双桦控股(01241) - 2025 - 中期财报

Company Information Company Basic Information Shuanghua Holdings Limited (Stock Code: 1241) is a Cayman Islands-incorporated company based in Shanghai, focusing on supply chain management and food supply business - Company Name: Shuanghua Holdings Limited, Stock Code: 1241[1][8][9] - Registered in the Cayman Islands; Headquarters in Shanghai, China; Principal place of business in Hong Kong: Kowloon Bay, Hong Kong[8] - Board members include Executive Directors Mr. Zheng Ping (Chairman and CEO), Ms. Zheng Fei, Ms. Deng Luna; Non-Executive Director Ms. Kong Xiaoling; and Independent Non-Executive Directors Mr. He Binhui, Mr. Chen Lifan, and Ms. Guo Ying[8] Management Discussion and Analysis This section details Shuanghua Holdings Limited's H1 2025 macroeconomic challenges, business performance, future strategies, financial position, liquidity, capital expenditure, and human resources Business Review In H1 2025, the Group's revenue significantly declined due to global geopolitical conflicts, US tariffs, and China's economic downturn, yet loss attributable to owners narrowed through refined management and cost control - The Group's primary businesses are supply chain management based on its own cold storage and properties, and food supply of high-end agricultural products like fruits, both domestically and internationally[10] - In H1 2025, frequent global geopolitical conflicts, increased US tariffs, and China's economic pressure led to a 0.1% year-on-year decrease in CPI and a 2.8% decrease in PPI[10] H1 2025 Sales Revenue and Loss | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-Year Change (RMB million) | | :--- | :--- | :--- | :--- | | Sales Revenue | 12.8 | 60.6 | -47.8 | | Loss Attributable to Owners of Parent | 2.1 | 3.2 | -1.1 (Loss narrowed) | H1 2025 Business Segment Revenue | Business Segment | H1 2025 Revenue (RMB million) | | :--- | :--- | | Supply Chain Management Business | 6.5 | | Food Supply Business | 6.3 | - Due to China's consumption downgrade leading to lower sales prices and unstable global trade increasing import costs, the Group reduced low-margin orders and actively pursued product diversification[11] Outlook and Strategies For H2 2025, the Group anticipates continued geopolitical and trade uncertainties, focusing on product and service diversification, one-stop supply chain solutions, and exploring innovative tech like power battery technology for robust growth - In H2 2025, the global geopolitical landscape remains complex, with uncertain US tariffs and trade policies, making it difficult to significantly boost domestic effective demand[13] - Strategy one: Promote product and service diversification, deepen one-stop supply chain solutions, and enhance warehousing capacity and turnover rate; expand protein and aquatic product lines in food supply, strengthening upstream resource integration and downstream customer network development[13][14][15] - Strategy two: Expand supply chain businesses for other goods and services through acquisitions, investments, joint ventures, or strategic alliances, actively seeking opportunities in innovative technology sectors (e.g., green energy), and planning to introduce advanced global power battery technology to develop new productive forces[13][16] Financial Review In H1 2025, the Group experienced a significant revenue and gross profit decline, but increased other income and gains, substantial trade receivables impairment reversal, reduced administrative expenses, and stable interest expenses, leading to a narrowed loss attributable to owners H1 2025 Revenue Overview | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Year-on-Year Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Revenue | 12,789 | 60,563 | -47,774 | | Gross Profit | 1,119 | 4,439 | -3,320 | | Other income, gains and losses | 3,005 | 2,090 | +915 | | Reversal of impairment loss on trade receivables | 2,676 | 112 | +2,564 | | Selling and distribution costs | 938 | 916 | +22 | | Administrative expenses | 8,257 | 8,896 | -639 | | Interest expenses | 3 | 12 | -9 | | Loss Attributable to Owners of Parent | 2,115 | 3,183 | -1,068 (Loss narrowed) | H1 2025 Revenue and Gross Profit by Business Segment | Business Segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | 2025 Gross Profit (RMB thousand) | 2024 Gross Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Supply Chain Management Business | 6,463 | 13,531 | 1,112 | 3,819 | | Food Supply Business | 6,326 | 47,032 | 7 | 620 | | Total | 12,789 | 60,563 | 1,119 | 4,439 | - The decrease in gross profit was primarily due to lower product sales prices and volumes resulting from China's consumption downgrade, coupled with increased import product costs[18] - The increase in other income, gains and losses was mainly attributable to investment income from financial assets[21] - The decrease in administrative expenses was primarily due to reduced consulting fees[24] Liquidity and Financial Resources As of June 30, 2025, the Group's net current assets and total cash and financial assets increased with no bank borrowings, while significantly reduced average inventory turnover days and increased trade receivables and payables turnover days reflect enhanced inventory management and improved terms with stakeholders Liquidity and Financial Resources Overview | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Net Current Assets | 90.3 | 89.7 | +0.6 | | Total Cash and Financial Assets | 91.1 | 88.2 | +2.9 | - The Group had no bank borrowings as of June 30, 2025, and December 31, 2024[29] Working Capital Turnover Days | Metric | H1 2025 (days) | H1 2024 (days) | Change (days) | | :--- | :--- | :--- | :--- | | Average Inventory Turnover Days | 0 | 5 | -5 | | Average Trade Receivables and Bills Receivable Turnover Days | 135 | 81 | +54 | | Average Trade Payables and Bills Payable Turnover Days | 97 | 51 | +46 | - The decrease in average inventory turnover days was mainly due to the Group's enhanced inventory turnover management[30] - The increase in average trade receivables and bills receivable turnover days was primarily due to extended credit terms for reputable customers; the increase in average trade payables and bills payable turnover days was mainly due to the Group negotiating more favorable terms with suppliers[31] Capital Expenditure, Capital Commitments and Human Resources In H1 2025, the Group's capital expenditure focused on cold storage construction, with a significant year-on-year reduction in capital commitments; as of period-end, 42 employees' remuneration and benefits were disclosed, guided by position, performance, market conditions, and statutory social security Capital Expenditure and Capital Commitments | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Capital Expenditure | 1.7 | 1.3 | +0.4 | | Capital Commitments (Period-end) | 1.0 | 7.3 | -6.3 | - Capital expenditure and capital commitments were primarily for cold storage area construction[32] Human Resources and Remuneration Benefits | Metric | June 30, 2025 | H1 2025 (RMB million) | | :--- | :--- | :--- | | Total Employees | 42 employees | - | | Remuneration (excluding Directors' and Senior Management's) | - | 2.5 | | Benefit Expenses | - | 0.4 | - Remuneration policy is based on employee responsibilities, performance, length of service, and market conditions, complying with Chinese labor laws and regulations, and providing various employee social insurance schemes and housing provident funds[32][33] Significant Investments, Acquisitions and Disposals For the six months ended June 30, 2025, the Group made no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[34] Foreign Exchange Risk Operating in China with RMB as functional currency, the Group faces transactional currency risk from HKD and USD exchange rate fluctuations against RMB, with no current hedging intent but ongoing monitoring for future measures - The Group's operations are in China, with RMB as its functional and presentation currency, primarily exposed to transactional currency risk from HKD and USD exchange rate fluctuations against RMB[35] - Currently, the Group has no intention to hedge foreign exchange fluctuation risks, but management will continue to monitor and consider appropriate hedging measures when necessary[35] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: Nil)[36] Pledge of Assets As of June 30, 2025, the Group had no pledge of assets - As of June 30, 2025, the Group had no pledge of assets (December 31, 2024: Nil)[37] Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: Nil)[38] Significant Events After Reporting Period No significant events requiring disclosure occurred after the reporting period - No significant events requiring disclosure occurred after the reporting period[39] Corporate Governance and Other Information This section discloses Shuanghua Holdings Limited's corporate governance practices, including directors' and major shareholders' interests, share option scheme, securities trading compliance, board committee structures, and adherence to the Corporate Governance Code, noting the deviation of combined Chairman and CEO roles Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures As of June 30, 2025, Executive Director Mr. Zheng Ping and his spouse, Non-Executive Director Ms. Kong Xiaoling, jointly held a 43.5% long position in the Company's issued share capital through You Shen International Group Limited Directors' and Chief Executive's Long Positions in Shares (June 30, 2025) | Director's Name | Nature of Interest | Number of Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Zheng Ping | Corporate Interest (through You Shen Group) | 282,750,000 | 43.5% | | Ms. Kong Xiaoling | Family Interest (spouse of Mr. Zheng Ping) | 282,750,000 | 43.5% | - Mr. Zheng Ping holds 100% interest in You Shen International Group Limited, and Ms. Kong Xiaoling, his spouse, is deemed to have an interest in the shares held by You Shen Group[41] Interests Discloseable Under the Securities and Futures Ordinance and Major Shareholders As of June 30, 2025, You Shen International Group Limited, Ms. Zhou Shuxian, and Mr. Xu Zonglin were major shareholders, holding 43.5%, 18.5%, and 9.1% long positions respectively, excluding directors Major Shareholders' Long Positions in Shares (June 30, 2025) | Shareholder Name | Capacity | Number of Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | You Shen Group | Beneficial Owner | 282,750,000 | 43.5% | | Ms. Zhou Shuxian | Beneficial Owner | 120,160,000 | 18.5% | | Mr. Xu Zonglin | Beneficial Owner | 59,144,000 | 9.1% | - The interest of You Shen Group is associated with the interests of Executive Director Mr. Zheng Ping and his spouse Ms. Kong Xiaoling[44] Share Option Scheme The Company adopted a new 2022 Share Option Scheme on June 30, 2022, with a ten-year validity, to reward eligible participants, capped at 10% of issued shares and 1% for any single participant within 12 months, with no options granted as of June 30, 2025 - The Company adopted a new Share Option Scheme (the 2022 Share Option Scheme) on June 30, 2022, with a ten-year validity, aiming to reward eligible participants who contribute to the Group[46][47] - The scheme limit is 10% of the total issued shares (65,000,000 shares), with a 1% limit for options granted to any single eligible participant within a 12-month period[46] - For the six months ended June 30, 2025, no share options were granted, exercised, lapsed, or cancelled, and no share options under the 2022 Share Option Scheme were issued[48] Purchase, Sale or Redemption of the Company's Listed Securities or Sale of Treasury Shares For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor held any treasury shares - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, nor held any treasury shares[49] Compliance with the Corporate Governance Code The Company adopted the Corporate Governance Code in Appendix C1 of the Listing Rules, complying with all provisions during the reporting period except for Code Provision C.2.1, where Mr. Zheng Ping holds both Chairman and CEO roles, which the Board believes facilitates swift decision-making - The Company has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules and complied with all code provisions during the reporting period[50] - Deviation from Code Provision C.2.1: The roles of Chairman and Chief Executive Officer are combined and held by Mr. Zheng Ping, which the Board believes facilitates prompt and efficient decision-making and implementation[51] Compliance with the Model Code The Company adopted the Model Code in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, with all directors confirming compliance for the six months ended June 30, 2025 - The Company has adopted the Model Code in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[52] - All Directors confirmed compliance with the required standards of the Model Code for the six months ended June 30, 2025[52] Competition and Conflicts of Interest As of the report date, no director or their associates held any direct or indirect interests in businesses competing or potentially competing with the Group, nor were there any other conflicts of interest - As of the date of this report, no Director or their associates had any direct or indirect interests in any business competing or potentially competing with the Group's business, nor were there any other conflicts of interest[53] Nomination Committee The Company established a Nomination Committee, chaired by Mr. Chen Lifan, primarily responsible for recommending suitable directors and management to the Board to enhance corporate strategy - The Company has established a Nomination Committee, chaired by Mr. Chen Lifan, with members including Mr. He Binhui and Ms. Guo Ying[54] - Its primary responsibility is to make recommendations to the Board regarding the appointment of suitable directors and management (including skills, knowledge, and experience) to enhance the Company's corporate strategy[54] Board Diversity Policy The Board adopted and revised its Diversity Policy in 2019 and 2023, respectively, aiming to enhance company performance, optimize leadership structure, and promote long-term development by considering gender, age, race, cultural and educational background, professional skills, and occupational experience, with the Nomination Committee making appointment decisions based on overall merits - The Board adopted its Diversity Policy in 2019 and revised it in 2023, aiming to enhance company performance, optimize leadership structure, improve talent quality, and promote the Group's long-term development[55] - Candidate selection will be based on a range of diversity criteria, including but not limited to gender, age, race, cultural and educational background, professional skills, occupational experience, management level, and length of service[55] Remuneration Committee The Company established a Remuneration Committee, chaired by Ms. Guo Ying, primarily responsible for recommending remuneration policies and structures for directors and senior management to the Board, and determining their specific remuneration packages - The Company has established a Remuneration Committee, chaired by Ms. Guo Ying, with members including Mr. He Binhui and Mr. Chen Lifan[56] - Its primary responsibility is to make recommendations to the Board regarding the Group's remuneration policies and structures for directors and senior management, and to determine their specific remuneration packages[56] Audit Committee The Company established an Audit Committee, comprising three independent non-executive directors with Mr. He Binhui as Chairman, responsible for reviewing financial reporting, internal controls, and risk management systems, and serving as a key liaison between the Board and auditors, deeming current systems adequate and effective - The Company has established an Audit Committee, comprising three independent non-executive directors: Mr. He Binhui (Chairman), Ms. Guo Ying, and Mr. Chen Lifan[57] - The Committee is responsible for reviewing the financial reporting process and the adequacy and effectiveness of the Group's internal control and risk management systems[57] - The Audit Committee believes that the Group's current internal control and risk management systems are adequate and effective[57] Review of Interim Results The Audit Committee reviewed the Company's unaudited consolidated results and interim report for the six months ended June 30, 2025, discussing accounting principles, practices, internal controls, and financial reporting matters with management - The Audit Committee has reviewed the Company's unaudited consolidated results and this interim report for the six months ended June 30, 2025[58] - The Committee, together with management, reviewed the accounting principles and practices adopted by the Group and discussed internal controls and financial reporting matters[58] Unaudited Interim Condensed Consolidated Financial Information This section presents Shuanghua Holdings Limited's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, including the statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, providing an overview of the Company's financial performance during the reporting period Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group reported RMB 12.8 million in revenue, RMB 1.1 million in gross profit, a loss attributable to owners of RMB 2.1 million, and a basic loss per share of 0.3 cents, reflecting significant declines in revenue and gross profit but a narrowed loss compared to the prior period Profit or Loss and Other Comprehensive Income Overview | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 12,789 | 60,563 | | Cost of sales | (11,670) | (56,124) | | Gross Profit | 1,119 | 4,439 | | Other income, gains and losses | 3,005 | 2,090 | | Reversal of impairment loss on trade receivables | 2,676 | 112 | | Selling and distribution costs | (938) | (916) | | Administrative expenses | (8,257) | (8,896) | | Interest expenses | (3) | (12) | | Loss before tax | (2,398) | (3,183) | | Income tax recoverable | 283 | – | | Total comprehensive loss for the period | (2,115) | (3,183) | | Loss Attributable to Owners of Parent | (2,115) | (3,183) | | Basic and diluted loss per share | (0.3) cents | (0.5) cents | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 279.3 million, slightly up from year-end 2024, with non-current assets primarily comprising property, plant and equipment, investment properties, and right-of-use assets; current assets saw increases in cash and cash equivalents and financial assets at fair value, while total liabilities slightly rose due to increased trade payables Financial Position Overview (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Assets | | | | Total non-current assets | 169,556 | 172,569 | | Total current assets | 109,783 | 105,750 | | Total assets | 279,339 | 278,319 | | Liabilities | | | | Total current liabilities | 19,487 | 16,069 | | Total non-current liabilities | 1,269 | 1,552 | | Total liabilities | 20,756 | 17,621 | | Equity | | | | Net assets/Total equity | 258,583 | 260,698 | - Trade receivables and bills receivable decreased from RMB 11,954 thousand at year-end 2024 to RMB 7,234 thousand[61] - Cash and cash equivalents increased from RMB 79,934 thousand at year-end 2024 to RMB 81,520 thousand[61] - Trade payables increased from RMB 3,980 thousand at year-end 2024 to RMB 8,587 thousand[61] Interim Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, equity attributable to owners of the parent decreased by RMB 2.1 million due to the loss for the period, from RMB 260.7 million as of January 1, 2025, to RMB 258.6 million Equity Changes Overview | Metric | January 1, 2025 (RMB thousand) | Loss and total comprehensive income for the period (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of Parent | 260,694 | (2,115) | 258,579 | | Non-controlling Interests | 4 | – | 4 | | Total Equity | 260,698 | (2,115) | 258,583 | Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group generated RMB 3.3 million in net cash from operating activities, had RMB 1.7 million in net cash outflow from investing activities, and RMB 3 thousand in net cash outflow from financing activities, resulting in a net increase of RMB 1.6 million in cash and cash equivalents Cash Flow Overview | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 3,269 | 28,856 | | Net cash used in investing activities | (1,680) | (1,151) | | Net cash used in financing activities | (3) | (383) | | Net increase in cash and cash equivalents | 1,586 | 27,322 | | Cash and cash equivalents at beginning of period | 79,934 | 65,349 | | Cash and cash equivalents at end of period | 81,520 | 92,671 | - Net cash generated from operating activities significantly decreased year-on-year, reflecting increased pressure on business operating cash flow[65] Notes to the Interim Condensed Consolidated Financial Statements This section provides detailed notes to the interim condensed consolidated financial statements, covering company and group information, basis of preparation, accounting standards application, operating segment information, revenue breakdown, loss before tax details, income tax, dividends, loss per share, key assets (property, plant and equipment, right-of-use assets, financial assets), receivables, cash, payables, capital commitments, related party transactions, and fair value measurement of financial instruments, offering essential context and details for understanding the financial data Company and Group Information Shuanghua Holdings Limited, incorporated in the Cayman Islands in 2010, primarily engages in supply chain management and food supply in China, with You Shen International Group Limited, incorporated in the British Virgin Islands, as its parent and ultimate holding company - The Company was incorporated in the Cayman Islands on November 19, 2010[66] - The Group is principally engaged in supply chain management business based on its own cold storage and properties, and food supply business of high-end agricultural products like fruits, both domestically and internationally[66] - The Company's parent and ultimate holding company is You Shen International Group Limited, incorporated in the British Virgin Islands[66] Basis of Preparation These interim condensed consolidated financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and Listing Rules disclosure requirements, using the historical cost convention and presented in RMB, and should be read in conjunction with the 2024 annual financial statements - These interim condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the applicable disclosure requirements of the Listing Rules[67] - The statements are prepared under the historical cost convention (except for certain financial assets) and presented in RMB[67] Application of Revised Hong Kong Financial Reporting Standards The accounting policies and calculation methods used in the interim condensed consolidated financial statements for the six months ended June 30, 2025, are consistent with the 2024 annual financial statements, except for changes due to new and revised HKFRSs effective from January 1, 2025 (e.g., amendments to HKAS 21), which had no significant impact on the Group's accounting policies - The accounting policies for the six months ended June 30, 2025, are consistent with the 2024 annual financial statements, except for the application of new and revised Hong Kong Financial Reporting Standards (HKFRSs) effective for annual periods beginning on or after January 1, 2025[68] - The revised HKFRSs (e.g., amendments to HKAS 21) had no significant impact on the Group's accounting policies[68] Operating Segment Information The Group's operations are segmented into supply chain management and food supply based on internal reports reviewed by the chief operating decision maker; in H1 2025, both segments saw significant revenue declines, with food supply's gross profit near zero, all revenue and non-current assets originated from mainland China, and three major customers contributed over 10% of total revenue during the period - The Group's operating segments include supply chain management business (based on its own cold storage and properties) and food supply business (high-end agricultural products like fruits, both domestically and internationally)[69] Operating Segment Revenue and Results (RMB thousand) | Segment | H1 2025 Revenue | H1 2024 Revenue | H1 2025 Segment Results | H1 2024 Segment Results | | :--- | :--- | :--- | :--- | :--- | | Food Supply Business | 6,326 | 47,032 | 7 | 620 | | Supply Chain Management Business | 6,463 | 13,531 | 1,112 | 3,819 | | Total | 12,789 | 60,563 | 1,119 | 4,439 | - All of the Group's revenue and non-current assets (excluding financial instruments) are located in its operating region, mainland China[72][73] Major Customer Revenue Contribution (RMB thousand) | Customer | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Customer A | 6,265 | – | | Customer B | 3,179 | – | | Customer C | 1,318 | – | | Customer D | – | 19,851 | | Customer E | – | 19,581 | | Total | 10,762 | 39,432 | Revenue, Other Income, Gains and Losses In H1 2025, the Group's total revenue was RMB 12.8 million, comprising RMB 1.8 million from supply chain management services, RMB 6.3 million from food supply, and RMB 4.6 million from rental income; total other income, gains, and losses amounted to RMB 3.0 million, primarily from bank interest income and fair value changes of financial assets Revenue Analysis (RMB thousand) | Revenue Source | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Supply Chain Management: Supply Chain Services | 1,835 | 3,124 | | Food Supply | 6,326 | 47,032 | | Supply Chain Management: Rental | 4,628 | 10,407 | | Total Revenue | 12,789 | 60,563 | Other Income, Gains and Losses Analysis (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank interest income | 1,457 | 1,392 | | Fair value changes of financial assets | 1,320 | 1,132 | | Exchange (losses)/gains, net | (172) | 275 | | Others | 400 | (709) | | Total | 3,005 | 2,090 | - Regarding revenue recognition timing, supply chain services revenue is recognized 'over time', while food supply revenue is recognized 'at a point in time'[80] Loss Before Tax For the six months ended June 30, 2025, the Group's loss before tax narrowed to RMB 2.4 million from RMB 3.2 million in the prior period, primarily influenced by cost of inventories sold, depreciation, and employee benefit expenses, with a positive impact from the reversal of impairment loss on trade receivables Components of Loss Before Tax (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 6,319 | 46,412 | | Depreciation of property, plant and equipment | 2,831 | 2,873 | | Depreciation of investment properties | 2,904 | 2,875 | | Depreciation of right-of-use assets | 277 | 644 | | Reversal of impairment loss on trade receivables | (2,676) | (112) | | Employee benefit expenses (excluding directors' and chief executive's remuneration) | 2,460 | 3,341 | - Employee benefit expenses (excluding directors' and chief executive's remuneration) decreased from RMB 3,341 thousand in H1 2024 to RMB 2,460 thousand in H1 2025[84] Income Tax For the six months ended June 30, 2025, the Group recorded income tax recoverable of approximately RMB 283 thousand, compared to nil in the prior period, with income tax paid on a profit entity basis in the respective jurisdictions of Group members Income Tax Overview (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current tax: Expense for the period | – | – | | Deferred tax | (283) | – | | Total income tax recoverable for the period | (283) | – | - The Group calculates its income tax expense for the period using the tax rate applicable to the expected total annual earnings[85] Dividends The Board does not recommend the payment of a final dividend for the year ended December 31, 2024, or an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of a final dividend for the year ended December 31, 2024, or an interim dividend for the six months ended June 30, 2025[86] Loss Per Share Attributable to Ordinary Equity Holders of the Parent For the six months ended June 30, 2025, the Group's basic loss per share narrowed to 0.3 cents from 0.5 cents in the prior period, calculated based on the loss attributable to ordinary equity holders of the parent and 650,000,000 issued ordinary shares, with no potential dilutive ordinary shares during the period - For the six months ended June 30, 2025, the basic loss per share was 0.3 cents (2024: 0.5 cents)[87] - Loss per share is calculated based on the loss attributable to ordinary equity holders of the parent for the period and the 650,000,000 ordinary shares in issue during the period[87] - The Group had no potential dilutive ordinary shares in issue during the period[87] Property, Plant and Equipment For the six months ended June 30, 2025, the Group's additions to property, plant and equipment amounted to RMB 1.7 million, primarily for cold storage area construction, with no transfers to investment properties or disposals, and all buildings remaining unpledged Cost of Additions to Property, Plant and Equipment (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Additions | 1,680 | 1,274 | - There were no transfers of property, plant and equipment to investment properties or disposals during the period[88] - As of June 30, 2025, all of the Group's buildings were unpledged[89] Right-of-use Assets For the six months ended June 30, 2025, the Group made no transfers of right-of-use assets to investment properties - For the six months ended June 30, 2025, the Group made no transfers of right-of-use assets to investment properties[90] Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, the Group's financial assets at fair value through profit or loss amounted to RMB 9.6 million, primarily consisting of listed equity investments in Bank of Shanghai, which are fair valued based on market quotations Financial Assets at Fair Value (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Listed equity investments | 9,588 | 8,268 | - The listed equity investments are equity investments in Bank of Shanghai, measured at fair value based on market quotations of the investee company[91] Trade Receivables and Bills Receivable As of June 30, 2025, the Group's net trade receivables and bills receivable decreased to RMB 7.2 million from RMB 12.0 million at year-end 2024; credit terms typically range from 30 to 90 days, extendable up to 1 year for major customers, with strict control over outstanding receivables and no significant credit concentration risk Trade Receivables and Bills Receivable (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 25,052 | 32,447 | | Bills receivable | 2 | 3 | | Impairment allowance | (17,820) | (20,496) | | Net amount | 7,234 | 11,954 | - The credit period for trade receivables generally ranges from 30 to 90 days, extendable up to 1 year for major customers[92] - The Group strives to strictly control its outstanding trade receivables and has no significant credit concentration risk[92] Ageing Analysis of Trade Receivables (net of impairment allowance, RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 3,544 | 10,181 | | 1 to 3 months | – | – | | 3 to 12 months | – | 76 | | Over 12 months | 3,688 | 1,694 | | Total | 7,232 | 11,951 | Cash and Cash Equivalents and Restricted Term Deposits As of June 30, 2025, the Group's cash and cash equivalents totaled RMB 81.5 million, with RMB 42.2 million denominated in RMB, which is not freely convertible but can be exchanged through authorized banks; bank balances are deposited with reputable banks and earn interest at floating rates Cash and Cash Equivalents (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 81,520 | 79,934 | - As of June 30, 2025, RMB-denominated cash and cash equivalents amounted to RMB 42,175 thousand[94] - RMB is not freely convertible into other currencies but can be exchanged through banks authorized to conduct foreign exchange business[94] Trade Payables As of June 30, 2025, the Group's trade payables significantly increased to RMB 8.6 million from RMB 4.0 million at year-end 2024; trade payables are interest-free with an average credit period of three months Trade Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 8,587 | 3,980 | Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 month | 5,145 | 403 | | 1 to 3 months | – | 71 | | 3 to 6 months | – | 76 | | 6 to 12 months | – | – | | Over 12 months | 3,442 | 3,430 | | Total | 8,587 | 3,980 | - Trade payables are interest-free, with an average credit period of three months[96] Capital Commitments As of June 30, 2025, the Group's contracted but unprovided capital commitments amounted to approximately RMB 1.0 million, primarily for property, plant and equipment, representing a significant decrease from RMB 7.3 million at year-end 2024 Capital Commitments (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted but not provided for: Property, plant and equipment | 1,000 | 7,262 | Related Party Transactions For the six months ended June 30, 2025, the Group paid RMB 286 thousand in office rental fees to Shanghai Automata Investment Co., Ltd., a transaction based on mutually agreed prices, with Director Ms. Kong Xiaoling having an investment in Shanghai Automata; total remuneration for key management personnel was RMB 967 thousand Related Party Transactions (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Office rental fees paid to Shanghai Automata | 286 | 383 | - Director Ms. Kong Xiaoling has an investment in Shanghai Automata Investment Co., Ltd[100] Key Management Personnel Remuneration (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Short-term employee benefits | 929 | 1,080 | | Pension scheme contributions | 38 | 92 | | Total | 967 | 1,172 | Financial Instruments by Category As of June 30, 2025, the Group's total financial assets were RMB 100.4 million, comprising RMB 9.6 million in financial assets at fair value through profit or loss and RMB 90.8 million in financial assets measured at amortized cost; total financial liabilities were RMB 10.7 million, mainly trade payables and financial liabilities included in other payables and accrued expenses Financial Assets by Category (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 9,588 | 8,268 | | Financial assets debt instruments at fair value through other comprehensive income | 2 | 3 | | Financial assets measured at amortised cost | 90,807 | 93,840 | | Total | 100,397 | 102,111 | Financial Liabilities by Category (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 8,587 | 3,980 | | Financial liabilities included in other payables and accrued expenses | 2,158 | 2,089 | | Total | 10,745 | 6,069 | Fair Value and Fair Value Hierarchy of Financial Instruments The Group's financial instruments' carrying amounts approximate their fair values, with fair value measurements categorized into a three-level hierarchy where listed equity investments are Level 1 (quoted prices in active markets) and bills receivable are Level 2 (observable inputs); no transfers between fair value hierarchy levels occurred during the period for financial assets and liabilities - All carrying amounts of the Group's financial instruments approximate their fair values[106] - The fair value of listed equity investments is calculated based on market quotations, classified as Level 1 measurement[107][108] - The fair value of bills receivable is calculated by discounting expected future cash flows, classified as Level 2 measurement[107][108] - During the period, there were no transfers between Level 1 and Level 2, nor any transfers into or out of Level 3 for fair value measurements of financial assets and financial liabilities[111] Approval of Interim Condensed Consolidated Financial Statements These interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 29, 2025 - These interim condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 29, 2025[112]