昊海生物科技(06826) - 2025 - 中期财报

Company Information This section provides an overview of the company's governance structure, board composition, and fundamental listing details Board of Directors and Committees The company's sixth board of directors, comprising executive, non-executive, and independent non-executive members, operates with established committees to ensure robust corporate governance - Board members include Dr. Hou Yongtai (Chairman), Mr. Wu Jianying (General Manager), Ms. Chen Yiyi, Mr. Tang Minjie (CFO) as executive directors; Ms. You Jie, Mr. Huang Ming, Mr. Wei Changzheng (Employee Representative) as non-executive directors; and Mr. Shen Hongbo, Mr. Jiang Zhihong, Mr. Su Zhi, Mr. Yang Yushe as independent non-executive directors[4] - The company has an Audit Committee (Chairman: Mr. Shen Hongbo), Remuneration and Appraisal Committee (Chairman: Mr. Su Zhi), Nomination Committee (Chairman: Mr. Jiang Zhihong), and Strategy and Sustainable Development Committee (Chairman: Ms. You Jie)[4] Company Basic Information The company maintains headquarters in Shanghai and a Hong Kong office, with its H-shares and A-shares listed on the HKEX and SSE STAR Market respectively - The company's headquarters and principal place of business in China are located at 23rd Floor, Guangdian Building, 1386 Hongqiao Road, Changning District, Shanghai, China; the principal place of business in Hong Kong is at Room 1901, 19th Floor, Lee Garden One, 33 Hysan Road, Causeway Bay, Hong Kong[5] Company Share Listing Information (As of June 30, 2025) | Indicator | H-shares | A-shares | | :--- | :--- | :--- | | Stock Code | 6826 | 688366 | | Listing Venue | Main Board of The Stock Exchange of Hong Kong Limited | STAR Market of Shanghai Stock Exchange | | Shares Issued | 39,141,840 shares | 194,051,855 shares | | Par Value | RMB 1.00 per share | RMB 1.00 per share | - The company's main banks are Industrial and Commercial Bank of China Limited (Shanghai Xinhua Road Branch) and Bank of Shanghai Co., Ltd. (Shanghai Changning District Branch); investors can inquire via hotline (86) 021-52293555, and the company website is **www.3healthcare.com**[5](index=5&type=chunk) Interim Results Summary For H1 2025, the Group experienced a decline in operating revenue, profit attributable to ordinary equity holders, and basic earnings per share, while maintaining stable interim dividends Interim Results Summary for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,292.64 | 1,397.11 | -7.48% | | R&D Expenses | 98.40 | 125.40 | -21.53% | | R&D Expenses as % of Revenue | 7.61% | 8.98% | -1.37pp | | Profit Attributable to Ordinary Equity Holders | 211.07 | 235.28 | -10.29% | | Basic Earnings Per Share | RMB 0.91 | RMB 1.01 | -9.90% | | Interim Dividend (per share, tax inclusive) | RMB 0.40 | RMB 0.40 | 0% | Management Discussion and Analysis This section analyzes the Group's operational performance, future development strategies, and financial results for the reporting period Business Overview In H1 2025, the Group sustained steady development across its core business segments, despite revenue and net profit declines influenced by tax adjustments and centralized procurement - The Group maintained steady development in its four core business segments: medical aesthetics, ophthalmology, orthopedics, and anti-adhesion & hemostasis, by continuously deepening product innovation, market expansion, and lean management[8] Key Financial Overview for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,292.64 | 1,397.11 | -7.48% | | R&D Expenses | 98.40 | 125.40 | -21.53% | | R&D Expenses as % of Revenue | 7.61% | 8.98% | -1.37pp | | Net Profit Attributable to Shareholders of Listed Company | 211.07 | 235.28 | -10.29% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 204.21 | 230.35 | -11.35% | | Total Assets (Period-end) | 7,185.80 | 7,121.70 (2024 year-end) | +0.90% | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 5,611.60 | 5,575.26 (2024 year-end) | +0.65% | | Overall Gross Profit Margin | 70.11% | 70.38% | -0.27pp | - The decrease in operating revenue was mainly due to the adjustment of VAT rate for subsidiary Shanghai Qisheng from 3% to 13%, leading to a decrease in sales unit price and revenue after tax for related products[9] - The decrease in R&D expenses was primarily due to several core R&D projects entering late-stage clinical trials or registration review, resulting in a phased decrease in direct R&D labor costs and direct material expenses for trials[13] Discussion and Analysis of Operating Performance by Product Line The Group's four core product lines exhibited varied performance in H1 2025, with some facing market challenges and others achieving significant growth H1 2025 Revenue Details by Product Line | Product Line | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | YoY Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Medical Aesthetics and Wound Care Products | 573,270 | 44.35 | 631,817 | 45.22 | -9.27% | | Ophthalmology Products | 366,148 | 28.33 | 449,659 | 32.18 | -18.57% | | Orthopedic Products | 225,948 | 17.48 | 231,822 | 16.59 | -2.53% | | Anti-adhesion and Hemostasis Products | 109,976 | 8.51 | 68,874 | 4.93 | 59.68% | | Other Products | 17,294 | 1.33 | 14,940 | 1.08 | 15.76% | | Total | 1,292,636 | 100.00 | 1,397,112 | 100.00 | -7.48% | Medical Aesthetics and Wound Care Products Revenue for medical aesthetics and wound care products decreased, primarily due to lower demand for entry-level hyaluronic acid, though high-end products and domestic radiofrequency equipment showed resilience - The Group has formed a business matrix of four categories in medical aesthetics and wound care: hyaluronic acid, epidermal repair gene engineering preparations, radiofrequency and laser equipment, to meet customers' comprehensive medical aesthetic consumption needs[15] Medical Aesthetics and Wound Care Product Line Revenue Details | Item | Jan-Jun 2025 (RMB thousand) | Share (%) | Jan-Jun 2024 (RMB thousand) | Share (%) | YoY Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Hyaluronic Acid | 345,822 | 60.32 | 415,479 | 65.76 | -16.77 | | Radiofrequency and Laser Equipment | 135,418 | 23.63 | 135,455 | 21.44 | -0.03 | | Human Epidermal Growth Factor | 92,030 | 16.05 | 80,883 | 12.80 | 13.78 | | Total | 573,270 | 100.00 | 631,817 | 100.00 | -9.27 | - Hyaluronic acid product revenue decreased by 16.77%, mainly due to a phased reduction in demand for mass-market entry-level first and second-generation products, but "Haimei Yuebai" performed well, and "Haimei" hyaluronic acid products continued to grow[21] - Radiofrequency and laser equipment revenue remained largely flat, with overseas markets declining by approximately RMB 16.41 million due to multiple factors, but domestic "EndyMed Pro" high-frequency skin treatment devices and Intensif treatment heads sales revenue increased by 53.15% and 76.37% respectively[23] - Human epidermal growth factor product "Kanghesu" revenue increased by 13.78%, with a market share of 26.96%, ranking second in the domestic market, and plans to expand application departments to pediatrics, oncology, and other multi-disciplinary areas[25] Ophthalmology Products Ophthalmology product revenue significantly declined due to centralized procurement and market competition, prompting the company to focus on product structure optimization and high-end R&D - The Group is the largest domestic producer of ophthalmic viscoelastic devices, with its market share growing to 51.42% in 2024, ranking first in the Chinese market for eighteen consecutive years[27] Ophthalmology Product Line Revenue Details | Item | Jan-Jun 2025 (RMB thousand) | Share (%) | Jan-Jun 2024 (RMB thousand) | Share (%) | YoY Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cataract Surgery Product Line | 164,549 | 44.94 | 230,874 | 51.35 | -28.73 | | Intraocular Lenses | 126,812 | 34.63 | 180,667 | 40.18 | -29.81 | | Ophthalmic Viscoelastic Devices | 37,737 | 10.31 | 50,207 | 11.17 | -24.84 | | Myopia Control and Refractive Correction Product Line | 184,826 | 50.48 | 200,187 | 44.52 | -7.67 | | Optometry Materials | 106,613 | 29.12 | 107,056 | 23.81 | -0.41 | | Optometry Terminal Products | 78,213 | 21.36 | 93,131 | 20.71 | -16.02 | | Other Ophthalmology Products | 16,773 | 4.58 | 18,598 | 4.13 | -9.81 | | Total | 366,148 | 100.00 | 449,659 | 100.00 | -18.57 | - Cataract product line revenue decreased by 28.73%, mainly due to a significant reduction in intraocular lens sales unit prices caused by national centralized procurement, and the implementation of DRG/DIP payment models affecting sales of ordinary spherical and aspherical intraocular lenses[29] - Myopia control and refractive correction product line revenue decreased by 7.76%, with intensified market competition for orthokeratology lenses, but sales of "MyOK" and "Tongxiang" brand orthokeratology lenses increased by 18.39% and 86.01% respectively[30][31] - Several high-end intraocular lens products (such as hydrophobic molded toric aspheric IOLs, hydrophilic aspheric multifocal IOLs, hydrophobic molded aspheric trifocal IOLs) have been approved or entered the registration application stage[13][35] - The second-generation aqueous humor permeable PRL product has entered the innovative approval channel and product registration application stage, which will provide a wider range of vision correction[37] Orthopedic Products Orthopedic product revenue saw a slight decrease, as sodium hyaluronate injections faced price reductions from centralized procurement, while medical chitin was affected by tax and sales model changes - The Group is the largest domestic producer of orthopedic intra-articular viscoelastic supplements, with its market share growing from 41.61% to 44.43% in 2024, ranking first for eleven consecutive years[39] Orthopedic Product Line Revenue Details | Item | Jan-Jun 2025 (RMB thousand) | Share (%) | Jan-Jun 2024 (RMB thousand) | Share (%) | YoY Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sodium Hyaluronate Injection | 158,616 | 70.20 | 149,217 | 64.37 | 6.30 | | Medical Chitin (for intra-articular injection) | 67,332 | 29.80 | 82,605 | 35.63 | -18.49 | | Total | 225,948 | 100.00 | 231,822 | 100.00 | -2.53 | - Sodium hyaluronate injection product sales prices decreased due to provincial volume-based procurement, but achieved steady development through expanded sales channels and outsourced processing services[43] - Medical chitin (for intra-articular injection) product revenue decreased, mainly due to the adjustment of Shanghai Qisheng's VAT rate and a shift towards a distribution-based sales model[43] Anti-adhesion and Hemostasis Products Anti-adhesion and hemostasis product revenue grew substantially, driven by successful market entry of new products and favorable centralized procurement outcomes for collagen sponge - The Group is the largest supplier of anti-adhesion materials in China, with a market share of 25.87% in 2024[44] Anti-adhesion and Hemostasis Product Line Revenue Details | Item | Jan-Jun 2025 (RMB thousand) | Share (%) | Jan-Jun 2024 (RMB thousand) | Share (%) | YoY Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Medical Chitin (for anti-adhesion) | 26,721 | 24.30 | 30,492 | 44.27 | -12.37 | | Medical Sodium Hyaluronate Gel | 25,454 | 23.15 | 27,474 | 39.89 | -7.35 | | Collagen Sponge | 13,955 | 12.68 | 10,908 | 15.84 | 27.93 | | Porcine Fibrin Sealant | 43,846 | 39.87 | – | – | N/A | | Total | 109,976 | 100.00 | 68,874 | 100.00 | 59.68 | - Medical chitin and medical sodium hyaluronate gel product revenues decreased, mainly due to control over high-value consumables and centralized procurement policies in some provinces[45] - Collagen sponge product revenue increased by 27.93%, benefiting from being selected in the "3+N" alliance centralized volume-based procurement[46] - Porcine fibrin sealant product "Kangrui Glue" achieved revenue of RMB 43.85 million and was included in the "Shanghai Biomedical 'New Excellent Medical Devices' Product Catalog" in December 2024, accelerating market access and marketing layout[46] Discussion and Analysis of Future Development The Group plans to advance its four key therapeutic areas through innovation, strategic partnerships, and M&A, aiming for market leadership and enhanced brand value Development Strategy The Group's strategy focuses on achieving domestic leadership and international recognition in biomaterials by concentrating on four rapidly growing therapeutic areas through innovation, technology, and strategic growth - The Group will continue to focus on four rapidly developing therapeutic areas: medical aesthetics and wound care, ophthalmology, orthopedics, and surgery[47] - The strategy includes emphasizing R&D innovation and achievement transformation, strengthening professional services, and maintaining technological leadership through collaboration with domestic and international R&D institutions, independent R&D, and technology introduction[47] - Through a combination of organic growth and M&A, the company will continuously expand and improve its product lines, integrate the industry chain, and strengthen its brand building to enhance brand value[47] Operating Plan The H2 2025 operating plan emphasizes internal resource integration, promoting high-end medical aesthetics, accelerating ophthalmic R&D, and strategically navigating centralized procurement policies - In H2 2025, the Group will continue to deepen internal resource allocation, strengthen the integration of acquired enterprises to maximize synergy, improve operational efficiency, develop innovative technologies, and expand market space[48] - In the medical aesthetics and wound care segment, the focus will be on building the "Haimei Series" high-end hyaluronic acid product brand image, strengthening market promotion for the new "Jiaolan Lip" indication, and accelerating clinical trials for important R&D projects such as painless cross-linked hyaluronic acid[49] - In the ophthalmology segment, several high-end intraocular lens products are expected to be approved within the year, and clinical trials and registration applications for important R&D projects such as the second-generation aqueous humor permeable PRL product and new ultra-high oxygen permeable orthokeratology lenses will continue to be promoted[50] - In the orthopedics segment, the company will continue to monitor provincial and provincial alliance centralized volume-based procurement policies and actively bid to increase market share; in the surgery segment, the focus will be on promoting the entry of collagen sponge and "Kangrui Glue" products into hospitals to increase market share[51] Financial Review This section provides a comprehensive review of the Group's H1 2025 financial performance, detailing key income statement and balance sheet items and their drivers Revenue, Costs and Gross Profit Margin Operating revenue decreased by 7.48% due to centralized procurement, a soft consumer market, and VAT rate adjustments, while the overall gross profit margin remained stable Revenue and Gross Profit Margin Overview | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,292.64 | 1,397.11 | -7.48% | | Overall Gross Profit Margin | 70.11% | 70.38% | -0.27pp | - The decrease in revenue was mainly due to: national centralized procurement policies (ophthalmology product line revenue decreased by 18.57%), a weak domestic consumer market (medical aesthetics product line revenue decreased by 9.27%), and the adjustment of VAT rate for subsidiary Shanghai Qisheng from 3% to 13%, leading to a decrease in sales unit price and revenue after tax for related products[52] - Anti-adhesion and hemostasis product line revenue grew against the trend by 59.68%, mainly benefiting from the inclusion of "Kangrui Glue" product in the "Shanghai Biomedical 'New Excellent Medical Devices' Product Catalog," accelerating market access[52] R&D Expenses R&D expenses decreased by 21.53%, primarily because several core projects transitioned to late-stage clinical trials or registration review, leading to a phased reduction in related costs R&D Expenses Overview | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | R&D Expenses | 98.40 | 125.40 | -21.53% | | R&D Expenses as % of Revenue | 7.61% | 8.98% | -1.37pp | - The decrease in R&D expenses was mainly due to several core R&D projects successively entering late-stage clinical trials or registration review during the reporting period, resulting in a phased decrease in direct R&D labor costs and direct material expenses for trials[54] Income Tax Expense Income tax expense decreased by 24.22%, resulting in a lower effective tax rate, mainly due to reduced pre-tax profit and improved performance of previously loss-making entities Income Tax Expense Overview | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 33.97 | 44.83 | -24.22% | | Effective Tax Rate | 14.41% | 17.08% | -2.67pp | - The decrease in income tax expense was mainly due to the Group's overall decrease in pre-tax profit during the reporting period, and some previously loss-making companies becoming profitable or significantly reducing losses during the reporting period[55] Performance for the Current Reporting Period Profit attributable to ordinary equity holders decreased by 10.29%, leading to lower basic earnings per share, primarily due to a reduction in gross profit from decreased operating revenue Performance Overview for the Current Reporting Period | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders | 211.07 | 235.28 | -10.29% | | Basic Earnings Per Share | RMB 0.91 | RMB 1.01 | -9.90% | - The decrease in profit was mainly due to lower gross profit resulting from decreased operating revenue[56] Liquidity and Capital Resources The Group maintained a stable current ratio of 3.73 as of June 30, 2025, despite an increase in current liabilities primarily from unpaid dividends and accrued expenses Liquidity Overview (As of June 30, 2025) | Indicator | Jun 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Current Assets | 3,702.72 | 3,658.27 | +1.22% | | Total Current Liabilities | 993.96 | 865.89 | +14.79% | | Current Ratio | 3.73 | 4.22 | Slight decrease | - The increase in current liabilities was mainly due to unpaid 2024 cash dividends, an increase in accrued expenses, and an increase in the current portion of bank and other borrowings[58] Employees and Remuneration Policy As of June 30, 2025, the Group employed 2,156 individuals, with total compensation slightly increasing under a stable remuneration policy focused on attracting and retaining talent Number of Employees by Function (As of June 30, 2025) | Function | Number | | :--- | :--- | | Production | 849 | | R&D | 371 | | Sales and Marketing | 634 | | Finance | 75 | | Administration | 227 | | Total | 2,156 | Total Employee Remuneration | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Employee Remuneration | 344.08 | 337.30 | +6.78 | - The employee remuneration policy has not undergone significant changes and is determined based on work experience, daily performance, company operating conditions, and external market competition[60] Treasury Policy The Group adheres to a centralized, principal-protected treasury policy, placing cash surpluses in short-term bank deposits and prohibiting high-risk financial product investments - The Group adopts a centralized finance and treasury policy, placing cash surpluses in banks as short-term deposits in RMB, USD, and HKD[62] - The policy is to only engage in principal-protected and prudent deposit transactions, prohibiting investment in high-risk financial products[62] Pledged Assets As of June 30, 2025, the Group had approximately RMB 0.90 million in bank deposits pledged as guarantees for performance bonds Pledged Assets | Indicator | Jun 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | | :--- | :--- | :--- | | Bank deposits pledged as performance bond guarantees | 0.90 | 0.90 | Gearing Ratio The gearing ratio increased to 18.14% as of June 30, 2025, primarily due to higher dividends payable and other payables Gearing Ratio Overview (As of June 30, 2025) | Indicator | Jun 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Liabilities | 1,303.54 | 1,204.35 | +99.19 | | Gearing Ratio | 18.14% | 16.91% | +1.23pp | - The increase in the gearing ratio was mainly due to an increase in dividends payable and other payables at the end of the reporting period[64] Cash and Cash Equivalents Cash and cash equivalents decreased by RMB 498.62 million, primarily due to significant net cash outflows from investment and financing activities Cash and Cash Equivalents Overview | Indicator | Jun 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 614.29 | 1,112.91 | -498.62 | - The decrease in cash and cash equivalents was mainly due to: continuous investment in the Shanghai Haohai Biological Technology International Pharmaceutical R&D and Industrialization project, new large-denomination bank deposits with maturities over three months of approximately RMB 430.63 million, and a cash reduction of approximately RMB 249.44 million due to share repurchases and acquisition of non-controlling interests[65] Bank Borrowings As of June 30, 2025, the Group's total interest-bearing bank borrowings were approximately RMB 393.42 million, of which approximately RMB 305.16 million will mature within one year Bank Borrowings Overview (As of June 30, 2025) | Indicator | Jun 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Interest-Bearing Bank Borrowings | 393.42 | 395.74 | | Due within one year | 305.16 | 285.96 | | Due in two to five years | 88.26 | 109.78 | Exchange Rate Fluctuation Risk The Board anticipates no severe impact from foreign currency exchange rate fluctuations on the Group, as sales and costs are primarily RMB-denominated, and no hedging was undertaken - The Group's sales, costs, and expenses are primarily denominated in RMB, with the majority in RMB[67] - The Board expects that fluctuations in foreign currency exchange rates held will not severely impact the Group in the future, and no hedging transactions were entered into during the reporting period[67] Future Plans for Major Investments and Capital Assets The Group has no other major investment or capital asset plans beyond those disclosed in this report - Except as disclosed in this report, the Group has no other major investment plans or capital asset plans as of the date of this report[68] Major Investments, Acquisitions or Disposals of Subsidiaries, Associates and Joint Ventures During the reporting period, the Group did not undertake any other major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no other major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[69] Contingent Liabilities The Group reported no significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Group had no significant contingent liabilities[70] Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's H1 2025 revenue was RMB 1,292.64 million, with profit for the period decreasing, while exchange differences and fair value changes in equity investments significantly impacted other comprehensive income Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,292,636 | 1,397,112 | | Gross Profit | 906,275 | 983,295 | | Profit Before Tax | 235,630 | 262,492 | | Income Tax Expense | (33,965) | (44,834) | | Profit for the Period | 201,665 | 217,658 | | Exchange differences arising on translation of overseas operations | 40,669 | 1,821 | | Fair value changes of equity investments designated at fair value through other comprehensive income (net of tax) | 9,479 | (22,742) | | Total Comprehensive Income for the Period | 251,813 | 196,737 | | Profit Attributable to Owners of the Parent | 211,065 | 235,283 | | Basic and Diluted Earnings Per Share Attributable to Ordinary Equity Holders of the Parent | 0.91 | 1.01 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets slightly increased, driven by property, plant and equipment and other receivables, while net current assets decreased due to higher current liabilities Interim Condensed Consolidated Statement of Financial Position (Summary) | Indicator | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 1,740,253 | 1,700,688 | | Other Intangible Assets | 543,188 | 559,880 | | Total Non-current Assets | 3,483,079 | 3,463,124 | | Current Assets | | | | Inventories | 495,704 | 490,651 | | Trade and Bills Receivables | 339,174 | 324,280 | | Prepayments, Other Receivables and Other Assets | 202,015 | 125,286 | | Cash and Bank Balances | 2,561,316 | 2,629,306 | | Total Current Assets | 3,702,717 | 3,658,268 | | Current Liabilities | | | | Trade Payables | 70,002 | 62,099 | | Other Payables and Accrued Expenses | 588,035 | 480,711 | | Interest-bearing Bank and Other Borrowings | 322,747 | 305,683 | | Total Current Liabilities | 993,957 | 865,893 | | Net Current Assets | 2,708,760 | 2,792,375 | | Total Assets Less Current Liabilities | 6,191,839 | 6,255,499 | | Non-current Liabilities | | | | Interest-bearing Bank and Other Borrowings | 117,018 | 142,744 | | Total Non-current Liabilities | 309,581 | 338,458 | | Net Assets | 5,882,258 | 5,917,041 | | Equity | | | | Equity Attributable to Ordinary Equity Holders of the Parent | 5,611,598 | 5,575,259 | | Non-controlling Interests | 270,660 | 341,782 | | Total Equity | 5,882,258 | 5,917,041 | Interim Condensed Consolidated Statement of Changes in Equity Total equity slightly decreased as of June 30, 2025, influenced by profit for the period, other comprehensive income, share repurchases, and dividend declarations Interim Condensed Consolidated Statement of Changes in Equity (Summary) | Indicator | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Equity | 5,882,258 | 5,917,041 | | Profit for the Period | 211,065 | 211,065 (Current Period) | | Total Other Comprehensive Income for the Period | 50,148 | 50,148 (Current Period) | | Repurchase of A-shares and H-shares | (82,780) | (82,780) (Current Period) | | Acquisition of Non-controlling Interests | (47,947) | (47,947) (Current Period) | | Dividends Declared | (137,240) | (137,240) (Current Period) | - Equity attributable to ordinary equity holders of the parent increased from RMB 5,575,259 thousand as of December 31, 2024, to RMB 5,611,598 thousand as of June 30, 2025[78] - Non-controlling interests decreased from RMB 341,782 thousand as of December 31, 2024, to RMB 270,660 thousand as of June 30, 2025, mainly due to the acquisition of non-controlling interests and dividends paid to non-controlling shareholders[78] Interim Condensed Consolidated Statement of Cash Flows H1 2025 saw net cash inflow from operating activities, but significant net cash outflows from investing and financing activities led to a substantial decrease in cash and cash equivalents Interim Condensed Consolidated Statement of Cash Flows (Summary) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 302,878 | 328,494 | | Net Cash Flow (Used in)/Generated from Investing Activities | (564,036) | 158,688 | | Net Cash Flow Used in Financing Activities | (249,440) | (133,055) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (510,598) | 354,127 | | Cash and Cash Equivalents at End of Period | 614,288 | 924,211 | - Net cash outflow from investing activities significantly increased, mainly due to the acquisition of property, plant and equipment, loans to third parties, purchase of financial assets at fair value through profit or loss, and new large-denomination bank deposits with maturities over three months[80] - Net cash outflow from financing activities increased, mainly due to repayment of bank and other borrowings, repurchase of A-shares and H-shares, acquisition of non-controlling interests, and dividends paid[82] Notes to the Interim Condensed Consolidated Financial Statements This section provides detailed notes on the company's and Group's information, accounting policies, segment data, revenue, expenses, and financial position 1. Company and Group Information The company, established in 2007 and dual-listed, continued share repurchases and primarily engages in manufacturing and sales of biological preparations, medical hyaluronic acid, and ophthalmic products - The company was established in China on January 24, 2007, with H-shares listed on the HKEX in 2015 and A-shares listed on the SSE STAR Market in 2019[83] - During the reporting period, the company repurchased 416,700 H-shares and 1,339,675 A-shares, none of which had been cancelled as of June 30, 2025[84][85] - The Group is primarily engaged in the manufacturing and sales of biological preparations, medical hyaluronic acid, and ophthalmic products, as well as research and development of bioengineering, manufacturing and sales of pharmaceutical and ophthalmic products, and provision of related services[85] - The ultimate controlling shareholders of the company are Mr. Jiang Wei and his spouse Ms. You Jie[86] 2. Basis of Preparation and Significant Accounting Policies The interim financial statements are prepared under IAS 34 using historical cost, consistent with annual policies, and the new IAS 21 amendment had no material impact 2.1 Basis of Preparation The interim condensed consolidated financial statements are prepared in accordance with IAS 34, using the historical cost convention and presented in RMB, to be read with the 2024 annual financial statements - The interim condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, using the historical cost convention and presented in RMB[87] - The interim condensed consolidated financial statements do not include all information and disclosures required for annual financial statements and should be read in conjunction with the Group's annual financial statements for the year ended December 31, 2024[87] 2.2 Changes in Accounting Policies and Disclosures Accounting policies for the interim financial statements align with the 2024 annual report, with no material impact from the first-time adoption of IAS 21 (Amendment) Lack of Exchangeability - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those adopted in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024[88] - The first-time adoption of IAS 21 (Amendment) Lack of Exchangeability had no impact on the interim condensed consolidated financial information, as all the Group's transaction currencies are exchangeable[89] 3. Operating Segment Information The Group operates as a single segment, focusing on biological products, medical hyaluronic acid, and intraocular lenses, with mainland China as its primary market for revenue and assets - The Group's operating activities relate to a single operating segment, which is the production and sale of biological products, medical hyaluronic acid, and intraocular lenses, R&D of bioengineering and pharmaceuticals, and provision of related services[90] 3. (a) Revenue from External Customers In H1 2025, the Group's revenue from external customers was predominantly from mainland China, with additional contributions from Europe, the US, and other regions Revenue from External Customers (by Geographical Area) | Region | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 1,075,292 | 1,179,576 | | Europe | 83,036 | 74,918 | | United States | 59,117 | 66,171 | | Other Regions and Countries | 75,191 | 76,447 | | Total | 1,292,636 | 1,397,112 | 3. (b) Non-current Assets As of June 30, 2025, the Group's non-current assets were primarily concentrated in mainland China, with distribution also in the UK, US, and other regions Non-current Assets (by Geographical Area) | Region | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 2,466,018 | 2,471,771 | | United Kingdom | 303,818 | 286,531 | | United States | 37,566 | 38,982 | | Other Regions and Countries | 110,253 | 109,979 | | Total | 2,917,655 | 2,907,263 | 3. Information about Major Customers During the reporting period, no single customer accounted for 10% or more of the Group's total revenue - During the reporting period, no single customer contributed 10% or more of the Group's revenue[93] 4. Revenue, Other Income and Gains H1 2025 customer contract revenue was RMB 1,292.64 million, mainly from medical aesthetics, recognized at the point of goods transfer, supplemented by bank interest, government grants, and fair value gains 4. (a) Disaggregated Revenue Information H1 2025 customer contract revenue totaled RMB 1,292.64 million, with medical aesthetics and wound care products being the largest contributor, primarily recognized at the point of goods transfer Revenue from Contracts with Customers (by Type of Goods Sold) | Type of Goods Sold | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Medical Aesthetics and Wound Care Products | 573,270 | 631,817 | | Ophthalmology Products | 366,148 | 449,659 | | Orthopedic Products | 225,948 | 231,822 | | Anti-adhesion and Hemostasis Products | 109,976 | 68,874 | | Other Products | 17,294 | 14,940 | | Total | 1,292,636 | 1,397,112 | Revenue Recognition Timing | Revenue Recognition Timing | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Goods transferred at a point in time | 1,292,636 | 1,396,280 | | Services transferred over time | – | 832 | | Total | 1,292,636 | 1,397,112 | 4. (b) Performance Obligations Performance obligations for product sales are fulfilled upon delivery, typically with six-month payment terms, while equipment technical services are satisfied over time - Performance obligations for product sales are fulfilled upon delivery, with payment typically due within six months after delivery, while distributors generally pay in advance[95] - Performance obligations for equipment technical services are satisfied over time as services are provided, with service contracts billed when incurred or monthly[96] 4. Other Income and Gains H1 2025 other income and gains totaled RMB 53.71 million, primarily from bank interest, government grants, fair value gains on financial assets, and net exchange differences Analysis of Other Income and Gains | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 33,091 | 36,759 | | Government grants | 7,907 | 6,963 | | Fair value gains on financial assets at fair value through profit or loss | 641 | – | | Exchange differences, net | 4,663 | – | | Others | 6,911 | 1,440 | | Total | 53,710 | 45,584 | - Government grants primarily originate from local government authorities in various regions of China for R&D activities, with no unfulfilled conditions or contingencies[97] 5. Profit Before Tax H1 2025 profit before tax was RMB 235.63 million, a decrease from the prior period, after accounting for cost of sales, depreciation, amortization, R&D, and employee benefits Major Deductions/Additions to Profit Before Tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 386,361 | 413,817 | | Depreciation of property, plant and equipment | 57,853 | 57,336 | | Depreciation of right-of-use assets | 13,181 | 11,398 | | Amortization of other intangible assets | 32,305 | 29,838 | | R&D costs | 98,401 | 125,400 | | Employee benefit expenses (wages and salaries, contributions to pension schemes) | 344,075 | 334,921 | | Bank interest income | (33,091) | (36,759) | | Impairment/(reversal of impairment) of financial assets, net | 2,166 | (473) | 6. Income Tax The company and several subsidiaries benefit from a 15% preferential income tax rate as high-tech enterprises, while others are taxed at 25% or local rates, resulting in a total tax expense of RMB 33.97 million - The company and several subsidiaries (e.g., Shanghai Qisheng, Shanghai Jianhua, Henan Yuzhou, Qingdao Huayuan, New Industry, Hangzhou Aijinglun, Leike, Henan Saimeishi) are recognized as high-tech enterprises and were subject to a preferential income tax rate of 15% during the reporting period[99][100] - Other subsidiaries in mainland China are subject to a 25% tax rate; subsidiaries in Hong Kong, the United States, the United Kingdom, France, and Israel are subject to profit tax rates of 16.5%, 21%, 25%, 25%, and 23% respectively[101] Total Income Tax Expense | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax expense | 40,054 | 53,676 | | Under/(over) provision in prior periods | 1,184 | (2,280) | | Deferred tax expense | (7,273) | (6,562) | | Total tax expense for the period | 33,965 | 44,834 | 7. Dividends The Board proposed an interim dividend of RMB 0.40 per share (tax inclusive) for the six months ended June 30, 2025, totaling RMB 91.49 million, following the declaration of the 2024 final dividend Dividend Declaration Status | Dividend Type | Amount Per Share (RMB) | Total Amount (RMB thousand) | | :--- | :--- | :--- | | Proposed Interim Dividend (H1 2025) | 0.40 | 91,493 | | Proposed Interim Dividend (H1 2024) | 0.40 | 93,192 | | Proposed Final Dividend (FY 2024) | 0.60 | N/A | - The proposed final dividend for 2024 of RMB 0.60 per ordinary share (tax inclusive) was declared by the company's shareholders at the annual general meeting on June 10, 2025[104] 8. Earnings Per Share Attributable to Ordinary Equity Holders of the Parent Basic earnings per share for H1 2025 decreased to RMB 0.91, calculated based on the weighted average number of ordinary shares outstanding, with no potential dilutive shares Earnings Per Share Overview | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent for basic and diluted EPS calculation (RMB thousand) | 211,065 | 235,283 | | Weighted average number of ordinary shares outstanding for basic and diluted EPS calculation (shares) | 232,526,846 | 233,870,378 | | Basic and Diluted Earnings Per Share (RMB) | 0.91 | 1.01 | - During the reporting period, the Group had no outstanding potential dilutive ordinary shares[106] 9. Property, Plant and Equipment The carrying amount of property, plant and equipment increased to RMB 1,740.25 million due to additions, offset by depreciation, with no assets pledged at period-end Changes in Property, Plant and Equipment | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Carrying amount at beginning of period | 1,700,688 | 1,407,916 | | Additions | 85,585 | 190,317 | | Depreciation provision for the period | (57,853) | (57,336) | | Exchange adjustments | 12,078 | 431 | | Carrying amount at end of period | 1,740,253 | 1,540,826 | - As of June 30, 2025, and December 31, 2024, no property, plant and equipment were pledged[109] 10. Other Intangible Assets The carrying amount of other intangible assets slightly decreased to RMB 543.19 million, primarily due to amortization provisions during the period Changes in Other Intangible Assets | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Carrying amount at beginning of period | 559,880 | 574,876 | | Additions | 494 | 508 | | Amortization provision for the period | (32,305) | (29,838) | | Exchange adjustments | 15,140 | (660) | | Carrying amount at end of period | 543,188 | 591,386 | 11. Equity Investments Designated at Fair Value Through Other Comprehensive Income Total equity investments designated at fair value through other comprehensive income amounted to RMB 507.18 million, comprising strategic listed and unlisted investments Equity Investments Designated at Fair Value Through Other Comprehensive Income | Investment Type | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Listed equity investments | 3,711 | 4,100 | | Unlisted equity investments | 503,470 | 492,461 | | Total | 507,181 | 496,561 | - Unlisted equity investments primarily include Shenwu No. 1 investment product, Eirion Therapeutics, Inc., Shanghai Samei Cell Technology Co., Ltd., and others[111] - The Group considers these investments to be strategic in nature and thus irrevocably designated them as fair value through other comprehensive income[111] 12. Other Non-current Assets Other non-current assets primarily consisted of prepayments for property, plant and equipment, totaling RMB 21.32 million Other Non-current Assets | Item | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments for property, plant and equipment | 21,318 | 25,340 | 13. Inventories Total inventories amounted to RMB 495.70 million, including raw materials, work-in-progress, finished goods, and merchandise, with a provision for inventory impairment Inventory Composition | Item | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials | 173,437 | 174,793 | | Work-in-progress | 78,030 | 63,849 | | Finished goods | 229,406 | 232,211 | | Merchandise | 76,421 | 67,376 | | Inventory provision | (61,590) | (47,578) | | Total | 495,704 | 490,651 | 14. Trade and Bills Receivables Total trade and bills receivables were RMB 339.17 million, mostly due within one year, with the Group maintaining strict credit risk control Trade and Bills Receivables | Item | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bills receivable | 6,069 | 8,170 | | Trade receivables | 366,686 | 347,533 | | Impairment | (33,581) | (31,423) | | Total | 339,174 | 324,280 | Ageing Analysis of Trade and Bills Receivables | Ageing | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 327,642 | 313,591 | | One to two years | 9,113 | 8,665 | | Two to three years | 2,419 | 2,024 | | Total | 339,174 | 324,280 | - The Group's trade terms with customers primarily involve credit, with a credit period generally ranging from one to twelve months, and strict control is maintained over outstanding receivables to minimize credit risk[116] 15. Prepayments, Other Receivables and Other Assets Total prepayments, other receivables, and other assets significantly increased to RMB 202.02 million, mainly driven by higher deposits and other receivables Composition of Prepayments, Other Receivables and Other Assets | Item | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments | 60,576 | 52,792 | | Input VAT to be deducted | 35,168 | 27,432 | | Deposits and other receivables | 108,432 | 46,939 | | Compensation for relocation of abandoned factory | 2,000 | 2,000 | | Impairment provision | (4,161) | (3,877) | | Total | 202,015 | 125,286 | 16. Financial Assets at Fair Value Through Profit or Loss Total financial assets at fair value through profit or loss amounted to RMB 103.61 million, primarily comprising unlisted investments and consideration receivable for acquisition of non-controlling interests Financial Assets at Fair Value Through Profit or Loss | Item | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Other unlisted investments | 77,148 | 61,386 | | Consideration receivable for acquisition of non-controlling interests | 26,460 | 26,460 | | Total | 103,608 | 87,846 | 17. Cash and Bank Balances and Pledged Deposits Cash and cash equivalents were RMB 614.29 million, with total cash and bank balances of RMB 2,562.22 million, including substantial fixed deposits with maturities over three months Analysis of Cash and Bank Balances and Pledged Deposits | Item | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and bank balances and pledged deposits | 2,562,216 | 2,630,205 | | Fixed deposits with original maturity over three months at acquisition | (1,947,028) | (1,516,401) | | Pledged fixed deposits (guarantee deposits) | (900) | (899) | | Cash and cash equivalents | 614,288 | 1,112,905 | 18. Trade Payables Total trade payables were RMB 70.00 million, with the majority due within three months Ageing Analysis of Trade Payables | Ageing | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within three months | 64,931 | 52,489 | | Three months to one year | 1,271 | 8,902 | | Over one year | 3,800 | 708 | | Total | 70,002 | 62,099 | 19. Other Payables and Accrued Expenses Total other payables and accrued expenses significantly increased to RMB 588.04 million, mainly due to higher wages, accrued expenses, and dividends payable Composition of Other Payables and Accrued Expenses | Item | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Wages and benefits payable | 90,573 | 120,763 | | Government grants received | 85,600 | 85,400 | | Contract liabilities – short-term advances from customers for goods | 125,774 | 110,691 | | Accrued expenses | 100,590 | 56,523 | | Dividends payable | 54,605 | – | | Total | 588,035 | 480,711 | - RMB 4.5 million will be paid to the original shareholders of Hangzhou Aijinglun, conditional on Hangzhou Aijinglun obtaining registration certificates for certain new products within five years after the acquisition date[124] 20. Interest-bearing Bank and Other Borrowings Total interest-bearing bank and other borrowings were RMB 439.77 million, with a significant portion classified as current liabilities, and most bank loans are unsecured Analysis of Interest-bearing Bank and Other Borrowings | Item | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Portion | | | | Lease liabilities | 16,118 | 18,595 | | Bank loans (unsecured) | 236,394 | 211,500 | | Current portion of long-term bank loans | 68,765 | 74,459 | | Current portion of long-term other loans | 1,470 | 1,129 | | Total Current Liabilities | 322,747 | 305,683 | | Non-current Portion | | | | Lease liabilities | 28,550 | 32,023 | | Bank loans (unsecured) | 88,082 | 109,082 | | Other loans | 386 | 1,639 | | Total Non-current Liabilities | 117,018 | 142,744 | | Total | 439,765 | 448,427 | Analysis of Bank Loan Repayment Terms | Repayment Term | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year or on demand | 305,159 | 285,959 | | Second year | 88,258 | 76,680 | | Third to fifth year | – | 33,100 | | Total Bank Loans | 393,417 | 395,739 | - Short-term unsecured bank loans carry annual interest rates ranging from 2.08% to 2.40%, while long-term unsecured bank loans carry annual interest rates ranging from 1.80% to 2.25%[128] 21. Share Capital The company's share capital remained unchanged, with 233,193,695 issued shares, while treasury shares increased to RMB 311.12 million due to ongoing repurchases 21. Share Capital (Details) The company's issued and fully paid ordinary share capital remained unchanged at 233,193,695 shares, each with a par value of RMB 1.00 Issued and Fully Paid Share Capital | Item | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Ordinary shares of RMB 1.00 par value each | 233,194 | 233,194 | - The company's share capital remained unchanged during the reporting period[126] 21. Treasury Shares The company repurchased H-shares and A-shares totaling RMB 82.79 million, increasing treasury shares to RMB 311.12 million for future incentive plans or cancellation - During the reporting period, the company repurchased 416,700 H-shares for a total consideration of approximately RMB 9.45 million, representing approximately 0.1787% of the total share capital[127] - During the reporting period, the company repurchased 1,339,675 A-shares for a total consideration of approximately RMB 73.34 million, representing approximately 0.5745% of the total share capital[127] Treasury Shares Overview | Item | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Treasury Shares | 311,121 | 228,341 | | Number of H-shares included | 612,600 | 195,900 | | Number of A-shares included | 3,848,095 | 2,508,420 | 22. Contingent Liabilities The Group reported no significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities[129] 23. Commitments As of June 30, 2025, the Group's contractual commitments primarily related to plant and machinery, totaling RMB 371.85 million Contractual Commitments | Item | Jun 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Plant and machinery | 371,846 | 439,126 | | Investments | – | 46,059 | | Total | 371,846 | 485,185 | 24. Related Party Transactions The Group engaged in various related party transactions, including purchases, sales, and property leases, with key management personnel compensation totaling RMB 4.24 million 24. (a) Transactions The Group conducted transactions with related parties, including purchasing production components from Haohai Technology and selling semi-finished products to Lifeline Medical Devices Related Party Transactions (Purchases and Sales) | Transaction Type | Related Party | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Purchases | Haohai Technology (Changxing) Co., Ltd. | 4,071 | 2,475 | | Sales | Lifeline Medical Devices Private Limited | 1,502 | 2,574 | - These transactions were conducted at prices agreed upon by the contracting parties with reference to market prices[131] 24. (b) Other Transactions with Related Parties The company leased properties from Shanghai Haohai Chemical Co., Ltd. and Ms. You Jie, incurring an annual rent of RMB 350,000 - During the reporting period, the company leased properties from Shanghai Haohai Chemical Co., Ltd. and Ms. You Jie, respectively, with an annual rent of RMB 350,000[132] 24. (c) Compensation of Key Management Personnel of the Group Total compensation for the Group's key management personnel amounted to RMB 4.24 million, covering short-term benefits and pension contributions Compensation of Key Management Personnel | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Short-term employee benefits | 3,713 | 3,902 | | Contributions to pension schemes | 526 | 545 | | Total compensation paid to key management personnel | 4,239 | 4,447 | 25. Fair Value and Fair Value Hierarchy The Group's financial instruments are measured using a three-level fair value hierarchy, with significant assets and liabilities measured at fair value, primarily using unobservable inputs Carrying Amounts and Fair Values of Financial Liabilities (Summary) | Item | Jun 30, 2025 Carrying Amount (RMB thousand) | Dec 31, 2024 Carrying Amount (RMB thousand) | Jun 30, 2025 Fair Value (RMB thousand) | Dec 31, 2024 Fair Value (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Interest-bearing bank and other borrowings (excluding lease liabilities) | 88,468 | 110,721 | 89,365 | 106,738 | | Financial liabilities included in other payables and accrued expenses – contingent consideration | 4,500 | 4,500 | 4,500 | 4,500 | - Management has assessed that the fair values of cash and bank balances, trade and bills receivables, prepayments, other receivables and other assets, trade and bills payables, and financial liabilities included in other payables and accrued expenses are approximate to their carrying amounts, mainly due to the short-term maturity of these instruments[135] 25. Assets Measured at Fair Value Total assets measured at fair value amounted to RMB 616.86 million, including financial assets at fair value through profit or loss and equity investments, mostly using Level 3 inputs Assets Measured at Fair Value (June 30, 2025) | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | – | – | 103,608 | 103,608 | | Trade and bills receivables | – | 6,069 | – | 6,069 | | Equity investments designated at fair value through other comprehensive income | 3,711 | 258,669 | 244,801 | 507,181 | | Total | 3,711 | 264,738 | 348,409 | 616,858 | 25. Liabilities Measured at Fair Value Total liabilities measured at fair value were RMB 4.50 million, consisting of contingent consideration within other payables and accrued expenses, measured using Level 3 inputs Liabilities Measured at Fair Value (June 30, 2025) | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Financial liabilities included in other payables and accrued expenses – contingent consideration | – | – | 4,500 | 4,500 | | Total | – | – | 4,500 | 4,500 | 25. Liabilities for Which Fair Value is Disclosed Liabilities for which fair value is disclos