2025 中期報告 2025 年中期報告 永嘉集團控股有限公司及其附屬公司經營國際運動、時裝及戶外品牌的綜 合生產及零售業務。本集團的業務分為兩大類，即生產業務及高級時裝零 售業務，市場遍佈歐洲、美國、中國大陸及香港。 本公司股份自二零零六年九月六日起於聯交所主板上市。 目錄 | | | 11–12 獨立核數師的簡明中期財務資料審閱報告 二零二五年中期報告 永嘉集團控股有限公司 1 4 財務摘要 5–10 管理層討論及分析 13–14 合併財務狀況表 15 合併利潤表 16 合併全面收益表 17 簡明合併權益變動表 18 簡明合併現金流量表 19–36 簡明中期財務資料附註 37–43 其他資料 44 詞彙 公司資料 董事會 執行董事 李國棟先生 （主席） 黎清平先生 （副主席） 李國樑先生 （行政總裁） 王志強先生 （首席財務官） 獨立非執行董事 關啟昌先生 馬家駿先生 陳潔芬女士 公司秘書 林彩霞小姐 授權代表 李國棟先生 王志強先生 法律顧問 的近律師行 核數師 羅兵咸永道會計師事務所 執業會計師及註冊公眾利益實體核數師 董事會委員會 審核委員會 馬家駿先生 （主席） 李國棟先生 陳潔芬女士 註冊辦事處 ...

（於開曼群島註冊成立的有限公司） Stock Code 股份代號 : 2669 Interim Report 中期報告 HAPPINESS We Manage 我 們 經 營 幸福 2025 Suite 703, 7/F, Three Pacific Place, 1 Queen's Road East, Hong Kong 香港皇后大道東1號太古廣場3座7樓703室 電話 Tel : 2988 0600 傳真 Fax : 2988 0606 網頁 Website : www.copl.com.hk Interim Report 2025 中期報告 目錄 CONTENTS | 2 | 公司資料 | 68 | Corporate Information | | --- | --- | --- | --- | | 4 | 主席報告書 | 70 | Chairman's Statement | | 13 | 管理層討論及分析 | 79 | Management Discussion & | | | | | Analysis | | 28 | 簡明綜合損益表 | | | | | | 94 | Condensed Co ...

CONTENTS 目錄 | Corporate Information | 2 | | --- | --- | | 公司資料 | | | Financial Highlights | 4 | | 財務摘要 | | | Management Discussion and Analysis | 7 | | 管理層討論與分析 | | | Independent Review Report | 22 | | 獨立審閱報告 | | | Interim Condensed Consolidated Statement | 24 | | of Profit or Loss | | | 中期簡明綜合損益表 | | | Interim Condensed Consolidated Statement | 25 | | of Comprehensive Income | | | 中期簡明綜合全面收益表 | | | Interim Condensed Consolidated Statement | 26 | | --- | --- | | of Financial Position | | | 中期簡明綜合財務狀況表 | | | ...

2025 中期報告 一、本公司董事會及董事、高級管理人員保證半年度報告內容的真實性、準確性、完整性，不存在 虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 二、公司全體董事出席董事會會議。 三、本半年度報告未經審計。 無 六、前瞻性陳述的風險聲明 本報告中涉及的發展戰略、未來經營計劃等前瞻性陳述，不構成公司對投資者的實質性承諾。敬請廣大投資者 理解計劃、預測與承諾之間的差異，注意投資風險。 七、是否存在被控股股東及其他關聯方非經營性佔用資金情況 否 八、是否存在違反規定決策程序對外提供擔保的情況 否 九、是否存在半數以上董事無法保證公司所披露半年度報告的真實性、準確性和完整性 否 | 釋義 | 3 | | --- | --- | | 公司簡介和主要財務指標 | 6 | | 管理層討論與分析 | 12 | | 公司治理、環境和社會 | 44 | | 重要事項 | 60 | | 股份變動及股東情況 | 81 | | 債券相關情況 | 90 | | 財務報告 | 96 | | | 載有公司負責人、主管會計工作負責人、會計機構負責人（會計主管人員）簽名並蓋章 | | --- | --- | | | 的財 ...

09677 中期報告 2025 目錄 重要提示 2 釋義 3 公司資料 4 會計數據及財務指標概要 6 第一節 管理層討論及分析 8 第二節 股本變動及股東資料 57 第三節 董事、監事、高級管理層及僱員 64 第四節 企業管治 71 第五節 重要事項 76 第六節 中期財務資料審閱報告 78 第七節 未經審計簡明合併財務報表及 未經審計中期簡明合併財務報表附註 79 第八節 未經審計的補充財務資料 171 機構一覽表 175 重要提示 2 威海銀行股份有限公司 二零二五年中期報告 1. 本行董事會、監事會及董事、監事、高級管理層保證2025年中期報告（「本報告」）所載數據不存在任何虛假記載、誤 導性陳述或者重大遺漏，並對其內容的真實性、準確性和完整性承擔個別及連帶責任。 2. 本行第九屆董事會第六次會議於2025年8月28日召開，經會議審議，有效表決，一致通過了本報告及中期業績公 告。會議應出席董事14名，親自出席董事13名。本行監事列席了本次會議。 3. 按照國際財務報告會計準則所編製的2025年中期財務報告已由畢馬威會計師事務所根據香港審閱準則審閱。董事會 及董事會轄下的審計委員會已審閱及批准本報告。 ...

Announcement Overview [Purpose of Supplemental Announcement](index=1&type=section&id=Purpose%20of%20Supplemental%20Announcement) The company disclosed cryptocurrency transactions, acknowledging non-compliance with listing rules disclosure requirements - The company did not fully comply with listing rules regarding cryptocurrency acquisitions and disposals[3](index=3&type=chunk) - The Board noted that each of the acquisition and disposal transactions might constitute a major transaction for the company[3](index=3&type=chunk) [Implications under Listing Rules](index=1&type=section&id=Implications%20under%20Listing%20Rules) Cryptocurrency transactions are major transactions under Listing Rule 14.07, exceeding **25%** ratios, requiring reporting and shareholder approval - According to Listing Rule 14.07, one or more applicable percentage ratios for each transaction exceeded **25%**[4](index=4&type=chunk) - Each transaction constitutes a major transaction for the company, subject to reporting, announcement, circular, and shareholder approval requirements under Chapter 14 of the Listing Rules[4](index=4&type=chunk) Cryptocurrency Transaction Details [Acquisition](index=2&type=section&id=Acquisition) The company acquired approximately **5.246 million USDT** between December 11 and 18, 2024, for a total consideration of approximately **US$5.255 million** (HK$40.99 million), with the buyer identified as an independent third party - The company acquired USDT between December 11 and 18, 2024[6](index=6&type=chunk)[7](index=7&type=chunk) USDT Acquisition Details | Date | Number of USDT | Consideration (US$) | | :--------------- | :------------ | :------------ | | December 11, 2024 | 586,354.954 | 587,296.26 | | December 12, 2024 | 2,163,854.858 | 2,167,803.71 | | December 18, 2024 | 2,496,255.620 | 2,500,000.00 | | **Total** | **5,246,465.432** | **5,255,099.97** | | | | (Equivalent to approximately HK$40,990,000) | - As the acquisition was conducted in the open market, the company is unaware of the buyer's identity, but the buyer and its ultimate beneficial owner(s), if any, are independent third parties[7](index=7&type=chunk) [Disposal](index=3&type=section&id=Disposal) The company disposed of various cryptocurrencies, including Ethereum, Bitcoin, and Solana, from January 17 to March 11, 2025, for a total consideration of approximately **US$4.375 million** (HK$34.125 million), with the buyer identified as an independent third party - The company disposed of various cryptocurrencies between January 17 and March 11, 2025[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) Cryptocurrency Disposal Details | Type and Number of Cryptocurrency | Date | Consideration (USDT Amount) | Equivalent US$ | | :------------------- | :--------------- | :--------------- | :------------- | | 210.78897 Ethereum | January 17, 2025 | 750,000.00 | 750,000.00 | | 181.81818 Ethereum | February 7, 2025 | 500,000.00 | 500,000.00 | | 430.38365 Ethereum | February 4, 2025 | 1,300,000.00 | 1,300,000.00 | | **Ethereum Subtotal** | | **2,550,000.00** | **2,550,000.00** | | 2.02428 Bitcoin | February 24, 2025 | 192,499.45 | 192,499.45 | | 5.94947 Bitcoin | February 25, 2025 | 532,499.72 | 532,499.72 | | 2.75264 Bitcoin | February 28, 2025 | 250,000.00 | 250,000.00 | | 0.87553 Bitcoin | March 4, 2025 | 75,000.00 | 75,000.00 | | 0.92408 Bitcoin | March 11, 2025 | 75,000.00 | 75,000.00 | | **Bitcoin Subtotal** | | **1,124,999.17** | **1,124,999.17** | | 262.61812 Solana | February 7, 2025 | 49,947.39 | 49,947.39 | | 1,850.38277 Solana | February 16, 2025 | 349,999.78 | 349,999.78 | | 1,611.25046 Solana | February 21, 2025 | 300,000.20 | 300,000.20 | | **Solana Subtotal** | | **699,947.37** | **699,947.37** | | **Total** | | **4,374,946.54** | **4,374,946.54** | | | | | (Equivalent to approximately HK$34,124,583) | - As the disposal was conducted in the open market, the company is unaware of the buyer's identity, but the buyer and its ultimate beneficial owner(s), if any, are independent third parties[10](index=10&type=chunk) Relevant Information and Background [USDT Information](index=5&type=section&id=USDT%20Information) Tether (USDT) is a stablecoin pegged 1:1 to the US dollar, **100%** backed by Tether reserves, ensuring price stability; Binance Holdings Limited is the custodian of the Group's USDT as of the announcement date - USDT is a Tether token, offering price stability, 1:1 redeemable with matching fiat currency, and **100% backed** by Tether reserves[11](index=11&type=chunk) - As of the announcement date, Binance Holdings Limited is the custodian of the Group's USDT[12](index=12&type=chunk) [Information on the Group](index=5&type=section&id=Information%20on%20the%20Group) The company's primary business is investment holding, with the Group mainly investing in listed and unlisted equity and debt securities, unlisted funds, and cryptocurrencies - The company's principal business is investment holding activities[13](index=13&type=chunk) - The Group primarily invests in listed and unlisted equity and debt securities, unlisted investment funds, and cryptocurrencies[13](index=13&type=chunk) [Reasons for and Benefits of the Acquisitions and Disposals](index=5&type=section&id=Reasons%20for%20and%20Benefits%20of%20the%20Acquisitions%20and%20Disposals) The company acquired USDT to facilitate its cryptocurrency transactions, funded by internal resources; initially, USDT was mistakenly treated as a cash equivalent rather than an investment, leading to non-compliance with Listing Rules - The company acquired USDT to facilitate its participation in cryptocurrency transactions, involving (a) acquiring USDT to purchase other cryptocurrencies and (b) converting proceeds from cryptocurrency disposals back into USDT[14](index=14&type=chunk) - The consideration was funded by the Group's internal resources[14](index=14&type=chunk) - As of May 31, 2025, the company held approximately **961,562.76 USDT** (including accrued interest), representing about **4.38%** of its unaudited consolidated net assets[14](index=14&type=chunk) - The company inadvertently treated USDT as a cash equivalent rather than an investment, leading to non-compliance with the Listing Rules[16](index=16&type=chunk) - As of June 30, 2024, the USDT acquired by the Group represented approximately **37%** of the company's net assets[16](index=16&type=chunk) Compliance Issues and Remedial Actions [Compliance Issues](index=6&type=section&id=Compliance%20Issues) The company failed to comply with Listing Rule 21.04(3)(b) by mistakenly treating USDT as a cash equivalent rather than an investment, particularly when USDT holdings represented approximately **37%** of net assets on June 30, 2024 - The company regrets its non-compliance with the Listing Rules, having considered the acquisition, holding, and disposal of USDT not to constitute transactions undertaken by the company[16](index=16&type=chunk) - The company inadvertently treated USDT as a cash equivalent, thus, under Listing Rule 21.04(3)(b), it did not consider the acquisition to be an investment by the company[16](index=16&type=chunk) - As of June 30, 2024, the USDT acquired by the Group represented approximately **37%** of the company's net assets, exceeding the investment threshold under the Listing Rules[16](index=16&type=chunk) [Remedial Actions](index=6&type=section&id=Remedial%20Actions) The company acknowledged non-compliance and issued this announcement as an immediate remedy, planning future measures including designating accounting and investment committees to monitor cryptocurrency transactions, calculating compliance ratios, ensuring total cryptocurrency investment does not exceed **20%** of net assets, and providing relevant training to directors and senior management - As an immediate remedial action, the company has acknowledged its non-compliance with the Listing Rules regarding the

[Definitions](index=3&type=section&id=Definitions) This chapter defines key terms and abbreviations used in the report, ensuring clear understanding of the content - This section defines key terms and abbreviations used in the report, covering company entities, financial terms, regulatory bodies, and geographical references for clear understanding[4](index=4&type=chunk)[5](index=5&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) This chapter details the company's board members, committee changes, auditor, and stock code - The company's board of directors includes executive directors Mr. Lu Bo (Chairman and CEO), Ms. Lu Xiaojing, Ms. Bai Wei, Mr. Shao Song, Ms. Wu Rui, and independent non-executive directors Mr. Bao Xiaofeng, Mr. Shen Cheng, Mr. Jiang Li (appointed on May 19, 2025), and Mr. Tu Shenwei (resigned on May 19, 2025)[6](index=6&type=chunk) - Changes occurred in the company's Audit, Remuneration, and Nomination Committees, with **Mr. Jiang Li appointed Chairman of the Audit and Remuneration Committees on May 19, 2025**, and **Mr. Shen Cheng appointed Chairman of the Nomination Committee on June 30, 2025**[6](index=6&type=chunk) - The company's auditor is Zhonghui Anda Certified Public Accountants Limited, and its stock code is **1334**[6](index=6&type=chunk)[8](index=8&type=chunk) [Key Financial Highlights](index=7&type=section&id=Key%20Financial%20Highlights) This chapter summarizes the company's key financial performance for H1 2025, noting a shift from profit to net loss Key Financial Highlights for the Six Months Ended June 30 (RMB thousands) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 151,799 | 224,894 | -32.5% | | Gross Profit | 39,910 | 75,254 | -47.0% | | Gross Margin | 26.3% | 33.5% | -7.2 ppts | | (Net Loss)/Profit | (38,060) | 11,525 | Shift from profit to loss | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents) | (7.59) | 3.07 | Shift from profit to loss | - The company shifted from profit to **net loss in the first half of 2025**, primarily due to a significant decline in revenue and gross profit[10](index=10&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) This chapter reviews the company's operational performance, strategies, and financial results [Operating Review](index=8&type=section&id=Operating%20Review) This section reviews H1 2025 economic impacts on the petrochemical industry and details the company's strategic responses and operational focus - Global economic growth expectations diverged in the first half of 2025, with the IMF forecasting a **slowdown in global GDP growth to 3.3%**, constraining downstream demand in the petrochemical industry[11](index=11&type=chunk) - International crude oil prices generally showed a volatile and weak trend, with geopolitical events (e.g., Israel-Iran conflict) and OPEC+ production policies significantly impacting market sentiment, causing **WTI crude spot prices to fall to $65.11/barrel by June 30, 2025**[11](index=11&type=chunk) - The Chinese market promoted "anti-involution" policies, encouraging the elimination of outdated capacity, with new investments in the petrochemical industry focusing on **high-end chemical new materials (18% growth in H1)**, green and low-carbon transformation, and refining-chemical integration to address industry changes[12](index=12&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk) - The company actively responded to challenges, with key focuses in H1 including: aligning with the "dual carbon" strategy, increasing R&D in green energy technologies like biomass gasifiers, with parts of the new smart factory operational by July 2025; securing exclusive after-sales business authorization from Honeywell UOP's Callidus in China; establishing a Dubai subsidiary to expand into the Middle East and North Africa markets and joining ADNOC's supplier list; and fully commencing the "phosphorus-containing waste recycling" project to create a green benchmark[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - In the first half of 2025, the Group achieved **revenue of approximately RMB 151.8 million**, **gross profit of approximately RMB 39.9 million**, and a **loss attributable to owners of the parent company of approximately RMB 38.1 million**, primarily due to strategic investments in green technology R&D, Middle East market expansion, and circular economy projects[20](index=20&type=chunk) [Company Development Strategies](index=11&type=section&id=Company%20Development%20Strategies) The company's strategy focuses on enhancing R&D, deepening client services, accelerating green transition, global market penetration, and investing in phosphorus resource recovery for sustainable growth - The company will **increase R&D investment**, strategically focusing on deepening and breaking through its core businesses, enhancing product and service competitiveness through cutting-edge technological innovation, and promoting the commercialization of R&D achievements[21](index=21&type=chunk) - Leveraging the after-sales business authorization with Callidus, the company will **optimize domestic operational efficiency and costs**, provide efficient and high-quality after-sales services to existing customers, and explore energy-saving and consumption-reducing demands[22](index=22&type=chunk) - The company will continue to provide environmentally friendly and efficient energy solutions, deeply explore customer demands for energy saving and consumption reduction, and **strengthen the market promotion of green energy technologies like biomass gasifiers**[23](index=23&type=chunk) - Regarding overseas markets, the company will **focus on key regions where it has entered and has project experience (e.g., Middle East and North Africa)**, flexibly adjust business strategies, formulate differentiated market strategies, and drive overseas business growth[24](index=24&type=chunk) - The company is fully committed to making the **Huangshan phosphorus-containing waste recycling project an industry benchmark**, with Phase I expected to be completed and trial-operated by December 2025, and plans to strategically invest in similar projects in other key regions[25](index=25&type=chunk) [Financial Overview](index=12&type=section&id=Financial%20Overview) This section analyzes the company's H1 2025 financial performance, explaining revenue decline, margin contraction, and the shift to loss - The Group's revenue **decreased by 32.5% from RMB 224.9 million in H1 2024 to RMB 151.8 million in H1 2025**[26](index=26&type=chunk) Revenue Breakdown (RMB thousands) | Product Category | 2025 | Proportion | 2024 | Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Sulfur Recovery and VOC Incineration Equipment | 39,621 | 26.1% | 73,112 | 32.5% | -45.8% | | Catalytic Cracking Equipment | 53,079 | 35.0% | 132,673 | 59.0% | -60.0% | | Process Burners | 37,580 | 24.7% | 16,552 | 7.4% | +126.5% | | Heat Exchangers | 21,519 | 14.2% | 2,557 | 1.1% | +726.9% | | **Total** | **151,799** | **100.0%** | **224,894** | **100.0%** | **-32.5%** | - Gross profit **decreased by 47.0% from RMB 75.3 million in H1 2024 to RMB 39.9 million in H1 2025**, with gross margin falling from **33.5% to 26.3%**, primarily due to intensified market competition and securing sales orders at lower prices[36](index=36&type=chunk) - Selling expenses, administrative expenses, and R&D expenses all increased, leading to a **shift from a net profit of RMB 11.5 million to a net loss of RMB 38.1 million** for the period[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[43](index=43&type=chunk) - As of June 30, 2025, cash and cash equivalents were **RMB 92.7 million** (December 31, 2024: RMB 129.9 million), total bank and other borrowings increased to **RMB 189.7 million** (December 31, 2024: RMB 105.2 million), and the **gearing ratio rose to 57.0%** (December 31, 2024: 29.4%)[45](index=45&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) [Significant Acquisitions and Disposals](index=16&type=section&id=Significant%20Acquisitions%20and%20Disposals) This section discloses the establishment of Huangshan Zhonglin Technology Co., Ltd., a new subsidiary focused on phosphorus pollution control and waste recycling - The Group established a new subsidiary, **Huangshan Zhonglin Technology Co., Ltd., on March 4, 2025**, with a registered capital of **RMB 45 million**, and the company indirectly holds an **80% stake**[53](index=53&type=chunk) - Huangshan Zhonglin primarily engages in phosphorus pollution control deployment, phosphorus-containing waste treatment technology, and related waste product recycling to produce concentrated nutrient solutions[53](index=53&type=chunk) [Use of Net Proceeds](index=23&type=section&id=Use%20of%20Net%20Proceeds) This section updates the utilization of net proceeds from the company's July 2024 listing, allocated to capacity, R&D, and working capital - The company was listed on July 10, 2024, with **net proceeds of approximately HKD 60.6 million (approximately RMB 55.6 million)**[84](index=84&type=chunk) Intended Use and Application of Net Proceeds (RMB millions) | Intended Use | Approximate Percentage of Net Proceeds | Net Proceeds Utilized During the Reporting Period | Net Proceeds Unutilized as of June 30, 2025 | Expected Timeline for Full Utilization of Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Increase capacity and capabilities of new production facilities | 73.0% | 8.5 | 25.9 | On or before June 30, 2026 | | Further enhance design and R&D capabilities | 17.5% | 3.0 | 3.7 | On or before December 31, 2025 | | General working capital | 9.5% | 1.7 | 1.8 | On or before June 30, 2026 | | **Total** | **100.0%** | **13.2** | **31.4** | | - The company has no plans to deviate from the use of proceeds and business strategies disclosed in the prospectus[84](index=84&type=chunk) [Corporate Governance and Other Information](index=17&type=section&id=Corporate%20Governance%20and%20Other%20Information) This chapter covers the company's corporate governance practices, including directors' and major shareholders' interests, share incentive schemes, and compliance [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company or its Associated Corporations](index=17&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares,%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) This section discloses directors' and chief executive's interests and short positions in shares and associated corporations as of June 30, 2025 Directors'/Chief Executive's Interests in the Company's Shares (As of June 30, 2025) | Name of Director/Chief Executive | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Lu Bo | Beneficiary of a trust | 164,171,263 | 32.83% | | | Interest in controlled corporation | 5,598,240 | 1.12% | | Ms. Lu Xiaojing | Beneficiary of a trust | 164,171,263 | 32.83% | | | Interest in controlled corporation | 5,598,240 | 1.12% | | Ms. Bai Wei (Spouse of Mr. Lu Bo) | Interest of spouse | 169,769,503 | 33.95% | | Mr. Shao Song (Spouse of Ms. Lu Xiaojing) | Interest of spouse | 169,769,503 | 33.95% | - All listed interests are long positions, calculated based on the **total issued shares of 500,000,000 as of June 30, 2025**[62](index=62&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=18&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) This section lists substantial shareholders' interests and short positions in the company's shares and underlying shares as of June 30, 2025 Substantial Shareholders' Interests in the Company's Shares (As of June 30, 2025) | Name of Shareholder | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | One Ideal Limited | Beneficial interest | 164,171,263 | 32.83% | | Now Wealth Limited | Beneficial interest | 164,171,263 | 32.83% | | Lady Jing Limited | Beneficial interest | 164,171,263 | 32.83% | | LXJ Limited | Beneficial interest | 164,171,263 | 32.83% | | TCT (BVI) Limited | Beneficial interest | 328,342,526 | 65.66% | | THE CORE TRUST COMPANY LIMITED | Trustee | 328,342,526 | 65.66% | | Huangshan Jiantou Private Equity Fund Management Co., Ltd. | Beneficial interest | 28,570,000 | 5.71% | - The interests of TCT (BVI) Limited and THE CORE TRUST COMPANY LIMITED represent the **aggregate shareholdings of individual trusts established by Mr. Lu Bo and Ms. Lu Xiaojing**, respectively[64](index=64&type=chunk) [Share Incentive Scheme](index=19&type=section&id=Share%20Incentive%20Scheme) This section outlines the post-IPO share option scheme adopted on June 24, 2024, detailing maximum shares, participant limits, and vesting period - The company adopted a **post-IPO share option scheme on June 24, 2024**, aiming to provide eligible participants with opportunities to acquire ownership interests in the company and encourage them to enhance the company and share price[67](index=67&type=chunk)[68](index=68&type=chunk) - Under the scheme, the **maximum number of share options that can be granted is 50,000,000**, representing **10% of the issued shares as of June 30, 2025**[67](index=67&type=chunk)[69](index=69&type=chunk) - The vesting period for share options is generally **not less than 12 months**, and the subscription price shall not be less than the highest of the closing price on the grant date, the average closing price for the five business days immediately preceding the grant date, and the nominal value of the shares[70](index=70&type=chunk)[71](index=71&type=chunk) - No share options were granted, nor were any new shares issued for the grant of share options and awards during the reporting period and up to the date of this interim report[73](index=73&type=chunk) [Compliance with Corporate Governance Code](index=21&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) This section states the company's compliance with the Corporate Governance Code, noting one deviation where Chairman and CEO roles are combined - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices and has **complied with all applicable code provisions** during the reporting period and up to the date of this interim report[75](index=75&type=chunk)[76](index=76&type=chunk) - There is one deviation from Code Provision C.2.1 of the Corporate Governance Code, where the roles of **Chairman and Chief Executive Officer are combined and held by Mr. Lu Bo**[76](index=76&type=chunk) - The Board believes that, given Mr. Lu Bo's experience and understanding of the business, this arrangement facilitates the effective execution of strategic initiatives and information flow, and all significant decisions are made after consulting Board members, ensuring that the balance of power is not undermined[76](index=76&type=chunk) [Audit Committee and Review of Interim Results](index=22&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) This section details the Audit Committee's composition and its review of the unaudited interim financial information, noting no independent auditor review - The Audit Committee comprises **three independent non-executive directors**: Mr. Jiang Li (Chairman), Mr. Bao Xiaofeng, and Mr. Shen Cheng[80](index=80&type=chunk) - The Audit Committee has discussed and reviewed the Group's **unaudited condensed consolidated financial information** for the reporting period, concluding that the interim results comply with applicable accounting standards, laws, and regulations, and are appropriately disclosed[80](index=80&type=chunk) - The interim results have **not been reviewed by the company's independent auditor**[80](index=80&type=chunk) [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) This section discloses the resignation of Mr. Fu Cong as CFO and Joint Company Secretary on July 31, 2025, with no other significant subsequent events - **Mr. Fu Cong resigned as the company's Chief Financial Officer and Joint Company Secretary on July 31, 2025**[81](index=81&type=chunk) - Save for the aforementioned, no other significant subsequent events occurred after the reporting period up to the date of this interim report[82](index=82&type=chunk) [Changes in Board and Directors' Information](index=24&type=section&id=Changes%20in%20Board%20and%20Directors'%20Information) This section reports changes in the Board of Directors, including director resignations, appointments, and Nomination Committee changes - **Independent non-executive director Mr. Tu Shenwei resigned on May 19, 2025**, and **Mr. Jiang Li was appointed independent non-executive director, Chairman of the Audit Committee, Chairman of the Remuneration Committee, and member of the Nomination Committee on the same day**[87](index=87&type=chunk) - The **Chairman of the Nomination Committee changed from Mr. Lu Bo to Mr. Shen Cheng**, and **Ms. Lu Xiaojing was appointed a member of the Nomination Committee**, both effective from June 30, 2025[88](index=88&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=24&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This chapter presents the condensed consolidated statement of profit or loss and other comprehensive income for H1 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousands) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 151,799 | 224,894 | | Cost of sales | (111,889) | (149,640) | | Gross profit | 39,910 | 75,254 | | Other income and gains, net | 1,548 | 3,191 | | Selling expenses | (14,948) | (14,427) | | Administrative expenses | (35,408) | (21,448) | | Research and development expenses | (22,473) | (14,723) | | (Loss)/Profit before tax | (37,861) | 15,515 | | Income tax expense | (199) | (3,990) | | (Loss)/Profit for the period | (38,060) | 11,525 | | (Loss)/Profit for the period attributable to owners of the Company | (37,967) | 11,525 | | Basic and diluted (loss)/earnings per share (RMB cents) | (7.59) | 3.07 | - The company shifted from profit to **net loss in the first half of 2025**, primarily due to a significant decline in revenue and gross profit, coupled with increased selling, administrative, and R&D expenses[93](index=93&type=chunk) [Condensed Consolidated Statement of Financial Position](index=25&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This chapter presents the condensed consolidated statement of financial position, providing a snapshot of assets, liabilities, and equity as of June 30, 2025 Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Non-current assets | 166,295 | 141,280 | | Current assets | 612,050 | 585,670 | | Current liabilities | 343,727 | 331,200 | | Net current assets | 268,323 | 254,470 | | Non-current liabilities | 86,696 | 7,404 | | Net assets | 347,922 | 388,346 | | Total equity | 347,922 | 388,346 | - **Non-current liabilities significantly increased**, primarily due to new non-current bank and other borrowings, leading to higher total liabilities and reduced total equity[95](index=95&type=chunk) - The increase in **property, plant and equipment and right-of-use assets** was the primary reason for the growth in non-current assets[94](index=94&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=27&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This chapter presents the condensed consolidated statement of changes in equity, illustrating movements in equity attributable to owners for H1 2025 - For the six months ended June 30, 2025, equity attributable to owners of the company **decreased from RMB 388,046 thousand at the beginning of the period to RMB 330,085 thousand at the end of the period**[96](index=96&type=chunk) - The primary reasons for the equity decrease were a **loss for the period of RMB 37,967 thousand** and **dividends declared and paid of RMB 20,000 thousand**, partially offset by **contributions from non-controlling shareholders of RMB 17,630 thousand**[96](index=96&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This chapter presents the condensed consolidated statement of cash flows, detailing cash flows from operating, investing, and financing activities for H1 2025 Condensed Consolidated Statement of Cash Flows (RMB thousands) | Cash Flow Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Net cash used in operating activities | (96,685) | (11,257) | | Net cash used in investing activities | (16,740) | (2,974) | | Net cash from/(used in) financing activities | 76,383 | (9,752) | | Net decrease in cash and cash equivalents | (37,042) | (23,983) | | Cash and bank balances at end of period | 92,732 | 21,670 | - **Cash outflow from operating activities significantly increased**, cash outflow from investing activities also rose, but financing activities turned into a **net inflow due to new bank borrowings**[97](index=97&type=chunk) - Cash and bank balances at the end of the period were **RMB 92,732 thousand**, a decrease from the beginning of the period[97](index=97&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=29&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This chapter provides detailed explanatory notes to the condensed consolidated financial statements, covering general information, basis of preparation, and specific financial line items [General Information](index=29&type=section&id=General%20Information) This section states that Ruichang International Holding Limited is an investment holding company engaged in manufacturing and selling petroleum refining and petrochemical equipment - The company is an investment holding company incorporated in the Cayman Islands, primarily engaged in the **manufacturing and sale of petroleum refining and petrochemical equipment**[98](index=98&type=chunk) - The company's shares have been **listed on the Main Board of The Stock Exchange of Hong Kong Limited since July 10, 2024**[98](index=98&type=chunk) [Basis of Preparation](index=29&type=section&id=Basis%20of%20Preparation) This section explains that the unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules - The unaudited condensed consolidated financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** and the requirements of the Listing Rules[99](index=99&type=chunk) - The accounting policies and methods of computation used are **consistent with those adopted in the annual financial statements for the year ended December 31, 2024**[99](index=99&type=chunk) [Adoption of New and Revised Hong Kong Financial Reporting Standards](index=30&type=section&id=Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) This section notes the Group's adoption of all new and revised HKFRSs effective January 1, 2025, with no significant changes to accounting policies - The Group has **adopted all new and revised Hong Kong Financial Reporting Standards** effective for accounting periods beginning on January 1, 2025[100](index=100&type=chunk) - The adoption of these new and revised Hong Kong Financial Reporting Standards has **not resulted in any significant changes to the Group's accounting policies** or the amounts reported for the current and prior periods in the consolidated financial statements[100](index=100&type=chunk) [Fair Value Measurement](index=30&type=section&id=Fair%20Value%20Measurement) This section details the Group's fair value measurements using a three-level hierarchy for financial assets - Fair value measurements utilize a **three-level fair value hierarchy**, comprising Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) Fair Value Hierarchy Disclosure (As of June 30, 2025, RMB thousands) | Description | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss — Funds | – | 9,262 | – | 9,262 | | Financial assets at fair value through other comprehensive income — Unlisted equity investments | – | – | 18,594 | 18,594 | - The valuation technique for unlisted equity investments is the **proportionate share of net assets**; if the net assets of the relevant investment increase/decrease by 5%, their carrying amount would increase/decrease by **RMB 930 thousand**, respectively[111](index=111&type=chunk) [Revenue](index=33&type=section&id=Revenue) This section provides a breakdown of the Group's revenue for two interim periods, primarily from equipment manufacturing and sales Revenue from Contracts with Customers (RMB thousands) | Product Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Sulfur Recovery and VOC Incineration Equipment | 39,621 | 73,112 | | Catalytic Cracking Equipment | 53,079 | 132,673 | | Process Burners | 37,580 | 16,552 | | Heat Exchangers | 21,519 | 2,557 | | **Total** | **151,799** | **224,894** | - Revenue recognized from contract liabilities at the beginning of the period was **RMB 7,990 thousand in H1 2025**, compared to **RMB 59,191 thousand in H1 2024**[112](index=112&type=chunk) - Performance obligations are satisfied upon customer acceptance of the relevant products, with payments generally due within **30 to 90 days after delivery**[113](index=113&type=chunk) [Segment Information](index=34&type=section&id=Segment%20Information) This section states that the Group primarily manufactures and sells petroleum refining and petrochemical equipment to mainland China customers - The Group is primarily engaged in the **manufacturing and sale of petroleum refining and petrochemical equipment to customers in mainland China**, and no financial information for separate operating segments is presented[114](index=114&type=chunk) - As substantially all revenue is derived from mainland China and all non-current assets are located in mainland China, **no geographical information is presented**[115](index=115&type=chunk) [Other Income and Gains, Net](index=34&type=section&id=Other%20Income%20and%20Gains,%20Net) This section presents the Group's other income and gains, net, which decreased primarily due to reduced government grants Other Income and Gains, Net (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Government grants | 445 | 2,716 | | Interest income | 668 | 132 | | Net rental income | – | 47 | | Others | 435 | 296 | | **Total** | **1,548** | **3,191** | - The **decrease in government grants** was the primary reason for the decline in other income and gains, net, with these grants mainly subsidizing high-tech enterprises[117](index=117&type=chunk) [Finance Costs](index=35&type=section&id=Finance%20Costs) This section discloses the Group's finance costs, which decreased mainly due to lower interest on bank and other borrowings Finance Costs (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 2,297 | 2,748 | | Interest on lease liabilities | 175 | 88 | | **Total** | **2,472** | **2,836** | - The decrease in finance costs was primarily due to a **reduction in the Group's bank and other borrowings in H1 2025**[41](index=41&type=chunk) [Income Tax Expense](index=36&type=section&id=Income%20Tax%20Expense) This section details the Group's income tax expense, which significantly decreased due to reduced taxable income of Chinese subsidiaries Income Tax Expense (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Current income tax — Mainland China | 199 | 3,497 | | Withholding tax | – | 1,000 | | Deferred income tax | – | (507) | | **Total** | **199** | **3,990** | - The decrease in income tax expense was primarily due to a **reduction in the taxable income of Chinese subsidiaries**[42](index=42&type=chunk) - Luoyang Ruichang and Shanghai Ruicheer, as high-tech enterprises, are **eligible for a preferential corporate income tax rate of 15%**[123](index=123&type=chunk) - As of June 30, 2025, the Group had **accumulated tax losses in China of RMB 120,188 thousand**, but no deferred tax assets were recognized due to the unpredictability of future profit sources[125](index=125&type=chunk) [Loss / Profit for the Period](index=37&type=section&id=Loss%20/%20Profit%20for%20the%20Period) This section lists the key items impacting the Group's loss or profit for the period, reflecting their influence on overall profitability Key Items Affecting (Loss)/Profit for the Period (RMB thousands) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Cost of inventories sold | 103,721 | 146,668 | | Depreciation of property, plant and equipment | 3,529 | 3,154 | | Depreciation of right-of-use assets | 1,532 | 2,158 | | Amortisation of intangible assets | 400 | 208 | | Research and development costs | 22,473 | 14,723 | | Impairment losses on financial assets and contract assets | 3,993 | 1,969 | | Total staff costs (including directors' emoluments) | 38,905 | 31,118 | - Total staff costs (including directors' emoluments) **increased from RMB 31,118 thousand in H1 2024 to RMB 38,905 thousand in H1 2025**[126](index=126&type=chunk) [Loss / Earnings Per Share](index=38&type=section&id=Loss%20/%20Earnings%20Per%20Share) This section calculates the basic (loss)/earnings per share attributable to owners, with no diluted (loss)/earnings per share presented Loss / Earnings Per Share (RMB thousands) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | (Loss)/Profit for the period attributable to owners of the Company for the purpose of calculating basic (loss)/earnings per share | (37,967) | 11,525 | | Number of ordinary shares for the purpose of calculating basic (loss)/earnings per share | 500,000,000 | 375,000,000 | | Basic and diluted (loss)/earnings per share (RMB cents) | (7.59) | 3.07 | - No diluted (loss)/earnings per share is presented for the six months ended June 30, 2025 and 2024, as there were **no outstanding potential ordinary shares**[127](index=127&type=chunk) [Dividends](index=38&type=section&id=Dividends) This section reports the final dividend declared and paid for 2024, with no interim dividend recommended for the current reporting period - During the interim period, a **final dividend of RMB 0.04 per share**, totaling **RMB 20,000 thousand**, was declared to owners of the company for the year ended December 31, 2024[128](index=128&type=chunk) - The directors of the company **do not recommend the payment of any interim dividend** for the reporting period[129](index=129&type=chunk) [Movements in Property and Equipment](index=39&type=section&id=Movements%20in%20Property%20and%20Equipment) This section discloses the Group's acquisition of property and equipment and a transfer from investment properties - The Group acquired **property and equipment of RMB 15,243 thousand in H1 2025**, a significant increase compared to RMB 2,719 thousand in H1 2024[130](index=130&type=chunk) - During the interim period, **RMB 4,098 thousand of property and equipment was transferred from investment properties**[130](index=130&type=chunk) [Investment Property](index=39&type=section&id=Investment%20Property) This section states the market value of investment property as of April 30, 2024, and its depreciation impact - The market value of investment property was **RMB 15,790 thousand as of April 30, 2024**[131](index=131&type=chunk) - If these assets were accounted for at this valuation, an **additional depreciation of RMB 158 thousand** would be recognized in the consolidated statement of profit or loss and other comprehensive income for the year ended December 31, 2024[131](index=131&type=chunk) [Trade and Bills Receivables](index=40&type=section&id=Trade%20and%20Bills%20Receivables) This section details the Group's trade and bills receivables, providing an aging analysis and changes in impairment provisions Trade and Bills Receivables (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables (net of impairment allowance) | 259,138 | 236,909 | | Bills receivables | 6,463 | 15,697 | | **Total** | **265,601** | **252,606** | Aging Analysis of Trade Receivables (As of June 30, 2025, RMB thousands) | Aging | Amount | | :--- | :--- | | Within 90 days | 91,518 | | 91 to 180 days | 6,115 | | 181 to 365 days | 123,725 | | Over 1 year but not exceeding 2 years | 25,019 | | Over 2 years but not exceeding 3 years | 10,799 | | Over 3 years but not exceeding 4 years | 1,962 | | **Total** | **259,138** | - Impairment allowance for trade receivables **increased from RMB 16,908 thousand at the beginning of the period to RMB 19,971 thousand at the end of the period**[135](index=135&type=chunk) [Trade and Bills Payables](index=41&type=section&id=Trade%20and%20Bills%20Payables) This section lists the Group's trade and bills payables, providing an aging analysis and noting their interest-free nature Trade and Bills Payables (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade payables | 104,355 | 134,786 | | Bills payables | 24,554 | 19,644 | | **Total** | **128,909** | **154,430** | Aging Analysis of Trade and Bills Payables (As of June 30, 2025, RMB thousands) | Aging | Amount | | :--- | :--- | | Within 90 days | 60,196 | | 91 to 180 days | 37,374 | | 181 to 365 days | 17,508 | | Over 1 year | 13,831 | | **Total** | **128,909** | - Trade payables are **interest-free** and are normally settled within a **60-day period**[136](index=136&type=chunk) [Bank and Other Borrowings](index=42&type=section&id=Bank%20and%20Other%20Borrowings) This section details the Group's bank and other borrowings, including secured and unsecured loans and maturity profiles Bank and Other Borrowings (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Secured loans | 119,700 | 99,800 | | Unsecured loans | 70,000 | 5,358 | | **Total** | **189,700** | **105,158** | | Current portion | (109,700) | (105,158) | | Non-current portion | 80,000 | – | Maturity Profile of Bank and Other Borrowings (As of June 30, 2025, RMB thousands) | Term | Amount | | :--- | :--- | | Within one year or on demand | 109,700 | | In the second year | – | | In the third to fifth years (inclusive) | 80,000 | | **Total** | **189,700** | - All borrowings are **fixed-rate loans** and are denominated in RMB[47](index=47&type=chunk) [Share Capital](index=43&type=section&id=Share%20Capital) This section states the company's authorized and issued share capital, which remained unchanged during the reporting period - The authorized share capital is **5,000,000,000 ordinary shares of USD 0.00001 each**, totaling **USD 50,000**[139](index=139&type=chunk) - The issued and fully paid share capital is **500,000,000 ordinary shares of USD 0.00001 each**, equivalent to **RMB 35,671 thousand**, and remained unchanged during the reporting period[139](index=139&type=chunk) [Capital Commitments](index=44&type=section&id=Capital%20Commitments) This section discloses the Group's capital commitments for property and equipment, which significantly decreased Capital Commitments (RMB thousands) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Property and equipment — contracted but not provided for | 372 | 11,194 | - Capital commitments for property and equipment **significantly decreased**, indicating a reduction in future capital expenditure pressure[140](index=140&type=chunk) [Related Party Transactions](index=44&type=section&id=Related%20Party%20Transactions) This section identifies ultimate controlling shareholders and discloses non-trade balances and transactions with related parties - **Mr. Lu Bo and Ms. Lu Xiaojing are the ultimate controlling shareholders** of the Group[141](index=141&type=chunk) - As of June 30, 2025, amounts due from controlling shareholders were **RMB 179 thousand**[142](index=142&type=chunk) - Related party lease payments for the reporting period were **RMB 83 thousand** (H1 2024: RMB 57 thousand)[143](index=143&type=chunk)

[CORPORATE INFORMATION](index=2&type=section&id=CORPORATE%20INFORMATION) This section provides an overview of the company's key corporate details, including its board of directors, committees, executive officers, registered offices, and shareholder information [BOARD OF DIRECTORS](index=3&type=section&id=BOARD%20OF%20DIRECTORS) The Board of Directors comprises executive directors Mr. Wang Jun (Chairman) and Mr. Guo Liyuan, and independent non-executive directors Mr. Liang Xiang, Ms. Luo Ying, and Ms. Xin Zhu - Mr. Wang Jun serves as Executive Director and Chairman[8](index=8&type=chunk) - Mr. Guo Liyuan was appointed Executive Director on April 30, 2025[8](index=8&type=chunk) - Ms. Dai Jiling resigned as Executive Director on April 30, 2025, and Mr. Shi Shushan resigned as Executive Director on February 1, 2025[8](index=8&type=chunk) [BOARD COMMITTEES](index=3&type=section&id=BOARD%20COMMITTEES) The Board has established Audit, Remuneration, and Nomination Committees, each composed of independent non-executive and executive directors to ensure effective corporate governance - The Audit Committee is chaired by Ms. Xin Zhu[8](index=8&type=chunk) - The Remuneration Committee is chaired by Ms. Luo Ying[8](index=8&type=chunk) - The Nomination Committee is chaired by Mr. Wang Jun[9](index=9&type=chunk) [CHIEF EXECUTIVE OFFICER](index=3&type=section&id=CHIEF%20EXECUTIVE%20OFFICER) Mr. Wang Jun was appointed Chief Executive Officer on April 30, 2025, succeeding Ms. Dai Jiling, who resigned on the same day - Mr. Wang Jun was appointed Chief Executive Officer on April 30, 2025[10](index=10&type=chunk) - Ms. Dai Jiling resigned as Chief Executive Officer on April 30, 2025[10](index=10&type=chunk) [COMPANY SECRETARY](index=3&type=section&id=COMPANY%20SECRETARY) Mr. Tam Kok Ching serves as the Company Secretary - The Company Secretary is Mr. Tam Kok Ching[10](index=10&type=chunk) [AUTHORISED REPRESENTATIVES](index=3&type=section&id=AUTHORISED%20REPRESENTATIVES) Mr. Wang Jun and Mr. Tam Kok Ching are the authorized representatives of the company - The authorized representatives are Mr. Wang Jun and Mr. Tam Kok Ching[10](index=10&type=chunk) [REGISTERED OFFICE](index=4&type=section&id=REGISTERED%20OFFICE) The company's registered office is located in the Cayman Islands - The registered office is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1–1111, Cayman Islands[12](index=12&type=chunk) [PRINCIPAL PLACE OF BUSINESS IN THE PRC](index=4&type=section&id=PRINCIPAL%20PLACE%20OF%20BUSINESS%20IN%20THE%20PRC) The company's principal place of business in the PRC is located in Zhengzhou, Henan Province - The principal place of business in the PRC is located at Room 411, 4th Floor, Building 2, Jianye Headquarters Port, No. 19 Dirun Road, Zhengdong New District, Zhengzhou, Henan Province[12](index=12&type=chunk) [PRINCIPAL PLACE OF BUSINESS IN HONG KONG](index=4&type=section&id=PRINCIPAL%20PLACE%20OF%20BUSINESS%20IN%20HONG%20KONG) The company's principal place of business in Hong Kong is located in Harbour City, Canton Road, Tsim Sha Tsui, Kowloon - The principal place of business in Hong Kong is located at Units 1602–1605, 16th Floor, Tower 2, Gateway, Harbour City, 25 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong[13](index=13&type=chunk) [PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE](index=4&type=section&id=PRINCIPAL%20SHARE%20REGISTRAR%20AND%20TRANSFER%20OFFICE) Conyers Trust Company (Cayman) Limited serves as the principal share registrar and transfer office - The principal share registrar and transfer office is Conyers Trust Company (Cayman) Limited[14](index=14&type=chunk) [HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE](index=4&type=section&id=HONG%20KONG%20BRANCH%20SHARE%20REGISTRAR%20AND%20TRANSFER%20OFFICE) Hong Kong Central Share Registrar and Transfer Office Limited serves as the Hong Kong branch share registrar and transfer office - The Hong Kong branch share registrar and transfer office is Hong Kong Central Share Registrar and Transfer Office Limited[14](index=14&type=chunk) [PRINCIPAL BANKERS](index=4&type=section&id=PRINCIPAL%20BANKERS) The principal bankers include Bank of China (Hong Kong) Limited and Industrial and Commercial Bank of China (Asia) Limited - The principal bankers include Bank of China (Hong Kong) Limited and Industrial and Commercial Bank of China (Asia) Limited[14](index=14&type=chunk) [LEGAL ADVISERS](index=5&type=section&id=LEGAL%20ADVISERS) Legal advisers include Stevenson, Wong & Co. (Hong Kong Law) and Conyers Dill & Pearman (Cayman Islands Law) - The Hong Kong legal adviser is Stevenson, Wong & Co[15](index=15&type=chunk) - The Cayman Islands legal adviser is Conyers Dill & Pearman[15](index=15&type=chunk) [INDEPENDENT AUDITOR](index=5&type=section&id=INDEPENDENT%20AUDITOR) The independent auditor is BDO Limited - The independent auditor is BDO Limited[15](index=15&type=chunk) [WEBSITE OF THE COMPANY](index=5&type=section&id=WEBSITE%20OF%20THE%20COMPANY) The company's official website is www.ccnewlife.com.cn - The company's website is www.ccnewlife.com.cn[15](index=15&type=chunk) [SHAREHOLDERS' INFORMATION](index=5&type=section&id=SHAREHOLDERS'%20INFORMATION) The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, with 1,299,276,000 ordinary shares issued as of June 30, 2025, at HK$0.01 par value per share - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[16](index=16&type=chunk) - As of June 30, 2025, 1,299,276,000 shares were issued, with a par value of HK$0.01 per share[16](index=16&type=chunk) [INVESTOR RELATIONS CONTACT](index=5&type=section&id=INVESTOR%20RELATIONS%20CONTACT) The investor relations contact email address is ir@ccnewlife.com.cn - The investor relations contact email address is ir@ccnewlife.com.cn[16](index=16&type=chunk) [STOCK CODE](index=5&type=section&id=STOCK%20CODE) The company's stock code is 9983 - The stock code is 9983[16](index=16&type=chunk) [CORPORATE PROFILE](index=5&type=section&id=CORPORATE%20PROFILE) CCNL is the largest property management service provider in Central China, managing diverse properties across 18 cities in Henan and other provinces, serving over 2.8 million owners and residents - The company is the largest property management service provider in Central China by total GFA under management as of June 30, 2025, and by total revenue for the year ended June 30, 2025[19](index=19&type=chunk) - As of June 30, 2025, property management and value-added services covered all 18 prefecture-level cities in Henan Province and other provinces and cities in Central China, Hainan, and Xinjiang, serving over **2.8 million** owners and residents in more than **1,000** properties[20](index=20&type=chunk) - The company has been ranked 11th among China's Top 100 Property Service Enterprises for five consecutive years since 2021[20](index=20&type=chunk) - The company's business lines include property management services, community value-added services, and value-added services to non-property owners[24](index=24&type=chunk) [CHAIRMAN'S STATEMENT](index=7&type=section&id=CHAIRMAN'S%20STATEMENT) The Chairman's report highlights the group's financial performance for H1 2025, strategic focus on customer-centricity, service quality, and future outlook amidst a dynamic market environment - In H1 2025, the group's revenue was **RMB 1,433.8 million**, and net profit was **RMB 112.2 million**[28](index=28&type=chunk) - Excluding specific items, core net profit attributable to shareholders decreased by approximately **0.3%** year-on-year to **RMB 147.9 million**[28](index=28&type=chunk) - The group adheres to a customer-centric service philosophy, promotes a service quality enhancement strategy, optimizes its business structure, and strengthens its core competitive advantages[33](index=33&type=chunk) [PERFORMANCE REVIEW](index=9&type=section&id=PERFORMANCE%20REVIEW) In H1 2025, the group achieved significant growth in basic property services, with property management revenue reaching RMB 1,154.3 million, while enhancing service quality through the "Renewal Action" - In H1 2025, property management revenue reached **RMB 1,154.3 million**, reflecting continuous investment in service quality improvement[34](index=34&type=chunk) - As of June 30, 2025, total contracted GFA reached **288.0 million sqm**, and total GFA under management reached **200.1 million sqm**, with **2.5 million sqm** of new third-party expansion area added during the period[40](index=40&type=chunk) - The group received multiple brand awards, including "2025 China Top 100 Property Service Enterprises TOP 11"[45](index=45&type=chunk) [Strong Property Management Revenue with Enhanced Quality and Efficiency in Basic Services](index=9&type=section&id=Strong%20Property%20Management%20Revenue%20with%20Enhanced%20Quality%20and%20Efficiency%20in%20Basic%20Services) In H1 2025, basic property management revenue significantly increased to RMB 1,154.3 million, driven by the "Renewal Action" which upgraded smart hardware, refined service standards, and branded service image - In H1 2025, property management revenue reached **RMB 1,154.3 million**[34](index=34&type=chunk) - The "Renewal Action" promotes intelligent upgrades of park hardware facilities, refinement of service standards, and branding of service image[36](index=36&type=chunk) [Steady Advancement in Lifestyle Services through Demand-Driven Focus](index=10&type=section&id=Steady%20Advancement%20in%20Lifestyle%20Services%20through%20Demand-Driven%20Focus) The group in H1 2025 accurately grasped market trends, adjusted its business layout, focused on high-potential niche markets, stabilized traditional operations, and actively explored innovative service models, achieving steady overall development - Accurately grasp market trends, focus on high-potential niche markets, and achieve efficient resource allocation and vertical development[38](index=38&type=chunk) - Stabilize traditional businesses such as space operations and community commerce, and actively explore innovative service models[42](index=42&type=chunk) [Proactively Exploring Existing Market and Promoting Multi-business Deployment](index=10&type=section&id=Proactively%20Exploring%20Existing%20Market%20and%20Promoting%20Multi-business%20Deployment) The group adheres to a high-quality development path, deepening its regional presence, prudently selecting investment and expansion projects, and actively exploring opportunities in the existing market - Adhere to a high-quality development path, deepen regional and vertical development strategies, and explore potential opportunities in the existing market[39](index=39&type=chunk) - As of June 30, 2025, GFA under management reached **200.1 million sqm**, with **2.5 million sqm** of new third-party expansion area added[40](index=40&type=chunk) [Cultivating Cultural Empowerment and Elevating Brand Value](index=10&type=section&id=Cultivating%20Cultural%20Empowerment%20and%20Elevating%20Brand%20Value) In H1 2025, the group organized 4,750 community activities themed "This is My Home," engaging 398,402 residents, upgrading community governance, and earning multiple industry brand awards - Organized **4,750** community activities themed "This is My Home," with **398,402** residents participating[41](index=41&type=chunk) - Awarded "2025 China Top 100 Property Service Enterprises TOP 11" and "2025 China Listed Property Service Investment Value Excellent Enterprise" and other series of awards[45](index=45&type=chunk) [OUTLOOK](index=11&type=section&id=OUTLOOK) The group will align with policy requirements, deepen service innovation, refine service standards, optimize business layout, expand diversified partnerships, strengthen brand building, and upgrade its management system for sustainable development - Closely align with policy requirements, deepen service innovation, refine service standards, and continue the "Renewal Action"[47](index=47&type=chunk) - Actively respond to national urban renewal and old community renovation policies, focusing on high-potential niche markets such as community elderly care services[48](index=48&type=chunk) - Adhere to a high-quality development path, expand diversified cooperation models, accelerate market expansion, and strengthen brand building[52](index=52&type=chunk)[53](index=53&type=chunk) - Continuously upgrade the management system, adjust departmental settings and responsibilities, and strengthen talent cultivation and team building[56](index=56&type=chunk) [Embracing Policy Direction and Deepening Service Transformation](index=11&type=section&id=Embracing%20Policy%20Direction%20and%20Deepening%20Service%20Transformation) The group will align with policy requirements, deepen service innovation, refine service standards, and continue the "Renewal Action" to build a distinctive "Good Service" system that preserves and enhances property asset value - Closely align with policy requirements, deepen service innovation, refine service standards, and continue the Renewal Action[47](index=47&type=chunk) - Combine deep understanding of customer needs to create a distinctive "Good Service" system that preserves and enhances the value of property assets[49](index=49&type=chunk) [Deepening Market Insights and Optimising Business Presence](index=11&type=section&id=Deepening%20Market%20Insights%20and%20Optimising%20Business%20Presence) Facing a complex property management market, the group will deeply analyze market demand changes, optimize its business layout, actively respond to urban renewal policies, and focus on high-potential segments like community elderly care services - Deeply analyze changes in market demand and optimize business layout[48](index=48&type=chunk) - Actively respond to national urban renewal and old community renovation policies, fully leveraging professional advantages to participate[50](index=50&type=chunk) - Focus on high-potential niche markets, such as community elderly care services, to meet the growing and diverse service needs of owners[50](index=50&type=chunk) [Expanding Diversified Partnerships and Accelerating Market Development](index=12&type=section&id=Expanding%20Diversified%20Partnerships%20and%20Accelerating%20Market%20Development) To achieve sustainable growth, the group will pursue high-quality development, actively expand diversified cooperation models, accelerate market expansion, deepen regional penetration, and establish a robust project evaluation system - Adhere to a high-quality development path, actively expand diversified cooperation models, and accelerate market expansion[52](index=52&type=chunk) - Firmly advance the regional deep cultivation strategy, increase service density, reduce operating costs, and build regional competitive advantages[54](index=54&type=chunk) - In investment and expansion, focus on project quality and efficiency, and establish a comprehensive project evaluation system[54](index=54&type=chunk) [Enhancing Brand Identity and Communicating Brand Warmth](index=12&type=section&id=Enhancing%20Brand%20Identity%20and%20Communicating%20Brand%20Warmth) In the second half of the year, the group will further strengthen brand building, intensify online and offline promotion, widely disseminate its brand philosophy, and organize themed community cultural activities to enhance owner identification and belonging - In the second half of the year, brand building will be further strengthened to comprehensively enhance brand influence[53](index=53&type=chunk) - Increase online and offline promotion, and enhance owners' sense of identity and belonging to the brand through various themed community cultural activities[55](index=55&type=chunk) - Actively participate in industry standard setting and public welfare activities, establish an industry benchmark image, and demonstrate corporate social responsibility[55](index=55&type=chunk) [Enhancing Organisational Structure and Talent Excellence](index=13&type=section&id=Enhancing%20Organisational%20Structure%20and%20Talent%20Excellence) The group will continuously upgrade its management system, optimize organizational structure, adjust departmental settings and responsibilities, reduce management layers, and develop a comprehensive talent development plan to foster an excellent team - Continuously upgrade the management system, optimize organizational structure, adjust departmental settings and responsibilities, reduce management layers, and improve decision-making efficiency and execution[56](index=56&type=chunk)[58](index=58&type=chunk) - Formulate a comprehensive talent development plan, increase internal training and external recruitment, and enhance employees' business capabilities and overall quality[58](index=58&type=chunk) [FINANCIAL HIGHLIGHTS](index=13&type=section&id=FINANCIAL%20HIGHLIGHTS) In H1 2025, Joyful Ascent New Life's revenue decreased by 3.3% year-on-year to RMB 1,433.8 million, but net profit increased by 2.8% to RMB 112.2 million, with gross profit margin declining by 2.0 percentage points to 20.8% 2025 H1 Key Financial Data (Consolidated Statement) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | **Income Statement:** | | | | | Revenue | 1,433,780 | 1,482,932 | -3.3% | | Gross Profit | 298,669 | 337,849 | -11.6% | | Gross Profit Margin | 20.8% | 22.8% | -2.0 percentage points | | Net Profit | 112,239 | 109,179 | 2.8% | | Net Profit Margin | 7.8% | 7.4% | 0.4 percentage points | | Profit attributable to owners of the Company | 106,166 | 103,394 | 2.7% | | Core net profit attributable to owners of the Company | 147,903 | 148,398 | -0.3% | | Basic earnings per share (RMB) | 0.08 | 0.08 | 2.2% | | Diluted earnings per share (RMB) | 0.08 | 0.08 | 1.3% | | Interim dividend per share (HK cents) | 3.3 | 10.59 | -68.8% | | **Balance Sheet (Period-end):** | | | | | Total Cash | 833,723 | 1,198,019 | -30.4% | | Total Assets | 4,451,900 | 4,726,961 | -5.8% | | Total Liabilities | 2,437,338 | 2,737,588 | -11.0% | | Total Equity | 2,014,562 | 1,989,373 | 1.3% | | Equity attributable to owners of the Company | 1,887,482 | 1,863,154 | 1.3% | | Current Ratio | 1.6 times | 1.6 times | 0.0% | | Net asset value per share (RMB) | 1.55 | 1.53 | 1.3% | [MANAGEMENT DISCUSSION AND ANALYSIS](index=14&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section provides a detailed analysis of the group's operational and financial performance for H1 2025, covering revenue streams, cost structures, financial resources, and future strategies - Revenue for the period was **RMB 1,433.8 million**, a **3.3%** decrease compared to H1 2024[67](index=67&type=chunk) - Net profit for the period was **RMB 112.2 million**, a **2.8%** increase compared to H1 2024[67](index=67&type=chunk) - Property management service revenue increased by **1.8%**, while community value-added service revenue and value-added service revenue to non-property owners decreased by **14.6%** and **48.8%** respectively[92](index=92&type=chunk)[99](index=99&type=chunk)[101](index=101&type=chunk) - Gross profit margin decreased from approximately **22.8%** in H1 2024 to approximately **20.8%**, mainly due to a decrease in gross profit margins for property management services and community value-added services[109](index=109&type=chunk) - Net impairment losses on financial assets increased by **RMB 22.5 million** to **RMB 71.6 million**, primarily due to the downturn in the domestic real estate sector[118](index=118&type=chunk) [BUSINESS REVIEW](index=15&type=section&id=BUSINESS%20REVIEW) The group's revenue for H1 2025 decreased by 3.3% to RMB 1,433.8 million, while net profit increased by 2.8% to RMB 112.2 million, with property management services showing growth and value-added services declining - Revenue for the period was **RMB 1,433.8 million**, a **3.3%** decrease compared to H1 2024[67](index=67&type=chunk) - Net profit for the period was **RMB 112.2 million**, a **2.8%** increase compared to H1 2024[67](index=67&type=chunk) - As of June 30, 2025, GFA under management increased by **1.7%** compared to 2024, reaching **200.1 million sqm**[70](index=70&type=chunk) - Community value-added service revenue decreased by **14.6%** year-on-year, and value-added service revenue to non-property owners decreased by **48.8%** year-on-year, mainly affected by the continuous downturn in the real estate market[99](index=99&type=chunk)[101](index=101&type=chunk) [Property management services](index=15&type=section&id=Property%20management%20services) The group's property management service revenue reached RMB 1,154.3 million during the period, an increase of 1.8% year-on-year, primarily due to the growth in total GFA under management - Property management service revenue for the period reached **RMB 1,154.3 million**, an increase of **1.8%** compared to H1 2024[92](index=92&type=chunk) - As of June 30, 2025, total GFA under management was **200.1 million sqm**, an increase of **1.7%** compared to December 31, 2024[95](index=95&type=chunk) GFA under Management Breakdown (as of June 30, 2025) | Source | GFA ('000 sqm) | Percentage (%) | | :--- | :--- | :--- | | Central China Group and its associates or joint ventures | 79,114 | 39.5 | | Third-party property developers | 121,023 | 60.5 | | **Total** | **200,137** | **100.0** | [Community value-added services](index=16&type=section&id=Community%20value-added%20services) Community value-added service revenue for the period was RMB 251.2 million, a 14.6% year-on-year decrease, mainly due to the downturn in the domestic real estate market and reduced consumer confidence - Community value-added service revenue for the period was **RMB 251.2 million**, a **14.6%** decrease compared to the same period last year[99](index=99&type=chunk) - The decrease was mainly due to the continuous downturn in the domestic real estate market, leading to a decrease in the group's smart community solutions revenue[100](index=100&type=chunk) - Reduced consumer confidence in the domestic market led to a decrease in the group's park sales service revenue[100](index=100&type=chunk) [Value-added services to non-property owners](index=17&type=section&id=Value-added%20services%20to%20non-property%20owners) Value-added services to non-property owners generated RMB 28.2 million in revenue, a significant 48.8% year-on-year decrease, primarily due to the group's proactive scaling back of these services amidst real estate market adjustments - Value-added service revenue to non-property owners for the period was **RMB 28.2 million**, a **48.8%** decrease compared to the same period last year[101](index=101&type=chunk) - The decrease was mainly due to the continuous adjustments in the real estate industry, leading the group to proactively adjust its value-added businesses and scale back value-added services to non-property owners[104](index=104&type=chunk) - Revenue from pre-delivery services and on-site sales services decreased by **RMB 18.6 million**[104](index=104&type=chunk) [PROSPECTS AND STRATEGIES](index=17&type=section&id=PROSPECTS%20AND%20STRATEGIES) The group aims to extract value from the existing market, enhance customer loyalty, and achieve high-quality sustainable development by innovating lifestyle services, maintaining consistent basic service quality, strengthening community culture, and focusing on efficiency - Entering H2 2025, the industry competition intensified, with value extraction from existing markets and enhancing customer loyalty becoming core challenges[75](index=75&type=chunk) - Lifestyle services will seek innovation while maintaining stability, optimizing existing service structures, increasing penetration and repurchase rates, and prudently introducing new services[76](index=76&type=chunk) - Basic services will maintain consistent standards and stable quality, and build a multi-tiered service standard and response system[81](index=81&type=chunk) - Strengthen community culture building, systematically and regularly organize online and offline community activities, and cultivate community cultural brands[82](index=82&type=chunk) - Investment and expansion businesses will be prudently evaluated, and existing projects (especially loss-making ones) will undergo in-depth diagnosis and governance to improve efficiency and reduce costs[83](index=83&type=chunk)[86](index=86&type=chunk) [Seeking Innovation in Lifestyle Services While Maintaining Stability, and Building a Resilient Ecosystem](index=17&type=section&id=Seeking%20Innovation%20in%20Lifestyle%20Services%20While%20Maintaining%20Stability,%20and%20Building%20a%20Resilient%20Ecosystem) The group will optimize existing lifestyle service structures, enhance penetration and repurchase rates, accurately assess owner needs, and prudently introduce new services with long-term potential, while strengthening supply chain resilience - Focus on optimizing the existing service structure to increase penetration and repurchase rates[76](index=76&type=chunk) - Accurately assess owner needs, prudently introduce new services with long-term potential, and ensure the sustainability and profitability of innovative businesses[79](index=79&type=chunk) - Continuously improve online and offline service scenarios covering the entire owner's life cycle, use data insights for precise matching, and continuously strengthen supply chain resilience[79](index=79&type=chunk) [Maintaining Consistent Quality in Basic Services and Deepening Service Tiering](index=18&type=section&id=Maintaining%20Consistent%20Quality%20in%20Basic%20Services%20and%20Deepening%20Service%20Tiering) The group will ensure consistent standards and stable quality in basic services, and based on project positioning, owner needs, and willingness to pay, scientifically build multi-tiered service standards and response systems - Ensure consistent standards and stable quality in basic services, and continuously invest to guarantee high-standard execution of core modules[81](index=81&type=chunk) - Scientifically build multi-tiered service standards and response systems based on project positioning, owner needs, and willingness to pay[84](index=84&type=chunk) - Consolidate the achievements of the "Quality Improvement Year" to normalize and refine quality control mechanisms[84](index=84&type=chunk) [Strengthening Community Culture Construction and Fostering Neighbourhood Value](index=18&type=section&id=Strengthening%20Community%20Culture%20Construction%20and%20Fostering%20Neighbourhood%20Value) The group will systematically and regularly plan and organize online and offline community activities, fostering a warm, vibrant, and mutually supportive community atmosphere, and actively build interactive communication platforms - Systematically and regularly plan and organize online and offline community activities to create a warm, vibrant, and mutually supportive community atmosphere[82](index=82&type=chunk) - Cultivate distinctive community cultural brands or event IPs by combining regional characteristics and project features[85](index=85&type=chunk) - Actively build online and offline interactive communication platforms to promote neighborly exchange and emotional connection, fostering community spirit[85](index=85&type=chunk) [Continuing the Path of High-Quality Development and Focusing on Effectiveness](index=18&type=section&id=Continuing%20the%20Path%20of%20High-Quality%20Development%20and%20Focusing%20on%20Effectiveness) The group will prudently evaluate investment and expansion projects for their alignment with existing layout, service capabilities, and cost structure, ensuring a healthy profit model, and optimize operations for existing projects - Prudently evaluate investment and expansion projects for their alignment with existing layout, service capabilities, and cost structure to ensure a healthy profit model[83](index=83&type=chunk) - For existing projects, especially loss-making ones, conduct in-depth diagnosis and governance, improve efficiency, increase revenue, and reduce expenditure to continuously optimize operating conditions[86](index=86&type=chunk) [FINANCIAL REVIEW](index=19&type=section&id=FINANCIAL%20REVIEW) This section provides a detailed review of the group's financial performance for H1 2025, including revenue, gross profit, operating expenses, impairment losses, and net profit - Revenue for the period was **RMB 1,433.8 million**, a **3.3%** decrease compared to H1 2024[87](index=87&type=chunk) - Gross profit was **RMB 298.7 million**, an **11.6%** decrease compared to H1 2024; gross profit margin decreased to approximately **20.8%**[109](index=109&type=chunk) - Selling and marketing expenses decreased by **33.4%** to **RMB 6.4 million**, and administrative expenses decreased by **25.4%** to **RMB 72.9 million**[116](index=116&type=chunk)[117](index=117&type=chunk) - Net impairment losses on financial assets were **RMB 71.6 million**, an increase of **RMB 22.5 million** compared to H1 2024[118](index=118&type=chunk) - Net profit for the period was **RMB 112.2 million**, a **2.8%** increase compared to H1 2024; income tax expense decreased by **43.0%**[126](index=126&type=chunk)[129](index=129&type=chunk) [Revenue](index=19&type=section&id=Revenue) In H1 2025, the group's total revenue was RMB 1,433.8 million, a 3.3% year-on-year decrease, primarily derived from property management services, community value-added services, and non-property owner value-added services - Revenue for the period was **RMB 1,433.8 million**, a **3.3%** decrease compared to H1 2024[87](index=87&type=chunk) Revenue Breakdown by Business Line (as of June 30, 2025) | Business Line | 2025 Revenue (RMB thousand) | 2025 Share (%) | 2024 Revenue (RMB thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 1,154,310 | 80.5 | 1,133,606 | 76.4 | | Community value-added services | 251,231 | 17.5 | 294,163 | 19.8 | | Value-added services to non-property owners | 28,239 | 2.0 | 55,163 | 3.8 | | **Total** | **1,433,780** | **100.0** | **1,482,932** | **100.0** | [PROPERTY MANAGEMENT SERVICES](index=19&type=section&id=PROPERTY%20MANAGEMENT%20SERVICES) Property management service revenue reached RMB 1,154.3 million, growing by 1.8% year-on-year, driven by an increase in total GFA under management, with an average residential property management fee rate of RMB 1.75/sqm/month - Property management service revenue for the period reached **RMB 1,154.3 million**, an increase of **1.8%** compared to H1 2024[92](index=92&type=chunk) - As of June 30, 2025, total GFA under management was **200.1 million sqm**, an increase of **1.7%** compared to December 31, 2024, mainly due to an increase in third-party projects[95](index=95&type=chunk) - The average property management fee rate for residential property projects was approximately **RMB 1.75/sqm/month**[95](index=95&type=chunk) [COMMUNITY VALUE-ADDED SERVICES](index=20&type=section&id=COMMUNITY%20VALUE-ADDED%20SERVICES) Community value-added service revenue decreased by 14.6% to RMB 251.2 million, primarily due to the ongoing downturn in the domestic real estate market affecting smart community solutions and reduced consumer confidence impacting park sales services - Community value-added service revenue for the period was **RMB 251.2 million**, a **14.6%** decrease compared to the same period last year[99](index=99&type=chunk) - The decrease was mainly due to the continuous downturn in the domestic real estate market, leading to a decrease in the group's smart community solutions revenue[100](index=100&type=chunk) - Reduced consumer confidence in the domestic market led to a decrease in the group's park sales service revenue[100](index=100&type=chunk) [VALUE-ADDED SERVICES TO NON-PROPERTY OWNERS](index=21&type=section&id=VALUE-ADDED%20SERVICES%20TO%20NON-PROPERTY%20OWNERS) Value-added services to non-property owners saw a substantial 48.8% decrease in revenue to RMB 28.2 million, mainly attributed to the group's strategic reduction in business scale due to the continuous adjustments in the real estate industry - Value-added service revenue to non-property owners for the period was **RMB 28.2 million**, a **48.8%** decrease compared to the same period last year[101](index=101&type=chunk) - The decrease was mainly due to the continuous adjustments in the real estate industry, leading the group to proactively adjust its value-added businesses and scale back value-added services to non-property owners[104](index=104&type=chunk) - Revenue from pre-delivery services and on-site sales services decreased by **RMB 18.6 million**[104](index=104&type=chunk) [COST OF SALES](index=21&type=section&id=COST%20OF%20SALES) Cost of sales for the period was RMB 1,135.1 million, a 0.9% year-on-year decrease, primarily due to a reduction in certain services provided by the group - Cost of sales for the period was **RMB 1,135.1 million**, a **0.9%** decrease compared to H1 2024[103](index=103&type=chunk) - The decrease was mainly due to a reduction in some of the group's services[105](index=105&type=chunk) - Cost of sales primarily includes employee benefit expenses, subcontracting costs, landscaping and cleaning fees, and cost of goods sold[102](index=102&type=chunk) [GROSS PROFIT AND GROSS PROFIT MARGIN](index=22&type=section&id=GROSS%20PROFIT%20AND%20GROSS%20PROFIT%20MARGIN) The group's gross profit for the period was RMB 298.7 million, an 11.6% year-on-year decrease, with the gross profit margin declining to 20.8% due to lower margins in property management and community value-added services - Gross profit for the period was **RMB 298.7 million**, an **11.6%** decrease compared to H1 2024[109](index=109&type=chunk) - Gross profit margin decreased from approximately **22.8%** in H1 2024 to approximately **20.8%** in the current period, mainly due to a decrease in gross profit margins for property management services and community value-added services[109](index=109&type=chunk) Gross Profit and Gross Profit Margin by Business Line (as of June 30, 2025) | Business Line | 2025 Gross Profit (RMB thousand) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB thousand) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 236,663 | 20.5 | 249,725 | 22.0 | | Community value-added services | 56,682 | 22.6 | 76,776 | 26.1 | | Value-added services to non-property owners | 5,324 | 18.9 | 11,348 | 20.6 | | **Total** | **298,669** | **20.8** | **337,849** | **22.8** | [SELLING AND MARKETING EXPENSES](index=23&type=section&id=SELLING%20AND%20MARKETING%20EXPENSES) Selling and marketing expenses for the period decreased by approximately 33.4% to RMB 6.4 million, representing about 0.4% of revenue, primarily due to strict control over sales expenditures - Selling and marketing expenses for the period were **RMB 6.4 million**, a decrease of approximately **33.4%** compared to the same period last year[116](index=116&type=chunk) - This decrease was mainly due to the company's strict control over various sales expenses[119](index=119&type=chunk) [ADMINISTRATIVE EXPENSES](index=23&type=section&id=ADMINISTRATIVE%20EXPENSES) Administrative expenses for the period decreased by 25.4% to RMB 72.9 million, representing about 5.1% of revenue, as a result of the group's measures to control administrative costs - Administrative expenses for the period were **RMB 72.9 million**, a **25.4%** decrease compared to H1 2024[117](index=117&type=chunk) - This accounted for approximately **5.1%** of the group's revenue, a decrease of **1.5 percentage points** compared to H1 2024[120](index=120&type=chunk) - The decrease was mainly due to the group's various measures to control administrative expenses, thereby reducing costs[120](index=120&type=chunk) [NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS](index=23&type=section&id=NET%20IMPAIRMENT%20LOSSES%20ON%20FINANCIAL%20ASSETS) Net impairment losses on financial assets increased by RMB 22.5 million to RMB 71.6 million, primarily due to increased credit risk on receivables amidst the downturn in the domestic real estate sector - Net impairment losses on financial assets for the period were **RMB 71.6 million**, an increase of **RMB 22.5 million** compared to H1 2024[118](index=118&type=chunk) - This was mainly due to the downturn in the domestic real estate sector, leading to an increase in credit risk on receivables[121](index=121&type=chunk) [OTHER INCOME](index=24&type=section&id=OTHER%20INCOME) Other income for the period was RMB 2.1 million, a 34.5% year-on-year decrease, mainly attributable to reduced interest income from third-party loans - Other income for the period was **RMB 2.1 million**, a **34.5%** decrease compared to H1 2024[123](index=123&type=chunk) - This was mainly due to a decrease in interest income from third-party loans obtained during the period[127](index=127&type=chunk) [OTHER GAINS/(LOSSES) — NET](index=24&type=section&id=OTHER%20GAINS%2F(LOSSES)%20%E2%80%94%20NET) Net other gains for the period amounted to RMB 3.7 million, a positive turnaround from a net loss of RMB 3.6 million in H1 2024, primarily due to gains from the disposal of subsidiaries - Net other gains for the period were **RMB 3.7 million**, compared to a net loss of **RMB 3.6 million** in the same period last year[124](index=124&type=chunk) - This was mainly due to gains from the disposal of subsidiaries during the period[128](index=128&type=chunk) [INCOME TAX EXPENSES](index=24&type=section&id=INCOME%20TAX%20EXPENSES) Income tax expense for the period decreased by 43.0% to RMB 40.6 million, with the effective tax rate falling to 26.6% due to increased withholding tax provisions in the prior period - Income tax expense for the period was **RMB 40.6 million**, a **43.0%** decrease compared to the same period last year[125](index=125&type=chunk) - The income tax rate for the period was **26.6%** (H1 2024: **39.5%**), with the decrease mainly due to increased withholding tax provisions for dividends distributed by the group's domestic companies to overseas companies in H1 2024[129](index=129&type=chunk) [PROFITS](index=24&type=section&id=PROFITS) The group's net profit for the period was RMB 112.2 million, with a net profit margin of 7.8%, and core net profit attributable to shareholders remained largely stable at RMB 147.9 million - Net profit for the period was **RMB 112.2 million**, with a net profit margin of **7.8%**[126](index=126&type=chunk) - Profit attributable to owners of the Company was **RMB 106.2 million**[130](index=130&type=chunk) - Core net profit attributable to owners of the Company was approximately **RMB 147.9 million**, largely stable compared to H1 2024[130](index=130&type=chunk) - Basic earnings per share were **RMB 0.08**[130](index=130&type=chunk) [FINANCIAL RESOURCES MANAGEMENT AND CAPITAL STRUCTURE](index=25&type=section&id=FINANCIAL%20RESOURCES%20MANAGEMENT%20AND%20CAPITAL%20STRUCTURE) As of June 30, 2025, the group's cash and cash equivalents decreased, bank borrowings remained stable, and the capital-to-debt ratio was maintained, with an interim dividend declared - As of June 30, 2025, the group's cash and cash equivalents were approximately **RMB 831.6 million** (December 31, 2024: approximately **RMB 1,190.1 million**)[131](index=131&type=chunk) - As of June 30, 2025, the group had total bank borrowings of **RMB 52.0 million**, consistent with the end of 2024[131](index=131&type=chunk) - As of June 30, 2025, the capital-to-debt ratio was **2.6%**, consistent with December 31, 2024[132](index=132&type=chunk) - The Board has declared an interim dividend totaling approximately **RMB 39.4 million** to shareholders[131](index=131&type=chunk) [TRADE AND OTHER RECEIVABLES AND PREPAYMENTS](index=25&type=section&id=TRADE%20AND%20OTHER%20RECEIVABLES%20AND%20PREPAYMENTS) As of June 30, 2025, total trade and other receivables and prepayments increased by 3.6% to RMB 2,955.3 million, primarily due to an increase in receivables from property owners - As of June 30, 2025, trade and other receivables and prepayments were **RMB 2,955.3 million**, an increase of **3.6%** compared to December 31, 2024[133](index=133&type=chunk) - The increase was mainly due to an increase in amounts receivable from property owners as GFA under management continuously increased[136](index=136&type=chunk) [TRADE AND OTHER PAYABLES](index=25&type=section&id=TRADE%20AND%20OTHER%20PAYABLES) As of June 30, 2025, total trade and other payables remained largely stable at RMB 1,304.0 million compared to the end of 2024 - As of June 30, 2025, trade and other payables amounted to **RMB 1,304.0 million**, largely stable compared to December 31, 2024[134](index=134&type=chunk)[137](index=137&type=chunk) [BORROWINGS](index=26&type=section&id=BORROWINGS) As of June 30, 2025, total borrowings remained stable at RMB 52.0 million, primarily consisting of bank borrowings incurred by Henan Tianming Property Management Co., Ltd. before its acquisition - As of June 30, 2025, borrowings were **RMB 52.0 million**, remaining stable compared to December 31, 2024[139](index=139&type=chunk) - This borrowing was a bank loan incurred by Henan Tianming Property Management Co., Ltd. before its acquisition by the group[141](index=141&type=chunk) [PROCEEDS FROM THE LISTING](index=26&type=section&id=PROCEEDS%20FROM%20THE%20LISTING) The net proceeds from the listing were approximately RMB 2,088.7 million, with RMB 655.9 million remaining unutilized, and the board has revised the allocation plan to align with business strategies - The net proceeds from the listing were approximately **RMB 2,088.7 million**[140](index=140&type=chunk) - As of June 30, 2025, the group had utilized approximately **RMB 1,432.8 million** of the net proceeds, with an unutilized amount of approximately **RMB 655.9 million**[142](index=142&type=chunk) - The Board resolved to change the proposed use and corresponding timetable for the unutilized net proceeds in response to recent business environment changes and the company's business strategy adjustments[142](index=142&type=chunk) Revised Allocation and Use of Net Proceeds from Listing (as of June 30, 2025) | Main Category | Revised Allocated Net Proceeds (RMB thousand) | Actual Use as of June 30, 2025 (RMB thousand) | Unused Net Proceeds as of June 30, 2025 (RMB thousand) | Updated Timeline | | :--- | :--- | :--- | :--- | :--- | | 1. Strategic investments, collaborations, and acquisitions | 132,723 | 132,723 | – | – | | 2. Strengthening the Jianye+ platform to optimize user experience | 505,889 | 146,303 | 359,586 | Before end of December 2025 | | 3. Investing in advanced information technology systems | 346,575 | 192,022 | 154,553 | Before end of December 2025 | | 4. General working capital | 656,189 | 656,189 | – | Before end of December 2025 | | 5. Renovation and upgrading of old communities | 149,106 | 7,359 | 141,747 | Before end of December 2025 | | 6. Developing value-added service businesses | 298,212 | 298,212 | – | Before end of December 2025 | | **Total** | **2,088,694** | **1,432,808** | **655,886** | | [PLEDGE OF ASSETS](index=29&type=section&id=PLEDGE%20OF%20ASSETS) As of June 30, 2025, the group had not pledged any assets as security for loans - As of June 30, 2025, the group had not pledged any assets as security for loans[150](index=150&type=chunk)[156](index=156&type=chunk) [MAJOR ACQUISITION AND DISPOSALS](index=29&type=section&id=MAJOR%20ACQUISITION%20AND%20DISPOSALS) The group did not undertake any major acquisitions or disposals of subsidiaries and associates during the period - The group did not undertake any major acquisitions or disposals of subsidiaries and associates during the period[151](index=151&type=chunk)[157](index=157&type=chunk) [MAJOR INVESTMENT](index=29&type=section&id=MAJOR%20INVESTMENT) As of June 30, 2025, the group did not hold any major investments - As of June 30, 2025, the group did not hold any major investments[152](index=152&type=chunk)[157](index=157&type=chunk) [CONTINGENT LIABILITIES AND CAPITAL COMMITMENT](index=29&type=section&id=CONTINGENT%20LIABILITIES%20AND%20CAPITAL%20COMMITMENT) As of June 30, 2025, the group had no significant contingent liabilities or capital commitments - As of June 30, 2025, the group had no significant contingent liabilities or capital commitments[153](index=153&type=chunk)[158](index=158&type=chunk) [FOREIGN EXCHANGE RISK](index=29&type=section&id=FOREIGN%20EXCHANGE%20RISK) The group's primary operations are in China, with most revenues and expenses denominated in RMB, thus not exposed to significant foreign exchange fluctuation risks - The group's primary operations are in China, with most revenues and expenses denominated in RMB, and is not exposed to significant risks directly related to foreign exchange rate fluctuations[154](index=154&type=chunk)[159](index=159&type=chunk) - Currently, no contracts have been entered into to hedge foreign exchange risk, but management will continue to monitor and take prudent measures to mitigate foreign exchange risk[159](index=159&type=chunk) [EMPLOYEES AND REMUNERATION POLICY](index=30&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICY) As of June 30, 2025, the group had 5,516 employees and continued to optimize its organizational structure, talent management, and remuneration policies to enhance overall efficiency and competitiveness - As of June 30, 2025, the group had **5,516** employees[161](index=161&type=chunk) - The company continues to promote the flattening of its organizational structure to enhance overall organizational efficiency and responsiveness[161](index=161&type=chunk) - In talent management, the group adheres to the principle of balancing professional ethics and work ability, strengthens internal training, encourages continuous education, and designs clear career progression paths[162](index=162&type=chunk)[164](index=164&type=chunk) - The remuneration structure closely monitors external market dynamics, establishes an efficient performance appraisal mechanism, and closely links employee performance with remuneration[163](index=163&type=chunk)[165](index=165&type=chunk) [DISCLOSURE OF INTERESTS](index=30&type=section&id=DISCLOSURE%20OF%20INTERESTS) This section details the interests and short positions of directors, chief executives, and substantial shareholders in the company's shares, along with information on the 2023 Share Award Scheme - As of June 30, 2025, directors and chief executives held long positions in the company's shares and underlying shares[167](index=167&type=chunk)[168](index=168&type=chunk) - The 2023 Share Award Scheme aims to align the interests of eligible participants with the group through share ownership, dividends, and share appreciation, and to encourage and retain their contributions to the group's long-term development and profitability[173](index=173&type=chunk)[177](index=177&type=chunk) - As of June 30, 2025, substantial shareholder Mr. Hu Baosen and his controlled corporation, Joyful Ascent Limited, held a **65.27%** equity interest in the company[218](index=218&type=chunk) [DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES OR DEBENTURES OF THE COMPANY OR ITS ASSOCIATED CORPORATIONS](index=31&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVES'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES,%20UNDERLYING%20SHARES%20OR%20DEBENTURES%20OF%20THE%20COMPANY%20OR%20ITS%20ASSOCIATED%20CORPORATIONS) As of June 30, 2025, the company's directors and chief executives held long positions in the company's shares and underlying shares, including awards granted under the 2023 Share Award Scheme Long Positions of Directors or Chief Executives in the Company's Shares and Underlying Shares (as of June 30, 2025) | Name of Director or Chief Executive | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Wang Jun | Interest in controlled corporation | 44,640,000 | 3.44% | | Mr. Wang Jun | Beneficial owner | 4,358,000 | 0.34% | | Mr. Guo Liyuan | Beneficial owner | 852,236 | 0.07% | | Mr. Shi Shushan | Beneficial owner | 900,000 | 0.07% | - These share interests include share awards of the company granted and vested to each director under the 2023 Share Award Scheme[178](index=178&type=chunk) [SHARE AWARD SCHEME](index=32&type=section&id=SHARE%20AWARD%20SCHEME) The 2023 Share Award Scheme aims to incentivize and retain eligible participants through share ownership, with a total share pool not exceeding 10% of issued shares and vesting subject to performance targets - The 2023 Share Award Scheme aims to align the interests of eligible participants with the group through share ownership, dividends, and share appreciation, and to encourage and retain their contributions to the group's long-term development and profitability[173](index=173&type=chunk)[177](index=177&type=chunk) - The total number of shares that can be issued under the scheme will not exceed **127,872,600** shares, representing no more than **10%** of the total issued shares as of the adoption date[180](index=180&type=chunk)[183](index=183&type=chunk) - The vesting of awarded shares is subject to the fulfillment and/or waiver of all vesting conditions and performance targets stated in the award letter, including financial and management objectives[188](index=188&type=chunk)[191](index=191&type=chunk) - During the period, **6,060,000** awarded shares vested, and a total expense of **RMB 4.6 million** was recognized for employee services under the 2023 Share Award Scheme[203](index=203&type=chunk)[201](index=201&type=chunk) [2023 Share Award Scheme](index=32&type=section&id=2023%20Share%20Award%20Scheme) The 2023 Share Award Scheme was adopted and approved on August 7, 2023, with awarded shares to be settled through new share allotments or market purchases of existing shares - The 2023 Share Award Scheme was adopted and approved by shareholders on August 7, 2023[172](index=172&type=chunk) - Awarded shares will be settled by new shares allotted and issued by the company to the trustee or by existing shares acquired by the trustee in the market at prevailing market prices[176](index=176&type=chunk) [Purpose](index=32&type=section&id=Purpose) The 2023 Share Award Scheme aims to align eligible participants' interests with the group through share ownership, dividends, and share appreciation, while encouraging and retaining their contributions to long-term development and profitability - Aims to align the interests of eligible participants with the group through share ownership, dividends and other distributions paid on shares, and/or share appreciation[173](index=173&type=chunk)[177](index=177&type=chunk) - To encourage and retain eligible participants to contribute to the long-term development and profitability of the group[177](index=177&type=chunk) [Participants](index=33&type=section&id=Participants) Eligible participants include directors and employees who have contributed or will contribute to the group, excluding those who have resigned or whose employment contracts have been terminated, or those prohibited by local laws - Eligible participants include only directors and employees of the group who, in the absolute discretion of the Board, have contributed (and will continue to contribute) or will contribute to the group[179](index=179&type=chunk)[182](index=182&type=chunk) - Excludes employees or directors who have tendered their resignation or whose employment contracts have been terminated, and individuals whose participation is prohibited or deemed inconvenient by local laws or regulations or the Board[182](index=182&type=chunk) [Award of Shares and pool of awarded Shares](index=33&type=section&id=Award%20of%20Shares%20and%20pool%20of%20awarded%20Shares) The total number of shares that can be issued under the 2023 Share Award Scheme and other share schemes will not exceed 10% of the total issued shares as of the adoption date, capped at 127,872,600 shares - The total number of shares that may be issued for all awards under the 2023 Share Award Scheme and other share schemes of the company will not exceed **127,872,600** shares[180](index=180&type=chunk) - This represents no more than **10%** of the total issued shares as of the adoption date of the 2023 Share Award Scheme[183](index=183&type=chunk) [Maximum entitlement of each participant](index=33&type=section&id=Maximum%20entitlement%20of%20each%20participant) The number of shares awarded to a selected participant within any 12-month period, including options, shall not exceed 1% of the company's issued share capital at the scheme's adoption date, subject to Listing Rules - The maximum number of shares that may be awarded to a selected participant within any 12-month period ending on the award date, together with any shares granted under any share option scheme, shall not exceed **1%** of the company's issued share capital as of the adoption date of the 2023 Share Award Scheme[181](index=181&type=chunk)[184](index=184&type=chunk) - Any award of shares to any director, chief executive, or substantial shareholder of the company or any of their respective associates requires prior approval from the independent non-executive directors[186](index=186&type=chunk) - If the award of shares results in the total exceeding **0.1%** of the issued shares, it requires approval from shareholders in a general meeting[186](index=186&type=chunk) [Vesting of the awarded Shares and performance targets](index=35&type=section&id=Vesting%20of%20the%20awarded%20Shares%20and%20performance%20targets) Awarded shares will vest according to the vesting schedule in the award letter, contingent upon meeting specified conditions and performance targets, which may include financial and management objectives - Each awarded share will vest to the selected participant according to the applicable vesting schedule set out in the award letter, provided that all vesting conditions contained therein have been met and/or waived[188](index=188&type=chunk)[191](index=191&type=chunk) - Performance targets may include financial targets and management targets, which will be determined based on individual performance, group performance, and/or the performance of the business groups, business units, business lines, functional departments, projects, and/or geographical regions managed by the selected participant[189](index=189&type=chunk)[191](index=191&type=chunk) - The vesting date for any award shall not be less than **12 months** from the award date, except for employees, where it may be less than **12 months** under specific circumstances[193](index=193&type=chunk)[194](index=194&type=chunk) [Purchase price of awarded Shares](index=37&type=section&id=Purchase%20price%20of%20awarded%20Shares) The purchase price of awarded shares, if any, will be determined by the Board based on factors such as the prevailing closing price, award purpose, and participant characteristics, balancing incentives with shareholder interests - The purchase price (if any) of the awarded shares will be determined by the Board from time to time based on considerations such as the prevailing closing price of the shares, the purpose of the award, and the characteristics and profile of the selected participant[195](index=195&type=chunk)[199](index=199&type=chunk) - This discretion provides the Board with flexibility to stipulate a purchase price for awarded shares when necessary, while balancing the purpose of the award and the interests of shareholders[199](index=199&type=chunk) [Remaining life](index=37&type=section&id=Remaining%20life) The 2023 Share Award Scheme is valid for ten years from its adoption date of August 7, 2023, with approximately 8 years remaining as of the interim report date - The 2023 Share Award Scheme will be valid and effective for a period of **ten years** from its adoption date, which was August 7, 2023[196](index=196&type=chunk)[200](index=200&type=chunk) - As of the date of this interim report, the remaining life of the 2023 Share Award Scheme is approximately **8 years**[200](index=200&type=chunk) [Movements of awarded Shares](index=37&type=section&id=Movements%20of%20awarded%20Shares) On May 29, 2023, the Board resolved to award 21,800,000 shares to 16 employee participants; during the period, 6,060,000 shares vested, 1,120,000 lapsed, and RMB 4.6 million in expenses were recognized - On May 29, 2023, the Board resolved to award a total of **21,800,000** awarded shares to a total of **16** employee participants (including **4** directors) free of charge[197](index=197&type=chunk)[201](index=201&type=chunk) - During the period, **6,060,000** shares vested, and **1,120,000** shares lapsed[203](index=203&type=chunk)[215](index=215&type=chunk) - For the six months ended June 30, 2025, a total expense of **RMB 4.6 million** was recognized for employee services under the 2023 Share Award Scheme[198](index=198&type=chunk)[201](index=201&type=chunk) Movements of 2023 Awarded Shares During the Period (as of June 30, 2025) | Selected Participant | Unvested as of January 1, 2025 | Granted During the Period | Vested During the Period | Lapsed/Cancelled During the Period | Unvested as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | 7,720,000 | – | (3,480,000) | – | 4,240,000 | | Other employee participants | 8,440,000 | – | (2,580,000) | (1,120,000) | 4,740,000 | | **Total** | **16,160,000** | **–** | **(6,060,000)** | **(1,120,000)** | **8,980,000** | [SUBSTANTIAL SHAREHOLDERS' INTERESTS IN THE SHARE CAPITAL OF THE COMPANY](index=41&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20IN%20THE%20SHARE%20CAPITAL%20OF%20THE%20COMPANY) As of June 30, 2025, Mr. Hu Baosen and his controlled corporation, Joyful Ascent Limited, held 65.27% of the company's issued share capital, with other substantial shareholders also disclosed Long Positions of Substantial Shareholders in the Company's Shares (as of June 30, 2025) | Name of Shareholder | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Hu Baosen | Interest in controlled corporation | 848,092,944 | 65.27% | | Joyful Ascent Limited | Beneficial owner | 848,092,944 | 65.27% | | Ms. Li Lin | Spouse's interest | 848,092,944 | 65.27% | | Gaoling Fund, L.P. | Beneficial owner | 84,857,000 | 6.53% | | Hillhouse Capital Advisors, Ltd. | Interest in controlled corporation | 84,867,000 | 6.53% | - Mr. Hu Baosen holds the entire issued share capital of Joyful Ascent Limited and is deemed to have an interest in the shares held by it[223](index=223&type=chunk) - Ms. Li Lin, being the spouse of Mr. Hu Baosen, is deemed to have an interest in the same number of shares in which Mr. Hu Baosen has an interest[223](index=223&type=chunk) [CORPORATE GOVERNANCE AND OTHER INFORMATION](index=42&type=section&id=CORPORATE%20GOVERNANCE%20AND%20OTHER%20INFORMATION) This section outlines the company's corporate governance practices, compliance with the Model Code, share repurchases, changes in director information, and interim dividend declaration - The company has complied with all code provisions and mandatory disclosure requirements of the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are combined[225](index=225&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer helps ensure consistent leadership within the group and maximizes the effectiveness and efficiency of overall planning and strategy execution[226](index=226&type=chunk)[228](index=228&type=chunk) - The company confirmed that all directors have complied with the Model Code for Securities Transactions by Directors of Listed Issuers during the period[229](index=229&type=chunk)[231](index=231&type=chunk) - For the six months ended June 30, 2025, the company repurchased a total of **138,000** shares on the Stock Exchange[230](index=230&type=chunk)[232](index=232&type=chunk) - The Board has resolved to recommend the declaration and payment of an interim dividend of **HK$0.033** per share for the six months ended June 30, 2025[242](index=242&type=chunk)[245](index=245&type=chunk) [CORPORATE GOVERNANCE PRACTICES](index=43&type=section&id=CORPORATE%20GOVERNANCE%20PRACTICES) The company generally complies with the Corporate Governance Code, with a deviation where the Chairman and CEO roles are combined, which the board believes enhances leadership consistency and efficiency - The company has complied with all code provisions and mandatory disclosure requirements of the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are combined and held by Mr. Wang Jun[225](index=225&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer helps ensure consistent leadership within the group and maximizes the effectiveness and efficiency of overall planning and strategy execution[226](index=226&type=chunk)[228](index=228&type=chunk) [MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS](index=44&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors' dealings in the company's securities[229](index=229&type=chunk)[231](index=231&type=chunk) - Following specific enquiries made to each director, the company confirmed that all directors have complied with the required standards set out in the Model Code throughout the period[231](index=231&type=chunk) [PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY](index=44&type=section&id=PURCHASE,%20SALE%20OR%20REDEMPTION%20OF%20LISTED%20SECURITIES%20OF%20THE%20COMPANY) During the six months ended June 30, 2025, the company repurchased 138,000 shares on the Stock Exchange for HK$150,500, which remained uncancelled at period-end - For the six months ended June 30, 2025, the company repurchased a total of **138,000** shares on the Stock Exchange[230](index=230&type=chunk)[232](index=232&type=chunk) - The total consideration paid was **HK$150,500**[233](index=233&type=chunk) - As of June 30, 2025, these **138,000** repurchased shares had not yet been cancelled[230](index=230&type=chunk) [CHANGES OF INFORMATION IN RESPECT OF DIRECTORS](index=45&type=section&id=CHANGES%20OF%20INFORMATION%20IN%20RESPECT%20OF%20DIRECTORS) Several changes in director information occurred during the period, including resignations of Mr. Shi Shushan and Ms. Dai Jiling, and appointments of Mr. Wang Jun as CEO and Mr. Guo Liyuan as Executive Director and CFO - Mr. Shi Shushan resigned as Executive Director, effective February 1, 2025[240](index=240&type=chunk) - Ms. Dai Jiling resigned as Executive Director and Chief Executive Officer, effective April 30, 2025[240](index=240&type=chunk) - Mr. Wang Jun was appointed Chief Executive Officer, effective April 30, 2025[240](index=240&type=chunk) - Mr. Guo Liyuan was appointed Executive Director and Chief Financial Officer, effective April 30, 2025[240](index=240&type=chunk) - Ms. Luo Ying resigned from all positions at GL China Equity HK Management Limited on June 30, 2025[240](index=240&type=chunk) [REVIEW OF INTERIM RESULTS BY AUDIT COMMITTEE](index=45&type=section&id=REVIEW%20OF%20INTERIM%20RESULTS%20BY%20AUDIT%20COMMITTEE) The company's Audit Committee discussed and reviewed the unaudited interim condensed consolidated financial statements for H1 2025 with management and approved the interim results - The company's Audit Committee discussed the accounting principles and policies adopted by the group with management and reviewed the group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025[237](index=237&type=chunk)[239](index=239&type=chunk) - The Audit Committee has agreed with the company's management on the group's interim results for the period[239](index=239&type=chunk) [EVENTS AFTER THE REPORTING PERIOD](index=46&type=section&id=EVENTS%20AFTER%20THE%20REPORTING%20PERIOD) As of the report date, no significant e

[Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section details the company's board, governance, legal and administrative information, and listing details [Board of Directors and Corporate Governance Structure](index=3&type=section&id=2.1%20%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E6%9E%B6%E6%A7%8B) This section lists the company's board members, authorized representatives, and the composition of various committees - The Chairman of the Board is **Mr. Xiang Jie**, and the Chief Executive Officer is **Mr. Gong Renyuan**[3](index=3&type=chunk) - **Mr. Gong Renyuan** resigned as a member of the Nomination Committee on **June 6, 2025**, and **Ms. Cai Ge** was appointed[3](index=3&type=chunk) - The Chairman of the Audit Committee is **Mr. Chen Shimin**, the Remuneration Committee is **Mr. Liang Mingshu**, the Nomination Committee is **Mr. Zhang Xuejun**, and the Strategy and Sustainable Development Committee is **Mr. Xiang Jie**[3](index=3&type=chunk) [Legal and Administrative Information](index=3&type=section&id=2.2%20%E6%B3%95%E5%BE%8B%E5%8F%8A%E8%A1%8C%E6%94%BF%E4%BF%A1%E6%81%AF) This section provides details on the company's legal counsel, external auditor, registered office, headquarters, and listing information - The Company Secretary is **Ms. He Lina**, legal counsel is **Loeb & Loeb LLP**, and external auditor is **Ernst & Young**[3](index=3&type=chunk) - The company is registered in the **Cayman Islands**, headquartered in **Beijing, China**, with its principal place of business in Hong Kong at **Times Square, Causeway Bay**[3](index=3&type=chunk)[4](index=4&type=chunk) - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, stock code **580**[4](index=4&type=chunk) [Chairman's Report](index=4&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) This report provides an overview of the company's performance, strategic developments, and future outlook [2025 First Half Performance Overview](index=4&type=section&id=3.1%202025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A7%88) The group achieved significant revenue and net profit growth in H1 2025, driven by conventional and flexible DC transmission, new energy generation, and energy storage businesses 2025 First Half Key Financial Indicators | Indicator | 2025 First Half (RMB million) | Year-on-year Growth Rate | | :--- | :--- | :--- | | Revenue | 888.3 | 35.5% | | Net Profit Attributable to Parent Company | 93.8 | 178.3% | - Revenue in the flexible DC transmission sector increased by **approximately 123%** year-on-year, primarily due to the delivery of products for projects such as the **Saudi Central-South ±500kV Flexible DC Transmission Converter Station** and the **Gansu-Zhejiang ±800kV UHVDC Transmission Project**[6](index=6&type=chunk) - Delivery volume in the conventional DC transmission sector decreased compared to H1 2024, but the **Southeast Tibet to Guangdong-Hong Kong-Macao Greater Bay Area** and **Inner Mongolia West to Beijing-Tianjin-Hebei UHVDC Transmission Projects** have been approved, expected to drive demand for power electronic devices[6](index=6&type=chunk) [Power Semiconductor Business Development](index=4&type=section&id=3.2%20%E5%8A%9F%E7%8E%87%E5%8D%8A%E5%B0%8E%E9%AB%94%E6%A5%AD%E5%8B%99%E7%99%BC%E5%B1%95) The group's self-developed power semiconductor business saw substantial revenue growth, enhancing R&D capabilities and supply chain security through an acquisition 2025 First Half Power Semiconductor Revenue | Indicator | 2025 First Half (RMB million) | Year-on-year Growth Rate | | :--- | :--- | :--- | | Self-developed Power Semiconductor Revenue | 53.1 | 231.4% | - New products include the **i23 series 7th generation IGBT chips** and multiple **IGBT modules**, enriching product variety and expanding market coverage[7](index=7&type=chunk) - Saichim Power Semiconductor will acquire **100% equity of Hunan Hongan Microelectronics Co., Ltd.**, to be paid by issuing new registered capital representing **approximately 9.00%**, which will enhance R&D capabilities, supply chain security, and reduce costs[7](index=7&type=chunk) [Outlook and Appreciation](index=4&type=section&id=3.3%20%E5%B1%95%E6%9C%9B%E8%88%87%E8%87%B4%E8%AC%9D) The group plans to continue delivering existing orders, secure new UHVDC projects, and expand power semiconductor R&D and market presence in emerging sectors - In the second half, the group will continue to deliver products for projects such as the **Shaanxi-Anhui Project**, **Saudi Central-South Project**, and **Gansu-Zhejiang Power Transmission Project**[8](index=8&type=chunk) - The group aims to secure new orders in bids for the **Southeast Tibet Project**, **Inner Mongolia West to Beijing-Tianjin-Hebei Project**, and other newly approved **UHVDC projects**[8](index=8&type=chunk) - The group will continue to intensify R&D and market expansion for self-developed power semiconductor products, focusing on emerging fields such as **electrified vessels** and **controlled nuclear fusion**[8](index=8&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides a detailed review of the group's operational and financial performance, including market segment analysis, financial position, and future outlook [Business Review](index=5&type=section&id=4.1%20%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5) The group's total revenue increased by 35.5% to RMB 888.3 million in H1 2025, but the average gross profit margin declined, with the domestic market and power transmission remaining key contributors 2025 First Half Domestic and Overseas Market Performance | Market | 2025 Revenue (RMB thousand) | 2025 Gross Profit Margin | 2024 Revenue (RMB thousand) | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Domestic Market | 845,968 | 24.7% | 617,047 | 35.1% | | Overseas Market | 42,352 | 47.4% | 38,711 | 46.9% | | Total | 888,320 | 25.8% | 655,758 | 35.8% | - Total revenue increased by **35.5%** year-on-year, but the average gross profit margin decreased from **35.8% to 25.8%**, primarily due to a reduced proportion of high-margin products[11](index=11&type=chunk)[26](index=26&type=chunk) [Domestic Market Performance](index=5&type=section&id=4.1.1%20%E5%9B%BD%E5%86%85%E5%B8%82%E5%9C%BA%E4%B8%9A%E7%BB%A9) Domestic market revenue grew by 36.9%, with power transmission remaining core, while electrified transportation declined and industrial and other sectors saw significant growth 2025 First Half Domestic Market Performance by Application Sector | Application Sector | 2025 Revenue (RMB thousand) | 2025 Gross Profit Margin | 2024 Revenue (RMB thousand) | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Power Transmission and Distribution | 466,654 | 35.4% | 358,098 | 47.8% | | Electrified Transportation | 23,641 | 15.6% | 31,840 | 23.1% | | Industrial and Other | 355,673 | 11.3% | 227,109 | 16.7% | | Total | 845,968 | 24.7% | 617,047 | 35.1% | - The revenue share of the power transmission and distribution sector decreased from **58% to 55%**, electrified transportation from **5% to 3%**, and industrial and other sectors increased from **37% to 42%**[13](index=13&type=chunk)[14](index=14&type=chunk) [Power Transmission and Distribution Sector](index=6&type=section&id=4.1.1.1%20%E8%BE%93%E9%85%8D%E7%94%B5%E9%A2%86%E5%9F%9F) Revenue in the power transmission and distribution sector increased by 30%, driven by a 123% surge in flexible DC transmission, despite a 39% decrease in conventional DC transmission 2025 First Half Power Transmission and Distribution Sector Performance | Sub-sector | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Power Transmission and Distribution Sector | 466,654 | 358,098 | 30% | | Conventional DC Transmission | 89,205 | 146,945 | -39% | | Flexible DC Transmission | 295,960 | 132,914 | 123% | | Other Power Transmission and Distribution | 81,489 | 78,239 | 4% | - Flexible DC transmission revenue growth was primarily due to order deliveries for the **Saudi Central-South Project**, **Gansu-Zhejiang Power Transmission Project**, and **Peru/Chile Project**[16](index=16&type=chunk) - Conventional DC transmission revenue decreased mainly due to fewer order products delivered compared to the prior period in 2024[16](index=16&type=chunk) [Electrified Transportation Sector](index=7&type=section&id=4.1.1.2%20%E7%94%B5%E6%B0%94%E5%8C%96%E4%BA%A4%E9%80%9A%E9%A2%86%E5%9F%9F) Revenue in the electrified transportation sector decreased by 26%, primarily due to significant declines in rail transit and electric vehicle businesses, though other transportation areas doubled 2025 First Half Electrified Transportation Sector Performance | Sub-sector | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Electrified Transportation | 23,641 | 31,840 | -26% | | Rail Transit | 17,532 | 27,712 | -37% | | Electric Vehicles | 44 | 1,097 | -96% | | Other Transportation | 6,065 | 3,031 | 100% | - Rail transit revenue decreased by **37%**, mainly due to reduced orders from rolling stock manufacturers; electric vehicle revenue decreased by **96%**, primarily due to fewer industry orders[19](index=19&type=chunk) - Other transportation revenue increased by **100%**, mainly due to increased orders in the electrified vessel industry[19](index=19&type=chunk) [Industrial and Other Sectors](index=7&type=section&id=4.1.1.3%20%E5%B7%A5%E4%B8%9A%E5%8F%8A%E5%85%B6%E4%BB%96%E9%A2%86%E5%9F%9F) Revenue in the industrial and other sectors surged by 57%, driven by increased sales of self-developed power semiconductors and the scaling of new energy power station construction 2025 First Half Industrial and Other Sectors Performance | Sub-sector | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Industrial and Other | 355,673 | 227,109 | 57% | | Industrial Control | 196,368 | 151,130 | 30% | | New Energy Generation and Storage | 156,382 | 75,345 | 108% | | Research Institutes and Other | 2,923 | 634 | 361% | - New energy generation and storage revenue increased by **108%**, and research institutes and other revenue increased by **361%**[20](index=20&type=chunk) - Revenue growth was primarily due to increased sales of self-developed power semiconductors, laminated busbars, and DC-link capacitors, as well as higher revenue from new energy power station construction-related businesses[21](index=21&type=chunk) [Overseas Market Performance](index=8&type=section&id=4.1.2%20%E5%9B%BD%E5%A4%96%E5%B8%82%E5%9C%BA%E4%B8%9A%E7%BB%A9) Overseas market revenue increased by 9%, primarily due to higher sales of laminated busbars, DC-link capacitors, and solid-state DC circuit breakers 2025 First Half Overseas Market Performance | Category | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Overseas Market | 42,352 | 38,711 | 9% | | Domestic Subsidiary Products | 4,916 | 2,595 | 89% | | Overseas Subsidiary Products | 37,436 | 36,116 | 4% | - Domestic subsidiary product revenue in overseas markets increased by **89%**, while overseas subsidiary product revenue increased by **4%**[23](index=23&type=chunk) [Financial Review](index=8&type=section&id=4.2%20%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B5) The group's H1 2025 revenue grew by 35.5%, but gross margin declined due to a lower proportion of high-margin products, while profit before tax and profit attributable to owners significantly increased, mainly from other income and gains 2025 First Half Key Financial Indicators Changes | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 888.3 | 655.8 | 35.5% | | Cost of Sales | 659.1 | 421.0 | 56.6% | | Gross Profit | 229.3 | 234.8 | -2.3% | | Gross Profit Margin | 25.8% | 35.8% | -10.0pp | | Other Income and Gains | 130.7 | 34.3 | 281.0% | | Selling and Distribution Costs | 60.9 | 47.9 | 27.1% | | Administrative Expenses | 106.1 | 83.7 | 26.8% | | Research and Development Costs | 67.9 | 67.8 | 0.1% | | Other Expenses and Losses | 3.5 | 24.9 | -85.9% | | Finance Costs | 8.8 | 8.5 | 3.5% | | Profit Before Tax | 112.8 | 36.3 | 210.7% | | Income Tax Expense | 27.3 | 15.4 | 77.3% | | Profit Attributable to Owners of Parent | 93.8 | 33.7 | 178.3% | | Net Profit Margin | 10.6% | 5.1% | +5.5pp | - Other income and gains significantly increased by **281.0%**, primarily due to fair value gains on forward foreign exchange contracts and exchange gains[27](index=27&type=chunk) - Other expenses and losses decreased by **85.9%**, mainly due to exchange rate fluctuations[32](index=32&type=chunk) [Balance Sheet Analysis](index=9&type=section&id=4.2.1%20%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E5%88%86%E6%9E%90) The group's inventory and trade receivables and bills decreased, with shorter turnover days, indicating improved operational efficiency, while trade payables and bills slightly increased 2025 First Half Balance Sheet Key Indicators | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Inventory | 253.9 | 289.9 | -12.4% | | Average Inventory Turnover Days | 82 days | 94 days | -12 days | | Trade and Bills Receivables | 1,147.1 | 1,161.2 | -1.2% | | Average Turnover Days | 204 days | 233 days | -29 days | | Trade and Bills Payables | 434.0 | 416.7 | 4.2% | | Average Turnover Days | 116 days | 120 days | -4 days | [Liquidity and Financial Resources](index=10&type=section&id=4.2.2%20%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) The group's current ratio remained stable, cash and cash equivalents increased, interest-bearing bank and other borrowings decreased, and the gearing ratio declined, indicating a solid financial position 2025 First Half Liquidity and Financial Resources | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Current Ratio | approx. 2.2 | approx. 2.2 | Stable | | Cash and Cash Equivalents | 454.7 | 415.5 | 9.4% | | Interest-bearing Bank and Other Borrowings | 285.3 | 299.3 | -4.7% | | Gearing Ratio | 13.9% | 15.0% | -1.1pp | - The group continues to implement prudent financial management policies and monitors its capital structure based on the ratio of total liabilities to total assets[42](index=42&type=chunk) [Foreign Currency Risk and Contingent Liabilities](index=10&type=section&id=4.2.3%20%E5%A4%96%E5%B8%81%E9%A3%8E%E9%99%A9%E4%B8%8E%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) The group manages transactional currency risk through forward currency contracts and had no significant contingent liabilities at the end of the reporting period - The group's primary functional currency is **RMB**, and it hedges exchange rate risk through forward currency contracts[43](index=43&type=chunk) - As of **June 30, 2025**, the group had no significant contingent liabilities[44](index=44&type=chunk) [Pledge of Group Assets and Major Investment Plans](index=10&type=section&id=4.2.4%20%E9%9B%86%E5%9B%A2%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E8%AE%A1%E5%88%92) The group's certain bills payable and bank loans are secured by bills receivable, land use rights, and property, plant, and equipment, with no major investment plans during the period - Bills payable of approximately **RMB 50.1 million** are secured by bills receivable of approximately **RMB 50.1 million**[45](index=45&type=chunk) - Bank loans of **RMB 78.7 million** are secured by land use rights and property, plant, and equipment[45](index=45&type=chunk) - For the six months ended **June 30, 2025**, the group held no significant investments and made no material acquisitions or disposals of subsidiaries, associates, or joint ventures[46](index=46&type=chunk) [Events After Reporting Period](index=11&type=section&id=4.3%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) Subsequent to the reporting period, Saichim Power Semiconductor signed an capital increase agreement and equity transfer agreement to acquire Hunan Hongan Microelectronics, which will dilute the company's equity interest in Saichim Power Semiconductor - Saichim Power Semiconductor will issue new registered capital, which investors will subscribe for a total consideration of **RMB 180,000,000**, representing approximately **9.00%** of Saichim Power Semiconductor's enlarged equity[48](index=48&type=chunk) - The subscription price will be satisfied by the investors transferring **100% equity of Hunan Hongan Microelectronics Co., Ltd.** to Saichim Power Semiconductor[48](index=48&type=chunk) - Upon completion of the transaction, the company's equity interest in Saichim Power Semiconductor will decrease from **approximately 70.5406% to approximately 64.1918%** on an enlarged basis[48](index=48&type=chunk) [Human Resources](index=11&type=section&id=4.4%20%E4%BA%BA%E5%8A%9B%E8%B5%84%E6%BA%90) As of June 30, 2025, the group had 1,066 employees, offering competitive compensation, benefits, and training programs, while maintaining good employee relations - As of **June 30, 2025**, the group had a total of **1,066 employees**[50](index=50&type=chunk) - The remuneration package includes basic salaries, medical insurance, discretionary cash bonuses, and retirement benefit schemes, with employees eligible to participate in the **2020 Share Option Scheme**[50](index=50&type=chunk) - The group focuses on establishing an internal management training and development system, enhancing employee skills through diversified training models[50](index=50&type=chunk) [Outlook](index=11&type=section&id=4.5%20%E5%B1%95%E6%9C%9B) The group will continue to deliver existing transmission project orders, actively pursue new UHVDC project bids, and intensify R&D and market expansion for power semiconductor products in emerging fields - In the second half, the group will continue to advance the delivery of products for multiple conventional and flexible DC transmission projects, including the **Shaanxi-Anhui Project**, **Saudi Central-South Project**, and **Gansu-Zhejiang Power Transmission Project**[51](index=51&type=chunk) - The group aims to secure new orders in bids for the **Southeast Tibet Project**, **Inner Mongolia West to Beijing-Tianjin-Hebei Project**, and other newly approved **UHVDC projects**[51](index=51&type=chunk) - The group will continue to intensify R&D and market expansion for self-developed power semiconductor products, focusing on pioneering advanced technologies such as **solid-state switches** and **pulsed power switches** in emerging fields like **electrified vessels** and **controlled nuclear fusion**[51](index=51&type=chunk) [Share Repurchases](index=11&type=section&id=4.6%20%E8%82%A1%E4%BB%BD%E5%9B%9E%E8%B4%AD) The company repurchased 1,296,000 shares in H1 2025 for approximately HK$1,524,145, aiming to enhance market price per share and improve investor confidence 2025 First Half Share Repurchase Details | Repurchase Month | Number of Shares Repurchased | Highest Purchase Price Per Share (HKD) | Lowest Purchase Price Per Share (HKD) | Purchase Price Paid (Approximate, HKD) | | :--- | :--- | :--- | :--- | :--- | | January | 240,000 | 1.33 | 1.28 | 314,862 | | March | 440,000 | 1.29 | 1.19 | 555,096 | | April | 616,000 | 1.17 | 1.00 | 654,187 | | Total | 1,296,000 | | | 1,524,145 | - Repurchased shares are held as **treasury shares**, and the company will not exercise shareholder rights or receive any benefits from them[53](index=53&type=chunk) - All repurchases were for the overall benefit of the company and its shareholders, aiming to enhance the **market price per share** and improve **investor confidence**[54](index=54&type=chunk) [Corporate Governance](index=12&type=section&id=4.7%20%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The company prioritizes corporate governance, adhering to the Listing Rules' Corporate Governance Code, with the audit committee reviewing interim financial statements - The company has adopted the **Corporate Governance Code** set out in Appendix C1 of the Listing Rules and complied with the applicable code provisions in **H1 2025**[55](index=55&type=chunk) - The Board has confirmed that all directors complied with the **Model Code for Securities Transactions by Directors** set out in Appendix C3 of the Listing Rules throughout **H1 2025**[56](index=56&type=chunk) - The Audit Committee, together with management, reviewed the accounting principles and practices adopted by the group and discussed matters related to **audit, risk management, internal control, and financial reporting**[57](index=57&type=chunk) [Dividend Policy](index=12&type=section&id=4.8%20%E8%82%A1%E6%81%AF%E6%94%BF%E7%AD%96) The Board resolved to declare an interim dividend of HK$0.01 per share for H1 2025, totaling approximately HK$15,933,980, payable around October 22, 2025 - The Board resolved to declare an interim dividend of **HK$0.01 per share** for the six months ended **June 30, 2025** (H1 2024: nil)[58](index=58&type=chunk) - The dividend will be paid from the company's **share premium account** and is expected to be paid on or about **October 22, 2025**[58](index=58&type=chunk) - The total amount to be absorbed is estimated at **HK$15,933,980**[58](index=58&type=chunk) [Changes in Shareholdings of Directors and Chief Executive](index=13&type=section&id=4.9%20%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) As of June 30, 2025, the company's directors and chief executive held long positions in company shares, with Mr. Xiang Jie holding the largest proportion June 30, 2025 Long Positions in Shares of Directors and Chief Executive | Director Name | Nature of Interest | Number of Ordinary Shares Held | Number of Ordinary Shares Issuable from Equity Derivatives | Total | Approximate Percentage of Company's Equity | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Xiang Jie | Beneficial Owner | 51,666,000 | – | 51,666,000 | | | | Founder of Discretionary Trust | 338,328,347 | – | 338,328,347 | | | | | | | 389,994,347 | 24.32% | | Mr. Gong Renyuan | Beneficial Owner | 15,060,000 | 10,000,000 | 25,060,000 | | | | Spouse's Interest | 4,300,000 | 4,000,000 | 8,300,000 | | | | | | | 33,360,000 | 2.08% | | Mr. Yue Zhoumin | Beneficial Owner | 2,000,000 | 5,000,000 | 7,000,000 | 0.44% | - **Mr. Chen Shimin** and **Mr. Liang Mingshu** no longer serve as independent non-executive directors of other HKEX-listed companies[60](index=60&type=chunk) - As of **June 30, 2025**, none of the directors or chief executive had any short positions in the shares, underlying shares, or debentures of the company or any associated corporation[62](index=62&type=chunk) [Changes in Shareholdings of Substantial Shareholders](index=14&type=section&id=4.10%20%E4%B8%BB%E8%A6%81%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) As of June 30, 2025, Max Vision Holdings Limited and its affiliates were substantial shareholders holding long positions, with Ms. Meng Fankun also holding shares through spousal interest and trust beneficiary status June 30, 2025 Long Positions in Shares of Substantial Shareholders | Substantial Shareholder Name/Entity | Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of Company's Equity | | :--- | :--- | :--- | :--- | | Max Vision Holdings Limited | Beneficial Owner | 338,328,347 | 21.09% | | Jiekun Limited | Interest in Controlled Corporation | 338,328,347 | 21.09% | | Sapphire Skye Holdings Limited | Interest in Controlled Corporation | 338,328,347 | 21.09% | | Zedra Trust Company (Singapore) Limited | Interest in Controlled Corporation | 338,328,347 | 21.09% | | Ms. Meng Fankun | Spouse's Interest | 51,666,000 | | | | Beneficiary of Trust | 338,328,347 | | | | | 389,994,347 | 24.32% | - **Max Vision Holdings Limited** is wholly owned by **Jiekun Limited**, which is wholly owned by **Sapphire Skye Holdings Limited**, which is wholly owned by **Zedra Trust Company (Singapore) Limited**, the trustee of a private trust established by **Mr. Xiang Jie**[65](index=65&type=chunk) - **Ms. Meng Fankun** is deemed to have an interest due to her spouse, **Mr. Xiang Jie**, holding shares[65](index=65&type=chunk) [Share Option Schemes](index=15&type=section&id=4.11%20%E8%B4%AD%E8%82%A1%E6%9D%83%E8%AE%A1%E5%88%92) The company operates two share option schemes to incentivize eligible participants; in H1 2025, no options were exercised under the 2010 scheme, and a proposed grant to Mr. Xiang Jie under the 2020 scheme was not approved by shareholders - The **2010 Share Option Scheme** terminated on **June 3, 2020**, but options granted before termination remain exercisable[66](index=66&type=chunk) 2010 Share Option Scheme Movements (As of June 30, 2025) | Grantee | Unexercised as of January 1, 2025 | Granted During Period | Exercised During Period | Cancelled During Period | Lapsed During Period | Unexercised as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Employees | 5,120,000 | – | – | – | – | 5,120,000 | - The **2020 Share Option Scheme** aims to grant options to eligible participants including employees, non-executive directors, suppliers, customers, R&D supporters, shareholders, and consultants[70](index=70&type=chunk)[72](index=72&type=chunk) - The resolution for **Mr. Xiang Jie** to be granted **20,000,000 share options** was not approved at the **2025 Annual General Meeting**, thus no options were granted to him[75](index=75&type=chunk) - The company intends to re-grant **Mr. Xiang Jie** share options to subscribe for up to **20,000,000 shares**, subject to separate approval at an extraordinary general meeting[76](index=76&type=chunk) [Independent Review Report](index=18&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) Ernst & Young reviewed the interim financial information in accordance with HKSRS 2410 and found no material matters, concluding it was prepared in all material respects according to IAS 34 [Scope of Review and Conclusion](index=19&type=section&id=5.1%20%E5%AF%A9%E9%96%B1%E7%AF%84%E5%9C%8D%E8%88%87%E7%B5%90%E8%AB%96) The auditor reviewed the interim financial information, including the condensed consolidated financial statements, and found no matters suggesting non-compliance with IAS 34 - The auditor has completed the review of the interim financial information on pages **19 to 34**, including the condensed consolidated statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows[78](index=78&type=chunk) - The scope of review is substantially less than an audit, and therefore the auditor does not express an audit opinion[79](index=79&type=chunk) - Based on the review, the auditor has not noted any matters that cause them to believe the interim financial information is not prepared, in all material respects, in accordance with **International Accounting Standard 34**[80](index=80&type=chunk) [Condensed Consolidated Interim Financial Statements](index=19&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the group's condensed consolidated interim financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=19&type=section&id=6.1%20%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For H1 2025, the group's revenue grew by 35.5% to RMB 888.3 million, with profit for the period significantly increasing to RMB 85.47 million and profit attributable to owners rising by 178.3% to RMB 93.77 million 2025 First Half Profit or Loss and Other Comprehensive Income Overview | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 888,320 | 655,758 | | Gross Profit | 229,254 | 234,784 | | Other Income and Gains | 130,747 | 34,335 | | Profit Before Tax | 112,808 | 36,349 | | Profit for the Period | 85,470 | 20,933 | | Profit Attributable to Owners of Parent | 93,773 | 33,722 | | Basic Earnings Per Share | RMB 5.85 cents | RMB 2.09 cents | - Total other comprehensive income/(loss) was **RMB (14,691) thousand**, primarily impacted by exchange differences on translation of overseas operations[82](index=82&type=chunk) [Condensed Consolidated Interim Statement of Financial Position](index=21&type=section&id=6.2%20%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the group's total assets less current liabilities were RMB 2,150.16 million, with net assets of RMB 2,057.99 million, showing an increase in net current assets and slight decreases in inventory and trade receivables June 30, 2025 Financial Position Overview | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 1,030,009 | 1,012,660 | | Total Current Assets | 2,040,579 | 2,022,187 | | Total Current Liabilities | 920,425 | 935,050 | | Net Current Assets | 1,120,154 | 1,087,137 | | Net Assets | 2,057,990 | 1,995,956 | | Total Equity | 2,057,990 | 1,995,956 | - Cash and cash equivalents increased from approximately **RMB 415.5 million** as of **December 31, 2024**, to approximately **RMB 454.7 million** as of **June 30, 2025**[84](index=84&type=chunk) - Trade and bills receivables decreased from approximately **RMB 1,161.2 million** as of **December 31, 2024**, to approximately **RMB 1,147.1 million** as of **June 30, 2025**[84](index=84&type=chunk) [Condensed Consolidated Interim Statement of Changes in Equity](index=23&type=section&id=6.3%20%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For H1 2025, the group's total equity increased from RMB 1,995.96 million to RMB 2,057.99 million, primarily influenced by profit for the period and share-based payment expenses 2025 First Half Equity Changes Overview | Equity Item | January 1, 2025 (RMB thousand) | Profit for the Period (RMB thousand) | Total Comprehensive Income for the Period (RMB thousand) | Share Repurchases (RMB thousand) | Dividends Declared (RMB thousand) | Share-based Payments (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of Parent | 1,924,376 | 93,773 | 82,452 | (1,409) | (14,530) | 6,794 | 1,997,983 | | Non-controlling Interests | 71,580 | (8,303) | (11,673) | – | – | – | 60,007 | | Total Equity | 1,995,956 | 85,470 | 70,779 | (1,409) | (14,530) | 6,794 | 2,057,990 | - Fair value loss on investments at fair value through other comprehensive income for the period was **RMB (2,730) thousand**, and exchange differences on translation of overseas operations were **RMB (8,591) thousand**[87](index=87&type=chunk) [Condensed Consolidated Interim Statement of Cash Flows](index=24&type=section&id=6.4%20%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For H1 2025, net cash from operating activities was RMB 85.88 million, net cash used in investing activities was RMB (20.23) million, net cash used in financing activities was RMB (31.99) million, and cash and cash equivalents at period-end were RMB 454.69 million 2025 First Half Cash Flow Overview | Cash Flow Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 85,881 | (231,324) | | Net Cash Used In Investing Activities | (20,225) | (84,118) | | Net Cash Used In Financing Activities | (31,987) | (19,124) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 33,669 | (334,566) | | Cash and Cash Equivalents at End of Period | 454,691 | 463,093 | - Net cash from operating activities turned positive from a negative value in the prior period of 2024, indicating improved operating conditions[91](index=91&type=chunk) - Net cash used in investing activities decreased, primarily due to reduced expenditure on the purchase of financial investments[91](index=91&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=26&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated interim financial information, covering company details, basis of preparation, accounting policy changes, segment information, and financial instrument fair values [Company Information (Note 1)](index=26&type=section&id=7.1%20%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99%20(%E9%99%84%E6%B3%A81)) The company was incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, with its principal business being the trading and manufacturing of power electronic components - The company was incorporated in the **Cayman Islands** as an exempted company with limited liability on **March 19, 2010**[92](index=92&type=chunk) - The group's principal activities are the trading and manufacturing of **power electronic components**[93](index=93&type=chunk) - The condensed consolidated interim financial information is presented in **RMB**[94](index=94&type=chunk) [Basis of Preparation (Note 2)](index=26&type=section&id=7.2%20%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86%20(%E9%99%84%E6%B3%A82)) The condensed consolidated interim financial information is prepared in accordance with IAS 34 and should be read in conjunction with the group's annual consolidated financial statements for the year ended December 31, 2024 - The condensed consolidated interim financial information is prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"** issued by the International Accounting Standards Board[95](index=95&type=chunk) [Changes in Accounting Policies (Note 3)](index=26&type=section&id=7.3%20%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E7%9A%84%E5%8F%98%E5%8A%A8%20(%E9%99%84%E6%B3%A83)) The revised IAS 21 (Amendment) "Lack of Exchangeability" was adopted for the first time this period but had no impact on the financial information as the group's transactional and functional currencies are convertible - The revised **International Financial Reporting Standard, IAS 21 (Amendment) "Lack of Exchangeability"**, was adopted for the first time in the current period[96](index=96&type=chunk)[97](index=97&type=chunk) - This amendment had no impact on the condensed consolidated interim financial information, as the currencies in which the group conducts transactions and the functional currencies used by group entities for translation into the group's presentation currency are convertible[97](index=97&type=chunk) [Operating Segment Information (Note 4)](index=26&type=section&id=7.4%20%E7%BB%8F%E8%90%A5%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99%20(%E9%99%84%E6%B3%A84)) The group has one reportable operating segment, primarily engaged in manufacturing and trading power electronic components, with over 95% of revenue and all non-current assets attributable to mainland China - The group has established one reportable operating segment, primarily engaged in the manufacturing and trading of **power electronic components**[98](index=98&type=chunk) - Over **95%** of the group's revenue is attributable to customers located in **mainland China**, and all non-current assets are located in **mainland China**[99](index=99&type=chunk) [Revenue, Other Income and Gains (Note 5)](index=27&type=section&id=7.5%20%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%20(%E9%99%84%E6%B3%A85)) The group's H1 2025 revenue from customer contracts was RMB 888.32 million, with other income and gains significantly increasing to RMB 130.75 million, mainly due to government grants, exchange gains, and fair value gains on forward foreign exchange contracts 2025 First Half Revenue, Other Income and Gains | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from Customer Contracts (Sales of Power Electronic Components) | 888,320 | 655,758 | | Other Income (Government Grants, Bank Interest, etc.) | 38,462 | 33,013 | | Gains (Net Exchange Gains, Net Fair Value Gains on Forward Foreign Exchange Contracts, etc.) | 92,285 | 1,322 | | Total | 130,747 | 34,335 | - Government grants increased from **RMB 20,348 thousand** to **RMB 33,270 thousand**[100](index=100&type=chunk) - Net exchange gains were **RMB 31,342 thousand**, and net fair value gains on forward foreign exchange contracts were **RMB 59,939 thousand**, significantly contributing to other gains[100](index=100&type=chunk) [Profit Before Tax (Note 6)](index=28&type=section&id=7.6%20%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9%20(%E9%99%84%E6%B3%A86)) The group's H1 2025 profit before tax was RMB 112.81 million, a significant increase from the prior period, primarily due to favorable movements in fair value of forward foreign exchange contracts and exchange gains 2025 First Half Key Adjustments to Profit Before Tax | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 659,985 | 420,321 | | Depreciation of Property, Plant and Equipment | 26,187 | 21,413 | | Depreciation of Right-of-use Assets | 3,067 | 2,580 | | Amortisation of Deferred Development Costs | 4,617 | 4,200 | | Net Impairment Loss on Trade Receivables and Contract Assets | 3,118 | 1,622 | | Net Fair Value Loss on Forward Foreign Exchange Contracts | – | 10,648 | | Net Exchange Losses | – | 11,366 | - In H1 2025, net fair value loss on forward foreign exchange contracts and net exchange losses were both **zero**, compared to significant losses in H1 2024, which positively impacted profit before tax[101](index=101&type=chunk) [Finance Costs (Note 7)](index=28&type=section&id=7.7%20%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC%20(%E9%99%84%E6%B3%A87)) The group's H1 2025 finance costs were RMB 8.84 million, a slight increase from the prior period, mainly comprising interest on bank and other loans 2025 First Half Finance Costs Composition | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on Bank Loans | 4,471 | 4,130 | | Interest on Other Loans | 4,241 | 4,265 | | Interest on Lease Liabilities | 123 | 146 | | Total | 8,835 | 8,541 | [Income Tax (Note 8)](index=29&type=section&id=7.8%20%E6%89%80%E5%BE%97%E7%A8%8E%20(%E9%99%84%E6%B3%A88)) The group's H1 2025 income tax expense was RMB 27.34 million, a 77.3% increase year-on-year, primarily due to increased revenue, with varying corporate income tax rates applied to subsidiaries 2025 First Half Income Tax Expense Composition | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current (Mainland China) | 17,802 | 15,837 | | Current (Europe) | 133 | 308 | | Deferred | 9,456 | (616) | | Total Tax Expense for the Period | 27,338 | 15,416 | - The corporate income tax rate in **mainland China is 25%**, and for high-tech enterprises, it is **15%**[103](index=103&type=chunk) - Subsidiaries in **Switzerland, Germany, and the Netherlands** pay local corporate tax at rates of approximately **18%, 32%, and 25.8%**, respectively[103](index=103&type=chunk) [Dividends (Note 9)](index=29&type=section&id=7.9%20%E8%82%A1%E6%81%AF%20(%E9%99%84%E6%B3%A89)) The Board declared an interim dividend of HK$0.01 per ordinary share on August 22, 2025, totaling approximately RMB 14.53 million - The Board declared an interim dividend of **HK$0.01 per ordinary share** (H1 2024: nil)[105](index=105&type=chunk) - The total interim dividend amounts to approximately **RMB 14,531,000**[105](index=105&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent (Note 10)](index=30&type=section&id=7.10%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E6%9D%83%E6%8C%81%E6%9C%89%E4%BA%BA%E5%BA%94%E5%8D%A0%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%20(%E9%99%84%E6%B3%A810)) The group's H1 2025 basic and diluted earnings per share were both RMB 5.85 cents, a significant increase from RMB 2.09 cents in the prior period 2025 First Half Earnings Per Share | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of Parent | 93,773 | 33,722 | | Basic Earnings Per Share | RMB 5.85 cents | RMB 2.09 cents | | Diluted Earnings Per Share | RMB 5.85 cents | RMB 2.09 cents | - The weighted average number of ordinary shares outstanding for calculating basic earnings per share for the period was **1,603,302,772 shares**[107](index=107&type=chunk) - The dilutive effect of share options resulted in an increase of **643,752 shares** in the weighted average number of ordinary shares[107](index=107&type=chunk) [Property, Plant and Equipment (Note 11)](index=30&type=section&id=7.11%20%E7%89%A9%E4%B8%9A%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87%20(%E9%99%84%E6%B3%A811)) The group's total cost of assets acquired in H1 2025 was RMB 36.37 million, with a total net book value of assets disposed of amounting to RMB 0.512 million 2025 First Half Property, Plant and Equipment Movements | Item | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Total Cost of Assets Acquired | 36,370 | 45,630 | | Total Net Book Value of Assets Disposed | 512 | 246 | [Trade and Bills Receivables (Note 12)](index=31&type=section&id=7.12%20%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E6%94%B6%E7%A5%A8%E6%8D%AE%20(%E9%99%84%E6%B3%A812)) As of June 30, 2025, the group's total trade and bills receivables were RMB 1,147.05 million, a slight decrease from year-end 2024, with credit terms typically ranging from one to three months June 30, 2025 Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (Net of Impairment) | 966,778 | 906,644 | | Bills Receivables | 180,275 | 254,525 | | Total | 1,147,053 | 1,161,169 | June 30, 2025 Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 567,263 | 518,522 | | 4th to 6th Month | 172,174 | 188,948 | | 7th to 12th Month | 138,302 | 117,107 | | Over 1 Year | 89,039 | 82,067 | | Total | 966,778 | 906,644 | - The ageing of the group's bills receivables is within **six months**[111](index=111&type=chunk) [Trade and Bills Payables (Note 13)](index=31&type=section&id=7.13%20%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E4%BB%98%E7%A5%A8%E6%8D%AE%20(%E9%99%84%E6%B3%A813)) As of June 30, 2025, the group's total trade and bills payables were RMB 434.02 million, a slight increase from year-end 2024 June 30, 2025 Trade and Bills Payables Ageing Analysis | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within Six Months | 338,705 | 366,017 | | Over Six Months | 95,311 | 50,707 | | Total | 434,016 | 416,724 | [Issued Share Capital (Note 14)](index=32&type=section&id=7.14%20%E5%B7%B2%E5%8F%91%E8%A1%8C%E8%82%A1%E6%9C%AC%20(%E9%99%84%E6%B3%A814)) For H1 2025, the company repurchased 1,296,000 shares for a total consideration of RMB 1.41 million, with no share options exercised - For the six months ended **June 30, 2025**, no share options were exercised[113](index=113&type=chunk) - The company repurchased a total of **1,296,000** of its own shares for a total consideration of **RMB 1,409,000**[113](index=113&type=chunk) - In the prior period of 2024, the company repurchased and cancelled **18,244,000** and **18,178,000 shares** for a total consideration of **RMB 19,207,000**[113](index=113&type=chunk) [Commitments (Note 15)](index=32&type=section&id=7.15%20%E6%89%BF%E6%8B%85%20(%E9%99%84%E6%B3%A815)) As of June 30, 2025, the group's total contractual commitments were RMB 43.10 million, primarily for property, plant, and equipment, with forward foreign exchange contract commitments totaling RMB 614.90 million June 30, 2025 Contractual Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Buildings | 10,842 | 14,565 | | Plant and Equipment | 32,261 | 41,391 | | Total | 43,103 | 55,956 | June 30, 2025 Forward Foreign Exchange Contract Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Purchase Swiss Francs | 614,904 | 810,333 | | Purchase Japanese Yen | – | 5,534 | | Total | 614,904 | 815,867 | [Related Party Transactions (Note 16)](index=32&type=section&id=7.16%20%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93%20(%E9%99%84%E6%B3%A816)) The group's total remuneration paid to key management personnel in H1 2025 was RMB 25.50 million, an increase from the prior period, mainly due to a significant rise in share-based payment expenses 2025 First Half Key Management Personnel Remuneration | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Short-term Employee Benefits | 18,462 | 16,123 | | Post-employment Benefits | 1,597 | 1,461 | | Share-based Payment Expenses | 5,440 | 33 | | Total Remuneration Paid to Key Management Personnel | 25,499 | 17,617 | [Fair Value and Fair Value Hierarchy of Financial Instruments (Note 17)](index=33&type=section&id=7.17%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E5%85%AC%E5%B9%B3%E4%BB%B7%E5%80%BC%E5%8F%8A%E5%85%AC%E5%B9%B3%E4%BB%B7%E5%80%BC%E5%B1%82%E7%BA%A7%20(%E9%99%84%E6%B3%A817)) The fair value measurement of the group's financial instruments primarily uses Level 2 and Level 3, with bills receivable and derivative financial instruments measured at Level 2, and equity investments designated at fair value through other comprehensive income measured at Level 3 June 30, 2025 Fair Value of Financial Assets | Item | Carrying Amount (RMB thousand) | Fair Value (RMB thousand) | | :--- | :--- | :--- | | Bills Receivables | 180,275 | 180,275 | | Equity Investments Designated at Fair Value Through Other Comprehensive Income | 6,357 | 6,357 | | Time Deposits | 80,000 | 81,298 | | Derivative Financial Instruments | 53,524 | 53,524 | | Total | 320,156 | 321,454 | June 30, 2025 Fair Value of Financial Liabilities | Item | Carrying Amount (RMB thousand) | Fair Value (RMB thousand) | | :--- | :--- | :--- | | Interest-bearing Bank and Other Borrowings | 285,255 | 287,986 | | Derivative Financial Instruments | – | – | | Total | 285,255 | 287,986 | - The fair value of unlisted equity investments designated at fair value through other comprehensive income is estimated using market-based valuation techniques, which are based on assumptions not supported by observable market prices or rates, considering **peer price-to-sales ratios** and a **discount for lack of marketability**[117](index=117&type=chunk)[119](index=119&type=chunk) [Events After Reporting Period (Note 18)](index=35&type=section&id=7.18%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9%20(%E9%99%84%E6%B3%A818)) Subsequent to the reporting period, Saichim Power Semiconductor signed a capital increase agreement with investors to acquire Hunan Hongan Microelectronics, which will dilute the company's equity interest in Saichim Power Semiconductor - Saichim Power Semiconductor will issue new registered capital, which investors will subscribe for at the subscription price, totaling approximately **9.00%** of Saichim Power Semiconductor's enlarged equity[121](index=121&type=chunk) - The subscription price will be satisfied by the investors transferring **100% equity of Hunan Hongan Microelectronics Co., Ltd.** to Saichim Power Semiconductor[121](index=121&type=chunk) - Upon completion of the transaction, the company's equity interest in Saichim Power Semiconductor, calculated on an enlarged basis, will decrease from approximately **70.5406% to 64.1918%**[121](index=121&type=chunk) [Approval of Condensed Consolidated Interim Financial Information (Note 19)](index=35&type=section&id=7.19%20%E6%89%B9%E5%87%86%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%20(%E9%99%84%E6%B3%A819)) The condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on August 22, 2025 - The condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on **August 22, 2025**[122](index=122&type=chunk)

中期報告 2025 * 僅供識別 目錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 4 | | 管理層討論及分析 | 5 | | 企業管治及其他資料 | 24 | | 獨立執業會計師審閱報告 | 31 | | 中期簡明綜合財務報表 | | | －中期簡明綜合收益表 | 36 | | －中期簡明綜合全面收益表 | 37 | | －中期簡明綜合財務狀況表 | 38 | | －中期簡明綜合權益變動表 | 40 | | －中期簡明綜合現金流量表 | 41 | | －中期簡明綜合財務報表附註 | 42 | 頁次 公司資料 董事會 執行董事 胡吉春先生 （主席兼行政總裁） 胡曰明先生 陳永道先生 周志瑾先生 鄭青女士 顧曉斌先生 非執行董事 葉興明先生 獨立非執行董事 江希和先生 （首席獨立非執行董事） 蔣建華女士 陳友正博士 Nathan Yu Li先生 審核委員會 江希和先生 （主席） 陳友正博士 Nathan Yu Li先生 薪酬委員會 陳友正博士 （主席） 江希和先生 陳永道先生 提名委員會 胡吉春先生 （主席） 江希和先生 Nathan Yu Li先生 蔣建華女士 註冊辦事處 VIS ...