[Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides basic company information for GenFleet Therapeutics (Shanghai) Co., Ltd., including board members, committee compositions, registered office, principal place of business, legal counsel, principal bankers, auditor, stock code, and company website - The Board of Directors comprises executive directors (Dr. Lu Qiang, Dr. Lan Jiong, Ms. Zhang Wei), non-executive directors (Mr. Zhu Jingyang, Ms. Tao Sha), and independent non-executive directors (Ms. Lu Shaohua, Dr. Zhou Demin, Mr. Li Bo)[5](index=5&type=chunk) - Ms. Lu Shaohua chairs the Audit Committee, Mr. Li Bo chairs the Remuneration Committee, and Dr. Lu Qiang chairs the Nomination Committee[5](index=5&type=chunk) - The company's registered office, headquarters, and principal place of business in China are located at 1206 Zhangjiang Road, China (Shanghai) Pilot Free Trade Zone[5](index=5&type=chunk) - The company's auditor is Ernst & Young, its stock code is **2595**, and its website is genfleet.com[6](index=6&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%E8%88%87%E5%88%86%E6%9E%90) This section comprehensively reviews GenFleet Therapeutics' business development, product pipeline progress, R&D capabilities, strategic planning, industry overview, and financial performance, highlighting its commitment to innovative therapies for oncology, autoimmune, and inflammatory diseases, significant progress in RAS-targeted therapies, and active expansion of global collaborations and internal manufacturing capabilities [Business Review](index=5&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The company is an innovative drug development company based in China, focusing on oncology, autoimmune, and inflammatory diseases, having built a diversified pipeline of eight candidate products through an integrated R&D system, with seven in clinical development, and holding a leading position in RAS-targeted therapies [Our Products and Pipeline](index=5&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E7%94%A2%E5%93%81%E5%8F%8A%E7%94%A2%E5%93%81%E7%AE%A1%E7%B7%9A) The company has established a continuously updated pipeline of eight candidate products, with seven in clinical development, focusing on RAS family therapies, and holds 71 granted patents and 112 pending patent applications - As of the Latest Practicable Date, the company has eight candidate products, with seven in clinical development[9](index=9&type=chunk) - Core product GFH925 (Dabert®) has been approved for commercialization in China for the treatment of advanced non-small cell lung cancer (NSCLC)[9](index=9&type=chunk) - Another core product, GFH375, is one of the most advanced oral bioavailable KRAS G12D inhibitors globally[9](index=9&type=chunk) Overview of Candidate Drug Development Status (As of the Latest Practicable Date) | Compound | Target | Administration | Indication (Clinical Stage) | Key Regulatory Authority | Commercial Rights | | :--- | :--- | :--- | :--- | :--- | :--- | | **Oncology: RAS-focused** | | | | | | | GFH925 | KRAS G12C | Oral | Advanced NSCLC (Phase III planned) | FDA, EMA | Global (ex-Greater China) | | GFH375 | KRAS G12D | Oral | Advanced PDAC, NSCLC, and CRC (Phase I/II) | NMPA | Greater China | | GFH276 | Pan-Ras | Oral | Advanced Solid Tumors (IND approved) | / | Global | | GFS784 | ADC (Novel Payload) | Injection | Advanced Solid Tumors (Preclinical) | / | Global | | **Oncology: Others** | | | | | | | GFS202A | GDF15/IL-6 | Injection | Cachexia (Phase I) | NMPA | Global | | GFH009 | CDK9 | Injection | Advanced AML (Clinical Stage) | NMPA | Ex-Greater China | | GFH018 | TGF-βR1 | Oral | Various Advanced Solid Tumors (Clinical Stage) | NMPA, TFDA, TGA | Global | | **Immunology** | | | | | | | GFH312 | RIPK1 | Oral | PBC (Phase II planned), PAD with IC (Phase II) | NMPA, TGA, FDA | Global | [Our Core RAS-Targeted Products](index=7&type=section&id=%E6%88%91%E5%80%91%E9%9D%B6%E5%90%91RAS%E7%9A%84%E6%A0%B8%E5%BF%83%E7%94%A2%E5%93%81) This section details the development progress of the company's two core RAS-targeted products, GFH925 and GFH375, with GFH925 approved for marketing in China and showing significant efficacy in overseas combination therapies, while GFH375, a globally leading KRAS G12D inhibitor, demonstrates potential in preclinical and preliminary clinical studies, with multiple clinical trials initiated [GFH925 – A KRAS G12C Small Molecule Selective Inhibitor for NSCLC and CRC](index=7&type=section&id=GFH925%EF%BC%8D%E7%94%A8%E6%96%BC%E6%B2%BB%E7%99%82NSCLC%E5%8F%8ACRC%E7%9A%84KRAS%20G12C%E5%B0%8F%E5%88%86%E5%AD%90%E9%81%B8%E6%93%87%E6%80%A7%E6%8A%91%E5%88%B6%E5%8A%91) GFH925 (Dabert®) is China's first and the world's third approved KRAS G12C selective inhibitor, approved by the NMPA for second-line or later-line treatment of advanced NSCLC, and showing an **80%** overall response rate and **100%** disease control rate in a European Ib/II clinical trial with cetuximab combination therapy, with Phase III trials planned in the US and Europe - GFH925 is the first KRAS G12C selective inhibitor approved in China and the third globally[13](index=13&type=chunk) - Received NMPA NDA approval in China in August 2024 for second-line or later-line treatment of advanced NSCLC[13](index=13&type=chunk) - GFH925 monotherapy received two Breakthrough Therapy Designations (BTD) from the NMPA in January and May 2023, respectively, for the treatment of patients with advanced KRAS G12C-mutated NSCLC and CRC[14](index=14&type=chunk) - In a European Ib/II clinical trial, GFH925/cetuximab combination therapy achieved an overall response rate (ORR) of **80%** and a disease control rate (DCR) of **100%**, with an ORR of **71.4%** in patients with brain metastases[16](index=16&type=chunk) - Phase II clinical trials are planned for completion by Q4 2025, with applications for Phase III clinical trials in the US and Europe based on European clinical results[17](index=17&type=chunk) - The FDA approved the IND application for GFH925 monotherapy in April 2024 for a Phase III clinical trial in refractory metastatic CRC in later-line treatment[17](index=17&type=chunk) [GFH375: An Oral Bioavailable Small Molecule KRAS G12D Inhibitor](index=8&type=section&id=GFH375%EF%BC%9A%E4%B8%80%E6%AC%BE%E5%8F%A3%E6%9C%8D%E7%94%9F%E7%89%A9%E5%8F%AF%E5%88%A9%E7%94%A8%E5%B0%8F%E5%88%86%E5%AD%90KRAS%20G12D%E6%8A%91%E5%88%B6%E5%8A%91) GFH375 is a company-discovered oral, bioavailable, potent, and highly selective small molecule KRAS G12D inhibitor, capable of targeting both "active" and "inactive" states of KRAS G12D, which, as a globally leading drug, has initiated Phase I/II clinical trials in China and entered an exclusive licensing collaboration with Verastem for regions outside Greater China, with commercial-scale production expected by the end of 2028 - GFH375 is one of the most advanced oral bioavailable KRAS G12D inhibitors globally, capable of simultaneously targeting both "active" and "inactive" states of the KRAS G12D protein[18](index=18&type=chunk)[19](index=19&type=chunk) - KRAS G12D is a common oncogenic KRAS mutation prevalent in pancreatic cancer, CRC, and NSCLC, with no approved treatment options currently available[18](index=18&type=chunk) - Phase I/II clinical trials for GFH375 have been initiated in China, with IND approval from the NMPA in June 2024 and the Phase II portion commencing in February 2025[20](index=20&type=chunk) - In January 2025, Verastem exercised an option to obtain an exclusive license to develop and commercialize GFH375 outside Greater China[12](index=12&type=chunk)[105](index=105&type=chunk) - Trial operation of internal manufacturing facilities is expected to commence by the end of 2026, with commercial-scale production of GFH375 starting by the end of 2028[20](index=20&type=chunk) [Our Diversified Innovative RAS-Targeted Candidates to Harness the Therapeutic Potential of the RAS Pathway](index=9&type=section&id=%E6%88%91%E5%80%91%E5%A4%9A%E6%A8%A3%E5%8C%96%E7%9A%84%E5%89%B5%E6%96%B0%E5%9E%8BRAS%E9%9D%B6%E5%90%91%E5%80%99%E9%81%B8%E7%94%A2%E5%93%81%EF%BC%8C%E4%BB%A5%E5%88%A9%E7%94%A8RAS%E9%80%9A%E8%B7%AF%E7%9A%84%E6%B2%BB%E7%99%82%E6%BD%9B%E5%8A%9B) Leveraging experience from GFH925 and GFH375 development, the company is expanding its RAS-targeted product matrix to cover common mutant RAS proteins and inhibit RAS protein overactivation through pan-RAS approaches, including molecular glue GFH276 and novel drug modality GFS784 [GFH276 – A Pan-RAS (Active) Molecular Glue](index=9&type=section&id=GFH276%EF%BC%8D%E4%B8%80%E7%A8%AE%E6%B3%9BRAS%EF%BC%88%E6%B4%BB%E5%8C%96%EF%BC%89%E7%9A%84%E5%88%86%E5%AD%90%E8%86%A0) GFH276 is the company's flagship candidate exploring a pan-RAS approach, acting as a molecular glue by forming a binary complex with chaperone protein Cyclophilin A (CypA) to interact with "active" RAS, blocking downstream signaling pathways, which showed potential antiproliferative activity in preclinical studies and received NMPA IND approval for Phase I/II clinical trials in September 2025 - GFH276 is a pan-RAS (active) molecular glue that forms a binary complex with CypA, interacting with active RAS to disrupt tumor cell growth signaling pathways[22](index=22&type=chunk) - Preclinical studies showed GFH276 has potential antiproliferative activity in tumor cell lines carrying various RAS family member mutations, with activity unaffected by upstream RTK activation[22](index=22&type=chunk) - The IND application for GFH276 Phase I/II clinical trials was submitted to the NMPA in June 2025 and received IND approval in September 2025[23](index=23&type=chunk) [GFS784 – A Novel Drug Modality Utilizing Synergistic Effects of Small and Large Molecules](index=10&type=section&id=GFS784%EF%BC%8D%E4%B8%80%E7%A8%AE%E5%88%A9%E7%94%A8%E5%A4%A7%E5%B0%8F%E5%88%86%E5%AD%90%E5%8D%94%E5%90%8C%E6%95%88%E6%87%89%E7%9A%84%E6%96%B0%E5%9E%8B%E8%97%A5%E7%89%A9%E6%A8%A1%E5%BC%8F) GFS784 is the company's leading FAScon (Functional Antibody Synergistic Conjugate) candidate, comprising an EGFR-blocking antibody and a small molecule pan-RAS inhibitor, which is expected to offer broader coverage, be less susceptible to drug resistance, and has shown durable antitumor activity in preclinical studies - GFS784 is a novel FAScon candidate, combining an EGFR-blocking antibody and a small molecule pan-RAS inhibitor[24](index=24&type=chunk) - This drug modality aims to address RAS with broader coverage and reduced susceptibility to drug resistance[24](index=24&type=chunk) - Preclinical studies demonstrated durable antitumor activity of GFS784 in mouse models[24](index=24&type=chunk) [Differentiated Clinical Programs and Market Potential Beyond Our RAS Matrix](index=10&type=section&id=%E5%B7%AE%E7%95%B0%E5%8C%96%E7%9A%84%E8%87%A8%E5%BA%8A%E9%A0%85%E7%9B%AE%E5%8F%8A%E8%B6%85%E8%B6%8A%E6%88%91%E5%80%91RAS%E7%9F%A9%E9%99%A3%E7%9A%84%E5%B8%82%E5%A0%B4%E6%BD%9B%E5%8A%9B) Beyond the RAS family, the company is committed to developing a diversified pipeline, including the self-developed RIPK1 kinase inhibitor GFH312 for autoimmune and inflammatory diseases, and the GDF15 and IL-6 bispecific antibody GFS202A as a potential therapy for cachexia [GFH312 – A RIPK1 Small Molecule Inhibitor](index=10&type=section&id=GFH312%EF%BC%8D%E4%B8%80%E6%AC%BERIPK1%E5%B0%8F%E5%88%86%E5%AD%90%E6%8A%91%E5%88%B6%E5%8A%91) GFH312 is the first RIPK1 inhibitor developed by a Chinese company to enter clinical stages, with potential for treating peripheral artery disease with intermittent claudication (PAD with IC) and primary biliary cholangitis (PBC), having completed Phase I clinical trials in Australia and China, received FDA approval for Phase II clinical trials in PAD with IC, and NMPA approval for Phase II clinical trials in PBC - GFH312 is the first RIPK1 inhibitor candidate developed by a Chinese company to enter clinical stages[26](index=26&type=chunk) - Preclinical studies showed GFH312 has potent and selective inhibitory effects on RIPK1, anti-inflammatory effects, and can penetrate the blood-brain barrier[26](index=26&type=chunk) - Phase I clinical trials of GFH312 in healthy subjects have been completed in Australia and China[27](index=27&type=chunk) - The FDA has approved Phase II clinical trials for GFH312 in PAD with IC[27](index=27&type=chunk) - NMPA approval was obtained in May 2025 for Phase II clinical trials of GFH312 for PBC, planned to commence in H1 2026[27](index=27&type=chunk) [GFS202A – A Novel Bispecific Antibody for Cachexia](index=11&type=section&id=GFS202A%EF%BC%8D%E4%B8%80%E7%A8%AE%E7%94%A8%E6%96%BC%E6%B2%BB%E7%99%82%E6%83%A1%E7%97%85%E8%B3%AA%E7%9A%84%E6%96%B0%E5%9E%8B%E9%9B%99%E7%89%B9%E5%BC%82%E6%80%A7%E6%8A%97%E9%AB%94) GFS202A is a novel bispecific antibody targeting GDF15 and IL-6, designed to treat cachexia, a common and life-threatening wasting disease with no currently approved dedicated drugs, having shown significant improvement in cachexia with weight loss in preclinical studies, and with Phase I clinical trials commenced in April 2025 - GFS202A is a novel bispecific antibody targeting GDF15 and IL-6 for the treatment of cachexia[28](index=28&type=chunk) - As of the Latest Practicable Date, there are no dedicated drugs approved by the FDA or NMPA for the treatment of cachexia[28](index=28&type=chunk) - Preclinical pharmacological models showed GFS202A significantly improved cachexia with weight loss and was well-tolerated[28](index=28&type=chunk) - NMPA IND approval was obtained in March 2025, and Phase I clinical trials for GFS202A monotherapy in cachexia commenced in April 2025[28](index=28&type=chunk) [Integrated R&D Platform, Expertise, and Business Development Capabilities](index=12&type=section&id=%E7%B6%9C%E5%90%88%E7%A0%94%E7%99%BC%E5%B9%B3%E5%8F%B0%E3%80%81%E5%B0%88%E6%A5%AD%E7%9F%A5%E8%AD%98%E5%8F%8A%E6%A5%AD%E5%8B%99%E7%99%BC%E5%B1%95%E8%83%BD%E5%8A%9B) The company's diversified product pipeline is supported by its integrated R&D platform, covering target discovery, molecular discovery and evaluation, translational science, and clinical development, complemented by differentiated CMC expertise to accelerate drug development and control costs, while also maximizing pipeline value through diversified collaborations [Strong R&D Capabilities Driven by an Integrated Technology Platform](index=12&type=section&id=%E7%94%B1%E4%B8%80%E5%A5%97%E7%B6%9C%E5%90%88%E6%8A%80%E8%A1%93%E5%B9%B3%E5%8F%B0%E9%A9%85%E5%8B%95%E7%9A%84%E5%BC%B7%E5%A4%A7%E7%A0%94%E7%99%BC%E8%83%BD%E5%8A%9B) The company possesses a robust integrated R&D platform encompassing target discovery (utilizing computational biology, bioinformatics, and AI), molecular discovery and evaluation (integrated molecular design, synthesis, and optimization), and translational science and clinical development (biomarkers, precision medicine, data science), effectively advancing drug development - The integrated R&D platform covers target discovery, molecular discovery and evaluation, translational science, and clinical development, complemented by CMC expertise[30](index=30&type=chunk) - The target discovery platform utilizes computational biology, bioinformatics, and artificial intelligence to systematically track, discover, and evaluate new drug targets[32](index=32&type=chunk) - The molecular discovery and evaluation platform includes integrated molecular design, synthesis, and optimization technologies, as well as efficient drug metabolism and pharmacokinetic research technologies[32](index=32&type=chunk) - The translational science and clinical development platform covers biomarker clinical translation technology, precision medicine technology throughout the project lifecycle, and clinical development technology based on data science and quantitative analysis[32](index=32&type=chunk) [Differentiated CMC Expertise to Accelerate Drug Development and Facilitate Cost Control](index=13&type=section&id=%E5%B7%AE%E7%95%B0%E5%8C%96%E7%9A%84CMC%E5%B0%88%E6%A5%AD%E7%9F%A5%E8%AD%98%E4%BB%A5%E5%8A%A0%E5%BF%AB%E8%97%A5%E7%89%A9%E9%96%8B%E7%99%BC%E4%B8%A6%E4%BF%83%E9%80%B2%E6%88%90%E6%9C%AC%E6%8E%A7%E5%88%B6) The company has established reliable in-house CMC (Chemistry, Manufacturing, and Control) capabilities, covering key aspects from preclinical candidate synthesis to commercial supply, which significantly accelerated drug development (e.g., GFH925 from IND to marketing approval in approximately three years) and substantially reduced GFH925 production costs by about **30-fold** through process optimization - The company has established comprehensive CMC capabilities, covering process development and quality control from preclinical candidate synthesis pathway design to clinical development and commercial drug supply[33](index=33&type=chunk) - CMC capabilities enabled GFH925 to obtain marketing approval in China approximately three years after IND approval, accelerating drug development[33](index=33&type=chunk) - By optimizing process routes and scaling up production, GFH925's production cost was significantly reduced by approximately **30-fold**, facilitating cost control[33](index=33&type=chunk) - Will collaborate with Innovent Biologics to ensure commercial supply of GFH925 in China[33](index=33&type=chunk) [Diversified Collaborations to Maximize the Value of Our Pipeline Programs](index=14&type=section&id=%E5%A4%9A%E5%85%83%E5%8C%96%E5%90%88%E4%BD%9C%E4%BB%A5%E6%9C%80%E5%A4%A7%E5%8C%96%E6%88%91%E5%80%91%E7%AE%A1%E7%B7%9A%E8%A8%88%E5%8A%83%E7%9A%84%E5%83%B9%E5%80%BC) The company actively seeks diversified global business development opportunities and strategic partnerships to maximize the commercial potential of its pipeline products and enhance development efficiency, having established collaborations with Innovent Biologics (GFH925), SELLAS (GFH009), Verastem (RAS-targeted products), and Merck (cetuximab supply), leveraging mutual strengths to advance pipeline development - Actively seeking diversified global business development opportunities, strategically selecting partners to complement strengths and create value[34](index=34&type=chunk) - Collaborating with Innovent Biologics to advance the development and commercialization of GFH925 in China[34](index=34&type=chunk) - Collaborating with SELLAS on GFH009 development and with Verastem on RAS-targeted pipeline products[34](index=34&type=chunk) - Obtained cetuximab supply from Merck for clinical trials of GFH925 in combination with cetuximab as a first-line treatment for advanced NSCLC[34](index=34&type=chunk) [Strategies](index=14&type=section&id=%E7%AD%96%E7%95%A5) The company's strategy focuses on advancing core and leading candidate products through global clinical development, strengthening its RAS pathway product matrix, and executing a global strategy through extensive and diversified commercialization and pipeline development collaborations, while also planning to establish GMP-compliant formulation manufacturing facilities and continuously attract, retain, and motivate high-caliber talent [Advancing Core and Leading Candidate Products Through Global Clinical Development](index=14&type=section&id=%E9%80%9A%E9%81%8E%E5%85%A8%E7%90%83%E8%87%A8%E5%BA%8A%E9%96%8B%E7%99%BC%E6%8E%A8%E9%80%B2%E6%A0%B8%E5%BF%83%E7%94%A2%E5%93%81%E5%8F%8A%E9%A0%98%E5%85%88%E5%80%99%E9%81%B8%E7%94%A2%E5%93%81) The company plans to leverage its strong internal clinical and development capabilities to efficiently advance the global clinical development of core products like GFH925 and GFH375, and leading candidates such as GFH312, maximizing asset therapeutic value by expanding indications and combination regimens - Aims to efficiently advance core products (GFH925 and GFH375) and other leading candidate products (e.g., GFH312) through various clinical development programs[35](index=35&type=chunk) - Plans to maximize the therapeutic value of assets by expanding the number of indications and combination regimens for candidate products[35](index=35&type=chunk) [Focusing on a Comprehensive RAS Pathway Product Matrix, Advancing and Supplementing Our Other Innovative Product Pipelines](index=14&type=section&id=%E8%81%9A%E7%84%A6%E5%85%A8%E9%9D%A2%E7%9A%84RAS%E9%80%9A%E8%B7%AF%E7%94%A2%E5%93%81%E7%9F%A9%E9%99%A3%EF%BC%8C%E6%8E%A8%E9%80%B2%E4%B8%A6%E8%A3%9C%E5%85%85%E6%88%91%E5%80%91%E5%85%B6%E4%BB%96%E5%89%B5%E6%96%B0%E7%94%A2%E5%93%81%E7%AE%A1%E7%B7%9A) The company is committed to achieving significant development milestones for its RAS matrix pipeline products in the coming years to solidify its competitive advantage in RAS-targeted therapies, while simultaneously monitoring the market environment to explore more drug development opportunities in oncology, autoimmune, and inflammatory diseases to supplement its product pipeline - Committed to achieving significant development milestones for RAS matrix pipeline products in the coming years, solidifying its position and competitive advantage in RAS-targeted therapies[36](index=36&type=chunk) - Plans to advance other RAS matrix candidate products (currently in preclinical stages) into clinical stages[36](index=36&type=chunk) - Exploring more drug development opportunities with significant market potential, particularly in oncology, autoimmune, and inflammatory diseases[36](index=36&type=chunk) [Executing Global Strategy Through Extensive and Diversified Commercialization Arrangements, Business Development, and Pipeline Development Collaborations](index=15&type=section&id=%E9%80%9A%E9%81%8E%E5%BB%A3%E6%B3%A2%E5%8F%8A%E5%A4%9A%E5%85%83%E5%8C%96%E7%9A%84%E5%95%86%E6%A5%AD%E5%8C%96%E5%AE%89%E6%8E%92%E3%80%81%E6%A5%AD%E5%8B%99%E9%96%8B%E7%99%BC%E5%8F%8A%E7%AE%A1%E7%B7%9A%E9%96%8B%E7%99%BC%E5%90%88%E4%BD%9C%EF%BC%8C%E5%9F%B7%E8%A1%8C%E5%85%A8%E7%90%83%E6%88%B0%E7%95%A5) The company plans to expand its geographical reach, accelerate global development of candidate products, and maximize pipeline value by establishing strategic partnerships with leading domestic and international pharmaceutical companies, with collaboration models covering early drug discovery, clinical development, manufacturing, and later-stage licensing arrangements - Continues to actively collaborate with existing and potential partners to explore potential opportunities for indication expansion and combination therapies[37](index=37&type=chunk) - Plans to establish strategic partnerships with leading domestic and international pharmaceutical companies to expand geographical coverage and accelerate global development[37](index=37&type=chunk) - Adopting a multi-layered development strategy, including early-stage collaborations leveraging partner experience and later-stage licensing arrangements with large multinational corporations[37](index=37&type=chunk) [Establishing GMP-Compliant Formulation Manufacturing Facilities](index=15&type=section&id=%E5%BB%BA%E7%AB%8B%E7%AC%A6%E5%90%88GMP%E6%A8%99%E6%BA%96%E7%9A%84%E8%A3%BD%E5%8A%91%E8%A3%BD%E9%80%A0%E8%A8%AD%E6%96%BD) To support the clinical development and commercialization of its diversified product pipeline and leverage existing CMC capabilities to reduce operating costs, the company plans to construct GMP-compliant formulation manufacturing facilities to enhance internal production capacity and ensure products meet regulatory requirements - Plans to construct GMP-compliant formulation manufacturing facilities to leverage existing CMC capabilities, reduce operating costs, and cover the full lifecycle of clinical development[38](index=38&type=chunk) - The construction of this facility aims to enhance production capacity and ensure products meet regulatory clinical and market approval requirements[38](index=38&type=chunk) - As of the Latest Practicable Date, the company is carefully formulating its facility construction plan[38](index=38&type=chunk) [Attracting, Retaining, and Motivating High-Caliber Talent Across Our Business Functions](index=16&type=section&id=%E5%90%B8%E5%BC%95%E3%80%81%E6%8C%BD%E7%95%99%E5%8F%8A%E6%BF%80%E5%8B%B5%E6%88%91%E5%80%91%E5%90%84%E6%A5%AD%E5%8B%99%E8%81%B7%E8%83%BD%E7%9A%84%E9%AB%98%E7%B4%A0%E8%B3%AA%E4%BA%BA%E6%89%8D) The company views employees as key to its growth strategy and will continue to invest in attracting, training, promoting, and retaining top global talent across all business functions, including discovery, R&D, manufacturing, and commercialization, by offering competitive compensation, continuous education, and a collaborative culture - Employees are key to the company's growth strategy and the development and commercialization of innovative drugs[39](index=39&type=chunk) - Will continue to recruit, train, promote, and retain relevant talent in the pharmaceutical and biotechnology industries, including in discovery, research and development, manufacturing, and commercialization[39](index=39&type=chunk) - Provides continuous education and training programs, along with competitive salaries, bonuses, and share-based payments to incentivize employees[39](index=39&type=chunk)[64](index=64&type=chunk) Employee and Compensation Overview | Metric | Data | | :--- | :--- | | Total Employees as of the Latest Practicable Date | 94 (excluding two co-founders) | | Percentage of Employees in R&D Function | **78%** (73 employees) | | Total Compensation Costs for H1 2025 | RMB **49.76 million** | | Total Compensation Costs for H1 2024 | RMB **59.78 million** | [Industry Overview](index=16&type=section&id=%E8%A1%8C%E6%A5%AD%E6%A6%82%E8%A7%80) This section outlines the development of the global cancer treatment market, emphasizing the growing demand for differentiated therapies, especially effective treatments for KRAS mutations (e.g., G12C and G12D), with the company's core products, GFH925 and GFH375, representing significant advancements in treating KRAS-mutated cancers - Cancer is one of the leading causes of death globally, with a continuous increase in medical demand for differentiated therapies that can improve remission duration and overall survival for oncology patients[40](index=40&type=chunk) - KRAS mutations (especially G12C and G12D) are key oncogenic drivers in relevant cancers, with rapidly growing global demand for effective therapies targeting these mutations[40](index=40&type=chunk) - The company's core products, GFH925 (KRAS G12C inhibitor) and GFH375 (KRAS G12D inhibitor), represent significant advancements in treating KRAS-mutated cancers[41](index=41&type=chunk) [Future and Outlook](index=17&type=section&id=%E6%9C%AA%E4%BE%86%E8%88%87%E5%B1%95%E6%9C%9B) The company reaffirms its corporate mission "Addressing Unmet Clinical Needs, Creating Global New Drugs" and its vision "Driven by Technology, Building a Globally Competitive Biopharmaceutical Company," with future plans including accelerating core product clinical development, advancing innovative pipelines to later stages, expanding the product portfolio, promoting global strategies through diversified collaborations, establishing GMP-compliant facilities, and expanding its professional team to become a globally competitive biopharmaceutical company - Corporate Mission: "Addressing Unmet Clinical Needs, Creating Global New Drugs"; Corporate Vision: "Driven by Technology, Building a Globally Competitive Biopharmaceutical Company"[42](index=42&type=chunk) - Aims to accelerate core product clinical development, rapidly advance innovative product pipelines to later stages, and expand the product portfolio in oncology, autoimmune, and inflammatory diseases[42](index=42&type=chunk) - Will advance global strategies through extensive and diversified collaborations, establish GMP-compliant facilities for internalized drug production, and expand its professional team[42](index=42&type=chunk) [Financial Review](index=17&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) For the six months ended June 30, 2025, the company recorded revenue of RMB **88.74 million** for the first time, but net loss for the period expanded to RMB **698.60 million**, primarily due to changes in the fair value of redeemable equity shares, with R&D costs decreasing and administrative expenses increasing due to listing-related fees, resulting in negative operating cash flow, increased net current liabilities, and a rising gearing ratio [Revenue](index=17&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the company recorded revenue of RMB **88.74 million** for the first time, primarily from intellectual property licensing, sales of goods, and R&D services, with no revenue recognized in the prior corresponding period Revenue Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Revenue | **88.74** | – | [Cost of Sales](index=17&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, the company recorded a cost of sales of RMB **16.92 million**, primarily attributable to fulfilling drug supply arrangements, with no cost of sales in the prior corresponding period Cost of Sales Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Cost of Sales | **16.92** | – | - Cost of sales was primarily attributable to fulfilling drug supply arrangements[44](index=44&type=chunk) [Other Income and Gains](index=17&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, other income and gains amounted to RMB **8.18 million**, a decrease of approximately **27.41%** from RMB **11.27 million** in the prior corresponding period, mainly due to reduced foreign exchange, fair value gains on financial assets, and lease revaluation Other Income and Gains Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Other Income and Gains | **8.18** | **11.27** | | YoY Change | **-27.41%** | - | - The decrease was primarily attributable to reduced foreign exchange, fair value gains on financial assets at fair value through profit or loss, and lease revaluation[45](index=45&type=chunk) [Research and Development Costs](index=17&type=section&id=%E7%A0%94%E7%99%BC%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, R&D costs decreased to RMB **122.44 million** from RMB **186.00 million** in the prior corresponding period, mainly because expenses incurred from the termination of overseas option and patent license agreements in the prior period did not recur in the current period R&D Costs Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | R&D Costs | **122.44** | **186.00** | | YoY Change | **-34.17%** | - | - The decrease was primarily due to expenses (totaling **RMB 64.27 million**) incurred from the termination of overseas option and patent license agreements in H1 2024 not recurring in the current period[46](index=46&type=chunk)[48](index=48&type=chunk) R&D Expense Details (RMB thousand) | R&D Expense Details | H1 2025 | H1 2024 | | :--- | :--- | :--- | | CMC, Materials, and Preclinical Costs | **41,114** | **28,110** | | Clinical Development Costs | **34,579** | **34,220** | | Staff Costs | **28,123** | **33,762** | | Share-based Payments | **9,982** | **14,519** | | Depreciation and Amortization | **4,538** | **6,351** | | Intellectual Property Management Expenses | **1,666** | **2,793** | | Termination Fees | – | **45,403** | | Patent License Agreements | – | **18,868** | | Others | **2,433** | **1,975** | | **Total** | **122,435** | **186,001** | [Administrative Expenses](index=18&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, administrative expenses were RMB **36.95 million**, an increase of approximately **99.64%** from RMB **18.51 million** in the prior corresponding period, mainly due to increased listing-related fees incurred during the reporting period Administrative Expenses Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Administrative Expenses | **36.95** | **18.51** | | YoY Change | **+99.64%** | - | - The increase was primarily due to increased listing-related fees incurred during the reporting period[49](index=49&type=chunk) [Other Expenses](index=18&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, other expenses increased from RMB **3 thousand** in the prior corresponding period to RMB **292 thousand**, primarily attributable to exchange differences Other Expenses Comparison | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Other Expenses | **292** | **3** | | YoY Change | **+9633%** | - | - The increase was primarily attributable to exchange differences[50](index=50&type=chunk) [Finance Costs](index=18&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, finance costs decreased from RMB **14.60 million** in the prior corresponding period to RMB **3.03 million**, primarily due to reduced transaction costs for issuing redeemable equity shares Finance Costs Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Finance Costs | **3.03** | **14.60** | | YoY Change | **-79.25%** | - | - The decrease was primarily due to reduced transaction costs for issuing redeemable equity shares[51](index=51&type=chunk) [Fair Value Changes of Redeemable Equity Shares](index=19&type=section&id=%E6%AC%8A%E7%9B%8A%E8%82%A1%E4%BB%BD%E8%B4%96%E5%9B%9E%E8%B2%A0%E5%82%B5%E7%9A%84%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%AE%8A%E5%8B%95) For the six months ended June 30, 2025, the fair value change of redeemable equity shares was a negative RMB **615.87 million**, a significant expansion of loss compared to a negative RMB **241.46 million** in the prior corresponding period, primarily attributable to changes in the company's valuation Fair Value Changes of Redeemable Equity Shares Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Fair Value Change | (**615.87**) | (**241.46**) | | YoY Change | Loss expanded **155%** | - | - The change was primarily attributable to changes in the company's valuation[52](index=52&type=chunk) [Loss for the Period](index=19&type=section&id=%E6%9C%9F%E5%85%A7%E8%99%A7%E6%90%8D) For the six months ended June 30, 2025, the loss for the period was RMB **698.60 million**, a significant increase from RMB **449.30 million** in the prior corresponding period, primarily impacted by changes in the fair value of redeemable equity shares Loss for the Period Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Loss for the Period | (**698.60**) | (**449.30**) | | YoY Change | Loss expanded **55.49%** | - | [Liquidity and Capital Resources](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) For the six months ended June 30, 2025, the company recorded a negative cash flow from operating activities of RMB **50.49 million**, primarily from R&D costs, with cash and cash equivalents at RMB **346.53 million**, a decrease from the end of 2024, as the company primarily relies on equity financing and expects to generate more cash flow in the future through GFH925 commercialization and pipeline development Cash Flow from Operating Activities Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Net Cash Flow Used in Operating Activities | (**50.49**) | (**162.96**) | Cash and Cash Equivalents Comparison | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | **346.53** | **362.13** | - The Group relies on equity financing as its primary source of liquidity[54](index=54&type=chunk) - Expects to generate more cash flow in the future through GFH925's launch and commercialization revenue, collaboration agreements, and other pipeline product development[54](index=54&type=chunk) [Foreign Exchange Risk](index=19&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The company primarily operates in China, settling most transactions in RMB, but its US and Australian subsidiaries have functional currencies of USD and AUD, respectively, thus facing foreign exchange risk, with no hedging contracts currently in place, but continuous monitoring and potential mitigation measures are considered - The Group primarily operates in China, with most transactions settled in RMB[55](index=55&type=chunk) - Faces foreign exchange risk, primarily from monetary assets, liabilities, and transactions denominated in USD and AUD[55](index=55&type=chunk) - Currently has no foreign exchange hedging contracts but will continue to monitor closely[55](index=55&type=chunk) [Bank Borrowings](index=20&type=section&id=%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) As of June 30, 2025, the company's total outstanding bank borrowings were RMB **79.00 million**, all unsecured and due within one year, with annual interest rates ranging from **2.30%** to **2.75%**, and the gearing ratio significantly increased to **578.62%** due to the increase in redeemable equity shares Bank Borrowings Comparison | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Outstanding Borrowings | **79.00** | **51.13** | | Nature of Borrowings | Unsecured | Unsecured | | Maturity Date | Within one year | Within one year | | Annual Interest Rate | **2.30%-2.75%** | **2.50%-2.90%** | Gearing Ratio Comparison | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | **578.62%** | **422.38%** | | Reason for Change | Primarily due to increased redeemable equity shares | - | [Pledged Assets](index=20&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the company had not pledged or mortgaged any assets - As of June 30, 2025, the Group had not pledged or mortgaged any assets[57](index=57&type=chunk) [Contingent Liabilities](index=20&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the company had no significant contingent liabilities or guarantees - As of June 30, 2025, the Group had no significant contingent liabilities or guarantees[58](index=58&type=chunk) [Significant Acquisitions and/or Disposals of Subsidiaries, Associates, and Joint Ventures](index=20&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E8%B3%87%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E2%95%B1%E6%88%96%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the company had no significant acquisitions and/or disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the Group had no significant acquisitions and/or disposals of subsidiaries, associates, and joint ventures[59](index=59&type=chunk) [Material Investments](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of the Latest Practicable Date, the company held no material investments representing **5%** or more of the Group's total assets - As of the Latest Practicable Date, the Group held no material investments representing **5%** or more of the Group's total assets[60](index=60&type=chunk) [Future Plans for Material Investments and Capital Assets](index=20&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) Except as disclosed in this report, as of the Latest Practicable Date, the company had no other material investment plans or capital asset plans - Except as disclosed in this report, as of the Latest Practicable Date, the Group had no other material investment plans or capital asset plans[61](index=61&type=chunk) [Employees and Remuneration Policy](index=21&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of the Latest Practicable Date, the company had a total of **94** employees (excluding two co-founders), with **78%** engaged in R&D, and attracts, retains, and motivates high-caliber talent through competitive compensation, continuous education and training programs, and incentive schemes, with total compensation costs for the six months ended June 30, 2025, at RMB **49.76 million** Number of Employees by Function (As of the Latest Practicable Date) | Function | Number of Employees | Percentage | | :--- | :--- | :--- | | R&D | **73** | **78%** | | Business Strategy and Corporate Development | **3** | **3%** | | General and Administrative | **18** | **19%** | | **Total** | **94** | **100%** | Compensation Costs Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Total Compensation Costs | **49.76** | **59.78** | - The company provides continuous education and training programs, along with competitive salaries, bonuses, and share-based payments to incentivize employees[64](index=64&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section outlines the company's commitment to and practices in corporate governance, including compliance with the Corporate Governance Code and Model Code for Securities Transactions by Directors (applicable post-listing), the functions of the Audit Committee, planned use of global offering proceeds, and the execution of the pre-IPO share incentive scheme, also disclosing the significant event of H-share listing on the Stock Exchange on September 19, 2025 [Compliance with Corporate Governance Code](index=22&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company is committed to upholding the highest standards of corporate governance, and as H-shares were not listed during the reporting period (ended June 30, 2025), relevant provisions of the Corporate Governance Code were not applicable, but the company will regularly review and monitor its corporate governance practices post-listing - The company and its directors are committed to upholding and implementing the highest standards of corporate governance[65](index=65&type=chunk) - As H-shares were not listed on the Stock Exchange as of June 30, 2025, the code provisions set out in Part 2 of the Corporate Governance Code were not applicable during the reporting period[65](index=65&type=chunk) - The company will regularly review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[66](index=66&type=chunk) [Compliance with Model Code for Securities Transactions by Directors and Supervisors](index=22&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E5%8F%8A%E7%9B%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Model Code as the code of conduct for directors and supervisors regarding securities transactions, which was not applicable during the reporting period as H-shares were not listed, but will become effective from the listing date - The company has adopted the Model Code as the code of conduct for directors and supervisors regarding transactions in the company's securities[67](index=67&type=chunk) - As H-shares were not listed on the Stock Exchange as of June 30, 2025, the Model Code was not applicable during the reporting period[67](index=67&type=chunk) - The provisions under the Listing Rules regarding compliance with the Model Code for securities transactions by directors and supervisors have been applicable to the company since the listing date[67](index=67&type=chunk) [Purchase, Sale, or Redemption of the Company's Listed Securities](index=22&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) As of June 30, 2025, since the shares were not yet listed on the Stock Exchange, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, nor held any treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[68](index=68&type=chunk) - As of June 30, 2025, the company held no treasury shares[68](index=68&type=chunk) [Audit Committee](index=23&type=section&id=%E5%AF%A9%E8%A8%88%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee comprises Ms. Lu Shaohua (Chairperson), Mr. Zhu Jingyang, and Dr. Zhou Demin, with terms of reference compliant with the Listing Rules, and has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and discussed accounting policies and internal control matters with senior management - The Audit Committee comprises Ms. Lu Shaohua (Chairperson), Mr. Zhu Jingyang, and Dr. Zhou Demin[69](index=69&type=chunk) - The Audit Committee has reviewed this report and the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[69](index=69&type=chunk) [Auditor](index=23&type=section&id=%E5%AF%A9%E8%A8%88%E5%B8%AB) The company's external auditor, Ernst & Young, has conducted an independent review of the Group's interim financial information for the reporting period in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants - The company's external auditor is Ernst & Young[70](index=70&type=chunk) - An independent review of the Group's interim financial information for the reporting period has been conducted in accordance with Hong Kong Standard on Review Engagements 2410[70](index=70&type=chunk) [Use of Proceeds from Global Offering](index=24&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The company's H-shares were listed on the Stock Exchange on September 19, 2025, with net proceeds from the global offering amounting to approximately HKD **1,669.92 million**, which, as of the Latest Practicable Date, remained unutilized, with detailed plans for their use, primarily for the development of core products and other candidate products, as well as working capital - The company's H-shares were listed on the Stock Exchange on September 19, 2025[71](index=71&type=chunk) - Net proceeds from the global offering amounted to approximately **HKD 1,669.92 million**[71](index=71&type=chunk) - As of the Latest Practicable Date, the company had not utilized any portion of the net proceeds from the global offering[71](index=71&type=chunk) Intended Use of Net Proceeds from Global Offering | Use | Allocation (HKD million) | Percentage of Total Net Proceeds | Proposed Timeline for Use | | :--- | :--- | :--- | :--- | | Funding for further development of core products GFH925 and GFH375 | **1,185.64** | **71.0%** | | | - Funding for GFH925 clinical development | **551.07** | **33.0%** | December 31, 2029 | | - Funding for GFH375 clinical development in China | **634.57** | **38.0%** | December 31, 2028 | | Funding for development of other candidate products (e.g., GFH312, GFS202A, GFH276, GFS784, and other preclinical candidates) | **317.28** | **19.0%** | December 31, 2030 | | Working capital and other general corporate purposes | **166.99** | **10.0%** | December 31, 2028 | | **Total** | **1,669.92** | **100.0%** | | [Dividends](index=24&type=section&id=%E8%82%A1%E6%81%AF) The Board did not recommend the distribution of an interim dividend for the six months ended June 30, 2025 - The Board did not recommend the distribution of an interim dividend for the six months ended June 30, 2025[73](index=73&type=chunk) [Interests and Short Positions of Directors, Supervisors, and Chief Executive in Shares, Underlying Shares, and Debentures of the Company or Any Associated Corporation](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%88%96%E5%85%B6%E4%BB%BB%E4%BD%95%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As the company was not listed on the Stock Exchange as of June 30, 2025, Sections 7 and 8 of Part XV and Section 352 of the Securities and Futures Ordinance are not applicable, with relevant interests and short positions to be disclosed in the company's future annual reports - As the company was not listed on the Stock Exchange as of June 30, 2025, relevant provisions of the Securities and Futures Ordinance are not applicable[74](index=74&type=chunk) - Interests and short positions of directors, supervisors, and chief executive in shares, underlying shares, and debentures of the company or any associated corporation will be disclosed in the company's future annual reports[74](index=74&type=chunk) [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares](index=25&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As the company was not listed on the Stock Exchange as of June 30, 2025, Sections 2 and 3 of Part XV and Section 336 of the Securities and Futures Ordinance are not applicable to substantial shareholders, with relevant interests and short positions to be disclosed in the company's future annual reports - As the company was not listed on the Stock Exchange as of June 30, 2025, relevant provisions of the Securities and Futures Ordinance are not applicable to substantial shareholders[75](index=75&type=chunk) - Interests or short positions of substantial shareholders in shares and underlying shares will be disclosed in the company's future annual reports[75](index=75&type=chunk) [Pre-IPO Share Incentive Scheme](index=25&type=section&id=%E9%A6%96%E6%AC%A1%E5%85%AC%E9%96%8B%E7%99%BC%E5%94%AE%E5%89%8D%E8%82%A1%E6%AC%8A%E6%BF%80%E5%8B%B5%E8%A8%88%E5%8A%83) The company's pre-IPO share incentive scheme, adopted in 2020 and revised in 2023, has seen all granted awards vested and exercised, with no new incentives to be granted post-listing, and the scheme will not cause any dilution to the company's shareholders' holdings - The company adopted the pre-IPO share incentive scheme in 2020, which was revised and restated in July 2023[76](index=76&type=chunk) - All awards granted under the pre-IPO share incentive scheme have vested and been exercised, and no new incentives will be granted post-listing[76](index=76&type=chunk) - The pre-IPO share incentive scheme will not cause any dilution to the company's shareholders' holdings post-listing[76](index=76&type=chunk) [Events After the Reporting Period](index=25&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E7%9A%84%E9%87%8D%E5%A4%A7%E4%BA%8B%E4%BB%B6) The most significant event after the reporting period was the listing of the company's H-shares on the Main Board of the Stock Exchange on September 19, 2025, with net proceeds from the global offering of approximately HKD **1,669.92 million**, and other than this, as of the Latest Practicable Date, the company was not aware of any other material events that might affect the Group - On September 19, 2025, the company's H-shares were listed on the Main Board of the Stock Exchange[78](index=78&type=chunk) - Net proceeds from the global offering amounted to approximately **HKD 1,669.92 million**[78](index=78&type=chunk) - Except as disclosed in this report, from June 30, 2025, up to the Latest Practicable Date, the company was not aware of any other material events that might affect the Group[78](index=78&type=chunk) [Independent Review Report](index=26&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) Ernst & Young conducted an independent review of GenFleet Therapeutics (Shanghai) Co., Ltd.'s interim condensed consolidated financial information for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410, concluding that nothing came to their attention that caused them to believe the interim financial information was not prepared, in all material respects, in accordance with International Accounting Standard 34 - Ernst & Young has reviewed the interim financial information presented on pages 26 to 49[80](index=80&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[81](index=81&type=chunk) - The conclusion was that nothing came to the auditor's attention that caused them to believe the interim financial information was not prepared, in all material respects, in accordance with International Accounting Standard 34[82](index=82&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=27&type=section&id=%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) This statement presents the condensed consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, and the prior corresponding period, showing that the company recorded revenue of RMB **88.74 million** for the first time, but the loss for the period expanded to RMB **698.60 million**, primarily due to the negative impact of fair value changes in redeemable equity shares Interim Condensed Consolidated Profit or Loss and Other Comprehensive Income (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | **88,744** | – | | Cost of Sales | (**16,924**) | – | | Other Income and Gains | **8,180** | **11,268** | | R&D Costs | (**122,435**) | (**186,001**) | | Administrative Expenses | (**36,952**) | (**18,509**) | | Other Expenses | (**292**) | (**3**) | | Finance Costs | (**3,026**) | (**14,597**) | | Loss before fair value changes of redeemable equity shares | (**82,705**) | (**207,842**) | | Fair value changes of redeemable equity shares | (**615,873**) | (**241,461**) | | Loss before income tax | (**698,578**) | (**449,303**) | | Income tax expense | (**22**) | – | | **Loss for the period** | **(698,600)** | **(449,303)** | | Total comprehensive loss for the period | (**698,018**) | (**449,563**) | | Basic and diluted loss per share (RMB) | (**27.02**) | (**18.02**) | [Interim Condensed Consolidated Statement of Financial Position](index=28&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%E7%8B%80%E6%B3%81%E8%A1%A8) This statement presents the condensed consolidated financial position as of June 30, 2025, and December 31, 2024, showing that the company's net current liabilities significantly increased to RMB **2,607.35 million**, primarily due to a substantial rise in redeemable equity shares to RMB **2,829.99 million**, leading to a further expansion of the equity deficit Interim Condensed Consolidated Financial Position (RMB thousand) | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Total non-current assets | **33,826** | **38,573** | | Total current assets | **518,098** | **568,248** | | Total current liabilities | **3,125,445** | **2,493,429** | | **Net current liabilities** | **(2,607,347)** | **(1,925,181)** | | Total assets less current liabilities | (**2,573,521**) | (**1,886,608**) | | Total non-current liabilities | **68,059** | **69,653** | | **Net liabilities** | **(2,641,580)** | **(1,956,261)** | | Total equity deficit | (**2,641,580**) | (**1,956,261**) | | Redeemable equity shares | **2,829,994** | **2,214,121** | [Interim Condensed Consolidated Statement of Changes in Equity](index=30&type=section&id=%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) This statement presents the condensed consolidated changes in equity for the six months ended June 30, 2025, and the prior corresponding period, showing that as of June 30, 2025, the total equity deficit was RMB **2,641.58 million**, primarily reflecting a loss for the period of RMB **698.60 million** and share-based payment expenses of RMB **12.70 million** Interim Condensed Consolidated Changes in Equity (RMB thousand) | Metric | As of January 1, 2025 | Exchange differences on translation | Loss for the period | Share-based payment | As of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Share capital | **26,774** | – | – | – | **26,774** | | Share premium | **714,853** | – | – | – | **714,853** | | Share-based payment reserve | **65,465** | – | – | **12,699** | **78,164** | | Other reserves | (**1,459,093**) | – | – | – | (**1,459,093**) | | Exchange fluctuation reserve | (**1,475**) | **582** | – | – | (**893**) | | Accumulated losses | (**1,302,785**) | – | (**698,600**) | – | (**2,001,385**) | | **Total deficit** | **(1,956,261)** | **582** | **(698,600)** | **12,699** | **(2,641,580)** | [Interim Condensed Consolidated Statement of Cash Flows](index=31&type=section&id=%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) This statement presents the condensed consolidated cash flows for the six months ended June 30, 2025, and the prior corresponding period, showing that net cash flow used in operating activities was a negative RMB **50.49 million**, an improvement from the prior corresponding period, with investing activities generating cash inflow of RMB **13.13 million**, while cash inflow from financing activities significantly decreased to RMB **21.46 million** Interim Condensed Consolidated Cash Flows (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash flows used in operating activities | (**50,492**) | (**162,963**) | | Net cash flows from/(used in) investing activities | **13,132** | (**102,653**) | | Net cash flows from financing activities | **21,464** | **211,387** | | Net decrease in cash and cash equivalents | (**15,896**) | (**54,229**) | | Cash and cash equivalents at end of period | **346,525** | **279,030** | [Notes to the Interim Condensed Consolidated Financial Information](index=33&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 interim condensed consolidated financial information, covering company information, basis of preparation, operating segment information, revenue recognition, various expenses, taxation, loss per share, balance sheet items, changes and valuation assumptions for redeemable equity shares, share capital, commitments, related party transactions, and events after the reporting period, offering deeper explanations and background for the financial statements [Company Information](index=33&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99_%E9%99%84%E8%A8%BB) GenFleet Therapeutics (Shanghai) Co., Ltd. was established in mainland China on August 23, 2017, as a clinical-stage biotechnology company primarily engaged in drug research, development, and commercialization - The company was established in mainland China on August 23, 2017[92](index=92&type=chunk) - The Group is primarily engaged in drug research, development, and commercialization[93](index=93&type=chunk) [Basis of Preparation](index=33&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and presented in RMB, and despite recording net current liabilities as of June 30, 2025, the Board, based on prudent budget assessments, believes the company has sufficient working capital to meet its current obligations, thus deeming the preparation of financial statements on a going concern basis appropriate - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[94](index=94&type=chunk) - The Group recorded net current liabilities of **RMB 2,607,347,000** as of June 30, 2025, primarily due to redeemable equity shares[96](index=96&type=chunk) - The Board has prepared full-speed and backbone budget plans and is satisfied that the Group will have sufficient working capital to meet its current obligations, thus deeming the preparation of financial statements on a going concern basis appropriate[97](index=97&type=chunk)[98](index=98&type=chunk) - The redemption features of the redeemable equity shares ceased to be effective from the date prior to the listing application and will be reinstated upon the occurrence of specific listing failure events[96](index=96&type=chunk) [Operating Segment Information](index=34&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group is engaged in biopharmaceutical R&D and is considered a single reportable segment, with most revenue derived from US customers, while almost all non-current assets are located in mainland China - The Group is engaged in biopharmaceutical R&D and is considered a single reportable segment[99](index=99&type=chunk) - Most of the Group's revenue is derived from US customers[100](index=100&type=chunk) - Almost all of the Group's non-current assets are located in mainland China[101](index=101&type=chunk) [Revenue](index=36&type=section&id=%E6%94%B6%E5%85%A5_%E9%99%84%E8%A8%BB) For the six months ended June 30, 2025, the company's revenue was RMB **88.74 million**, primarily from intellectual property licensing (RMB **82.88 million**), with most revenue recognized at a point in time, and the notes detail licensing agreements for GFH925 and GFH375, including the termination of GFH925's overseas option and related fee payments, and the collaboration with Verastem for GFH375 Revenue Analysis (RMB thousand) | Type of Service | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Intellectual property licensing | **82,876** | – | | Others | **5,868** | – | | **Total** | **88,744** | **–** | | Timing of revenue recognition: | | | | Transferred at a point in time | **87,464** | – | | Transferred over time | **1,280** | – | - In January 2024, the company entered into a supplemental agreement with Innovent Biologics to terminate the overseas option under the GFH925 licensing agreement, requiring the company to pay Innovent Biologics a non-refundable termination fee of **USD 20,000,000** in installments[104](index=104&type=chunk) - In January 2025, Verastem exercised one of three options related to the Group's GFH375, obtaining an exclusive license to develop and commercialize GFH375 outside Greater China[105](index=105&type=chunk) Transaction Price Allocated to Remaining Performance Obligations (RMB thousand) | Amount expected to be recognized as revenue | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Within one year | **5,837** | – | | After one year | **11,944** | **14,360** | | **Total** | **17,781** | **14,360** | [Other Income and Gains](index=38&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A_%E9%99%84%E8%A8%BB) For the six months ended June 30, 2025, other income and gains amounted to RMB **8.18 million**, a decrease from RMB **11.27 million** in the prior corresponding period, primarily due to reduced bank interest income and the absence of net exchange differences, fair value gains on financial assets, and lease revaluation gains present in the prior period Other Income and Gains Details (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Government grants | **891** | **800** | | Bank interest income | **7,289** | **8,172** | | Net exchange differences | – | **1,520** | | Fair value gains on financial assets at fair value through profit or loss | – | **288** | | Lease revaluation gains | – | **488** | | **Total** | **8,180** | **11,268** | [Loss Before Income Tax](index=38&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E8%99%A7%E6%90%8D) The Group's loss before income tax has been deducted or included with various expenses, including cost of inventories sold of RMB **16.04 million**, listing expenses of RMB **17.03 million**, and total staff costs of RMB **49.76 million** (of which share-based payment expenses were RMB **12.70 million**) Items Deducted from/(Included in) L

Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 28,176,000, representing a 8.7% increase from HKD 25,921,000 in the same period of 2024[8] - Gross profit increased to HKD 19,280,000, up 37.5% from HKD 14,034,000 year-on-year[8] - The company reported a net loss of HKD 2,385,000 for the period, compared to a net loss of HKD 1,609,000 in 2024, indicating a deterioration in performance[9] - Basic and diluted loss per share was HKD 0.53, compared to HKD 0.23 in the previous year, reflecting a 130.4% increase in loss per share[8] - The total comprehensive loss for the period ended June 30, 2025, was HKD 3,526,000, compared to a loss of HKD 1,522,000 for the same period in 2024, representing an increase in loss of approximately 131.5%[15] - The group reported a loss before tax of HKD 2,575,000 for the six months ended June 30, 2025, compared to a loss of HKD 1,681,000 for the same period in 2024, indicating a deterioration in performance[43] Assets and Liabilities - Total assets decreased to HKD 107,363,000 from HKD 113,445,000 as of December 31, 2024, a decline of 5.4%[12] - Non-current assets decreased from HKD 39,336,000 to HKD 34,012,000, a reduction of 13.5%[12] - Current assets slightly decreased to HKD 73,351,000 from HKD 74,109,000, a decline of 1.0%[12] - Total liabilities decreased to HKD 63,143,000 from HKD 67,766,000, a reduction of 6.9%[13] - The company reported a significant increase in bank borrowings, rising to HKD 4,199,000 from HKD 1,596,000, an increase of 162.5%[13] - As of June 30, 2025, total equity attributable to equity holders was HKD 39,266,000, down from HKD 41,164,000 as of January 1, 2024, reflecting a decrease of approximately 4.6%[15] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2025, was HKD 2,704,000, compared to HKD 3,089,000 for the same period in 2024, indicating a decline of about 12.5%[17] - The net cash used in investing activities for the six months ended June 30, 2025, was HKD 2,613,000, a significant decrease from the net cash generated of HKD 1,223,000 in 2024[17] - The net cash used in financing activities for the six months ended June 30, 2025, was HKD 2,054,000, an improvement compared to HKD 6,091,000 in the previous year, showing a reduction of approximately 66.3%[17] - As of June 30, 2025, cash and cash equivalents decreased to HKD 62,616,000 from HKD 63,463,000 at the beginning of the period, reflecting a decline of about 1.3%[17] Business Segments - For the six months ended June 30, 2025, the healthcare and medical business generated revenue of HKD 23,536,000, while the beauty and fitness business contributed HKD 4,640,000, totaling HKD 28,176,000[32] - The total net revenue for the six months ended June 30, 2025, was HKD 6,481,000, a significant increase from HKD 1,422,000 in the same period of 2024, representing a growth of approximately 355%[34] - The total non-current assets as of June 30, 2025, amounted to HKD 34,012,000, with HKD 33,784,000 attributed to the healthcare and medical business[37] Expenses and Cost Management - Direct costs and operating expenses decreased to approximately HKD 8,896,000, down about 25.16% from HKD 11,887,000 in 2024, primarily due to reduced product costs[69] - Administrative expenses were approximately HKD 10,083,000, a decrease of about 14.28% from HKD 11,763,000 in 2024, attributed to cost control measures[73] - The company incurred net financing costs of HKD 511,000 for the six months ended June 30, 2025, down from HKD 1,026,000 in 2024, indicating improved cost management[41] Shareholder Information - As of June 30, 2025, Mr. Liu Dong holds 25,146,000 shares (3.81%) and Ms. Zhou Cuiqiong holds 370,071,730 shares (56.08%) in the company[99] - Major shareholder Wei Xin International holds 370,071,730 shares (56.08%) and Chang Jian Limited holds 67,647,058 shares (10.25%) in the company[102] - The company confirmed compliance with the corporate governance code, with 370,071,730 shares held by Ms. Zhou and Wei Xin, representing approximately 56.1% of the total issued shares of 659,894,693 as of June 30, 2025[106] Governance and Compliance - The company has engaged an external consultant for internal audit functions due to the absence of an internal audit department, ensuring independent review of risk management and internal control systems[107] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements, confirming compliance with applicable accounting standards and sufficient disclosure[109] - Mr. Cai Dawi resigned as an independent non-executive director effective June 26, 2025, leading to non-compliance with certain listing rules until a replacement is appointed[96] - Ms. Ma Sha was appointed as an independent non-executive director effective July 1, 2025, restoring compliance with listing rules regarding independent directors[97] Other Information - The company did not recommend any dividend for the six months ended June 30, 2025, consistent with the previous year[48] - The group has no significant investments as of June 30, 2025[84] - The group has not made any acquisitions or disposals of subsidiaries during the period[85] - The group employed 162 staff in Hong Kong and China as of June 30, 2025[94] - There are no significant ongoing or threatened litigations against the company or its subsidiaries as of the report date[95]

Financial Performance - CANbridge Pharmaceuticals reported a revenue of RMB 150 million for the first half of 2025, representing a 25% increase compared to the same period last year[9]. - The company reported a revenue decrease of RMB 22.5 million or 50.3% to RMB 22.2 million for the six months ending June 30, 2025, primarily due to the termination of the distribution agreement for HeLianAn® in Taiwan[16]. - The company achieved a profit of RMB 59.2 million for the six months ending June 30, 2025, reversing a loss of RMB 247.3 million in the same period of the previous year[16]. - The company reported a net loss attributable to equity holders of RMB 409,080,000, compared to a loss of RMB 474,488,000 in the previous year[174]. - The total comprehensive income for the period was RMB 61,662,000, compared to a comprehensive loss of RMB 245,244,000 in 2024[176]. Research and Development - The company has allocated RMB 30 million for R&D in new technologies aimed at improving drug delivery systems[9]. - R&D expenses decreased by RMB 155.3 million or 89.6% to RMB 18.0 million, attributed to the approval of the new drug application for GoReNing®[16]. - The company is investing in next-generation gene therapy technologies, with a focus on providing potential one-time, durable treatments for rare genetic diseases[22]. - Research and development expenses for the six months were RMB 17,990,000, significantly reduced from RMB 173,256,000 in 2024[172]. Product Development and Launches - The company is actively developing two new products expected to launch in Q4 2025, which are anticipated to contribute an additional RMB 50 million in revenue[9]. - The company launched MaiRuibei® in January 2024, identifying 874 ALGS patients by June 30, 2025, with commercial insurance plans covering 196 million people in 39 cities[11]. - The company achieved significant progress in its drug product line and business operations since its listing on December 10, 2021[32]. - The commercialization of the product Gorenin, approved for sale in China on May 15, 2025, is expected to enhance profitability[187]. Strategic Partnerships and Collaborations - CANbridge Pharmaceuticals is exploring strategic partnerships to enhance market expansion in Southeast Asia, targeting a 15% market share by 2026[9]. - The company entered a strategic partnership with Baiyang Pharmaceutical, receiving a strategic cooperation fee of RMB 50 million and raising approximately HKD 100 million through the subscription of 74,971,468 shares by a subsidiary of Baiyang Pharmaceutical, representing 14.99% of the enlarged issued share capital[11]. - The company has established a partnership with WuXi Biologics for the development of Ge Ruining, addressing the high treatment costs that limit access for many GD patients in China[38]. Market and Industry Insights - The Chinese rare disease drug market was approximately $1.3 billion in 2020, with projections to reach $25.9 billion by 2030, reflecting a compound annual growth rate (CAGR) of 34.5%[20]. - The National Rare Disease Catalog in China now includes 207 rare diseases, with the second batch announced in 2023 adding 86 new diseases, enhancing the regulatory environment for rare disease treatments[21]. Financial Position and Liquidity - Cash and bank balances as of June 30, 2025, were RMB 1,960,000, insufficient to cover the upcoming bank and other borrowings of RMB 24,173,000 due within the next 12 months[172]. - The company has a current liability net amount of approximately RMB 462,681,000, raising concerns about its ability to meet short-term obligations[183]. - The company is actively taking measures to alleviate liquidity pressure and improve its financial position, although specific strategies were not detailed in the provided content[183]. Employee and Corporate Governance - The group had a total employee cost of approximately RMB 27.7 million for the reporting period, a decrease from RMB 54.1 million as of December 31, 2024, representing a reduction of about 48.8%[162]. - The company has streamlined its workforce to 45 full-time employees as of June 30, 2025, focusing on key projects amid challenging macroeconomic conditions[17]. - The company has adhered to the corporate governance code principles and has maintained high standards of corporate governance[152]. Shareholder Information and Equity Incentives - The company has a maximum of 54,549,230 shares involved in the pre-IPO equity incentive plan, with 55,708,000 stock options granted, of which 6,244,823 have expired as of the report date[73]. - The maximum number of shares that may be involved in the pre-IPO equity incentive plan is 54,549,230 shares, with 55,708,000 stock options granted[96]. - The board has decided not to declare an interim dividend for the six months ending June 30, 2025[81].

[Company Information](index=3&type=section&id=Company%20Information) This section details changes in the board and committee members, along with updates to the company's contact and audit information [Board and Committee Members](index=3&type=section&id=Board%20and%20Committee%20Members) The board saw changes in independent non-executive directors across the Audit, Remuneration, and Nomination Committees, with new appointments and one retirement - Independent Non-Executive Director Mr. Xu Qilin retired on **June 26, 2025**[4](index=4&type=chunk) - Independent Non-Executive Director Mr. Wang Dongyuan was appointed as a member of the Audit and Remuneration Committees and Chairman of the Nomination Committee on **June 26, 2025**[4](index=4&type=chunk) - Independent Non-Executive Director Professor Lou Zhenye was appointed as a member of the Nomination and Corporate Governance Committees on **June 26, 2025**[4](index=4&type=chunk)[5](index=5&type=chunk) [Company Contact and Audit Information](index=4&type=section&id=Company%20Contact%20and%20Audit%20Information) The company's principal place of business remains unchanged, but the auditor was changed on December 9, 2024 - The auditor resigned from Zhongzheng Tianheng Certified Public Accountants Limited and Furuimaze Certified Public Accountants Limited was appointed on **December 9, 2024**[5](index=5&type=chunk) - The company's stock code is **00574** and its website is **www.pashun.com.cn**[5](index=5&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the group's profit or loss performance, highlighting the shift from profit to loss primarily due to the absence of a one-off debt restructuring gain [Profit or Loss Overview](index=5&type=section&id=Profit%20or%20Loss%20Overview) The Group shifted from a profit of RMB35,427 thousand to a loss of RMB9,055 thousand, primarily due to the absence of a one-off debt restructuring gain Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 48,693 | 48,830 | -0.28% | | Cost of sales | (42,481) | (39,303) | +8.09% | | Gross profit | 6,212 | 9,527 | -34.80% | | Gain on debt restructuring of the Company | – | 47,356 | -100.00% | | Other income | 692 | 734 | -5.72% | | Other losses – net | (1,623) | (6,362) | -74.49% | | Selling and distribution expenses | (2,375) | (3,408) | -30.32% | | General and administrative expenses | (5,707) | (7,281) | -21.61% | | Finance costs | (6,253) | (5,075) | +23.21% | | (Loss)/Profit before tax | (9,054) | 35,491 | -125.51% | | Income tax expense | (1) | (64) | -98.44% | | (Loss)/Profit for the period | (9,055) | 35,427 | -125.56% | - The Group turned from profit to loss, primarily due to a one-off gain of **RMB47.4 million** from debt restructuring in the prior period of 2024, which was absent in 2025[7](index=7&type=chunk)[54](index=54&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section outlines the group's comprehensive income performance, showing a shift from total comprehensive income to total comprehensive expense, influenced by period loss and exchange differences [Comprehensive Income Overview](index=6&type=section&id=Comprehensive%20Income%20Overview) The Group recorded a total comprehensive expense of RMB12,432 thousand, a shift from a total comprehensive income of RMB38,585 thousand, driven by period loss and exchange differences Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | (Loss)/Profit for the period | (9,055) | 35,427 | | Exchange differences arising from translation of financial statements | (3,377) | 3,158 | | Total comprehensive (expense)/income for the period attributable to equity holders of the Company | (12,432) | 38,585 | (Loss)/Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic (loss)/earnings per share | (0.61) | 2.4 | | Diluted (loss)/earnings per share | Not applicable | Not applicable | - Basic loss per share was **RMB0.61**, compared to basic profit per share of **RMB2.4** in the prior period[11](index=11&type=chunk)[35](index=35&type=chunk) [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the group's financial position, indicating a deterioration with a net current liability and a significant decrease in cash and cash equivalents [Financial Position Overview](index=7&type=section&id=Financial%20Position%20Overview) The Group's financial position deteriorated to a net current liability of RMB29,486 thousand, with a significant decrease in cash and cash equivalents Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 74,507 | 74,787 | -0.37% | | Current assets | 87,455 | 104,859 | -16.69% | | Current liabilities | 116,941 | 103,528 | +12.96% | | Net current (liabilities)/assets | (29,486) | 1,331 | -2315.00% | | Non-current liabilities | 193,489 | 212,154 | -8.79% | | Net liabilities | (148,468) | (136,036) | +9.14% | | Cash and cash equivalents | 3,562 | 15,972 | -77.70% | - The current ratio decreased from **1.01** as of December 31, 2024, to **0.75** as of June 30, 2025, indicating increased liquidity pressure[56](index=56&type=chunk) - Trade and bills receivables increased by **58.32%** from **RMB26,136 thousand** as of December 31, 2024, to **RMB41,380 thousand** as of June 30, 2025[12](index=12&type=chunk)[39](index=39&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section details changes in the group's equity, showing an increase in accumulated losses attributable to equity holders, primarily due to the loss for the period and a decrease in exchange reserves [Equity Changes Overview](index=9&type=section&id=Equity%20Changes%20Overview) The total deficit attributable to equity holders increased to RMB(148,468) thousand, primarily due to the period's loss and reduced exchange reserves Condensed Consolidated Statement of Changes in Equity Key Data (For the six months ended June 30) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Share capital | 1,216 | 1,216 | | Share premium | 691,882 | 691,882 | | Statutory reserve | 33,143 | 33,143 | | PRC reserve | 11,456 | 11,456 | | Exchange reserve | (26,527) | (23,150) | | Other reserve | (28,150) | (28,150) | | Accumulated losses | (831,488) | (822,433) | | Total deficit attributable to equity holders of the Company | (148,468) | (136,036) | - The loss for the period of **RMB9,055 thousand** led to a further expansion of accumulated losses[14](index=14&type=chunk) - Exchange differences arising from the translation of financial statements of overseas entities resulted in a negative **RMB3,377 thousand**, negatively impacting total comprehensive expense[14](index=14&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section outlines the group's cash flow performance, showing an improvement in net cash used in operating activities but an increase in cash outflow from financing activities, leading to a larger net decrease in cash and cash equivalents [Cash Flow Overview](index=10&type=section&id=Cash%20Flow%20Overview) Net cash used in operating activities improved, but increased financing outflows led to a larger net decrease in cash and cash equivalents, significantly reducing the period-end cash balance Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net cash used in operating activities | (7,382) | (14,548) | | Net cash used in investing activities | (528) | (20) | | Net cash (used in)/generated from financing activities | (4,500) | 2,691 | | Net decrease in cash and cash equivalents | (12,410) | (11,877) | | Cash and cash equivalents at end of period | 3,562 | 4,634 | - Net cash used in operating activities improved from **RMB(14,548) thousand** in the prior period to **RMB(7,382) thousand** in the current period[15](index=15&type=chunk) - Cash flow from financing activities shifted from an inflow in the prior period to an outflow in the current period, primarily due to the repayment of other borrowings[15](index=15&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the interim financial statements, covering accounting policies, new standards, segment reporting, and specific financial line items [1. Basis of Preparation of Financial Statements](index=11&type=section&id=1.%20Basis%20of%20Preparation%20of%20Financial%20Statements) The financial statements are prepared under Hong Kong Financial Reporting Standards and generally accepted accounting principles, complying with HKEX Listing Rules - The financial statements are prepared on a historical cost basis, presented in **RMB**, with all values rounded to the nearest thousand[16](index=16&type=chunk) [2. Application of New and Revised Hong Kong Financial Reporting Standards](index=12&type=section&id=2.%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group applied revised HKFRS effective on or after January 1, 2025, with no significant impact, and anticipates no material impact from future standards - HKAS 21 (Amendment) 'Lack of Exchangeability' became effective for the first time during this interim period but had no significant impact on the financial statements[18](index=18&type=chunk) - The Directors anticipate that the application of new and revised HKFRSs not yet effective, such as HKFRS 18 'Presentation and Disclosure in Financial Statements', will not have a material impact on the condensed consolidated financial statements in the foreseeable future[20](index=20&type=chunk) [3. Revenue and Segment Reporting](index=13&type=section&id=3.%20Revenue%20and%20Segment%20Reporting) The Group's primary businesses are pharmaceutical distribution and manufacturing in China, with total revenue stable, but distribution grew while manufacturing declined significantly - The Group's principal businesses are pharmaceutical distribution and manufacturing of pharmaceutical products in China[21](index=21&type=chunk) Revenue by Business Category (For the six months ended June 30) | Revenue Category | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Pharmaceutical distribution | 43,013 | 33,267 | +29.31% | | Pharmaceutical manufacturing | 5,680 | 15,563 | -63.51% | | **Total Revenue** | **48,693** | **48,830** | **-0.28%** | - Gross profit from pharmaceutical distribution decreased from **RMB3,684 thousand** in the prior period to **RMB3,532 thousand** in the current period, while gross profit from pharmaceutical manufacturing significantly decreased from **RMB5,843 thousand** to **RMB2,680 thousand**[26](index=26&type=chunk) [4. Other Income and Other Gains/(Losses) – Net](index=17&type=section&id=4.%20Other%20Income%20and%20Other%20Gains%2F(Losses)%20%E2%80%93%20Net) Other income slightly decreased, while other net losses significantly reduced, primarily due to increased reversal of impairment losses on trade receivables Other Income (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Bank interest income | 4 | 7 | | Deferred income – government grants | 256 | 256 | | Rental income from short-term leases | 432 | 444 | | Others | – | 27 | | **Total** | **692** | **734** | Other Losses – Net (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Impairment loss on trade receivables | (2,734) | (2,021) | | Impairment loss on other receivables | (1,430) | – | | Impairment loss on prepayments and deposits paid | (1,223) | (4,342) | | Reversal of impairment loss on trade receivables | 3,712 | – | | Reversal of impairment loss on other receivables | – | 53 | | Others | 52 | (52) | | **Total** | **(1,623)** | **(6,362)** | - Other net losses significantly decreased from **RMB(6,362) thousand** in the prior period to **RMB(1,623) thousand** in the current period, mainly due to a reversal of impairment losses on trade receivables of **RMB3,712 thousand**[30](index=30&type=chunk)[50](index=50&type=chunk) [5. Finance Costs](index=18&type=section&id=5.%20Finance%20Costs) Finance costs increased by **23.2%** to **RMB6,253 thousand**, mainly due to increased imputed interest on repayment obligations under the debt repayment arrangement scheme Finance Costs (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 619 | 2,115 | | Interest on corporate bonds payable | – | 519 | | Interest on repayment obligations under the debt repayment arrangement scheme | 5,634 | 2,441 | | **Total** | **6,253** | **5,075** | - Interest on repayment obligations under the debt repayment arrangement scheme significantly increased from **RMB2,441 thousand** in the prior period to **RMB5,634 thousand** in the current period[31](index=31&type=chunk)[53](index=53&type=chunk) [6. (Loss)/Profit Before Tax](index=19&type=section&id=6.%20(Loss)%2FProfit%20Before%20Tax) Loss before tax was RMB9,054 thousand, a shift from a profit of RMB35,491 thousand, primarily due to the impact of the debt restructuring gain (Loss)/Profit Before Tax Components (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of inventories sold | 42,481 | 39,303 | | Total staff costs | 3,143 | 3,420 | | Depreciation of property, plant and equipment | 782 | 1,271 | | Depreciation of right-of-use assets | 26 | 29 | | Auditor's remuneration | – | 111 | - Total staff costs slightly decreased from **RMB3,420 thousand** in the prior period to **RMB3,143 thousand** in the current period[32](index=32&type=chunk) - Depreciation of property, plant and equipment decreased from **RMB1,271 thousand** in the prior period to **RMB782 thousand** in the current period[32](index=32&type=chunk)[37](index=37&type=chunk) [7. Income Tax Expense](index=20&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense significantly reduced to RMB1 thousand, as the Group had no taxable profits in Cayman Islands, BVI, Hong Kong, or its PRC subsidiaries Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax – PRC Enterprise Income Tax | – | – | | Deferred tax | – | 64 | | **Total** | **(1)** | **(64)** | - The Group is not subject to income tax in the Cayman Islands, British Virgin Islands, and Hong Kong[33](index=33&type=chunk) - PRC subsidiaries are subject to PRC Enterprise Income Tax at a statutory rate of **25%**, but no provision was made for the current period due to the absence of taxable profits[33](index=33&type=chunk) [8. Dividends](index=21&type=section&id=8.%20Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of any interim dividend for the six months ended **June 30, 2025**[34](index=34&type=chunk) [9. (Loss)/Earnings Per Share](index=21&type=section&id=9.%20(Loss)%2FEarnings%20Per%20Share) Basic loss per share was RMB0.61, compared to basic profit per share of RMB2.4, with diluted (loss)/earnings per share not presented due to option exercise prices (Loss)/Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic (loss)/earnings per share | (0.61) | 2.4 | | Diluted (loss)/earnings per share | Not applicable | Not applicable | - Basic loss per share is calculated based on the loss attributable to equity holders of **RMB9,054 thousand** and the weighted average number of **1,474,993 thousand** ordinary shares in issue[35](index=35&type=chunk) - Diluted (loss)/earnings per share is not presented as the exercise price of share options was higher than the average market price of the shares[36](index=36&type=chunk) [10. Property, Plant and Equipment](index=21&type=section&id=10.%20Property,%20Plant%20and%20Equipment) Depreciation of property, plant and equipment decreased to RMB782 thousand for the six months ended June 30, 2025 Depreciation of Property, Plant and Equipment (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Depreciation | 782 | 1,271 | [11. Right-of-use Assets](index=21&type=section&id=11.%20Right-of-use%20Assets) The Group did not enter into any new lease agreements during this interim period - The Group did not enter into any new lease agreements during this interim period[38](index=38&type=chunk) [12. Trade and Other Receivables](index=22&type=section&id=12.%20Trade%20and%20Other%20Receivables) Total trade and other receivables increased to RMB45,747 thousand, with a significant rise in trade receivables aged 4 to 6 months Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade and bills receivables | 41,380 | 26,136 | | Bills receivable from banks | 3,041 | 1,633 | | Other receivables | 1,326 | 1,860 | | **Total** | **45,747** | **29,629** | Ageing Analysis of Trade and Bills Receivables (As of June 30) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 4,561 | 9,460 | | 1 to 3 months | 6,225 | 9,222 | | 4 to 6 months | 30,594 | 7,454 | | **Total** | **41,380** | **26,136** | - Trade receivables aged **4 to 6 months** significantly increased from **RMB7,454 thousand** as of December 31, 2024, to **RMB30,594 thousand** as of June 30, 2025, indicating a potential extension of the collection period[39](index=39&type=chunk) [13. Trade and Other Payables](index=23&type=section&id=13.%20Trade%20and%20Other%20Payables) Total trade and other payables were RMB82,502 thousand, with the majority of trade payables aged over 3 months Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 27,916 | 31,633 | | Contract liabilities | 14,126 | 14,522 | | Accrued interest on other borrowings | 3,156 | 3,455 | | Other accrued expenses | 2,417 | 3,414 | | Staff-related costs payable | 9,908 | 9,827 | | Other payables | 24,979 | 20,189 | | **Total** | **82,502** | **83,040** | Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 1,121 | 3,373 | | 1 to 3 months | 1,624 | 1,853 | | Over 3 months | 25,171 | 26,407 | | **Total** | **27,916** | **31,633** | - Trade payables aged **over 3 months** constitute the vast majority of total trade payables, indicating a longer payment cycle to suppliers[41](index=41&type=chunk) [14. Repayment Arrangement Scheme Liabilities](index=24&type=section&id=14.%20Repayment%20Arrangement%20Scheme%20Liabilities) The Group initiated a debt repayment arrangement scheme on March 12, 2024, involving initial and annual cash payments to scheme creditors and potential new share issuance - The debt repayment arrangement scheme became effective on **March 12, 2024**, fully discharging and releasing all unsecured and non-priority claims[43](index=43&type=chunk) - Scheme creditors are entitled to an initial cash payment equivalent to **1%** of their admitted claims, and annual cash payments from **2024 to 2028** (**HK$5 million** for 2024, and **HK$10 million** annually from 2025-2028, or a relevant proportion of the audited consolidated net profit for the respective financial year, whichever is higher)[43](index=43&type=chunk) - During the six months ended June 30, 2025, the initial cash payment and the 2024 annual payment were made to the scheme creditors[44](index=44&type=chunk) [15. Share Capital](index=25&type=section&id=15.%20Share%20Capital) The company's authorized and issued and fully paid share capital remained unchanged as of June 30, 2025 Share Capital Information (As of June 30) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of authorized shares (thousand shares) | 5,000,000 | 5,000,000 | | Authorized share capital (HK$'000) | 5,000 | 5,000 | | Number of issued and fully paid shares (thousand shares) | 1,474,993 | 1,474,993 | | Nominal value of issued and fully paid share capital (HK$'000) | 1,475 | 1,475 | | Carrying value of issued and fully paid share capital (RMB '000) | 1,216 | 1,216 | [16. Contingent Liabilities](index=25&type=section&id=16.%20Contingent%20Liabilities) The Group faces a legal claim of RMB4,656 thousand for a construction design contract, with management deeming the plaintiff's success probability as remote - The Group's subsidiary, Chengdu Yiming Investment Management Co., Ltd., faces a legal claim of approximately **RMB4,656 thousand** for a construction design contract balance[46](index=46&type=chunk) - Based on independent legal advice, the Group's management considers the probability of the plaintiff succeeding to be remote[46](index=46&type=chunk) [Management Discussion and Analysis](index=26&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the group's business, financial performance, liquidity, and future outlook [Business Review](index=26&type=section&id=Business%20Review) The Group continues to focus on pharmaceutical distribution and manufacturing businesses in China - The Group remains committed to its pharmaceutical distribution and manufacturing businesses in China[47](index=47&type=chunk) [Revenue](index=26&type=section&id=Revenue) Total revenue for the six months ended June 30, 2025, was RMB48.7 million, a slight decrease of approximately **0.28%** Total Revenue (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 48.7 | 48.8 | -0.28% | [Cost of Sales, Gross Profit and Gross Margin](index=26&type=section&id=Cost%20of%20Sales,%20Gross%20Profit%20and%20Gross%20Margin) Cost of sales increased by **8.09%** to **RMB42.5 million**, leading to a **34.8%** decrease in gross profit and a drop in gross margin to **12.8%** Cost of Sales, Gross Profit and Gross Margin (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 42.5 | 39.3 | +8.09% | | Gross profit | 6.2 | 9.5 | -34.80% | | Gross margin | 12.8% | 19.5% | -6.7 percentage points | - The increase in cost of sales was primarily due to rising costs of raw materials and labor[49](index=49&type=chunk) - The decrease in gross margin was mainly attributable to rising costs and intense competition in the pharmaceutical distribution industry[49](index=49&type=chunk) [Other Income and Other Losses – Net](index=26&type=section&id=Other%20Income%20and%20Other%20Losses%20%E2%80%93%20Net) Other net losses significantly reduced to RMB1.6 million, primarily due to changes in impairment losses Other Losses – Net (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Other losses – net | 1.6 | 6.4 | -75.00% | - Other net losses primarily comprise impairment losses on trade and other receivables, and prepayments and deposits paid[50](index=50&type=chunk) [Selling and Distribution Expenses](index=27&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by **30.3%** to **RMB2.4 million**, due to strict cost control and reduced sales activities Selling and Distribution Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 2.4 | 3.4 | -30.30% | - The decrease in expenses was attributable to the Group's stringent cost control policies and reduced sales activities and promotions during the review period[51](index=51&type=chunk) [General and Administrative Expenses](index=27&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by **21.6%** to **RMB5.7 million**, as prior period legal and professional fees for resuming trading and debt restructuring did not recur General and Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | General and administrative expenses | 5.7 | 7.3 | -21.92% | - The decrease in expenses was mainly due to the absence of legal and professional fees incurred in the prior period of 2024 for handling the application for resumption of trading and debt restructuring[52](index=52&type=chunk) [Finance Costs](index=27&type=section&id=Finance%20Costs) Finance costs increased by **23.2%** to **RMB6.3 million**, primarily due to increased imputed interest on repayment obligations under the debt repayment arrangement scheme Finance Costs (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 6.3 | 5.1 | +23.53% | - The increase in finance costs was mainly due to imputed interest on repayment obligations under the debt repayment arrangement scheme for the six months ended **June 30, 2025**[53](index=53&type=chunk) [(Loss)/Profit for the Period](index=27&type=section&id=(Loss)%2FProfit%20for%20the%20Period) The Group shifted from a profit of RMB35.5 million to a loss of RMB9.1 million, primarily due to the absence of a one-off debt restructuring gain (Loss)/Profit for the Period (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | (Loss)/Profit for the period | (9.1) | 35.5 | -125.63% | - The Group turned from profit to loss for the period mainly due to a one-off gain of **RMB47.4 million** from debt restructuring in the prior period of 2024, with no such gain in 2025[54](index=54&type=chunk) [Future Prospects](index=27&type=section&id=Future%20Prospects) The company anticipates a market demand rebound and increased competition, focusing on enhancing production and distribution capabilities to seize opportunities - Market demand is expected to rebound, but market competitors will also increase[55](index=55&type=chunk) - Management will focus on enhancing production and distribution capabilities to capitalize on business opportunities arising from market recovery[55](index=55&type=chunk) [Liquidity, Financial and Capital Resources](index=28&type=section&id=Liquidity,%20Financial%20and%20Capital%20Resources) Cash and cash equivalents significantly decreased, net current liabilities increased, and the current ratio declined, indicating heightened liquidity pressure, with changes in bank and other borrowings Liquidity and Borrowing Status (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 3.6 | 16.0 | -77.50% | | Net current liabilities | 29.5 | (1.3) | -2369.23% | | Current ratio | 0.75 | 1.01 | -25.74% | | Total bank borrowings | 16.4 | 11.4 | +43.86% | | Total other borrowings | 23.6 | 32.6 | -27.59% | - On **May 25, 2025**, **100,000,000** share options lapsed and expired, with no outstanding share options as of **June 30, 2025**[57](index=57&type=chunk) - The Group regularly and actively reviews and manages its capital structure to strengthen its financial position, with no changes in capital management approach[57](index=57&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) The Group had no other significant contingent liabilities apart from the legal proceedings disclosed in Note 16 to the financial statements - The Group had no other significant contingent liabilities apart from those disclosed in Note 16 to the condensed consolidated interim financial statements[58](index=58&type=chunk) [Exchange Rate Risk](index=28&type=section&id=Exchange%20Rate%20Risk) The Group does not face any significant foreign exchange risk as most assets, transactions, and operations are denominated in RMB - The majority of the Group's assets and transactions are denominated in **RMB**, and it does not face any significant foreign exchange risk[59](index=59&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section covers other relevant information, including significant investments, human resources, dividends, corporate governance, and share-related matters [Significant Investments, Acquisitions and Disposals](index=29&type=section&id=Significant%20Investments,%20Acquisitions%20and%20Disposals) The Group did not undertake any discloseable significant investments, acquisitions, or disposals during the six months ended June 30, 2025 - The Group did not undertake any discloseable significant investments, acquisitions, or disposals during the reporting period[60](index=60&type=chunk) [Human Resources](index=29&type=section&id=Human%20Resources) The Group's headcount increased to 106, with slightly decreased total staff costs, focusing on attracting, developing, and retaining talent Human Resources Overview (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total headcount | 106 | 97 | | Total staff costs (RMB million) | 3.1 | 3.4 | - The Group considers human resources as its valuable asset and is committed to attracting, developing, and retaining outstanding employees[61](index=61&type=chunk) [Dividends](index=30&type=section&id=Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended **June 30, 2025**[62](index=62&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) The company maintains high corporate governance standards, complying with the Listing Rules' Corporate Governance Code, except for the non-renewal of directors' and officers' liability insurance - The Company has adopted the Corporate Governance Code as set out in Appendix C1 Part 2 of the Listing Rules[63](index=63&type=chunk) - Following the expiry of the previous directors' and officers' liability insurance on **December 6, 2024**, the Company has not made any new insurance arrangements for potential legal actions against its directors[63](index=63&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, reviewed the Group's accounting principles, internal controls, and financial reporting matters - The Audit Committee comprises Ms. Li Yan (Chairperson), Professor Lou Zhenye, and Mr. Wang Dongyuan[65](index=65&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed internal control and financial reporting matters[65](index=65&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=31&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The company adopted the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period - All Directors have confirmed their compliance with the relevant provisions of the Model Code for the six months ended **June 30, 2025**[66](index=66&type=chunk) [Share Option Scheme](index=31&type=section&id=Share%20Option%20Scheme) The 2015 share option scheme expired on May 25, 2025, with all 100,000,000 granted options lapsing and no new options granted, exercised, or cancelled - The share option scheme expired on **May 25, 2025**[67](index=67&type=chunk) - For the six months ended June 30, 2025, all **100,000,000** share options lapsed, and no share options were granted, exercised, or cancelled during the period[68](index=68&type=chunk)[72](index=72&type=chunk) - The Company will consider adopting a new share option scheme in due course in compliance with the latest requirements under Chapter 17 of the Listing Rules[74](index=74&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=34&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of June 30, 2025, no directors or chief executives held discloseable interests or short positions in the company's or its associated corporations' shares, underlying shares, or debentures - As of **June 30, 2025**, no Directors or chief executives of the Company had any discloseable interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations[76](index=76&type=chunk) [Directors' Right to Acquire Shares or Debentures](index=34&type=section&id=Directors'%20Right%20to%20Acquire%20Shares%20or%20Debentures) No rights were granted to any director or their associates to acquire benefits by purchasing company shares or debentures, nor were any such rights exercised - During the reporting period, no rights were granted to any Director or their associates to acquire benefits by means of purchasing shares or debentures of the Company, nor were any such rights exercised[77](index=77&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company](index=35&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Joyful Treasure Limited and Mr. Chen Yanfei were substantial shareholders, holding **51.97%** of shares, with other significant interests held by Win Win Stable No. 3 Fund SP and related parties Substantial Shareholders' Long Positions in Shares (As of June 30) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Joyful Treasure Limited | Beneficial owner | 753,040,000 | 51.05% | | Mr. Chen Yanfei | Interest of controlled corporation | 753,040,000 | 51.05% | | Mr. Chen Yanfei | Beneficial owner | 13,560,000 | 0.92% | | **Mr. Chen Yanfei Total** | | **766,600,000** | **51.97%** | Other Persons' Long Positions in Shares (As of June 30) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Win Win Stable No. 3 Fund SP | Person with a security interest in shares | 753,040,000 | 51.05% | | Zhongtai Innovation Capital Management Limited | Investment manager | 753,040,000 | 51.05% | | Ma Demin | Agent | 753,040,000 | 51.05% | | Lai Wing Lun | Agent | 753,040,000 | 51.05% | - **753,040,000** shares (approximately **51.05%** of the issued share capital) held by Joyful Treasure Limited are pledged, with Mr. Ma Demin and Mr. Lai Wing Lun of RSM Corporate Advisory (Hong Kong) Limited appointed as joint and several receivers and managers[81](index=81&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=37&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[82](index=82&type=chunk) [Changes in Directors' Information](index=37&type=section&id=Changes%20in%20Directors'%20Information) Independent Non-Executive Director Mr. Xu Qilin retired, while Mr. Wang Dongyuan and Professor Lou Zhenye were appointed to new committee roles, with Mr. Wang also resigning from another directorship - Independent Non-Executive Director Mr. Xu Qilin retired on **June 26, 2025**[83](index=83&type=chunk) - Independent Non-Executive Director Mr. Wang Dongyuan was appointed as Chairman of the Nomination Committee and a member of the Audit and Remuneration Committees[83](index=83&type=chunk) - Independent Non-Executive Director Professor Lou Zhenye was appointed as a member of the Nomination and Corporate Governance Committees[83](index=83&type=chunk) [Company's Registered Office](index=37&type=section&id=Company's%20Registered%20Office) The company's registered office service provider in the Cayman Islands terminated services on July 22, 2025, and the Board is seeking a new provider - The Company's registered office service provider in the Cayman Islands terminated its services on **July 22, 2025**[84](index=84&type=chunk) - The Board is currently seeking another service provider to provide registered office services as soon as possible[84](index=84&type=chunk) [Events After the Reporting Period](index=37&type=section&id=Events%20After%20the%20Reporting%20Period) The Board is not aware of any significant events occurring after June 30, 2025, up to the date of this interim report - The Board is not aware of any significant events occurring after **June 30, 2025**, up to the date of this interim report[85](index=85&type=chunk)

Financial Performance - For the first half of 2025, the company reported revenue of RMB 2,962.7 million, an increase of approximately RMB 378.9 million or 14.7% compared to RMB 2,583.8 million in the same period of 2024[8] - The company's profit attributable to owners was approximately RMB 73.9 million, up by about RMB 45.6 million or 161.2% from RMB 28.3 million in the same period of 2024[8] - The gross profit for the first half of 2025 was RMB 679.1 million, reflecting a 10.4% increase from RMB 615.1 million in the previous year[7] - The company's basic earnings per share for the first half of 2025 were RMB 0.02, representing an increase of 148.9% compared to RMB 0.01 in the same period of 2024[7] - The company's profit for the first half of 2025 is estimated to reach RMB 150-160 million, a significant turnaround from a loss of RMB 11 million in the same period last year[17] - Profit before tax for the first half of 2025 was approximately RMB 90.0 million, an increase of RMB 59.1 million or approximately 191.5% compared to RMB 30.9 million in the same period of 2024[26] - Net profit attributable to the owners of the company for the first half of 2025 was approximately RMB 73.9 million, an increase of RMB 45.6 million or 161.2% from RMB 28.3 million in the same period of 2024, with a net profit margin of 2.5%, up 1.4 percentage points from 1.1 in the same period of 2024[28] Revenue Breakdown - Revenue from cement sales was approximately RMB 2,235.6 million, up 19.5% from RMB 1,870.2 million in the same period of 2024[18] - The company's sales revenue in the Northeast region increased by 40.9% to RMB 636.9 million compared to RMB 451.9 million in the same period of 2024[19] - Revenue from the Central China segment was RMB 2,325,756,000, representing a year-over-year increase of 9.1%[91] - The Northeast China segment reported revenue of RMB 636,902,000, a significant increase of 40.9% compared to RMB 451,922,000 in 2024[91] Cost and Expenses - The sales cost for the first half of 2025 was approximately RMB 2,283.6 million, an increase of RMB 314.9 million or 16.0% compared to the previous year[20] - Other income for the first half of 2025 was approximately RMB 238.2 million, a decrease of RMB 59.6 million or 20.0% compared to RMB 297.8 million in the same period of 2024, primarily due to a reduction in government subsidies and material sales revenue[22] - Sales and distribution expenses for the first half of 2025 were approximately RMB 58.5 million, down RMB 57.4 million or 49.5% from RMB 115.9 million in the same period of 2024, mainly due to reduced transportation costs[23] - Administrative expenses for the first half of 2025 were approximately RMB 344.5 million, a decrease of RMB 16.8 million or 4.7% from RMB 361.3 million in the same period of 2024, primarily due to reduced R&D expenses and cost-saving measures[24] Assets and Liabilities - Total assets as of June 30, 2025, were RMB 36,351.4 million, a decrease of 2.3% from RMB 37,215.1 million at the end of 2024[7] - Total liabilities decreased by 4.6% to RMB 20,268.4 million from RMB 21,239.6 million at the end of 2024[7] - As of June 30, 2025, the company's debt-to-asset ratio was 55.8%, a decrease of 1.3 percentage points from 57.1% as of December 31, 2024, due to a reduction in borrowings[36] - As of June 30, 2025, cash and cash equivalents decreased to RMB 467.7 million from RMB 915.1 million as of December 31, 2024, primarily due to cash outflows from investing and financing activities[32] - Trade and other receivables as of June 30, 2025, were RMB 20,523.1 million, remaining stable compared to RMB 20,764.4 million as of December 31, 2024[29] Market Conditions - The cement market demand continued to decline over the past three years, but the rate of decline has slowed down in the first half of 2025[8] - The government has set a GDP growth target of around 5% for 2025, which may influence the company's future performance[9] - The company is focusing on high-quality development and expanding its market presence amid ongoing challenges in the real estate sector[9] - The cement industry is expected to face a downward demand trend, with supply-side policies crucial for price recovery and profitability[56] - The cement industry's capacity utilization rate is projected to improve from 53% to around 70% due to effective supply-side measures[56] Strategic Initiatives - The company is actively implementing various efficiency enhancement measures to counteract the pressures from the market environment[8] - The company is implementing energy-saving and low-emission measures in line with national policies to enhance operational efficiency[57] - The company aims to strengthen its market competitiveness through refined management and the promotion of green energy projects[57] - The company plans to continue expanding its market presence and enhancing its product offerings in the cement and aggregate sectors[85] Governance and Compliance - The company has maintained compliance with corporate governance codes and is actively seeking a new CEO since December 2015[72] - The company did not declare an interim dividend for the reporting period[76] - The company has re-complied with listing rules after appointing Mr. Jiang Senlin as an independent non-executive director[73] Related Party Transactions - The group reported significant transactions with related parties, including purchases from Pingdingshan Ruiping Shilong Cement Co., Ltd. amounting to RMB 30,557,000 in the first half of 2025, compared to RMB 6,348,000 in the same period of 2024[114] - Interest income from Xin'an Zhonglian Wanjian Cement Co., Ltd. was RMB 1,672,000 for the first half of 2025, with total related party transactions reaching RMB 32,229,000 compared to RMB 6,348,000 in the previous year[114] - The group provided approved financial guarantees to related parties amounting to approximately RMB 1,540,000,000 as of June 30, 2025, an increase from RMB 1,200,000,000 as of December 31, 2024[115]

[Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) Key financial highlights for fiscal year 2025, showing significant revenue growth and a turnaround from loss to profit for the company and its owners 2025 Fiscal Year Key Financial Summary | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | Increase 39.0% | - | Growth | | Operating Profit/(Loss) | 17,592 | (33,236) | Turnaround (Decrease 152.9%) | | Net Profit/(Loss) Attributable to Owners of the Company | 17,445 | (32,735) | Turnaround (Decrease 153.3%) | | Basic and Diluted Earnings Per Share | 1.68 cents | (3.16) cents | Turnaround | [Financial Statements](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the company's consolidated financial statements, including the income statement, statement of comprehensive income, and statement of financial position [Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the year ended June 30, 2025, the company achieved significant revenue growth, substantial gross profit increase, turned operating loss into profit, and realized annual profit attributable to owners Consolidated Statement of Profit or Loss Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 193,546 | 139,203 | +39.0% | | Cost of sales and services | (128,077) | (104,177) | +22.9% | | Gross Profit | 65,469 | 35,026 | +86.9% | | Operating Profit/(Loss) | 17,592 | (33,236) | Turnaround | | Profit/(Loss) for the year attributable to owners of the Company | 17,445 | (32,735) | Turnaround | | Basic Earnings/(Loss) Per Share | 1.68 cents | (3.16) cents | Turnaround | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%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 the year ended June 30, 2025, the company achieved annual profit, with total comprehensive income influenced by exchange differences, resulting in a positive overall comprehensive income Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the year | 17,445 | (32,735) | | Exchange differences on translation | (16,908) | 5,089 | | Fair value changes of financial assets at fair value through other comprehensive income | 253 | 2,742 | | Exchange differences arising on translation of overseas operations | 16,718 | (5,000) | | Total comprehensive income/(expense) for the year attributable to owners of the Company | 17,508 | (29,904) | [Consolidated Statement of Financial Position](index=4&type=section&id=%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 company maintained a stable asset structure, with a slight decrease in non-current assets, an increase in both current assets and liabilities, and growth in net current assets and total equity Consolidated Statement of Financial Position Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current assets | 250,436 | 273,970 | | Current assets | 1,553,680 | 1,506,548 | | Current liabilities | 77,732 | 71,514 | | Net current assets | 1,475,948 | 1,435,034 | | Total assets less current liabilities | 1,726,384 | 1,709,004 | | Net assets | 1,708,309 | 1,690,688 | | Share capital | 91,360 | 91,360 | | Reserves | 1,616,949 | 1,599,328 | | Total equity | 1,708,309 | 1,690,688 | [Notes to the Consolidated Financial Statements](index=6&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes explaining the accounting policies, significant judgments, and estimates used in preparing the consolidated financial statements [General Information](index=6&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The company is a Cayman Islands-registered investment holding company primarily engaged in manufacturing and selling high-precision industrial automation instruments and technical products in China, providing entrusted processing services, and manufacturing and selling multi-functional all-plastic quartz watch movements, with financial statements presented in RMB - The company's principal activities include manufacturing and selling high-precision industrial automation instruments and technical products, providing entrusted processing services, and manufacturing and selling multi-functional all-plastic quartz watch movements[8](index=8&type=chunk) - The Group's consolidated financial statements are presented in RMB, as its principal subsidiaries operate in China[8](index=8&type=chunk) [Application of Amendments to Hong Kong Financial Reporting Standards](index=6&type=section&id=2%20%E6%87%89%E7%94%A8%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E4%BF%AE%E8%A8%82%E6%9C%AC) The Group has adopted several HKFRS amendments effective this year, and new standards issued but not yet effective are disclosed, with HKFRS 18 expected to significantly impact future financial statement presentation and disclosure - The Group has initially applied several amendments to Hong Kong Financial Reporting Standards that are mandatorily effective for the annual period beginning on July 1, 2024, with no significant impact on the financial position and performance for the current year[10](index=10&type=chunk)[11](index=11&type=chunk) - HKFRS 18 "Presentation and Disclosure in Financial Statements" will be effective for annual periods beginning on or after January 1, 2027, and is expected to impact the presentation of the consolidated statement of profit or loss, consolidated statement of profit or loss and other comprehensive income, and disclosures in future consolidated financial statements[13](index=13&type=chunk)[14](index=14&type=chunk) [Revenue](index=8&type=section&id=3%20%E6%94%B6%E5%85%A5) For the year ended June 30, 2025, the Group's revenue primarily derived from the sale of automation instruments and technical products, and related entrusted processing services, showing significant year-on-year growth, predominantly from China Revenue Classification | Type of Goods and Services | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of automation instruments and technical products | 181,427 | 135,689 | | Entrusted processing services related to automation instruments and technical products | 12,119 | 3,392 | | Sales of watch instruments | — | 122 | | **Total Revenue** | **193,546** | **139,203** | - All revenue from customer contracts is recognized at a point in time and primarily generated in China[15](index=15&type=chunk) [Segment Reporting](index=8&type=section&id=4%20%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group primarily operates in two segments: automation instruments and technical products, and watch instruments. In 2025, the automation instruments and technical products segment saw significant growth in both revenue and profit, while the watch instruments segment, despite no sales, achieved a profit. The Group's revenue is mainly from China Reportable Segment Revenue and Profit/(Loss) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Profit/(Loss) (RMB thousands) | 2024 Profit/(Loss) (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Automation instruments and technical products | 193,546 | 139,081 | 18,189 | (14,009) | | Watch instruments | — | 122 | 3,798 | (6,023) | | **Total** | **193,546** | **139,203** | **21,987** | **(20,032)** | - The Group's revenue from external customers primarily originated from China (excluding Hong Kong), **RMB 193,467 thousand** in 2025 and **RMB 138,776 thousand** in 2024[20](index=20&type=chunk) [Finance Costs](index=10&type=section&id=5%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) The Group's finance costs primarily consist of interest on lease liabilities, which decreased this year compared to last year Finance Costs | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on lease liabilities | 20 | 32 | [Profit/(Loss) Before Tax](index=11&type=section&id=6%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Profit before tax was primarily influenced by depreciation, R&D expenses, auditor's remuneration, cost of sales, investment property rental income, and a reversal of impairment loss on trade and other receivables, with trade receivables impairment shifting from a loss to a reversal this year Major Items Affecting Profit/(Loss) Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 23,560 | 22,701 | | Research and development expenses | 6,293 | 7,878 | | Auditor's remuneration | 2,038 | 2,030 | | Cost of sales and services | 128,077 | 104,177 | | Total rental income from investment properties | (411) | (3) | | Reversal of impairment loss on trade and other receivables / (Impairment loss) net | (4,223) | 289 | [Income Tax Expense/(Credit)](index=12&type=section&id=7%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF%EF%BC%8F%EF%BC%88%E6%8A%B5%E5%85%8D%EF%BC%89) The Group's income tax expense this year primarily comprised deferred tax, with no assessable profit in Hong Kong and tax exemption in the Cayman Islands. Fujian Shangrun, a Chinese subsidiary, enjoys a 15% preferential tax rate as a high-tech enterprise but made no provision for Chinese tax this year due to tax loss absorption Income Tax Expense/(Credit) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax — China | — | — | | Deferred tax | 127 | (533) | | **Total** | **127** | **(533)** | - There was no assessable profit in Hong Kong, and the Cayman Islands are exempt from income tax[24](index=24&type=chunk)[25](index=25&type=chunk) - Fujian Shangrun, a Chinese subsidiary, enjoys a **15% preferential income tax rate** as a high-tech enterprise but made no provision for Chinese tax this year due to tax loss absorption[25](index=25&type=chunk) [Dividends](index=13&type=section&id=8%20%E8%82%A1%E6%81%AF) For the years ended June 30, 2025 and 2024, the company neither paid nor proposed any dividends to ordinary shareholders - During and after the reporting period, the company neither paid nor proposed any dividends[26](index=26&type=chunk) [Earnings/(Loss) Per Share](index=13&type=section&id=9%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) For the year ended June 30, 2025, the company achieved basic and diluted earnings per share of RMB 1.68 cents, a significant improvement from a loss of RMB 3.16 cents per share in the prior year Earnings/(Loss) Per Share | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 1.68 | (3.16) | | Diluted earnings/(loss) per share | 1.68 | (3.16) | - For the year ended June 30, 2025, the exercise of share options was not assumed in the calculation of diluted earnings per share as they were out-of-the-money and had an anti-dilutive effect[28](index=28&type=chunk) [Trade and Other Receivables](index=14&type=section&id=10%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables increased, with trade receivables net of impairment allowance amounting to RMB 77,695 thousand, and a typical credit period of 120 to 180 days Aging Analysis of Trade and Other Receivables | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 60 days | 31,130 | 28,619 | | 61 to 120 days | 24,755 | 23,689 | | 121 to 180 days | 21,810 | 17,178 | | **Total** | **77,695** | **69,486** | - The Group generally grants credit periods of **120 to 180 days** to customers, without charging interest or requiring collateral[29](index=29&type=chunk) [Trade and Other Payables](index=14&type=section&id=11%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables increased, with trade payables amounting to RMB 19,452 thousand Aging Analysis of Trade and Other Payables | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 9,299 | 7,785 | | 31 to 90 days | 9,273 | 6,241 | | 91 to 180 days | 220 | 110 | | Over 180 days | 660 | 599 | | **Total** | **19,452** | **14,735** | [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an overview of the Group's performance, financial position, and future outlook, including market review, segment information, and financial resources [Market and Business Review](index=15&type=section&id=%E5%B8%82%E5%A0%B4%E8%88%87%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Despite macroeconomic adjustments and intensified market competition, the Group successfully turned losses into profit, recording a profit attributable to owners of RMB 17,445 thousand, by focusing on high-precision industrial automation instruments and technical products and promoting domestic substitution - The Group's principal business is the research, development, production, and sale of automation instruments and meters, facing adjustment pressures due to macroeconomic conditions and market competition[31](index=31&type=chunk) - The Group maintained stable development by leveraging its product line advantages and vigorously promoting domestic substitution of its main products in downstream sectors[31](index=31&type=chunk) - Profit attributable to owners of the company for the current year was approximately **RMB 17,445 thousand**, compared to a loss of **RMB 32,735 thousand** in the prior year, primarily due to increased sales of automation instruments and technical products and entrusted processing services[31](index=31&type=chunk) [Segment Information](index=15&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's main business segments are automation instruments and technical products and watch instruments. The automation instruments and technical products segment saw significant growth in both revenue and profit, while the watch instruments segment, despite no sales, achieved profit through impairment allowance reversal - The Group has two business segments: automation instruments and technical products, and watch instruments[32](index=32&type=chunk) [Automation Instruments and Technical Products](index=15&type=section&id=%E8%87%AA%E5%8B%95%E5%8C%96%E5%84%80%E9%8C%B6%E5%8F%8A%E6%8A%80%E8%A1%93%E7%94%A2%E5%93%81) This year, the automation instruments and technical products segment generated revenue of RMB 193,546 thousand, accounting for 100% of the Group's total revenue, and successfully turned last year's loss into a reportable segment profit of RMB 18,189 thousand, primarily due to increased sales and entrusted processing services Automation Instruments and Technical Products Segment Performance | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 193,546 | 139,081 | | Percentage of Group's total revenue | 100.0% | 99.9% | | Reportable segment profit/(loss) | 18,189 | (14,009) | - Segment profit was primarily attributable to increased sales of automation instruments, technical products, and watch instruments, as well as entrusted processing services related to automation instruments and technical products[32](index=32&type=chunk) [Watch Instruments](index=16&type=section&id=%E9%90%98%E9%8C%B6%E5%84%80%E9%8C%B6) This year, the watch instruments segment had no sales revenue but achieved a reportable segment profit of RMB 3,798 thousand, reversing last year's loss, by recognizing a reversal of impairment allowance for trade receivables of approximately RMB 3,795 thousand Watch Instruments Segment Performance | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales revenue | — | 122 | | Percentage of Group's total revenue | 0.0% | 0.1% | | Reportable segment profit/(loss) | 3,798 | (6,023) | - Segment profit was primarily due to the recognition of a reversal of impairment allowance for trade receivables of approximately **RMB 3,795 thousand**[33](index=33&type=chunk) [Production Facilities](index=16&type=section&id=%E7%94%A2%E7%94%9F%E8%A8%AD%E6%96%BD) The Group owns large production facilities in Fuzhou, China, with a total site area of approximately 47,665 square meters. There were no significant expansion plans this year, and future development will remain prudent - The Group owns large production facilities in Mawei Science and Technology Park and Fuzhou Economic and Technological Development Zone, Fuzhou, China, with a total site area of approximately **47,665 square meters**[34](index=34&type=chunk) - There were no significant expansion plans for the current year, and the Board will prudently proceed with future development plans[34](index=34&type=chunk) [Business Outlook](index=16&type=section&id=%E6%A5%AD%E5%8B%99%E5%89%8D%E7%9E%BB) The industrial automatic control system device manufacturing industry is positively correlated with the macroeconomy. Despite some industry demand shortfalls, sectors like non-ferrous metals, power, and nuclear energy show strong demand, indicating sustained long-term growth for the instrument industry. As a leading enterprise, the Group is poised to benefit from national industrial foundation re-engineering and major technical equipment tackling projects, driving sustainable growth - The industrial automatic control system device manufacturing industry is affected by macroeconomic conditions and fluctuations in downstream cyclical industries, but demand is strong in non-ferrous metals, power, nuclear energy, and equipment manufacturing industries[35](index=35&type=chunk) - The Group expects to benefit from the national initiatives to deepen industrial foundation re-engineering and major technical equipment tackling projects, leading to increasing demand for domestically produced mid-to-high-end instruments in downstream industries and driving sustainable growth[35](index=35&type=chunk) [Revenue](index=17&type=section&id=%E6%94%B6%E5%85%A5) This year, the Group's revenue was approximately RMB 193,546 thousand, a 39.0% increase from last year, primarily driven by increased sales of automation instruments and technical products and entrusted processing services, despite challenges from stagnant economic growth Group Revenue | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | 193,546 | 139,203 | 39.0% | - Revenue growth was primarily due to increased sales of automation instruments and technical products and entrusted processing services[36](index=36&type=chunk) [Gross Profit and Operating Profit/(Loss)](index=17&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E7%B6%93%E7%87%9F%E6%BA%A2%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) This year, the Group's gross profit and operating profit both increased significantly, with gross profit reaching RMB 65,469 thousand and operating profit turning around to RMB 17,592 thousand, mainly due to increased sales and a reversal of impairment loss on trade receivables Gross Profit and Operating Profit/(Loss) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Gross Profit | 65,469 | 35,026 | | Operating Profit/(Loss) | 17,592 | (33,236) | - The increase in gross profit was primarily due to increased sales of industrial automation instrument products and related entrusted processing services[37](index=37&type=chunk) - Operating profit includes a reversal of impairment loss on trade receivables of approximately **RMB 4,359 thousand** (2024: impairment loss of approximately **RMB 289 thousand**) recognized under the expected credit loss model[37](index=37&type=chunk) [Profit/(Loss) Attributable to Owners of the Company](index=17&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%BA%A2%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) This year, profit attributable to owners of the company was RMB 17,445 thousand, successfully reversing last year's loss of RMB 32,735 thousand, primarily influenced by factors such as the aforementioned revenue and gross profit growth Profit/(Loss) Attributable to Owners of the Company | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) attributable to owners of the Company | 17,445 | (32,735) | [Earnings/(Loss) Per Share](index=17&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) This year, basic and diluted earnings per share were both RMB 1.68 cents, representing a significant improvement from a loss of RMB 3.16 cents per share in the prior year Earnings/(Loss) Per Share | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and diluted earnings/(loss) per share | 1.68 | (3.16) | [Capital Structure, Liquidity and Financial Resources](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B%E3%80%81%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains a healthy liquidity position, primarily using internal resources for working capital needs. As of June 30, 2025, cash and cash equivalents, net current assets, and total assets less current liabilities all increased, with the Board prudently managing cash to address market uncertainties - The Group maintains a healthy liquidity position, primarily utilizing internal resources to meet working capital requirements[41](index=41&type=chunk)[42](index=42&type=chunk) Liquidity Position | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 1,456,416 | 1,417,002 | | Net current assets | 1,475,948 | 1,435,034 | | Total assets less current liabilities | 1,726,384 | 1,709,004 | - The Group holds most of its cash in banks to support the development of its principal operating subsidiary, Fujian Shangrun, and prudently monitors market conditions to determine capital deployment[42](index=42&type=chunk) [Borrowings](index=18&type=section&id=%E5%80%9F%E8%B2%B8) As of June 30, 2025, the Group had no bank borrowings - As of **June 30, 2025**, the Group had no bank borrowings[43](index=43&type=chunk) [Equity](index=18&type=section&id=%E6%AC%8A%E7%9B%8A) As of June 30, 2025, total equity attributable to owners of the company increased by approximately RMB 17,621 thousand to RMB 1,708,309 thousand Total Equity Attributable to Owners of the Company | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Increase | | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the Company | 1,708,309 | 1,690,688 | 17,621 | [Gearing Ratio](index=18&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's gearing ratio was approximately 0.06, a slight increase from last year but still at a low level Gearing Ratio | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Gearing Ratio | 0.06 | 0.05 | [Use of Proceeds from Listing](index=19&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) As of June 30, 2025, most of the net proceeds from the company's listing have been utilized as planned, primarily for constructing production facilities, R&D, network development, and general working capital. RMB 24 million (HKD) for R&D is expected to be utilized by the end of 2030 Use of Net Proceeds from Listing | Purpose | Latest Proposed Net Proceeds (HKD millions) | Unutilized Net Proceeds as of June 30, 2025 (HKD millions) | Expected Timeline for Utilization of Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | | Construction of production facilities for new products | 652 | — | Not applicable | | Research and development work | 238 | 24 | By end of 2030 | | Network development and sales support services | 45 | — | Not applicable | | Development of information systems | 4 | — | Not applicable | | General working capital | 104 | — | Not applicable | | **Total** | **1,043** | **24** | | - The unutilized balance of net proceeds is placed in short-term deposits with financial institutions[47](index=47&type=chunk) [Material Investments](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group held no material investments during the current year - The Group held no material investments during the current year[48](index=48&type=chunk) [Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=20&type=section&id=%E6%94%B6%E8%B3%BC%E8%88%87%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD) The Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the current year - The Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the current year[49](index=49&type=chunk) [Employees](index=20&type=section&id=%E5%83%B1%E5%93%A1) As of June 30, 2025, the Group had a total of 448 employees, with staff costs of approximately RMB 40,070 thousand. To incentivize employees, the company adopted a share option scheme this year and granted 33,474,000 share options Employee Information | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total number of employees | 448 people | 436 people | | Staff costs (excluding directors' emoluments) | RMB 40,070 thousand | RMB 38,340 thousand | - The company adopted a share option scheme on February 13, 2025, and granted **33,474,000 share options** to eligible participants on June 20, 2025[50](index=50&type=chunk) [Pledge of Assets](index=20&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had not pledged any of its assets - As of **June 30, 2025**, the Group had not pledged any of its assets[52](index=52&type=chunk) [Future Plans for Material Investments or Capital Assets and Expected Sources of Funding](index=20&type=section&id=%E6%9C%89%E9%97%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83%E5%8F%8A%E9%A0%90%E6%9C%9F%E8%B3%87%E9%87%91%E4%BE%86%E6%BA%90) As of June 30, 2025, the Group had no future plans for material investments or capital assets and will continue to monitor industry developments and regularly review its business expansion plans - As of **June 30, 2025**, the Group had no future plans for material investments or capital assets[53](index=53&type=chunk) - The Group will continue to closely monitor industry developments and regularly review its business expansion plans[53](index=53&type=chunk) [Exchange Rate Fluctuation Risk](index=21&type=section&id=%E5%BD%99%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group's foreign exchange risk primarily arises from financial assets and liabilities denominated in USD and HKD. This year, the Group did not use financial instruments to hedge currency risk and will continue to monitor it closely - The Group's foreign exchange risk primarily arises from financial assets and liabilities denominated in USD and HKD[54](index=54&type=chunk) - This year, the Group did not use financial instruments to hedge currency risk and will continue to monitor it closely[54](index=54&type=chunk) [Capital Commitments](index=21&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had no capital expenditures contracted but not provided for in the consolidated financial statements - As of **June 30, 2025**, the Group had no capital expenditures contracted but not provided for in the consolidated financial statements[55](index=55&type=chunk) [Contingent Liabilities](index=21&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of **June 30, 2025**, the Group had no material contingent liabilities[56](index=56&type=chunk) [Dividends](index=21&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any final dividend for the current year - The Board does not recommend the payment of any final dividend for the current year[57](index=57&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the current year, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the current year, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[58](index=58&type=chunk) [Events After Reporting Period](index=21&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Except for those disclosed in this announcement, no material events affecting the Group occurred from the end of the reporting period to the date of this announcement - No material events affecting the Group occurred from the end of the reporting period to the date of this announcement, other than those disclosed in this announcement[59](index=59&type=chunk) [Corporate Governance](index=21&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) This section details the company's adherence to corporate governance principles, including compliance with the Corporate Governance Code and the roles of its committees [Compliance with the Corporate Governance Code](index=21&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87%E7%9A%84%E9%81%B5%E5%AE%88%E6%83%85%E6%B3%81) The company largely complied with the Corporate Governance Code this year, with two deviations: the roles of Chairman and CEO are combined, and management provides updates semi-annually instead of monthly. The Board deems these deviations appropriate, ensuring checks and balances and timely information flow - The company complied with most provisions of the Corporate Governance Code this year but deviated from code provisions C.2.1 (combined roles of Chairman and Chief Executive Officer) and D.1.2 (management providing monthly updates)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - The Board believes combining the roles of Chairman and Chief Executive Officer is more efficient, with four independent non-executive directors ensuring checks and balances. Management provides comprehensive financial statements and other updates semi-annually, with timely updates on significant events, fulfilling the purpose of regular information provision[61](index=61&type=chunk)[62](index=62&type=chunk) [Model Code for Securities Transactions by Directors of Listed Issuers](index=22&type=section&id=%E4%B8%8A%E5%B8%82%E7%99%BC%E8%A1%8C%E4%BA%BA%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Model Code as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with it for the current year - The company has adopted the Model Code as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with it for the current year[63](index=63&type=chunk)[64](index=64&type=chunk) [Remuneration Committee](index=23&type=section&id=%E8%96%AA%E9%85%AC%E5%A7%94%E5%91%A1%E6%9C%83) Established in 2008, the Remuneration Committee comprises four independent non-executive directors, chaired by Mr. Chen Yuxiao, and advises the Board on remuneration policies and packages for directors and senior management - The Remuneration Committee was established in 2008, comprising four independent non-executive directors, with Mr. Chen Yuxiao as Chairman[65](index=65&type=chunk) - Its primary responsibility is to advise the Board on remuneration policies and packages for directors and senior management[65](index=65&type=chunk) [Nomination Committee](index=23&type=section&id=%E6%8F%90%E5%90%8D%E5%A7%94%E5%91%A1%E6%9C%83) Established in 2008, the Nomination Committee comprises four independent non-executive directors, chaired by Mr. Chen Yuxiao, and is responsible for reviewing the Board's structure, size, composition, and diversity, and recommending candidates for directorships, re-appointments, and succession planning - The Nomination Committee was established in 2008, comprising four independent non-executive directors, with Mr. Chen Yuxiao as Chairman[66](index=66&type=chunk) - Its primary responsibility is to review the Board's structure, size, composition, and diversity, and to recommend candidates for directorships, re-appointments, and succession planning to the Board[66](index=66&type=chunk) [Audit Committee](index=23&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%91%A1%E6%9C%83) Established in 2008, the Audit Committee comprises four independent non-executive directors, chaired by Mr. Chen Yuxiao, and assists the Board in providing independent oversight on financial reporting, internal controls, and risk management systems, having reviewed the full-year results for the current year - The Audit Committee was established in 2008, comprising four independent non-executive directors, with Mr. Chen Yuxiao as Chairman[67](index=67&type=chunk) - Its primary responsibility is to assist the Board in providing independent opinions on financial reporting, internal control, and risk management systems, and it has reviewed the full-year results for the current year[67](index=67&type=chunk) [Other Information](index=24&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers additional disclosures including annual general meeting details, auditor's scope, and publication of full-year results and annual report [Annual General Meeting and Closure of Register of Members](index=24&type=section&id=%E8%82%A1%E6%9D%B1%E9%80%B1%E5%B9%B4%E5%A4%A7%E6%9C%83%E5%8F%8A%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E6%89%8B%E7%BA%8C) The company's share transfer registration will be suspended from December 8 to December 11, 2025, to determine shareholders' eligibility to attend and vote at the Annual General Meeting. All share transfer documents must be submitted by 4:30 p.m. on December 5, 2025 - The register of members will be closed from **December 8 to December 11, 2025**, to determine shareholders' eligibility to attend and vote at the Annual General Meeting[68](index=68&type=chunk) - Share transfer documents must be submitted by **4:30 p.m. on December 5, 2025**[68](index=68&type=chunk) [Auditor's Scope of Work](index=24&type=section&id=%E5%9C%8B%E5%AF%8C%E6%B5%A9%E8%8F%AF%EF%BC%88%E9%A6%99%E6%B8%AF%EF%BC%89%E6%9C%83%E8%A8%88%E5%B8%AB%E4%BA%8B%E5%8B%99%E6%89%80%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E7%9A%84%E5%B7%A5%E4%BD%9C%E7%AF%84%E5%9C%8D) The Group's auditor, Crowe (HK) CPA Limited, has reconciled the financial data in the preliminary announcement with the audited consolidated financial statements, but their work does not constitute an assurance engagement, and no opinion or assurance conclusion has been expressed - The auditor, Crowe (HK) CPA Limited, has reconciled the financial data in the preliminary announcement with the audited consolidated financial statements[69](index=69&type=chunk) - The auditor's work does not constitute an assurance engagement, and no opinion or assurance conclusion has been expressed on the preliminary announcement[69](index=69&type=chunk) [Publication of Full-Year Results and Annual Report](index=25&type=section&id=%E5%88%8A%E7%99%BC%E5%85%A8%E5%B9%B4%E6%A5%AD%E7%B8%BE%E5%8F%8A%E5%B9%B4%E5%BA%A6%E5%A0%B1%E5%91%8A) This full-year results announcement has been published on the HKEX and company websites. The Group's full-year consolidated financial results for the current year have been reviewed by the Audit Committee, and the annual report will be dispatched to shareholders and published on the website in due course - The full-year results announcement has been published on the HKEX website and the company's website[70](index=70&type=chunk) - The Group's full-year consolidated financial results for the current year have been reviewed by the Audit Committee, and the annual report will be dispatched to shareholders and published on the website in due course[70](index=70&type=chunk)

CHINA FRONTIER TECHNOLOGY GROUP 中國前沿科技集團 股份代號：1661 （於開曼群島註冊成立的有限公司） 中 期 報 告 CHINA FRONTIER TECHNOLOGY GROUP Interim Report 目 錄 | 公司資料 | 2 | | --- | --- | | 管理層討論與分析 | 3 | | 披露權益資料 | 11 | | 重要事項 | 14 | | 企業管治及其他資料 | 20 | | 簡明合併損益及其他綜合收益表 | 22 | | 簡明合併財務狀況表 | 24 | | 簡明合併權益變動表 | 26 | | 簡明合併現金流量表 | 27 | | 中期財務資料附註 | 28 | 2025 中期報告 中國前沿科技集團 1 公司資料 執行董事 任松女士 （聯席主席） 常海松先生 張盼盼女士 任文女士（亦稱任國尊女士） （聯席主席） （於2025年7月29日辭任） 盛杰先生 （副主席） （於2025年7月29日辭任） 黃文強先生 （聯席主席） （於2025年9月19日辭任） 王潔女士（於2025年9月19日辭任） 獨立非執行董事 高文娟女士 梁曉文女士 吳明聰先生 ...

Financial Performance - New Gonow Recreational Vehicles Inc. reported a significant increase in revenue, achieving a total of HK$240 million for the interim period, representing a growth of 25% compared to the previous year[9]. - The company reported a revenue of RMB 500 million for the first half of 2025, representing a 20% increase compared to the same period last year[19]. - Total revenue for the six months ended June 30, 2025, amounted to RMB 411.7 million, a decrease of 2.4% compared to RMB 422.0 million for the same period in 2024[44]. - Revenue from RV sales decreased by 7.4% to RMB 367.6 million, down from RMB 396.9 million in the previous year, primarily due to a decrease in sales volume[45]. - Profit for the period was RMB 30,997,000, down 23.3% from RMB 40,430,000 in 2024[21]. - Total comprehensive income for the period was RMB 28,101,000, a decrease of 29.6% from RMB 39,870,000 in 2024[194]. User Growth and Market Expansion - The company has expanded its user base, now serving over 150,000 active customers, which is a 30% increase year-over-year[10]. - User data showed a growth of 15% in active users, reaching 1.2 million by June 30, 2025[19]. - The company plans to enter new markets in Southeast Asia, aiming for a market share of 10% within the next two years[12]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2026[19]. - The company is exploring potential acquisitions in the RV parts sector to enhance its supply chain efficiency[19]. Research and Development - Investment in research and development has increased by 20%, focusing on innovative vehicle technologies and sustainable practices[14]. - Research and development expenses increased by 30% to RMB 100 million, focusing on new product innovations[19]. - R&D expenses increased by 112.5% to RMB 11.9 million for the six months ended June 30, 2025, from RMB 5.6 million for the same period in 2024[65]. - The company has established a strategic partnership with a leading technology firm to enhance its R&D capabilities[19]. Financial Strategy and Capital Management - Cash flow from operations increased by 40%, reaching HK$50 million, providing a solid foundation for future investments[39]. - The company has initiated a capital raising plan, targeting HK$620 million through a share issuance to support growth initiatives[6]. - The Group's capital expenditures for the six months ended June 30, 2025, were RMB 2.3 million, down from RMB 3.0 million for the same period in 2024[88]. - The Group's investment strategy focuses on generating income and achieving capital appreciation to enhance shareholder returns[98]. Corporate Governance - Corporate governance practices have been strengthened, with the establishment of a new audit committee to enhance oversight and compliance[22]. - The Audit Committee has reviewed the unaudited interim consolidated financial statements for the six months ended June 30, 2025, confirming compliance with applicable accounting standards[144]. - The company has established an Audit Committee comprising three independent non-executive Directors to oversee financial reporting and risk management[143]. - The company has complied with the applicable code provisions of the Corporate Governance Code from the Listing Date to June 30, 2025, except for certain deviations[124]. Product Development - A new product line of electric RVs is set to launch in Q3 2025, expected to contribute an additional RMB 200 million in revenue[19]. - The company launched the SRH-Hybrid 2025, expanding its hybrid towable RV lineup with six models[28]. - The SRH-Hybrid 2025 features advanced technology and luxury, targeting families and solo travelers in the competitive RV market[28]. - The company has discontinued 5 RV models to better cater to market demands, resulting in a total of 50 RV models as of June 30, 2025[22]. Challenges and Risks - The company reported a gross profit margin improved to 35%, up from 30% in the previous period, reflecting better cost management and pricing strategies[34]. - Gross profit decreased by 9.8% to RMB 121,629,000 from RMB 134,903,000 in the same period last year[21]. - The backlog as of June 30, 2025, included 1,535 units under Snowy River with a contract value of A$88,498,765.3 (RMB 414,324,669.5)[27]. - The Regent brand delivered only 25 units, representing a significant decrease of 67.9% from 78 units in the first half of 2024[25]. Future Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[12]. - The company expects the Canadian market to become a core growth engine, with plans to form demonstration sales cases by 2026 and increase investment in product localization[36].

中國光大銀行二零二五年中期報告 中國光大銀行股份有限公司 （於中華人民共和國註冊成立的股份有限公司） 股份代碼：6818 中期報告 地址：中國北京西城區太平橋大街25號中國光大中心 電話：(86)10-63636363 傳真：(86)10-63639066 郵編：100033 網址：www.cebbank.com 此中報以環保紙印製 重要提示 本行董事會、監事會及董事、監事、高級管理人員保證本報告內容的真實、準確、完整，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。 本行第九屆董事會第三十次會議於2025年8月29日在北京召開，審議通過本行《2025年中期報告》。會議應出 席董事16名，實際出席董事16名。本行部分監事列席本次會議。 本行按照中國企業會計準則和國際財務報告會計準則編製的2025年中期財務報告已經畢馬威華振會計師事務 所（特殊普通合夥）和畢馬威會計師事務所分別根據中國和國際審閱準則審閱。 本行董事長吳利軍、行長郝成、副行長及首席財務官劉彥、財務會計部總經理盧健保證本報告中財務報告的 真實、準確、完整。 本報告除特別說明外，金額幣種為人民幣。 截至本報告披露日，董事會尚未審議 ...

SUNSHINE OILSANDS LTD. 陽光油砂有限公司* （一家根據加拿大阿爾伯塔省商業公司法註冊成立的有限公司） （香港聯交所： 2012 ） 二零二五年中期報告 * 僅供識別 財務數據總結 截至二零二五年六月三十日止六個月的石油銷售額（扣除特許權使用費）從截至二零二四年六月三十日止六個月 約 2,150 萬加元下降至零加元，下降之主要原因是由於二零二五年第一季及第二季 West Ells 設備維護所導致的收 入損失。 截至二零二五年六月三十日止三個月的淨營業虧損（不包括一次性匯兌損失）為約 210 萬加元，而二零二四年同 期淨營業收入則為約 113 萬加元。 截至二零二五年六月三十日止三個月的經營現金流為淨流出約 250 萬加元，相較於二零二四年同期錄得淨流入約 80 萬加元。截至二零二五年六月三十日止三個月的經營現金流虧損擴大主之要是二零二五年第一季及第二季 West Ells 設備維護所導致的收入損失。 二零二五年第二季度，歸屬於本公司股東的淨虧損為約 200 萬加元，對比去年同期的淨虧損為約 1,100 萬加元。 於二零二五年六月三十日、二零二四年十二月三十一日及二零二四年六月三十日，本公司 ...