久久王(01927) - 2025 - 中期业绩

Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, Jiujiuwang Food International Limited's profit significantly decreased, primarily due to the combined impact of reduced gross profit, lower selling and administrative expenses, and changes in net other income Profit or Loss Summary | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 162,533 | 181,556 | | Cost of sales | (124,591) | (127,397) | | Gross profit | 37,942 | 54,159 | | Other income, gains or (losses), net | 2,228 | (2,340) | | Selling expenses | (12,316) | (15,186) | | Administrative expenses | (16,522) | (18,345) | | Finance costs | (6,354) | (6,984) | | Profit before tax | 4,978 | 11,304 | | Tax | (897) | (3,482) | | Profit for the period | 4,081 | 7,822 | | Profit for the period attributable to owners of the Company | 4,081 | 7,822 | | Earnings per share attributable to owners of the Company (RMB cents) | 0.5 | 1.0 | - Profit for the period decreased by 47.95% year-on-year, from RMB 7.8 million in 2024 to RMB 4.1 million in 2025[4][6] - Basic and diluted earnings per share decreased from RMB 1.0 cent in 2024 to RMB 0.5 cent in 2025[6] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's net current assets, total assets less current liabilities, and total equity all increased, reflecting a robust financial position Financial Position Summary | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 334,480 | 348,426 | | Current assets | 328,645 | 381,020 | | Liabilities | | | | Current liabilities | 65,299 | 199,548 | | Non-current liabilities | 196,509 | 133,060 | | Equity | | | | Total equity | 401,317 | 396,838 | | Net current assets | 263,346 | 181,472 | | Total assets less current liabilities | 597,826 | 529,898 | - Net current assets increased by 45.1% from RMB 181,472 thousand as of December 31, 2024, to RMB 263,346 thousand as of June 30, 2025[7] - Current liabilities significantly decreased by 67.2% from RMB 199,548 thousand as of December 31, 2024, to RMB 65,299 thousand as of June 30, 2025[7] Notes to the Condensed Consolidated Financial Statements 1. Basis of Preparation The interim financial statements are prepared in accordance with Appendix 16 of the HKEX Listing Rules and HKAS 34, presented in RMB thousands, with accounting policies consistent with the 2024 annual financial statements, except for changes noted in Note 2 - The interim financial statements are prepared in accordance with Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[8] - The statements are presented in RMB thousands and adopt the same accounting policies as the 2024 annual financial statements, with expected changes to be reflected in the 2025 annual financial statements[8][9] 2. Application of Revised Hong Kong Financial Reporting Standards This interim period saw the first-time application of revised HKFRSs issued by the HKICPA, including HKAS 21 (Amendment) "Lack of Exchangeability", which had no material impact on the Group's financial position or performance - This interim period saw the first-time application of revised Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, including HKAS 21 (Amendment) "Lack of Exchangeability"[10] - The application of these new standards had no material impact on the Group's financial position or performance[10] 3. Operating Segments The Group primarily operates a single segment, the sale of confectionery products, with all operations and non-current assets located in China, and despite a decline in total revenue, revenue from Asia excluding China increased - The Group currently operates a single operating segment, revenue from the sale of confectionery products, and therefore has no separately reportable segments[11] - The Group's operations and non-current assets are all located in China[12] Revenue by Geographical Region | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | China | 148,058 | 160,805 | | Asia (excluding China) | 6,622 | 6,310 | | Europe | 5,289 | 10,609 | | Others | 2,564 | 3,832 | | Total | 162,533 | 181,556 | - Revenue from a single major customer A increased by 26.4% to RMB 42,984 thousand in the first half of 2025, with its proportion of total sales rising from 16.1% to 26.4%[15] 4. Revenue The Group's total revenue decreased by 10.5% year-on-year, primarily due to reduced sales of own-brand products, which was not offset by increased OEM product sales Revenue by Product Type | Product Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | OEM products | 65,232 | 57,318 | | Own-brand products - KUSA | 89,477 | 109,662 | | Own-brand products - LABULA | 6,325 | 11,837 | | Own-brand products - JIUJIUWANG | 1,499 | 2,739 | | Total Revenue | 162,533 | 181,556 | - Total revenue decreased by 10.5% from RMB 181,556 thousand in 2024 to RMB 162,533 thousand in 2025[16] - OEM product revenue increased by 13.8% year-on-year, while own-brand product (KUSA, LABULA, JIUJIUWANG) revenues all decreased[16] 5. Other Income, Gains or (Losses), Net Net other income, gains or (losses) for the period shifted from a net loss in 2024 to a net gain in 2025, mainly driven by reduced losses from sale and leaseback transactions and a reversal of expected credit losses on trade receivables Other Income, Gains or (Losses), Net | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 126 | 123 | | Exchange gains | 102 | 443 | | Rental income | 414 | 63 | | Government grants | 232 | 86 | | Reversal of expected credit losses on trade receivables | 1,354 | – | | Loss from sale and leaseback transactions | – | (3,055) | | Total | 2,228 | (2,340) | - Net other income, gains or (losses) shifted from RMB (2,340) thousand in 2024 to RMB 2,228 thousand in 2025, primarily due to reduced losses from sale and leaseback transactions and a reversal of expected credit losses on trade receivables[17] 6. Finance Costs The Group's finance costs remained relatively stable during the reporting period, showing a slight decrease, primarily comprising interest expenses on bank borrowings and lease liabilities Finance Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on bank borrowings | 5,134 | 5,763 | | Interest expense on lease liabilities | 1,220 | 1,221 | | Total | 6,354 | 6,984 | - Finance costs decreased by 9.02% from RMB 6,984 thousand in 2024 to RMB 6,354 thousand in 2025[18] 7. Profit Before Tax Profit before tax significantly decreased, primarily due to the combined impact of inventory costs, depreciation of property, plant and equipment, depreciation of right-of-use assets, and employee benefit expenses Profit Before Tax Components | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Inventory costs recognized as expenses | 117,779 | 126,170 | | Depreciation of property, plant and equipment | 10,443 | 8,524 | | Depreciation of right-of-use assets | 3,501 | 1,334 | | Employee benefit expenses (including directors' emoluments) | 12,510 | 18,557 | - Profit before tax decreased by 55.96% from RMB 11,304 thousand in 2024 to RMB 4,978 thousand in 2025[4] 8. Tax The Group's tax expense significantly decreased, mainly due to lower taxable profit, with Chinese subsidiaries subject to a 25% corporate income tax rate and no provision for taxable profit in Hong Kong Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | China corporate income tax | 897 | 3,482 | - Tax expense decreased by 74.2% from RMB 3,482 thousand in 2024 to RMB 897 thousand in 2025[21] - Chinese subsidiaries are subject to a corporate income tax rate of 25%, while no provision for profits tax was made in Hong Kong due to no estimated taxable profit[21][22] 9. Dividends The Board of Directors decided not to declare any dividends 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 dividend for the six months ended June 30, 2025 (2024: nil)[24] 10. Earnings Per Share Attributable to Owners of the Company Both basic and diluted earnings per share attributable to owners of the Company were RMB 0.5 cent, a decrease from the prior year, with basic and diluted earnings being identical due to the absence of potential dilutive ordinary shares Earnings Per Share Calculation Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit | 4,081 | 7,822 | | Weighted average number of ordinary shares (thousand shares) | 792,000 | 792,000 | | Basic and diluted earnings per share (RMB cents) | 0.5 | 1.0 | - Diluted earnings per share are the same as basic earnings per share due to the absence of potential dilutive ordinary shares[27] 11. Property, Plant and Equipment As of June 30, 2025, the Group's property, plant and equipment carrying value slightly decreased, with some assets pledged as collateral for bank credit facilities, and no new acquisitions during the period - As of June 30, 2025, buildings and plant and machinery with a carrying value of approximately RMB 137,653 thousand were pledged as collateral for the Group's bank credit facilities (December 31, 2024: RMB 143,905 thousand)[28] - For the six months ended June 30, 2025, the Group did not incur any payments for the acquisition of property, plant and equipment (2024: RMB 389 thousand)[28] 12. Trade Receivables The Group's trade receivables significantly increased, primarily concentrated within 30 days, while the provision for expected credit losses decreased, reflecting changes in accounts receivable management and collection Trade Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 116,534 | 77,440 | | Less: Provision for expected credit losses | (8,854) | (10,208) | | Net | 107,680 | 67,232 | - Net trade receivables increased by 60.17% from RMB 67,232 thousand as of December 31, 2024, to RMB 107,680 thousand as of June 30, 2025[29] Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 47,721 | 10,443 | | 31 to 60 days | 15,577 | 11,882 | | 61 to 90 days | 14,830 | 8,048 | | 91 to 180 days | 17,103 | 31,552 | | 181 to 365 days | 12,449 | 5,307 | | Total | 107,680 | 67,232 | - The net provision for expected credit losses saw a reversal of RMB 1,354 thousand in the first half of 2025, reducing the year-end provision balance to RMB 8,854 thousand[31] 13. Prepayments and Other Receivables Total prepayments and other receivables significantly decreased, primarily due to a substantial reduction in prepayments for raw material purchases Prepayments and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Prepayments | 60,681 | 122,641 | | Other receivables | 4,674 | 5,327 | | Total | 65,355 | 127,968 | - Total prepayments decreased by 50.5% from RMB 122,641 thousand as of December 31, 2024, to RMB 60,681 thousand as of June 30, 2025[32] 14. Trade and Other Payables Total trade and other payables significantly decreased, primarily due to a substantial reduction in amounts payable to a director Trade and Other Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total trade payables | 1,511 | 3,637 | | Accrued expenses and other payables | 6,868 | 3,984 | | Amount due to a director | 4,865 | 40,866 | | Total | 13,244 | 48,487 | - Total trade and other payables decreased by 72.7% from RMB 48,487 thousand as of December 31, 2024, to RMB 13,244 thousand as of June 30, 2025[34] - Amount due to a director significantly decreased from RMB 40,866 thousand to RMB 4,865 thousand[34] 15. Share Capital The Company's share capital structure remained stable during the reporting period, with no changes in authorized share capital or issued and fully paid share capital Share Capital Structure | Item | June 30, 2025 (thousand shares/thousand USD) | December 31, 2024 (thousand shares/thousand USD) | | :--- | :--- | :--- | | Authorized share capital (number of shares) | 2,000,000 | 2,000,000 | | Authorized share capital (USD) | 200 | 200 | | Issued and fully paid share capital (number of shares) | 792,000 | 792,000 | | Issued and fully paid share capital (USD) | 80 | 80 | | Presented in condensed consolidated statement of financial position (RMB thousands) | 532 | 532 | - As of June 30, 2025, the Company's share capital structure showed no significant changes, with 792,000 thousand issued shares, amounting to RMB 532 thousand[35] 16. Pledged Assets A portion of the Group's assets, including buildings, plant and machinery, and right-of-use assets, has been pledged to banks as collateral for borrowings, with the total pledged value slightly decreasing Carrying Value of Pledged Assets | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Buildings | 102,594 | 104,773 | | Plant and machinery | 35,059 | 39,132 | | Right-of-use assets | 20,802 | 21,094 | | Total | 158,455 | 164,999 | - The total carrying value of pledged assets decreased from RMB 164,999 thousand as of December 31, 2024, to RMB 158,455 thousand as of June 30, 2025[37] 17. Significant Related Party Transactions Key management personnel remuneration slightly increased, while the amount payable to a director significantly decreased, with this amount being unsecured, interest-free, and repayable on demand Key Management Personnel Remuneration | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 1,290 | 1,260 | | Retirement scheme contributions | 85 | 38 | | Total | 1,375 | 1,298 | - The amount due to a director (Mr Zheng Zhenzhong) decreased from RMB 40,866 thousand as of December 31, 2024, to RMB 4,865 thousand as of June 30, 2025[38] - The amount due to a director is unsecured, interest-free, and repayable on demand[38] Management Discussion and Analysis Business Review and Outlook Jiujiuwang Food International Limited, a Chinese confectionery manufacturer, primarily produces and sells gum-based candies, pressed candies, aerated candies, and hard candies, with profit declining in the reporting period due to reduced gross profit, lower selling and administrative expenses, and changes in net other income - The Group is a confectionery manufacturer in China, producing and selling gum-based candies, pressed candies, aerated candies, and hard candies[39] - Group profit decreased from RMB 7.8 million in 2024 to RMB 4.1 million in 2025, primarily due to the net effect of reduced gross profit (lower own-brand product sales), changes in net other income, decreased selling expenses, and decreased administrative expenses[40] Financial Review The Group experienced a decline in both revenue and gross profit during the reporting period, mainly due to reduced sales of own-brand products, indicating overall profitability pressure despite controlled selling and administrative expenses - Revenue decreased by 10.5% year-on-year to RMB 162.5 million, primarily due to reduced sales of own-brand products[41] - Gross profit decreased by 30.1% year-on-year to RMB 37.9 million, with gross profit margin declining from 29.8% to 23.3%, mainly due to lower sales volume of own-brand products (which typically have higher gross margins than OEM products)[43] - Net other income and gains shifted from a net loss of RMB 2.3 million in 2024 to a net gain of RMB 2.2 million in 2025, primarily due to reduced losses from sale and leaseback transactions[44] - Selling expenses decreased by 19.1% to RMB 12.3 million, mainly due to reduced marketing and promotion expenses[45] - Administrative expenses decreased by 11.5% to RMB 16.2 million, primarily due to reduced travel expenses[46] - Income tax expense decreased to RMB 0.9 million, mainly due to lower taxable profit[47] - Finance costs remained stable at approximately RMB 6.7 million[48] - Profit for the period was RMB 4.1 million, a decrease from RMB 7.8 million in the same period last year[49] Principal Risks and Uncertainties The Group faces several key risks, including reliance on a few OEM customers, performance of third-party distributors, lack of long-term contracts, raw material price volatility, pandemic impacts, and risks of foodborne illness and product liability claims - A significant portion of revenue is derived from a few major OEM customers, posing customer concentration risk[50] - Reliance on third-party distributors for own-brand product sales means termination or non-renewal of distribution agreements could lead to a substantial decrease in sales[50] - The Group generally does not enter into long-term contracts or contracts specifying minimum purchase amounts with customers[50] - Fluctuations in raw material prices, availability, and quality could lead to production delays and increased cost of sales[54] - The business is susceptible to foodborne illness claims and product liability claims, posing potential reputational risks[54] Future Plans for Material Investments and Capital Assets As of June 30, 2025, the Group had no other material investment and capital asset plans - As of June 30, 2025, the Group had no other material investment and capital asset plans[51] Liquidity and Financial Resources The Group's capital structure remained stable, with a decrease in cash and cash equivalents, but a significant reduction in the gearing ratio due to decreased bank borrowings and lease liabilities, indicating improved financial leverage. The Group continuously monitors credit risk and faces no significant foreign exchange risk - The Company's capital structure showed no significant changes during the reporting period[52] - Cash and cash equivalents decreased by approximately 8.7% to RMB 21.3 million, primarily due to repayment of bank borrowings[53] - Total borrowings decreased to RMB 225.8 million (December 31, 2024: RMB 255.2 million)[54] - The gearing ratio decreased to approximately 60.8% (December 31, 2024: approximately 70.2%), mainly due to reduced bank borrowings and lease liabilities[57] - Pledged assets include right-of-use assets, buildings, and plant and machinery, with a total carrying value of RMB 158,455 thousand[56] - The Board of Directors does not recommend the declaration of dividends[58] - The Group has no material capital commitments, material acquisitions or disposals of subsidiaries, material investments, or contingent liabilities[60][61][62][63] - The Group does not face significant exchange rate fluctuation risks and holds no foreign exchange contracts or other financial derivative instruments[64] - Credit risk primarily arises from trade receivables, other receivables, and cash and cash equivalents, managed through credit limits, monitoring procedures, and expected credit loss models[65][66][67][68] Employees and Remuneration Policies The Group's employee count slightly decreased, with remuneration policies based on market terms, individual performance, qualifications, and experience. The Group prioritizes employee training and maintains good working relationships - As of June 30, 2025, the Group had 385 employees (December 31, 2024: 386 employees)[70] - Employee remuneration is determined with reference to market terms and based on individual performance, qualifications, and experience; directors' remuneration is reviewed and determined by the Remuneration Committee[70] - The Group has adopted a share option scheme to incentivize employees, directors, and other participants[70] - The Group provides various training to employees, including internal professional development seminars and safety training programs[71] Litigation As of June 30, 2025, the Group was not involved in any material litigation or arbitration - As of June 30, 2025, the Group was not involved in any material litigation or arbitration, nor were there any outstanding or threatened material litigations or claims[72] Prospects The Group aims to achieve sustainable growth and strengthen its position as a Chinese confectionery manufacturer through capacity expansion, production line machinery replacement, enhanced e-commerce marketing and distribution networks, and continuous product development - The business objective is to achieve sustainable growth and consolidate its position as a confectionery manufacturer in China[73] - Planned strategies include: (i) capacity expansion; (ii) replacement of existing production line machinery; (iii) strengthening marketing and increasing sales through e-commerce channels, expanding the distribution network; and (iv) expanding and enhancing product offerings through continuous product development[73] - Emphasis will be placed on procuring and introducing new production lines, acquiring new equipment and machinery to replace existing ones, and striving to enhance product quality to meet consumer preferences[74] - Marketing companies will be engaged to promote brands, consolidate market position, enhance brand awareness, and increase sales and improve the distribution network through e-commerce channels[75] Corporate Governance and Other Information Corporate Governance Practices The Company is committed to maintaining high corporate governance standards and complies with the Corporate Governance Code in Appendix 14 of the Listing Rules, with the exception of the Chairman and Chief Executive Officer being the same person, which deviates from Code Provision A.2.1 - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules during the period[77] - Mr Zheng Zhenzhong serves as both Chairman and Chief Executive Officer, deviating from Code Provision A.2.1 of the Corporate Governance Code, but the Board believes this arrangement is in the Group's best interest and has sufficient safeguards to ensure a balance of power[78] Directors' Securities Transactions The Company has adopted a code of conduct for directors' securities transactions no less exacting than that set out in Appendix 10 of the Listing Rules, and all directors confirmed compliance during the reporting period - The Company has adopted a code of conduct regarding directors' securities transactions, with terms no less exacting than the required standard of dealings set out in Appendix 10 of the Listing Rules[79] - All directors have confirmed compliance with the required standard of dealings and the Company's code of conduct throughout the review period[79] Disclosure of Directors' Information Pursuant to Rule 13.51B(1) of the Listing Rules For the six months ended June 30, 2025, no changes in directors' information required disclosure under Rule 13.51B(1) of the Listing Rules - For the six months ended June 30, 2025, no changes in directors' information required disclosure under Rule 13.51B(1) of the Listing Rules[80] Competing Business The directors are unaware of any business or interest owned by any director, controlling shareholder, or their close associates that competes or may compete with the Group's business during the reporting period - The directors are unaware of any business or interest owned by any director, controlling shareholder, or their respective close associates that competes or may compete with the Group's business during the reporting period[81] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company As of June 30, 2025, Mr Zheng Guosi and Mr Zheng Zhenzhong each held a 72.75% equity interest in the Company's ordinary shares, primarily through controlled corporations and parties acting in concert. They also held 100% beneficial ownership in associated corporations Directors' and Chief Executive's Interests in the Company's Shares | Director Name | Capacity | Number of Ordinary Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr Zheng Guosi | Interest in controlled corporation; interest held jointly with other persons | 576,179,908 | 72.75% | | Mr Zheng Zhenzhong | Interest in controlled corporation; interest held jointly with other persons | 576,179,908 | 72.75% | - Mr Zheng Guosi beneficially owns 25.46% of the shares through Xiejia Limited, and Mr Zheng Zhenzhong beneficially owns 21.82% of the shares through Jianeng International Limited[84] - Mr Zheng Zhenzhong, Mr Zheng Guosi, and Mr Zheng Guodian are parties acting in concert and are therefore deemed to have an interest in the shares held by each other[84] Directors' Long Positions in Shares of Associated Corporations | Director Name | Name of Associated Corporation | Capacity | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr Zheng Guodian | Haisen International Limited | Beneficial owner | 100% | | Mr Zheng Guosi | Xiejia Limited | Beneficial owner | 100% | | Mr Zheng Zhenzhong | Jianeng International Limited | Beneficial owner | 100% | Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company As of June 30, 2025, Xiejia, Haisen, and Jianeng, as beneficial owners, along with Ms Wu Zihong, Mr Zheng Guodian, Ms Hong Mali, and Ms Su Li, as spouses' interests or interests in controlled corporations, all held significant long positions in the Company's shares Substantial Shareholders' and Other Persons' Long Positions in the Company's Shares | Shareholder Name/Entity | Capacity | Number of Ordinary Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Xiejia | Beneficial owner | 201,662,968 | 25.46% | | Ms Wu Zihong | Spouse's interest | 576,179,908 | 72.75% | | Haisen | Beneficial owner | 201,662,968 | 25.46% | | Mr Zheng Guodian | Interest in controlled corporation; interest held jointly with other persons | 576,179,908 | 72.75% | | Ms Hong Mali | Spouse's interest | 576,179,908 | 72.75% | | Jianeng | Beneficial owner | 172,853,972 | 21.82% | | Ms Su Li | Spouse's interest | 576,179,908 | 72.75% | - Ms Wu Zihong is the spouse of Mr Zheng Guosi, Ms Hong Mali is the spouse of Mr Zheng Guodian, and Ms Su Li is the spouse of Mr Zheng Zhenzhong; they are deemed to have an interest in the shares owned by their respective spouses under the Securities and Futures Ordinance[86][91] - Mr Zheng Guodian beneficially owns 25.46% of the shares through Haisen International Limited[86] Share Option Scheme The Company adopted a share option scheme on February 18, 2021, to incentivize eligible participants and provide equity opportunities. As of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed, and the scheme limit is 10% of the issued shares - The share option scheme was adopted on February 18, 2021, to incentivize eligible participants and provide opportunities to own equity in the Company[88][89] - Eligible participants include employees, executives, officers, directors, consultants, suppliers, customers, agents, and other individuals who have contributed to the Group[90][94] - The scheme limit is 10% of the total issued shares on the listing date, which is 79,200,000 shares, and all unexercised share options shall not exceed 30% of the issued shares from time to time[93][96] - For the six months ended June 30, 2025, no share options were granted, exercised, cancelled, or lapsed under the share option scheme[88][97] - Share options are exercisable within 10 years from the date of grant and acceptance, with the subscription price not lower than the highest of the closing price on the grant date, the average closing price for the five business days immediately preceding the grant date, and the nominal value of the shares[99][103][106] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's ordinary shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's ordinary shares[104] Events After Reporting Period No significant events affecting the Group occurred after June 30, 2025, and up to the date of this announcement - No significant events affecting the Group occurred after June 30, 2025, and up to the date of this announcement[105] Standard Code for Directors' Securities Transactions The Group has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules as its code of conduct for directors' securities transactions, and all directors confirmed compliance during the reporting period - The Group has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules as its code of conduct for directors' securities transactions in shares[107] - Following specific enquiries with all directors, all directors have confirmed their compliance with the said code throughout the six months ended June 30, 2025[107] Audit Committee The Company's Audit Committee, comprising 4 independent non-executive directors, has reviewed the Group's accounting principles, internal controls, financial reporting matters, and unaudited consolidated financial statements, deeming them compliant with applicable accounting standards and Listing Rules - The Audit Committee comprises 4 independent non-executive directors: Mr Wu Shiming, Mr Wang Linan, Mr Chen Congming, and Ms Liu Xuefeng[108] - The Audit Committee has reviewed the accounting principles and policies adopted by the Group, discussed internal controls and financial reporting matters, and the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[108] - The Audit Committee believes that the relevant financial statements comply with applicable accounting standards and the Listing Rules and have made appropriate disclosures[108]