中国口腔产业(08406) - 2025 - 中期财报

Company Information This section provides key corporate details including the Board of Directors, committees, statutory officers, registered offices, and financial service providers Board of Directors This section lists the executive and independent non-executive directors, noting the removal of Ms. Shen Jindan and the appointment of Mr. Geng Chuanlong - Ms. Yan Ping serves as Chairperson, and Mr. Liu Yaoguang serves as Chief Executive Officer[5] - Independent Non-executive Director Ms. Shen Jindan was removed on June 6, 2025, and Mr. Geng Chuanlong was appointed on August 29, 2025[5] Board Committees This section details the composition of the Audit, Remuneration, and Nomination Committees, including adjustments due to director changes - The Audit Committee is chaired by Ms. Lian Jingyu, with members including Ms. Deng Xin, Ms. Jiang Caiying, and the newly appointed Mr. Geng Chuanlong[5] - The Remuneration Committee is chaired by Ms. Deng Xin, with members including Ms. Lian Jingyu, Mr. Liu Yaoguang, Ms. Jiang Caiying, and the newly appointed Mr. Geng Chuanlong[5] - The Nomination Committee is chaired by Ms. Yan Ping, with members including Ms. Lian Jingyu, Ms. Jiang Caiying, and the newly appointed Mr. Geng Chuanlong[5] Compliance Officer This section identifies Mr. Xiao Jiansheng as the Company's Compliance Officer - Mr. Xiao Jiansheng serves as the Compliance Officer[5] Legal Representatives This section lists Ms. Yan Ping and Ms. Zhan Lijuan as the Company's Legal Representatives - Ms. Yan Ping and Ms. Zhan Lijuan are the Company's Legal Representatives[5] Company Secretaries This section identifies Ms. Zhan Lijuan and Ms. Chen Leyan as the Company Secretaries - Ms. Zhan Lijuan and Ms. Chen Leyan serve as Company Secretaries[5] Cayman Islands Registered Office This section provides the Company's registered office address in the Cayman Islands - The Company's registered office is located at Windward 3, Regatta Office Park, P.O. Box 1350, Grand Cayman, KY1-1108, Cayman Islands[5] Head Office This section provides the Company's head office address in China - The Company's head office is located at Dongcheng Industrial Park, Xinping Road, Minzhong Town, Zhongshan City, Guangdong Province, China[6] Principal Place of Business in Hong Kong This section provides the Company's principal place of business address in Hong Kong - The Company's principal place of business in Hong Kong is located at Room 304, 3/F, Tung Kin Building, 43 Queen's Road East, Hong Kong[6] Auditor This section identifies BDO Limited as the Company's Auditor - BDO Limited is the Company's Auditor[6] Cayman Islands Principal Share Registrar This section provides information on the Company's principal share registrar in the Cayman Islands - Ocorian Trust (Cayman) Limited is the principal share registrar in the Cayman Islands[7] Hong Kong Share Registrar Branch This section provides information on the Company's share registrar branch in Hong Kong - Tricor Investor Services Limited is the Hong Kong share registrar branch[7] Principal Bankers This section lists the Company's principal bankers - Principal bankers include Bank of China, Industrial and Commercial Bank of China (Asia) Limited, and Dongguan Bank Hong Kong Branch[7] GEM Stock Code This section provides the Company's GEM stock code - The Company's GEM stock code is 8406[7] Company Website This section provides the Company's official website address - The Company's website is www.chinaoral.co[7](index=7&type=chunk) Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents the Group's financial performance for the six months ended June 30, 2025, showing a decrease in revenue but significant profit growth due to increased other income and reduced finance costs - This unaudited condensed consolidated statement of profit or loss and other comprehensive income presents the Group's financial performance for the six months ended June 30, 2025, showing a decrease in revenue compared to the same period in 2024, but a significant increase in profit for the period due to a substantial increase in other income and gains and a significant reduction in finance costs[8] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 109,263 | 124,660 | -12.4% | | Cost of Sales | (90,141) | (101,256) | -11.0% | | Gross Profit | 19,122 | 23,404 | -18.3% | | Other Income and Gains | 6,895 | 1,254 | +449.8% | | Distribution and Selling Expenses | (7,516) | (12,483) | -39.8% | | Administrative Expenses | (12,079) | (10,466) | +15.4% | | Finance Costs | (72) | (558) | -87.1% | | Profit Before Tax | 6,350 | 1,151 | +451.7% | | Income Tax Expense | (2,281) | (271) | +741.7% | | Profit for the Period | 4,069 | 880 | +362.4% | | Basic Earnings Per Share (RMB cents) | 0.30 | 0.08 | +275.0% | Unaudited Condensed Consolidated Statement of Financial Position This statement presents the Group's assets, liabilities, and equity as of June 30, 2025, showing a slight decrease in total assets but an increase in net current assets and net assets, reflecting an improved financial structure - This unaudited condensed consolidated statement of financial position presents the Group's assets, liabilities, and equity as of June 30, 2025, showing a slight decrease in total assets compared to December 31, 2024, but an increase in both net current assets and net assets, reflecting an improved financial structure[9][10] Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 11,710 | 11,934 | -1.9% | | Current Assets | 182,404 | 190,525 | -4.2% | | Total Assets | 194,114 | 202,459 | -4.1% | | Current Liabilities | 51,155 | 91,763 | -44.3% | | Non-current Liabilities | 3,358 | 3,558 | -5.7% | | Net Assets | 139,601 | 107,138 | +30.3% | | Total Equity | 139,601 | 107,138 | +30.3% | Unaudited Condensed Consolidated Statement of Changes in Equity This statement details the Group's equity changes for the six months ended June 30, 2025, with total equity significantly increasing primarily due to share issuance and profit for the period - This unaudited condensed consolidated statement of changes in equity details the Group's equity changes for the six months ended June 30, 2025, with total equity significantly increasing primarily due to share issuance and profit for the period[12] Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | Balance at January 1, 2025 (RMB thousands) | Balance at June 30, 2025 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Share Capital | 10,059 | 12,180 | +2,121 | | Share Premium | 79,109 | 106,681 | +27,572 | | Retained Profits | (11,525) | (7,456) | +4,069 | | Total Equity | 107,138 | 139,601 | +32,463 | - In the first half of 2025, the Company raised RMB 29,693 thousand through share issuance[12] Unaudited Condensed Consolidated Statement of Cash Flows This statement reflects the Group's cash flows for the six months ended June 30, 2025, showing a net cash outflow from operating activities but significant inflows from investing and financing activities, leading to a substantial increase in cash and cash equivalents at period-end - This unaudited condensed consolidated statement of cash flows reflects the Group's cash flows for the six months ended June 30, 2025, showing a net cash outflow from operating activities but significant cash inflows from investing and financing activities, leading to a substantial increase in cash and cash equivalents at period-end[13] Condensed Consolidated Statement of Cash Flows Key Data | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (21,430) | 2,291 | | Net Cash Generated from Investing Activities | 12,623 | 16,850 | | Net Cash Generated from/(Used in) Financing Activities | 27,304 | (4,387) | | Net Increase in Cash and Cash Equivalents | 18,497 | 14,754 | | Cash and Cash Equivalents at End of Period | 74,766 | 72,039 | - Net cash flow from operating activities changed from a net inflow of RMB 2,291 thousand in the same period of 2024 to a net outflow of RMB 21,430 thousand in the first half of 2025[13] - Net cash flow from financing activities changed from a net outflow of RMB 4,387 thousand in the same period of 2024 to a net inflow of RMB 27,304 thousand in the first half of 2025, primarily due to share issuance[13] Notes to the Unaudited Condensed Consolidated Financial Statements This section provides detailed explanatory notes to the unaudited condensed consolidated financial statements, covering general information, accounting policies, risk management, segment information, and other financial disclosures 1. General Information This note introduces China Oral Industry Group Holdings Limited's registration, listing status, ultimate controlling party, registered office, principal place of business, main business scope, and functional and presentation currencies - The Company was incorporated in the Cayman Islands on November 3, 2015, and listed on GEM of the Hong Kong Stock Exchange on December 7, 2017[14][15] - The ultimate controlling party is Ms. Yan Ping, and the Group's principal businesses include manufacturing and sales of inflatable products, dental clinic services and sales of dental products, and sales of yarn and polyester fiber[16] - The Company's functional currency is HKD, but the condensed consolidated financial statements are presented in RMB due to its primary operations in China[16] 2. Basis of Presentation This note explains the basis of preparation for the unaudited condensed consolidated financial statements, adhering to HKFRS, Hong Kong Companies Ordinance, and GEM Listing Rules, with consistent accounting policies from the prior year, except for new standard amendments - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, the Hong Kong Companies Ordinance, and the GEM Listing Rules[17] - The amendment to Hong Kong Accounting Standard 21, "Lack of Exchangeability," was first applied in this period but had no significant impact on results or financial position[18] 3. Estimates This note clarifies that management makes estimates and assumptions in preparing financial statements, based on past experience and future expectations, which are continuously reviewed, and that significant judgments and estimation uncertainties remain consistent with the prior year - Management is required to make estimates and assumptions regarding the carrying amounts of assets and liabilities when preparing financial statements, and actual results may differ from these estimates[19] - The primary sources of significant judgments and estimation uncertainties are the same as those for the consolidated financial statements for the year ended December 31, 2024[19] 4. Financial Risk Management and Financial Instruments This note outlines the Group's financial risks, including interest rate, credit, and liquidity risks, noting no significant changes in risk management policies since the last year-end, and that the carrying amounts of receivables and payables approximate their fair values - The Group faces interest rate risk, credit risk, and liquidity risk[20] - There have been no significant changes in risk management policies and liquidity management policies since the end of 2024[21][22] - The carrying amounts of receivables and payables approximate their fair values[23] 4.1 Financial Risk Factors This sub-section identifies the Group's exposure to interest rate, credit, and liquidity risks, emphasizing no changes in risk management policies since the last year-end - The Group faces interest rate risk, credit risk, and liquidity risk[20] - There have been no changes in risk management policies since the year-end[21] 4.2 Liquidity Risk This sub-section describes the Group's liquidity and capital risk management policies and practices, which remain unchanged from the year ended December 31, 2024 - There have been no significant changes in the Group's liquidity and capital risk management policies and practices[22] 4.3 Fair Value Estimation This sub-section states that the carrying amounts of receivables and payables approximate their fair values and explains the fair value estimation methods for financial liabilities - The carrying amounts of receivables and payables approximate their fair values[23] 5. Segment Information This note segments the Group's business into inflatable products, dental clinics, and yarn and polyester based on internal reporting, providing analysis of revenue, results, assets, and liabilities for each segment, as well as geographical revenue data - The Group's businesses are divided into three segments: inflatable products business, dental clinic business, and yarn and polyester business[25] - All businesses are located in China and Hong Kong, and all non-current assets (excluding goodwill) are located in China[30] Segment Revenue and Results This sub-section details the revenue and results contributions of each operating segment (inflatable products, dental clinics, yarn and polyester) for the first half of 2025 and 2024, showing decreased inflatable product revenue but improved results, and significant growth in yarn and polyester revenue and results Segment Revenue and Results (RMB thousands) | Segment | H1 2025 Revenue | H1 2024 Revenue | Revenue Change (%) | H1 2025 Results | H1 2024 Results | Results Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Inflatable Products Business | 80,872 | 103,565 | -21.9% | 7,048 | (240) | N/A | | Dental Clinic Business | 7,202 | 7,092 | +1.55% | 1,499 | 1,602 | -6.5% | | Yarn and Polyester Business | 21,189 | 14,003 | +51.3% | 1,615 | 355 | +354.9% | | Total | 109,263 | 124,660 | -12.4% | 10,162 | 1,717 | +491.8% | Segment Assets and Liabilities This sub-section provides an analysis of the Group's segment assets and liabilities as of June 30, 2025, and December 31, 2024, indicating a reduction in both assets and liabilities for the inflatable products business, while dental clinic and yarn and polyester businesses remained relatively stable or saw slight changes Segment Assets and Liabilities (RMB thousands) | Segment | June 30, 2025 Assets | December 31, 2024 Assets | Asset Change (%) | June 30, 2025 Liabilities | December 31, 2024 Liabilities | Liability Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Inflatable Products Business | 50,281 | 69,701 | -27.9% | 21,164 | 53,222 | -60.2% | | Dental Clinic Business | 33,103 | 33,640 | -1.6% | 6,250 | 8,467 | -26.2% | | Yarn and Polyester Business | 28,008 | 31,578 | -11.3% | 6,505 | 10,203 | -36.2% | | Consolidated Assets | 194,114 | 202,459 | -4.1% | N/A | N/A | N/A | | Consolidated Liabilities | 54,513 | 95,321 | -42.8% | N/A | N/A | N/A | Geographical Information This sub-section states that all of the Group's operations are located in China and Hong Kong, and all non-current assets (excluding goodwill) are located in China, thus no geographical analysis is presented, but provides revenue data by geographical segment - All of the Group's businesses are located in China and Hong Kong, and all non-current assets (excluding goodwill) are located in China[30] Revenue by Geographical Segment (RMB thousands) | Region | H1 2025 Revenue | H1 2024 Revenue | Change (%) | | :--- | :--- | :--- | :--- | | China | 31,462 | 30,651 | +2.6% | | Europe | 5,688 | 5,637 | +0.9% | | North America | 45,837 | 78,594 | -41.7% | | Asia | 24,679 | 7,600 | +224.7% | | Total | 109,263 | 124,660 | -12.4% | 6. Revenue This note details the Group's revenue composition for the six months ended June 30, 2025, primarily from sales of inflatable products, dental clinic services, and sales of yarn and polyester, with total revenue decreasing by 12.4% year-on-year Revenue Composition (RMB thousands) | Revenue Source | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Sales of inflatable products and related accessories | 79,698 | 103,126 | -22.7% | | Subcontracting income | 1,174 | 439 | +167.4% | | Provision of dental clinic services | 7,202 | 7,092 | +1.55% | | Sales of yarn and polyester | 21,189 | 14,003 | +51.3% | | Total | 109,263 | 124,660 | -12.4% | 7. Other Income and Gains This note presents the Group's other income and gains for the six months ended June 30, 2025, with the total significantly increasing by 449.8%, primarily due to a net gain on disposal of assets and liabilities classified as held for sale Other Income and Gains (RMB thousands) | Item | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 272 | 263 | +3.4% | | Net exchange gain | – | 901 | -100% | | Grants and subsidies | 72 | 81 | -11.1% | | Net gain on disposal of assets and liabilities classified as held for sale | 6,551 | – | N/A | | Total | 6,895 | 1,254 | +449.8% | 8. Finance Costs This note explains the Group's finance costs for the six months ended June 30, 2025, with the total decreasing significantly by 87.1% year-on-year, mainly due to reduced interest on lease liabilities and bank borrowings Finance Costs (RMB thousands) | Item | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Interest on lease liabilities | 72 | 417 | -82.7% | | Interest on bank borrowings | – | 141 | -100% | | Total | 72 | 558 | -87.1% | 9. Income Tax Expense This note presents the Group's income tax expense for the six months ended June 30, 2025, with the total significantly increasing by 741.7% year-on-year, primarily due to higher Hong Kong profits tax and PRC enterprise income tax Income Tax Expense (RMB thousands) | Item | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong profits tax | 600 | 211 | +184.4% | | PRC enterprise income tax | 1,681 | 60 | +2701.7% | | Total | 2,281 | 271 | +741.7% | - Hong Kong profits tax operates under a two-tiered system, with the first HKD 2 million of assessable profits taxed at 8.25% and the remainder at 16.5%[36] - PRC subsidiaries are subject to enterprise income tax at a rate of 25%, unless preferential tax rates apply[37] 10. Profit for the Period This note lists the expenses deducted in calculating the profit for the period, including cost of inventories, depreciation, amortization, exchange losses, and employee benefit expenses Profit for the Period Deductions (RMB thousands) | Item | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories recognized as expense | 88,231 | 101,256 | -12.8% | | Depreciation of property, plant and equipment | 218 | 344 | -36.7% | | Depreciation of right-of-use assets | 621 | 541 | +14.8% | | Total employee benefit expenses | 24,194 | 26,096 | -7.3% | 11. Earnings Per Share This note explains the calculation of basic and diluted earnings per share attributable to owners of the Company, showing basic earnings per share of RMB 0.30 cents for the first half of 2025, a significant increase from the same period in 2024 Earnings Per Share Data | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company used in calculating basic earnings per share (RMB thousands) | 4,069 | 880 | +362.4% | | Weighted average number of ordinary shares used in calculating basic earnings per share (thousands) | 1,339,028 | 1,112,308 | +20.4% | | Basic Earnings Per Share (RMB cents) | 0.30 | 0.08 | +275.0% | | Diluted Earnings Per Share (RMB cents) | 0.30 | 0.08 | +275.0% | 12. Dividends This note states that the Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[41] 13. Property, Plant and Equipment This note provides details of the Group's property, plant and equipment cost, accumulated depreciation, and carrying amounts, showing a total carrying amount of RMB 1,583 thousand as of June 30, 2025, a slight decrease from the end of 2024 Property, Plant and Equipment Carrying Amounts (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Leasehold improvements | 140 | 224 | -37.5% | | Plant and machinery | 38 | 40 | -5.0% | | Medical equipment | 1,364 | 1,458 | -6.5% | | Motor vehicles | 12 | 12 | 0.0% | | Furniture and fixtures | 29 | 53 | -45.3% | | Total | 1,583 | 1,787 | -11.4% | 14. Intangible Assets This note states that the Group paid approximately RMB 35,000 for the acquisition of intangible assets during the period - The Group paid approximately RMB 35,000 for the acquisition of intangible assets during the period (2024: nil)[43] 15. Trade Receivables This note details the Group's trade receivables and their ageing analysis as of June 30, 2025, with the total significantly increasing year-on-year, primarily from the inflatable products business and yarn and polyester business Trade Receivables Composition (RMB thousands) | Business | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Inflatable Products Business | 27,850 | 15,235 | +82.8% | | Dental Clinic Business | 10,436 | 13,937 | -25.2% | | Yarn and Polyester Business | 11,844 | 6,641 | +78.3% | | Provision for credit losses | (2,034) | (2,038) | -0.2% | | Total | 48,096 | 33,775 | +42.4% | - The credit period granted to customers ranges from 0 to 270 days, and no interest is charged on overdue receivables[44] Ageing Analysis of Trade Receivables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | 0–30 days | 8,217 | 20,537 | -60.0% | | 31–60 days | 15,497 | 3,932 | +294.1% | | 61–90 days | 11,366 | 1,821 | +524.2% | | 91–120 days | 5,808 | 4,080 | +42.3% | | 121–365 days | 7,208 | 3,405 | +111.7% | | Total | 48,096 | 33,775 | +42.4% | 16. Trade and Other Payables This note lists the Group's trade and other payables and their ageing analysis as of June 30, 2025, with the total significantly decreasing year-on-year, primarily due to reductions in trade payables, accrued salaries and other benefits, and other payables Trade and Other Payables Composition (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 10,232 | 16,090 | -36.4% | | Accrued salaries and other benefits | 9,600 | 10,890 | -11.8% | | Other payables and accrued charges | 12,426 | 17,072 | -27.2% | | Total | 32,258 | 48,415 | -33.4% | Ageing Analysis of Trade Payables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | 0–30 days | 4,365 | 9,145 | -52.3% | | 31–60 days | 1,696 | 3,682 | -53.9% | | 61–90 days | 1,366 | 1,693 | -19.3% | | 91–120 days | 2,104 | 881 | +138.8% | | 121–365 days | 655 | 454 | +44.3% | | Over 365 days | 46 | 235 | -80.5% | | Total | 10,232 | 16,090 | -36.4% | 17. Share Capital This note provides details of the Company's authorized and issued ordinary share capital, showing an increase in issued share capital as of June 30, 2025, due to the issuance of new shares Share Capital Details | Item | June 30, 2025 (thousands of shares) | December 31, 2024 (thousands of shares) | Change (thousands of shares) | | :--- | :--- | :--- | :--- | | Number of authorized ordinary shares | 2,000,000 | 2,000,000 | 0 | | Number of issued and fully paid ordinary shares | 1,368,000 | 1,140,000 | +228,000 | | Equivalent to RMB (thousands) | 12,180 | 10,059 | +2,121 | - On January 24, 2025, the Company issued 228,000,000 ordinary shares to subscribers at an issue price of HKD 0.14 per share, raising net proceeds of approximately HKD 31,720,000[47] Management Discussion and Analysis This section provides a comprehensive review and analysis of the Group's business operations, financial performance, liquidity, capital structure, and future outlook Business Review and Outlook This sub-section reviews the Group's 20-year experience in inflatable products and highlights its diversification strategy since 2023 into dental clinic services and yarn and polyester sales through acquisitions - The Group has 20 years of experience in designing, manufacturing, and selling inflatable amusement parks and other inflatable products[49] - In January 2023, the Group acquired Hong Kong Shengke Holdings Limited, expanding into dental clinic services and sales of dental products[50] - In January 2024, the Group acquired Hong Kong Taixing Holdings Limited, expanding into sales of yarn and polyester[50] Financial Review This sub-section provides a detailed analysis of the Group's financial performance for the six months ended June 30, 2025, covering changes in revenue, cost of sales, gross profit, other income and gains, various expenses, finance costs, and profit for the period, noting no interim dividend recommendation - Total revenue decreased by 12.4% to RMB 109,263 thousand[51] - Revenue from sales of yarn and polyester fiber increased by 51.3%, dental clinic services revenue increased by 1.55%, while inflatable products sales revenue decreased by 21.9%[51] - Profit for the period significantly increased by 362.4% to RMB 4,069 thousand[58] Revenue This sub-section analyzes the Group's revenue performance across its business segments, with total revenue decreasing by 12.4% year-on-year, primarily due to a significant reduction in inflatable products revenue, offset by substantial growth in yarn and polyester business revenue Revenue Composition and Change (RMB thousands) | Business | H1 2025 Revenue | H1 2024 Revenue | Change (%) | | :--- | :--- | :--- | :--- | | Sales of inflatable products and related accessories | 80,872 | 103,565 | -21.9% | | Provision of dental clinic services | 7,202 | 7,092 | +1.55% | | Sales of yarn and polyester fiber | 21,189 | 14,003 | +51.3% | | Total Revenue | 109,263 | 124,660 | -12.4% | Cost of Sales This sub-section states that the cost of sales for the period was approximately RMB 90,141 thousand, a decrease of approximately 11.0% compared to the same period in 2024 Cost of Sales (RMB thousands) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 90,141 | 101,256 | -11.0% | Gross Profit and Gross Profit Margin This sub-section analyzes the Group's gross profit and gross profit margin, with total gross profit decreasing by 18.3% year-on-year and the overall gross profit margin declining by 1.3 percentage points to 17.5%, mainly due to slight decreases in inflatable products and dental clinic business gross profit margins, but a significant increase in yarn and polyester business gross profit margin Gross Profit and Gross Profit Margin (RMB thousands) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 19,122 | 23,404 | -18.3% | | Overall Gross Profit Margin | 17.5% | 18.8% | -1.3 percentage points | | Inflatable Products Business Gross Profit Margin | 17.1% | 18.9% | -1.8 percentage points | | Dental Clinic Business Gross Profit Margin | 42.0% | 43.1% | -1.1 percentage points | | Yarn and Polyester Sales Business Gross Profit Margin | 10.8% | 5.83% | +4.97 percentage points | Other Income and Gains This sub-section states that total other income and gains for the period significantly increased by 449.8%, primarily due to a net gain on disposal of assets and liabilities classified as held for sale of approximately RMB 6,551 thousand Other Income and Gains (RMB thousands) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Other Income and Gains | 6,895 | 1,254 | +449.8% | | Net gain on disposal of assets and liabilities classified as held for sale | 6,551 | – | N/A | Distribution and Selling Expenses This sub-section states that total distribution and selling expenses for the period were approximately RMB 7,516 thousand, a decrease of approximately 39.8% compared to the same period in 2024 Distribution and Selling Expenses (RMB thousands) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Distribution and Selling Expenses | 7,516 | 12,483 | -39.8% | Administrative Expenses This sub-section states that administrative expenses for the period were approximately RMB 12,079 thousand, an increase of approximately 15.4% compared to the same period in 2024 Administrative Expenses (RMB thousands) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 12,079 | 10,466 | +15.4% | Finance Costs This sub-section states that finance costs for the period were approximately RMB 72 thousand, a significant decrease of 87.1% compared to the same period in 2024, primarily due to reduced interest on lease liabilities and bank borrowings Finance Costs (RMB thousands) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 72 | 558 | -87.1% | | Decrease in interest on lease liabilities | 345 | N/A | N/A | | Decrease in interest on bank borrowings | 141 | N/A | N/A | Profit for the Period This sub-section states that the profit for the period was approximately RMB 4,069 thousand, a significant increase of 362.4% compared to the same period in 2024 Profit for the Period (RMB thousands) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 4,069 | 880 | +362.4% | Dividends This sub-section states that the Board of Directors does not recommend the payment of any interim dividend for the period, consistent with the same period in 2024 - The Board of Directors does not recommend the payment of any interim dividend for the period (2024: nil)[59] Liquidity, Financial Resources, Capital Structure and Gearing Ratio This sub-section analyzes the Group's liquidity position, showing an increase in total equity attributable to owners of the Company, improved current and quick ratios, and a low gearing ratio as of June 30, 2025, indicating a sound financial position Liquidity and Capital Structure Indicators | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the Company (RMB thousands) | 139,259 | 107,138 | +30.0% | | Current Ratio | 3.57 | 2.08 | +71.6% | | Quick Ratio | 2.08 | 1.43 | +45.5% | | Bank Borrowings (RMB thousands) | 676 | 676 | 0.0% | | Gearing Ratio | 0.5% | 0.6% | -0.1 percentage points | - The Directors believe the Group's financial position is sound, enabling it to expand its core businesses and achieve its business objectives[60] Material Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Future Plans for Material Investments or Capital Assets This sub-section states that the Group had no other material investments, acquisitions, or disposals of subsidiaries or associates during the period - During the period, the Group had no other material investments, material acquisitions, or disposals of subsidiaries or associates[61] Contingent Liabilities This sub-section states that the Group had no material contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Group had no material contingent liabilities (December 31, 2024: nil)[62] Pledge of Assets This sub-section states that the Group had no assets pledged for bank borrowings or other purposes as of June 30, 2025 - As of June 30, 2025, the Group had no assets pledged for bank borrowings or other purposes (December 31, 2024: nil)[63] Commitments This sub-section states that the Company had no contractual commitments for the acquisition of property, plant and equipment as of June 30, 2025 - As of June 30, 2025, the Company had no contractual commitments for the acquisition of property, plant and equipment (December 31, 2024: nil)[64] Events After Reporting Period This sub-section discloses a significant post-reporting period event: the Company's proposal to create additional shares to increase authorized share capital, terminate the old share option scheme, and adopt a new one, with an Extraordinary General Meeting scheduled for August 29, 2025 - On August 8, 2025, the Company proposed to create 3,000,000,000 new shares, increasing the authorized share capital from HKD 20 million to HKD 50 million[65] - The Company plans to terminate the 2017 Share Option Scheme and adopt a new share option scheme[65] - An Extraordinary General Meeting is scheduled for August 29, 2025, to consider these matters[65] Foreign Exchange Risk This sub-section discusses the Group's foreign exchange risk, primarily due to most revenue being denominated in USD and costs in RMB, where fluctuations between RMB and USD exchange rates could significantly impact results, with limited hedging capabilities due to RMB's non-convertibility - The Group's majority of revenue is denominated in USD, while product costs are denominated in RMB, and fluctuations in the RMB to USD exchange rate could have a significant impact[66] - The Group currently has no formal foreign exchange hedging policy, and its ability to mitigate foreign exchange risk is limited due to the non-convertibility of RMB[66] Treasury Policy This sub-section outlines the Group's treasury policy, focusing on credit risk management by transacting only with customers with good credit records and reputable banks to mitigate risks associated with trade receivables and bank deposits - The Group's credit risk primarily arises from trade receivables and bank deposits[67] - A policy of transacting only with customers with good collection track records and banks with good credit ratings has been adopted[67] - No bad debt provisions were recognized for the six months ended June 30, 2025, and 2024[67] Employees and Remuneration Policy This sub-section provides the Group's employee numbers and remuneration policy, with 551 full-time employees as of June 30, 2025, a year-on-year decrease in total employee remuneration, and details the benefits provided Employees and Remuneration Data | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of full-time employees | 551 | 544 | +7 | | Total employee remuneration (RMB thousands) | 24,194 | 26,096 | -7.3% | - The Group provides employees with discretionary bonuses, social insurance, housing provident fund, and MPF contributions, and may grant share options[68] Use of Proceeds from Share Subscription This sub-section explains that the Company completed a share subscription on January 24, 2025, raising net proceeds of approximately HKD 31.72 million, of which HKD 11.72 million has been used for general working capital, and HKD 20 million is unutilized and planned for identifying potential acquisition or investment opportunities - On January 24, 2025, the Company completed a share subscription, raising net proceeds of approximately HKD 31,720,000[69] Use of Proceeds (HKD millions) | Planned Use | Planned Amount | Utilized | Unutilized | | :--- | :--- | :--- | :--- | | Identifying potential acquisition or investment opportunities | 20 | – | 20 | | General working capital | 11.72 | 11.72 | – | | Total | 31.72 | 11.72 | 20 | Corporate Governance and Other Information This section covers corporate governance practices, directors' and shareholders' interests, share option schemes, potential conflicts of interest, and compliance with listing rules Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations This sub-section discloses the long positions of directors and chief executives in the Company's ordinary shares as of June 30, 2025, with Ms. Yan Ping holding 31.04% equity through a controlled corporation Directors'/Chief Executive's Long Positions in Ordinary Shares of the Company | Name of Director/Chief Executive | Capacity/Nature of Interest | Number of Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Ms. Yan Ping | Person with interest in controlled corporation | 424,560,000 | 31.04% | - Save for Ms. Yan Ping, no other directors or chief executives had any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or any associated corporation[72] Substantial and Other Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company This sub-section states that as of June 30, 2025, no other persons or corporations, apart from the Company's directors or chief executives, held disclosable interests or short positions of 5% or more in the Company's shares and underlying shares under the Securities and Futures Ordinance - As of June 30, 2025, save for the directors or chief executives of the Company, no other persons or corporations held disclosable interests or short positions of 5% or more in the Company's shares and underlying shares under the Securities and Futures Ordinance[73] Share Option Scheme This sub-section introduces the Company's 2017 Share Option Scheme, designed to reward and retain talent, and discloses details of 80,000,000 share options granted on June 6, 2025, including their exercise price and vesting period - The Company adopted a Share Option Scheme on November 15, 2017, to reward and retain eligible participants[74] - On June 6, 2025, a total of 80,000,000 share options were granted to eleven grantees, with an exercise price of HKD 0.095 per share[74] - The share options are exercisable from June 6, 2026, to June 5, 2035, and will vest on June 6, 2026[74] Competition and Conflicts of Interest This sub-section declares that during the period, no directors, controlling shareholders, or substantial shareholders of the Company, or their respective close associates, engaged in any business that competes or may compete with the Group's business, nor were there any other conflicts of interest - During the period, no directors, controlling shareholders, or substantial shareholders of the Company, or their respective close associates, engaged in any business that competes or may compete with the Group's business[75] - There were no other conflicts of interest with the Group[75] Directors' Securities Transactions This sub-section confirms that the Company has adopted a code of conduct for directors' securities dealings and, upon enquiry, all directors have confirmed compliance with the relevant standards and code during the period - The Company has adopted a code of conduct for directors' securities dealings, and all directors have confirmed compliance with the required standard of dealings during the period[77] Purchase, Sale or Redemption of the Company's Securities This sub-section states that neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities during the period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities[78] Corporate Governance Code This sub-section states that the Company has applied the principles and complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules during the period - The Company has applied and complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules[79] Changes in Directors' Information This sub-section discloses changes in directors' information, specifically the removal of Ms. Shen Jindan as an independent non-executive director of the Company, effective June 6, 2025 - Ms. Shen Jindan was removed as an independent non-executive director of the Company, effective June 6, 2025[80] Audit Committee This sub-section describes the Audit Committee's composition, terms of reference, and primary responsibilities, confirming that the committee has reviewed the unaudited condensed financial results for the period and found them to be in compliance with accounting standards, GEM Listing Rules, and adequately disclosed - The Audit Committee was established on June 20, 2017, comprising all three independent non-executive directors, with Ms. Lian Jingyu as Chairperson[81] - Its primary responsibilities include reviewing and overseeing the Group's financial reporting process and internal control procedures[81] - The Audit Committee has reviewed the unaudited condensed financial results for the period and found them to comply with applicable accounting standards, GEM Listing Rules, and to be adequately disclosed[81]