滨海泰达物流(08348) - 2025 - 中期业绩

General Information Company Overview & Regulatory Context Tianjin Binhai Teda Logistics (Group) Corporation Limited (Stock Code: 8348) released its unaudited condensed consolidated financial results for the six months ended June 30, 2025, with its H-shares listed on the HKEX GEM in 2008 - Company Name: Tianjin Binhai Teda Logistics (Group) Corporation Limited*[2] - Stock Code: 8348[2] - Reporting Period: Six months ended June 30, 2025[2] - Listing Venue: Hong Kong Stock Exchange GEM (listed on April 30, 2008)[3][31] GEM Market Characteristics The GEM market, designed for small and medium-sized companies, carries higher investment risks, with securities potentially facing significant market volatility and uncertain liquidity - The GEM market provides a listing platform for small and medium-sized companies, carrying higher investment risks[6][10] - GEM securities may be subject to significant market volatility and high liquidity cannot be guaranteed[7][10] Financial Highlights Financial Highlights Summary For the six months ended June 30, 2025, the company's operating revenue decreased by 35.35% year-on-year, gross profit declined by 27.86%, but gross profit margin slightly increased, while profit attributable to owners grew by 59.11% to RMB 0.3 cents per share 2025 H1 Financial Highlights | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,215,637 | 1,880,472 | -35.35% | | Gross Profit | 15,533 | 21,532 | -27.86% | | Gross Profit Margin | 1.28% | 1.15% | +0.13 percentage points | | Profit Attributable to Owners of the Company | 969 | 609 | +59.11% | | Earnings Per Share | 0.3 cents | 0.2 cents | +50.00% | Unaudited Consolidated Interim Results for 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group reported revenue of RMB 1,215,637 thousand, a loss for the period of RMB (3,350) thousand, and profit attributable to owners of RMB 969 thousand Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 1,215,637 | 1,880,472 | | Cost of Sales | (1,200,104) | (1,858,940) | | Gross Profit | 15,533 | 21,532 | | Administrative Expenses | (23,139) | (19,235) | | Operating Profit | (2,585) | 10,433 | | Finance Costs | (6,039) | (10,351) | | Profit Before Income Tax | (2,926) | 4,551 | | Profit for the Period | (3,350) | 3,229 | | Profit Attributable to Owners of the Company | 969 | 609 | | Earnings Per Share (RMB cents) | 0.3 | 0.2 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 1,426,060 thousand, total liabilities were RMB 447,179 thousand, and total equity was RMB 978,881 thousand Condensed Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 832,279 | 899,063 | | Current Assets | 593,781 | 893,878 | | Total Assets | 1,426,060 | 1,792,941 | | Equity and Liabilities | | | | Equity Attributable to Owners of the Company | 885,858 | 885,098 | | Non-controlling Interests | 93,023 | 97,343 | | Total Equity | 978,881 | 982,441 | | Non-current Liabilities | 59,377 | 59,682 | | Current Liabilities | 387,802 | 750,818 | | Total Liabilities | 447,179 | 810,500 | | Total Equity and Liabilities | 1,426,060 | 1,792,941 | | Net Current Assets | 205,979 | 143,060 | Condensed Consolidated Statement of Changes in Equity As of June 30, 2025, equity attributable to owners was RMB 885,858 thousand, with a profit for the period of RMB 969 thousand and treasury share repurchases Condensed Consolidated Statement of Changes in Equity (Summary) | Indicator | June 30, 2025 (RMB thousands) | January 1, 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company (Beginning of Period) | 885,098 | 887,279 | | Profit and Total Comprehensive Income for the Period | 969 | 609 | | Repurchases | (209) | — | | Equity Attributable to Owners of the Company (End of Period) | 885,858 | 887,888 | | Non-controlling Interests (End of Period) | 93,023 | 100,325 | | Total Equity (End of Period) | 978,881 | 988,213 | Condensed Consolidated Cash Flow Statement For the six months ended June 30, 2025, net cash inflow from operating activities was RMB 17,482 thousand, net cash inflow from investing activities was RMB 83,530 thousand, net cash outflow from financing activities was RMB 127,429 thousand, and the net decrease in cash and cash equivalents was RMB 26,417 thousand Condensed Consolidated Cash Flow Statement (Summary) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash From/(Used in) Operating Activities | 17,482 | 25,811 | | Net Cash From/(Used in) Investing Activities | 83,530 | (14,640) | | Net Cash From/(Used in) Financing Activities | (127,429) | (89,225) | | Net Decrease in Cash and Cash Equivalents | (26,417) | (78,054) | | Cash and Cash Equivalents at End of Period | 287,548 | 262,247 | Notes to the Condensed Consolidated Financial Information 1. General The company, established in China in 2006 as an investment holding company with Teda Holding and Tianjin Economic-Technological Development Area Asset Management Co., Ltd. as major shareholders, completed the conversion of all domestic shares to H-shares in 2023, focusing on integrated logistics services in China - The company was established in China on June 26, 2006, as an investment holding company[28][31] - On October 26, 2023, the company completed the conversion of all domestic shares into H-shares[33][36] - The Group's principal activities are the provision of integrated logistics services in China, including supply chain solutions and materials procurement and related logistics services[33][36] 2. Basis of Preparation The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), the Hong Kong Companies Ordinance, and Chapter 18 of the GEM Listing Rules - The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS)[34][37] - They also comply with the disclosure requirements of the Hong Kong Companies Ordinance and Chapter 18 of the GEM Listing Rules[34][37] 3. Significant Accounting Policies During this interim period, IFRS amendments issued by the IASB were first applied, with no significant impact on the Group's financial position or performance - The Group first applied IFRS 21 (Amendments) "Lack of Exchangability" during the interim period[35][38] - These amendments had no significant impact on the Group's financial position or performance for the current and prior periods[35][38] 4. Segment Information The Group's operating segments are categorized into four main types: supply chain and logistics services for finished automobiles and components, materials procurement and related logistics services, warehousing and multimodal transport services, and other services, with this section detailing each segment's revenue and performance - The Group's operating segments include: supply chain and logistics services for finished automobiles and components, materials procurement and related logistics services, warehousing and multimodal transport services, and other services[40] H1 2025 Segment Revenue and Results (RMB thousands) | Segment | Revenue from External Customers | Segment Results | | :--- | :--- | :--- | | Supply Chain and Logistics Services for Finished Automobiles and Components | 433,421 | (9,318) | | Materials Procurement and Related Logistics Services | 760,029 | 2,304 | | Warehousing and Multimodal Transport Services | 11,597 | 1,102 | | All Other Segments | 10,590 | 1,342 | | Total | 1,215,637 | (4,570) | H1 2024 Segment Revenue and Results (RMB thousands) | Segment | Revenue from External Customers | Segment Results | | :--- | :--- | :--- | | Supply Chain and Logistics Services for Finished Automobiles and Components | 507,270 | 4,314 | | Materials Procurement and Related Logistics Services | 1,353,222 | 424 | | Warehousing and Multimodal Transport Services | 12,500 | 634 | | All Other Segments | 7,480 | (80) | | Total | 1,880,472 | 5,292 | 5. Other Income, Other Gains and Losses - Net For the six months ended June 30, 2025, other income, other gains and losses, net, amounted to RMB 6,429 thousand, primarily derived from interest income Other Income, Other Gains and Losses - Net (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest Income | 6,067 | 4,758 | | Others | 362 | 398 | | Total | 6,429 | 5,156 | 6. Finance Costs For the six months ended June 30, 2025, finance costs totaled RMB 6,039 thousand, mainly comprising interest on borrowings Finance Costs (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest on Borrowings | 5,802 | 9,636 | | Interest on Lease Liabilities | 237 | 715 | | Total | 6,039 | 10,351 | 7. Expenses by Nature For the six months ended June 30, 2025, total cost of sales and administrative expenses amounted to RMB 1,223,243 thousand, including depreciation and amortization of RMB 25,406 thousand Expenses by Nature (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 25,406 | 20,105 | | Other Expenses | 10,082 | 11,576 | | Cost of Sales | 1,187,755 | 1,846,494 | | Total Cost of Sales and Administrative Expenses | 1,223,243 | 1,878,175 | 8. Income Tax Expenses For the six months ended June 30, 2025, income tax expense was RMB 424 thousand, with China's corporate income tax rate at 25% Income Tax Expenses (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | The Company and its Subsidiaries | 424 | 1,322 | - China's corporate income tax rate is 25%[52][54] 9. Dividend The Board of Directors recommends no interim dividend for the six months ended June 30, 2025 - The Board of Directors recommends no interim dividend for H1 2025 (H1 2024: nil)[53][55] 10. Earnings Per Share For the six months ended June 30, 2025, basic and diluted earnings per share were RMB 0.3 cents, based on a weighted average of 353,790 thousand shares Earnings Per Share (RMB cents) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (RMB thousands) | 969 | 609 | | Basic and Diluted Earnings Per Share (RMB cents) | 0.3 | 0.2 | | Weighted Average Number of Shares for Basic and Diluted EPS (thousand shares) | 353,790 | 354,312 | 11. Property, Plant and Equipment During the reporting period, the Group's capital expenditure on property, plant, and equipment was approximately RMB 1,301 thousand, an increase from the same period last year - Capital expenditure on property, plant, and equipment in H1 2025 was RMB 1,301 thousand, an increase from RMB 454 thousand in H1 2024[58][59] 12. Trade Receivables, Bills and Other Receivables As of June 30, 2025, total trade receivables, bills, and other receivables significantly decreased to RMB 359,589 thousand from RMB 563,435 thousand on December 31, 2024, with a higher proportion of receivables aged over one year Trade Receivables, Bills and Other Receivables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables (Net) | 93,701 | 149,703 | | Bills Receivable (Net) | 1,691 | 4,813 | | Other Receivables (Net) | 230,369 | 286,707 | | Prepayments to Suppliers (Net) | 129,220 | 276,728 | | Total Trade and Other Receivables | 359,589 | 563,435 | Aging Analysis of Trade Receivables and Bills Receivable (RMB thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0-90 days | 92,227 | 152,467 | | 91-180 days | 1,441 | 621 | | 181-365 days | 1,210 | 1,259 | | Over 1 year | 201,808 | 201,639 | | Total | 296,686 | 355,986 | 13. Trade and Other Payables As of June 30, 2025, total trade and other payables significantly decreased to RMB 213,585 thousand from RMB 383,219 thousand on December 31, 2024 Trade and Other Payables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables | 141,567 | 189,548 | | Bills Payable | 43,930 | 151,600 | | Other Payables, Accruals and Other Taxes Payable | 28,088 | 42,071 | | Total Trade and Other Payables | 213,585 | 383,219 | Aging Analysis of Trade Payables and Bills Payable (RMB thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0-90 days | 183,952 | 188,191 | | 91-180 days | 1,330 | 151,651 | | 181-365 days | 9 | 605 | | Over 1 year | 206 | 701 | | Total | 185,497 | 341,148 | 14. Borrowings As of June 30, 2025, the Group's outstanding borrowings totaled RMB 152,095 thousand, all classified as short-term with no long-term borrowings exceeding one year Borrowings Outstanding (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Borrowings | 152,095 | 260,119 | - As of June 30, 2025, all borrowings were short-term, with no long-term borrowings exceeding one year[113][117] 15. Share Capital As of June 30, 2025, the company's share capital was RMB 354,103 thousand, following the repurchase of 522,000 H-shares Share Capital Information (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Share Capital | 354,103 | 354,312 | | Treasury Shares (thousand shares) | 522 | — | | Number of H-shares (thousand shares) | 353,790 | 354,312 | 16. Capital Commitments The Group had no capital commitments during the reporting period - The Group had no capital commitments during the reporting period[72][74] 17. Related Party Disclosures The Group engaged in significant transactions with state-controlled entities in China, including raw material procurement and logistics fuel, while key management personnel compensation increased - The Group engaged in significant transactions with state-controlled entities in China, including raw material procurement and logistics fuel[73][75] - For the six months ended June 30, 2025, short-term benefits for key management personnel amounted to RMB 2,420 thousand, an increase from the prior year[76][79] 18. Financial Guarantee Liabilities As of June 30, 2025, the Group had no significant financial guarantee liabilities - As of June 30, 2025, the Group had no significant financial guarantee liabilities[77][80] 19. Comparative Figures Certain comparative figures have been reclassified to conform with the current period's presentation - Certain comparative figures have been reclassified to conform with the current period's presentation[78][81] Management Discussion and Analysis Financial Review During the reporting period, the Group experienced a decrease in operating revenue and gross profit, but profit attributable to owners significantly increased, primarily due to the reduction of low-margin businesses, lower finance costs, and reduced losses from associates Operating Income - Operating income for the first half of 2025 was RMB 1,215,637 thousand, a year-on-year decrease of 35.35%[82][85] - The decline in revenue was primarily due to the reduction in scale of low-margin materials procurement services and a decrease in volume and price for supply chain and logistics services for finished automobiles and components[82][85] Cost of Sales and Gross Profit - Cost of sales decreased by 35.44% year-on-year to RMB 1,200,104 thousand[83][86] - Gross profit decreased by 27.86% year-on-year to RMB 15,533 thousand, mainly due to reduced volume and price adjustments in high-margin automotive logistics business and severance payments for personnel streamlining[83][86] Administrative Expenses - Administrative expenses increased by 20.30% year-on-year to RMB 23,139 thousand[84][87] - The increase was primarily due to severance payments arising from personnel streamlining in the supply chain and logistics services for finished automobiles and components segment[84][87] Finance Costs - Finance costs decreased by 41.66% year-on-year to RMB 6,039 thousand[88][92] - The company reduced interest expenses by decreasing financing scale and interest rates[88][92] Taxation Expenses - Taxation expenses decreased by 67.93% year-on-year to RMB 424 thousand[89][93] - The decrease was mainly due to reduced income tax resulting from losses in the supply chain and logistics services for finished automobiles and components business[89][93] Share of Results of Joint Ventures and Associates - Share of results of joint ventures and associates increased by 27.50% year-on-year to RMB 5,698 thousand[90][94] - The increase was primarily due to reduced losses from associate Gangwan Automobile year-on-year[90][94] Profit for the Period Attributable to Equity Holders of the Company - Profit for the period attributable to equity holders of the Company increased by 59.11% year-on-year to RMB 969 thousand[91][95] - The profit growth was mainly attributable to increased gross profit from materials procurement services and reduced finance costs[91][95] Business Review This section provides a detailed review of the Group's operational performance across its main business segments, including automotive logistics, materials procurement, warehousing and multimodal transport, and other services, analyzing key drivers of revenue and performance changes Supply Chain and Logistics Services for Finished Automobiles and Components - Operating revenue decreased by 14.56% year-on-year to RMB 433,421 thousand[97][102] - Operating results showed a loss of RMB 9,318 thousand, a year-on-year decrease of 315.99%[97][102] - Revenue decline was due to fewer imported vehicles and vessels and loss of parts business orders; performance decline was due to price adjustments in high-margin businesses and severance payments for personnel streamlining[98][102] Materials Procurement Services - Operating revenue decreased by 43.84% year-on-year to RMB 760,029 thousand[99][103] - Operating results increased by 443.4% year-on-year to RMB 2,304 thousand[99][103] - Revenue decreased due to proactive reduction of low-margin businesses, while performance increased due to higher volume in high-margin projects[100][103] Warehousing and Multimodal Transport Business - Operating revenue decreased by 7.22% year-on-year to RMB 11,597 thousand[104][109] - Operating results increased by 73.82% year-on-year to RMB 1,102 thousand[104][109] - Revenue decline was due to insufficient market demand and rental pressure; performance growth was due to refined management, optimized structure, and reduced labor costs through personnel streamlining[105][109] Other Services - Operating revenue increased by 41.58% year-on-year to RMB 10,590 thousand[106][110] - Operating results increased by 1777.5% year-on-year to RMB 1,342 thousand[106][110] - Revenue and performance growth were primarily due to the normalization of operations from new leases at Beigang yard[107][110] Supply Chain and Logistics Services for Electronic Components (Operated Through Investments in Joint Ventures) - The performance of the joint venture's electronic components supply chain logistics services remained largely consistent with the prior year[108][111] - Achieved a net operating profit of RMB 13,569 thousand (a year-on-year increase of 2.35%), contributing RMB 6,649 thousand to profit (a year-on-year increase of 2.11%)[108][111] Liquidity, Financial Resources and Capital Structure The Group's working capital primarily stems from net cash inflow from operating activities and bank borrowings; as of June 30, 2025, total assets were RMB 1,426,060 thousand, total liabilities were RMB 447,179 thousand, and the gearing ratio was approximately 31.36% Borrowings Structure - As of June 30, 2025, outstanding borrowings totaled RMB 152,095 thousand (December 31, 2024: RMB 260,119 thousand)[113][117] - All borrowings are short-term, with no long-term borrowings exceeding one year[113][117] - Domestic bank-guaranteed borrowings have an annual interest rate of 4.5%-5.0%[113][117] Charge on Assets of the Group - As of June 30, 2025, investment properties of RMB 298,400 thousand and bank deposits of RMB 17,994 thousand were pledged as collateral for borrowings and bills payable[114][118] Gearing Ratio - As of June 30, 2025, the gearing ratio was approximately 31.36% (December 31, 2024: approximately 45.21%)[115][119] - The gearing ratio is calculated as total liabilities divided by total assets[115][119] Foreign Exchange Risk The Group's operating income and expenses are primarily denominated in RMB, with no significant investments outside mainland China, though subsidiary Tianjin Toyota Logistics Co., Ltd. generated foreign exchange gains of RMB 215 thousand from USD and JPY operations during the period - The Group's all operating income and expenses are denominated in RMB[120][125] - Subsidiary Tianjin Toyota Logistics Co., Ltd. has foreign currency operations in USD, JPY, etc., generating foreign exchange gains of RMB 215 thousand in H1 2025[121][125] Material Acquisitions and Disposals The Group had no material acquisitions or disposals during the reporting period - The Group had no material acquisitions or disposals during the reporting period[122][126] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[123][127] Employees During the reporting period, the Group's total employees decreased significantly to 551 from 1,011 in the same period of 2024, primarily due to workforce streamlining at Tianjin Toyota Logistics Co., Ltd. amid declining business volume, with staff costs approximately RMB 68,364 thousand - In H1 2025, the Group's total employees were 551 (H1 2024: 1,011), with the decrease primarily due to personnel streamlining at Tianjin Toyota Logistics Co., Ltd. amid declining business volume[124][128] - Staff costs (including directors' and supervisors' remuneration) were approximately RMB 68,364 thousand[124][128] Prospects and Outlook Outlook Summary In the first half of 2025, China's economy grew steadily with increasing logistics demand, yet the industry faced intensified competition and rising costs; the Group maintained stability through strategic adjustments and refined operations, optimizing profitability across segments, and will focus on high-quality development, strengthening core business, enhancing cost control, and expanding new markets for improved efficiency and quality in the second half - In H1 2025, China's GDP grew by 5.3% year-on-year, with total social logistics increasing by 5.6% year-on-year[129][131] - The logistics industry faces multi-dimensional operational pressures, including intensified market competition, rigid cost increases, and fluctuations in the international environment[129][131] - The Group mitigated pressure on its automotive logistics business through proactive cost reduction, optimization of business structure, and deepened customer collaboration, while enhancing profitability of materials procurement and warehousing businesses through scaling back low-margin operations, cost control, and model innovation[129][131] - In the second half, the Group will focus on its core businesses, expand automotive logistics, promote innovation in warehousing and multimodal transport business models, and steadily advance the transformation and quality improvement of materials procurement business to achieve dual enhancement in quality and efficiency[130][132] Other Information Directors' and Chief Executives' Interests and/or Short Positions in Shares, Underlying Shares and Debentures of the Company or Any of Its Associated Corporations As of June 30, 2025, the Company's directors and chief executives held no interests or short positions in shares, underlying shares, or debentures requiring disclosure under the SFO, nor were they granted or exercised any rights to subscribe for shares - As of June 30, 2025, directors and chief executives held no disclosable interests or short positions in shares, underlying shares, or debentures[133][135] - Directors and chief executives were also not granted or exercised any rights to subscribe for the Company's shares[134][136] Substantial Shareholders and Persons Holding Interests and Short Positions in the Shares and Underlying Shares of the Company As of June 30, 2025, Tianjin TEDA Investment Holding Co., Ltd., Chia Tai Pharmaceutical Investment (Beijing) Co., Ltd., Chia Tai Land Co., Ltd., and Tianjin Port Development Holdings Limited were substantial shareholders, holding 42.45%, 21.82%, 8%, and 5.64% of shares, respectively Substantial Shareholder Holdings (as of June 30, 2025) | Name | Capacity | Number of H-shares | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | Tianjin TEDA Investment Holding Co., Ltd. | Beneficial Owner | 150,420,051 (L) | 42.45% | | Chia Tai Pharmaceutical Investment (Beijing) Co., Ltd. | Beneficial Owner | 77,303,789 (L) | 21.82% | | Chia Tai Land Co., Ltd. | Beneficial Owner | 28,344,960 (L) | 8% | | Tianjin Port Development Holdings Limited | Beneficial Owner | 20,000,000 (L) | 5.64% | - Chia Tai Land, Chia Tai Pharmaceutical, and their associates are deemed to have interests under Part XV of the Securities and Futures Ordinance[140][141][142] Competing Interests None of the Company's directors, controlling shareholders, substantial shareholders, or their associates engaged in any business competing or likely to compete with the Group's business, nor did they have any other conflicts of interest with the Group - None of the directors, controlling shareholders, substantial shareholders, or their associates engaged in any business that competes or may compete with the Group's business[144][148] - There were also no other conflicts of interest with the Group[144][148] Change in Information of Director or Chief Executive As of the report date, the Company was not aware of any changes in information of directors or chief executives requiring disclosure under the GEM Listing Rules - As of the report date, the Company was not aware of any changes in information of directors or chief executives requiring disclosure under GEM Listing Rule 17.50A(1)[145][149] Change of Name of Accountant The Company's Hong Kong auditor, SHINEWING (HK) CPA Limited, changed its name to Rongcheng (Hong Kong) CPA Limited on June 30, 2025 - The Hong Kong auditor, SHINEWING (HK) CPA Limited, changed its name to Rongcheng (Hong Kong) CPA Limited on June 30, 2025[146][150] Corporate Governance Code During the reporting period, the Company consistently complied with all provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules - During the reporting period, the Company consistently complied with all provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules[151][154] Audit Committee The Company established an Audit Committee in accordance with the GEM Listing Rules, which reviewed the unaudited results for the reporting period, comprising independent non-executive directors, with Professor Cheng Xinsheng as Chairman possessing appropriate professional qualifications and financial experience - The Company established an Audit Committee in accordance with the GEM Listing Rules and has reviewed the unaudited results for the reporting period[152][155] - The Audit Committee comprises independent non-executive directors, with Chairman Professor Cheng Xinsheng possessing appropriate professional qualifications and financial experience[152][155] Securities Transactions by Directors The Company adopted a code for securities transactions by directors, and all directors confirmed compliance with this code - The Company adopted a code for securities transactions by directors, and all directors confirmed compliance with this code[153][156] Purchase, Sale or Redemption of Listed Securities of the Company During the reporting period, the Company repurchased a total of 522,000 H-shares on GEM; other than this, neither the Company nor its subsidiaries purchased, redeemed, sold, or cancelled any listed securities - In H1 2025, the Company repurchased a total of 522,000 H-shares on GEM[157][159] - Other than the aforementioned repurchase, neither the Company nor its subsidiaries purchased, redeemed, sold, or cancelled any listed securities[157][159]