南方通信(01617) - 2025 - 中期业绩

Summary The Group's key operating results for the six months ended June 30, 2025, show a decrease in total revenue but a significant increase in profit and total comprehensive income Key Operating Results for the Six Months Ended June 30, 2025 | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 185.5 | 256.8 | -27.7% | | Gross Profit | 34.3 | 34.6 | -0.8% | | Gross Margin | 18.5% | 13.5% | +5.0 percentage points | | Profit and Total Comprehensive Income | 26.1 | 5.5 | +374.5% | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[3] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents the Group's financial performance, showing a substantial increase in profit and total comprehensive income for the six months ended June 30, 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 185,520 | 256,750 | | Cost of Sales | (151,207) | (222,146) | | Gross Profit | 34,313 | 34,604 | | Other income, gains, expenses and losses, net | 7,107 | 9,474 | | Impairment loss on trade and other receivables under expected credit loss model, net of reversal | - | 923 | | Fair value change of financial assets at fair value through profit or loss | 18,222 | - | | Selling and distribution expenses | (7,948) | (11,061) | | Administrative expenses | (15,033) | (17,457) | | Research costs | (13,678) | (13,419) | | Finance costs | (4,253) | (2,157) | | Share of profit of an associate | 5,674 | 5,180 | | Share of profit of a joint venture | 1,418 | 1,700 | | Profit Before Income Tax | 25,822 | 7,787 | | Income tax credit/(expense) | 314 | (2,268) | | Profit and Total Comprehensive Income for the Period | 26,136 | 5,519 | | Earnings Per Share | RMB 0.016 | RMB 0.003 | Condensed Consolidated Statement of Financial Position This statement details the Group's assets, liabilities, and equity as of June 30, 2025, reflecting changes from the end of the previous year Condensed Consolidated Statement of Financial Position as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, plant and equipment | 213,766 | 208,236 | | Right-of-use assets | 45,660 | 46,134 | | Interests in an associate | 112,900 | 107,076 | | Interests in a joint venture | 51,320 | 49,902 | | Financial assets at fair value through profit or loss | 179,500 | 161,278 | | Restricted bank deposits and balances | 2,785 | 4,000 | | Bank deposits with original maturity over three months | 6,300 | 20,000 | | Deferred tax assets | 25,876 | 24,488 | | Total Non-current Assets | 638,107 | 621,114 | | Current Assets | | | | Inventories | 25,869 | 27,313 | | Trade and bills receivables | 349,487 | 436,221 | | Prepayments, deposits and other receivables | 33,244 | 43,484 | | Restricted bank deposits and balances | 78,363 | 169,631 | | Bank deposits with original maturity over three months | - | 10,500 | | Bank deposits, bank balances and cash | 271,072 | 201,084 | | Total Current Assets | 758,035 | 888,233 | | Current Liabilities | | | | Trade and bills payables | 237,049 | 278,330 | | Other payables | 23,155 | 19,644 | | Contract liabilities | 2,136 | 2,278 | | Bank borrowings | 132,000 | 201,342 | | Tax payable | 6,432 | 6,415 | | Total Current Liabilities | 400,772 | 508,009 | | Net Current Assets | 357,263 | 380,224 | | Total Assets Less Current Liabilities | 995,370 | 1,001,338 | | Capital and Reserves | | | | Share capital | 1,418 | 1,418 | | Reserves | 842,702 | 816,566 | | Equity Attributable to Owners of the Company | 844,120 | 817,984 | | Non-current Liabilities | | | | Bank borrowings | 127,000 | 159,000 | | Deferred tax liabilities | 10,534 | 10,087 | | Deferred income - government grants | 13,716 | 14,267 | | Total Non-current Liabilities | 151,250 | 183,354 | | Total Equity and Liabilities | 995,370 | 1,001,338 | Notes to the Financial Statements These notes provide detailed explanations and disclosures supporting the condensed consolidated financial statements 1. Basis of Preparation The condensed consolidated financial statements are prepared in accordance with IAS 34 and the disclosure requirements of Appendix D2 of the Listing Rules - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix D2 to the Listing Rules[8] 2. Significant Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value, and new IFRS standards had no material impact - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments which are measured at fair value[9] - The revised International Financial Reporting Standards issued by the International Accounting Standards Board, which are effective for the current interim period, have been applied for the first time but had no material impact on the Group's financial position and performance[10] 3. Revenue Revenue is primarily derived from the sale of optical cables, fiber optic distribution network equipment, and color-coated steel plates, recognized at a point in time - The Group's revenue represents amounts received and receivable from the sale of optical cables, fiber optic distribution network equipment, and color-coated steel plates, net of discounts, customer returns, and sales-related taxes, with revenue recognized at a point in time[11] - The Group primarily sells products to the four major state-owned telecommunication network operators in China and other companies, with revenue recognized when control is transferred, i.e., when goods are delivered to the customer's designated location[12] - The Group typically issues invoices within six months after goods delivery and grants credit terms of up to six months to major Chinese telecommunication network operators and up to one year to other customers with good repayment records[12] 4. Segment Information The Group has combined its optical cable and related equipment segment with the color-coated steel plate segment into a single reportable segment, with all non-financial non-current assets located in China - The Group has combined its optical cable and related equipment segment and the processing and sale of color-coated steel plates segment into a single reportable and operating segment to better reflect its latest business strategy[13] - The Group primarily operates in China, where all its non-current assets (excluding financial assets at fair value through profit or loss and deferred tax assets) are located[14] 5. Other Income, Gains, Expenses and Losses, Net Net other income, gains, expenses, and losses decreased to RMB 7.1 million for the six months ended June 30, 2025, mainly due to lower bank interest income and government grants Other Income, Gains, Expenses and Losses, Net | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 1,551 | 3,557 | | Net foreign exchange (losses)/gains | (35) | 801 | | Gains from sales of electricity and other materials | 2,759 | 607 | | Government grants recognized | 2,187 | 4,714 | | (Losses)/gains on disposal of property, plant and equipment | (191) | 15 | | Others | 836 | (220) | | Total | 7,107 | 9,474 | 6. Finance Costs Finance costs significantly increased to RMB 4.3 million for the six months ended June 30, 2025, primarily due to higher borrowing interest and no capitalization Finance Costs | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on borrowings | 4,253 | 3,706 | | Interest on lease liabilities | - | 1 | | Subtotal | 4,253 | 3,707 | | Less: Amount capitalized into construction in progress | - | (1,550) | | Finance Costs | 4,253 | 2,157 | - For the six months ended June 30, 2025, the capitalization rate used to determine the amount of interest capitalized was approximately 1.85%[16] 7. Income Tax Credit/(Expense) The Group recorded an income tax credit of RMB 0.3 million for the period, a shift from an expense in the prior year, mainly due to the recognition of deferred tax assets Income Tax Credit/(Expense) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China corporate income tax - Current tax | 627 | 1,769 | | China corporate income tax - Deferred tax | (941) | 499 | | Income Tax (Credit)/Expense | (314) | 2,268 | - The Company's subsidiaries, Southern Communication and Yingke, are recognized as "High and New Technology Enterprises" for three years starting from 2022, enjoying a reduced corporate income tax rate of 15%[18] 8. Profit Before Income Tax Profit before income tax for the six months ended June 30, 2025, was RMB 25.8 million, with inventory costs of RMB 151.2 million and total staff costs of RMB 15.4 million recognized in cost of sales Items Deducted from Profit Before Income Tax | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Inventory costs recognized in cost of sales | 151,207 | 222,146 | | Depreciation of property, plant and equipment | 2,884 | 3,648 | | Less: Depreciation capitalized into inventories | (1,887) | (3,228) | | Depreciation recognized in cost of sales | 997 | 420 | | Depreciation of right-of-use assets | 474 | 604 | | Total staff costs | 15,424 | 15,611 | 9. Earnings Per Share Basic earnings per share significantly increased to RMB 0.016 for the six months ended June 30, 2025, with no diluted earnings per share presented due to the absence of potential ordinary shares Earnings Per Share Calculation | Indicator | 2025 (RMB thousand/thousand shares) | 2024 (RMB thousand/thousand shares) | | :--- | :--- | :--- | | Profit for basic earnings per share | 26,136 | 5,519 | | Weighted average number of ordinary shares for basic earnings per share | 1,626,240 | 1,626,240 | | Basic Earnings Per Share | RMB 0.016 | RMB 0.003 | - Diluted earnings per share is not presented as there were no potential ordinary shares outstanding during either period[21] 10. Dividends The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[22] 11. Trade and Bills Receivables Trade and bills receivables decreased to RMB 349.5 million as of June 30, 2025, with the majority of trade receivables due within six months Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 356,756 | 441,339 | | Less: Provision for credit losses | (9,423) | (9,423) | | Net trade receivables | 347,333 | 431,916 | | Bills receivables | 2,154 | 4,305 | | Total Trade and Bills Receivables | 349,487 | 436,221 | Ageing Analysis of Trade Receivables (Net of Provision for Credit Losses) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Less than 6 months | 313,516 | 411,022 | | Over 6 months but less than 1 year | 21,902 | 9,197 | | Over 1 year | 11,915 | 11,697 | | Net Trade Receivables | 347,333 | 431,916 | - The Group allows credit terms of up to six months to major Chinese telecommunication network operators and up to one year to other customers with good repayment records[25] 12. Restricted Bank Deposits and Balances The Group's restricted bank deposits and balances are pledged to banks for the issuance of bills payable - As of December 31, 2024, and June 30, 2025, the Group's restricted bank deposits and balances were pledged to banks for the issuance of bills payable[26] 13. Trade and Bills Payables Trade and bills payables decreased to RMB 237.0 million as of June 30, 2025, with an average credit period for material purchases within four months Trade and Bills Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 104,805 | 156,438 | | Bills payables | 132,244 | 121,892 | | Total Trade and Bills Payables | 237,049 | 278,330 | - The average credit period for purchases of materials is within four months after receipt of materials and relevant VAT invoices[27] Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Less than 6 months | 98,459 | 145,225 | | Over 6 months but less than 1 year | 1,069 | 3,562 | | Over 1 year | 5,277 | 7,651 | | Total Trade Payables | 104,805 | 156,438 | 14. Bank Borrowings Total interest-bearing bank borrowings decreased to approximately RMB 259.0 million as of June 30, 2025, with all borrowings bearing floating interest rates between 2.20% and 3.30% - As of June 30, 2025, the Group had interest-bearing bank borrowings of approximately RMB 259.0 million (December 31, 2024: approximately RMB 360.3 million)[29] - As of June 30, 2025, the Group's bank borrowings of approximately RMB 259.0 million bore floating interest rates ranging from 2.20% to 3.30% per annum[29] - The Group encountered no difficulties in complying with covenants related to bank borrowings and had no breaches of covenants at the end of the reporting period[30] 15. Share Capital As of June 30, 2025, the Company's authorized share capital was 8,000,000,000 ordinary shares of HKD 0.001 each, with 1,626,240,000 shares issued and fully paid Share Capital Composition | Item | June 30, 2025 (HKD thousand/RMB thousand) | December 31, 2024 (HKD thousand/RMB thousand) | | :--- | :--- | :--- | | Authorized share capital (8,000,000,000 ordinary shares of HKD 0.001 each) | 8,000 | 8,000 | | Issued and fully paid share capital (1,626,240,000 ordinary shares of HKD 0.001 each) | 1,626 | 1,626 | | Presented in condensed consolidated statement of financial position (RMB thousand) | 1,418 | 1,418 | Management Discussion and Analysis This section provides an overview of the Group's operational and financial performance, liquidity, risk management, and future outlook Business Review The Group's total revenue decreased by 27.7% to RMB 185.5 million, but profit and total comprehensive income significantly increased to RMB 26.1 million, with basic EPS at RMB 0.016 Business Performance Overview | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 185.5 | 256.8 | -27.7% | | Gross Profit | 34.3 | 34.6 | -0.8% | | Profit and Total Comprehensive Income | 26.1 | 5.5 | +374.5% | | Basic Earnings Per Share | RMB 0.016 | RMB 0.003 | +433.3% | Financial Review The Group experienced decreased revenue and cost of sales, improved gross margin, reduced other income, lower selling and administrative expenses, slightly increased research costs, and significantly higher finance costs, leading to a substantial increase in profit attributable to owners Revenue Total revenue for the period decreased by approximately 27.7% to RMB 185.5 million - For the reporting period, the Group's total revenue was approximately RMB 185.5 million, representing a decrease of approximately 27.7% compared to the same period last year[33] Cost of Sales Cost of sales decreased by approximately 31.9% to RMB 151.2 million for the period - For the reporting period, the cost of sales was approximately RMB 151.2 million, representing a decrease of approximately 31.9% compared to the same period last year[34] Gross Profit and Gross Margin Gross profit decreased by 0.8% to RMB 34.3 million, while gross margin increased to 18.5% due to a lower proportion of raw material costs - For the reporting period, gross profit was approximately RMB 34.3 million, representing a decrease of approximately 0.8% compared to the same period last year[35] - The gross margin increased from 13.5% in the same period last year to 18.5% in the reporting period, primarily due to a lower proportion of raw material costs[35] Other Income, Gains, Expenses and Losses, Net Net other income decreased to RMB 7.1 million, primarily due to lower bank interest income and government grants - Net other income decreased from approximately RMB 9.5 million in the same period last year to approximately RMB 7.1 million in the reporting period, mainly due to reduced bank interest income and government grants[36] Selling and Distribution Expenses Selling and distribution expenses decreased by 28.1% to RMB 7.9 million, mainly due to lower freight charges - Selling and distribution expenses were approximately RMB 7.9 million, representing a decrease of approximately 28.1% compared to the same period last year, primarily due to lower total freight charges[37] Administrative Expenses Administrative expenses decreased by 13.9% to RMB 15.0 million, consistent with overall operations and stricter cost control measures - Administrative expenses were approximately RMB 15.0 million, representing a decrease of approximately 13.9% compared to the same period last year, consistent with overall operations and stricter control measures on business and marketing expenses[38] Research Costs Research costs slightly increased by 1.9% to RMB 13.7 million for the period - Research costs were approximately RMB 13.7 million, representing a slight increase of approximately 1.9% compared to the same period last year[39] Finance Costs Finance costs increased by 97.2% to RMB 4.3 million, mainly due to higher average bank loans and full recognition of interest expenses - Finance costs were approximately RMB 4.3 million, representing an increase of approximately 97.2% compared to the same period last year, primarily due to higher average bank loans and full recognition of interest expenses[40] Share of Profit of an Associate Share of profit from an associate, primarily engaged in fiber optic manufacturing and sales, increased by 9.5% to RMB 5.7 million - Share of profit of an associate was approximately RMB 5.7 million, representing an increase of approximately 9.5% compared to the same period last year, with the associate primarily engaged in optical fiber manufacturing and sales[41] Share of Profit of a Joint Venture Share of profit from a joint venture, engaged in manufacturing and selling optical fiber preforms, decreased by 16.6% to RMB 1.4 million - Share of profit of a joint venture was approximately RMB 1.4 million, representing a decrease of approximately 16.6% compared to the same period last year, with the joint venture engaged in manufacturing and selling optical fiber preforms[42] Income Tax Credit/Expense The Group recorded an income tax credit of RMB 0.3 million, primarily from the recognition of deferred tax assets - For the reporting period, an income tax credit of approximately RMB 0.3 million was recorded, primarily due to the recognition of deferred tax assets[43] Profit and Total Comprehensive Income Attributable to Owners of the Company The Group's profit and total comprehensive income significantly increased to RMB 26.1 million from RMB 5.5 million in the prior period - The Group recorded profit and total comprehensive income of approximately RMB 26.1 million, a significant increase compared to approximately RMB 5.5 million in the same period last year[44] Liquidity, Financial and Capital Resources The Group's operations are funded by equity, reserves, and bank borrowings, with a decrease in cash and bank deposits, lower bank borrowings, and a significantly reduced gearing ratio Cash and Loan Position Total cash and bank deposits decreased by 11.5% to RMB 358.5 million, while interest-bearing bank borrowings decreased to RMB 259.0 million, all at floating rates - As of June 30, 2025, the Group's total cash and bank deposits were approximately RMB 358.5 million, representing a decrease of approximately 11.5% compared to December 31, 2024[46] - As of June 30, 2025, the Group had interest-bearing bank borrowings of approximately RMB 259.0 million, a decrease from approximately RMB 360.3 million as of December 31, 2024[46] - All bank borrowings bear floating interest rates ranging from 2.20% to 3.30% per annum[46] Pledge of the Group's Assets The Group pledged approximately RMB 81.1 million in bank deposits as collateral for bills payable - As of June 30, 2025, the Group pledged bank deposits of approximately RMB 81.1 million as collateral for bills payable[48] Gearing Ratio The Group's gearing ratio significantly decreased to approximately 65.4% as of June 30, 2025 - As of June 30, 2025, the Group's gearing ratio was approximately 65.4% (December 31, 2024: approximately 84.5%)[49] Risk Management The Group manages currency risk through monitoring, interest rate risk without derivatives, credit risk via limits and monitoring, and liquidity risk by maintaining cash flow and funding flexibility Currency Risk The Group manages foreign currency risk by closely monitoring exchange rate movements and may use contracts for hedging - The Group manages foreign currency risk by closely monitoring movements in foreign currency exchange rates and may use contractual arrangements to hedge currency risk[50] Interest Rate Risk The Group faces fair value and cash flow interest rate risks but currently does not use derivatives for hedging - The Group is exposed to fair value interest rate risk (fixed-rate deposits and borrowings) and cash flow interest rate risk (floating-rate financial instruments) but currently does not use derivative instruments to hedge interest rate risk[51] Credit Risk Credit risk primarily arises from trade and bills receivables, managed through credit limits and impairment assessments, with a concentration in major Chinese telecom operators - The Group's credit risk primarily arises from trade and bills receivables, managed through setting credit limits, monitoring procedures, and impairment assessments[52] - Bank deposits and balances are placed with reputable banks with high internal credit ratings, and expected credit losses are not significant[53] - The Group has a concentrated credit risk, with approximately 89.3% of trade receivables due from major Chinese telecommunication network operators[54] Liquidity Risk Liquidity risk is managed by regularly monitoring cash flow and maintaining funding flexibility through available credit lines and new share issuance - The Group's management regularly monitors cash flow positions and maintains funding flexibility by keeping available credit facilities and issuing new ordinary shares[56] Capital Commitments As of June 30, 2025, the Group had capital commitments of approximately RMB 16.6 million for contracted but unprovided capital expenditures on property, plant, and equipment - As of June 30, 2025, the Group's capital commitments for contracted but unprovided capital expenditures on the acquisition of property, plant and equipment amounted to approximately RMB 16.6 million (December 31, 2024: approximately RMB 20.1 million)[57] Employees and Remuneration Policy The Group had approximately 310 employees with total staff costs of RMB 15.4 million for the period, offering competitive remuneration and participating in employee welfare schemes - As of June 30, 2025, the Group had approximately 310 employees (same period last year: approximately 320 employees)[58] - For the reporting period, the Group incurred staff costs of approximately RMB 15.4 million (same period last year: approximately RMB 15.6 million)[58] - The Group participates in various employee welfare schemes and adopts competitive remuneration packages for its employees, which are regularly reviewed with reference to market practices and legal requirements[58] Outlook Despite short-term pressure on optical cable production, the industry is showing recovery, with an optimistic outlook for the second half of 2025 driven by technological advancements and national policies, prompting the Group to deepen partnerships, expand markets, and increase R&D - In the first half of 2025, domestic optical cable production reached 125 million fiber-km, a year-on-year decrease of approximately 2.9%, indicating a significant narrowing of the decline and the industry entering a convergence period[59] - Domestic telecommunication operators are accelerating backbone network upgrades, with China Mobile, China Telecom, and China Unicom all advancing 800G all-optical network deployment[60] - The outlook for the optical fiber industry in the second half of 2025 is optimistic, benefiting from the development of 5G-A networks, 10-gigabit optical networks, East-to-West Data Transmission Project, cloud computing, artificial intelligence, and national industrial policy support[61] - The Group will deepen cooperation with operators to solidify its core market, vigorously expand into non-operator and overseas markets, and increase investment in areas such as data centers, industrial internet, and enterprise private networks[62] - The Group will actively invest in R&D resources, focusing on high-speed transmission (e.g., ultra-low loss large effective area optical fiber G.654.E, new optical fibers supporting 1.6T applications), high-density interconnection for data centers, and green and low-carbon products[62] Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[63] Sufficiency of Public Float The Company maintained a sufficient public float throughout the reporting period and up to the date of the announcement - The Company maintained a sufficient public float during the reporting period and up to the date of this announcement[64] Corporate Governance Practices and Other Information This section outlines the Company's adherence to corporate governance standards, including compliance with the Corporate Governance Code and the Model Code for Securities Transactions by Directors Corporate Governance Code The Company adheres to the Corporate Governance Code, having restored compliance with the minimum independent non-executive director requirement after a temporary shortfall - The Company has adopted the Corporate Governance Code as set out in Appendix C1 to the Listing Rules and has complied with the applicable code provisions during the reporting period and up to the date of this announcement[65] - Following the passing of Mr. Hu Yongquan, the number of independent non-executive Directors fell below the minimum required under Rule 3.10(1) of the Listing Rules during the reporting period[65] - Upon the appointment of Ms. Ju Hefeng as an independent non-executive Director on August 1, 2025, the Company has complied with Rule 3.10(1) of the Listing Rules[66] Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers The Company has adopted and, with the exception of a deceased director, all directors have complied with the Model Code for Securities Transactions by Directors of Listed Issuers - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[67] - All Directors, except for the late Mr. Hu Yongquan, have complied with the required standards of the Model Code during the reporting period and up to the date of this announcement[67] Audit Committee The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive Directors: Mr. Chen Jirong (Chairman), Mr. Liu Zhengqi, and Ms. Ju Hefeng[68] - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[68] 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 or up to the announcement date - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period and up to the date of this announcement[69] Material Acquisitions and Disposals of Subsidiaries and Associates The Group had no material acquisitions or disposals of subsidiaries and associates during the period, except for a very substantial disposal of Source Photonics Holdings (Cayman) Limited shares - The Group had no material acquisitions or disposals of its subsidiaries and associates during the reporting period, except for a very substantial disposal[70][73] - Pacific Smart, an indirect wholly-owned subsidiary of the Company, conditionally agreed to dispose of 8,235,293 Class A preferred shares (representing approximately 4.00% equity interest) in Source Photonics Holdings (Cayman) Limited for a consideration of USD 25,181,055.41 (approximately RMB 180.8 million)[71] - This disposal constitutes a very substantial disposal under the Listing Rules and is subject to approval by the Company's shareholders at an extraordinary general meeting to be held on September 15, 2025[71] Events After the Reporting Period No significant events affecting the Group occurred from the end of the reporting period up to the date of the announcement - No significant events affecting the Group have occurred from the end of the reporting period up to the date of this announcement[74] Publication of Interim Results and Interim Report The interim results announcement is available on the HKEX and Company websites, with the interim report to be dispatched to shareholders by September 26, 2025 - This announcement is published on the website of the Stock Exchange (www.hkexnews.hk) and the Company's website (www.jsnfgroup.com)[75](index=75&type=chunk) - The Company's interim report for the reporting period will be dispatched to the Company's shareholders on or before September 26, 2025, and will be available on the Stock Exchange's website and the Company's website[75]