易和国际控股(08659) - 2025 - 中期财报

Corporate Information Board of Directors and Committees This section outlines the composition of the company's Board of Directors and its various committees, noting recent appointments and resignations - The Board consists of executive directors Mr Xu Youjiang (Chairman), Ms Xu Liping, and Mr Zhang Yuansheng, and independent non-executive directors Mr Cheung Sze Tze, Mr Liu Dajin, and Mr Yang Jie (newly appointed)[8] - Mr Yang Jie was appointed as an independent non-executive director, Chairman of the Remuneration Committee, and a member of the Nomination and Audit Committees on June 26, 2025[8] - Mr Tang Chi Fai resigned as an independent non-executive director and from his committee roles on June 26, 2025[8] Corporate Profile This section provides fundamental corporate information, including the auditor, principal bankers, registered office, and key business locations - The auditor is Grant Thornton Hong Kong Limited[9] - The company's website is www.yikwo.cn, and its stock code is 8659[10] - The company has a registered office in the Cayman Islands and principal places of business in Jinjiang City, Fujian Province, China, and Kwun Tong, Kowloon, Hong Kong[10] Management Discussion and Analysis Business Review and Prospects The Group's revenue declined due to weak market demand for its core plastic food container business, prompting diversification into film projects and e-commerce - The Group's core business is the production and sale of disposable plastic food containers, supplemented by mobile application and e-commerce platform operations[12] - For the six months ended June 30, 2025, the Group's revenue decreased, primarily due to weak market demand for disposable plastic food containers[13] - Future strategies include promoting eco-friendly food containers, enhancing production technology, expanding sales channels, and product customization[14] - The Group completed the acquisition of the entire equity of Yizhen Film and Media Co, Ltd to invest in film projects and capitalize on opportunities in China's film industry[15] - The Group acquired 100% of Beijing Youpinhui and launched the "Yi He Tian Xia" e-commerce platform in July 2022[16] - The Group entered into an MOU for the potential acquisition of a 30% equity interest in Beijing Zhenpin Network Technology Co, Ltd to expand revenue sources and stabilize the e-commerce supply chain[17] Financial Review The Group's financial performance declined significantly in the first half of 2025, with substantial decreases in revenue, gross profit, and net profit 2025 Interim Key Financial Data Comparison | Indicator | Six Months Ended June 30, 2025 (RMB in thousands) | Six Months Ended June 30, 2024 (RMB in thousands) | Change (RMB in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 109,517 | 155,828 | (46,311) | (29.7%) | | Cost of sales | (78,326) | (109,627) | 31,301 | (28.6%) | | Gross profit | 31,191 | 46,201 | (15,010) | (32.5%) | | Gross profit margin | 28.5% | 29.6% | (1.1%) | - | | Selling expenses | (6,220) | (8,850) | 2,630 | (30.3%) | | Administrative and other operating expenses | (12,471) | (12,734) | 263 | (1.6%) | | Finance costs | (86) | (140) | 54 | (38.6%) | | Income tax expense | (4,102) | (6,992) | 2,890 | (41.4%) | | Profit for the period | 8,951 | 18,765 | (9,814) | (52.1%) | - The decrease in selling expenses was mainly due to reduced promotional efforts[22] - The decrease in administrative and other operating expenses was primarily due to lower staff costs[23] - The significant decrease in profit for the period was mainly attributable to a decrease in gross profit of approximately RMB15.0 million[26] GEM Listing and Proposed Transfer of Listing The company is pursuing a transfer of its listing from GEM to the Main Board of the Stock Exchange, having resubmitted its application in May 2024 - The company's shares were listed on GEM of the Stock Exchange on July 13, 2020, raising net proceeds of HKD22.8 million (approximately RMB20.4 million)[27] - The transfer of listing application submitted on May 31, 2023, has automatically lapsed[27] - The company resubmitted its application for the transfer of listing on May 9, 2024, under Chapter 9B of the Main Board Listing Rules[28] Liquidity and Financial Resources The Group's liquidity position improved as of June 30, 2025, with increased net current assets, a higher current ratio, and a lower gearing ratio Key Indicators of Liquidity and Financial Resources | Indicator | June 30, 2025 (RMB in millions) | December 31, 2024 (RMB in millions) | Change (RMB in millions) | | :--- | :--- | :--- | :--- | | Net current assets | 261.5 | 247.7 | 13.8 | | Current ratio | 8.7 | 6.1 | 2.6 | | Gearing ratio | 11.5% | 16.1% | (4.6%) | | Bank balances and cash | 213.9 | 206.1 | 7.8 | | Lease liabilities | 2.8 | 4.2 | (1.4) | - The increase in net current assets was mainly due to a decrease in trade and other payables[29] - The increase in bank balances and cash was primarily attributable to net cash generated from operating activities[31] - The Group had no borrowings as of June 30, 2025, and December 31, 2024[32] Capital Structure The Group's capital structure, consisting solely of ordinary shares, has remained stable since its GEM listing in 2020 - There have been no significant changes to the Group's capital structure since its GEM listing, with share capital comprising only ordinary shares[34] - As of June 30, 2025, the issued share capital was approximately HKD7.5 million, representing 748,482,760 issued ordinary shares of HKD0.01 each[34] - The Group has a consideration payable of RMB6.2 million for the acquisition of 100% equity in Yizhen Film, which is interest-free and repayable upon the movie's release[34] Segment Information The Group's operations are organized into two main business segments: disposable plastic food containers and e-commerce platform operations - The Group has two operating segments: the disposable plastic food containers business and the mobile application and e-commerce platform business[35] Future Plans for Material Investments and Capital Assets The Group had no plans for material investments or capital assets as of June 30, 2025 - As of June 30, 2025, the Group had no plans for material investments and capital assets[36] Material Investments, Acquisitions and Disposals of Subsidiaries The Group did not engage in any material investment, acquisition, or disposal activities during the first half of 2025 - During the period, there were no material investments, acquisitions, or disposals that constituted a disclosable transaction under the GEM Listing Rules[38] Pledge of Group's Assets The Group had no pledged assets as of June 30, 2025 - As of June 30, 2025, the Group had no pledged assets[39] Contingent Liabilities The Group had no contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Group had no contingent liabilities[40] Foreign Exchange Fluctuation Risk The Group faces no significant foreign exchange risk as its operations and transactions are primarily conducted in RMB - The Group operates mainly in China with transactions settled in RMB, resulting in no significant foreign exchange risk[41] - No financial instruments were used for hedging purposes during the period[41] Employees and Remuneration Policies The Group's employee count and staff costs slightly decreased in the first half of 2025, with remuneration based on a fixed salary and appraisal system - As of June 30, 2025, the Group had 192 employees (December 31, 2024: 203)[42] - Staff costs, including directors' remuneration, were approximately RMB9.6 million for the period (2024 equivalent period: approximately RMB9.7 million)[42] - The remuneration policy is based on a fixed salary and an appraisal system[42] Disclosure of Interests This section details the interests and short positions in the company's shares held by directors, chief executives, and substantial shareholders A. Directors' and Chief Executive's Interests and Short Positions in Shares (as at June 30, 2025) | Name of Director | Capacity/Nature of Interest | Number and Class of Securities | Long/Short Position | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | Mr Xu Youjiang | Interest in a controlled corporation (Prize Investment Limited) | 301,500,000 ordinary shares | Long | 40.28% | | | Beneficial owner | 74,482,760 ordinary shares | Long | 9.95% | | | Total | 375,982,760 ordinary shares | Long | 50.23% | | Ms Xu Liping | Interest of spouse (Spouse of Mr Xu Youjiang) | 375,982,760 ordinary shares | Long | 50.23% | B. Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares (as at June 30, 2025) | Name | Capacity | Number and Class of Securities | Long/Short Position | Approximate Percentage | | :--- | :--- | :--- | :--- | :--- | | Prize Investment Limited | Beneficial owner | 301,500,000 ordinary shares | Long | 40.28% | | Mr Xu Youjiang | Beneficial owner | 74,482,760 ordinary shares | Long | 9.95% | | | Total | 375,982,760 ordinary shares | Long | 50.23% | | Merit Winner Limited | Beneficial owner | 67,500,000 ordinary shares | Long | 9.02% | | Mr Xu Wenjie | Interest in a controlled corporation (Merit Winner Limited) | 67,500,000 ordinary shares | Long | 9.02% | | Ms Xu Meiya | Interest of spouse (Spouse of Mr Xu Wenjie) | 67,500,000 ordinary shares | Long | 9.02% | | Youpinhui Investment | Beneficial owner | 64,000,000 ordinary shares | Long | 8.55% | | Mr Hu Kun | Interest in a controlled corporation (Youpinhui Investment) | 64,000,000 ordinary shares | Long | 8.55% | Competition and Conflict of Interests No directors or controlling shareholders held interests in businesses that compete or may compete with the Group's business - During the period, no director, controlling shareholder, or their respective associates had any competing business or conflict of interest[47] Purchase, Sale or Redemption of the Company's Listed Securities The company and its subsidiaries did not engage in any trading of the company's own listed securities during the period - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[48] Corporate Governance Code The company has complied with the applicable code provisions of the Corporate Governance Code as set out in the GEM Listing Rules - The company has complied with the Corporate Governance Code in Appendix C1 of the GEM Listing Rules[49] - The roles of Chairman (Mr Xu Youjiang) and Chief Executive Officer (Ms Xu Liping) are separate and held by different individuals[49] Directors' Securities Transactions The Group has adopted a code of conduct for directors' securities transactions that is no less stringent than the required standard of dealings - The Group has adopted a code of conduct for directors' securities transactions in compliance with the GEM Listing Rules[50] - No incidents of non-compliance by any director with the code of conduct were found during the period[50] Dividend The Board does not recommend the payment of an interim dividend for the first half of 2025 - The Board does not recommend the payment of an interim dividend for the first half of 2025 (2024: Nil)[51] Share Option Scheme The company did not have a share option scheme as of June 30, 2025 - As of June 30, 2025, the company did not have a share option scheme[52] Material Events After the Reporting Period No material events requiring disclosure occurred between the end of the reporting period and the date of this report - There were no material events requiring disclosure after the reporting period and up to the date of this report[53] Changes in Directors' Information Mr Yang Jie was appointed as an independent non-executive director and to several board committees on June 26, 2025 - Mr Yang Jie was appointed as an independent non-executive director and a member of several committees on June 26, 2025[54] - There were no other material changes in directors' information since the date of the 2024 annual report[54] Audit Committee The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's unaudited interim financial statements - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[56] - The Audit Committee comprises three independent non-executive directors: Mr Cheung Sze Tze (Chairman), Mr Liu Dajin, and Mr Yang Jie[55] - Its primary duties include reviewing financial reporting, overseeing the audit process, internal controls, and corporate governance[55] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's revenue and profit for the period both experienced a significant decline in the first half of 2025 compared to the same period in 2024 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Revenue | 109,517 | 155,828 | | Cost of sales | (78,326) | (109,627) | | Gross profit | 31,191 | 46,201 | | Other income | 639 | 1,280 | | Selling expenses | (6,220) | (8,850) | | Administrative and other operating expenses | (12,471) | (12,734) | | Operating profit | 13,139 | 25,897 | | Finance costs | (86) | (140) | | Profit before income tax | 13,053 | 25,757 | | Income tax expense | (4,102) | (6,992) | | Profit for the period | 8,951 | 18,765 | | Other comprehensive income, net of tax: Exchange differences on translation of foreign operations recognised | 2 | 37 | | Total comprehensive income for the period | 8,953 | 18,802 | | Earnings per share attributable to equity holders of the Company (basic and diluted) | RMB1.20 cents | RMB2.51 cents | Condensed Consolidated Statement of Financial Position Condensed Consolidated Statement of Financial Position The Group's financial position remained solid, with increases in net current assets, total assets less current liabilities, and total equity as of June 30, 2025 Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | June 30, 2025 (RMB in thousands) | December 31, 2024 (RMB in thousands) | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 37,773 | 42,947 | | Current assets | 295,688 | 296,300 | | Liabilities | | | | Current liabilities | 34,142 | 48,593 | | Non-current liabilities | 1,921 | 2,209 | | Equity | | | | Share capital | 6,667 | 6,667 | | Reserves | 290,731 | 281,778 | | Total equity | 297,398 | 288,445 | | Net current assets | 261,546 | 247,707 | | Total assets less current liabilities | 299,319 | 290,654 | Condensed Consolidated Statement of Changes in Equity Condensed Consolidated Statement of Changes in Equity The Group's total equity increased during the first half of 2025, primarily driven by the profit generated during the period Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | Indicator | Share Capital (RMB in thousands) | Share Premium (RMB in thousands) | Other Reserve (RMB in thousands) | Exchange Reserve (RMB in thousands) | Retained Earnings (RMB in thousands) | Total (RMB in thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | At January 1, 2024 | 6,667 | 83,348 | 26,091 | (408) | 145,481 | 261,179 | | Profit for the period (2024) | — | — | — | — | 18,765 | 18,765 | | Other comprehensive income: Exchange differences on translation of foreign operations recognised (2024) | — | — | — | 37 | — | 37 | | Total comprehensive income for the period (2024) | — | — | — | 37 | 18,765 | 18,802 | | At June 30, 2024 (unaudited) | 6,667 | 83,348 | 26,091 | (371) | 164,246 | 279,981 | | At January 1, 2025 | 6,667 | 83,348 | 26,091 | (356) | 172,695 | 288,445 | | Profit for the period (2025) | — | — | — | — | 8,951 | 8,951 | | Other comprehensive income: Exchange differences on translation of foreign operations recognised (2025) | — | — | — | 2 | — | 2 | | Total comprehensive income for the period (2025) | — | — | — | 2 | 8,951 | 8,953 | | At June 30, 2025 (unaudited) | 6,667 | 83,348 | 26,091 | (354) | 181,646 | 297,398 | Condensed Consolidated Statement of Cash Flows Condensed Consolidated Statement of Cash Flows The Group's cash position improved in the first half of 2025, driven by a significant increase in net cash generated from operating activities Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB in thousands) | 2024 (RMB in thousands) | | :--- | :--- | :--- | | Net cash generated from operating activities | 11,783 | 7,617 | | Cash flows used in investing activities | (2,531) | (2,400) | | Cash flows used in financing activities | (1,539) | (1,697) | | Net increase in cash and cash equivalents | 7,713 | 3,520 | | Cash and cash equivalents at beginning of period | 206,143 | 165,252 | | Effect of exchange rate changes | 7 | 18 | | Cash and cash equivalents at end of period | 213,863 | 168,790 | - The significant increase in net cash from operating activities was the main driver of the increase in cash and cash equivalents[62] - Cash flows used in investing activities primarily included the purchase of property, plant and equipment[62] Notes to the Interim Financial Report 1. General Information The company, incorporated in the Cayman Islands, primarily engages in the plastic food container business and e-commerce operations in China - The company was incorporated in the Cayman Islands on December 13, 2018[63] - Its principal activities are the production and sale of disposable plastic food containers and the operation of an e-commerce platform[63] - Mr Xu Youjiang is the ultimate controlling party of the Group[64] 2. Basis of Preparation The unaudited interim financial information has been prepared in accordance with HKAS 34 and the disclosure requirements of the GEM Listing Rules - The financial information is prepared in accordance with the GEM Listing Rules and Hong Kong Accounting Standard (HKAS) 34[65] - The information is unaudited, presented in thousands of RMB, and was approved for issue by the Board of Directors on August 28, 2025[66] 3. Significant Accounting Policies The accounting policies adopted are consistent with the 2024 annual financial statements, except for new HKFRS standards effective from January 1, 2025 - The accounting policies are consistent with the 2024 annual consolidated financial statements, except for the adoption of new and revised Hong Kong Financial Reporting Standards (HKFRS) effective January 1, 2025[67] - The adoption of new and revised HKFRS, such as amendments to HKAS 21 on Lack of Exchangeability, had no material impact on the results and financial position[68][69] - The Group has not applied any new standards, interpretations, or amendments that are not yet effective for the current accounting period[70] 4. Estimates and Judgements The preparation of the financial information requires management to make judgements and estimates that are consistent with those applied in the 2024 annual report - The preparation of financial information involves accounting judgements, estimates, and assumptions, where actual results may differ[71] - The key sources of estimation uncertainty and critical judgements are the same as those applied in the 2024 annual consolidated financial statements[71] 5. Segment Information The Group's disposable plastic food container segment remained profitable but saw declining revenue, while the e-commerce segment shifted from a profit to a loss Analysis of Revenue and Results by Operating and Reportable Segment (For the six months ended June 30) | Indicator (RMB in thousands) | Disposable Plastic Food Containers (2025) | E-commerce (2025) | Total (2025) | Disposable Plastic Food Containers (2024) | E-commerce (2024) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from external customers | 108,278 | 1,239 | 109,517 | 143,720 | 12,108 | 155,828 | | Segment results | 15,984 | (2,013) | 13,971 | 27,236 | 1,123 | 28,359 | | Unallocated expenses | | | (918) | | | (2,602) | | Profit before income tax | | | 13,053 | | | 25,757 | | Profit for the period | | | 8,951 | | | 18,765 | Analysis of Assets and Liabilities by Operating and Reportable Segment (As at June 30, 2025) | Indicator (RMB in thousands) | Disposable Plastic Food Containers (2025) | E-commerce (2025) | Unallocated (2025) | Total (2025) | Disposable Plastic Food Containers (2024) | E-commerce (2024) | Unallocated (2024) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Reportable segment assets | 306,126 | 8,272 | 19,063 | 333,461 | 310,394 | 8,386 | 20,467 | 339,247 | | Reportable segment liabilities | 23,120 | 4,971 | 7,972 | 36,063 | 39,270 | 4,935 | 6,597 | 50,802 | - The e-commerce segment recorded a loss in the first half of 2025, compared to a profit in the same period of 2024[74] 6. Revenue The Group's total revenue declined significantly, driven by a sharp drop in sales of "Jazz Rabbit" branded products and e-commerce goods Disaggregation of Revenue from Contracts with Customers (For the six months ended June 30) | Product Category (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Brand: | | | | "Jazz Rabbit" branded products | 97,644 | 133,038 | | Non-branded products (food containers) | 10,634 | 10,682 | | Total disposable plastic food containers | 108,278 | 143,720 | | Non-branded e-commerce (necessities and other household products) | 1,239 | 12,108 | | Total revenue | 109,517 | 155,828 | | Nature: | | | | Regular products | 67,570 | 123,119 | | Customised products | 39,740 | 18,904 | | Others (food containers) | 968 | 1,697 | | Non-branded e-commerce | 1,239 | 12,108 | - All revenue was derived from China[79] - Revenue from customised products grew significantly year-on-year, while revenue from regular products declined sharply[78] 7. Other Income The Group's other income decreased in the first half of 2025, mainly due to lower bank interest and miscellaneous income Other Income (For the six months ended June 30) | Category (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Bank interest income | 94 | 155 | | Interest income (Note 16) | 514 | 514 | | Others | 31 | 611 | | Total | 639 | 1,280 | 8. Finance Costs The Group's finance costs, related to interest expenses on lease arrangements, decreased during the period Finance Costs (For the six months ended June 30) | Category (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Interest expenses on lease arrangements | 86 | 140 | 9. Profit Before Income Tax Profit before income tax was arrived at after accounting for various expenses, including depreciation, amortization, R&D, and transfer of listing costs Items Deducted from Profit Before Income Tax (For the six months ended June 30) | Category (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Depreciation (owned) | 5,122 | 5,934 | | Depreciation (held under leases) | 1,009 | 1,113 | | Amortisation of intangible assets included in administrative and other operating expenses | 1,304 | 1,533 | | Cost of inventories recognised as an expense | 66,537 | 86,711 | | Research and development costs (including staff costs) | 5,461 | 4,960 | | Loss on disposal of property, plant and equipment | 364 | 31 | | Transfer of listing and related expenses | 1,371 | 983 | | Staff costs (including directors' remuneration): Salaries, allowances and other benefits | 8,095 | 8,809 | | Staff costs (including directors' remuneration): Contributions to defined contribution retirement plans | 1,482 | 860 | | Total staff costs | 9,577 | 9,669 | 10. Income Tax Expense The Group's income tax expense, arising solely from China Enterprise Income Tax, decreased in line with lower taxable profits Income Tax Expense (For the six months ended June 30) | Category (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Current tax: Provision for China Enterprise Income Tax | 4,102 | 6,992 | - China Enterprise Income Tax is calculated at the applicable rate of 25%[84] - No provision for profits tax was made for the company and its Hong Kong operations as there were no assessable profits[83] 11. Dividend The directors do not recommend the payment of an interim dividend for the first half of 2025 - The directors do not recommend the payment of an interim dividend for the first half of 2025 (2024: Nil)[86] 12. Earnings Per Share The Group's basic and diluted earnings per share for the period was RMB1.20 cents, with no potential dilutive ordinary shares outstanding Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Earnings: Profit for the period attributable to equity holders of the Company for the purpose of calculating basic earnings per share (RMB in thousands) | 8,951 | 18,765 | | Number of shares: Number of ordinary shares for the purpose of calculating basic earnings per share (in thousands) | 748,483 | 748,483 | | Basic and diluted earnings per share | RMB1.20 cents | RMB2.51 cents | - Diluted earnings per share is equal to basic earnings per share as there were no potential dilutive ordinary shares in issue[88] 13. Property, Plant and Equipment The Group acquired new property, plant, and equipment and recorded a loss on the disposal of certain assets during the period - During the period, the Group acquired property, plant and equipment of approximately RMB2,625 thousand (2024 equivalent period: RMB2,555 thousand)[89] - Plant and equipment with a total carrying amount of RMB364 thousand were disposed of, resulting in a loss on disposal of RMB364 thousand (2024 equivalent period: RMB31 thousand)[89] 14. Lease Liabilities The Group's lease liabilities, primarily for office and factory properties, decreased as of June 30, 2025 Lease Liabilities (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current portion | 867 | 2,032 | | Non-current portion | 1,921 | 2,209 | | Total | 2,788 | 4,241 | - Lease liabilities are mainly related to the leasing of office and factory properties[91] - The lease agreement with Hengsheng Toys (a related party) has a term of three years, renewable for another three years, and can be extended up to a maximum of twenty years by negotiation[91] 15. Intangible Assets The net book value of the Group's intangible assets, including application development costs and patents, decreased due to amortization Net Book Value of Intangible Assets (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Mobile application development costs | 335 | 1,151 | | Know-how patents | 2,064 | 2,552 | | Trademark | — | — | | Total | 2,399 | 3,703 | - The amortization charge for intangible assets during the period was RMB1,304 thousand[93] 16. Financial Assets at Fair Value Through Profit or Loss The Group's investment in a film production, classified as a financial asset at FVTPL, remained unchanged in value and is expected to be released in 2025 Financial Assets at FVTPL (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investment in film production | 20,416 | 20,416 | - The investment in film production, through a 100% equity interest in Yizhen Film, entitles the Group to a share of the film project's revenue[95][96] - The film production has been completed and is expected to be released in 2025[98][99] - The controlling shareholder, Mr Xu, pays a 5% annual penalty interest (RMB514 thousand) until the film's release[99] 17. Inventories The Group's total inventory level saw a slight increase, with a rise in finished goods and a decrease in raw materials Inventories (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | 3,889 | 4,966 | | Finished goods | 5,739 | 4,140 | | Total | 9,628 | 9,106 | 18. Trade and Other Receivables The Group's total trade and other receivables decreased, although there was a significant increase in receivables aged between 61 and 90 days Trade and Other Receivables (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables (from third parties) | 48,228 | 59,975 | | Prepayments and other receivables | 3,553 | 660 | | Total | 51,781 | 60,635 | Ageing Analysis of Trade Receivables (RMB in thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 17,666 | 31,552 | | 31 to 60 days | 22,318 | 27,628 | | 61 to 90 days | 8,244 | 795 | | Total | 48,228 | 59,975 | - The credit period is generally 60 days[102] - Trade receivables aged 61 to 90 days increased significantly[103] 19. Cash and Cash Equivalents The Group's cash and bank balances are primarily denominated in RMB and held in banks in China, subject to foreign exchange controls - As of June 30, 2025, bank balances and cash amounted to approximately RMB213,725 thousand (December 31, 2024: approximately RMB205,981 thousand)[105] - The funds are mainly denominated in RMB and deposited with banks in China[105] - RMB is not a freely convertible currency and is subject to foreign exchange controls in China[105] 20. Trade and Other Payables The Group's trade and other payables decreased, with a notable portion being the consideration payable for the acquisition of Yizhen Film Trade and Other Payables (RMB in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables (to third parties) | 17,126 | 27,865 | | Accrued expenses and other payables | 14,169 | 15,290 | | Of which: Consideration payable (Note (i)) | 6,171 | 6,171 | | Total | 31,295 | 43,155 | Ageing Analysis of Trade Payables (RMB in thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 15,089 | 18,089 | | 31 to 60 days | 2,037 | 9,776 | | Total | 17,126 | 27,865 | - The consideration payable relates to promissory notes for the acquisition of 100% equity in Yizhen Film, which are interest-free and repayable on demand upon the public release of the movie in China[108] 21. Share Capital The company's share capital structure, comprising ordinary shares with a par value of HKD0.01 each, remained unchanged Share Capital (RMB in thousands) | Category | Number of Ordinary Shares | RMB in thousands | | :--- | :--- | :--- | | Authorised: At December 31, 2024 (audited) and June 30, 2025 (unaudited) | 5,000,000,000 | 45,147 | | Issued and fully paid: At December 31, 2024 (audited) and June 30, 2025 (unaudited) | 748,482,760 | 6,667 | - The ordinary shares of the company have a par value of HKD0.01 each[109] 22. Related Party Transactions The Group's related party transactions during the period consisted solely of compensation for key management personnel Key Management Personnel Remuneration (RMB in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Salaries, allowances and benefits | 479 | 477 | | Retirement scheme contributions | 9 | 9 | | Total | 488 | 486 |