十月稻田(09676) - 2025 - 中期业绩

Interim Results Announcement Financial Summary The Group announced unaudited interim results for the six months ended June 30, 2025, with revenue increasing by 16.9% year-on-year, gross profit significantly up by 50.1%, but profit for the period decreased by 7.6%, while adjusted net profit achieved a substantial growth of 97.7% Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,063.5 | 2,620.6 | 16.9% | | Gross Profit | 666.9 | 444.3 | 50.1% | | Profit for the Period | 116.2 | 125.8 | (7.6%) | | Adjusted Net Profit | 294.3 | 148.9 | 97.7% | - Adjusted net profit, a non-IFRS measure, provides investors with additional information to better assess overall operating performance[3] Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company saw revenue growth and significant gross profit improvement, but a substantial increase in fair value losses on financial assets led to a year-on-year decline in profit for the period and earnings per share Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,063,455 | 2,620,565 | | Cost of Sales | (2,396,584) | (2,176,281) | | Gross Profit | 666,871 | 444,284 | | Operating Profit | 310,188 | 164,025 | | Fair Value Changes of Financial Assets at FVTPL | (182,111) | (23,109) | | Profit Before Tax | 121,931 | 132,870 | | Profit and Total Comprehensive Income for the Period Attributable to Equity Holders of the Company | 116,226 | 125,761 | | Earnings Per Share (Basic and Diluted) | 0.11 | 0.12 | - Fair value changes of financial assets at fair value through profit or loss increased significantly from RMB 23,109 thousand in 2024 to RMB 182,111 thousand in 2025, primarily causing the decline in profit before tax and profit for the period[4] Consolidated Statement of Financial Position As of June 30, 2025, total assets slightly decreased, mainly due to a reduction in financial assets at fair value through profit or loss, while current liabilities significantly declined, primarily from substantial bank loan repayments, maintaining stable net current assets and net assets Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,791,446 | 1,930,960 | | Financial Assets at FVTPL | 440,727 | 615,055 | | Current Assets | 2,446,109 | 2,682,858 | | Inventories | 1,070,727 | 1,360,169 | | Cash and Bank Balances | 786,721 | 712,972 | | Current Liabilities | 680,249 | 980,303 | | Bank Loans | 200,074 | 645,475 | | Net Current Assets | 1,765,860 | 1,702,555 | | Net Assets | 3,495,819 | 3,554,770 | - Bank loans significantly decreased from RMB 645,475 thousand on December 31, 2024, to RMB 200,074 thousand on June 30, 2025, substantially improving the current liability position[5] Notes to Interim Financial Information Basis of Preparation The interim financial information is prepared in accordance with the Listing Rules of The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 'Interim Financial Reporting', authorized for issue on August 28, 2025, and adopts the same accounting policies as the 2024 annual financial statements, except for anticipated changes in accounting policies - The interim financial information complies with the Listing Rules of the Hong Kong Stock Exchange and International Accounting Standard 34 requirements[7] - Except for anticipated changes in accounting policies, the same accounting policies as the 2024 annual financial statements are adopted[7] Changes in Accounting Policies The Group applied IAS 21 (Amendment) 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability', which had no material impact on the interim financial information due to the absence of relevant transactions, and no other new or amended standards not yet effective were applied during this accounting period - IAS 21 (Amendment) has been applied, but it has no material impact on the interim financial information[8] - No other new or amended standards not yet effective have been applied during this accounting period[9] Revenue and Segment Reporting The Group's primary business involves the production and sale of staple kitchen foods, with all revenue recognized within the reporting period, segmented into four reportable product categories: rice, corn, miscellaneous grains, beans and other products, and dried goods and other products, with comparative segment information for 2024 restated - The Group's main business is the production and sale of staple kitchen foods, with all revenue recognized at a point in time within the reporting period[10] - The Group has presented four reportable segments: rice products, corn products, miscellaneous grains, beans and other products, and dried goods and other products[11][13] - Corn product revenue has achieved significant growth since 2024, expected to contribute to stable cash flow generation and diversification of product matrix and revenue sources[12] Segment Results For the six months ended June 30, 2025, rice product revenue and gross profit both significantly increased, while corn product revenue and gross profit decreased, with miscellaneous grains, beans and other products, and dried goods and other products all showing growth in revenue and gross profit Segment Revenue and Gross Profit (RMB thousand) | Segment | 2025 Revenue | 2025 Gross Profit | 2024 Revenue | 2024 Gross Profit | | :--- | :--- | :--- | :--- | :--- | | Rice Products | 2,066,467 | 435,553 | 1,707,209 | 211,083 | | Corn Products | 433,069 | 156,635 | 514,221 | 171,142 | | Miscellaneous Grains, Beans and Other Products | 274,276 | 52,849 | 212,050 | 46,164 | | Dried Goods and Other Products | 289,643 | 21,834 | 187,085 | 15,895 | | Total | 3,063,455 | 666,871 | 2,620,565 | 444,284 | - Rice product revenue increased by 21.0% year-on-year, with gross profit increasing by 106.3% year-on-year[15] - Corn product revenue decreased by 15.8% year-on-year, with gross profit decreasing by 8.5% year-on-year[15] Geographical Information All of the Group's revenue is derived from customers within mainland China, and it does not have significant assets or operations outside China, thus no segment analysis based on customer and asset geographical location is presented - All of the Group's revenue is derived from its customers in China[16] - The Group does not have significant assets or operations outside China[16] Profit Before Tax Profit before tax is primarily influenced by finance costs, staff costs, cost of inventories, depreciation, and net loss on disposal of property, plant and equipment, with finance costs decreasing due to reduced bank loan interest, while staff costs and cost of inventories increased Finance Costs The Group's finance costs decreased from RMB 8,046 thousand in the prior period of 2024 to RMB 6,146 thousand in 2025, mainly due to reduced bank loan interest expenses, though foreign exchange shifted from a gain to a loss Details of Finance Costs (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest expense on bank loans | 5,025 | 13,270 | | Interest on lease liabilities | 865 | 1,444 | | Foreign exchange loss / (gain) | 256 | (6,668) | | Total | 6,146 | 8,046 | - Interest expense on bank loans decreased by 62.1% year-on-year[17] Staff Costs The Group's staff costs increased from RMB 153,952 thousand in the prior period of 2024 to RMB 164,084 thousand in 2025, primarily driven by an increase in salaries, wages, and other benefits Details of Staff Costs (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Salaries, wages and other benefits | 153,655 | 144,004 | | Contributions to defined contribution retirement plans | 10,429 | 9,948 | | Total | 164,084 | 153,952 | Other Items Other items primarily include cost of inventories, depreciation, net loss on disposal of property, plant and equipment, and lease expenses, with both cost of inventories and depreciation of owned property, plant and equipment increasing Details of Other Items (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of inventories | 2,396,584 | 2,176,281 | | Depreciation – owned property, plant and equipment | 50,114 | 43,420 | | Depreciation – right-of-use assets | 4,601 | 5,915 | | Net loss on disposal of property, plant and equipment | 555 | 113 | | Lease expenses | 705 | 827 | Income Tax The Group's income tax expense decreased from RMB 7,109 thousand in the prior period of 2024 to RMB 5,705 thousand in 2025, mainly due to a reduction in taxable income, with primary processing of agricultural products qualifying for income tax exemption Income Tax Expense (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax | 5,705 | 7,109 | - Primary processing of agricultural products qualifies for income tax exemption[24] Dividends The Board does not recommend an interim dividend for the six months ended June 30, 2025; however, the company approved a final dividend of RMB 0.164 per ordinary share for the previous financial year during the interim period, a significant increase from the prior year - The Board does not recommend an interim dividend for the six months ended June 30, 2025[21] Dividends Payable to Equity Holders of the Company Approved and Attributable to the Previous Financial Year During the Interim Period (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Final dividend for the previous financial year | 175,177 | 33,113 | Earnings Per Share For the six months ended June 30, 2025, basic earnings per share decreased to RMB 0.11 from RMB 0.12 in the prior period, with diluted earnings per share being the same as basic earnings per share due to the absence of dilutive potential ordinary shares Earnings Per Share (RMB) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic earnings per share | 0.11 | 0.12 | | Diluted earnings per share | 0.11 | 0.12 | - Basic earnings per share is calculated based on profit attributable to equity holders of the Company of RMB 116,226 thousand and a weighted average of 1,068,153 thousand ordinary shares outstanding[23] Trade and Other Receivables As of June 30, 2025, total trade and other receivables decreased to RMB 559,672 thousand from December 31, 2024, with trade receivables (net of loss allowance) predominantly within 3 months, indicating a healthy aging structure Trade and Other Receivables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables (third parties) | 363,053 | 383,188 | | Less: Loss allowance | (887) | (5,763) | | Bills receivable | 7,989 | 8,789 | | Prepayments | 97,344 | 105,148 | | Recoverable VAT | 59,015 | 82,289 | | Other receivables | 87,708 | 110,317 | | Total | 559,672 | 609,717 | Aging Analysis of Trade Receivables (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 341,364 | 371,937 | | 4 to 6 months | 19,515 | 4,988 | | 7 to 12 months | 1,174 | 299 | | Over 1 year | 113 | 201 | | Total | 362,166 | 377,425 | Trade and Other Payables As of June 30, 2025, total trade and other payables significantly increased to RMB 434,253 thousand from December 31, 2024, primarily due to a substantial rise in dividends payable Trade and Other Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 159,781 | 152,677 | | Dividends payable | 175,177 | – | | Staff-related costs payable | 42,510 | 53,724 | | Amounts payable for construction and purchase of property, plant and equipment | 17,827 | 22,654 | | Others | 13,290 | 12,617 | | Financial liabilities measured at amortized cost | 408,585 | 241,672 | | Refund liabilities | 1,494 | 2,213 | | Miscellaneous taxes payable | 24,174 | 9,332 | | Total | 434,253 | 253,217 | - Dividends payable increased from zero on December 31, 2024, to RMB 175,177 thousand on June 30, 2025[27] - All trade payables are expected to be settled within one year or are repayable on demand[28] Management Discussion and Analysis Macro and Industry Environment In H1 2025, China's GDP grew by 5.3% year-on-year, total retail sales of consumer goods increased by 5%, with final consumption expenditure contributing 52% to economic growth, while the food industry shows trends towards health, quality, convenience, and brand, with pre-packaged food market share continuously expanding, supported by national policies for whole grain development and rising consumer health awareness driving growth in miscellaneous grains and corn categories - In H1 2025, China's GDP grew by 5.3% year-on-year, with total retail sales of consumer goods reaching RMB 24.55 trillion, a 5% year-on-year increase[29] - Final consumption expenditure contributed as much as 52% to economic growth, becoming the main driver[29] - Food industry trends indicate consumers shifting from 'eating well' to 'eating healthy', preferring nutritionally balanced, low-fat, and fiber-rich foods; pre-packaged foods continue to gain market share due to stable quality and convenience[29][32] - National policies support the development of the whole grain industry, and rising consumer health awareness drives growth in miscellaneous grains and corn categories[30] Future Outlook The Group will continue to cultivate its omni-channel ecosystem, strengthen channel management, build a content-centric intelligent marketing ecosystem, continuously understand consumer needs, and timely adjust business layout and product portfolio, while also deeply selecting production areas, focusing on building core capabilities in procurement, production, inspection, and warehousing, and promoting digitalization and system construction to enhance operational efficiency and refined management - Adhere to the mission of 'providing healthy, high-quality, and safe family food for Chinese consumers', aiming to 'build valuable and influential food brands in China'[33] - Deepen the omni-channel ecosystem, strengthen channel management capabilities, and build a content-centric intelligent marketing ecosystem[33] - Continuously monitor industry dynamics, adjust business layout and product portfolio, expand new channels and businesses, and create healthy, high-quality star products[33] - Promote digitalization and system construction to enhance omni-channel operational efficiency and refined management levels[33] Business Review In H1 2025, the Group's total revenue reached RMB 3,063.5 million, a 16.9% year-on-year increase, with gross profit growing by 50.1%, as the company continued to deepen existing categories, expand its product matrix and sales network, strengthen its multi-brand business model, and solidify supply chain management capabilities, maintaining leading sales volumes in core rice and corn categories while actively developing new light, healthy, and low-fat family food products Key Financial Performance for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 3,063.5 | 2,620.6 | 16.9% | | Gross Profit | 666.9 | 444.3 | 50.1% | | Gross Profit Margin | 21.8% | 17.0% | +4.8pp | | Profit Before Tax | 121.9 | 132.9 | (8.3%) | | Net Profit | 116.2 | 125.8 | (7.6%) | | Adjusted Net Profit | 294.3 | 148.9 | 97.7% | | Adjusted Net Profit Margin | 9.6% | 5.7% | +3.9pp | - The company continues to deepen existing categories, expand its multi-category product matrix, broaden its sales network, strengthen its multi-brand business model with distinct focuses, and solidify its supply chain management capabilities[34] Our Brands and Products The Group owns brands such as 'Shiyuedaotian', 'Chaihuo Dayuan', and 'Fuxiang Renjia', maintaining leading sales volumes in rice and corn categories, and actively responds to consumer trends by launching snack foods like barbecue-flavored and spicy corn, and expanding into light family meal products such as brown rice onigiri and corn paste sachets, aiming to become an expert in family food innovation - Core brands include Shiyuedaotian, Chaihuo Dayuan, and Fuxiang Renjia[36] - The Shiyuedaotian brand has been recognized as 'China's leading sales volume in Northeast rice for six consecutive years' and 'China's leading sales volume in corn category for two consecutive years'[36] - Launched snack foods such as barbecue-flavored corn and spicy corn, as well as light family meal products like brown rice onigiri and corn paste sachets, to meet the composite demands for 'health, nutrition, and convenience'[36][38] Revenue Breakdown by Product Category (RMB thousand) | Product Category | 2025 | % of Total Revenue | 2024 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Rice Products | 2,066,467 | 67.4% | 1,707,209 | 65.2% | | Corn Products | 433,069 | 14.1% | 514,221 | 19.6% | | Miscellaneous Grains, Beans and Other Products | 274,276 | 9.0% | 212,050 | 8.1% | | Dried Goods and Other Products | 289,643 | 9.5% | 187,085 | 7.1% | | Total | 3,063,455 | 100.0% | 2,620,565 | 100.0% | - Rice product revenue increased by 21.0% year-on-year, mainly due to continuous strategic adjustments to deepen channels, increased sales of mid-to-high-end rice, and a strategic reduction in sales of low-margin rice[41] - Corn product revenue decreased by 15.8% year-on-year, mainly because the Group aimed to improve profitability quality and adjusted its marketing investment strategy[41] Our Sales Network The Group has established extensive sales coverage through online channels (e-commerce platforms, online self-operated stores), modern supermarket channels, direct customers, and a distribution network, with online channels remaining the primary revenue source and significant growth observed in modern supermarket and direct customer revenues Revenue Breakdown by Sales Channel (RMB thousand) | Sales Channel | 2025 | % of Total Revenue | 2024 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Online Channels | 1,836,767 | 60.0% | 1,776,257 | 67.8% | | －E-commerce Platforms | 1,163,282 | 38.0% | 1,095,938 | 41.8% | | －Online Self-operated Stores | 673,485 | 22.0% | 680,319 | 26.0% | | Modern Supermarket Channels | 495,584 | 16.2% | 393,223 | 15.0% | | Direct Customers | 563,209 | 18.4% | 321,654 | 12.3% | | Distribution Network | 167,895 | 5.4% | 129,431 | 4.9% | | Total | 3,063,455 | 100.0% | 2,620,565 | 100.0% | - Revenue from e-commerce platforms increased by 6.2% year-on-year, mainly due to channel adjustment strategies and efforts to improve profitability quality[45] - Revenue from modern supermarket channels increased by 26.0% year-on-year, direct customer revenue increased by 75.1% year-on-year, and distribution network revenue increased by 29.8% year-on-year[45] Our Production The Group prioritizes quality, ensuring product excellence through a comprehensive raw material supply and production management system, having established long-term partnerships with quality suppliers and adopting order-based and partial self-operated cultivation strategies, with highly standardized and automated production processes, modern industrial bases built in five core grain-producing regions in China, and a sweet corn production base under construction in Nanning, Guangxi - Long-term stable relationships have been established with various product suppliers, with core production areas including Shenyang Xinmin, Wuchang, Songyuan, Tonghe, and Aohan regions[46] - A diversified supply strategy is adopted, including strategic cooperation with quality suppliers, contract farming with farmers, and partial self-operated cultivation[46] - Production processes are highly standardized and automated, with modern industrial bases built near five core grain-producing regions in China[47] - A sweet corn production base is under construction in Nanning, Guangxi, expected to be completed and operational in H2 2025[47] Supply Chain Management The Group achieves real-time monitoring of the entire value chain by deeply integrating various channel resources, efficiently collecting and analyzing consumer data, and synchronizing order, inventory, and capacity information, implementing order-based production to ensure product freshness, and establishing a modern warehousing and distribution system with five self-operated regional distribution centers and over ten local warehouses - Achieves real-time monitoring of all links in the value chain, efficiently collects and analyzes consumer data, and synchronizes order, inventory, and capacity information[48] - Executes order-based production, typically completing production, processing, and shipment within three days of a customer placing an order, ensuring product freshness[48] - Possesses over twenty automated production lines and has established five self-operated regional distribution centers and over ten local warehouses[48] Food Safety and Quality Control Food safety and product quality are the Group's top priorities, implementing stringent food safety and quality control standards and measures throughout the entire operation, from procurement, production, and storage to sales, with a dedicated quality assurance team responsible for systematic, full-lifecycle quality management - Strict food safety and quality control standards and measures are implemented throughout the entire operation, covering steps from procurement, production, and storage to sales[49] - The quality assurance team focuses on implementing and maintaining the quality control system to execute the Group's quality control plan at the group level[49] Information Technology Systems The Group's information technology systems cover all aspects of its operations, including raw material supply, production, operations, and logistics, having developed and adopted complementary systems such as SCM, ERP, TMS, WMS, and CRM to enhance operational efficiency and data management - Information technology systems cover all aspects of operations, including raw material supply, production, operations, and logistics[50] - Complementary systems such as Supply Chain Management (SCM), ERP, Transportation Management System (TMS), Warehouse Management System (WMS), and Customer Relationship Management (CRM) are adopted to enable efficient product operations and data management[50] Financial Review The Group achieved growth in both revenue and gross profit in H1 2025, with an improved gross profit margin; however, profit for the period decreased due to a significant increase in fair value losses on financial assets, while selling and distribution expenses rose, and finance costs and income tax expenses decreased Revenue and Gross Profit Revenue for the reporting period was RMB 3,063.5 million, a 16.9% year-on-year increase, with gross profit at RMB 666.9 million, up 50.1% year-on-year, and gross profit margin increasing from 17.0% to 21.8%, primarily due to product mix adjustments, sales channel optimization, and a decrease in raw material rice prices Revenue and Gross Profit (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,063.5 | 2,620.6 | 16.9% | | Gross Profit | 666.9 | 444.3 | 50.1% | | Gross Profit Margin | 21.8% | 17.0% | +4.8pp | - Revenue growth is primarily attributed to expanding the multi-category product matrix, adjusting business layout, and enhancing brand effect and competitiveness[51] - Gross profit margin improvement is mainly due to product structure adjustments (higher proportion of mid-to-high-end products, reduced investment in low-margin products), sales channel optimization, and a decrease in raw material rice prices[51] Other Net Income Other net income decreased from RMB 31.1 million in the prior period of 2024 to RMB 12.3 million in 2025, primarily due to the absence of investment income from wealth management products with idle raised funds and the reversal of litigation provisions from the previous year Other Net Income (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Other Net Income | 12.3 | 31.1 | - The decrease is mainly due to the absence of investment income from wealth management products with idle raised funds (RMB 15.8 million) and the reversal of litigation provisions (RMB 3.8 million) from the previous year in the reporting period[52] Fair Value Changes of Biological Assets Gain from fair value changes of biological assets decreased from RMB 3.467 million in the prior period of 2024 to RMB 1.737 million in 2025, primarily due to changes in cultivated area Gain from Fair Value Changes of Biological Assets (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gain from fair value changes of biological assets | 1,737 | 3,467 | - The decrease is mainly due to changes in cultivated area[53] Selling and Distribution Expenses Selling and distribution expenses increased by 27.4% from RMB 239.6 million in the prior period of 2024 to RMB 305.2 million in 2025, primarily due to a significant increase in operating expenses from a substantial rise in the number of self-operated stores in certain channels, and increased ground advertising in airports and business districts Selling and Distribution Expenses (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 305.2 | 239.6 | 27.4% | - The increase is mainly due to a significant increase in operating expenses from a substantial rise in the number of self-operated stores, and increased advertising and promotional expenses[54] Administrative Expenses Administrative expenses slightly decreased from RMB 73.2 million in the prior period of 2024 to RMB 70.4 million in 2025, with various expenses remaining stable Administrative Expenses (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Administrative Expenses | 70.4 | 73.2 | - Administrative expenses remained stable, with a slight decrease[55] Impairment Loss Reversal/Expense on Trade and Other Receivables Impairment loss on trade and other receivables shifted from an expense of RMB 2.1 million in the prior period of 2024 to a reversal of RMB 4.9 million in 2025, primarily due to the recovery of some long-aged trade receivables during the reporting period Impairment Loss Reversal/Expense on Trade and Other Receivables (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Impairment Loss Reversal/(Expense) on Trade and Other Receivables | 4.9 | (2.1) | - The shift to a reversal is mainly due to the recovery of some long-aged trade receivables[56] Finance Costs Finance costs decreased by 23.8% from RMB 8.0 million in the prior period of 2024 to RMB 6.1 million in 2025, primarily due to reduced interest expenses from a lower average borrowing balance and changes in foreign exchange gains and losses Finance Costs (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 6.1 | 8.0 | (23.8%) | - The decrease is mainly due to a RMB 8.2 million reduction in interest expenses from a lower average borrowing balance, and a shift from foreign exchange gains in the prior year to foreign exchange losses in the reporting period[57] Fair Value Changes of Financial Assets at FVTPL During the reporting period, the Group incurred a fair value change loss of RMB 182.1 million on financial assets measured at fair value, a significant increase from RMB 23.1 million in the prior period, primarily attributable to equity investments in listed companies held for strategic cooperation and investment purposes Fair Value Changes of Financial Assets at FVTPL (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Fair Value Changes of Financial Assets at FVTPL | (182.1) | (23.1) | - The loss significantly increased, primarily due to the Group's equity investments in listed companies held for strategic cooperation and investment purposes[58] Income Tax Expense Income tax expense decreased by 19.7% from RMB 7.1 million in the prior period of 2024 to RMB 5.7 million in 2025, primarily due to a reduction in taxable income Income Tax Expense (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax | 5.7 | 7.1 | (19.7%) | - The decrease is mainly due to a reduction in taxable income[59] Profit for the Period Due to the combined impact of the aforementioned factors, the Group's profit for the period decreased from RMB 125.8 million in the prior period of 2024 to RMB 116.2 million in 2025 Profit for the Period (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period | 116.2 | 125.8 | Non-IFRS Measures The Group uses adjusted net profit (a non-IFRS measure) as an additional financial metric to supplement the consolidated financial statements presented under IFRS, defined as net profit for the period after deducting fair value changes of equity investments and after-tax dividend income, with adjusted net profit increasing by 97.7% year-on-year and adjusted net profit margin rising from 5.7% to 9.6% during the reporting period - Adjusted net profit (a non-IFRS measure) serves as an additional financial metric, providing useful information to investors[61] - Adjusted net profit is defined as net profit for the period by deducting fair value changes of equity investments and after-tax dividend income[62] Reconciliation of Net Profit to Adjusted Net Profit (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Period | 116,226 | 125,761 | | Add: Net loss from fair value changes of financial assets at FVTPL | 178,092 | 23,109 | | Adjusted Net Profit | 294,318 | 148,870 | - Adjusted net profit increased by 97.7% year-on-year, and the adjusted net profit margin rose from 5.7% to 9.6%, primarily due to product structure and strategic layout adjustments, increasing the proportion of mid-to-high-end products, and improving gross profit margin[63] Inventory The Group's inventory decreased by 21.3% from RMB 1,360.2 million on December 31, 2024, to RMB 1,070.7 million on June 30, 2025, with inventory turnover days reducing from 113 days to 93 days, primarily due to seasonal raw material procurement and production consumption during the reporting period Inventory (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Inventory | 1,070.7 | 1,360.2 | (21.3%) | - Inventory turnover days decreased from 113 days in 2024 to 93 days in the reporting period[64] - The decrease is mainly due to the seasonal impact of raw material procurement (primarily acquiring raw grains in the fourth quarter) and production consumption during the reporting period[64] Biological Assets As of June 30, 2025, the fair value of the Group's biological assets for cultivated corn and rice was RMB 15.0 million and RMB 14.0 million, respectively, with no biological asset balance at year-end as these assets are harvested annually from July to October Fair Value of Biological Assets (RMB million) | Item | June 30, 2025 | | :--- | :--- | | Fair value of cultivated corn | 15.0 | | Fair value of cultivated rice | 14.0 | - The Group's cultivated biological assets are harvested annually from July to October, thus there is no biological asset balance at year-end[65] Trade and Other Receivables (Detailed) The Group's trade receivables decreased by 4.0% from RMB 377.4 million on December 31, 2024, to RMB 362.2 million on June 30, 2025, with turnover days slightly increasing to 22 days, and other receivables decreasing primarily due to deductible recoverable VAT Trade Receivables (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables | 362.2 | 377.4 | (4.0%) | - Trade receivables turnover days slightly increased from 20 days in 2024 to 22 days in the reporting period[66] - The decrease in other receivables is mainly due to deductible recoverable VAT being offset during the reporting period[66] Financial Assets at FVTPL (Detailed) As of June 30, 2025, the Group's financial assets at fair value through profit or loss amounted to RMB 440.7 million, primarily equity investments in listed companies, with the decrease from December 31, 2024, mainly attributable to fair value changes Financial Assets at FVTPL (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Financial Assets | 440.7 | 615.1 | - The decrease is mainly due to changes in the fair value of financial assets[67] Trade and Other Payables (Detailed) The Group's trade payables increased by 4.6% from RMB 152.7 million on December 31, 2024, to RMB 159.8 million on June 30, 2025, with turnover days slightly increasing to 12 days, and other payables significantly rising by 173.0%, primarily due to an increase of RMB 175.2 million in dividends payable Trade Payables (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 159.8 | 152.7 | 4.6% | | Other Payables | 274.5 | 100.5 | 173.0% | - Trade payables turnover days increased from 11 days in the prior year to 12 days in the reporting period[68] - The significant increase in other payables is mainly due to an increase of RMB 175.2 million in dividends payable by the company[68] Contract Liabilities The Group's contract liabilities decreased by 62.1% from RMB 40.6 million on December 31, 2024, to RMB 15.4 million on June 30, 2025, primarily due to the fulfillment of contract liability obligations during the reporting period and the impact of sales seasonality Contract Liabilities (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Contract Liabilities | 15.4 | 40.6 | (62.1%) | - The decrease is mainly due to the fulfillment of contract liability obligations and the impact of sales seasonality[69] Liquidity and Capital Resources The Group experienced an increase in cash and bank balances and a significant reduction in bank loans, leading to a notable decrease in the capital gearing ratio and an improvement in its liquidity position Cash and Bank Balances The Group's cash and bank balances increased by 10.3% from RMB 713.0 million on December 31, 2024, to RMB 786.7 million on June 30, 2025, primarily due to the combined effect of cash inflows from operating activities and repayment of borrowings Cash and Bank Balances (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 786.7 | 713.0 | 10.3% | - The increase is mainly due to the combined effect of cash inflows from operating activities and repayment of borrowings[70] Bank Loans The Group's bank loans decreased by 69.0% from RMB 645.5 million on December 31, 2024, to RMB 200.1 million on June 30, 2025, primarily due to repayment of borrowings during the reporting period Bank Loans (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Bank Loans | 200.1 | 645.5 | (69.0%) | - The significant decrease is mainly due to the Group's repayment of borrowings during the reporting period[71] Capital Gearing Ratio As of June 30, 2025, the Group's capital gearing ratio was 17.5%, a decrease from 23.0% on December 31, 2024, primarily due to a reduction in debt from repayment of borrowings Capital Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital Gearing Ratio | 17.5% | 23.0% | - The decrease is mainly due to the Group's repayment of borrowings, leading to a reduction in the amount of debt[72] Financial Risks The Group faces credit, liquidity, interest rate, currency, and fair value measurement risks, and has implemented risk management plans to minimize potential adverse impacts, with credit risk primarily arising from trade receivables, liquidity managed through regular monitoring and sufficient cash reserves, interest rate risk from floating and fixed-rate borrowings, and currency risk mainly from USD and HKD denominated cash balances - The Group faces credit risk, liquidity risk, interest rate risk, currency risk, and fair value measurement risk[73] - Credit risk primarily arises from trade receivables, but credit risk for cash and bank balances is limited[74] - Liquidity is managed through regular monitoring of needs and maintaining sufficient cash reserves and committed credit facilities[75] - Interest rate risk arises from floating and fixed-rate interest-bearing borrowings, and currency risk primarily stems from USD and HKD denominated cash balances[76][77] Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[78] Capital Commitments and Capital Expenditure As of June 30, 2025, the Group's capital commitments amounted to approximately RMB 101.5 million, primarily for the purchase and construction of buildings, machinery, and equipment, while capital expenditure was approximately RMB 106.4 million, mainly for the acquisition of property, plant and equipment, and land use rights Capital Commitments and Capital Expenditure (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital Commitments | 101.5 | 64.4 | | Capital Expenditure for the Six Months Ended June 30 | 106.4 | 89.2 | - Capital commitments are primarily for the purchase and construction of buildings, machinery, and equipment[79] - Capital expenditure is primarily for the purchase of property, plant and equipment, and land use rights[79] Pledged Assets As of June 30, 2025, the total carrying amount of the Group's property, plant and equipment, and land use rights pledged for bank loans was RMB 62.5 million, a significant decrease from December 31, 2024 Total Carrying Amount of Pledged Assets (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Carrying Amount of Pledged Assets | 62.5 | 338.7 | Significant Investments, Acquisitions and Disposals During the reporting period, the Group held no significant investments and undertook no material acquisitions or disposals of subsidiaries, associates, or joint ventures - No significant investments, acquisitions, or disposals occurred during the reporting period[81] Future Significant Investments or Capital Asset Plans During the reporting period and up to the date of this announcement, the Group currently has no plans to acquire other significant investments or capital assets, apart from the 'Future Plans and Use of Proceeds' disclosed in the prospectus - Currently, there are no plans to acquire other significant investments or capital assets, except as disclosed in the prospectus[82] Other Information Compliance with Standard Code The Company has adopted the Standard Code as the code for securities transactions by directors and supervisors, and all directors and supervisors confirmed compliance with this code during the reporting period - All directors and supervisors confirmed compliance with the Standard Code during the reporting period[83] Compliance with Corporate Governance Code The Company complied with all applicable provisions of the Corporate Governance Code during the reporting period, except for Code Provision C.2.1 (separation of roles of chairman and chief executive), as the Board believes Mr. Wang Bing's dual role as Chairman and General Manager fosters consistent internal leadership and efficient strategic planning, with sufficient independent non-executive directors safeguarding shareholders' interests - The Company has complied with all applicable provisions of the Corporate Governance Code, except for Code Provision C.2.1[84] - The roles of Chairman and General Manager are held by Mr. Wang Bing, an arrangement the Board believes ensures consistent internal leadership and efficient strategic planning for the Group[84] - The Board has a sufficient number of independent non-executive directors (three out of nine directors) to safeguard the overall interests of the company and its shareholders[84] Compliance with Laws and Regulations The Group's operations are primarily conducted in China, and it has complied with relevant laws and regulations in applicable regions that have a significant impact on the Group, with no material breaches of such laws and regulations during the reporting period - The Group has complied with relevant laws and regulations in applicable regions that have a significant impact on the Group[85] - During the reporting period, the Group had no material breaches of such laws and regulations[85] Purchase, Sale and Redemption of 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, nor did they hold any treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[86] - As of the end of the reporting period, neither the Company nor any of its subsidiaries held any treasury shares[86] Use of Proceeds from Global Offering The net proceeds from the Company's H-share global offering were approximately HKD 716.4 million, with most funds utilized as planned for enhancing supplier cooperation, capacity expansion, channel coverage, brand enhancement, and working capital as of June 30, 2025, though the proposed timeline for unutilized proceeds for the digital middle-office system is later than originally planned - Net proceeds from the global offering were approximately HKD 716.4 million[88] Use of Proceeds from Global Offering and Utilization (HKD million) | Proposed Use | Approximate Percentage of Total Net Proceeds | Net Proceeds from Global Offering | Net Proceeds Used as of June 30, 2025 | Unutilized Net Proceeds as of June 30, 2025 | Expected Timeline for Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance cooperation with suppliers and strengthen procurement capabilities | 35% | 250.74 | 200.76 | 49.98 | Before end of 2025 | | Capacity expansion, upgrade of existing production lines, increase warehousing and logistics coverage, and fund production activities related to business expansion | 30% | 214.92 | 154.51 | 60.41 | Before end of 2025 | | Deepen channel coverage and build a sales ecosystem | 10% | 71.64 | 60.88 | 10.76 | Before end of 2025 | | Enhance brand momentum | 10% | 71.64 | 64.21 | 7.43 | Before end of 2025 | | Build a digital middle-office system | 5% | 35.82 | 7.75 | 28.07 | Before end of 2027 | | Working capital and general corporate purposes | 10% | 71.64 | 65.80 | 5.84 | Before end of 2025 | | Total | 100% | 716.40 | 553.91 | 162.49 | | - The proposed timeline for unutilized net proceeds for building the digital middle-office system is later than originally planned due to the company's overall information technology strategy adjustment[88] Audit Committee The Audit Committee comprises one non-executive director and two independent non-executive directors, with Mr. Yang Zhida serving as Chairman, and has reviewed the Group's accounting principles, financial reporting matters, and the unaudited interim results for the six months ended June 30, 2025 - The Audit Committee consists of one non-executive director and two independent non-executive directors, with Mr. Yang Zhida as Chairman[89] - The Committee has reviewed the accounting principles and practices adopted by the Group and the interim results[89] Review of Interim Financial Information The financial information in this announcement is extracted from the unaudited interim financial report, which has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, resulting in a review report with an unmodified conclusion - The interim financial report is unaudited but has been reviewed by KPMG, which issued a review report with an unmodified conclusion[90] Interim Dividend The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[91] Human Resources and Remuneration Policy Adhering to the philosophy that 'talent is the company's most valuable resource', the Company continuously refines its human resource management system, focusing on recruiting talent for key business channels, expanding campus recruitment, and introducing supply chain and quality control professionals in H1, while fostering talent through 'Amoeba' management and 'central-decentralized-central' linkage models, strengthening performance management, and improving the remuneration system to attract and retain talent, with 2,225 full-time employees as of June 30, 2025 - The company focuses on key business channels, strengthens talent pipeline development, expands campus recruitment, and introduces professionals in supply chain and quality control[92] - Talent is cultivated through 'Amoeba' management and 'central-decentralized-central' linkage models, strengthening performance management[93] - The remuneration system is improved, flexibly utilizing various compensation structures and models, such as piece-rate wages and performance incentives, and handling various social insurances and housing provident funds[94] - As of June 30, 2025, the company had 2,225 full-time employees[95] Share Schemes For the six months ended June 30, 2025, neither the Company nor its principal subsidiaries had any share schemes - For the six months ended June 30, 2025, neither the Company nor its principal subsidiaries had any share schemes[96] Subsequent Events As of the date of this announcement, no significant events have occurred since June 30, 2025, that would materially affect the Group's operations and financial performance - As of the date of this announcement, no significant events have occurred since June 30, 2025, that would materially affect the Group's operations and financial performance[97] Publication of Interim Results Announcement and Interim Report This announcement has been published on the HKEX website and the Company's website, and the interim report containing all information required by the Listing Rules will be published on the aforementioned websites in due course - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.shiyuedaotian.com)[98](index=98&type=chunk) - The interim report, containing all information required by the Listing Rules, will be published on the aforementioned websites in due course[98] Appendices Definitions This section provides definitions for key terms and abbreviations used in the report, including Audit Committee, Board, Company, Corporate Governance Code, ERP System, Directors, Group, H Shares, Hong Kong, HKD, Listing Rules, LKA, Standard Code, NKA, China, Prospectus, Reporting Period, RMB, Shares, Shareholders, Stock Exchange, Subsidiaries, Supervisors, Treasury Shares, Unlisted Shares, and USD Board of Directors As of the date of this announcement, the Board of Directors comprises five executive directors (Mr. Wang Bing, Ms. Zhao Wenjun, Ms. Zhao Shulan, Mr. Shu Minghe, and Mr. Zou Hao), one non-executive director (Mr. Chang Bin), and three independent non-executive directors (Mr. Shi Ketong, Mr. Yang Zhida, and Mr. Lin Chen), with Mr. Wang Bing also serving as Chairman and Executive Director - The Board of Directors includes five executive directors, one non-executive director, and three independent non-executive directors[101] - Mr. Wang Bing serves concurrently as Chairman and Executive Director[101]