嘉士利集团(01285) - 2025 - 中期业绩

Financial Summary Overview of Financial Performance The group's H1 2025 unaudited consolidated revenue decreased by 8.2% to RMB 750.1 million, with profit and attributable profit significantly down, but an interim dividend of 5.00 HK cents per share was declared Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 750.1 | 817.0 | -8.2% | | Profit for the Period | 9.2 | 15.9 | -42.0% | | Profit Attributable to Owners of the Company | 11.8 | 21.6 | -45.2% | | EBITDA | 79.2 | 97.4 | -18.7% | | Interim Dividend (HK cents per share) | 5.00 | N/A | N/A | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data from Statement of Profit or Loss For H1 2025, the group's revenue was RMB 750,100 thousand, gross profit RMB 205,642 thousand, profit for the period RMB 9,218 thousand, and profit attributable to owners RMB 11,816 thousand, with basic EPS at RMB 2.85 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 750,100 | 817,001 | | Cost of Sales | (544,458) | (602,188) | | Gross Profit | 205,642 | 214,813 | | Other Income | 24,808 | 26,526 | | Selling and Distribution Expenses | (111,065) | (99,234) | | Administrative Expenses | (53,276) | (53,980) | | Profit Before Tax | 16,666 | 26,140 | | Income Tax Expense | (7,448) | (10,260) | | Profit for the Period | 9,218 | 15,880 | | Profit Attributable to Owners of the Company | 11,816 | 21,564 | | Basic Earnings Per Share (RMB cents) | 2.85 | 5.20 | Condensed Consolidated Statement of Financial Position Assets, Liabilities, and Equity Position As of June 30, 2025, total assets were RMB 2,136,651 thousand, non-current assets RMB 1,365,813 thousand, net current liabilities RMB (121,156) thousand, and total equity RMB 983,369 thousand Condensed Consolidated Statement of Financial Position (As at June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,365,813 | 1,389,956 | | Current Assets | 770,838 | 878,048 | | Current Liabilities | (891,994) | (1,053,557) | | Net Current Liabilities | (121,156) | (175,509) | | Non-current Liabilities | (261,288) | (200,525) | | Net Assets | 983,369 | 1,013,922 | | Equity Attributable to Owners of the Company | 957,132 | 983,617 | | Total Equity | 983,369 | 1,013,922 | Notes to the Condensed Consolidated Financial Statements 1. Basis of Preparation Condensed consolidated financial statements are prepared under IAS 34; despite current liabilities exceeding current assets by RMB 121,156,000, the Board expects sufficient resources for continued operation - As of June 30, 2025, the group's current liabilities exceeded current assets by approximately RMB 121,156,000[9] - The Board expects the group to have sufficient resources for continued operation, primarily relying on: - Available unutilized bank facilities of approximately RMB 98,000,000 - Sufficient cash inflows from operating activities - Expected refinancing of short-term revolving bank borrowings of RMB 392,536,000 upon maturity[9][10] 2. Accounting Policies Condensed consolidated financial statements are prepared on a historical cost basis, applying IFRS (Revised) with no material impact on current or prior period financial position or performance - The application of International Financial Reporting Standards (Revised), including IAS 21 (Revised), had no material impact on the group's financial position, performance, or disclosures for the current and prior periods[12] 3. Revenue from Contracts with Customers Group revenue primarily from food sales (recognized at a point in time) and hotel services (recognized over time), with revenue analysis forming part of management's segment information Revenue Recognition Timing (For the six months ended June 30) | Revenue Recognition Timing | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | At a point in time | 739,924 | 807,942 | | Over time | 10,176 | 9,059 | | Total | 750,100 | 817,001 | 4. Operating Segments The group's main operating segments are biscuit, pasta, and flour products; segment performance is assessed by gross profit, with biscuit and flour revenue decreasing while pasta revenue grew - Key operating decision-makers review operating results and financial information by product or service category, assessing segment performance based on segment profit or loss (i.e., gross profit of each operating segment)[15] Segment Revenue and Results In H1 2025, external sales were RMB 553,052 thousand for biscuit products, RMB 86,985 thousand for pasta, and RMB 77,629 thousand for flour products, with corresponding segment results of RMB 174,619 thousand, RMB 18,783 thousand, and RMB 11,946 thousand Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (RMB thousand) | 2025 Results (RMB thousand) | 2024 Revenue (RMB thousand) | 2024 Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Biscuit Products | 553,052 | 174,619 | 621,581 | 188,872 | | Pasta Products | 86,985 | 18,783 | 68,089 | 14,858 | | Flour Products | 77,629 | 11,946 | 92,178 | 8,079 | | Others | 32,434 | 294 | 35,153 | 3,004 | | Total | 750,100 | 205,642 | 817,001 | 214,813 | Revenue by Product Category In H1 2025, sweet single biscuit revenue was RMB 211,557 thousand, sandwich biscuits RMB 197,895 thousand; pasta revenue grew to RMB 86,985 thousand, while flour revenue decreased to RMB 77,629 thousand Revenue by Product Category (For the six months ended June 30) | Product Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sweet Single Biscuits | 211,557 | 245,758 | | Salty Single Biscuits | 15,260 | 22,702 | | Sandwich Biscuits | 197,895 | 191,769 | | Wafer Biscuits | 54,863 | 69,501 | | Coarse Grain Biscuits | 16,037 | 26,219 | | Other Biscuits | 57,440 | 65,632 | | Total Biscuits | 553,052 | 621,581 | | Pasta | 86,985 | 68,089 | | Flour | 77,629 | 92,178 | | Other Products | 22,258 | 26,094 | | Hotel Services | 10,176 | 9,059 | | Total | 750,100 | 817,001 | 5. Other Income H1 2025 other income was approximately RMB 24,808 thousand, a 6.5% year-on-year decrease, mainly due to reduced interest income from loans receivable and government grants Other Income Details (For the six months ended June 30) | Income Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 4,411 | 6,528 | | Bank Deposit Interest Income | 870 | 1,621 | | Interest Income from Loans Receivable | 3,930 | 4,890 | | Sales of Scraps and Packaging Materials | 11,040 | 10,581 | | Rental Income | 3,280 | 2,294 | | Other Non-operating Income | 1,160 | 176 | | Total | 24,808 | 26,526 | 6. Other Expenses H1 2025 other expenses totaled approximately RMB 39,134 thousand, largely flat year-on-year, with R&D expenses at RMB 23,860 thousand Other Expenses Details (For the six months ended June 30) | Expense Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Research and Development Expenses | 23,860 | 25,939 | | Donation Expenses | 4,460 | 4,578 | | Cost of Scraps and Packaging Materials Sold | 8,118 | 5,953 | | Building Lease Expenses | 1,497 | 1,472 | | Other Non-operating Expenses | 1,199 | 1,165 | | Total | 39,134 | 39,107 | 7. Other Gains and Losses H1 2025 net other gains and losses were RMB 699 thousand, primarily comprising fair value gains on financial assets at fair value through profit or loss of RMB 1,326 thousand and loss on disposal of property, plant and equipment of RMB 624 thousand Other Gains and Losses (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Exchange Loss | (16) | (3) | | Loss on Disposal of Property, Plant and Equipment | (624) | (1,542) | | Fair Value Gain on Financial Assets at Fair Value Through Profit or Loss | 1,326 | 3,843 | | Total | 699 | 2,285 | 8. Income Tax Expense H1 2025 income tax expense decreased to RMB 7,448 thousand from RMB 10,260 thousand in the prior period, mainly composed of current and deferred tax Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC Enterprise Income Tax — Current Tax | 10,604 | 14,159 | | Deferred Tax | (3,156) | (3,899) | | Total | 7,448 | 10,260 | 9. Profit for the Period Profit for the period was achieved after deducting various expenses, including total employee benefit expenses of RMB 123,180 thousand and total depreciation and amortisation of RMB 51,179 thousand Profit for the Period Deductions (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Directors' and Chief Executive's Emoluments | 2,062 | 2,706 | | Other Employee Benefit Expenses | 121,118 | 129,806 | | Total Employee Benefit Expenses | 123,180 | 132,512 | | Depreciation of Property, Plant and Equipment | 38,182 | 39,550 | | Depreciation of Right-of-Use Assets | 5,729 | 5,888 | | Depreciation of Investment Properties | 529 | 955 | | Amortisation of Intangible Assets | 6,739 | 6,584 | | Total Depreciation and Amortisation | 51,179 | 52,977 | | Cost of Inventories Recognized as an Expense | 539,208 | 596,785 | 10. Reclassification of Discontinued Operations Held for Sale The soy milk business was reclassified from discontinued operations held for sale to continuing operations as the sale transaction is not expected to complete within 12 months due to a third-party payment default - The soy milk business (Guangdong Quancheng Great Health Beverage Co., Ltd.) was reclassified from discontinued operations held for sale to continuing operations due to the sale transaction not being completed within 12 months[30][31] 11. Assets and Liabilities Held for Sale The group classified equity interest in Jiangsu Casualife Food Co., Ltd. and a land parcel in Huaibei, Anhui, as assets and liabilities held for sale, with no impairment loss recognized as net proceeds are expected to exceed net book value - The group agreed to dispose of 100% equity interest in Jiangsu Casualife Food Co., Ltd. for a total cash consideration of RMB 48,300,000[32] - The group decided to transfer a land parcel located in Huaibei City, Anhui Province, China[32] Assets and Liabilities Classified as Held for Sale (As at June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Assets Classified as Held for Sale | 25,803 | 21,750 | | Total Liabilities Associated with Assets Classified as Held for Sale | (14,931) | (463) | 12. Dividends The Board resolved to declare an interim dividend of 5 HK cents per ordinary share for the six months ended June 30, 2025, with no interim dividend declared in the prior period - The Board has resolved to declare an interim dividend of 5.00 HK cents per ordinary share for the reporting period (H1 2024: Nil)[34] 13. Earnings Per Share Basic earnings per share attributable to owners is calculated based on profit for the period and weighted average ordinary shares, with no diluted EPS presented due to the absence of potential ordinary shares Basic Earnings Per Share Calculation (For the six months ended June 30) | Item | 2025 (RMB thousand/thousand shares) | 2024 (RMB thousand/thousand shares) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company for Basic EPS Calculation | 11,816 | 21,564 | | Weighted Average Number of Ordinary Shares for Basic EPS Calculation | 415,000 | 415,000 | | Basic Earnings Per Share (RMB cents) | 2.85 | 5.20 | 14. Property, Plant and Equipment, Right-of-Use Assets, Investment Properties and Intangible Assets In H1 2025, the group added RMB 22,089 thousand in property, plant and equipment to enhance operations and recorded a gain of RMB 624 thousand from disposals, with no additions to investment properties, right-of-use assets, or intangible assets - In H1 2025, the group added property, plant and equipment of approximately RMB 22,089 thousand, a decrease from RMB 45,090 thousand in the prior period[37] - Disposal of certain plant and equipment generated a gain of RMB 624 thousand (H1 2024: loss of RMB 1,542 thousand)[39] - No additions to investment properties, right-of-use assets, or intangible assets were made during the period[39] 15. Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, total financial assets at fair value through profit or loss amounted to RMB 156,132 thousand, primarily comprising unlisted equity investments and unlisted equity investment funds in PRC Financial Assets at Fair Value Through Profit or Loss (As at June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted Equity Investments in PRC | 27,024 | 26,000 | | Unlisted Equity Investment Funds in PRC | 129,108 | 128,806 | | Total | 156,132 | 154,806 | 16. Trade and Bills Receivables and Other Receivables and Deposits As of June 30, 2025, total trade and bills receivables and other receivables were approximately RMB 193,452 thousand, a 13.7% increase from December 31, 2024, with net trade and bills receivables at RMB 30,970 thousand Trade and Bills Receivables, Other Receivables and Deposits (As at June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Gross Trade and Bills Receivables, Net of ECL Provision | 30,970 | 45,641 | | Prepayments for Purchase of Raw Materials | 60,712 | 17,643 | | Other Recoverable Taxes | 36,526 | 35,368 | | Other Receivables, Net of Provision | 47,286 | 32,120 | | Other Prepayments | 13,745 | 30,687 | | Total (under Current Assets) | 193,452 | 170,168 | Trade and Bills Receivables As of June 30, 2025, net trade and bills receivables (after ECL provision) totaled RMB 30,970 thousand, with RMB 23,509 thousand due within two months Aging Analysis of Trade and Bills Receivables (As at June 30) | Aging | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 2 months | 23,509 | 29,020 | | Over 2 months but within 3 months | 2,077 | 9,754 | | Over 3 months but within 6 months | 4,078 | 5,374 | | Over 6 months but within 1 year | 1,277 | 1,276 | | Over 1 year | 29 | 217 | | Total | 30,970 | 45,641 | 17. Impairment Assessment of Financial Assets under Expected Credit Loss Model In H1 2025, the group recognized a net impairment loss reversal of RMB (854) thousand under the ECL model, mainly due to a RMB 4,000 thousand impairment loss reversal for other receivables Impairment Loss (Reversal) Details (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loans to Non-controlling Shareholders of Subsidiaries | — | 1,579 | | Loans to an Associate | 98 | — | | Loans Receivable | 325 | 1,268 | | Amounts Due from Non-controlling Shareholders of Subsidiaries | 280 | 113 | | Trade Receivables | 2,443 | 3,785 | | Other Receivables | (4,000) | (394) | | Total | (854) | 6,351 | 18. Trade and Bills Payables and Other Payables As of June 30, 2025, total trade and bills payables and other payables were RMB 199,617 thousand, a significant decrease from RMB 343,839 thousand as of December 31, 2024 Trade and Bills Payables, Other Payables (As at June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and Bills Payables | 75,845 | 191,020 | | Accrued Expenses | 41,976 | 49,497 | | Payables for Transportation Costs | 14,726 | 19,427 | | Accrued Wages and Welfare | 27,554 | 39,354 | | Other Taxes Payable | 7,326 | 12,834 | | Other Payables | 32,190 | 31,707 | | Total | 199,617 | 343,839 | Trade and Bills Payables As of June 30, 2025, total trade and bills payables were RMB 75,845 thousand, with RMB 72,745 thousand due within three months Aging Analysis of Trade and Bills Payables (As at June 30) | Aging | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 72,745 | 182,381 | | Over 3 months but within 6 months | 1,757 | 6,697 | | Over 6 months but within 1 year | 284 | 468 | | Over 1 year | 1,059 | 1,474 | | Total | 75,845 | 191,020 | 19. Bank Borrowings In H1 2025, the group obtained RMB 503,020 thousand in new bank borrowings and repaid RMB 390,889 thousand, with total bank borrowings at RMB 797,200 thousand as of June 30, 2025, bearing interest at fixed or floating rates - In H1 2025, the group obtained new bank borrowings of RMB 503,020 thousand and repaid bank borrowings of RMB 390,889 thousand[48] - As of June 30, 2025, bank borrowings bore interest at fixed annual rates ranging from 1.50% to 3.25% or floating annual rates ranging from 2.37% to 4.20%[48] Company Performance Review for H1 2025 Industry Overview In H1 2025, China's biscuit and snack industry showed resilient growth amid intense competition, evolving channels, and strong consumer demand for healthy, high-value products, with bulk snack stores and short-video e-commerce reshaping the market - The Mainland China biscuit and snack industry showed resilient growth in H1 2025, but faced intense competition and rapidly evolving channels[49] - Consumer demand shifted towards health-conscious, high-value-for-money products, seeking functional benefits and clean labels[49] - Channel transformation and fragmentation, with Douyin solidifying its position as a leading online snack sales channel and bulk snack stores emerging[49] Business Review Casualife Group, with over 69 years of history, reported H1 2025 revenue of RMB 750.1 million (down 8.2%), gross profit of RMB 205.6 million (down 4.3%), and profit attributable to owners of RMB 11.8 million (down 45.2%) - The Casualife biscuit brand, with over 69 years of history, sells products across 31 provinces and 310 prefecture-level cities, and exports to other countries[50] - The group's product range includes biscuits (sweet and salty single, sandwich, wafer, etc.), pasta (spaghetti, macaroni), flour (wheat flour), and other products (crackers, cookies, candies, bread, mooncakes, etc.)[51] Core Financial Performance for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 750.1 | 817.0 | -8.2% | | Gross Profit | 205.6 | 214.8 | -4.3% | | Gross Margin | 27.4% | 26.3% | +1.1 percentage points | | Profit Attributable to Owners of the Company | 11.8 | 21.6 | -45.2% | Our Business Model The group prioritizes innovation through brand, product, and marketing strategies, accelerating R&D, product upgrades, and digital marketing, while strengthening channel advantages and optimizing team structure across various retail formats - The group highly values innovation, striving to strengthen core competitiveness through brand, product, and marketing innovation[53] - Accelerated new product R&D, product upgrades, and digital marketing, increased online investment, leveraged celebrity endorsements to expand traffic, and optimized product portfolios and conversion rates through big data analytics[53] - Continuously strengthened channel advantages by optimizing team structure, reorganizing distributors, and refining incentive policies, actively expanding traditional, modern, and new retail channels[53] Revenue Changes H1 2025 group revenue decreased by 8.2% to RMB 750.1 million, with biscuit segment revenue down 11.0% due to macroeconomic pressures and competition, while pasta revenue grew 27.8% and flour revenue decreased 15.8% Revenue Changes by Product Category (For the six months ended June 30) | Product Category | 2025 (RMB million) | 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Sweet Single Biscuits | 211.6 | 245.8 | –13.9% | | Salty Single Biscuits | 15.3 | 22.7 | –32.6% | | Sandwich Biscuits | 197.9 | 191.8 | 3.2% | | Wafer Biscuits | 54.9 | 69.5 | –21.0% | | Coarse Grain Biscuits | 16.0 | 26.2 | –38.9% | | Other Biscuits | 57.4 | 65.6 | –12.5% | | Total Biscuits | 553.1 | 621.6 | –11.0% | | Pasta | 87.0 | 68.1 | 27.8% | | Flour | 77.6 | 92.2 | –15.8% | | Others | 22.3 | 26.1 | –14.6% | | Total (excluding hotel business) | 740.0 | 808.0 | –8.4% | - The overall decline in the biscuit segment resulted from a combination of macroeconomic pressures, changing consumer behavior, intense industry competition, persistent inflation, and the growing popularity of alternative snacks[55] Gross Profit and Gross Margin H1 2025 overall gross profit decreased to RMB 205.6 million, but gross margin slightly increased by 1.1 percentage points to 27.4%, primarily due to lower raw material costs for sugar and flour - The group's overall gross profit decreased by 4.3% from approximately RMB 214.8 million to approximately RMB 205.6 million[56] - The group's gross margin slightly increased by 1.1 percentage points to 27.4%, primarily due to lower input costs for certain raw materials, especially sugar and flour[56] - The biscuit segment's gross margin increased by 1.2 percentage points to 31.6%, while the pasta business segment's gross margin slightly decreased by 0.2 percentage points to 21.6%[56] Other Income H1 2025 other income was approximately RMB 24.8 million, a 6.5% year-on-year decrease, mainly due to reduced interest income from loans receivable and government grants - Other income was approximately RMB 24.8 million, a 6.5% decrease year-on-year, mainly due to reduced interest received from loans receivable and lower government grants[57] Selling and Distribution Expenses H1 2025 selling and distribution expenses increased by 11.9% to approximately RMB 111.1 million - Selling and distribution expenses were approximately RMB 111.1 million, an 11.9% increase year-on-year[58] Administrative Expenses H1 2025 administrative expenses slightly decreased by 1.3% to approximately RMB 53.3 million - Administrative expenses were approximately RMB 53.3 million, a slight decrease of 1.3% year-on-year[59] Inventories As of June 30, 2025, inventory balance decreased by approximately RMB 38.8 million to RMB 181.7 million due to early preparation for Chinese New Year sales, with inventory turnover days increasing by 8 days to 67 days - Inventory balance decreased by approximately RMB 38.8 million to approximately RMB 181.7 million, attributed to early product preparation for Chinese New Year sales[60] - Inventory turnover days for the reporting period were 67 days, an increase of 8 days compared to December 31, 2024[60] Trade and Bills Receivables and Other Receivables As of June 30, 2025, trade and bills receivables and other receivables increased by 13.7% to approximately RMB 193.5 million, with turnover days remaining at 44 days - Trade and bills receivables and other receivables were approximately RMB 193.5 million, a 13.7% increase from December 31, 2024[61] - Trade and bills receivables and other receivables turnover days for the reporting period remained at 44 days, consistent with December 31, 2024[61] Financial and Liquidity Position As of June 30, 2025, bank balances and cash were RMB 279.4 million, total bank borrowings RMB 797.2 million (up 16.4%), with both total and net debt-to-equity ratios rising, while net current liabilities improved and current ratio was 0.86 - Bank balances and cash were approximately RMB 279.4 million, a decrease from RMB 379.1 million as of December 31, 2024[62] - Total bank borrowings were approximately RMB 797.2 million, a 16.4% increase from December 31, 2024[62] Debt-to-Equity Ratios (As at June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total Debt-to-Equity Ratio | 81.1% | 67.6% | | Net Debt-to-Equity Ratio | 52.7% | 30.2% | - Net current liabilities improved to approximately RMB 121.2 million, from RMB 175.5 million as of December 31, 2024[63] - The current ratio was 0.86, an improvement from 0.83 as of December 31, 2024[63] Outlook The group will focus on product upgrades, expanding retail chain coverage, standardizing shelf presence, and launching small-pack products to drive channel expansion, while streamlining operations and enhancing brand quality, cautiously optimistic for satisfactory H2 results - The group will focus on streamlining operations and enhancing brand awareness, while maintaining and improving product quality[65] - Leveraging operational efficiencies and cost-saving measures to ensure better performance[65] - Cautiously optimistic that business operations in the second half of the year will achieve satisfactory results[65] Other Information Human Resources and Employee Remuneration As of June 30, 2025, the group had 2,220 full-time employees, a decrease from the prior year, with total employee benefit expenses of approximately RMB 123.2 million determined by position, performance, experience, and market trends - As of June 30, 2025, the group had 2,220 full-time employees (June 30, 2024: 2,582 employees), a decrease in headcount[66] - Total employee benefit expenses for the six months ended June 30, 2025, were approximately RMB 123.2 million (H1 2024: approximately RMB 132.5 million)[66] Corporate Governance Practices The Board is committed to high corporate governance standards, adopting the Listing Rules' Corporate Governance Code; despite the Chairman and CEO roles being combined, the Board believes this ensures policy continuity and operational stability, balanced by independent non-executive directors - The Company has adopted the principles and applicable code provisions of the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[67] - The roles of Chairman and Chief Executive Officer are performed by Mr. Huang Xianming, deviating from Code Provision C.2.1[68] - The Board believes this deviation is beneficial for maintaining policy continuity and operational stability, with four independent non-executive directors providing independent advice and checks and balances[68] Directors' Compliance with the Model Code for Securities Transactions The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance throughout the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Listing Rules[69] - All directors confirmed compliance with the standards of dealing as set out in the Model Code throughout the reporting period[69] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviewed accounting principles, internal controls, and financial reporting, discussing interim results with no disagreements on accounting treatments - The Audit Committee comprises three independent non-executive directors, responsible for reviewing accounting principles, internal controls, and financial reporting matters[70] - The Audit Committee has reviewed and discussed the group's interim results for the six months ended June 30, 2025, with no disagreements on the accounting treatments adopted by the Company[70] Purchase, Sale or Redemption of the Company's Listed Securities During H1 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During H1 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[71] Interim Dividend The Board resolved to declare an interim dividend of 5.00 HK cents per ordinary share for the reporting period, payable to shareholders on record as of September 16, 2025 - The Board has resolved to declare an interim dividend of 5.00 HK cents per ordinary share for the reporting period (H1 2024: Nil)[72] Closure of Register of Members To determine eligibility for the 2025 interim dividend, the Company's share register will be closed from September 15 to September 16, 2025, with the record date on September 16, 2025, and dividend payment expected on September 26, 2025 - To determine the entitlement to the 2025 interim dividend, the Company's register of members will be closed from September 15, 2025, to September 16, 2025[73] - The record date for determining entitlement to the 2025 interim dividend is September 16, 2025[73] - The payment date for the 2025 interim dividend is expected to be September 26, 2025[73] Publication of Interim Results This interim results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company - This interim results announcement has been published on the website of The Stock Exchange of Hong Kong Limited (www.hkex.com.hk) and the Company's website (http://www.gdjsl.com)[74](index=74&type=chunk)