中国艺术金融(01572) - 2025 - 中期业绩

Interim Results Announcement This section provides an overview of China Art Financial Holdings Limited's unaudited condensed consolidated interim results for the six months ended June 30, 2025 Overview of Interim Results of China Art Financial Holdings Limited This announcement presents the unaudited condensed consolidated interim results of China Art Financial Holdings Limited and its subsidiaries for the six months ended June 30, 2025, with comparative figures for the prior period - The Group released its unaudited condensed consolidated interim results for the six months ended June 30, 2025[2] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement details the Group's financial performance, showing revenue growth alongside a significant decline in profit before tax and profit for the period Profit or Loss Overview For the six months ended June 30, 2025, the company's revenue increased year-on-year, but profit before tax and profit for the period significantly decreased, primarily due to higher cost of inventories sold, increased finance costs, and reduced income tax expense Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 43,220 | 36,778 | | Other income | 462 | 697 | | Other gains/(losses) net | 58 | (151) | | Cost of inventories sold | (35,600) | (22,950) | | Reversal/(recognition) of impairment losses net | 13 | (99) | | Staff costs | (2,896) | (2,240) | | Depreciation of property, plant and equipment | (98) | (120) | | Depreciation of right-of-use assets | (347) | (320) | | Loss on disposal of property, plant and equipment | (85) | – | | Advertising and promotion expenses | (1,453) | (1,153) | | Other expenses | (1,994) | (2,332) | | Finance costs | (85) | (25) | | Profit before tax | 1,195 | 8,085 | | Income tax expense | (940) | (2,669) | | Profit for the period attributable to owners of the Company | 255 | 5,416 | | Earnings per share (RMB cents) - Basic and diluted | 0.02 | 0.32 | - Profit for the period attributable to owners of the Company significantly decreased by 95.3% year-on-year to RMB 255 thousand[4] - Basic and diluted earnings per share decreased from RMB 0.32 cents in the same period of 2024 to RMB 0.02 cents in 2025[4] Condensed Consolidated Statement of Financial Position This statement presents the Group's financial position, highlighting changes in assets, liabilities, and equity, including a notable increase in inventories Financial Position Overview As of June 30, 2025, the company's total assets and net equity slightly increased, while net current assets remained stable, with a significant increase in inventories and a slight decrease in loans to customers Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current assets | | | | Property, plant and equipment | 510 | 190 | | Right-of-use assets | 1,098 | 743 | | Deferred tax assets | 1,254 | 1,123 | | Total non-current assets | 2,862 | 2,056 | | Current assets | | | | Inventories | 101,000 | 32,000 | | Loans to customers | 445,572 | 447,255 | | Other receivables | 17 | 11 | | Tax recoverable | 256 | 287 | | Bank balances and cash | 588,009 | 653,570 | | Total current assets | 1,134,854 | 1,133,123 | | Current liabilities | | | | Accruals and other payables | 25,040 | 23,423 | | Lease liabilities | 823 | 465 | | Tax payable | 731 | 826 | | Total current liabilities | 26,594 | 24,714 | | Net current assets | 1,108,260 | 1,108,409 | | Total assets less current liabilities | 1,111,122 | 1,110,465 | | Non-current liabilities | | | | Lease liabilities | 178 | – | | Deferred tax liabilities | 274 | 186 | | Total non-current liabilities | 452 | 186 | | Net assets | 1,110,670 | 1,110,279 | | Total equity | 1,110,670 | 1,110,279 | - Inventories significantly increased from RMB 32,000 thousand as of December 31, 2024, to RMB 101,000 thousand as of June 30, 2025[5] - Bank balances and cash decreased from RMB 653,570 thousand as of December 31, 2024, to RMB 588,009 thousand as of June 30, 2025[5] Notes to the Condensed Consolidated Financial Statements These notes provide detailed explanations of the Group's accounting policies, revenue segmentation, financial costs, tax expenses, and other key financial statement items 1. General Information and Basis of Preparation The Group's condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the HKEX Listing Rules, presented in RMB, and include variable interest entities controlled through contractual arrangements in China - The financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, presented in RMB[6][7] - The Group exercises effective financial and operational control over Hexin Pawn and Hexin Auction through contractual arrangements, including comprehensive service agreements, option agreements, entrustment agreements, and equity pledge agreements, to obtain their economic returns[8][9][10] 2. Significant Accounting Policies The Group's condensed consolidated financial statements are prepared on a historical cost basis, with the first-time application of revised HKFRSs having no significant impact on financial position or performance - The financial statements are prepared on a historical cost basis, with accounting policies consistent with the 2024 annual financial statements, except for the application of revised HKFRSs[11] - HKAS 21 (Amendment) 'Lack of Exchangeability' was first applied in this period, but it had no significant impact on the financial position or performance[12] 3. Revenue and Segment Information The Group's revenue is primarily driven by a significant increase in art and asset sales, offsetting a decline in interest income from the pawn business, while the auction business saw substantial revenue growth but remained at a loss, with all operating segments' revenue originating from mainland China Revenue Analysis (For the six months ended June 30) | Revenue Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest income from art and asset pawn business | 3,963 | 10,931 | | Art sales from art and asset sales business | 39,159 | 25,841 | | Auction income from art and asset auction business | 98 | 6 | | Total | 43,220 | 36,778 | - Interest income from the art and asset pawn business decreased by 63.7% year-on-year, while revenue from the art and asset sales business increased by 51.5% year-on-year[13] Breakdown of Art and Asset Sales Business Revenue (For the six months ended June 30) | Asset Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Zisha artworks | 37,124 | 14,115 | | Paintings and calligraphy | 2,035 | 11,726 | | Total | 39,159 | 25,841 | Segment Revenue and Performance Analysis (For the six months ended June 30) | Segment | 2025 Revenue (RMB '000) | 2025 Performance (RMB '000) | 2024 Revenue (RMB '000) | 2024 Performance (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Art and asset pawn business | 3,963 | 1,985 | 10,931 | 8,870 | | Art and asset auction business | 98 | (278) | 6 | (259) | | Art and asset sales business | 39,159 | 1,513 | 25,841 | 1,281 | | Total | 43,220 | 3,220 | 36,778 | 9,892 | - All revenue and designated non-current assets are located in mainland China (excluding Hong Kong)[25] - In the first half of 2025, customers A and B are no longer major customers (contributing over 10% of total revenue), while customers D and E have become new major customers[26][27][28] 4. Financial Costs For the six months ended June 30, 2025, finance costs significantly increased, primarily due to interest expenses from loans from a former director and other loans Finance Costs (For the six months ended June 30) | Finance Cost Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest expense on loan from a former director | 39 | – | | Interest expense on other loans | 32 | – | | Interest expense on lease liabilities | 14 | 25 | | Total finance costs | 85 | 25 | - Finance costs increased by 240% from RMB 25 thousand in the same period of 2024 to RMB 85 thousand in 2025[30] 5. Income Tax Expense For the six months ended June 30, 2025, income tax expense significantly decreased due to lower taxable profit for the period, with Chinese subsidiaries taxed at 25% and no taxable profit in Hong Kong Income Tax Expense (For the six months ended June 30) | Tax Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax - China corporate income tax for the period | 944 | 2,732 | | Current tax - Under-provision in prior years | 39 | – | | Deferred tax | (43) | (63) | | Total | 940 | 2,669 | - Income tax expense decreased by 64.8% year-on-year, from RMB 2,669 thousand in 2024 to RMB 940 thousand in 2025[31] - Chinese subsidiaries are subject to a 25% tax rate, while no provision for profits tax was made for Hong Kong due to the absence of taxable profits[31][32] 6. Dividends The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[33] 7. Earnings Per Share For the six months ended June 30, 2025, basic and diluted earnings per share significantly decreased, consistent with the reduction in profit for the period, with diluted EPS being the same as basic EPS due to no potentially dilutive ordinary shares Earnings Per Share Calculation Data (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB '000) | 255 | 5,416 | | Weighted average number of ordinary shares for basic and diluted EPS (thousand shares) | 1,690,500 | 1,682,533 | | Basic and diluted earnings per share (RMB cents) | 0.02 | 0.32 | - Basic and diluted earnings per share decreased by 93.75% year-on-year[34][35][36][37] - Diluted earnings per share are the same as basic earnings per share as there were no potentially dilutive ordinary shares outstanding during both periods[37] 8. Inventories As of June 30, 2025, total inventories significantly increased, primarily driven by a substantial rise in paintings and calligraphy inventories, with a corresponding increase in the cost of inventories sold Inventories Composition (As of June 30, 2025) | Inventory Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Zisha artworks | 38,500 | 32,000 | | Paintings and calligraphy | 62,500 | – | | Total | 101,000 | 32,000 | - Total inventories increased by 215.6% from RMB 32,000 thousand as of December 31, 2024, to RMB 101,000 thousand as of June 30, 2025[38] - Cost of inventories sold increased from RMB 22,950 thousand in the same period of 2024 to RMB 35,600 thousand in 2025[38] 9. Loans to Customers As of June 30, 2025, loans to art and asset pawn customers slightly decreased, but impairment provisions remained stable, with loans typically maturing within three to six months at annual interest rates of 6% to 12%, all collateralized and not overdue Loans to Art and Asset Pawn Customers (As of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Loans to art and asset pawn customers | 449,587 | 451,283 | | Less: Impairment provision | (4,015) | (4,028) | | Net amount | 445,572 | 447,255 | - The annual interest rate for customer loans was approximately 6% to 12% in the first half of 2025 (2024: 7% to 12%)[39] - All pawn loans are collateralized by art and other assets, primarily Zisha artworks and paintings and calligraphy, and none were overdue as of the end of the reporting period[40] 10. Accruals and Other Payables As of June 30, 2025, total accruals and other payables slightly increased, notably due to a change in the nature of a loan from a former director and the addition of an unsecured revolving credit facility from an independent third party Accruals and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Accrued expenses | 3,125 | 4,482 | | Loan from a former director | 7,316 | 7,243 | | Amount due to a director | – | 5,564 | | Amount due to a director of a subsidiary of the Company | – | 4,897 | | Payables for acquisition of property, plant and equipment | 503 | – | | Other loans | 12,618 | – | | Other payables for art and asset auction business | 614 | – | | Other payables | 830 | 858 | | Other taxes payable | 34 | 379 | | Total | 25,040 | 23,423 | - The nature of the loan from former director Ms. Lin Xiaomei changed from unsecured, interest-free, and repayable by April 30, 2025, to unsecured, interest-bearing, and repayable on demand[42][43] - The Company entered into a credit facility agreement with an independent third party for an unsecured revolving credit facility of up to HKD 30 million at an annual interest rate of 5%[43] 11. Share Capital As of June 30, 2025, authorized and issued and fully paid share capital remained stable, following a new share issuance to an independent third party in April 2024, with net proceeds intended for a joint venture Share Capital Structure (As of June 30, 2025) | Item | Number of Shares (thousand shares) | Amount (HKD '000) | Amount (RMB '000) | | :--- | :--- | :--- | :--- | | Authorized share capital (ordinary shares of HKD 0.01 each) | 5,000,000 | 50,000 | 43,420 | | Issued and fully paid share capital (as at January 1, 2024) | 1,678,000 | 16,780 | 14,679 | | Issue of new shares (on April 26, 2024) | 12,500 | 125 | 114 | | Issued and fully paid share capital (as at June 30, 2025) | 1,690,500 | 16,905 | 14,793 | - On April 26, 2024, the Company issued 12,500,000 new ordinary shares at HKD 0.12 per share to an independent third party, raising net proceeds of approximately RMB 1,319,000, intended for establishing a joint venture to provide centralized clearing system software services[44] Management Discussion and Analysis This section offers a comprehensive review of the Group's business and financial performance, liquidity, and future outlook amidst challenging market conditions Business Review During the review period, the Group faced challenging market conditions and adjusted its marketing strategies, experiencing a significant decline in pawn business revenue and profit, substantial revenue growth but increased losses in the auction business, and growth in both revenue and profit for the art and asset sales business, which became the primary growth driver - International and domestic markets continue to face challenges, and the Group has adjusted its marketing strategies to cope with the unstable environment[45] Art and Asset Pawn Business Pawn business revenue decreased by approximately 63.3% to RMB 4.0 million, and profit decreased by 77.5% to RMB 2.0 million, primarily due to lower interest rates and a temporary suspension of new business caused by the relocation of a major operating location in China, with no defaults recorded in the first half due to effective risk management - Pawn business revenue was approximately RMB 4.0 million, a year-on-year decrease of approximately 63.3%[46] - Pawn business profit was approximately RMB 2.0 million, a year-on-year decrease of approximately 77.5%[46] - The decrease in revenue was primarily due to lower interest rates on art and asset pawn loans and the suspension of new business from March to May 2025 due to the relocation of a major operating location in China[46] - The Group has established effective risk management systems, including multi-level internal approvals and professional appraisal teams, resulting in no defaults in the pawn business during the first half of 2025[47] Art and Asset Auction Business Auction business revenue surged by approximately 15.3 times to RMB 98 thousand, but losses increased from RMB 259 thousand to RMB 278 thousand, primarily due to higher operating costs - Auction business revenue was approximately RMB 98 thousand, an increase of approximately 15.3 times compared to the same period in 2024[48] - Auction business loss was approximately RMB 278 thousand, an increase from RMB 259 thousand in the same period of 2024, primarily due to increased operating costs[48] Art and Asset Sales Business Sales business revenue grew to approximately RMB 39.2 million, with a profit of approximately RMB 1.5 million, driven by leveraging customer networks, employee training, and marketing to focus on cost-effective Zisha and calligraphy/painting artworks and assist clients in sourcing art - Sales business revenue was approximately RMB 39.2 million, an increase from RMB 25.8 million in the same period of 2024[50] - Sales business profit was approximately RMB 1.5 million, an increase from RMB 1.3 million in the same period of 2024, primarily due to increased gains from art trading[50] - The Group laid the foundation for its art and asset sales business by leveraging its extensive customer network, training employees with external experts, and conducting marketing promotions[49] Financial Review During the review period, the Group's total revenue grew by 17.5%, primarily driven by art sales, yet profit before tax and profit for the period significantly decreased by 85.2% and 94.4% respectively, mainly due to reduced pawn business revenue, increased central administrative expenses, higher cost of inventories sold, and increased finance costs Revenue During the review period, total revenue increased by approximately 17.5% year-on-year to RMB 43.2 million, primarily driven by increased art sales revenue from the art and asset sales business - Total revenue increased by approximately 17.5% year-on-year to approximately RMB 43.2 million[51] - The revenue growth was primarily attributable to increased art sales revenue from the art and asset sales business[51] Other Income Other income decreased by approximately 33.7% year-on-year to RMB 0.2 million, primarily due to reduced bank interest income - Other income decreased by approximately 33.7% year-on-year to approximately RMB 0.2 million[52] - The decrease was primarily due to reduced bank interest income[52] Other Gains/(Losses) Net During the review period, net other gains were approximately RMB 0.1 million, compared to net losses of approximately RMB 0.2 million in the prior year, representing a turnaround to profit - Net other gains were approximately RMB 0.1 million, compared to net losses of approximately RMB 0.2 million in the same period of 2024[53] Cost of Inventories Sold Cost of inventories sold increased to RMB 35.6 million, primarily reflecting higher purchase costs for artworks sold in the art and asset sales business - Cost of inventories sold was approximately RMB 35.6 million, an increase from RMB 23.0 million in the same period of 2024[54] - This cost refers to the purchase cost of artworks sold to customers through the art and asset sales business during the review period[54] Reversal/(Recognition) of Impairment Losses Net During the review period, a reversal of impairment losses on pawn loans of approximately RMB 13 thousand was recorded, compared to a net impairment loss recognition of approximately RMB 0.1 million in the prior year, indicating improved asset quality - A reversal of impairment losses on pawn loans of approximately RMB 13 thousand was recorded, compared to a net impairment loss recognition of approximately RMB 0.1 million in the prior year[55] Staff Costs Staff costs increased by approximately 31.8% year-on-year to RMB 2.9 million, primarily due to an increase in the average number of employees and senior positions - Staff costs increased by approximately 31.8% from approximately RMB 2.2 million in the same period of 2024 to approximately RMB 2.9 million[56] - The increase was primarily due to an increase in the average number of employees and senior positions during the review period[56] Depreciation of Property, Plant and Equipment Depreciation of property, plant and equipment remained stable at RMB 0.1 million, with no significant additions or disposals during the period - Depreciation of property, plant and equipment was approximately RMB 0.1 million, remaining stable compared to the same period last year[57] - The stability is due to the Group having no significant additions or disposals of property, plant and equipment in both periods[57] Depreciation of Right-of-Use Assets Depreciation of right-of-use assets remained stable at RMB 0.3 million - Depreciation of right-of-use assets was approximately RMB 0.3 million, remaining stable compared to the same period last year[58] Advertising and Promotion Expenses Advertising and promotion expenses increased by approximately RMB 0.3 million, aimed at enhancing brand value and promoting business activities - Advertising and promotion expenses increased by approximately RMB 0.3 million, used to enhance brand value and promote business activities[59] Other Expenses Other expenses decreased by approximately 13.0% year-on-year to RMB 2.0 million, primarily due to reduced legal and professional fees - Other expenses decreased by approximately 13.0% year-on-year to approximately RMB 2.0 million[60] - The decrease was primarily due to reduced legal and professional fees[60] Profit Before Tax Profit before tax significantly decreased by approximately 85.2% year-on-year to RMB 1.2 million, primarily due to reduced revenue from the art and asset pawn business and increased central administrative expenses - Profit before tax decreased by approximately 85.2% year-on-year to approximately RMB 1.2 million[61] - The decrease was primarily due to reduced revenue from the art and asset pawn business and increased central administrative expenses[61] Income Tax Expense Income tax expense decreased by approximately 66.7% year-on-year to RMB 0.9 million, primarily due to lower taxable profit - Income tax expense decreased by approximately 66.7% year-on-year to approximately RMB 0.9 million[62] - The decrease was primarily due to a reduction in the Group's taxable profit during the review period[62] Profit for the Period Profit for the period significantly decreased by approximately 94.4% year-on-year to RMB 0.3 million, reflecting the combined impact of the aforementioned factors - Profit for the period decreased by approximately 94.4% year-on-year to approximately RMB 0.3 million[63] Liquidity, Financial Resources and Capital Structure The Group maintains a sound financial position, primarily funding operations through internal cash flow, despite a significant increase in net cash used in operating activities and a decrease in bank balances and cash, with no bank borrowings or significant asset pledges, a slight rise in the gearing ratio, and no material contingent liabilities or capital commitments Summary of Condensed Consolidated Cash Flow Statement (For the six months ended June 30) | Cash Flow Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net cash used in operating activities | (68,273) | (14,927) | | Net cash generated from investing activities | 462 | 695 | | Net cash generated from financing activities | 2,248 | 2,638 | - Net cash used in operating activities significantly increased from RMB 14,927 thousand in the same period of 2024 to RMB 68,273 thousand in 2025[64] - Total bank balances and cash decreased by 10.0% from approximately RMB 653.6 million as of December 31, 2024, to approximately RMB 588.0 million as of June 30, 2025[64] - The Group has no bank borrowings and no significant assets pledged[64] - The gearing ratio increased from 1.6% as of December 31, 2024, to 1.8% as of June 30, 2025[66] - The Group has no material contingent liabilities or capital commitments[67][69] Post-Reporting Events Subsequent to the reporting period, the company received a statutory demand from a former CEO for repayment of approximately HKD 7.89 million in loan principal and interest, with a potential winding-up petition if not paid on time - On August 29, 2025, the Company received a statutory demand from former CEO Ms. Lin Xiaomei for payment of outstanding loan principal and interest totaling approximately HKD 7,894,890.00, plus overdue interest[70] - Failure to pay on time may result in the creditor presenting a winding-up petition against the Company[70] Human Resources and Training As of June 30, 2025, the Group had 45 employees, with compensation policies based on performance, qualifications, experience, and market practices, including salaries, medical insurance, MPF, and discretionary bonuses - As of June 30, 2025, the Group had 45 employees (December 31, 2024: 44 employees)[71] - Employee remuneration policies are determined based on performance, qualifications, experience, and market practices, including salaries, medical insurance, MPF, and discretionary year-end bonuses[71] Foreign Exchange Risk The Group's foreign exchange risk is not significant as most monetary assets and liabilities are denominated in RMB, and business transactions are primarily conducted in RMB and HKD, with management continuing to monitor and consider hedging risks - The Group's foreign exchange risk is not significant as most monetary assets and liabilities are denominated in RMB, and business transactions are primarily conducted in RMB and HKD[72] - As of the six months ended June 30, 2025, the Group had not entered into any foreign exchange hedging arrangements[72] Outlook and Prospects Facing global economic challenges and sluggish domestic consumption, the Group will maintain a cautious approach, balancing risk management with strategic opportunities, adjusting auction strategies, prudently expanding pawn operations, leveraging collector networks for sales, and exploring new ventures in county-level digital economy financial services and AI/EV-related businesses to enhance financial performance - The global economic environment remains challenging, and the Group will maintain a cautious approach, balancing risk management with strategic opportunities[73] - The auction business will actively adjust its strategy, increase regional and multi-channel market promotion, and explore the use of advanced technologies (such as AI) to enhance the auction experience[74] - The pawn business will adopt a prudent lending strategy, ensure capital security, and strengthen its risk assessment framework[75] - The sales business will leverage its collector network to identify and sell in-demand artworks, generating profits through margin gains, agency service income, and auction commissions[76] - The Group plans to develop county-level digital economy financial services, build a secure digital closed-loop supply chain for fresh agricultural products, and explore new business cooperation opportunities related to AI and electric vehicles to enhance overall financial performance[77] Other Information This section covers corporate governance, directors' information, securities transactions, and other statutory disclosures for the reporting period Purchase, Sale or Redemption of Listed Securities During the review period, neither the Group nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the review period, neither the Group nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[78] Audit Committee The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, and raised no objections to the accounting treatments adopted - The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's interim financial statements[79] - The Audit Committee had no disagreement with the accounting treatments adopted by the Company[79] Rights to Acquire Securities For the six months ended June 30, 2025, neither the Company nor its subsidiaries entered into any arrangements enabling directors to acquire rights to subscribe for the Company's securities or benefit from purchasing shares or debentures of the Company or any other corporation - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries entered into any arrangements that would enable directors to acquire rights to subscribe for securities of the Company or to obtain benefits by purchasing shares or debentures of the Company or any other corporation[80] Dividends (reiteration) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[81] Directors' and Chief Executive's Information Updates Ms. Lin Xiaomei resigned as Chief Executive Officer on May 2, 2025, and Mr. Zou Shengyu was appointed as the new Chief Executive Officer on May 13, 2025 - Ms. Lin Xiaomei resigned as the Chief Executive Officer of the Company on May 2, 2025[82] - Mr. Zou Shengyu was appointed as the Chief Executive Officer of the Company on May 13, 2025[83] Directors' Securities Transactions Following specific inquiries, all directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules throughout the review period - All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules throughout the review period[84] Compliance with Corporate Governance Code The Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules throughout the review period - The Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules throughout the review period[85] Acknowledgement The Board extends its sincere gratitude to the directors, management, and staff for their contributions and good performance during the review period - The Board extends its sincere gratitude to the directors, management, and staff for their contributions and good performance during the review period[86]