 'Green and Low-Carbon Advanced Technology Demonstration Project List'[35](index=35&type=chunk)[36](index=36&type=chunk) - In June 2025, the company entered into domestic share subscription agreements with Qiyuan Fund and Cangnan Shanhaizerun to enhance competitiveness, expand into the Northwest market, and develop green hydrogen resources in the eastern coastal areas[38](index=38&type=chunk)[39](index=39&type=chunk) [Outlook and Prospect](index=20&type=section&id=Outlook%2FProspect) The company plans to prioritize market-driven R&D, deepen its full hydrogen energy value chain, expand commercial applications through ecosystem building, particularly in hydrogen heavy-duty trucks, and strengthen its overseas market presence and participation in international green hydrogen projects - The company will continue to invest in R&D innovation guided by market demand, addressing stringent requirements for reliability, durability, cost, and efficiency in commercial scenarios, and expanding fuel cell applications in diverse fields and developing hydrogen production technologies[42](index=42&type=chunk)[44](index=44&type=chunk) - The company plans to consolidate the application advantages of hydrogen heavy-duty trucks in low-cost hydrogen markets and specific industrial sectors, and accelerate large-scale adoption in conjunction with policies such as toll exemptions[45](index=45&type=chunk)[47](index=47&type=chunk) - The company will strengthen overseas market expansion, focusing on key 'Belt and Road' markets such as Southeast Asia, Central Asia, the Middle East, and North Africa, leveraging the high gross profit advantage of overseas orders to improve overall performance[46](index=46&type=chunk)[48](index=48&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) Revenue decreased by 9.9% to RMB 106.9 million, primarily due to lower component sales, yet fuel cell system sales grew 141.8%, leading to a narrowed gross loss of RMB 13.5 million and a 28.7% reduction in loss attributable to owners to RMB 332.7 million, supported by reduced share-based payment expenses and a strong cash position of RMB 1.0511 billion [Revenue](index=22&type=section&id=Revenue) Total revenue for the period decreased by 9.9% to RMB 106.9 million, mainly due to reduced component sales, but hydrogen fuel cell system sales significantly increased by 141.8% to RMB 76.8 million, and overseas revenue grew by 360.3% to RMB 11 million, indicating an optimized revenue structure Revenue Breakdown by Product Type (RMB thousands) | Goods or Service Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Hydrogen fuel cell systems | 76,827 | 31,769 | | Components | 20,329 | 82,382 | | Hydrogen energy equipment and related components | 705 | – | | Hydrogen fuel cell engineering development services | 6,131 | 966 | | Others | 2,956 | 3,619 | | **Total** | **106,948** | **118,736** | - Revenue from overseas regions significantly increased by **360.3%** from RMB 2.4 million in the same period last year to **RMB 11 million**, primarily due to the company's continuous expansion in European, North American, and Southeast Asian markets and the recognition of its product technology by overseas customers[55](index=55&type=chunk)[59](index=59&type=chunk) [Cost of Sales, Gross Profit and Gross Profit Margin](index=23&type=section&id=Cost%20of%20Sales%2C%20Gross%20Profit%20and%20Gross%20Profit%20Margin) Cost of sales decreased by 11.5% to RMB 120.4 million, leading to a narrowed gross loss from RMB 17.4 million to RMB 13.5 million and an improved gross margin from -14.6% to -12.6%, primarily driven by an optimized sales mix towards more profitable fuel cell systems - Gross profit improved from **RMB -17.4 million** in the same period last year to **RMB -13.5 million**, with gross margin increasing from **-14.6%** to **-12.6%**[58](index=58&type=chunk)[61](index=61&type=chunk) - The improvement in gross margin was primarily due to optimized sales structure, with an increased proportion of higher-profitability fuel cell system sales[56](index=56&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk) [Selling, Administrative, Research and Development and Other Expenses](index=24&type=section&id=Selling%2C%20Administrative%2C%20Research%20and%20Development%20and%20Other%20Expenses) Selling and marketing expenses slightly decreased to RMB 50.7 million, while administrative expenses significantly dropped from RMB 243.8 million to RMB 116.7 million and R&D expenses decreased from RMB 112.5 million to RMB 60.6 million, primarily due to reduced share-based payment expenses and enhanced operational efficiency - Administrative expenses significantly decreased year-on-year from **RMB 243.8 million** to **RMB 116.7 million**, primarily due to reduced share-based payment expenses. Excluding this impact, administrative expenses still decreased, mainly due to a reduction in administrative personnel and cost control[66](index=66&type=chunk)[68](index=68&type=chunk) - R&D expenses decreased year-on-year from **RMB 112.5 million** to **RMB 60.6 million**. Excluding share-based payment expenses, R&D expenses decreased from **RMB 74 million** to **RMB 56.7 million**, primarily due to the company's continued focus on streamlining product series and improving the efficiency of R&D resource allocation[69](index=69&type=chunk)[73](index=73&type=chunk) - Net impairment losses on financial assets and contract assets increased from **RMB 45.9 million** to **RMB 83.3 million**, mainly due to increased provision for expected credit losses on trade receivables[70](index=70&type=chunk)[74](index=74&type=chunk) [Loss Attributable to Owners of the Company and Non-IFRS Measure](index=26&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company%20and%20Non-IFRS%20Measure) Loss attributable to owners of the company narrowed by 28.7% to RMB 332.7 million, down from RMB 466.4 million, driven by improved gross profit and expense control, while the non-IFRS adjusted net loss was RMB 331.9 million compared to RMB 318.1 million in the prior year Reconciliation of Adjusted Net Loss (Non-IFRS Measure) (RMB thousands) | | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Loss for the period** | **(352,201)** | **(487,929)** | | **Add back adjustments:** | | | | Share-based payments | 20,346 | 160,650 | | Global offering related listing expenses | – | 9,181 | | **Adjusted net loss** | **(331,855)** | **(318,098)** | [Liquidity, Financial and Capital Resources](index=27&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) As of June 30, 2025, cash and cash equivalents increased by 19.0% to RMB 1.0511 billion, with total borrowings at RMB 1.6756 billion (29.6% non-current), while the current ratio decreased from 1.7 to 1.4 and the gearing ratio slightly rose from 0.46 to 0.52, maintaining relative stability - As of June 30, 2025, the Group's cash and cash equivalents were approximately **RMB 1.0511 billion**, an increase of approximately **19.0%** from **RMB 883.4 million** at the beginning of the reporting period[89](index=89&type=chunk)[90](index=90&type=chunk) - As of June 30, 2025, the Group's total borrowings were approximately **RMB 1.6756 billion**, comprising **RMB 1.1794 billion** in current borrowings and **RMB 496.2 million** in non-current borrowings[82](index=82&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) - The gearing ratio remained relatively stable at **0.52** as of June 30, 2025, compared to **0.46** as of December 31, 2024[91](index=91&type=chunk)[94](index=94&type=chunk) [Use of Net Proceeds from Global Offering](index=31&type=section&id=Use%20of%20Net%20Proceeds%20from%20the%20Global%20Offering) Following its December 2024 listing, the company received net proceeds of HKD 623.3 million, of which HKD 91.5 million was utilized by June 30, 2025, primarily for R&D and capacity expansion, overseas market development, and working capital, leaving HKD 531.8 million unutilized Use of Net Proceeds and Utilization (As of June 30, 2025) | Intended Use | Allocated Amount (HKD millions) | Amount Utilized (HKD millions) | Unutilized Balance (HKD millions) | | :--- | :--- | :--- | :--- | | R&D activities and capacity expansion (hydrogen fuel cell systems) | 464.4 | 59.9 | 404.5 | | Capacity expansion (hydrogen energy equipment) | 95.3 | 5.6 | 89.7 | | Overseas market business expansion | 48.0 | 10.4 | 37.6 | | Working capital and general corporate purposes | 15.6 | 15.6 | 0 | | **Total** | **623.3** | **91.5** | **531.8** | [Other Information](index=33&type=section&id=Other%20Information) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) During the reporting period, the company largely complied with the Corporate Governance Code, with deviations including the combined roles of Chairman and CEO held by Mr. Lin Qi and the absence of a formal dividend policy prior to stable profitability, which the Board continues to review - The company deviated from the Corporate Governance Code: the roles of Chairman and Chief Executive Officer are combined and held by Mr. Lin Qi. The Board believes this arrangement benefits Group management, and the Board's composition (including three independent non-executive directors) ensures a balance of power[116](index=116&type=chunk)[117](index=117&type=chunk) - The company has not yet adopted a dividend policy, planning to use future profits for business development. Under Chinese law, the company must first cover accumulated losses and set aside statutory reserves before distributing dividends[119](index=119&type=chunk)[120](index=120&type=chunk) [Directors' and Shareholders' Interests](index=35&type=section&id=Directors'%20and%20Shareholders'%20Interests) This section discloses the interests of the company's directors, chief executive, and substantial shareholders in the company's shares as of June 30, 2025, with Chairman Mr. Lin Qi holding approximately 21.88% and other major shareholders including Shanghai Weiqing, Sinopec Capital, and the National Manufacturing Transformation and Upgrading Fund Directors' Interests in Shares (As of June 30, 2025) | Director Name | Share Class | Number of Shares Held | Percentage of Total Issued Shares (%) | | :--- | :--- | :--- | :--- | | Mr. Lin Qi | Domestic Shares | 18,852,700 | 21.88% | | Dr. Hu Zhe | Domestic Shares | 375,000 | 0.44% | | Ms. Ma Jingnan | Domestic Shares | 1,867,500 | 2.17% | | Dr. Zhai Shuang | Domestic Shares | 75,000 | 0.09% | | Mr. Zhao Yongsheng | Domestic Shares | 75,000 | 0.09% | - Disclosed shareholdings of major shareholders, including Shanghai Weiqing (**4.24%**), Sinopec Capital (**3.38%**), National Manufacturing Transformation and Upgrading Fund (**4.34%**), Shenzhen Qianhai Chunyang Asset Management Co., Ltd. (**6.43%**), and Zhengzhou Yunshan Automobile Industry Equity Investment Fund (**5.80%**)[137](index=137&type=chunk)[138](index=138&type=chunk)[140](index=140&type=chunk) [Other Corporate Governance Matters and Events After Reporting Period](index=47&type=section&id=Other%20Corporate%20Governance%20Matters%20and%20Events%20After%20Reporting%20Period) During and after the reporting period, the company adjusted its governance structure, dissolving the Supervisory Committee post-AGM on May 19, 2025, with its functions transferred to the Audit Committee, and subsequently announced two significant capital injections on August 8, 2025, to expand its hydrogen production market and business - In accordance with the new Company Law, the company's Supervisory Committee was dissolved following approval at the Annual General Meeting on May 19, 2025, with its functions to be exercised by the Audit Committee[176](index=176&type=chunk)[177](index=177&type=chunk)[180](index=180&type=chunk) - After the reporting period, on August 8, 2025, the company's subsidiary, Guangdong Tansuo Automobile, agreed to inject **RMB 100 million** into Guangdong Enze; concurrently, the Board resolved to increase capital by **RMB 70 million** in Seraph Remodeling (Ningxia) Hydrogen Electric Energy Co., Ltd. to expand the hydrogen production market[187](index=187&type=chunk)[189](index=189&type=chunk) [Interim Condensed Consolidated Financial Statements](index=51&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss](index=51&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company reported RMB 106.9 million in revenue, a gross loss of RMB 13.46 million, a loss for the period of RMB 352.2 million, and a loss attributable to owners of the parent of RMB 332.7 million, with basic and diluted loss per share of RMB 3.86, showing narrowed gross and net losses despite a slight revenue decrease compared to the prior year [Interim Condensed Consolidated Statement of Financial Position](index=55&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were RMB 4.61 billion, total liabilities RMB 2.999 billion, and net assets RMB 1.611 billion, with current assets at RMB 3.492 billion and current liabilities at RMB 2.41 billion, reflecting a decrease in both total and net assets compared to year-end 2024 [Interim Condensed Consolidated Statement of Cash Flows](index=61&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash flow from operating activities turned positive to RMB 95.09 million from a prior year outflow of RMB 160 million, with net cash outflows from investing activities of RMB 65.49 million and net inflows from financing activities of RMB 142.7 million, resulting in period-end cash and cash equivalents of RMB 1.051 billion, an increase of RMB 172.3 million [Notes to the Interim Condensed Consolidated Financial Information](index=65&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [Note 5. REVENUE, OTHER INCOME AND GAINS](index=76&type=section&id=Note%205.%20REVENUE%2C%20OTHER%20INCOME%20AND%20GAINS) This note details revenue composition, showing hydrogen fuel cell systems as the primary source at 71.8% of total revenue, with mainland China contributing 90% and other countries/regions increasing to 10%, while other income and gains totaled RMB 35.58 million, mainly from government grants and interest income Analysis of Other Income and Gains (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Government grants and subsidies | 27,053 | 14,494 | | Interest income | 7,087 | 3,072 | | Others | 1,419 | 3,076 | | **Subtotal Other Income** | **35,559** | **20,642** | | Gains | 17 | 1,488 | | **Total** | **35,576** | **22,130** | [Note 16. TRADE AND BILLS RECEIVABLES AND CONTRACT ASSETS](index=92&type=section&id=Note%2016.%20TRADE%20AND%20BILLS%20RECEIVABLES%20AND%20CONTRACT%20ASSETS) As of June 30, 2025, trade receivables, commercial acceptance bills, and contract assets (net of impairment) totaled RMB 2.152 billion, with approximately 70% current or due within one year, and total impairment loss provisions increased to RMB 601 million from RMB 530 million at period-start Aging Analysis of Trade Receivables, Commercial Acceptance Bills and Contract Assets (Net of Loss Allowance, RMB thousands) | Aging | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Current | 881,882 | 1,160,525 | | Within 1 year | 625,244 | 730,293 | | 1 to 2 years | 440,657 | 281,027 | | 2 to 3 years | 85,136 | 16,441 | | Over 3 years | 119,411 | 142,497 | | **Total** | **2,152,330** | **2,330,783** | [Note 23. INTEREST-BEARING BANK AND OTHER BORROWINGS](index=100&type=section&id=Note%2023.%20INTEREST-BEARING%20BANK%20AND%20OTHER%20BORROWINGS) As of June 30, 2025, total interest-bearing bank and other borrowings increased to RMB 1.676 billion from RMB 1.559 billion at year-end 2024, with RMB 1.179 billion due within one year, and some borrowings are secured by the company's buildings, land, and machinery and equipment - Portions of the Group's bank loans are secured by buildings with a net book value of approximately **RMB 64.91 million**, leasehold land of **RMB 21.82 million**, and machinery and equipment of **RMB 116 million**[381](index=381&type=chunk) [Note 26. SHARE-BASED PAYMENTS](index=105&type=section&id=Note%2026.%20SHARE-BASED%20PAYMENTS) Total share-based payment expenses for the period were RMB 20.35 million, entirely from the pre-IPO share option scheme and significantly lower than RMB 160.7 million in the prior year, primarily recognized in administrative expenses (RMB 12.19 million), with 2.26 million unexercised options remaining at period-end Share-based Payment Expenses (RMB thousands) | | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Share incentive scheme | – | 70,501 | | Pre-IPO share option scheme | 20,346 | 90,149 | | **Total** | **20,346** | **160,650** | [Note 27. CONTINGENT LIABILITIES](index=111&type=section&id=Note%2027.%20CONTINGENT%20LIABILITIES) The company provided a guarantee to its major customer, FAW Jiefang, for the collection of RMB 252.6 million in government subsidies by December 31, 2025, with management assessing the probability of collection as extremely high, resulting in a very low guarantee provision - The company provided a guarantee to its major customer, FAW Jiefang, for the collection of government subsidies, with a total guaranteed amount of **RMB 252.6 million**. Management believes the customer is highly likely to receive the subsidies, thus the related guarantee provision is assessed as very low[417](index=417&type=chunk)[418](index=418&type=chunk)

[Financial Summary](index=1&type=section&id=Financial%20Summary) The group's financial performance for the six months ended June 30, 2025, shows a decrease in total revenue but a significant reduction in net loss and an increase in operating cash flow Financial Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB Million) | 2024 (RMB Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 106.9 | 118.7 | -9.9% | | Hydrogen Fuel Cell System Sales Revenue | 76.8 | 31.8 | 141.8% | | Overseas Revenue | 11.0 | 2.4 | 360.3% | | Gross Profit Loss | (13.5) | (17.4) | 22.5% (Loss Reduced) | | Loss Attributable to Owners of the Company | (332.7) | (466.4) | 28.7% (Loss Reduced) | | Net Cash Flow from Operating Activities | 95.1 | N/A | N/A | | Cash and Cash Equivalents (End of Period) | 1,051.1 | 883.4 (Beginning of Period) | 19.0% | | Dividends | No Declaration | No Declaration | N/A | [Interim Condensed Consolidated Financial Information](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Information) This section presents the interim condensed consolidated financial statements, including income, balance sheet, and detailed notes, providing a comprehensive overview of the group's financial performance and position [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The group's loss for the period significantly narrowed due to reduced gross profit loss and substantial decreases in operating expenses, particularly administrative and R&D, despite a slight revenue decline Key Data from the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB Thousand) | 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 106,948 | 118,736 | -9.9% | | Cost of Sales | (120,403) | (136,105) | -11.5% | | Gross Profit | (13,455) | (17,369) | 22.5% (Loss Reduced) | | Other Income and Gains | 35,576 | 22,130 | 60.8% | | Selling and Marketing Expenses | (50,696) | (53,314) | -4.9% | | Administrative Expenses | (116,684) | (243,792) | -52.1% | | Research and Development Expenses | (60,590) | (112,500) | -46.1% | | Loss Before Tax | (352,408) | (489,819) | 28.1% (Loss Reduced) | | Loss for the Period | (352,201) | (487,929) | 27.8% (Loss Reduced) | | Loss Attributable to Owners of the Parent | (332,698) | (466,361) | 28.7% (Loss Reduced) | | Basic and Diluted Loss Per Share | RMB (3.86) | RMB (5.74) | 32.7% (Loss Reduced) | - Total comprehensive income for the period was **RMB (352,981) thousand**, a reduction in loss of approximately **28.2%** compared to **RMB (491,867) thousand** in the same period of 2024[6](index=6&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) The group's financial position shows a decrease in total assets and net assets, but a significant increase in cash and cash equivalents, while total current liabilities rose, leading to a decline in net current assets and current ratio Key Data from the Consolidated Statement of Financial Position as of June 30, 2025 | Metric | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 1,117,908 | 1,131,550 | -1.2% | | Total Current Assets | 3,492,199 | 3,560,581 | -1.9% | | Total Current Liabilities | 2,410,212 | 2,133,636 | 13.0% | | Total Non-current Liabilities | 589,088 | 619,406 | -4.9% | | Net Assets | 1,610,807 | 1,939,089 | -16.9% | | Total Equity | 1,610,807 | 1,939,089 | -16.9% | | Cash and Cash Equivalents | 1,051,112 | 883,356 | 19.0% | | Net Current Assets | 1,081,987 | 1,426,945 | -24.1% | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section details the interim financial statement figures, covering company information, accounting policies, operating segments, revenue, expenses, balance sheet items, and equity changes, providing deeper context for financial analysis [Company and Group Information](index=6&type=section&id=1.%20Company%20and%20Group%20Information) This section provides an overview of the company's establishment, listing history, and primary business activities within the hydrogen energy sector - The company was incorporated in Shanghai on September 18, 2015, restructured into a joint-stock company on September 11, 2020, and listed on the Main Board of the Hong Kong Stock Exchange on December 6, 2024[9](index=9&type=chunk) - The group's principal activities include the research, development, production, and sales of hydrogen fuel cell systems, components, and hydrogen energy equipment, as well as providing hydrogen fuel cell engineering development services[10](index=10&type=chunk)[13](index=13&type=chunk) [Accounting Policies](index=6&type=section&id=2.%20Accounting%20Policies) This section outlines the accounting principles applied in preparing the interim condensed consolidated financial information, confirming consistency with prior annual reports and the impact of new standards - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, with accounting policies consistent with those applied in the 2024 annual consolidated financial statements[10](index=10&type=chunk)[11](index=11&type=chunk) - The adoption of the revised IAS 21 "Lack of Exchangeability" had no impact on the interim condensed consolidated financial information, as the group's transaction and functional currencies are all convertible[12](index=12&type=chunk) [Operating Segment Information](index=7&type=section&id=3.%20Operating%20Segment%20Information) This section clarifies the group's approach to segment reporting, geographical concentration of assets and revenue, and the concentration of sales to major customers - Management monitors the group's overall operating results uniformly, and no separate operating segment information is presented[14](index=14&type=chunk) - The majority of the group's non-current assets and revenue are derived from mainland China[15](index=15&type=chunk) - During the reporting period, revenue from the group's major customers accounted for **69%** of total sales, with sales to the largest customer representing **32%**[16](index=16&type=chunk) [Revenue, Other Income and Gains](index=7&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) This section provides a detailed breakdown of the group's revenue by product/service category and geographical market, along with an analysis of other income and gains Revenue by Type of Goods or Services | Type of Goods or Services | 2025 (RMB Thousand) | 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hydrogen Fuel Cell Systems | 76,827 | 31,769 | 141.8% | | Components | 20,329 | 82,382 | -75.3% | | Hydrogen Energy Equipment and Related Components | 705 | – | N/A | | Hydrogen Fuel Cell Engineering Development Services | 6,131 | 966 | 534.7% | | Others | 2,956 | 3,619 | -18.3% | | **Total** | **106,948** | **118,736** | **-9.9%** | Revenue by Geographical Market | Geographical Market | 2025 (RMB Thousand) | 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Mainland China | 95,930 | 116,342 | -17.5% | | Other Countries/Regions | 11,018 | 2,394 | 360.3% | | **Total** | **106,948** | **118,736** | **-9.9%** | Analysis of Other Income and Gains | Category | 2025 (RMB Thousand) | 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Government Grants and Subsidies | 27,053 | 14,494 | 86.6% | | Interest Income | 7,087 | 3,072 | 130.7% | | Subtotal Other Income | 35,559 | 20,642 | 72.3% | | Subtotal Gains | 17 | 1,488 | -98.9% | | **Total** | **35,576** | **22,130** | **60.8%** | [Loss Before Tax](index=10&type=section&id=5.%20Loss%20Before%20Tax) This section details the key components contributing to the group's loss before tax, including cost of goods sold, depreciation, staff costs, share-based payments, impairment losses, and inventory write-downs Key Components of Loss Before Tax | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Goods Sold | 69,727 | 94,341 | -26.1% | | Depreciation of Property, Plant and Equipment | 47,187 | 55,196 | -14.5% | | Wages and Salaries | 102,287 | 133,284 | -23.3% | | Share-based Payments | 20,346 | 160,650 | -87.3% | | Net Impairment Loss on Financial Assets | 83,284 | 45,892 | 81.5% | | Write-down of Inventories to Net Realizable Value | 19,123 | 10,036 | 90.5% | | Fair Value Loss on Financial Assets at FVTPL | 3,383 | 2,247 | 50.6% | [Finance Costs](index=10&type=section&id=6.%20Finance%20Costs) This section outlines the composition of the group's finance costs, primarily driven by interest on bank and other borrowings and lease liabilities Composition of Finance Costs | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest on Interest-bearing Bank and Other Borrowings | 33,261 | 26,686 | 24.6% | | Interest on Lease Liabilities | 931 | 1,372 | -32.1% | | **Total** | **34,589** | **28,058** | **23.3%** | [Income Tax](index=11&type=section&id=7.%20Income%20Tax) This section details the income tax credit recorded for the period and highlights the preferential tax rates enjoyed by certain high-tech and small-profit subsidiaries - An income tax credit of approximately **RMB 0.2 million** was recorded during the reporting period, a significant decrease from approximately **RMB 1.9 million** in the same period of 2024[25](index=25&type=chunk)[58](index=58&type=chunk) - Re-Fire Technology, Shanghai Pandong, and Shanghai Yunliang qualified as high-tech enterprises, enjoying a preferential corporate income tax rate of **15%**, with some subsidiaries also benefiting from preferential tax policies for small and micro-profit enterprises[24](index=24&type=chunk) [Loss Per Share Attributable to Ordinary Equity Holders of the Parent](index=12&type=section&id=8.%20Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) This section presents the basic and diluted loss per share, reflecting the reduction in loss attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares Loss Per Share Data | Metric | 2025 (RMB) | 2024 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss Attributable to Ordinary Equity Holders of the Parent | (332,698) thousand | (466,361) thousand | 28.7% (Loss Reduced) | | Weighted Average Number of Ordinary Shares for Basic Loss Per Share | 86,161,575 shares | 81,311,371 shares | 6.0% | | Basic and Diluted Loss Per Share | (3.86) | (5.74) | 32.7% (Loss Reduced) | [Trade and Bills Receivables and Contract Assets](index=13&type=section&id=9.%20Trade%20and%20Bills%20Receivables%20and%20Contract%20Assets) This section provides a breakdown of trade and bills receivables and contract assets, highlighting the increase in impairment losses primarily due to higher provisions for expected credit losses Trade and Bills Receivables and Contract Assets | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Subtotal Non-current Trade Receivables and Contract Assets (Net of Impairment) | 240,048 | 290,453 | -17.4% | | Subtotal Current Trade and Bills Receivables (Net of Impairment) | 1,916,615 | 2,049,241 | -6.6% | | **Total** | **2,156,663** | **2,339,694** | **-7.8%** | | Total Impairment Losses | 600,662 | 530,150 | 13.3% | - The net impairment loss on trade receivables increased, primarily due to higher provisions for expected credit losses on trade receivables[29](index=29&type=chunk)[57](index=57&type=chunk) [Trade and Bills Payables](index=14&type=section&id=10.%20Trade%20and%20Bills%20Payables) This section presents the aging analysis of trade and bills payables, noting a decrease in total payables and the reclassification of certain supplier payments under financing arrangements Aging Analysis of Trade and Bills Payables | Aging | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 Year | 579,763 | 665,661 | -12.9% | | 1 to 2 Years | 52,125 | 74,646 | -30.2% | | 2 to 3 Years | 1,455 | 47,491 | -96.9% | | Over 3 Years | 53,266 | 86,025 | -38.1% | | **Total** | **686,609** | **873,823** | **-21.5%** | - The group entered into supplier financing arrangements with Xi'an Jingchan, Zhongqi Yunlian, and Jianxin Rongtong, reclassifying amounts payable to suppliers as amounts payable to factoring companies[31](index=31&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk) [Share Capital](index=15&type=section&id=11.%20Share%20Capital) This section details the changes in the group's issued and fully paid share capital, specifically noting the increase due to the exercise of over-allotment options Changes in Share Capital | Item | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Issued and Fully Paid Share Capital | 86,162 | 86,139 | 0.03% | - On January 2, 2025, over-allotment options were exercised, resulting in the issuance of **23,180 H shares** and an increase in share capital of **RMB 23 thousand**[36](index=36&type=chunk) [Dividends](index=16&type=section&id=12.%20Dividends) This section confirms that no dividends were paid or declared by the company or its subsidiaries during the reporting periods - For the six months ended June 30, 2025, and 2024, no dividends were paid or declared by the company or its current subsidiaries[37](index=37&type=chunk)[74](index=74&type=chunk) [Business/Industry Review](index=17&type=section&id=Business%2FIndustry%20Review) This section provides an overview of the hydrogen energy industry's policy and market developments, the group's technological advancements, market expansion, and ecosystem building efforts [Industry Policies and Market Development](index=17&type=section&id=Industry%20Policies%20and%20Market%20Development) China's hydrogen energy industry saw rapid growth in H1 2025, driven by supportive national policies, expanded demonstration city clusters, highway toll exemptions, and state fund investments in frontier technologies - The National Energy Administration issued the "Guiding Opinions on Energy Work in 2025," promoting the establishment and improvement of hydrogen energy management mechanisms across various regions[38](index=38&type=chunk) - The fuel cell vehicle demonstration city clusters expanded with **6** new locations, and over **10** provinces and cities proposed highway toll exemption policies for hydrogen energy vehicles[38](index=38&type=chunk) - The National Development and Reform Commission established a national venture capital guidance fund, focusing on supporting frontier technology fields like hydrogen energy storage, while the National Energy Administration organized hydrogen energy pilot programs[38](index=38&type=chunk) [Technological R&D Progress](index=18&type=section&id=Technological%20R%26D%20Progress) The group maintains technological innovation, strengthening fuel cell reliability and durability, and successfully mass-produced the new-generation Sirius series fuel cell systems, reducing raw material and manufacturing costs - The company adheres to technological innovation, consolidating its advantages in fuel cell reliability and durability, and achieving key technology layouts across the industrial chain[40](index=40&type=chunk) - Awarded the second batch of Shanghai Innovative Enterprise Headquarters, its products have been validated and continuously optimized under extremely high operating intensity[40](index=40&type=chunk) - The independently developed new-generation fuel cell system product, the Sirius series, entered mass production, with both raw material and manufacturing costs further decreasing[40](index=40&type=chunk) [Promotion and Market Expansion](index=18&type=section&id=Promotion%20and%20Market%20Expansion) The group actively promotes large-scale application of hydrogen heavy trucks in long-haul transport, especially in low-cost hydrogen regions, successfully expanding overseas markets with bulk sales, and participating in Hong Kong's hydrogen energy strategy - Promoting the large-scale application of hydrogen heavy trucks for medium and long-haul transport, especially in regions with low-cost hydrogen resources[41](index=41&type=chunk) - Actively participating in Hong Kong's hydrogen energy development strategy, a project to trial **two** hydrogen fuel cell tourist buses for cross-border passenger transport received in-principle approval[41](index=41&type=chunk) - Continuously exploring overseas market opportunities, expanding application scenarios through domestic and international engineering services, and achieving bulk sales and deliveries[39](index=39&type=chunk)[41](index=41&type=chunk) [Ecosystem Building and Cooperation](index=19&type=section&id=Ecosystem%20Building%20and%20Cooperation) The group made key progress in building a hydrogen energy ecosystem through strategic partnerships, participation in national green hydrogen projects, co-developing carbon emission accounting standards, and securing local government equity investment - Signed a strategic cooperation agreement with Beijing Mingyang Hydrogen Energy Technology Co., Ltd., to conduct comprehensive cooperation[42](index=42&type=chunk) - The Ningxia Taiyangshan Hydrogen-Ammonia Valley Source-Grid-Load-Storage Integrated Project and the Ningxia Yinchuan High-tech Zone Green Hydrogen Production-Storage-Transportation-Utilization Integrated Demonstration Project, led by the group, were successfully selected for the National Development and Reform Commission's second batch of "Green and Low-Carbon Advanced Technology Demonstration Project List"[42](index=42&type=chunk) - The "Carbon Emission Accounting Method for Industrial By-product Hydrogen" group standard, co-developed by the group, was officially released, helping the hydrogen energy industry obtain more accurate value assessments in the carbon market[43](index=43&type=chunk) - Entered into an A-share subscription agreement with Qiyuan Fund and Cangnan Shanhai Zerun, which is beneficial for enhancing competitiveness and expanding into the Northwest market[43](index=43&type=chunk) [Prospects/Outlook](index=19&type=section&id=Prospects%2FOutlook) This section outlines the group's future strategies for product and technology development, commercial application expansion, and overseas market penetration to drive sustainable growth [Product and Technology Development Strategy](index=20&type=section&id=Product%20and%20Technology%20Development%20Strategy) The group will continue to focus on market demand, increase R&D investment, and iterate products to meet stringent requirements for reliability, durability, cost, and efficiency in commercial applications, while expanding technology layouts in diverse fuel cell applications and hydrogen production - Centered on market demand, the group will persist in R&D innovation to meet the stringent requirements for reliability, durability, cost, and efficiency in end commercial scenarios, maintaining and enhancing long-term technological competitiveness[45](index=45&type=chunk) - Continuously iterating and updating technology based on market feedback, consolidating product advantages in heavy truck applications, and advancing technology layouts and product development in diverse fuel cell applications and hydrogen production[45](index=45&type=chunk) [Commercial Application and Ecosystem Expansion](index=20&type=section&id=Commercial%20Application%20and%20Ecosystem%20Expansion) The group will consolidate hydrogen heavy truck application advantages in low-cost hydrogen markets and specific industrial sectors, accelerate scaling with policy support, expand into diverse application markets like power generation, and develop end-to-end hydrogen projects through green hydrogen ecosystems - Consolidating the application advantages of hydrogen heavy trucks in low-cost hydrogen markets and freight scenarios within industries such as steel, coking, petrochemicals, and chlor-alkali, combined with expanding toll fee reduction policies, to accelerate the scaling of hydrogen heavy truck applications[46](index=46&type=chunk) - Leveraging advantages in diverse application markets like power generation to enhance performance and drive downstream hydrogen consumption, while developing end-to-end hydrogen application projects through green hydrogen ecosystem initiatives to create commercial value[46](index=46&type=chunk) [Overseas Market Strategy](index=20&type=section&id=Overseas%20Market%20Strategy) The group will leverage its first-mover advantage overseas, focusing on key potential markets along the "Belt and Road" to strengthen market expansion and sales networks, aiming to improve overall performance and explore participation in overseas green hydrogen projects - Focusing on key potential markets such as Southeast Asia, Central Asia, the Middle East, and North Africa, aligned with the national "Belt and Road" strategy, to strengthen market expansion and sales network construction, leveraging the high-margin advantage of overseas orders to enhance overall performance[47](index=47&type=chunk) - Further exploring participation in overseas green hydrogen ecosystem projects to replicate China's green hydrogen project experience, promote sales of products like electrolyzed water hydrogen energy equipment and components, and expand hydrogen energy application scenarios such as heavy trucks, hydrogen storage, and power generation[47](index=47&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) This section provides a detailed analysis of the group's financial performance, covering revenue, costs, expenses, profit/loss, and key financial ratios, along with liquidity and capital resources [Revenue Analysis](index=21&type=section&id=Revenue%20Analysis) The group's total revenue decreased by **9.9%** to **RMB 106.9 million**, primarily due to a significant reduction in component sales, though hydrogen fuel cell system sales and overseas revenue grew substantially, optimizing the revenue structure - Total revenue was approximately **RMB 106.9 million**, a decrease of approximately **9.9%** from the prior period, mainly due to a decline in component sales compared to the same period in 2024[48](index=48&type=chunk) - Fuel cell system revenue was approximately **RMB 76.8 million**, an increase of approximately **141.8%** from the prior period, driven by increased customer demand and orders, optimizing the revenue structure[48](index=48&type=chunk)[49](index=49&type=chunk) - Revenue from overseas regions was **RMB 11.0 million**, an increase of approximately **360.3%** from the prior period, primarily driven by overseas business marketing expansion and product technology recognition[51](index=51&type=chunk) [Cost of Sales, Gross Profit and Gross Margin](index=22&type=section&id=Cost%20of%20Sales%2C%20Gross%20Profit%20and%20Gross%20Margin) Cost of sales decreased by **11.5%** to **RMB 120.4 million**, and gross profit loss narrowed by **22.5%** to **RMB 13.5 million**, with the gross margin improving from **-14.6%** to **-12.6%**, mainly due to a sales mix shift towards more profitable fuel cell systems - Cost of sales was **RMB 120.4 million**, a decrease of approximately **11.5%** from the first half of 2024, primarily due to changes in sales structure, with a higher proportion of more profitable fuel cell system sales[52](index=52&type=chunk) - Gross profit loss was approximately **RMB 13.5 million**, a reduction in loss of approximately **22.5%** from the prior period; gross margin increased from approximately **-14.6%** to approximately **-12.6%**, mainly due to changes in sales structure[53](index=53&type=chunk) [Other Income](index=22&type=section&id=Other%20Income) The group's other income significantly increased by **72.3%** to **RMB 35.6 million**, driven primarily by higher government grants and subsidies and increased bank interest income - Other income increased by approximately **72.3%** from approximately **RMB 20.6 million** in the prior period to approximately **RMB 35.6 million** in the reporting period[54](index=54&type=chunk) - The increase was mainly due to an increase of approximately **RMB 12.6 million** in government grants and subsidies received and recognized, and an increase of approximately **RMB 4.0 million** in bank interest income during the reporting period[54](index=54&type=chunk) [Selling, Administrative and R&D Expenses](index=22&type=section&id=Selling%2C%20Administrative%20and%20R%26D%20Expenses) Selling and marketing expenses slightly decreased, while administrative and R&D expenses significantly dropped due to reduced share-based payment expenses. Excluding share-based payments and listing expenses, selling and marketing expenses slightly increased, while administrative and R&D expenses decreased due to efficiency improvements - Selling and marketing expenses decreased to approximately **RMB 50.7 million**, primarily due to reduced share-based payment expenses; excluding share-based payment expenses, selling and marketing expenses slightly increased[55](index=55&type=chunk) - Administrative expenses decreased to approximately **RMB 116.7 million**, primarily due to reduced share-based payment expenses and listing expenses; excluding these factors, administrative expenses decreased due to a reduction in administrative staff and cost control[56](index=56&type=chunk) - R&D expenses decreased to approximately **RMB 60.6 million**; excluding share-based payment expenses, R&D expenses decreased, mainly due to continuous focus and streamlining of product series, improving the efficiency of R&D personnel activities and resource allocation[56](index=56&type=chunk) [Net Impairment Losses on Financial Assets and Contract Assets](index=23&type=section&id=Net%20Impairment%20Losses%20on%20Financial%20Assets%20and%20Contract%20Assets) The group's net impairment losses on financial assets and contract assets increased by **81.5%** to **RMB 83.3 million**, primarily due to higher provisions for expected credit losses on trade receivables - Impairment losses on financial assets and contract assets increased from approximately **RMB 45.9 million** in the prior period to approximately **RMB 83.3 million** in the reporting period, mainly due to increased provisions for expected credit losses on trade receivables[57](index=57&type=chunk) [Income Tax](index=23&type=section&id=Income%20Tax) The group recorded an income tax credit of approximately **RMB 0.2 million** during the reporting period, a decrease from approximately **RMB 1.9 million** in the prior period - During the reporting period, the group recorded an income tax credit of approximately **RMB 0.2 million** (for the six months ended June 30, 2024: approximately **RMB 1.9 million**)[58](index=58&type=chunk) [Finance Costs](index=23&type=section&id=Finance%20Costs) The group's finance costs increased by **23.3%** to **RMB 34.6 million**, primarily due to higher interest expenses on borrowings - During the reporting period, the group's finance costs were approximately **RMB 34.6 million** (for the six months ended June 30, 2024: approximately **RMB 28.1 million**), primarily due to increased interest expenses on borrowings[59](index=59&type=chunk) [Loss Attributable to Owners of the Company](index=23&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) Loss attributable to owners of the company was **RMB 332.7 million**, a **28.7%** reduction from the prior period's loss of **RMB 466.4 million**, reflecting improved consolidated financial performance - During the reporting period, the loss attributable to owners of the company was approximately **RMB 332.7 million**, compared to approximately **RMB 466.4 million** in the prior period, representing a reduction in loss of approximately **28.7%**[60](index=60&type=chunk) [Non-IFRS Measures](index=24&type=section&id=Non-IFRS%20Measures) Adjusted net loss (non-IFRS measure), excluding share-based payments and listing expenses, was **RMB 331.9 million**, a slight increase from **RMB 318.1 million** in the prior period Reconciliation of Adjusted Net Loss (Non-IFRS Measure) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Loss for the Period | (352,201) | (487,929) | | Add back: Share-based Payments | 20,346 | 160,650 | | Add back: Listing Expenses Related to the Company's Global Offering | – | 9,181 | | **Total (Adjusted Net Loss)** | **(331,855)** | **(318,098)** | [Borrowings and Pledges of Group Assets](index=24&type=section&id=Borrowings%20and%20Pledges%20of%20Group%20Assets) As of June 30, 2025, the group's total borrowings were approximately **RMB 1,675.6 million**, with non-current borrowings accounting for approximately **29.6%**, and the board considers the debt level and financial structure robust, with all borrowings denominated in RMB - As of June 30, 2025, the group's borrowings were approximately **RMB 1,675.6 million**, with non-current borrowings accounting for approximately **29.6%** of total borrowings[62](index=62&type=chunk)[64](index=64&type=chunk) - The directors believe that the group's debt level and financial structure provide a solid foundation to withstand market fluctuations and mitigate financial risks, with all bank borrowings and loans denominated in RMB[62](index=62&type=chunk) [Liquidity, Funding and Capital Resources](index=25&type=section&id=Liquidity%2C%20Funding%20and%20Capital%20Resources) The group's primary liquidity sources include operating cash flow, bank borrowings, and H-share listing proceeds. Cash and cash equivalents increased by **19.0%** to **RMB 1,051.1 million**, but net current assets and the current ratio decreased - The group's primary sources of liquidity include cash generated from operating activities, bank borrowings, and proceeds from the listing of H shares on the Stock Exchange[65](index=65&type=chunk) - As of June 30, 2025, the group's cash and cash equivalents were approximately **RMB 1,051.1 million**, an increase of approximately **19.0%** from the beginning of the reporting period[4](index=4&type=chunk)[66](index=66&type=chunk) - The group's net current assets were approximately **RMB 1,082.0 million**, a decrease of approximately **24.1%** from December 31, 2024; the current ratio decreased from approximately **1.7** to approximately **1.4**[66](index=66&type=chunk) [Gearing Ratio](index=26&type=section&id=Gearing%20Ratio) As of June 30, 2025, the group's gearing ratio remained relatively stable at **0.52**, compared to **0.46** as of December 31, 2024 - As of June 30, 2025, the gearing ratio remained relatively stable at **0.52**, compared to **0.46** as of December 31, 2024[67](index=67&type=chunk) [Material Investments, Acquisitions or Disposals](index=26&type=section&id=Material%20Investments%2C%20Acquisitions%20or%20Disposals) During the reporting period, the group made no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the group made no material investments, or material acquisitions or disposals of subsidiaries, associates, or joint ventures[68](index=68&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) The group provides government subsidy guarantees to major customers, and management assesses the likelihood of customers receiving subsidies as extremely high, thus the guarantee provision is deemed very low - The group has provided guarantees to a major customer, FAW Jiefang Automobile Co., Ltd., regarding government subsidies for hydrogen fuel cell vehicles[69](index=69&type=chunk) - Management believes the likelihood of the customer receiving the subsidies is extremely high, thus the guarantee provision as of June 30, 2025, is assessed as very low[69](index=69&type=chunk) [Foreign Exchange Risk](index=27&type=section&id=Foreign%20Exchange%20Risk) The group faces foreign exchange risk from RMB fluctuations against other currencies, primarily from overseas operations and non-RMB bank balances, but limits risk by minimizing net foreign currency positions and did not engage in hedging during the period - The group faces foreign exchange risk arising from fluctuations in exchange rates between RMB and other currencies involved in its operations, stemming from overseas market operations and bank balances denominated in currencies other than RMB[70](index=70&type=chunk) - The group seeks to limit its foreign exchange risk by minimizing net foreign currency positions, and no hedging transactions were entered into for foreign exchange risk for the six months ended June 30, 2025[70](index=70&type=chunk) [Capital Expenditure](index=27&type=section&id=Capital%20Expenditure) The group's capital expenditure significantly increased to **RMB 65.7 million**, primarily for payments related to property, plant, and equipment, and land lease payments - For the six months ended June 30, 2025, the group's capital expenditure was approximately **RMB 65.7 million** (for the six months ended June 30, 2024: approximately **RMB 24.8 million**), primarily related to payments for property, plant, and equipment, and land lease payments[71](index=71&type=chunk) [Capital Commitments](index=27&type=section&id=Capital%20Commitments) The group's total capital commitments increased to **RMB 193.5 million**, primarily for the acquisition of property, plant, and equipment, and investments in associates and other unlisted investments - As of June 30, 2025, the group recorded total capital commitments of approximately **RMB 193.5 million**, compared to approximately **RMB 159.9 million** as of December 31, 2024[72](index=72&type=chunk) - Capital commitments include contractual but unprovided capital commitments for the acquisition of property, plant, and equipment, and investments in associates and other unlisted investments[72](index=72&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the group had **395** full-time employees, emphasizing employee training and providing benefits such as wages, share-based payments, pension scheme contributions, and social welfare - As of June 30, 2025, the group had a total of **395** full-time employees[73](index=73&type=chunk) - The company values employee training and provides employee benefits expenses such as wages and salaries, share-based payments, pension scheme contributions, and social welfare[73](index=73&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) This section covers various corporate governance matters, including dividend policy, compliance with securities trading codes, audit committee review, exercise of over-allotment options, and significant post-reporting period events [Interim Dividends](index=28&type=section&id=Interim%20Dividends) The Board did not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board did not recommend the payment of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[74](index=74&type=chunk) [Corporate Governance Practices](index=28&type=section&id=Corporate%20Governance%20Practices) The group is committed to high corporate governance standards and has adopted the Corporate Governance Code. Despite the Chairman and CEO being the same person, which is a deviation, the Board believes this arrangement benefits group management, and the Board's composition ensures independence - The company has adopted the Corporate Governance Code and complied with all applicable code provisions during the reporting period, except for the deviation where Mr. Lin Qi serves as both Chairman and Chief Executive Officer[75](index=75&type=chunk) - The Board believes that Mr. Lin's dual role as Chairman and Chief Executive Officer is beneficial to the group's management, and the Board's composition is highly independent[75](index=75&type=chunk) - The company currently expects to retain all future earnings to fund its business development and growth, and therefore has not yet adopted a dividend policy for declaring or paying any dividends[76](index=76&type=chunk) [Standard Code for Securities Transactions](index=29&type=section&id=Standard%20Code%20for%20Securities%20Transactions) All directors confirm compliance with the Standard Code for Securities Transactions, and the company is unaware of any non-compliance by the group's senior management - Following specific inquiries to all directors, all directors confirmed that they had complied with the Standard Code for the six months ended June 30, 2025[77](index=77&type=chunk) - The company is not aware of any non-compliance with the Standard Code by the group's senior management for the six months ended June 30, 2025[77](index=77&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[78](index=78&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed and found the interim financial results for the six months ended June 30, 2025, to be in compliance with relevant accounting standards, rules, and regulations, with no objections - The Audit Committee, composed of three independent non-executive directors, reviewed and deemed the interim financial results for the six months ended June 30, 2025, to be in compliance with relevant accounting standards, rules, and regulations, with timely and appropriate disclosures[79](index=79&type=chunk) - The Audit Committee had no disagreement with the accounting policies adopted by the company[79](index=79&type=chunk) [Exercise of Over-allotment Option](index=29&type=section&id=Exercise%20of%20Over-allotment%20Option) On January 2, 2025, a portion of the company's over-allotment option was exercised, leading to the allotment and issuance of **23,180 H shares** and generating additional net proceeds of approximately **HK$3.4 million** - On January 2, 2025, a portion of the over-allotment option described in the prospectus was exercised, resulting in the allotment and issuance of a total of **23,180 H shares** and generating additional net proceeds of approximately **HK$3.4 million** for the company[80](index=80&type=chunk) [Other Corporate Governance Matters](index=30&type=section&id=Other%20Corporate%20Governance%20Matters) This section covers significant corporate governance changes and proposals, including supervisor changes, the proposed dissolution of the supervisory board, amendments to the Articles of Association, the proposed implementation of H-share full circulation, and proposed A-share issuance, along with post-reporting period strategic investments [Changes in Supervisors](index=30&type=section&id=Changes%20in%20Supervisors) This section details the changes in the company's supervisory board, including resignations and the election of new employee and shareholder representative supervisors - Mr. Sun Bei and Mr. Ji Yizhi resigned as supervisors, Mr. Liu Tiezhong was elected as an employee representative supervisor, and Mr. Dong Yazhou was elected as a shareholder representative supervisor[81](index=81&type=chunk) [Proposed Dissolution of the Supervisory Board](index=30&type=section&id=Proposed%20Dissolution%20of%20the%20Supervisory%20Board) This section outlines the Board's proposal to dissolve the Supervisory Board in accordance with the new Company Law amendments, with its functions to be exercised by the Audit Committee, following shareholder approval - In accordance with the amendments to the new Company Law, the Board resolved and proposed to dissolve the Supervisory Board, which has been approved by shareholders, and its functions will be exercised by the Audit Committee[82](index=82&type=chunk) [Proposed Amendments to the Articles of Association](index=31&type=section&id=Proposed%20Amendments%20to%20the%20Articles%20of%20Association) This section details the Board's proposal to amend the Articles of Association in line with the new Company Law and Listing Rules, which has received formal shareholder approval - The Board resolved and proposed to amend the Articles of Association in accordance with the provisions of the new Company Law and the Listing Rules, which has been formally approved by shareholders[83](index=83&type=chunk) [Proposed Implementation of H-share Full Circulation](index=31&type=section&id=Proposed%20Implementation%20of%20H-share%20Full%20Circulation) This section outlines the company's submission to the CSRC for H-share full circulation, involving the conversion of **16,369,877 A shares** into H shares for listing, with the filing completed but implementation details pending - The company has submitted a filing to the China Securities Regulatory Commission for the implementation of H-share full circulation, involving the conversion of **16,369,877 A shares** into H shares for listing on the Stock Exchange[84](index=84&type=chunk) - The CSRC filing has been completed, but the detailed implementation plan for the conversion and listing is not yet finalized and requires other relevant procedures to be completed[84](index=84&type=chunk) [Proposed Issuance of A Shares and Related Matters](index=32&type=section&id=Proposed%20Issuance%20of%20A%20Shares%20and%20Related%20Matters) This section details the Board's proposal, approved by shareholders, to issue **1,971,830 A shares** to two subscribers at **RMB 142** per share, aimed at enhancing competitiveness and raising additional capital, subject to CSRC approval - The Board proposed, and shareholders approved, the issuance of a total of **1,971,830 A shares** to two subscribers at a subscription price of **RMB 142** per share, aiming to enhance competitiveness and raise additional capital[86](index=86&type=chunk) - The subscription is subject to approval from the China Securities Regulatory Commission and the fulfillment of certain preconditions[87](index=87&type=chunk) [Events After Reporting Period](index=33&type=section&id=Events%20After%20Reporting%20Period) This section discloses significant events occurring after the reporting period, including strategic investments by subsidiaries to expand into the hydrogen production sector - On August 8, 2025, Guangdong Tansuo Automobile Co., Ltd., a subsidiary of the company, entered into a capital increase agreement with Enze (Guangdong) Hydrogen Energy Co., Ltd. and others, injecting **RMB 100 million** to promote strategic planning in the hydrogen production sector[88](index=88&type=chunk) - The Board resolved to increase the registered capital of Seraph Re-Fire (Ningxia) Hydrogen Electric Energy Co., Ltd. by **RMB 70 million** to further expand into the hydrogen production market[88](index=88&type=chunk) [Definitions](index=33&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used throughout the announcement, ensuring clarity and consistent understanding of the report content - This section provides definitions for key terms and abbreviations used in the announcement to ensure clarity and consistent understanding of the report content[92](index=92&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)

Interim Results Announcement [Consolidated Financial Statements](index=2&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%90%88%E5%A0%B1%E8%A1%A8) For the six months ended June 30, 2025, the Group's total revenue saw slight growth, but increased cost of inventories consumed and declining restaurant business revenue led to an expanded loss of HKD 2.24 million for the period, with significantly reduced operating cash flow and a decrease in cash and cash equivalents at period-end, while overall net assets slightly decreased, maintaining a stable financial position [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue slightly increased by 1.7% year-on-year to HKD 55.11 million, but increased cost of inventories consumed led to expanded operating and pre-tax losses, with loss attributable to owners of the Company at HKD 2.39 million, compared to HKD 0.41 million in the prior period, and basic loss per share widening to HKD 0.17 cents Condensed Consolidated Statement of Profit or Loss | Metric | For the Six Months Ended June 30, 2025 (Thousand HKD) | For the Six Months Ended June 30, 2024 (Thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 55,106 | 54,172 | +1.7% | | Cost of Inventories Consumed | (32,813) | (29,443) | +11.4% | | Loss Before Tax | (2,240) | (807) | +177.6% | | Loss for the Period | (2,240) | (807) | +177.6% | | Loss Attributable to Owners of the Company | (2,387) | (414) | +476.6% | | Basic and Diluted Loss Per Share (HK cents) | (0.17) | (0.03) | +466.7% | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The period recorded a loss of HKD 2.24 million, but other comprehensive income from property revaluation (net of tax) generated HKD 1.31 million, resulting in a total comprehensive loss for the period of HKD 0.93 million, compared to a total comprehensive income of HKD 0.49 million in the prior period - Total comprehensive loss for the period was **HKD 0.933 million**, compared to total comprehensive income of **HKD 0.489 million** in the prior period, primarily due to the expanded operating loss in the current period[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's net assets were HKD 87.28 million, a slight decrease from HKD 88.22 million at the end of 2024, with net current assets remaining stable at HKD 18.59 million and cash and cash equivalents at HKD 11.81 million Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (Unaudited, Thousand HKD) | As of December 31, 2024 (Audited, Thousand HKD) | | :--- | :--- | :--- | | Total Non-current Assets | 78,052 | 79,188 | | Total Current Assets | 32,484 | 32,859 | | Total Current Liabilities | 13,899 | 14,216 | | Net Assets | 87,283 | 88,216 | | Cash and Cash Equivalents | 11,809 | 13,155 | | Total Equity | 87,283 | 88,216 | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, total shareholders' equity decreased from HKD 88.22 million at the beginning of the period to HKD 87.28 million at the end, primarily due to a loss of HKD 2.39 million for the period, partially offset by HKD 1.31 million in other comprehensive income from asset revaluation - Equity attributable to owners of the Company decreased from **HKD 90.80 million** to **HKD 89.72 million**, primarily due to a total comprehensive loss of **HKD 1.08 million** recorded during the period[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash flow from operating activities for the period was HKD 1.33 million, a significant decrease from HKD 8.02 million in the prior period, with both investing and financing activities resulting in net cash outflows, and the period-end cash and cash equivalents balance at HKD 11.81 million, a decrease of HKD 1.35 million from the beginning of the period Condensed Consolidated Statement of Cash Flows | Cash Flow Activities | For the Six Months Ended June 30, 2025 (Thousand HKD) | For the Six Months Ended June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 1,327 | 8,024 | | Net Cash Flows Used in Investing Activities | (443) | (86) | | Net Cash Flows Used in Financing Activities | (2,230) | (4,109) | | Net Decrease in Cash and Cash Equivalents | (1,346) | 3,829 (Increase) | | Cash and Cash Equivalents at End of Period | 11,809 | 14,112 | [Notes to the Financial Statements](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E5%90%88%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes detail key information including the company's accounting policies, business segment performance, revenue composition, and related party transactions, with the Group's operations divided into food processing and trading and restaurant operations, where the former saw revenue growth but the latter significantly declined, with all operations and assets located in Hong Kong, and significant related party transactions also disclosed [Company Information, Basis of Preparation and Accounting Policies](index=9&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99%E3%80%81%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The company is an investment holding company incorporated in the Cayman Islands, primarily engaged in food processing and trading and restaurant operations in Hong Kong, with financial statements presented in HKD and prepared in accordance with Hong Kong Accounting Standards, and new and revised Hong Kong Financial Reporting Standards adopted in the current period having no significant impact on results - The Group's principal activities are processing and trading of fresh food, frozen food, and cooked food, and operating restaurants[12](index=12&type=chunk) - The accounting policies adopted for the preparation of the interim financial information are consistent with those applied in the previous annual financial information, with no significant impact from new accounting standards[16](index=16&type=chunk)[17](index=17&type=chunk) [Segment Information](index=9&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's operations are divided into two segments: food processing and trading (including transportation services) and restaurant operations; during the period, food processing and trading segment revenue increased by 10.8% year-on-year to HKD 48.29 million, while restaurant operations segment revenue significantly decreased by 35.7% year-on-year to HKD 6.82 million, with the food processing segment's loss narrowing and the restaurant segment's performance shifting from profit to a small profit, indicating a substantial decline in profitability Segment Revenue | Segment | Revenue for H1 2025 (Thousand HKD) | Revenue for H1 2024 (Thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Food Processing and Trading | 48,289 | 43,564 | +10.8% | | Restaurant Operations | 6,817 | 10,608 | -35.7% | | **Total** | **55,106** | **54,172** | **+1.7%** | Segment Results | Segment | Results for H1 2025 (Thousand HKD) | Results for H1 2024 (Thousand HKD) | | :--- | :--- | :--- | | Food Processing and Trading | (2,561) | (2,960) | | Restaurant Operations | 324 | 2,143 | - All of the Group's revenue and non-current assets are derived from Hong Kong, with no other geographical segment information available[22](index=22&type=chunk) - Revenue from the largest customer A constituted a significant portion of the food processing and trading segment, contributing **HKD 22.17 million** in revenue during the period, a year-on-year increase of **12.4%**[23](index=23&type=chunk) [Revenue and Taxation](index=11&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E7%A8%85%E9%A0%85) All of the Group's revenue is derived from contracts with customers; by business type, food sales revenue was HKD 48.25 million, and restaurant operations revenue was HKD 6.82 million, with no income tax expense for the period - The Group incurred no income tax expense during the period, consistent with the prior period[29](index=29&type=chunk)[30](index=30&type=chunk) [Dividends and Loss Per Share](index=14&type=section&id=%E8%82%A1%E6%81%AF%E5%8F%8A%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025; basic loss per share was HKD 0.17 cents, compared to HKD 0.03 cents in the prior period, with the expanded loss primarily due to an increase in loss attributable to owners of the Company - The Board does not recommend the payment of an interim dividend[31](index=31&type=chunk) - The weighted average number of ordinary shares used in the calculation of basic loss per share was **1,400,000,000** shares[37](index=37&type=chunk) [Related Party Transactions](index=18&type=section&id=%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) The Group has significant transactions with multiple related parties, including sales of goods to You Xing, Wing Chi, and Wing's Group, and purchases of goods from Wing Chi, all constituting connected transactions under the GEM Listing Rules; additionally, the Group leases properties from related party You Ye for use as a food factory and warehouse Related Party Transactions | Related Party | Type of Transaction | Amount for H1 2025 (Thousand HKD) | | :--- | :--- | :--- | | You Xing | Sales of Goods | 3,930 | | Wing Chi | Sales of Goods | 706 | | Wing Chi | Purchases of Goods | 2,878 | | Wing's Group | Sales of Goods | 3,524 | - The Group leases properties from related party You Ye; as of June 30, 2025, the related right-of-use assets recognized were **HKD 1.85 million**, and lease liabilities were **HKD 2.13 million**[50](index=50&type=chunk) [Management Discussion and Analysis](index=21&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) Management reviewed the period's results, with total revenue slightly increasing by 1.7% year-on-year to HKD 55.10 million, primarily driven by growth in food processing and trading business, despite a decline in restaurant operations revenue; gross profit margin decreased from 45.8% to 40.5%, leading to an expanded loss of HKD 2.20 million for the period, while the Group's financial position remains robust with a low gearing ratio, and it will continue to develop its business in a pragmatic and proactive manner [Business Review and Prospects](index=21&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%89%8D%E6%99%AF) The Group primarily engages in food processing sales and restaurant operations in Hong Kong; through joint ventures established with Wing's and Tin Kwong, the Group participates in the catering business and serves as the main food ingredient supplier for the joint venture restaurants, aiming to enhance future sales and revenue, and will continue to actively develop its business to enhance shareholder value - The Group participates in Hong Kong's catering and food business through joint ventures Wing Tai Catering and Sun King Tai[53](index=53&type=chunk)[54](index=54&type=chunk) - The Group will serve as the primary supplier of food and beverage ingredients for the joint venture restaurants, which is expected to enhance the Group's sales and revenue[55](index=55&type=chunk) [Financial Review](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) For the six months ended June 30, 2025, the Group's revenue increased by 1.7% year-on-year to HKD 55.10 million, with growth in food processing and trading revenue offset by a decline in restaurant operations revenue; gross profit and gross profit margin both decreased to HKD 22.30 million and 40.5% respectively, leading to an expanded loss of HKD 2.20 million for the period due to lower gross profit Financial Performance | Financial Metric | H1 2025 (Million HKD) | H1 2024 (Million HKD) | | :--- | :--- | :--- | | Revenue | 55.10 | 54.20 | | Gross Profit | 22.30 | 24.80 | | Gross Profit Margin | 40.5% | 45.8% | | Loss for the Period | 2.20 | 0.80 | - Employee benefit expenses decreased from **HKD 12.90 million** to **HKD 12.40 million**, primarily due to a reduction in employees responsible for restaurant operations[60](index=60&type=chunk) [Liquidity and Capital Structure](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E8%88%87%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) As of June 30, 2025, the Group's financial position is robust, with net current assets of approximately HKD 18.60 million and cash holdings of HKD 11.80 million; the gearing ratio (calculated as bank borrowings divided by equity) remained low at 2.2%, and the Group adopts a prudent treasury policy with no significant currency risks or capital commitments - The gearing ratio was approximately **2.2%**, a slight decrease from **2.4%** at the end of 2024[65](index=65&type=chunk) - The Group's leasehold land and buildings, with a net book value of approximately **HKD 55.60 million**, have been pledged to secure bank facilities[69](index=69&type=chunk) - The majority of the Group's transactions are denominated in Hong Kong Dollars and US Dollars, posing no significant currency risk[70](index=70&type=chunk) [Other Information](index=25&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section discloses the shareholdings of directors and substantial shareholders, with Grand View Ventures Limited holding 70% of the shares as a substantial shareholder; during the reporting period, the company neither granted any share options nor purchased, sold, or redeemed any securities, and has complied with the Model Code for Securities Transactions by Directors, generally adhering to corporate governance code provisions, with a single deviation regarding the employment status of the company secretary [Directors' and Substantial Shareholders' Interests](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A) Disclosures indicate that directors Ms. Au Hung Lin and Mr. Chung Yuk Wah (spouse) jointly hold 70% of the company's shares; substantial shareholder Grand View Ventures Limited holds 980 million shares, representing 70% of the issued share capital - Substantial shareholder Grand View Ventures Limited holds **980,000,000** shares of the Company, representing **70%** of the shareholding[78](index=78&type=chunk) - No share options have been granted since the adoption of the share option scheme[80](index=80&type=chunk) [Corporate Governance](index=27&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company has adopted the Corporate Governance Code and complied with its provisions during the reporting period, with one deviation: Mr. Tsang Hing Wan, the company secretary, is not an employee of the company; the company has appointed executive director Mr. Lai Ho Yin as a contact person to ensure information flow, and the Audit Committee has reviewed this interim results announcement - The Company complied with the Corporate Governance Code during the reporting period, with a deviation regarding the company secretary not being an employee of the Company[85](index=85&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed this results announcement and is of the opinion that it has complied with applicable accounting standards and made adequate disclosures[86](index=86&type=chunk)

Interim Results Announcement This announcement presents the unaudited interim results of Potent Holdings Limited for the six months ended June 30, 2025, with its shares listed on GEM of the Hong Kong Stock Exchange[2](index=2&type=chunk)[3](index=3&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of Potent Holdings Limited for the six months ended June 30, 2025, including the statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, with comparative data for the same period in 2024 [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement details the company's revenue, costs, and profit for the six months ended June 30, 2025, including comparative figures for the prior year Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 89,940 | 88,811 | 1.3% | | Cost of services | (58,592) | (58,968) | -0.6% | | Gross profit | 31,348 | 29,843 | 5.0% | | Other income | 534 | 1,355 | -60.6% | | Administrative expenses | (15,861) | (17,353) | -8.6% | | Finance costs | (138) | (223) | -38.1% | | Profit before income tax | 15,883 | 13,622 | 16.6% | | Income tax expense | (2,425) | (1,560) | 55.5% | | Profit and total comprehensive income for the period | 13,458 | 12,062 | 11.6% | | Basic and diluted earnings per share (HK cents) | 1.68 | 1.51 | 11.3% | [Unaudited Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the company's assets, liabilities, and equity as of June 30, 2025, compared to December 31, 2024 Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Non-current assets | 7,417 | 10,377 | | Current assets | 158,008 | 167,638 | | Current liabilities | 20,798 | 27,348 | | Net current assets | 146,840 | 130,660 | | Total assets less current liabilities | 154,257 | 141,037 | | Non-current liabilities | 4,647 | 4,885 | | Total equity | 149,610 | 136,152 | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement outlines the changes in the company's equity components for the six months ended June 30, 2025, including share capital, reserves, and retained earnings Summary of Condensed Consolidated Statement of Changes in Equity | Item | Share Capital (HK$ Thousand) | Capital Reserve (HK$ Thousand) | Share Premium (HK$ Thousand) | Retained Earnings (HK$ Thousand) | Total (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2025 (audited) | 8,000 | 17,000 | 64,668 | 46,484 | 136,152 | | Profit and total comprehensive income for the period | – | – | – | 13,458 | 13,458 | | Balance at June 30, 2025 (unaudited) | 8,000 | 17,000 | 64,668 | 59,942 | 149,610 | | **Same period in 2024** | | | | | | | Balance at January 1, 2024 (audited) | 8,000 | 17,000 | 64,668 | 63,429 | 153,097 | | Profit and total comprehensive income for the period | – | – | – | 12,062 | 12,062 | | Balance at June 30, 2024 (unaudited) | 8,000 | 17,000 | 64,668 | 75,491 | 165,159 | [Unaudited Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and the impact on cash and cash equivalents Summary of Condensed Consolidated Statement of Cash Flows | Indicator | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 6,531 | 6,201 | 5.3% | | Net cash used in investing activities | (177) | (405) | -56.3% | | Net cash used in financing activities | (2,189) | (1,801) | 21.5% | | Increase in cash and cash equivalents | 4,165 | 3,995 | 4.3% | | Cash and cash equivalents at beginning of period | 36,542 | 67,547 | -45.9% | | Cash and cash equivalents at end of period | 40,707 | 71,542 | -43.1% | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering company information, accounting policies, and explanations for financial line items [1. Company Information](index=6&type=section&id=1.%20Company%20Information) This section provides essential details about the company's incorporation, listing, principal activities, and ultimate controlling shareholder - Potent Holdings Limited was incorporated in the Cayman Islands on April 18, 2018, and listed on GEM of the Hong Kong Stock Exchange on September 13, 2018[8](index=8&type=chunk) - The Group's principal activities are providing engineering design, landscape architecture, and consultancy services in Hong Kong[8](index=8&type=chunk) - The Company's ultimate controlling shareholder is Mr Cheung Kwan Tat[9](index=9&type=chunk) [2. Basis of Preparation and Reorganisation](index=6&type=section&id=2.%20Basis%20of%20Preparation%20and%20Reorganisation) This section outlines the accounting standards used for preparing the unaudited condensed consolidated financial statements and confirms consistency with prior annual reports - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and presented in Hong Kong dollars, with all amounts rounded to the nearest thousand[10](index=10&type=chunk) - The accounting policies adopted in this period are consistent with those used in the preparation of the annual report[11](index=11&type=chunk) [3. Revenue and Other Income](index=7&type=section&id=3.%20Revenue%20and%20Other%20Income) This section details the breakdown of the Group's revenue by service nature and other income sources, along with their respective changes [3.1 Revenue](index=7&type=section&id=3.1%20Revenue) This subsection provides a detailed classification of revenue by service type and the expected timing for recognizing remaining performance obligations Revenue by Service Nature | Service Type | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Civil engineering | 71,182 | 69,512 | 2.4% | | Traffic engineering | 11,558 | 12,390 | -6.8% | | Building engineering | 2,888 | 3,015 | -4.1% | | Landscape architecture | 2,720 | 2,887 | -5.8% | | Other ancillary services | 1,592 | 1,007 | 58.1% | | **Total Revenue** | **89,940** | **88,811** | **1.3%** | Expected Timing for Recognition of Remaining Performance Obligations | Expected Recognition Date | As of June 30, 2025 (HK$ Thousand) | | :--- | :--- | | Year ending June 30, 2026 | 180,726 | | Year ending June 30, 2027 | 81,778 | | After June 30, 2027 | 30,437 | | **Total** | **292,941** | [3.2 Other Income](index=8&type=section&id=3.2%20Other%20Income) This subsection details the components of other income, including bank interest and government subsidies, and explains the reasons for their changes Details of Other Income | Item | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 263 | 681 | -61.4% | | Government subsidies | 258 | 674 | -61.7% | | Miscellaneous income | 13 | – | N/A | | **Total** | **534** | **1,355** | **-60.6%** | - Government subsidies primarily originate from the Vocational Training Council and Construction Industry Council in Hong Kong, supporting on-the-job training for trainee engineers and interns[16](index=16&type=chunk) [4. Segment Information](index=8&type=section&id=4.%20Segment%20Information) This section explains the Group's approach to segment reporting, noting its single operating segment and primary geographical focus [Segment Information](index=8&type=section&id=Segment%20Information) The Group operates as a single segment, providing engineering design, landscape architecture, and consultancy services - The Group considers its business of providing engineering design, landscape architecture, and consultancy services as a single operating segment, thus no segment analysis is presented[17](index=17&type=chunk) [Geographical Information](index=8&type=section&id=Geographical%20Information) Due to the concentration of revenue and non-current assets in Hong Kong, no geographical segment information is presented - As the Group's revenue and non-current assets are primarily concentrated in Hong Kong, no geographical segment information is presented[18](index=18&type=chunk) [5. Profit Before Income Tax](index=9&type=section&id=5.%20Profit%20Before%20Income%20Tax) This section details the components contributing to profit before income tax, including staff costs, depreciation, and other operating expenses Components of Profit Before Income Tax | Item | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Staff costs (including Directors' emoluments) | 57,643 | 55,969 | 3.0% | | Depreciation (owned assets) | 776 | 892 | -13.0% | | Depreciation (right-of-use assets) | 2,159 | 2,001 | 7.9% | | Sub-consultancy fees | 4,885 | 7,232 | -32.4% | | Auditor's remuneration | 415 | 400 | 3.8% | | Operating lease expenses in respect of leased properties | 974 | 1,157 | -15.8% | [6. Income Tax Expense](index=10&type=section&id=6.%20Income%20Tax%20Expense) This section provides a breakdown of income tax expense, including current and deferred tax, and explains the applicable tax rates Details of Income Tax Expense | Item | Six Months Ended June 30, 2025 (HK$ Thousand) | Six Months Ended June 30, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax – Hong Kong Profits Tax | 2,329 | 1,724 | 35.1% | | Deferred income tax | 95 | (164) | N/A | | **Total Income Tax Expense** | **2,424** | **1,560** | **55.4%** | - Hong Kong Profits Tax provision is calculated at **16.5%**, with the first **HK$2 million** of assessable profits for eligible entities taxed at **8.25%**[20](index=20&type=chunk) [7. Earnings Per Share](index=10&type=section&id=7.%20Earnings%20Per%20Share) This section details the calculation of basic and diluted earnings per share, based on the profit attributable to equity holders and the number of ordinary shares Earnings Per Share Calculation | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (HK$ Thousand) | 13,458 | 12,062 | 11.6% | | Number of ordinary shares (Thousand shares) | 800,000 | 800,000 | 0.0% | | **Basic Earnings Per Share (HK cents)** | **1.68** | **1.51** | **11.3%** | - Diluted earnings per share are the same as basic earnings per share due to the absence of potential dilutive ordinary shares[22](index=22&type=chunk) [8. Dividends](index=10&type=section&id=8.%20Dividends) This section announces the interim dividend declared by the Board and highlights the significant reduction compared to the prior year - The Board declared an interim dividend of **HK$0.0125 per ordinary share** for 2025, totaling **HK$10 million**, a significant decrease from **HK$45 million** in the same period of 2024[23](index=23&type=chunk) [9. Trade and Other Receivables](index=11&type=section&id=9.%20Trade%20and%20Other%20Receivables) This section provides a detailed breakdown and aging analysis of trade and other receivables, along with the Group's credit policy Details of Trade and Other Receivables | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables (net of allowance) | 78,775 | 69,081 | 14.0% | | Other receivables | 14,355 | 16,115 | -10.9% | | Prepayments | 2,616 | 1,472 | 77.7% | | Utility and other deposits | 344 | 349 | -1.4% | | **Total** | **96,090** | **87,017** | **10.4%** | - The Group typically grants credit terms of **0 to 60 days** to its customers[25](index=25&type=chunk) Aging Analysis of Trade Receivables | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 17,378 | 18,478 | | 31 to 60 days | 12,057 | 13,208 | | 61 to 90 days | 7,688 | 7,391 | | 91 to 365 days | 26,024 | 19,753 | | Over 365 days | 15,628 | 10,251 | | **Total** | **78,775** | **69,081** | - Other receivables primarily represent salaries and medical insurance for on-site staff fully reimbursed by Hong Kong SAR government agencies[27](index=27&type=chunk) [10. Trade and Other Payables](index=12&type=section&id=10.%20Trade%20and%20Other%20Payables) This section presents the breakdown and aging analysis of trade and other payables, along with the credit terms granted by suppliers Details of Trade and Other Payables | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 1,921 | 5,055 | -62.0% | | Accruals and other payables | 13,162 | 15,618 | -15.8% | | **Total** | **15,083** | **20,673** | **-27.1%** | - Suppliers generally grant the Group credit terms of **0 to 30 days**[28](index=28&type=chunk) Aging Analysis of Trade Payables | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 993 | 3,298 | | 31 to 60 days | 158 | 404 | | 61 to 90 days | 44 | 200 | | 91 to 365 days | – | 609 | | Over 365 days | 726 | 544 | | **Total** | **1,921** | **5,055** | [11. Share Capital](index=13&type=section&id=11.%20Share%20Capital) This section outlines the company's share capital structure, including authorized and issued share capital Share Capital Structure | Item | Number of Shares | Amount (HK$ Thousand) | | :--- | :--- | :--- | | Authorized share capital (ordinary shares of HK$0.01 par value each) | 1,500,000,000 | 15,000 | | Issued and fully paid share capital | 800,000 | 8,000 | [12. Reserves](index=13&type=section&id=12.%20Reserves) This section describes the nature and purpose of the company's capital reserves and share premium [Capital Reserve](index=13&type=section&id=Capital%20Reserve) Capital reserve represents the difference between the nominal value of shares acquired in subsidiaries and the nominal value of shares issued during reorganisation - Capital reserve represents the difference between the nominal value of share capital of subsidiaries acquired and the nominal value of the Company's shares issued during reorganisation[31](index=31&type=chunk) [Share Premium](index=13&type=section&id=Share%20Premium) Share premium includes the difference between the nominal value of the company's shares and the net proceeds from share issuance, usable for distributions or dividends under certain conditions - Share premium includes the difference between the nominal value of the Company's shares and the net proceeds from share issuance, which can be used for distributions or dividends to shareholders, subject to the Company's ability to pay its debts as they fall due[32](index=32&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section discusses the Group's business development, financial performance, liquidity, employee policies, and risk management strategies for the six months ended June 30, 2025, maintaining a cautious optimistic outlook [Business Development and Prospects](index=14&type=section&id=Business%20Development%20and%20Prospects) This section outlines the Group's core business as a Hong Kong engineering consultant, highlights profit growth, and expresses a cautious optimistic outlook for future operational efficiency and market expansion - The Group is a Hong Kong engineering consultant focused on infrastructure development[33](index=33&type=chunk) - Net profit for the period was approximately **HK$13.5 million**, an increase from **HK$12.1 million** in the same period last year, primarily due to increased project tender invitations and cost-saving measures[33](index=33&type=chunk) - The Board remains cautiously optimistic about business prospects, committed to enhancing operational efficiency, profitability, and expanding its client base and market share[33](index=33&type=chunk)[34](index=34&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance, including revenue, costs, profit, and tax expenses, for the reporting period [Revenue](index=14&type=section&id=Revenue) Revenue increased by HK$1.1 million or 1.3% to HK$89.9 million, primarily due to an increase in projects awarded during the period - Revenue increased by **HK$1.1 million** or **1.3%** to **HK$89.9 million**, primarily due to an increase in projects awarded during the period[35](index=35&type=chunk) [Direct Costs](index=14&type=section&id=Direct%20Costs) Direct costs remained stable at approximately HK$58.6 million compared to the same period last year - Direct costs were approximately **HK$58.6 million**, remaining stable compared to the same period last year[36](index=36&type=chunk) [Gross Profit](index=14&type=section&id=Gross%20Profit) Gross profit increased by HK$1.5 million or 5.0% to HK$31.3 million, driven by higher revenue and stable direct costs - Gross profit increased by **HK$1.5 million** or **5.0%** to **HK$31.3 million**, primarily due to increased revenue and stable direct costs[37](index=37&type=chunk) [Other Income and Other Gains](index=15&type=section&id=Other%20Income%20and%20Other%20Gains) Other income and other gains decreased by HK$0.8 million or 60.6% to HK$0.5 million, mainly due to lower bank interest income and reduced government subsidies - Other income and other gains decreased by **HK$0.8 million** or **60.6%** to **HK$0.5 million**, primarily due to lower bank interest income resulting from decreased interest rates and reduced government subsidies[38](index=38&type=chunk) [Administrative Expenses](index=15&type=section&id=Administrative%20Expenses) Administrative expenses decreased by HK$1.5 million or 8.6% to HK$15.9 million, mainly due to cost-saving measures implemented after the acquisition of Geo-Environmental Consultants Limited - Administrative expenses decreased by **HK$1.5 million** or **8.6%** to **HK$15.9 million**, primarily due to cost-saving measures implemented following the acquisition of Geo-Environmental Consultants Limited[39](index=39&type=chunk) [Income Tax Expense](index=15&type=section&id=Income%20Tax%20Expense) Income tax expense increased by HK$0.9 million or 55.5% to HK$2.4 million, primarily due to higher assessable profits during the period - Income tax expense increased by **HK$0.9 million** or **55.5%** to **HK$2.4 million**, primarily due to an increase in assessable profits for the period[40](index=40&type=chunk) [Dividends](index=15&type=section&id=Dividends) The Board resolved to declare an interim dividend of HK$0.0125 per ordinary share, payable on or around September 30, 2025 - The Board resolved to declare an interim dividend of **HK$0.0125 per ordinary share**, payable on or around September 30, 2025[41](index=41&type=chunk) [Closure of Register of Members](index=15&type=section&id=Closure%20of%20Register%20of%20Members) The register of members will be closed from August 25 to August 27, 2025, to determine eligibility for the interim dividend - To determine eligibility for the interim dividend, the register of members will be closed from **August 25 to August 27, 2025**[42](index=42&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=Liquidity%20and%20Financial%20Resources) This section discusses the Group's liquidity position, including cash and cash equivalents, net current assets, total equity, and treasury policies - The Group primarily funds its operations through cash generated from operating activities[43](index=43&type=chunk) [Cash and Cash Equivalents and Time Deposits](index=16&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Time%20Deposits) Cash and bank balances increased to approximately HK$40.7 million as of June 30, 2025, from HK$36.5 million at December 31, 2024 - As of June 30, 2025, cash and bank balances were approximately **HK$40.7 million**, an increase from **HK$36.5 million** as of December 31, 2024[44](index=44&type=chunk) [Net Current Assets](index=16&type=section&id=Net%20Current%20Assets) Net current assets increased to approximately HK$146.8 million as of June 30, 2025, from HK$130.7 million at December 31, 2024 - As of June 30, 2025, net current assets were approximately **HK$146.8 million**, an increase from **HK$130.7 million** as of December 31, 2024[45](index=45&type=chunk) [Total Equity](index=16&type=section&id=Total%20Equity) Total equity attributable to owners of the Company increased to approximately HK$149.6 million as of June 30, 2025, from HK$136.2 million at December 31, 2024 - As of June 30, 2025, total equity attributable to owners of the Company was approximately **HK$149.6 million**, an increase from **HK$136.2 million** as of December 31, 2024[46](index=46&type=chunk) [Capital Structure](index=16&type=section&id=Capital%20Structure) There were no changes in the Group's capital structure during the period or up to the announcement date - There were no changes in the Group's capital structure during the period and up to the date of this announcement[47](index=47&type=chunk) [Treasury Policy](index=16&type=section&id=Treasury%20Policy) The Group adopts a prudent treasury policy, maintaining a sound liquidity position and managing credit risk through continuous credit assessments - The Group adopts a prudent treasury policy, maintaining a sound liquidity position and managing credit risk through continuous credit assessments[48](index=48&type=chunk) [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[49](index=49&type=chunk) [Employees and Remuneration Policy](index=16&type=section&id=Employees%20and%20Remuneration%20Policy) This section details the Group's employee count, commitment to attractive remuneration and a fair work environment, and the stock option scheme for talent retention - As of June 30, 2025, the Group had **481 employees**, an increase from **473** as of December 31, 2024[50](index=50&type=chunk) - The Group is committed to providing attractive remuneration packages and a fair and harmonious working environment, regularly reviewing its human resources policies to comply with laws and regulations[51](index=51&type=chunk) - The Company adopted a share option scheme in **2018** to incentivize, attract, and retain outstanding employees[51](index=51&type=chunk) [Material Investments, Acquisitions or Disposals of Subsidiaries, Associates and Joint Ventures](index=17&type=section&id=Material%20Investments%2C%20Acquisitions%20or%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the six months ended June 30, 2025, the Group did not undertake any material investments, acquisitions, or disposals - For the six months ended June 30, 2025, the Group did not make any material investments, acquisitions, or disposals[52](index=52&type=chunk) [Capital Risk Management and Financial Risk Management](index=17&type=section&id=Capital%20Risk%20Management%20and%20Financial%20Risk%20Management) This section details the Group's strategies for managing capital and financial risks, including capital structure optimization, gearing ratio, and foreign exchange exposure [Capital Management](index=17&type=section&id=Capital%20Management) The Group manages capital to ensure continuous operation and maximize shareholder returns by optimizing the balance between debt and equity - The Group manages capital to ensure continuous operation and maximize returns for shareholders by optimizing the balance between debt and equity[53](index=53&type=chunk) [Gearing Ratio](index=17&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was zero - As of June 30, 2025, the Group's gearing ratio was **zero**[54](index=54&type=chunk) [Foreign Exchange Risk](index=17&type=section&id=Foreign%20Exchange%20Risk) All the Group's assets, liabilities, and transactions are denominated in Hong Kong dollars, indicating no significant foreign exchange risk and thus no hedging instruments are used - All the Group's assets, liabilities, and transactions are denominated in Hong Kong dollars, and the Directors believe there is no significant foreign exchange risk, thus no hedging instruments are employed[55](index=55&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) This section covers various disclosures including competition, securities trading, GEM Listing Rules compliance, directors' and major shareholders' interests, corporate governance, and audit committee operations [Competition and Conflicts of Interest](index=18&type=section&id=Competition%20and%20Conflicts%20of%20Interest) During the period, no directors, controlling shareholders, or their close associates engaged in competing businesses or had other conflicts of interest with the Group - During the period, none of the Directors, controlling shareholders, or their close associates engaged in any business that competes or may compete with the Group's business, nor did any other conflicts of interest arise[56](index=56&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=18&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[57](index=57&type=chunk) [Disclosure Obligations under GEM Listing Rules](index=18&type=section&id=Disclosure%20Obligations%20under%20GEM%20Listing%20Rules) The Company has no other disclosure obligations under Rules 17.22, 17.23, and 17.24 of the GEM Listing Rules - The Company has no other disclosure obligations under Rules 17.22, 17.23, and 17.24 of the GEM Listing Rules[58](index=58&type=chunk) [Disclosure of Interests and Other Information](index=18&type=section&id=Disclosure%20of%20Interests%20and%20Other%20Information) This section details the interests and short positions of directors, chief executives, and substantial shareholders in the Company's shares and underlying shares [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares or Debentures of the Company and its Associated Corporations](index=18&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20or%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) This subsection details the long positions held by directors in the Company's ordinary shares, including interests through controlled corporations Directors' Long Positions in Ordinary Shares of the Company | Director's Name | Nature of Interest | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Cheung Kwan Tat | Interest in controlled corporation | 576,000,000 | 72.00% | | Ng Pak Hung | Beneficial owner | 24,000,000 | 3.00% | - Mr Cheung Kwan Tat's interest is held through his controlled corporation, Wai Wing Investment Holdings Limited[59](index=59&type=chunk) - Save as disclosed above, no other Directors or chief executives had any interests or short positions in the shares of the Company or its associated corporations[62](index=62&type=chunk) [Interests and Short Positions of Substantial Shareholders and Other Persons in the Shares and Underlying Shares of the Company](index=19&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20the%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) This subsection details the long positions held by substantial shareholders and other persons in the Company's ordinary shares, including deemed interests Substantial Shareholders' Long Positions in Ordinary Shares of the Company | Substantial Shareholder's Name/Name | Nature of Interest | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Cheung Kwan Tat | Interest in controlled corporation | 576,000,000 | 72.00% | | Chiu Chui Ping | Spouse's interest | 576,000,000 | 72.00% | | Wai Wing Investment Holdings Limited | Beneficial owner | 576,000,000 | 72.00% | - Ms Chiu Chui Ping is deemed to be interested in the Company's shares through the interest of her spouse, Mr Cheung Kwan Tat[63](index=63&type=chunk) - Save as disclosed above, the Company is not aware of any other persons who had interests or short positions of **5% or more** in the Company's shares[64](index=64&type=chunk) [Corporate Governance Practices](index=20&type=section&id=Corporate%20Governance%20Practices) This section outlines the Company's commitment to high corporate governance standards, including a deviation from the Code Provision C.2.1 regarding the roles of Chairman and CEO - The Company is committed to maintaining high standards of corporate governance, based on the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules[65](index=65&type=chunk) - The Company deviates from Code Provision C.2.1 of the Corporate Governance Code, with Mr Cheung Kwan Tat serving concurrently as Chairman and Chief Executive Officer, an arrangement the Board believes facilitates business strategy execution and provides strong leadership without compromising the balance of power[66](index=66&type=chunk) - The Board will regularly review the effectiveness of this arrangement and consider separating the roles of Chairman and Chief Executive Officer when appropriate[67](index=67&type=chunk) [Directors' Securities Transactions](index=21&type=section&id=Directors%27%20Securities%20Transactions) The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed full compliance during the period - The Company has adopted Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for Directors' securities transactions, and all Directors have confirmed full compliance during the period[68](index=68&type=chunk) [Share Option Scheme](index=21&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme in 2018, revised in 2022, but no options have been granted since its adoption - The Company adopted a share option scheme on **August 20, 2018**, and revised it on **December 30, 2022**, but no share options have been granted thereunder since its adoption[69](index=69&type=chunk) [Audit Committee](index=21&type=section&id=Audit%20Committee) The Audit Committee has been established to advise on external auditors, review financial statements, and assess financial, internal control, and risk management systems - The Audit Committee has been established, with responsibilities including advising on external auditors, reviewing financial statements, and assessing financial controls, internal controls, and risk management systems[70](index=70&type=chunk) - The unaudited interim results for the period have been reviewed by the Audit Committee members, who provided advice and opinions[70](index=70&type=chunk) [Significant Events After Reporting Period](index=22&type=section&id=Significant%20Events%20After%20Reporting%20Period) As of the announcement date, the Directors are not aware of any other significant events related to the Group's business or financial performance - As of the date of this announcement, the Directors are not aware of any other significant events related to the Group's business or financial performance[71](index=71&type=chunk) [Board Information and Website Publication](index=22&type=section&id=Board%20Information%20and%20Website%20Publication) This announcement will be published on the HKEX and Company websites for at least seven days, listing the executive and independent non-executive directors - This announcement will be published on the HKEX website and the Company's website for at least **seven days**[72](index=72&type=chunk) - As of the date of this announcement, the executive Directors are Mr Cheung Kwan Tat and Mr Ng Pak Hung, and the independent non-executive Directors are Ms Chik Wai Chun, Mr Pang Chun Sing, and Mr Chan Kai Kau[71](index=71&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，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 Cryofocus Medtech (Shanghai) Co., Ltd. 截至2025年6月30日止六個月的中期業績公告 財務摘要 截至6月30日止六個月 2025年 2024年 （未經審核） （未經審核） 人民幣千元 人民幣千元 收入 51,106 19,475 毛利 34,312 15,281 研發開支 (17,907) (37,222) 期內虧損 (27,221) (55,953) 業務摘要 於報告期間及截至本公告日期，我們在產品管線及業務營運方面取得多項進 展，包括但不限於： • 我們的收入由截至2024年6月30日止六個月的的人民幣19.5百萬元增加至截 至2025年6月30日止六個月的人民幣51.1百萬元，增加人民幣31.6百萬元， 增幅為162.4%，主要受於2025年3月獲國家藥監局批准的惡性狹窄冷凍消 融系統及冷凍粘連治療系統等呼吸介入產品的銷量增加所帶動。此外，波 科國際醫療貿易（ ...

[Performance Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) The company achieved approximately RMB 1,084.2 million in revenue, a 11.1% year-on-year increase, with profit attributable to owners of the parent growing by 30.7% Performance Indicators (RMB million) | Indicator | H1 2025 | Year-on-year Growth | | :--- | :--- | :--- | | Revenue | Approx. 1,084.2 | +11.1% | | Gross Profit | Approx. 444.3 | +16.2% | | Profit attributable to owners of the parent | Approx. 272.9 | +30.7% | | Earnings per share (RMB) | Approx. 0.59 | +18.0% | | Proposed interim dividend (RMB per share, pre-tax) | 0.15 | - | [Financial Statements](index=2&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides an overview of the Group's consolidated financial statements, including profit or loss, comprehensive income, and financial position [Consolidated Statement of Profit or Loss](index=2&type=section&id=%E5%90%88%E5%B9%B6%E6%8D%9F%E7%9B%8A%E8%A1%A8) In H1 2025, the Group's revenue reached RMB 1.084 billion, a 11.1% year-on-year increase; profit before tax was RMB 317 million, up 29.0%; and profit for the period was RMB 273 million, up 30.7%, with basic and diluted earnings per share at RMB 0.59 Consolidated Statement of Profit or Loss (RMB thousand) | Item | H1 2025 (Unaudited) | H1 2024 (Unaudited) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 1,084,235 | 976,396 | +11.1% | | Gross Profit | 444,280 | 382,354 | +16.2% | | Profit before tax | 316,851 | 245,698 | +29.0% | | Profit for the period | 272,865 | 208,732 | +30.7% | | Earnings per share (RMB) | 0.59 | 0.50 | +18.0% | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E5%90%88%E5%B9%B6%E7%BB%BC%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) Profit for the period was RMB 273 million, with an additional RMB 8.04 million from exchange differences on translation of overseas operations, resulting in a total comprehensive income of RMB 281 million for the period, a 29.6% year-on-year increase Consolidated Statement of Comprehensive Income (RMB thousand) | Item | H1 2025 (Unaudited) | H1 2024 (Unaudited) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Profit for the period | 272,865 | 208,732 | +30.7% | | Exchange differences on translation of overseas operations | 8,042 | 7,959 | +1.0% | | Total comprehensive income for the period | 280,907 | 216,691 | +29.6% | [Consolidated Statement of Financial Position](index=4&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets increased to RMB 3.251 billion, total liabilities decreased to RMB 735 million, and net assets significantly grew to RMB 2.516 billion, with net current assets increasing substantially, indicating a sound financial position Consolidated Statement of Financial Position (RMB thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 842,954 | 769,809 | +9.5% | | Total current assets | 2,407,840 | 1,618,975 | +48.7% | | **Total Assets** | **3,250,794** | **2,388,784** | **+36.1%** | | Total current liabilities | 663,966 | 732,228 | -9.3% | | Total non-current liabilities | 70,981 | 70,999 | -0.03% | | **Total Liabilities** | **734,947** | **803,227** | **-8.5%** | | **Net Assets** | **2,515,847** | **1,585,557** | **+58.7%** | [Notes to the Financial Statements](index=6&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E8%A7%A3) This section details the Group's operating segments, revenue breakdown, income tax, dividends, and trade receivables, providing further context to the financial statements [Operating Segments and Geographical Information](index=8&type=section&id=2%20%E7%BB%8F%E8%90%A5%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group operates a single business segment, primarily manufacturing and selling resin spectacle lenses, with Mainland China and Asia (excluding Mainland China) being the main revenue sources, accounting for 33.1% and 27.3% of total revenue respectively, and non-current assets primarily concentrated in Mainland China, Japan, and Thailand - The Group primarily operates in a single business segment, manufacturing and selling resin spectacle lenses, thus no segment information is presented[18](index=18&type=chunk) Revenue from External Customers (RMB thousand) | Region | H1 2025 | Percentage | H1 2024 | Percentage | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 359,151 | 33.1% | 301,823 | 30.9% | | Asia (excluding Mainland China) | 295,423 | 27.3% | 241,074 | 24.7% | | Americas | 220,120 | 20.3% | 224,178 | 22.9% | | Europe | 170,518 | 15.7% | 160,937 | 16.5% | | Other | 39,023 | 3.6% | 48,384 | 5.0% | | **Total** | **1,084,235** | **100.0%** | **976,396** | **100.0%** | - For the six months ended June 30, 2025, revenue from the single largest customer was approximately **RMB 100 million**, accounting for approximately **9.2%** of total revenue[21](index=21&type=chunk) [Revenue, Other Income and Gains](index=9&type=section&id=3%20%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E6%89%80%E5%BE%97) Total revenue of RMB 1.084 billion was entirely derived from contracts with customers, with standardized lenses contributing the most at RMB 513 million, a 19.9% year-on-year increase, while functional lenses revenue was RMB 382 million, up 8.8%, and other income and gains primarily stemmed from bank interest income and government grants Revenue by Product Type (RMB thousand) | Product Type | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Standardized lenses | 512,505 | 427,205 | +19.9% | | Functional lenses | 382,266 | 351,410 | +8.8% | | Customized lenses | 184,872 | 194,365 | -4.9% | | Other | 4,592 | 3,416 | +34.4% | | **Total** | **1,084,235** | **976,396** | **+11.1%** | - Other income and gains amounted to **RMB 29.21 million**, a **7.8%** year-on-year increase, primarily due to bank interest income rising from **RMB 2.39 million** to **RMB 9.70 million**[24](index=24&type=chunk) [Income Tax](index=12&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%8E%E8%B4%B9%E7%94%A8) Income tax expense for the period was RMB 43.99 million, a 19.0% year-on-year increase, mainly due to increased profit, with certain Chinese subsidiaries (Jiangsu Conant and Shanghai Conant) enjoying a 15% preferential tax rate for high-tech enterprises, while other subsidiaries apply statutory tax rates of their respective regions - Jiangsu Conant Optical Co., Ltd. and Shanghai Conant Optical Co., Ltd., subsidiaries of the Group, are recognized as "High-tech Enterprises" and enjoy a **15%** preferential corporate income tax rate[28](index=28&type=chunk) Income Tax Expense (RMB thousand) | Tax Item | H1 2025 | H1 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Current tax | 45,010 | 33,833 | +33.0% | | Deferred tax expense | (1,024) | 3,133 | - | | **Total income tax expense for the period** | **43,986** | **36,966** | **+19.0%** | [Dividends](index=14&type=section&id=7.%20%E8%82%A1%20%E6%81%AF) The Board recommended an interim dividend of RMB 0.15 per share (pre-tax) for the six months ended June 30, 2025, and the 2024 final dividend of RMB 0.16 per share was approved and is scheduled for payment on August 11, 2025 - The Board recommended an interim dividend of **RMB 0.15** per ordinary share (pre-tax) for 2025[31](index=31&type=chunk)[63](index=63&type=chunk) - The 2024 final dividend of **RMB 0.16** per share (pre-tax), totaling **RMB 76.79 million**, was approved at the annual general meeting on June 14, 2025, and is scheduled for payment on August 11, 2025[31](index=31&type=chunk)[70](index=70&type=chunk) [Trade and Bills Receivables](index=15&type=section&id=10.%20%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE%E5%8F%8A%E5%BA%94%E6%94%B6%E7%A5%A8%E6%8D%AE) Net trade receivables increased from RMB 356 million to RMB 419 million, with receivables within three months accounting for the largest proportion, and the Group has recognized an impairment provision of RMB 61.11 million using a provision matrix and purchased insurance to mitigate credit risk Aging Analysis of Trade Receivables (RMB thousand) | Aging Period | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 318,519 | 305,441 | | 3 to 6 months | 90,764 | 41,772 | | 6 to 12 months | 8,667 | 7,569 | | 1 to 2 years | 668 | 1,080 | | **Total** | **418,618** | **355,862** | - The Group uses a provision matrix to measure expected credit losses; as of June 30, 2025, the gross carrying amount of trade receivables was **RMB 480 million**, with an expected credit loss provision of **RMB 61.11 million**, resulting in an overall expected credit loss rate of **12.7%**[38](index=38&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section analyzes the Group's business performance, financial results, capital structure, and outlines significant investments and future strategic plans [Business Review and Outlook](index=18&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE%E5%8F%8A%E5%B1%95%E6%9C%9B) In H1 2025, the company achieved double-digit growth in revenue and profit through steady expansion of domestic and international business, primarily driven by increased sales of high-value-added products and optimized production efficiency, with future plans to increase R&D, expand overseas production capacity (Japan, Thailand), and actively advance XR business - H1 2025 performance growth is primarily attributable to: (i) orderly expansion of international and domestic business, with stable growth in sales of high-value-added products; and (ii) upgraded automated production lines improving production efficiency and reducing costs[42](index=42&type=chunk) - Future Outlook: - Continue to increase R&D and optimize product structure - Enhance automation levels and expand overseas production capacity, with Japan's customized production line and Thailand's production base to be advanced in the second half of the year - Maintain a differentiated high-end product strategy in the domestic market to increase market share - Continuously advance XR business, collaborating with domestic and international customers, with some projects already achieving product delivery[43](index=43&type=chunk)[44](index=44&type=chunk) [Financial Performance Analysis](index=20&type=section&id=%E8%B4%A2%E5%8A%A1%E8%A1%A8%E7%8E%B0%E5%88%86%E6%9E%90) Revenue grew by 11.1% to RMB 1.084 billion, and the gross profit margin increased from 39.2% to 41.0%, primarily due to increased sales of high-refractive index and multi-functional lenses, with gross profit margins improving across all lens types, and financial asset impairment losses significantly decreasing by 59.1% due to effective cost control - Revenue increased by **11.1%** year-on-year, primarily due to (i) sales growth achieved through various channels; and (ii) continuous upgrading of products and services and optimization of product portfolio[45](index=45&type=chunk) - Overall gross profit margin increased from **39.2%** to **41.0%**, primarily due to increased sales of high-refractive index lenses and multi-functional lenses[47](index=47&type=chunk) Product Segment Gross Profit Margin | Product Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Standardized lenses | 33.6% | 30.8% | | Functional lenses | 40.6% | 37.8% | | Customized lenses | 61.9% | 59.5% | - Impairment loss on financial assets significantly decreased by **59.1%** year-on-year to **RMB 3.20 million**, primarily due to an increased collection rate of receivables[53](index=53&type=chunk) [Capital Structure, Liquidity and Funding](index=22&type=section&id=%E8%B5%84%E6%9C%AC%E6%9E%B6%E6%9E%84) As of the period end, total assets increased by 36.1%, total liabilities decreased by 8.5%, and the gearing ratio decreased from 33.6% to 22.6%, with the current ratio increasing from 2.2 times to 3.6 times, and cash and cash equivalents increasing to RMB 786 million, primarily due to proceeds from additional share issuance, leading to a decrease in the debt-to-equity ratio (total borrowings/total equity) to 8.2% Financial Ratios | Financial Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio (Total liabilities/Total assets) | 22.6% | 33.6% | | Current ratio | 3.6 times | 2.2 times | | Debt-to-equity ratio (Total borrowings/Total equity) | 8.2% | 18.3% | - Cash and cash equivalents increased from **RMB 499 million** to **RMB 786 million**, a **57.5%** year-on-year increase, primarily due to the receipt of proceeds from the additional share issuance by Hong Kong Goertek Co., Limited[58](index=58&type=chunk) - As of June 30, 2025, total bank credit facilities amounted to **RMB 722 million**, with **RMB 206 million** utilized[60](index=60&type=chunk) [Material Investments and Future Plans](index=26&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84) In H1, the Group held financial wealth management products valued at RMB 531 million, and is advancing the construction of its Thailand production base, having paid RMB 92.27 million for land, while also planning to invest approximately USD 4 million in Japan to build a high-end customized lens production line to deepen its global footprint - As of June 30, 2025, the Group held financial assets measured at fair value through profit or loss amounting to **RMB 531 million**, primarily funds or wealth management products issued by large financial institutions[68](index=68&type=chunk) - Material investment plans include: - Thailand investment: Accumulated land payments of **RMB 92.27 million** for the construction of factory buildings and supporting facilities - Japan investment: Plans to invest approximately **USD 4 million** through a subsidiary to build an automated lens production line for resin lenses, focusing on high-end customized lenses[69](index=69&type=chunk) [Other Information](index=27&type=section&id=%E5%85%B6%E4%BB%96%E8%B5%84%E6%96%99) This section provides additional information on the Group's share repurchases, new share issuances, and the utilization of proceeds from past offerings [Share Repurchases and Issuance](index=30&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E5%9B%9E%E8%B4%AD%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) In H1 2025, the company repurchased 2.2 million shares through the trustee of its share award scheme, and additionally, placed and issued 53.325 million new H shares to Hong Kong Goertek Co., Limited in January 2025 - In H1 2025, **2.2 million** shares of the company's listed securities were repurchased through the trustee of the share award scheme[80](index=80&type=chunk) - On January 6, 2025, **53,325,000** H shares were placed and issued to Hong Kong Goertek Co., Limited at a placing price of **HKD 15.86**[80](index=80&type=chunk) [Use of Proceeds](index=31&type=section&id=%E6%9C%AA%E6%9D%A5%E8%AE%A1%E5%88%92%E5%8F%8A%E6%89%80%E5%BE%97%E6%AC%BE%E9%A1%B9%E7%94%A8%E9%80%94) As of June 30, 2025, approximately 98.6% of the net proceeds of HKD 474 million from the 2021 global offering have been utilized, and approximately HKD 49.3 million of the net proceeds of approximately HKD 829 million from the January 2025 H share placing have been used, primarily for R&D, design, and manufacturing of lenses and visual solutions for smart glasses and XR headsets - As of June 30, 2025, approximately **HKD 467 million** of the net proceeds of approximately **HKD 474 million** from the 2021 global offering have been utilized, representing a utilization rate of **98.6%**[82](index=82&type=chunk) - Approximately **HKD 49.3 million** of the net proceeds of approximately **HKD 829 million** from the January 2025 H share placing have been used for R&D, design, and manufacturing of lenses and visual solutions for smart glasses and XR head-mounted devices; approximately **HKD 351 million** of the remaining proceeds have been temporarily arranged for subscription of financial products[84](index=84&type=chunk)