北京北辰实业股份(00588) - 2025 - 中期业绩

Company Announcements and Financial Summary This section provides an overview of the company's interim results and key financial highlights Interim Results Announcement Unaudited H1 2025 results show decreased revenue and expanded losses attributable to ordinary shareholders | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 3,019,320 | 3,429,871 | -11.97% | | Operating Loss | (1,137,652) | (355,699) | Loss increased by 781,953 | | Loss Attributable to Ordinary Shareholders | (1,647,124) | (769,580) | Loss increased by 877,544 | | Core Operating Loss (after tax, excluding fair value changes) | (1,475,877) | (586,427) | Loss increased by 889,450 | | Fair Value Change Loss on Investment Properties (after tax) | (171,247) | (183,153) | Decreased by 11,906 | Interim Condensed Consolidated Financial Statements This section presents the company's interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position Interim Condensed Consolidated Statement of Profit or Loss H1 2025 saw RMB 3.019 billion revenue, a gross loss, and expanded operating and period losses | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 3,019,320 | 3,429,871 | | Cost of Sales | (3,327,281) | (2,941,989) | | Gross Loss / Profit | (307,961) | 487,882 | | Operating Loss | (1,137,652) | (355,699) | | Finance Costs – Net | (473,734) | (350,972) | | Loss Before Income Tax | (1,609,845) | (706,872) | | Loss for the Period | (1,765,459) | (880,432) | | Loss Attributable to Ordinary Shareholders of the Company | (1,647,124) | (769,580) | | Loss Per Share (Basic and Diluted) | (48.92) cents | (22.86) cents | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's total comprehensive loss for the period was RMB 1.765 billion, consistent with the loss for the period, with no other comprehensive income | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (1,765,459) | (880,432) | | Other Comprehensive Income | – | – | | Total Comprehensive Loss for the Period | (1,765,459) | (880,432) | | Attributable to Ordinary Shareholders of the Company | (1,647,124) | (769,580) | Interim Condensed Consolidated Statement of Financial Position Total assets decreased by 5.73% to RMB 54.316 billion as of June 30, 2025, with ordinary shareholders' equity down 10.12% | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Assets | 54,315,622 | 57,619,449 | | Non-current Assets | 20,120,058 | 20,580,436 | | Current Assets | 34,195,564 | 37,039,013 | | Total Liabilities | 37,080,146 | 39,268,837 | | Non-current Liabilities | 20,499,763 | 23,017,509 | | Current Liabilities | 16,580,383 | 16,251,328 | | Net Assets | 17,235,476 | 18,350,612 | | Equity Attributable to Ordinary Shareholders of the Company | 14,636,281 | 16,283,405 | - Equity attributable to ordinary shareholders of the Company decreased by 10.12% compared to December 31, 2024, primarily due to the loss incurred during the period[90] Notes to the Financial Statements This section provides detailed notes to the interim financial statements, covering accounting policies, segment information, operating loss, finance costs, and tax expenses 1. Summary of Significant Accounting Policies and Basis of Preparation Interim financial information is prepared under HKAS 34, with accounting policies consistent with 2024 annual statements, and HKAS 21 amendments having no material impact - Interim financial information is prepared in accordance with HKAS 34 and has been reviewed but not audited[10][11] - The amendment to HKAS 21 "Lack of Exchangeability" became effective on January 1, 2025, and was first adopted, but it has no material impact on the Group's interim financial information[11][12] 2. Segment Information Segment information shows Convention, Exhibition (including Hotel) and Commercial Properties' profit slightly up, while Property Development's loss significantly widened - The Board assesses business based on product and service perspectives, with primary segments being Convention, Exhibition (including Hotel) and Commercial Properties and Property Development[13] - Segment results are evaluated based on adjusted loss before income tax, excluding fair value losses on investment properties, but including land appreciation tax and depreciation/impairment provisions for investment properties[13] 2.1 Segment Revenue Convention, Exhibition (including Hotel) and Commercial Properties revenue increased, while Property Development revenue decreased, leading to an overall group revenue decline | Segment | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Convention, Exhibition (including Hotel) and Commercial Properties | 1,476,714 | 1,248,098 | +18.32% | | Property Development | 1,461,344 | 2,079,049 | -29.71% | | Other Segments | 81,262 | 102,724 | -20.90% | | Total Revenue | 3,019,320 | 3,429,871 | -11.97% | | Revenue Type | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue recognized at a point in time | 1,681,085 | 2,478,389 | | Revenue recognized over time | 618,808 | 488,827 | 2.2 Segment Results Convention, Exhibition (including Hotel) and Commercial Properties' profit before tax slightly increased, while Property Development's loss significantly widened | Segment | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Convention, Exhibition (including Hotel) and Commercial Properties | 201,526 | 198,372 | +1.59% | | Property Development | (1,606,723) | (801,340) | Loss widened by 100.49% | | Other Segments | (26,631) | (34,567) | Loss narrowed by 22.96% | | Reportable Segment Loss Before Income Tax | (1,431,828) | (637,535) | Loss widened by 124.59% | 2.3 Segment Assets and Liabilities Total segment assets were RMB 40.283 billion and liabilities RMB 21.535 billion as of June 30, 2025, with property development holding the largest asset share | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Segment Assets | 40,283,161 | 42,883,165 | | Total Segment Liabilities | 21,535,488 | 22,866,101 | | Contract Liabilities | 1,818,089 | 1,475,855 | | Additions to Non-current Assets | 13,181 | 103,727 | 2.4 Segment Reconciliation Items Revenue from opening contract liabilities decreased significantly, with reconciliation items including headquarters expenses, finance costs, and investment property fair value losses | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue recognized from opening contract liabilities balance | 526,953 | 1,459,686 | -63.90% | | Revenue recognized by Property Development segment | 248,997 | 1,341,945 | -81.45% | | Reconciliation Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Reportable Segment Loss Before Income Tax | (1,431,828) | (637,535) | | Fair Value Loss on Investment Properties | (228,821) | (245,672) | | Reversal of Depreciation and Impairment Losses on Investment Properties | 146,930 | 203,401 | | Land Appreciation Tax | (25,559) | 78,128 | | Loss Before Income Tax | (1,609,845) | (706,872) | - All revenue from external customers is generated in China, with no significant revenue from specific external customers[30][31] 3. Operating Loss Operating loss was primarily driven by a significant increase in impairment losses on properties under development and completed properties held for sale | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Fair value loss on investment properties expensed in profit or loss | (228,821) | (245,672) | Decreased by 7.06% | | Impairment losses on properties under development and completed properties held for sale | (1,077,353) | (478,572) | Increased by 125.13% | | Net impairment losses on financial assets | (60,932) | (133,539) | Decreased by 54.37% | | Government grants | 3,763 | 1,075 | Increased by 250.05% | | Investment income | 8,350 | 26,738 | Decreased by 68.86% | - Impairment losses on properties under development and completed properties held for sale are included in cost of sales in the interim condensed consolidated statement of profit or loss[33] 4. Finance Income and Costs Net finance costs increased by 35.00% to RMB 474 million, primarily due to reduced capitalized interest | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Interest expense | (532,611) | (626,436) | Decreased by 14.98% | | Less: Amount capitalized in properties under development | 43,320 | 206,150 | Decreased by 78.98% | | Finance costs | (489,291) | (420,286) | Increased by 16.42% | | Finance income – interest income | 19,974 | 72,307 | Decreased by 72.38% | | Net Finance Costs | (473,734) | (350,972) | Increased by 35.00% | 5. Income Tax Expense Income tax expense was RMB 156 million, slightly lower than prior year, with standard corporate and land appreciation taxes applicable | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | China Corporate Income Tax | 92,946 | 175,727 | | China Land Appreciation Tax | (25,559) | 78,128 | | Deferred Income Tax | 88,227 | (80,295) | | Income Tax Expense | 155,614 | 173,560 | - China Corporate Income Tax rate is 25%, with certain high-tech enterprises (e.g., Shoudu Convention & Exhibition and North Star Times Convention & Exhibition) subject to a 15% rate[36] - The company is subject to Land Appreciation Tax at progressive rates ranging from 30% to 60%[36] 6. Loss Per Share H1 2025 basic and diluted loss per share significantly widened to RMB 0.4892 from RMB 0.2286 in the prior year | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss Attributable to Ordinary Shareholders of the Company (RMB thousands) | (1,647,124) | (769,580) | | Number of Ordinary Shares Issued (thousands of shares) | 3,367,020 | 3,367,020 | | Loss Per Share (Basic and Diluted, RMB cents) | (48.92) | (22.86) | - The company had no potential dilutive ordinary shares for the six months ended June 30, 2025, thus diluted loss per share is equal to basic loss per share[39] 7. Dividends The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, and no final dividend was declared for the year ended December 31, 2024 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[42] - The annual general meeting in May 2025 resolved not to declare a final dividend for the year ended December 31, 2024[42] 8. Trade and Other Receivables and Prepayments Total trade receivables increased to RMB 343 million as of June 30, 2025, with a notable rise in older receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 65,143 | 125,889 | | 31 to 90 days | 39,516 | 29,836 | | Over 90 days | 237,854 | 125,985 | | Total Trade Receivables | 342,513 | 281,710 | - The Group's majority of sales are conducted on a cash or prepayment basis, with the remaining amounts having credit terms of 30 to 90 days[43] 9. Trade and Other Payables and Borrowings from Other Parties Total trade payables decreased to RMB 4.103 billion as of June 30, 2025, with the largest portion being long-aged | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 180 days | 803,263 | 1,499,404 | | 181 to 365 days | 515,678 | 578,138 | | Over 365 days | 2,784,375 | 2,587,259 | | Total Trade Payables | 4,103,316 | 4,664,801 | Reconciliation of Differences between PRC GAAP and HKFRS Reconciliation of PRC GAAP and HKFRS financial data highlights differences in investment property depreciation reversal and fair value adjustments | Item | H1 2025 Loss Attributable to Owners (RMB thousands) | H1 2024 Loss Attributable to Owners (RMB thousands) | June 30, 2025 Equity Attributable to Owners (RMB thousands) | December 31, 2024 Equity Attributable to Owners (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Under PRC GAAP | (1,585,414) | (738,317) | 8,113,729 | 9,699,143 | | Reversal of investment property depreciation and impairment under PRC GAAP | 109,537 | 151,890 | 2,995,689 | 2,886,152 | | Fair value adjustment of investment properties under HKFRS | (171,247) | (183,153) | 3,526,863 | 3,698,110 | | Under HKFRS | (1,647,124) | (769,580) | 14,636,281 | 16,283,405 | Discussion of the Company's Industry and Principal Business Operations During the Reporting Period This section outlines the company's business segments and the broader industry trends impacting its operations during the reporting period (I) Business Overview Core businesses include convention, exhibition (including hotel) and commercial properties, and property development, focusing on full industry chain and national expansion - The company's Convention, Exhibition (including Hotel) business, relying on Shoudu Convention & Exhibition, strengthens the expansion of new businesses and technologies in the MICE industry, actively promoting a full industry chain layout and becoming a professional operator for the CIFTIS[47] - Commercial property business, relying on Beijing North Star Commercial Management Co., Ltd., provides professional asset operation and property management services for various asset types, including office buildings, apartments, and integrated commercial properties[48] - Property development business has formed a multi-regional, multi-level national development layout, with projects distributed in 15 core cities including Beijing-Tianjin-Hebei, the Yangtze River Economic Belt, Chengdu-Chongqing urban cluster, Hainan Free Trade Port, and the Guangdong-Hong Kong-Macao Greater Bay Area[49] (II) Industry Development H1 2025 saw China's GDP grow 5.3%, rapid MICE sector development, recovering hotel occupancy, and a stabilizing Beijing office market, with the property market repairing - China's GDP grew by 5.3% in H1 2025, with the economy operating steadily and showing positive momentum overall[50] - The MICE industry developed rapidly, with expanding market scale, accelerated digital transformation, and significantly enhanced internationalization; hotel occupancy moderately recovered, but average room rates were under pressure[51] - The property market continued its repair trend, with increased policy support from central and local governments, but transaction volume slightly decreased in H1, with commercial residential sales area down 3.7% YoY and sales value down 5.2% YoY[52] Analysis of Core Competencies During the Reporting Period Core competencies include leading convention and exhibition brand influence, integrated property development, and low financing costs from its 'headquarters financing' model - The company leverages nearly 30 years of professional MICE operation and international service experience, actively building a MICE ecosystem, and organizing major exhibitions such as CIFTIS and China Refrigeration Expo[54] - MICE venue management scale remains number one nationwide, having entered 33 cities and regions through self-owned and asset-light management output models[54] - The company possesses integrated property development and operation capabilities, covering multiple property types, and actively innovates development models, promoting the linkage of "MICE + Property" projects[54] - Utilizing the advantages of its "headquarters financing" model, the company has established strategic partnerships with multiple banks and financial institutions, maintaining relatively low financing costs, and actively exploring diversified financing channels such as medium-term notes, corporate bonds, and asset securitization[55] Discussion and Analysis of Operations This section provides a detailed review of the company's operating performance and strategic initiatives across its business segments (I) Operating Review H1 2025 revenue decreased by 11.97% to RMB 3.019 billion, primarily due to lower property development settlement, leading to significantly expanded losses | Indicator | H1 2025 (RMB tens of thousands) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 301,932.0 | -11.97% | | Loss Before Tax | 160,984.5 | Loss increased by 90,297.3 | | Loss Attributable to Ordinary Shareholders | 164,712.4 | Loss increased by 87,754.4 | | Core Operating Loss from Principal Business (after tax, excluding fair value change loss) | 147,587.7 | Loss increased by 88,945.0 | | Fair Value Change Loss on Investment Properties (after tax) | 17,124.7 | - | | Loss Per Share | 0.4892 RMB | - | 1. Convention, Exhibition (including Hotel) and Commercial Properties This segment's revenue rose 18.32% to RMB 1.477 billion, with profit before tax up 1.59%, driven by successful events and expanded management | Indicator | H1 2025 (RMB tens of thousands) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 147,671.4 | +18.32% | | Profit Before Tax | 20,152.6 | +1.59% | - Successfully completed service support for major state and government events, including the 4th Ministerial Meeting of the China-Latin American Forum and the 10th Annual Meeting of the Asian Infrastructure Investment Bank in 2025[57] - Successfully hosted the 29th World Gas Conference and the 2025 China Refrigeration Expo, with the World Gas Conference exhibition area exceeding 50,000 square meters and China Refrigeration Expo reaching 115,000 square meters, both setting new historical highs[57] - Self-owned venues and hotels hosted 1,071 exhibitions and events, a YoY increase of approximately 58.9%; signed 3 new entrusted management projects for venues and hotels, and 3 consulting projects, with management output business now in 33 cities nationwide[58] - The National Convention Center Phase II and Shoudu International Convention & Exhibition Center officially commenced operations, forming a world-class MICE complex and successfully undertaking multiple large-scale conferences and exhibitions[59] - Promoted the normalized operation of the Asian Olympic Business District New Consumption Innovation Alliance, organized "MICE Markets," and developed the "Asian Olympic Consumption Pass" to foster integrated development of "MICE, business, culture, tourism, and sports"[64] - Actively carried out investment promotion for the Chaoyang Data Industrial Park, successfully signing 14 industrial enterprises, contributing to the construction of Beijing's International Science and Technology Innovation Center[66] | Project Name | Business Type | Building Area (square meters) | Rental Income (RMB tens of thousands) | | :--- | :--- | :--- | :--- | | National Convention Center | Conference, Exhibition | 270,800 | 20,011 | | Beijing International Convention Center | Conference, Exhibition | 58,000 | 4,039 | | North Star Times Tower | Office Building | 131,300 | 6,972 | | North Star Century Center | Office Building | 149,800 | 9,503 | | Beijing Wuzhou Hotel | Hotel | 42,000 | 5,233 | | North Star Huiyuan Hotel Apartment | Apartment | 184,300 | 12,518 | | Changsha North Star Delta Joy City | Commercial | 100,000 | 6,482 | 2. Property Development Property development revenue decreased by 29.71% to RMB 1.461 billion, with profit before tax loss widening, due to reduced settlement and lower gross margins | Indicator | H1 2025 | YoY Change | | :--- | :--- | :--- | | Operating Revenue (including parking spaces) | 146,134.4 RMB tens of thousands | -29.71% | | Loss Before Tax | 160,672.3 RMB tens of thousands | Loss increased by 80,538.3 RMB tens of thousands | | Contract Sales Value (including parking spaces) | 2.282 billion RMB | +4.03% | | Sales Area | 174,900 square meters | +15.34% | | Settlement Area | 137,400 square meters | -15.83% | | Settlement Value | 1.461 billion RMB | -29.71% | - The North Star Hongxiang Villa project achieved strong initial sales, with cumulative sales of RMB 480 million; the Chongqing North Star Yuelai No. 1 project achieved sales of RMB 330 million[69] - During the reporting period, the company achieved 1,093,900 square meters of commenced and resumed construction area, 27,400 square meters of completed area, and the A2-1 building of Changsha North Star Delta project was successfully topped out[69][74] - The company's total land reserve is 3,696,900 square meters, with equity land reserve of 3,445,800 square meters, and no new property reserves added[71] - As of the end of the reporting period, the area pending settlement was 198,287 square meters[77] 3. Digital Transformation Digital transformation integrated marketing across segments and established an asset-operations-finance platform to enhance management efficiency - The company integrated digital marketing capabilities across its convention, exhibition, commercial property, and property development segments, forming a unified external digital marketing outlet to enhance resource utilization efficiency and market competitiveness[78] - Completed the construction of an asset-operations-finance integrated digital platform, promoting integrated management of asset management, business operations management, and financial management to improve resource allocation efficiency[78] 4. Financing Activities Total financing reached RMB 23.69 billion, with average financing cost reduced to 3.66%, ensuring stable operational funding | Indicator | Amount (RMB tens of thousands) | | :--- | :--- | | Total Financing at Period End | 2,368,745 | | Overall Average Financing Cost | 3.66% | | Capitalized Interest Amount | 4,332 | - The company strengthened capital planning, enhanced debt control, maintained a stable interest-bearing debt scale, and continuously optimized its debt structure to reduce funding costs[79] (II) Company Development Strategy Strategy focuses on synergistic development and innovation, advancing convention and exhibition, accelerating property transformation, and enhancing commercial property operations - The Convention and Exhibition business segment aims to build an international first-class, domestic leading MICE brand, strengthen the full industry chain layout, fully serve and guarantee state and government events, innovate and enhance the market-oriented operation of CIFTIS, and expand its hosting and organizing business[83] - The Commercial Property business segment aims to build a domestic leading brand in public building and industrial park asset operation and management, deeply promote the innovative development of the Asian Olympic Business District New Consumption Alliance, strengthen asset management, and accelerate the investment promotion and infrastructure construction of industrial parks[84] - The Property Development business segment will focus on the "one core, two wings" strategy, accelerate the disposal of existing projects, with an estimated sales area of 288,200 square meters and contract sales of RMB 3.228 billion in H2, and promote deep synergy of "MICE + Property + Commercial Management"[85] - Digital transformation will actively cultivate new digital businesses, systematically promoting digital transformation around the MICE industry's upstream and downstream service ecosystem, the Asian Olympic urban consumption center business district ecosystem, and the company's various business types[86] - In terms of financing and capital expenditure, the company will strengthen capital planning, innovate financing methods, and enhance debt control, with an estimated fixed asset investment of RMB 40 million in H2[87] Risks the Company May Face This section identifies key risks, including market downturns in the property sector and challenges in talent acquisition and retention 1. Market Risk Property market adjustment and subdued buyer confidence may lead to low sales volumes and prices, impacting cash collection efficiency - A sustained downturn in the property market may lead to continued low sales volumes and prices, directly impacting cash collection efficiency and posing risks to the company's operational stability[88] - The company will select cities and regions with mature market development, favorable investment environments, and net population inflow, and is committed to improving its cash collection ratio[88] 2. Talent Reserve Risk Business expansion increases demand for specialized and senior management talent, posing a significant talent shortage risk - The company faces a significant increase in demand for various talents, especially specialized and senior management talent, posing a risk of talent shortage[89] - The company actively builds a "grand talent" work framework, attracting and gathering talent through "excellent training programs," school-enterprise cooperation, and market-oriented recruitment, while strengthening the cultivation of young management talent[89] Discussion and Analysis of Financial Performance This section analyzes the company's financial resources and liquidity position, highlighting changes in equity and debt structure Financial Resources and Liquidity Position Ordinary shareholders' equity decreased by 10.12% due to period losses, with total bank and other borrowings at RMB 13.361 billion and an asset-liability ratio of 68% - Equity attributable to ordinary shareholders of the Company decreased by 10.12% compared to December 31, 2024, primarily due to the loss of RMB 1.647 billion incurred during the period[90] | Borrowing Type | Net Amount at Period End (RMB tens of thousands) | | :--- | :--- | | Bank and Other Borrowings (excluding bonds) | 1,336,060.2 | | Five-year Corporate Bonds | 225,571.3 | | Three-year Corporate Bonds | 32,445.5 | | Two-year Corporate Bonds | 87,289.6 | | Five-year Medium-Term Notes | 330,138.3 | | Three-year Medium-Term Notes | 71,382.8 | | Asset-Backed Special Plan Financing | 285,857.0 | | Indicator | June 30, 2025 (RMB tens of thousands) | | :--- | :--- | | Current Assets | 3,419,556.4 | | Current Liabilities | 1,658,038.3 | | Bank Deposits and Cash (excluding restricted bank deposits) | 623,737.7 | | Asset-Liability Ratio | 68% | - The Group's operations are all conducted within Mainland China and settled in RMB, with no significant foreign exchange fluctuation risk[92] - As of June 30, 2025, outstanding phased guarantees amounted to RMB 4.074 billion, which had no material impact on the financial position[92] Share Capital and Major Shareholder Holdings This section details the company's share capital structure, major shareholder information, and directors' interests Share Capital Total registered share capital was 3,367,020,000 shares as of June 30, 2025, including domestically listed A-shares and overseas listed H-shares | Share Class | Number of Shares | Percentage | | :--- | :--- | :--- | | Domestically Listed A-shares | 2,660,000,000 shares | 79.002% | | Overseas Listed H-shares | 707,020,000 shares | 20.998% | | Total Registered Share Capital | 3,367,020,000 shares | 100% | Major Shareholder Holdings Beijing North Star Industrial Group Co., Ltd. was the largest shareholder as of June 30, 2025, holding 35.02% of total share capital | Shareholder Name | Nature of Interest | Capacity | Share Class | Number of Shares Held | Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing North Star Industrial Group Co., Ltd. | Corporate Interest | Beneficial Owner | A-shares | 1,179,122,931 shares | 35.02% | Directors' Interests No directors, chief executives, or their associates held registrable interests or short positions in the company's or its associated corporations' securities as of June 30, 2025 - As of June 30, 2025, no directors, chief executives, or their respective associates held any registrable interests or short positions in any shares, underlying shares, or debentures of the company or its associated corporations[95] Corporate Governance This section outlines the company's commitment to high corporate governance standards, including compliance with codes and the role of the audit committee Corporate Governance Code The company fully complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, maintaining high governance standards - The company fully complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the period[96] Model Code for Securities Transactions by Directors The company adopted the Model Code, confirming directors and former supervisors complied with its standards during the reporting period - The company has adopted the Model Code, and confirmed that its directors and former supervisors have complied with the required standards set out in the Model Code during the reporting period[97] Audit Committee The Audit Committee, composed of three independent non-executive directors, reviews financial reporting and internal controls, and has reviewed the interim results - The Audit Committee is composed of three independent non-executive directors: Dr. Zhou Yongjian, Mr. Gan Peizhong, and Ms. Qian Aimin[98] - The Audit Committee and the Board have reviewed the Group's unaudited interim results for the six months ended June 30, 2025[98] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[99] Entrusted Deposits and Matured Time Deposits No entrusted deposits were held; all cash deposits were in Chinese commercial banks, with no issues retrieving matured bank deposits - The Group had no entrusted deposits placed with Chinese financial institutions, and all cash deposits were held in commercial banks in China[100] - The Group has not encountered any situations where bank deposits could not be retrieved after maturity[100] Employees The company had 5,039 employees as of June 30, 2025, with performance-based remuneration and regular training, but no share option schemes or bonuses - As of June 30, 2025, the company had 5,039 employees[101] - The company reviews employee remuneration based on performance and profitability, with total employee wages linked to the company's economic benefits, and no share option schemes or bonuses are provided to employees[101] - The company regularly provides training to its operating managers in areas such as business management, foreign languages, computer skills, business knowledge, and policy regulations[101] Staff Quarters The company did not provide any staff quarters to its employees during the reporting period - The company did not provide any staff quarters to its employees during the period[102] Significant Events After the Reporting Period No significant events affecting the company occurred after June 30, 2025, as of the announcement date - No significant events affecting the company occurred after June 30, 2025, and up to the date of this announcement[103] Other Information This section provides details on the publication of the interim report, availability of documents for inspection, and the composition of the Board of Directors Publication of Interim Report The company's 2025 interim report will be published on the HKEX and company websites in due course - The company's 2025 interim report will be published on the HKEX website and the company's website in due course[104] Documents Available for Inspection The original 2025 interim report, signed by the Chairman, will be available for inspection at the Board of Directors' Office - The original copy of the 2025 interim report, signed by the Chairman, will be available for inspection at the Board of Directors' Office[105] Board Composition and Language Discrepancy The Board comprises eight directors, five executive and three independent non-executive, with the Chinese version prevailing in case of discrepancy - The company's Board of Directors consists of eight directors, including Mr. Zhang Jie, Ms. Liang Jie, Mr. Yang Huasen, Ms. Zhang Wenlei, and Mr. Wei Mingqian as executive directors, and Dr. Zhou Yongjian, Mr. Gan Peizhong, and Ms. Qian Aimin as independent non-executive directors[106] - In case of any discrepancy between the Chinese and English versions of this announcement, the Chinese version shall prevail[107]