北大青鸟环宇(08095) - 2025 - 中期财报

Characteristics of the GEM Market and Report Statement This section describes the GEM market's features for small and medium-sized companies, noting higher investment risks and market volatility, with directors fully responsible for report accuracy - The GEM market is positioned for small and medium-sized companies, carrying higher investment risks [2] - GEM securities may experience significant market volatility and do not guarantee high liquidity [3] - Directors assume full responsibility for the report's content, confirming its accuracy, completeness, and lack of misleading information [5] Unaudited Interim Results This section presents the company's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, including statements of profit or loss, financial position, changes in equity, and cash flows, reflecting the group's financial performance and position during the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income H1 2025 saw significant revenue growth, but operating and period losses widened substantially, influenced by joint venture/associate losses and tax credits Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 300,562 | 214,841 | 39.9% increase | | Gross Profit | 47,689 | 31,810 | 49.9% increase | | Operating Loss | (60,089) | (11,923) | Loss widened | | Loss Before Tax | (50,746) | (12,563) | Loss widened | | Income Tax Credit/(Expense) | 21,644 | (2,127) | Switched from expense to credit | | Loss for the Period | (29,102) | (14,690) | Loss widened | | Loss Attributable to Owners of the Company | (28,372) | (6,049) | 369.0% increase in loss | | Basic and Diluted Loss Per Share (RMB cents per share) | (1.87) | (0.40) | Loss widened | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets slightly decreased, non-current assets reduced, but net current assets significantly increased, while total equity remained stable Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 4,157,896 | 4,414,864 | 5.8% decrease | | Current Assets | 1,172,380 | 1,101,413 | 6.4% increase | | Total Assets | 5,330,276 | 5,516,277 | 3.4% decrease | | Current Liabilities | 870,873 | 1,037,109 | 16.0% decrease | | Net Current Assets | 301,507 | 64,304 | 369.0% increase | | Non-current Liabilities | 498,783 | 514,365 | 3.0% decrease | | Net Assets | 3,960,620 | 3,964,803 | 0.1% decrease | | Equity Attributable to Owners of the Company | 3,710,875 | 3,709,800 | 0.03% increase | Condensed Consolidated Statement of Changes in Equity For H1 2025, total equity slightly decreased due to comprehensive loss, while share capital and capital reserve remained unchanged Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (RMB thousands) | January 1, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Share Capital | 151,446 | 151,446 | No change | | Capital Reserve | 605,810 | 605,810 | No change | | Retained Earnings | 2,952,674 | 2,758,736 | 7.0% increase | | Equity Attributable to Owners of the Company | 3,710,875 | 3,709,800 | 2.3% increase | | Total Equity | 3,960,620 | 3,775,969 | 4.9% increase | Condensed Consolidated Statement of Cash Flows For H1 2025, the company experienced net cash outflow from operating activities, significant net cash inflow from investing activities, and net cash outflow from financing activities, resulting in a net increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | (100,772) | 155,028 | Switched from inflow to outflow | | Net Cash from Investing Activities | 243,380 | (189,609) | Switched from outflow to inflow | | Net Cash from Financing Activities | (107,980) | 54,126 | Switched from inflow to outflow | | Net Increase in Cash and Cash Equivalents | 34,628 | 19,545 | 77.2% increase | | Cash and Cash Equivalents at End of Period | 183,040 | 176,155 | 3.9% increase | Notes to the Condensed Consolidated Financial Statements This section details key accounting policies, financial performance, and position disclosures within the interim condensed consolidated financial statements Note 1: General Information The company is a Sino-foreign equity joint stock limited company incorporated in China, with H shares listed on GEM, primarily engaged in investment holding, and its subsidiaries operate in tourism, wine production, metal trading, and LED device manufacturing - The company is a Sino-foreign equity joint stock limited company incorporated in China, with H shares listed on GEM [22] - The company's principal business is investment holding, with subsidiaries engaged in tourism and leisure, wine production and sales, metal product trading, and LED device manufacturing and sales [23] Note 2: Basis of Preparation and Significant Accounting Policies The condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules; new and revised HKFRSs adopted this period did not cause significant changes to accounting policies or reported amounts, and the statements, though unaudited, have been reviewed by the audit committee - Financial statements are prepared in accordance with HKAS 34 and the GEM Listing Rules [24] - New and revised HKFRSs adopted this period did not cause significant changes to accounting policies or reported amounts [25] - The condensed consolidated financial statements are unaudited but have been reviewed by the Audit Committee [29] Note 3: Revenue For H1 2025, total revenue was RMB 300,562 thousand, primarily from metal product trading and tourism development, with metal product trading contributing the largest share Revenue Breakdown (by major product or service line) | Product/Service Line | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Shuttle bus services | 68,680 | 56,187 | | Tourism and leisure services | 11,169 | 182 | | Wine and related products | 3,887 | 4,253 | | LED devices | 26,539 | 25,646 | | Metallic products | 190,238 | 128,573 | | Others | 49 | – | | Total Revenue | 300,562 | 214,841 | Note 4: Other Gains, Income and Losses, Net For H1 2025, net other gains, income and losses was a loss of RMB 1,817 thousand, a wider loss compared to RMB 371 thousand in the prior period, mainly due to other losses Other Gains, Income and Losses, Net | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 456 | 556 | | Government grants | 25 | 247 | | Tax incentives | 199 | 1,788 | | Others | (2,497) | (2,962) | | Total | (1,817) | (371) | Note 5: Segment Information The company has four reportable segments: tourism development, investment holding, trading of metallic products, and sales and production of LED devices; as of June 30, 2025, metal product trading generated the highest revenue, but investment holding and LED device segments recorded losses - The company has four reportable segments: tourism development, investment holding, trading of metallic products, and sales and production of LED devices [38][41] Information on Operating Segment Profit or Loss (for the six months ended June 30, 2025) | Segment | Revenue from External Customers (RMB thousands) | Segment (Loss)/Profit (RMB thousands) | | :--- | :--- | :--- | | Tourism development | 79,849 | (1,652) | | Investment holding | – | (14,042) | | Trading of metallic products | 190,238 | 3,072 | | Sales and production of LED devices | 26,539 | (6,936) | | All other segments | 3,936 | (1,169) | | Total | 300,562 | (20,727) | Information on Operating Segment Assets (as of June 30, 2025) | Segment | Segment Assets (RMB thousands) | | :--- | :--- | | Tourism development | 923,126 | | Investment holding | 4,025,529 | | Trading of metallic products | 163,312 | | Sales and production of LED devices | 72,189 | | All other segments | 21,103 | | Total Segment Assets | 5,205,259 | - China (excluding Hong Kong) contributed the vast majority of revenue and non-current assets [50] - Customer A (metal product trading segment) contributed RMB 190,238 thousand to total revenue in the first half of 2025, making it a major customer [52] Note 6: Finance Costs, Net For H1 2025, net finance costs were RMB 19,896 thousand, a decrease from the prior period, primarily comprising interest on bank and other borrowings and foreign exchange losses Finance Costs, Net | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on bank, other borrowings and lease liabilities | 19,181 | 22,855 | | Net foreign exchange losses | 715 | 590 | | Total | 19,896 | 23,445 | Note 7: Income Tax (Credit)/Expense For H1 2025, the company recorded an income tax credit of RMB 21,644 thousand, mainly due to over-provision in prior years in China, contrasting with an income tax expense in the prior period Income Tax (Credit)/Expense | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax – China | 1,118 | 2,696 | | Current tax – United States | 2 | 2 | | Over-provision in prior years – China | (22,217) | – | | Deferred tax | (547) | (571) | | Total | (21,644) | 2,127 | - The corporate income tax rate for Chinese subsidiaries is typically 25% [57] Note 8: Loss for the Period For H1 2025, the loss for the period was after deducting amortization of other intangible assets of RMB 6,766 thousand and depreciation of RMB 15,068 thousand Items Deducted from Loss for the Period | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Amortisation of other intangible assets | 6,766 | 6,796 | | Depreciation | 15,068 | 14,645 | Note 9: Loss Per Share For H1 2025, basic and diluted loss per share was RMB 1.87 cents, a significant increase from RMB 0.40 cents in the prior period, mainly due to the increased loss attributable to owners of the company - Loss attributable to owners of the company was RMB 28,372 thousand (2024: RMB 6,049 thousand) [60] - Basic and diluted loss per share was RMB 1.87 cents (2024: RMB 0.40 cents) [13][60] - The weighted average number of ordinary shares outstanding was 1,514,464,000 shares, consistent with the prior period [60] Note 10: Dividend The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the first half of 2025 (2024: nil) [61] Note 11: Property, Plant and Equipment During the period, the company made additions to property, plant and equipment of approximately RMB 5,898 thousand and disposed of property, plant and equipment with a net book value of approximately nil - Additions to property, plant and equipment amounted to approximately RMB 5,898 thousand during the period [62] - Disposal of property, plant and equipment with a net book value of approximately nil [62] Note 12: Trade and Other Receivables As of June 30, 2025, total trade and other receivables were RMB 972,507 thousand, an increase from 2024 year-end, with other receivables constituting a larger proportion, and the company maintains strict control over overdue amounts Trade and Other Receivables | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables and bills | 168,278 | 168,602 | | Loans and interest receivables | 14,170 | 1,057 | | Other receivables (net of allowance for doubtful debts) | 762,967 | 757,239 | | Prepayments | 38,003 | 2,077 | | Total | 972,507 | 938,976 | - Trade receivables aging analysis shows that amounts less than 3 months old account for the highest proportion, at RMB 135,029 thousand [72] - The company's credit period is generally 3 months, and a credit control department is in place to mitigate credit risk [69] Note 13: Trade and Other Payables As of June 30, 2025, total trade and other payables were RMB 315,823 thousand, a decrease from 2024 year-end, primarily due to a reduction in accrued expenses and other payables Trade and Other Payables | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 104,999 | 107,384 | | Contract liabilities | 2,024 | 1,236 | | Accrued expenses and other payables | 169,134 | 219,538 | | Dividends payable | 21,194 | 21,313 | | Salaries and staff welfare payable | 12,221 | 11,439 | | Total | 315,823 | 370,031 | - Trade payables aging analysis shows amounts from 0 to 90 days are RMB 22,995 thousand, and amounts over one year are RMB 60,558 thousand [77] Note 14: Share Capital As of June 30, 2025, total registered, issued, and fully paid share capital was 1,514,464 thousand shares, comprising 700,000 thousand unlisted shares and 814,464 thousand H shares, each with a par value of RMB 0.10 Share Capital | Share Type | Number of Shares ('000) | Amount (RMB thousands) | | :--- | :--- | :--- | | Unlisted shares | 700,000 | 70,000 | | H shares | 814,464 | 81,446 | | Total | 1,514,464 | 151,446 | Note 15: Material Related Party Transactions The company has receivables and payables with related parties, and remuneration for key management personnel is disclosed Balances with Related Parties | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Amounts due from associates | 460 | 390 | | Amounts due from shareholders | 306 | 293 | | Amounts due to associates | 74 | 2,794 | | Amounts due to related companies controlled by Peking University | 5,732 | 5,882 | - Total remuneration for key management personnel was RMB 1,983 thousand (2024: RMB 2,378 thousand) [83] Note 16: Financial Guarantee As of June 30, 2025, the company provided a financial guarantee of RMB 100 million for bank facilities granted to an associate, with directors deeming the likelihood of recourse claims to be low - The company provided a financial guarantee of RMB 100 million for bank facilities granted to an associate [84][85] - Directors believe the likelihood of recourse claims under the guarantee is low [85] Note 17: Capital Commitments As of June 30, 2025, the company's contracted but unprovided capital commitments primarily included property, plant and equipment and committed capital contributions to an associate Capital Commitments | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Property, plant and equipment | 98,192 | 69,270 | | Committed capital contributions to an associate | 3,478 | 3,478 | Management Discussion and Analysis This section reviews the group's business performance and future strategies, analyzing its financial results, position, and key operational drivers Business Review The group's diversified businesses include tourism development, investment holding, LED device manufacturing, metal product trading, and wine; tourism benefited from good weather, investment holding involved share disposal and arbitration, LED business strengthened with new shareholders, metal trading volume increased, and vocational education expansion is planned Tourism Development Tourism operations in Hunan Nanyue District provide shuttle bus services, property management, and tourism facilities; in H1 2025, Hengshan scenic area visitor numbers increased by approximately 19% year-on-year, with revenue up 41.7%; the company plans to expand into Gansu Diebu County's Zaga Na scenic area with a joint venture for sightseeing rail and bus projects - In the first half of 2025, visitor and pilgrim numbers at Hengshan scenic area increased by approximately 19% year-on-year [91][94] - The company plans to collaborate with a third party to establish a joint venture in Zaga Na scenic area, Diebu County, Gansu, to develop and operate sightseeing rail and bus projects, expanding tourism investment and revenue sources [92][95] Investment Holding Investment holding includes investments in private equity funds, semiconductor materials, display device companies, and Beining Fire Protection; the company disposed of 20 million Beining Fire Protection shares and is in arbitration with Mr. Cai regarding a share transfer agreement termination, with a final ruling expected in September - Investment holding business primarily includes investments in private equity funds, semiconductor materials and display device companies, and Beining Fire Protection [96][98] - The company disposed of 20,000,000 Beining Fire Protection shares under the disposal mandate, generating net proceeds of approximately RMB 232.1 million, used to repay bank borrowings [110][112] - The company is in arbitration with Mr. Cai regarding the termination of the Beining Fire Protection share transfer agreement; a partial award requires Mr. Cai to return 70,044,000 Beining Fire Protection shares and the company to return RMB 220,369,200 of the consideration paid, with a final ruling expected in September 2025 [101][104][105][107] - As of the announcement date, the group holds 186,569,363 Beining Fire Protection shares, representing approximately 21.4% equity interest [113][115] Sales and Production of LED Devices The LED device business, primarily through non-wholly owned subsidiary Guangdong Liuming, focuses on R&D, production, and sales of high-end ceramic high-power LED devices and modules for special light sources; the company introduced new shareholders who injected RMB 50,630,000 into Guangdong Liuming to foster its growth and development - The LED device business focuses on R&D, production, and sales of high-end ceramic high-power LED devices and modules, including products for automotive lighting, mobile lighting, and color light series [114][116] - The company introduced new shareholders who injected RMB 50,630,000 into Guangdong Liuming; upon completion, the group's effective equity interest in Guangdong Liuming will decrease from 94% to approximately 62.98%, but it will remain a non-wholly owned subsidiary [117][121] Trading of Metallic Products During the period, the group was engaged in the sale and procurement of metallic products in China - The group is engaged in the sale and procurement of metallic products in China [119][122] Other Businesses Other businesses include operating a winery in Virginia, USA, and plans to acquire a 70% equity interest in Beijing Qingniao Vocational Education Technology Development Co., Ltd. to expand into vocational education - The group operates a winery in Virginia, USA, producing and selling wine and related products [120][123] - The company plans to acquire a 70% equity interest in Beijing Qingniao Vocational Education Technology Development Co., Ltd. for a consideration of RMB 13,054,150 to diversify into the vocational education sector [124][126] Outlook Global economic growth is expected to be sluggish in H2 2025, posing challenges of weakened consumption and reduced demand; the group will maintain profitability through cost control, operational efficiency, and new client/product expansion, while prudently evaluating investment opportunities for portfolio diversification and capital appreciation - Global economic growth is expected to be sluggish in the second half of 2025, posing challenges of weakened local consumer spending and reduced demand for products and services [125][127] - The group will implement measures including close monitoring and control of costs, enhancing operational efficiency, and expanding new clients and product portfolios to maintain profitability and competitive advantage [125][127] - The group will continue to prudently explore and evaluate potential investment opportunities to achieve a balanced and diversified investment portfolio, supporting capital appreciation [128][131][172] Financial Review This section analyzes the group's revenue and profit performance across business segments, the impact of non-recurring losses on overall results, and key financial indicators including financial position, liquidity, capital structure, significant investments, contingent liabilities, foreign exchange risk, and staff costs Tourism Development (Financial) Tourism revenue increased by 41.7% to RMB 79.8 million, benefiting from favorable weather in H1 2025; however, the group recorded a loss of approximately RMB 24.0 million due to a cashier's alleged misappropriation of approximately RMB 25.1 million, prompting a forensic investigation and internal control review - Tourism development business revenue was approximately RMB 79.8 million, an increase of 41.7% year-on-year [129][132] - A cashier allegedly misappropriated approximately RMB 25.1 million, resulting in a loss of approximately RMB 24.0 million for the group [130][133][155][159] - The company has engaged external professionals to conduct a forensic investigation and review of internal control systems to prevent similar incidents [134][138] Investment Holding (Financial) Investment holding segment's total assets decreased by 5.7% to RMB 4,025.5 million, mainly due to the disposal of 20,000,000 Beining Fire Protection shares; the group recorded a loss of approximately RMB 22.1 million from partial disposal of an associate - Investment holding business segment's total assets decreased by 5.7% to approximately RMB 4,025.5 million [135][139] - The group recorded a loss of approximately RMB 22.1 million due to the partial disposal of associate Beining Fire Protection [135][139][145][150][155][159] Sales and Production of LED Devices (Financial) LED device business revenue was approximately RMB 26.5 million, representing a 3.5% year-on-year increase - LED device business revenue was approximately RMB 26.5 million, an increase of 3.5% year-on-year [136][140] Trading of Metallic Products (Financial) Metallic product trading revenue was approximately RMB 190.2 million, a 48.0% year-on-year increase, primarily due to increased trading volume; gross profit margin decreased to 1.5%, affected by market competition and price fluctuations - Metallic product trading business revenue was approximately RMB 190.2 million, an increase of 48.0% year-on-year [137][141] - Gross profit margin was 1.5% (2024: 2.1%), with the decrease attributed to intense market competition and price fluctuations of metallic products [137][141] Other Businesses (Financial) Winery business revenue was approximately RMB 3.9 million, remaining largely stable year-on-year - Winery business revenue was approximately RMB 3.9 million, largely stable year-on-year [142][147] Revenue and Gross Profit Total group revenue was approximately RMB 300.6 million, a 39.9% year-on-year increase; gross profit was approximately RMB 47.7 million, a 49.9% year-on-year increase, primarily driven by improved tourism business and increased metallic product trading volume - Total revenue was approximately RMB 300.6 million, an increase of 39.9% year-on-year [143][148] - Gross profit was approximately RMB 47.7 million, an increase of 49.9% year-on-year [143][148] - Revenue and gross profit growth were primarily due to improved tourism business and increased metallic product trading volume [143][148] Loss on Disposal of Joint Ventures The group recorded a loss of approximately RMB 16.1 million from the dissolution of an immaterial joint venture, primarily reflecting the reclassification of negative exchange reserves - A loss of approximately RMB 16.1 million was recorded from the dissolution of an immaterial joint venture [144][149][155][159] - The loss primarily reflects the reclassification of negative exchange reserves of approximately RMB 16.1 million to profit or loss [144][149] Loss on Partial Disposal of an Associate The group recorded a loss of approximately RMB 22.1 million from the partial disposal of associate Beining Fire Protection under the disposal mandate - A loss of approximately RMB 22.1 million was recorded from the partial disposal of associate Beining Fire Protection [145][150][155][159] Finance Costs, Net Net finance costs were approximately RMB 19.9 million, a decrease from RMB 23.4 million in the prior period, primarily comprising interest on bank and other borrowings, lease liabilities, and net foreign exchange losses - Net finance costs were approximately RMB 19.9 million (2024: RMB 23.4 million) [146][151] - Primarily includes interest on bank and other borrowings, interest on lease liabilities, and net foreign exchange losses [146][151] Share of Profit of Associates The group's share of profit of associates was approximately RMB 30.2 million, a 32.3% year-on-year increase, mainly due to the associates' weaker financial performance in the prior period - Share of profit of associates was approximately RMB 30.2 million, an increase of 32.3% year-on-year [152][156] - The increase was mainly due to the relatively unfavorable financial performance of associates in the prior period of 2024 [152][156] Share of Loss of Joint Ventures The group's share of loss of joint ventures was approximately RMB 1.0 million, an increase from RMB 54 thousand in the prior period - Share of loss of joint ventures was approximately RMB 1.0 million (2024: RMB 54 thousand) [153][157] Income Tax Credit/Expense The group recorded an income tax credit of approximately RMB 21.6 million, primarily comprising net China corporate income tax credit and deferred tax credit - Income tax credit was approximately RMB 21.6 million (2024: expense of RMB 2.2 million) [154][158] - Primarily includes net China corporate income tax credit of approximately RMB 21.1 million and deferred tax credit of approximately RMB 0.5 million [154][158] Loss Attributable to the Owners of the Company Loss attributable to owners of the company was approximately RMB 28.4 million, a 369.0% year-on-year increase, primarily due to several non-recurring losses including the alleged misappropriation incident, partial disposal of an associate, and dissolution of a joint venture - Loss attributable to owners of the company was approximately RMB 28.4 million, an increase of 369.0% year-on-year [155][159] - The increased loss was primarily due to non-recurring losses including the alleged misappropriation incident (RMB 24.0 million), partial disposal of associate Beining Fire Protection (RMB 22.1 million), and dissolution of an immaterial joint venture (RMB 16.1 million) [155][159] Financial Position As of June 30, 2025, the group's current ratio was 1.35 (December 31, 2024: 1.06) and gearing ratio was 22.8% (December 31, 2024: 25.0%); the increase in current ratio and decrease in gearing ratio were mainly due to reduced bank and other borrowings - Current ratio was 1.35 (December 31, 2024: 1.06) [160][164] - Gearing ratio was 22.8% (December 31, 2024: 25.0%) [160][164][167][170] - The increase in current ratio and decrease in gearing ratio were primarily due to a reduction in bank and other borrowings [160][164] Material Acquisitions and Disposals of Subsidiaries and Affiliated Companies For H1 2025, the group did not undertake any other material acquisitions and disposals requiring disclosure, apart from those already disclosed - Apart from disclosed matters, there were no other material acquisitions and disposals during the period [161][165] Liquidity, Financial Resources and Capital Structure The group primarily finances operations through internal financial resources and corporate borrowings; as of June 30, 2025, cash and cash equivalents were approximately RMB 183.0 million, with total outstanding borrowings of approximately RMB 901.4 million, mostly denominated in RMB and bearing fixed or floating interest rates - Primary sources of working capital are internal financial resources and corporate borrowings [162][166] - As of June 30, 2025, cash and cash equivalents were approximately RMB 183.0 million [162][166] - Total outstanding borrowings were approximately RMB 901.4 million, including secured/unsecured, mortgaged/unmortgaged bank and other borrowings [163][166] - Borrowings are primarily denominated in RMB, with annual interest rates ranging from zero to 5.4% [163][166] Significant Investments Held As of June 30, 2025, the group held financial assets at fair value through other comprehensive income and fair value through profit or loss totaling approximately RMB 758.7 million, representing 14.2% of total assets, primarily including a 13.7% equity interest in Shanghai Xianyao Display Technology Co., Ltd.; the investment strategy aims to diversify assets and businesses to mitigate risks, seize market opportunities, and broaden revenue streams - Held financial assets at fair value through other comprehensive income and fair value through profit or loss totaling approximately RMB 758.7 million, representing 14.2% of total assets [168][171] - Primarily includes a 13.7% equity interest in Shanghai Xianyao Display Technology Co., Ltd., with a fair value of approximately RMB 712.8 million [168][171] - The investment strategy is to diversify assets and businesses, focusing on tourism and leisure, new materials, semiconductor products, and high-tech enterprises to enhance competitive position and broaden revenue sources [169][172] Future Plans for Material Investments or Capital Assets As of June 30, 2025, the group had no other material investment plans apart from those already disclosed - As of June 30, 2025, the group had no other material investment plans apart from those already disclosed [173][177] Contingent Liabilities As of June 30, 2025, the group had contingent liabilities of approximately RMB 100 million for bank facilities granted to an associate - The group had contingent liabilities of approximately RMB 100 million for bank facilities granted to an associate [174][178] Foreign Exchange Exposure The group faces some foreign currency risk, but it is limited as most business activities, assets, and liabilities are denominated in USD, RMB, and HKD, with automatic matching of turnover and production costs; the group will continue to monitor and mitigate foreign currency risk - The group faces some foreign currency risk, primarily involving USD, RMB, and HKD [175][179] - Currency risk is limited due to automatic matching of turnover and production costs [175][179] - The group will continue to monitor and take measures to mitigate foreign currency risk [175][179] Charge on Assets As of June 30, 2025, certain fixed assets, investment properties, and an equity interest in an associate were pledged as collateral for bank and other borrowings - As of June 30, 2025, fixed assets with a carrying value of approximately RMB 197.7 million, investment properties of approximately RMB 333.6 million, and an equity interest in an associate were pledged as collateral for bank and other borrowings [176][180] Employees and Remuneration Policy As of the reporting period end, the group had 740 employees, a 23.3% year-on-year increase; the group adheres to labor laws, provides competitive compensation and benefits, prioritizes workplace safety, and total staff costs of approximately RMB 38.3 million are consistent with employee expansion - As of the end of the reporting period, the group had a total of 740 employees, an increase of 23.3% year-on-year [181][185] - The group provides competitive compensation and benefits, including medical and travel insurance, and makes timely contributions to retirement and MPF schemes [181][185] - Total staff costs were approximately RMB 38.3 million (2024: RMB 32.9 million), consistent with the expansion in employee numbers [183][186] Other Information This section discloses interests and short positions of directors, supervisors, chief executives, and substantial shareholders in the company's shares and underlying shares, confirms no rights to acquire shares for directors/supervisors, no competing interests, compliance with corporate governance practices, no purchase/redemption/sale of listed securities during the period, and directors' adherence to the securities dealing code; the audit committee has reviewed this interim report Directors', Supervisors' and Chief Executives' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, Supervisor Ms. Zhou Min held 205,414,000 unlisted shares as a trust beneficiary, representing 13.56% of total share capital; Executive Director Mr. Liu Ziyi beneficially owned 3,000,000 H shares, representing 0.20% of total share capital Long Positions in Ordinary Shares and Underlying Shares of the Company | Name | Capacity | Interest in Unlisted Shares | Interest in H Shares | Approximate Percentage of Total Issued Shares of the Company | | :--- | :--- | :--- | :--- | :--- | | Ms. Zhou Min (Supervisor) | Beneficiary of a trust | 205,414,000 | – | 13.56% | | Mr. Liu Ziyi (Executive Director) | Beneficial owner | – | 3,000,000 | 0.20% | Directors' and Supervisors' Rights to Acquire Shares During the period, no directors, supervisors, or their spouses/minor children were granted or exercised any rights to acquire company shares, nor did the company arrange for them to obtain such rights in other corporate entities - During the period, no directors, supervisors, or their spouses or minor children were granted or exercised any rights to acquire shares of the company [193][195] - Neither the company, its holding company, nor any of its subsidiaries or fellow subsidiaries arranged for directors and supervisors to acquire such rights in other corporate entities [193][195] Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, substantial shareholders and their controlled corporations, including Peking University, Cai Yiwen, Zhai Yong, Heng Huat Investments Limited, Mongolia Energy Limited, and Huang Taomei, held significant interests in the company's issued share capital Long Positions in Shares and Underlying Shares of Substantial Shareholders and Other Persons | Shareholder Name | Capacity | Interest in Unlisted Shares | Interest in H Shares | Approximate Percentage of Total Issued Shares of the Company | | :--- | :--- | :--- | :--- | :--- | | Peking University | Interest of controlled corporation | 85,000,000 | – | 5.61% | | Cai Yiwen | Interest of controlled corporation | 115,000,000 | – | 7.59% | | Zhai Yong | Interest of controlled corporation | 130,000,000 | – | 8.58% | | Heng Huat Investments Limited | Interest of controlled corporation | 205,414,000 | – | 13.56% | | Mongolia Energy Limited | Interest of controlled corporation | 84,586,000 | – | 5.58% | | Huang Taomei | Interest of controlled corporation | – | 126,214,000 | 8.33% | Competing Interests As of June 30, 2025, no directors, supervisors, or their associates held interests in businesses that compete or may compete with the group's business, nor were there any conflicts of interest - No directors, supervisors, or their associates held interests in businesses that compete or may compete with the group's business [203][207] - There were no conflicts of interest [203][207] Corporate Governance Practices The Board believes the company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules for the six months ended June 30, 2025 - The company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules [204][208] Purchase, Redemption or Sale of the Company's Listed Securities For H1 2025, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities - During the period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities [205][209] Code of Conduct Regarding Securities Transactions by Directors The company has adopted a code of conduct for directors' securities transactions, and all directors complied with this code and the required standards of dealing for the six months ended June 30, 2025 - The company has adopted a code of conduct for directors' securities transactions that is no less exacting than required by the GEM Listing Rules [210][215] - All directors complied with the code of conduct and the required standards of dealing during the period [210][215] Audit Committee The Audit Committee, comprising three independent non-executive directors and chaired by Mr. Tang Xuan, convened to review and approve the group's interim report for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors, with Mr. Tang Xuan as Chairman [212][216] - The committee has reviewed and approved the content of the group's interim report for the six months ended June 30, 2025 [212][216]