[Company Information](index=3&type=section&id=Company%20Information) Overview of company's administrative and contact details, including board changes and office relocation [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board saw new executive appointments and resignations, and independent non-executive directors chair key committees - Mr. Li Chun Tung re-designated as Chairman on June 2, 2025[3](index=3&type=chunk) - Mr. Wang Han appointed Executive Director and CEO on June 2, 2025[3](index=3&type=chunk) - Ms. Cheung Ka Yee appointed Executive Director on June 2, 2025[3](index=3&type=chunk) - Mr. Chu Che Ping, Ms. Lau Wan Tai, and Mr. Li Tai Pang retired or resigned as Executive Directors on May 30, 2025, and January 10, 2025, respectively[3](index=3&type=chunk) [Company Contact and Professional Services](index=3&type=section&id=Company%20Contact%20and%20Professional%20Services) The company's Hong Kong headquarters relocated to a new address, with its stock code and professional service providers listed - Hong Kong headquarters and principal place of business relocated to Room 1608, 16/F, Nan Fung Tower, 88 Connaught Road Central, Hong Kong on July 28, 2025[3](index=3&type=chunk) - Company stock code is **804**[3](index=3&type=chunk) - Company website is www.pinestone.com.hk[4](index=4&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) Group revenue increased by 58% to HK$16.9 million, but net loss widened to HK$3.7 million due to higher operating expenses Financial Highlights for the Six Months Ended June 30, 2025 | Metric | June 30, 2025 (HK$'000) | June 30, 2024 (HK$'000) | Change (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 16,900 | 10,700 | 6,200 | 58% | | Net Loss | (3,700) | (800) | (2,900) | 362.5% | | Basic and Diluted Loss Per Share (HK cents) | (0.76) | (0.19) | (0.57) | 300% | | Interim Dividend | Nil | Nil | - | - | - The increase in net loss was primarily due to a rise in compliance, professional, and agency fees, leading to other operating expenses increasing to **HK$16.1 million** for the six months ended June 30, 2025 (six months ended June 30, 2024: HK$2.9 million)[5](index=5&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Revenue grew significantly, but increased operating expenses, particularly commissions, employee benefits, and other operating costs, led to a wider loss for the period Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 16,875 | 10,715 | | Other income | 506 | 52 | | Commission and fee expenses | (1,057) | (510) | | Employee benefit expenses | (3,947) | (3,013) | | Depreciation | (6) | (487) | | Impairment loss on trade receivables and loans receivable, net | – | (4,616) | | Other operating expenses | (16,055) | (2,947) | | (Loss) before income tax | (3,684) | (806) | | (Loss) for the period | (3,684) | (806) | | Basic and diluted (loss) per share (HK cents) | (0.76) | (0.19) | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets and equity increased, with a significant reduction in current liabilities improving net current assets and the current ratio Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Metric | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 19,695 | 19,401 | | Total current assets | 135,351 | 135,471 | | **Liabilities** | | | | Total current liabilities | 6,065 | 16,500 | | **Equity** | | | | Total equity | 148,981 | 138,372 | | Net current assets | 129,286 | 118,971 | | Total assets less current liabilities | 148,981 | 138,372 | - Current liabilities significantly decreased from **HK$16.5 million** as at December 31, 2024, to **HK$6.065 million** as at June 30, 2025, primarily due to a reduction in trade payables and contract liabilities[7](index=7&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity increased, primarily driven by net proceeds of approximately HK$13.86 million from a successful share placement for general working capital Condensed Consolidated Statement of Changes in Equity (For the Six Months Ended June 30) | Metric | June 30, 2025 (HK$'000) | January 1, 2025 (HK$'000) | | :--- | :--- | :--- | | Share capital | 9,745 | 8,121 | | Share premium | 212,662 | 199,993 | | Capital reserve | (4,866) | (4,866) | | Retained profits | 68,560 | (64,876) | | Total equity | 148,981 | 138,372 | - The company successfully placed **81,210,000 new shares** at HK$0.176 per share on January 13, 2025, raising net proceeds of approximately **HK$13.86 million** fully utilized for general working capital[9](index=9&type=chunk) - Loss for the period was **HK$3.684 million**, compared to a loss of HK$0.806 million in the same period of 2024[9](index=9&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Increased net cash outflow from operating activities and slight increase from investing activities were offset by significant net cash inflow from financing activities, primarily from share placement, leading to higher period-end cash and bank balances Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (13,212) | (10,268) | | Net cash (used in) / generated from investing activities | (54) | 27 | | Net cash (used in) / generated from financing activities | 14,294 | (497) | | Net (decrease) / increase in cash and cash equivalents | 1,028 | (10,738) | | Cash and cash equivalents at beginning of period | 15,929 | 23,394 | | Cash and cash equivalents at end of period | 16,957 | 12,656 | - Net cash inflow from financing activities was **HK$14.294 million**, primarily from proceeds of share placement[10](index=10&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Detailed notes providing context and breakdowns for the condensed consolidated interim financial statements [1. Company Information](index=10&type=section&id=1.%20Company%20Information) Pine Stone Capital Limited, incorporated in Cayman Islands and listed in Hong Kong, primarily engages in securities brokerage, margin lending, and underwriting services, with its principal place of business relocated - The Group primarily provides securities brokerage services, securities-backed lending services (including margin financing and money lending services), other lending services, and placing and underwriting services[11](index=11&type=chunk) - The company's principal place of business relocated to Room 1608, 16/F, Nan Fung Tower, 88 Connaught Road Central, Sheung Wan, Hong Kong, effective July 28, 2025[11](index=11&type=chunk) [2. Basis of Preparation and Accounting Policies](index=11&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) Condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and Listing Rules, using consistent accounting policies with prior year, except for newly adopted HKFRSs - The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the HKICPA and the applicable disclosure provisions of the Listing Rules of the Stock Exchange[12](index=12&type=chunk) - The accounting policies used in preparing these condensed consolidated interim financial statements are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2024, except for the adoption of new and revised HKFRSs effective for the current accounting period[12](index=12&type=chunk) - The unaudited condensed consolidated financial statements are prepared on a historical cost basis and presented in Hong Kong dollars[13](index=13&type=chunk)[14](index=14&type=chunk) [3. New or Revised Hong Kong Financial Reporting Standards](index=12&type=section&id=3.%20New%20or%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) New and revised HKFRSs effective January 1, 2025, including HKAS 21 (Amendment) — Lack of Exchangeability, had no significant impact on the Group's accounting policies - Revised HKFRSs effective January 1, 2025, relevant to the Group, had no significant impact on the Group's accounting policies[15](index=15&type=chunk) [4. Revenue](index=12&type=section&id=4.%20Revenue) Group revenue primarily from securities brokerage, placing and underwriting, and lending services, with significant growth in revenue from customer contracts, especially placing and underwriting services Revenue Sources (For the Six Months Ended June 30) | Revenue Source | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Commission income from securities brokerage services | 580 | 80 | | Income from placing and underwriting services | 8,927 | 570 | | Handling fee income | 50 | 4 | | Interest income from margin financing services | 3,213 | 6,518 | | Interest income from money lending services | 4,105 | 3,543 | | **Total Revenue** | **16,875** | **10,715** | - Revenue from contracts with customers significantly increased to **HK$9.557 million** for the six months ended June 30, 2025, compared to HK$0.654 million in the same period of 2024[16](index=16&type=chunk) [5. Segment Information](index=13&type=section&id=5.%20Segment%20Information) The Group operates as a single reportable segment providing securities brokerage, securities-backed lending, and placing and underwriting services, with all revenue and non-current assets derived from Hong Kong - The Executive Directors have determined that the Group has only one single reportable segment, which is the provision of securities brokerage services, securities-backed lending services, and placing and underwriting services[18](index=18&type=chunk) - All the Group's revenue from customers is derived from operations in Hong Kong, and all non-current assets are located in Hong Kong[19](index=19&type=chunk) - For the six months ended June 30, 2025, the largest customer accounted for approximately **HK$1 million** in revenue, representing about **5.9%** of the Group's total revenue of HK$16.9 million[20](index=20&type=chunk) [6. Other Income](index=14&type=section&id=6.%20Other%20Income) Other income significantly increased for the six months ended June 30, 2025, primarily due to higher bank interest and custodial income Other Income (For the Six Months Ended June 30) | Income Source | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Bank interest income | 246 | 27 | | Custodial income | 260 | 25 | | **Total** | **506** | **52** | [7. Profit Before Income Tax](index=14&type=section&id=7.%20Profit%20Before%20Income%20Tax) Profit (loss) before income tax is derived after deducting expenses such as auditor's remuneration, which slightly increased for the six months ended June 30, 2025 Deductions from Profit Before Income Tax (For the Six Months Ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Auditor's remuneration | 379 | 350 | [8. Income Tax Expense](index=15&type=section&id=8.%20Income%20Tax%20Expense) The Group recorded no income tax expense for the six months ended June 30, 2025, due to a loss for the period, with Hong Kong profits tax rates detailed - The Group had no income tax expense for the six months ended June 30, 2025[24](index=24&type=chunk) - Hong Kong profits tax rate is **8.25%** for the first HK$2 million of assessable profits for qualifying entities, and **16.5%** for profits exceeding HK$2 million[24](index=24&type=chunk) [9. Dividends](index=15&type=section&id=9.%20Dividends) The Board of Directors does not recommend paying any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (June 30, 2024: Nil)[25](index=25&type=chunk) [10. Loss Per Share](index=16&type=section&id=10.%20Loss%20Per%20Share) Basic and diluted loss per share for the six months ended June 30, 2025, widened to HK$0.0076, calculated based on the weighted average number of ordinary shares, with no dilutive effects Loss Per Share Calculation (For the Six Months Ended June 30) | Metric | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | (Loss) for the period attributable to owners of the Company (HK$'000) | (3,684) | (806) | | Weighted average number of ordinary shares in issue during the period (thousands) | 481,896 | 418,658 | | Basic and diluted (loss) per share (HK cents) | (0.76) | (0.19) | - As there were no potentially dilutive ordinary shares in existence during the current and prior periods, the diluted loss per share is the same as the basic loss per share[26](index=26&type=chunk) [11. Property, Plant and Equipment](index=17&type=section&id=11.%20Property%2C%20Plant%20and%20Equipment) The Group incurred no expenditure on the acquisition of property, plant, and equipment for the six months ended June 30, 2025, consistent with the prior period - The Group incurred no expenditure on the acquisition of property, plant, and equipment for the six months ended June 30, 2025 (six months ended June 30, 2024: Nil)[27](index=27&type=chunk) [12. Prepayments for Investments](index=17&type=section&id=12.%20Prepayments%20for%20Investments) The company established a joint venture for digital asset business on January 17, 2025, and has contributed HK$6.7 million for its 40% interest as of June 30, 2025 - The company established a joint venture with Cast Emperor Holdings Group Limited on January 17, 2025, primarily engaged in digital asset business[28](index=28&type=chunk) - The total registered capital of the joint venture is **HK$25 million**, with the company expected to contribute **HK$10 million** for a **40% interest**[28](index=28&type=chunk) - As of June 30, 2025, the company had contributed **HK$6.7 million** for its **40% interest**[28](index=28&type=chunk) [13. Trade Receivables](index=17&type=section&id=13.%20Trade%20Receivables) Total trade receivables decreased to HK$48.697 million as of June 30, 2025, with no write-offs during the period, contrasting with significant write-offs in the prior year Trade Receivables (As at June 30, 2025) | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Margin clients | 75,201 | 76,755 | | Clearing house | (126) | 2,669 | | Trade receivables from agency services | – | 1,895 | | Trade receivables from placing and underwriting services | – | 193 | | Less: Loss allowance | (26,378) | (26,378) | | **Total** | **48,697** | **55,134** | - The Group wrote off no trade receivables during the six months ended June 30, 2025, compared to **HK$18.7 million** in the same period of 2024[30](index=30&type=chunk) Movement in Loss Allowance for Trade Receivables | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | At January 1 | 26,378 | 59,008 | | Impairment loss charged to profit or loss | – | 9,149 | | Reversal of discount | – | 4,781 | | Amounts written off as uncollectible | – | (46,560) | | Balance | 26,378 | 26,378 | [14. Loans Receivable](index=19&type=section&id=14.%20Loans%20Receivable) Total loans receivable from money lending increased to HK$79.925 million as of June 30, 2025, with no write-offs during the period, contrasting with significant write-offs in the prior year Loans Receivable (As at June 30, 2025) | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Loans receivable from money lending | 79,925 | 74,416 | | Less: Loan allowance | (26,667) | (26,667) | | **Total** | **53,258** | **47,749** | - The Group wrote off no loans receivable during the six months ended June 30, 2025, compared to **HK$17.9 million** in the same period of 2024[35](index=35&type=chunk) Movement in Loan Allowance for Loans Receivable | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | At January 1 | 26,667 | 63,108 | | Impairment loss charged to profit or loss | – | 11,751 | | Reversal of discount | – | 2,985 | | Amounts written off as uncollectible | – | (51,177) | | Balance | 26,667 | 26,667 | [15. Bank Trust Balances Held on Behalf of Clients](index=21&type=section&id=15.%20Bank%20Trust%20Balances%20Held%20on%20Behalf%20of%20Clients) The Group holds client monies in segregated trust accounts at authorized financial institutions, classified as current assets with corresponding trade payables, as the Group is responsible for client funds - The Group maintains segregated trust accounts at authorized financial institutions for client monies, classifying them as current assets[37](index=37&type=chunk) - Corresponding balances payable to cash and margin clients are recognized under trade payables, as the Group is responsible for any loss or misuse of client funds[37](index=37&type=chunk) [16. Trade Payables](index=21&type=section&id=16.%20Trade%20Payables) Total trade payables significantly decreased to HK$5.337 million as of June 30, 2025, primarily due to a reduction in amounts payable to cash clients, with a T+2 settlement period for securities trading Trade Payables (As at June 30, 2025) | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Cash clients | 3,204 | 10,092 | | Margin clients | 2,133 | 2,151 | | **Total** | **5,337** | **12,243** | - Trade payables arising from securities trading business have a settlement period of two business days after the trade date ("T+2")[38](index=38&type=chunk) [17. Contract Liabilities](index=21&type=section&id=17.%20Contract%20Liabilities) Contract liabilities, representing amounts received for consulting services to be recognized as revenue within 12 months, were zero as of June 30, 2025 - Contract liabilities represent amounts received by the Group for consulting services, expected to be recognized as revenue within the next 12 months[39](index=39&type=chunk) - As of June 30, 2025, contract liabilities were **nil** (December 31, 2024: HK$1.012 million)[7](index=7&type=chunk) [18. Commitments](index=22&type=section&id=18.%20Commitments) The Group had no significant capital commitments as of June 30, 2025, consistent with December 31, 2024 - As of June 30, 2025, the Group had no significant capital commitments (December 31, 2024: Nil)[40](index=40&type=chunk) [19. Contingent Liabilities](index=22&type=section&id=19.%20Contingent%20Liabilities) The Group had no significant contingent liabilities as of June 30, 2025, consistent with December 31, 2024 - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: Nil)[41](index=41&type=chunk) [20. Related Party Transactions](index=22&type=section&id=20.%20Related%20Party%20Transactions) The Group recorded no related party securities or lending transactions for the six months ended June 30, 2025, though key management personnel remuneration increased - During the reporting period for the six months ended June 30, 2025, the Group recorded no securities, money, or other secured lending business transactions with related parties[44](index=44&type=chunk) Key Management Personnel Remuneration (For the Six Months Ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Salaries, allowances and other benefits | 2,451 | 2,217 | | Defined contribution retirement scheme contributions | 44 | 43 | | **Total** | **2,495** | **2,260** | [21. Share Capital](index=23&type=section&id=21.%20Share%20Capital) Total issued share capital increased to 487,280,100 shares due to a placement of 81,210,000 new shares, raising net proceeds of approximately HK$13.86 million for general working capital Authorized and Issued Share Capital (As at June 30, 2025) | Item | Par Value (HK$) | Number of Ordinary Shares | Amount (HK$'000) | | :--- | :--- | :--- | :--- | | Authorized share capital | 0.020 | 25,000,000,000 | 500,000 | | Issued and fully paid share capital (as at June 30, 2025) | 0.020 | 487,280,100 | 9,745 | | Issued and fully paid share capital (as at January 1, 2025) | 0.020 | 406,070,100 | 8,121 | | Shares placed | 0.020 | 81,210,000 | 1,624 | - On January 13, 2025, the company successfully placed **81,210,000 new shares** to at least six placees at HK$0.176 per share, raising net proceeds of approximately **HK$13.86 million**[45](index=45&type=chunk) - The net proceeds were fully utilized for the Group's general working capital[45](index=45&type=chunk) [Management Discussion and Analysis](index=24&type=section&id=Management%20Discussion%20and%20Analysis) Management's review of the Group's business performance, financial results, and future outlook, highlighting revenue growth, increased losses, and strategic initiatives [Business Review](index=24&type=section&id=Business%20Review) The Group's core services include securities brokerage, lending, and placing/underwriting, with strong performance in brokerage and placing services driven by a recovering Hong Kong stock market - The Group primarily provides securities brokerage, securities-backed lending services (including margin financing and money lending), other secured lending, and placing and underwriting services[46](index=46&type=chunk) - The Hong Kong stock market significantly recovered in H1 2025, with the Hang Seng Index increasing by approximately **20%** from 20,060 points on December 30, 2024, to 24,072 points on June 30, 2025[47](index=47&type=chunk) - Average daily turnover for the first six months of 2025 was **HK$240.2 billion**, an increase of **118%** from HK$110.4 billion in the same period last year[47](index=47&type=chunk) [Securities Brokerage Services](index=24&type=section&id=Securities%20Brokerage%20Services) Commission income from securities brokerage services surged by approximately seven times to HK$0.58 million in H1 2025, driven by an active Hong Kong stock market and capital inflows Commission Income from Securities Brokerage Services (For the Six Months Ended June 30) | Metric | 2025 (HK$) | 2024 (HK$) | Change (%) | | :--- | :--- | :--- | :--- | | Commission income | 580,000 | 80,000 | 625% | [Securities-Backed Lending Services](index=25&type=section&id=Securities-Backed%20Lending%20Services) Securities-backed lending services remain a core revenue source, but total interest income decreased by approximately 28% to HK$7.3 million due to a cautious approach in margin financing Interest Income from Securities-Backed Lending Services (For the Six Months Ended June 30) | Metric | 2025 (HK$) | 2024 (HK$) | Change (%) | | :--- | :--- | :--- | :--- | | Total interest income | 7,300,000 | 10,100,000 | -28% | [Margin Financing Services](index=25&type=section&id=Margin%20Financing%20Services) Interest income from margin financing services decreased by approximately 51% to HK$3.2 million, primarily due to the Board's cautious approach to reduce default risks, leading to a significant drop in average monthly loan book balance Margin Financing Services Interest Income and Loan Balance (For the Six Months Ended June 30) | Metric | 2025 (HK$) | 2024 (HK$) | Change (%) | | :--- | :--- | :--- | :--- | | Interest income | 3,200,000 | 6,500,000 | -51% | | Average monthly loan book balance | 74,000,000 | 151,000,000 | -51% | - The company cautiously reviewed collateral, transaction history, and repayment records before providing margin loans, resulting in a reduction in the amount of margin loans offered[50](index=50&type=chunk) [Money Lending and Other Secured Lending Services](index=25&type=section&id=Money%20Lending%20and%20Other%20Secured%20Lending%20Services) Money lending services revenue grew by approximately 17% to HK$4.1 million, with 8 loans extended during the period at annual interest rates ranging from 12% to 24% Money Lending Services Revenue (For the Six Months Ended June 30) | Metric | 2025 (HK$) | 2024 (HK$) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 4,100,000 | 3,500,000 | 17% | - As of June 30, 2025, the Group had extended **8 loans** (June 30, 2024: 5 loans), ranging from **HK$3 million** to **HK$16.5 million**[51](index=51&type=chunk) - Each loan carried an annual interest rate between approximately **12% and 24%**, with a maximum repayment period of **12 months**[51](index=51&type=chunk) [Placing and Underwriting Services](index=26&type=section&id=Placing%20and%20Underwriting%20Services) Revenue from placing and underwriting services surged over 15 times to HK$8.9 million, primarily driven by bond placing activities, with 14 activities undertaken during the period Placing and Underwriting Services Revenue (For the Six Months Ended June 30) | Revenue Source | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Fee income from placing and underwriting securities | 1,040 | 570 | | Agency fee income from placing bonds | 7,887 | Not applicable | | **Total Income** | **8,927** | **570** | - For the six months ended June 30, 2025, the Group participated in **14 placing and underwriting activities**, compared to 2 placing activities in the same period of 2024[52](index=52&type=chunk) - Approximately **HK$1 million** in revenue was from securities placing, while approximately **HK$7.9 million** was from bond placing activities[52](index=52&type=chunk) [Loss for the Period](index=26&type=section&id=Loss%20for%20the%20Period) The Group's net loss widened to HK$3.7 million for the six months ended June 30, 2025, mainly due to a significant increase in other operating expenses, including compliance, professional, and agency fees Loss for the Period (For the Six Months Ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Unaudited net loss | (3,700) | (800) | - The increase in loss was primarily due to higher other operating expenses, which amounted to approximately **HK$16.1 million** for the six months ended June 30, 2025 (June 30, 2024: HK$2.9 million)[54](index=54&type=chunk) - The surge in other operating expenses was driven by increased compliance, professional, and agency fees, along with other expenses during the period[54](index=54&type=chunk) [Outlook](index=27&type=section&id=Outlook) The Group is optimistic about the Hong Kong financial market and plans to strengthen its financial position by diversifying revenue, expanding client networks, exploring virtual asset business, and enhancing operational efficiency - The Group will continue to focus on strengthening its financial position by broadening its revenue base and expanding its client network[55](index=55&type=chunk) - The Group will closely monitor market trends and adjust its strategies as needed, confident in achieving stable, sustainable growth in H2 2025 and beyond through business diversification, a broader client base, and prudent risk and cost management[61](index=61&type=chunk) [Securities Brokerage Services](index=27&type=section&id=Securities%20Brokerage%20Services) The Group plans to establish a virtual asset business by applying for a virtual asset trading service license, with submission expected by September 2025 and approval by Q1 2026 - The company is actively pursuing the establishment of a virtual asset business by applying for a virtual asset trading service license condition to meet client demand for handling virtual assets like cryptocurrencies[55](index=55&type=chunk) - The company intends to submit the application by **September 2025** and expects to be granted the license condition by **Q1 2026**[55](index=55&type=chunk) [Securities-Backed Lending Services](index=27&type=section&id=Securities-Backed%20Lending%20Services) The company proposes a rights issue to raise up to HK$60.7 million, with approximately HK$50 million allocated to expand margin financing and money lending businesses to strengthen its capital base - The company announced a proposed rights issue to raise gross proceeds of up to approximately **HK$60.7 million**, with estimated net proceeds of approximately **HK$57.6 million** if fully subscribed[56](index=56&type=chunk) - The company intends to allocate approximately **HK$35 million** to expand its margin financing services and approximately **HK$15 million** to support its money lending business, totaling approximately **HK$50 million**[57](index=57&type=chunk) [Placing and Underwriting Services](index=28&type=section&id=Placing%20and%20Underwriting%20Services) The Group will continue to seek new mandates as underwriters and placing agents for equity and debt transactions, actively negotiating with listed companies and bond issuers, expecting this business line to remain a significant revenue contributor - The Group will continue to seek new mandates, such as appointments as underwriters and placing agents for equity and debt transactions, and is actively negotiating with listed companies and bond issuers[58](index=58&type=chunk) [Asset Management and Family Office Services](index=28&type=section&id=Asset%20Management%20and%20Family%20Office%20Services) Pine Stone Capital Asset Management Limited obtained a Type 9 (Asset Management) license in September 2024, enabling it to offer comprehensive asset management and wealth solutions to clients, with plans to further develop service offerings - Pine Stone Capital Asset Management Limited was granted a Type 9 (Asset Management) license in **September 2024**[59](index=59&type=chunk) - With this license approval, the Group is now equipped to provide comprehensive asset management and wealth solutions to individual and institutional clients, including securities, bonds, funds, and trust-related services[59](index=59&type=chunk) [Efficiency and Cost Management](index=28&type=section&id=Efficiency%20and%20Cost%20Management) The Group is reviewing operations to enhance efficiency, streamline workflows, and control operating costs in response to rising compliance and professional expenses, while also exploring the distressed asset disposal market - The Group is reviewing its operations to enhance efficiency and manage expenses, striving to improve work efficiency, streamline workflows, and control operating costs[60](index=60&type=chunk) - The Group is also actively exploring the distressed asset disposal market, planning to establish a distressed asset disposal auction platform in Asia to further diversify its revenue streams[61](index=61&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) Total revenue increased by 58% to HK$16.9 million, driven by placing and underwriting fees, but higher employee benefits and other operating expenses led to an expanded loss for the period, despite successful share placement and strong liquidity - Total revenue for the six months ended June 30, 2025, was approximately **HK$16.9 million**, an increase of approximately **HK$6.2 million** or **58%** compared to the same period in 2024[63](index=63&type=chunk) - The Group recorded an unaudited net loss of approximately **HK$3.7 million** for the six months ended June 30, 2025, compared to an unaudited net loss of approximately HK$0.8 million in the same period of 2024[68](index=68&type=chunk) - As of June 30, 2025, the Group recorded a current ratio of approximately **22.32 times** (December 31, 2024: 8.21 times)[75](index=75&type=chunk) [Revenue](index=29&type=section&id=Revenue) Total revenue grew by 58% to HK$16.9 million, primarily driven by a significant increase in bond and securities placing or agency fees, despite a decrease in interest income from securities-backed lending services Revenue Sources (For the Six Months Ended June 30) | Revenue Source | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Commission income from securities brokerage services | 580 | 80 | | Income from placing and underwriting services | 8,927 | 570 | | Handling fees | 50 | 4 | | Interest income from margin financing services | 3,213 | 6,518 | | Interest income from money lending services | 4,105 | 3,543 | | **Total Revenue** | **16,875** | **10,715** | - Placing or agency fees for bonds and securities recorded significant growth, increasing over **15 times** to **HK$8.9 million** for the six months ended June 30, 2025, from approximately HK$0.57 million in the same period of 2024[63](index=63&type=chunk) - Interest income from securities-backed lending services decreased by approximately **28%** to about **HK$7.3 million** for the six months ended June 30, 2025[63](index=63&type=chunk) [Employee Benefit Expenses](index=30&type=section&id=Employee%20Benefit%20Expenses) Employee benefit expenses increased by approximately 30% to HK$3.9 million for the six months ended June 30, 2025, primarily due to the recruitment of additional staff, bringing the total headcount to 21 Employee Benefit Expenses (For the Six Months Ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Employee benefit expenses | 3,900 | 3,000 | 30% | - The recruitment of additional staff was the primary factor for the increase in employee benefit costs, with the Group employing **21 employees** as of June 30, 2025 (June 30, 2024: 18 employees)[64](index=64&type=chunk) [Other Operating Expenses](index=31&type=section&id=Other%20Operating%20Expenses) Other operating expenses significantly increased to HK$16.1 million, representing approximately 80% of total expenses, primarily due to a surge in agency or professional fees, legal and compliance, and administrative expenses Other Operating Expenses (For the Six Months Ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Other operating expenses | 16,100 | 2,900 | | Percentage of total expenses | Approx. 80% | Approx. 40% | - The significant increase in total operating expenses was attributable to agency or professional fees, legal and compliance, and administrative expenses[65](index=65&type=chunk) [Income Tax Expense](index=31&type=section&id=Income%20Tax%20Expense) The Group recorded no income tax expense for the six months ended June 30, 2025, consistent with the prior period - There was no income tax expense for the six months ended June 30, 2025 (six months ended June 30, 2024: Nil)[66](index=66&type=chunk) [(Loss) for the Period](index=31&type=section&id=%28Loss%29%20for%20the%20Period) The Group's unaudited net loss widened to HK$3.7 million for the six months ended June 30, 2025, primarily due to a substantial increase in other operating expenses, including compliance, professional, and agency fees (Loss) for the Period (For the Six Months Ended June 30) | Metric | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | (Loss) for the period | (3,684) | (806) | - The increase in net loss was primarily due to a rise in compliance, professional, and agency fees, leading to other operating expenses increasing to **HK$16.1 million** for the six months ended June 30, 2025 (six months ended June 30, 2024: HK$2.9 million)[68](index=68&type=chunk) [Fundraising Activities and Use of Proceeds for the Six Months Ended June 30, 2025](index=32&type=section&id=Fundraising%20Activities%20and%20Use%20of%20Proceeds%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) The company completed a placement of 81,210,000 new shares on January 13, 2025, raising net proceeds of approximately HK$13.86 million, which were fully utilized for general working capital - The company entered into a placing agreement on December 18, 2024, to place up to **81,210,000 new shares** at HK$0.176 per share[69](index=69&type=chunk) - Gross and net proceeds from the placing were approximately **HK$14.29 million** and **HK$13.86 million**, respectively[69](index=69&type=chunk) - The placing was completed on January 13, 2025, with all funds raised fully utilized for the Group's general working capital as planned[70](index=70&type=chunk) [Liquidity and Financial Resources and Capital Structure](index=33&type=section&id=Liquidity%20and%20Financial%20Resources%20and%20Capital%20Structure) The Group's current ratio significantly improved to 22.32 times, and cash and bank balances increased to approximately HK$16.9 million as of June 30, 2025, with existing resources deemed sufficient for operations Liquidity and Financial Resources (As at June 30, 2025) | Metric | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Current assets | 135,351 | 135,471 | | Current liabilities | 6,065 | 16,500 | | Current ratio (times) | 22.32 | 8.21 | | Cash and bank balances | 16,900 | 15,900 | - The Group's operations, capital expenditures, and other funding needs are financed by internal operations, proceeds from share placement, and general working capital[75](index=75&type=chunk) [Foreign Exchange Risk](index=34&type=section&id=Foreign%20Exchange%20Risk) The Group's reporting currency is HKD, and all transactions for the six months ended June 30, 2025, were denominated in HKD, thus posing no significant foreign exchange risk - The Group's reporting currency is Hong Kong Dollars, and all transactions for the six months ended June 30, 2025, were denominated in Hong Kong Dollars[76](index=76&type=chunk) - The Group faces no significant foreign exchange risk[76](index=76&type=chunk) [Contingent Liabilities](index=34&type=section&id=Contingent%20Liabilities) The Group had no significant contingent liabilities as of June 30, 2025, and December 31, 2024 - The Group had no significant contingent liabilities as of June 30, 2025, and December 31, 2024[77](index=77&type=chunk) [Events After Reporting Period](index=34&type=section&id=Events%20After%20Reporting%20Period) Post-reporting period, the company proposed a share consolidation (20-for-1) followed by a rights issue (3-for-2) to raise approximately HK$60.7 million for margin financing, money lending, virtual asset license application, and general working capital - The company proposed a share consolidation on the basis of **20 existing shares** for **1 consolidated share** in its issued and unissued share capital[78](index=78&type=chunk) - Subject to approval of the share consolidation, the company proposed a rights issue to raise gross proceeds of up to approximately **HK$60.7 million** by issuing up to **36,546,008 rights shares**[79](index=79&type=chunk) - Net proceeds from the rights issue, approximately **HK$5.3 million**, will be used for virtual license-related matters, **HK$35 million** for margin financing, **HK$15 million** for money lending, and **HK$2.3 million** for enhancing general working capital[81](index=81&type=chunk) [Material Investments](index=36&type=section&id=Material%20Investments) The Group did not acquire or hold any material investments during the review period - The Group did not acquire or hold any material investments during the review period[82](index=82&type=chunk) [Pledge of Assets](index=36&type=section&id=Pledge%20of%20Assets) The Group did not pledge any of its assets as of June 30, 2025, and December 31, 2024 - The Group pledged none of its assets as of June 30, 2025, and December 31, 2024[83](index=83&type=chunk) [Capital Commitments](index=36&type=section&id=Capital%20Commitments) The Group had no significant capital commitments as of June 30, 2025, and December 31, 2024 - The Group had no significant capital commitments as of June 30, 2025, and December 31, 2024[84](index=84&type=chunk) [Other Information](index=37&type=section&id=Other%20Information) Additional disclosures regarding directors' and major shareholders' interests, share transactions, employee policies, and corporate governance [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company and its Associated Corporations](index=37&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, no directors or chief executive held disclosable 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 Executive of the Company held any interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations that were required to be disclosed under Divisions 7 and 8 of Part XV of the SFO[85](index=85&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=37&type=section&id=Directors%27%20Rights%20to%20Acquire%20Shares%20or%20Debentures) No arrangements were made during the six months ended June 30, 2025, for directors or the chief executive to acquire benefits through shares or debentures of the company or its associated corporations - Neither the company nor any of its subsidiaries or associated corporations entered into any arrangements during the six months ended June 30, 2025, enabling directors and the chief executive to acquire benefits through shares, underlying shares, or debentures of the company or its associated corporations[86](index=86&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=37&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Ultimate Vantage Group Limited and its sole owner, Mr. Zeng Wenling, were substantial shareholders, holding approximately 19.87% of the company's issued share capital Substantial Shareholders' Long Positions in Ordinary Shares of the Company (As at June 30, 2025) | Name of Shareholder | Capacity and Nature of Interest | Total Number of Shares | Approximate Percentage of Total Issued Share Capital of the Company (%) | | :--- | :--- | :--- | :--- | | Ultimate Vantage Group Limited | Directly beneficially owned | 96,836,250 | 19.87 | | Mr. Zeng Wenling | Interest of controlled corporation | 96,836,250 | 19.87 | - Ultimate Vantage Group Limited is **100% owned** by Mr. Zeng Wenling[89](index=89&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=38&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%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 six months ended June 30, 2025 (six months ended June 30, 2024: Nil shares)[90](index=90&type=chunk) [Employees and Remuneration Policy](index=39&type=section&id=Employees%20and%20Remuneration%20Policy) The Group had 21 employees as of June 30, 2025, with remuneration policies based on duties, experience, skills, and company performance, offering monthly salaries, discretionary bonuses, and other benefits - As of June 30, 2025, the Group had a total of **21 employees** (June 30, 2024: 18 employees)[91](index=91&type=chunk) - The Group's remuneration policy is determined based on the duties, responsibilities, experience, skills, time commitment, and performance of the directors or senior management, benchmarked against compensation paid by comparable companies[91](index=91&type=chunk) - Other employee benefits include provident fund contributions, medical insurance, and other allowances and benefits, in addition to salaries[91](index=91&type=chunk) [Share Option Scheme](index=39&type=section&id=Share%20Option%20Scheme) The existing share option scheme expired on June 12, 2025, with no further schemes granted or outstanding options as of the interim report date - The existing share option scheme had a term of **10 years** from its adoption date and expired on **June 12, 2025**[92](index=92&type=chunk) - No further share option schemes have been granted since the expiry of the existing scheme, and as of the date of this interim report, no share options have been granted or remain outstanding under the existing scheme[92](index=92&type=chunk) [Corporate Governance](index=39&type=section&id=Corporate%20Governance) The company complied with relevant Listing Rules and the Corporate Governance Code during the review period, ensuring proper regulation of decision-making and business operations - The company complied with Rules 13.13 to 13.16 of Chapter 13 of the Listing Rules, providing no advances to affiliated or associated entities[93](index=93&type=chunk) - During the review year, the company complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited[93](index=93&type=chunk) [Directors' Securities Transactions](index=40&type=section&id=Directors%27%20Securities%20Transactions) The company adopted a code of conduct for directors' securities transactions no less exacting than the Model Code, with all directors confirming compliance and no non-compliance reported - The company adopted a code of conduct for directors' securities transactions with terms no less exacting than the Model Code set out in Appendix 10 of the Listing Rules for Directors' Securities Transactions by Listed Issuers[94](index=94&type=chunk) - Each director acknowledged compliance with the dealing rules during the reporting period and up to the date of this report, with no non-compliance reported to the company during this period[94](index=94&type=chunk) [Competing Interests](index=40&type=section&id=Competing%20Interests) As of June 30, 2025, no directors, substantial shareholders, or their associates had any interests in businesses directly or indirectly competing with the Group's business - As of June 30, 2025, no directors, substantial shareholders, or their respective associates had any interests in businesses that directly or indirectly compete or may compete with the Group's business[95](index=95&type=chunk) [Audit Committee](index=40&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors chaired by Mr. Cheng Man Bun, reviewed the Group's unaudited interim results and confirmed compliance with accounting standards and Listing Rules - The Audit Committee currently comprises **three members**, all of whom are independent non-executive directors, with Mr. Cheng Man Bun serving as Chairman[96](index=96&type=chunk) - The primary responsibilities of the Audit Committee include reviewing and overseeing the company's financial reporting process, the Group's internal control systems, and monitoring continuing connected transactions[96](index=96&type=chunk) - The Audit Committee reviewed the Group's unaudited condensed consolidated results for the six months ended June 30, 2025, confirming their preparation complied with applicable accounting standards, practices adopted by the company, and Listing Rules, with adequate disclosure[96](index=96&type=chunk) [Board of Directors](index=41&type=section&id=Board%20of%20Directors) As of the report date, the Board comprises executive directors Mr. Li Chun Tung (Chairman), Mr. Wang Han (CEO), Ms. Cheung Ka Yee, non-executive director Mr. Lau Chun Hung, and independent non-executive directors Mr. Lau Kei Lik, Mr. Wong Chun Pang, and Mr. Cheng Man Bun - Executive Directors include Mr. Li Chun Tung (Chairman), Mr. Wang Han (Chief Executive Officer) (appointed on June 2, 2025), and Ms. Cheung Ka Yee (appointed on June 2, 2025)[97](index=97&type=chunk) - The Non-executive Director is Mr. Lau Chun Hung[97](index=97&type=chunk) - Independent Non-executive Directors include Mr. Lau Kei Lik, Mr. Wong Chun Pang, and Mr. Cheng Man Bun[97](index=97&type=chunk)

Corporate Information 公司資料 BOARD OF DIRECTORS Executive Directors Mr. KANG Chuang (Chairman) Mr. ZHENG Jingdong Non-Executive Director Ms. LIN Weihuan Independent Non-Executive Directors Dr. ZHANG Baoping Mr. CHEN Shaohua Professor ZHAO Jinbao BOARD COMMITTEES Audit Committee Mr. CHEN Shaohua (Chairperson) Professor ZHAO Jinbao Dr. ZHANG Baoping Remuneration Committee Dr. ZHANG Baoping (Chairperson) Professor ZHAO Jinbao Mr. CHEN Shaohua Nomination Committee Professor ZHAO Jinbao (Chairperson) Mr. CHEN Shao ...

Revenue and Profitability - Revenue for the six months ended June 30, 2025, was HKD 26,026,000, a significant increase from HKD 5,180,000 in the same period of 2024, representing a growth of 401%[2] - Gross profit for the same period was HKD 7,484,000, compared to HKD 3,179,000 in 2024, indicating a gross margin improvement[2] - The company reported a net loss of HKD 43,586,000 for the six months ended June 30, 2025, compared to a profit of HKD 8,121,000 in 2024[2] - The total comprehensive income for the period was HKD 5,306,000, recovering from a loss of HKD 31,957,000 in the previous year[2] - Property sales contributed HKD 20,724,000 to the revenue, while property management income was HKD 4,694,000, compared to HKD 4,390,000 in 2024, indicating an increase of 6.9%[17] - The company recorded a revenue of approximately HKD 26,030,000 for the six months ended June 30, 2025, representing an increase of about 402% compared to HKD 5,180,000 for the same period last year[45] Assets and Liabilities - Non-current assets increased to HKD 1,324,870,000 as of June 30, 2025, up from HKD 1,283,992,000 at the end of 2024[3] - Current assets totaled HKD 812,807,000, slightly up from HKD 801,867,000 in 2024[3] - The company's total liabilities increased to HKD 1,174,668,000, compared to HKD 1,132,326,000 in the previous year[4] - Cash and bank balances decreased to HKD 13,665,000 from HKD 32,760,000 at the end of 2024, indicating a liquidity challenge[3] - The company reported total trade receivables of HKD 2,010,000 as of June 30, 2025, a decrease from HKD 2,844,000 as of December 31, 2024, indicating a reduction of 29.2%[29] - The company’s prepayments, deposits, and other receivables increased to HKD 19,064,000 as of June 30, 2025, compared to HKD 12,476,000 as of December 31, 2024, marking a rise of 52.9%[31] - The company’s construction in progress amounted to HKD 193,815,000 as of June 30, 2025, reflecting a slight increase from HKD 187,330,000 at the beginning of the period[24] - The company’s development properties held at cost increased to HKD 594,424,000 as of June 30, 2025, from HKD 573,263,000 at the beginning of the period, an increase of 3.7%[28] Cash Flow and Financing - The net cash outflow from operating activities was HKD 17,595,000 for the six months ended June 30, 2025, compared to an outflow of HKD 7,641,000 in 2024[7] - The net cash flow from financing activities for the six months ended June 30, 2025, was a negative HKD 2,552,000, contrasting with a positive HKD 8,080,000 in the same period of 2024[8] - The cash and cash equivalents decreased by HKD 6,143,000, resulting in a closing balance of HKD 684,000 as of June 30, 2025, down from HKD 10,260,000 in 2024[8] - The company reported a net cash outflow of HKD 6,143,000 for the period, compared to an outflow of HKD 4,721,000 in 2024, indicating a worsening liquidity position[8] Expenses and Costs - The finance costs for the six months ended June 30, 2025, totaled HKD 545,000, a decrease of 14.6% from HKD 638,000 in the same period of 2024[18] - Employee costs, including directors' remuneration, amounted to HKD 8,911,000, a decrease of 6.8% from HKD 9,558,000 in 2024[19] - The cost of sold properties was HKD 16,111,000 for the six months ended June 30, 2025, with no corresponding cost reported in the same period of 2024[19] - The interest income from banks was HKD 18,000, a significant decrease from HKD 224,000 in the same period of 2024[17] - Employee costs for the six months ended June 30, 2025, were approximately HKD 8,040,000, down from HKD 8,690,000 for the same period in 2024, representing a decrease of about 7.48%[62] Taxation - The company reported a total income tax expense of HKD 6,378,000 for the six months ended June 30, 2025, compared to HKD 1,228,000 for the same period in 2024, representing a significant increase of 420%[21] Shareholder Information - The company recorded a loss attributable to owners of the company of HKD 43.6 million for the six months ended June 30, 2025, compared to a profit of HKD 8.1 million for the same period in 2024, resulting in a basic and diluted loss per share of HKD (1.10) compared to HKD 0.20[23] - The company has not recommended the payment of an interim dividend for the six months ended June 30, 2025, consistent with the previous period[22] - The company has issued and fully paid 3,975,233,406 ordinary shares, with a total capital of HKD 983,266,000 as of June 30, 2025[34] Projects and Developments - The company has commenced the development of the Jinliwan project, with a total construction area of approximately 430,000 square meters, and has obtained a pre-sale permit for the first phase[46] - The company is actively discussing the overall planning of the Tanghai County project with local government authorities due to the designation of the project area as a nature reserve[48] - The total property sales from the Jinbao City project reached approximately HKD 20,720,000 for the six months ending June 30, 2025, with no sales recorded for the same period in 2024[51] - As of June 30, 2025, contract liabilities from pre-sales of the Jinbao City project amounted to approximately HKD 59,000,000, an increase from HKD 52,260,000 as of December 31, 2024[51] - The total land area for the Honghai Bay project is approximately 273,534.2 square meters, but development has been suspended while the company reassesses the project's positioning[52] - The company has made a provision of approximately RMB 14,000,000 (equivalent to about HKD 15,800,000) for claims related to construction costs from the Honghai Bay project[52] - The company is pursuing a claim for shareholder loans amounting to approximately RMB 123,900,000 (equivalent to about HKD 134,200,000) against its joint venture partner in the Heqing project[54] Corporate Governance - The company has confirmed the renewal of property lease agreements for two years starting April 1, 2025[55] - The company fully complied with the corporate governance code as outlined in the listing rules during the six months ended June 30, 2025[69] - The audit committee consists of three independent non-executive directors, chaired by Mr. Zheng Kangqi[72] - The interim results for the six months ending June 30, 2025, have been reviewed by the audit committee[72] - The board of directors includes executive director Mr. Huang Shizai (Chairman) and Ms. Huang Wenxi (CEO)[74]

[Corporate Information](index=3&type=section&id=Corporate%20Information) [Company Details](index=3&type=section&id=Company%20Details) Jingrui Holdings Limited is an investment holding company registered in the Cayman Islands, primarily engaged in property development in China, with Mr. Yan Hao serving as Chairman and CEO - Company Name: **Jingrui Holdings Limited**[7](index=7&type=chunk)[8](index=8&type=chunk) - Executive Directors: Mr. Yan Hao (Chairman and CEO), Mr. Xu Haifeng, Mr. Chen Chao[7](index=7&type=chunk)[8](index=8&type=chunk) - Company Website: **www.jingruis.com**[7](index=7&type=chunk)[8](index=8&type=chunk) [Registered and Business Offices](index=4&type=section&id=Registered%20and%20Business%20Offices) The company's registered office is in the Cayman Islands, with its principal place of business in Shanghai, China, and a main office in Wan Chai, Hong Kong - Registered Office: **One Nexus Way, Camana Bay, Grand Cayman KY1-9005, Cayman Islands**[10](index=10&type=chunk)[11](index=11&type=chunk) - Principal Place of Business and Head Office in China: **8th Floor, Building B, BenQ Business Plaza, No. 207 Songhong Road, Shanghai, China**[10](index=10&type=chunk)[11](index=11&type=chunk) - Principal Place of Business in Hong Kong: **Room 1222, 12th Floor, China Resources Building, 26 Harbour Road, Wan Chai, Hong Kong**[10](index=10&type=chunk)[11](index=11&type=chunk) [Advisers and Stock Information](index=4&type=section&id=Advisers%20and%20Stock%20Information) Company legal advisers include Sidley Austin (Hong Kong law) and Grandall Law Firm (PRC law), with Zhongzheng Tianheng CPAs as auditor and stock code 01862 - Legal Advisers: **Sidley Austin (Hong Kong law), Grandall Law Firm (PRC law), Walkers (Cayman Islands law)**[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) - Auditor: **Zhongzheng Tianheng CPAs Co., Ltd.**[11](index=11&type=chunk)[12](index=12&type=chunk) - Stock Code: **01862**[11](index=11&type=chunk)[12](index=12&type=chunk) - Principal Bankers: **Industrial and Commercial Bank of China (Asia) Limited, The Bank of East Asia, Limited, Bank of China (Hong Kong) Limited, Agricultural Bank of China (Shanghai Branch), China Construction Bank (Shanghai Branch), Bank of China (Shanghai Branch), Bank of Shanghai (Shanghai Branch)**[13](index=13&type=chunk)[14](index=14&type=chunk) [Financial Highlights](index=6&type=section&id=Financial%20Highlights) [Key Financial Indicators](index=6&type=section&id=Key%20Financial%20Indicators) For the six months ended June 30, 2025, revenue significantly decreased by 76.2% to RMB 586.8 million, resulting in a gross loss of RMB 70.2 million and an expanded loss attributable to shareholders of RMB 2,005.8 million Key Financial Indicators for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 586.8 | 2,466.3 | (76.2) | | Gross (Loss)/Profit | (70.2) | 140.2 | (150.1) | | Loss for the Period (including non-controlling interests) | (2,112.1) | (1,571.9) | 34.4 | | Loss Attributable to Equity Holders | (2,005.8) | (1,483.2) | 35.2 | | Core Net Loss (including non-controlling interests) | (2,112.8) | (1,442.2) | 46.5 | | Core Net Loss Attributable to Equity Holders | (2,005.0) | (1,418.4) | 41.4 | [Key Operation Indicators](index=6&type=section&id=Key%20Operation%20Indicators) For the six months ended June 30, 2025, contracted sales amount decreased by 48.5% to RMB 472.0 million, contracted sales area decreased by 42.6%, and average contracted sales price decreased by 10.2% Key Operation Indicators for the Six Months Ended June 30, 2025 | Indicator | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Contracted Sales Amount (RMB million) | 472.0 | 916.1 | (48.5) | | Contracted Sales Area (square meters) | 32,775 | 57,130 | (42.6) | | Average Contracted Sales Price (RMB per square meter) | 14,401 | 16,034 | (10.2) | [Key Ratio Indicators](index=6&type=section&id=Key%20Ratio%20Indicators) As of June 30, 2025, the gross profit margin turned negative 12.0%, and the net debt-to-capital ratio significantly decreased from 2,281% at the end of 2024 to negative 1,097%, primarily due to total equity turning into a deficit Key Ratio Indicators as of June 30, 2025 | Indicator | 2025 (%) | 2024 (%) | | :--- | :--- | :--- | | Gross (Loss)/Profit Margin | (12.0) | 5.7 | | Net Debt-to-Capital Ratio(1) | (1,097) | 2,281 | - The net debt-to-capital ratio is calculated as net debt at period-end divided by total (deficit)/equity, multiplied by 100%[22](index=22&type=chunk) Net debt is calculated as total borrowings less cash and cash equivalents and restricted cash[22](index=22&type=chunk) [Chairman's Statement](index=7&type=section&id=Chairman's%20Statement) [Market Review](index=7&type=section&id=Market%20Review) H1 2025 China's GDP grew 5.3% with policy support; the property market faced deep adjustment, declining sales and new starts, with policies focused on stability and risk prevention - In H1 2025, China's GDP reached **RMB 66,053.6 billion**, growing **5.3%** year-on-year, with the economy continuing its recovery but highly dependent on policy support[24](index=24&type=chunk)[28](index=28&type=chunk) - The real estate market was in a phase of deep adjustment and differentiation, with the new home market stable in core cities but cooling in Q2, and the second-hand market seeing "price-for-volume" transactions[25](index=25&type=chunk)[29](index=29&type=chunk) China Real Estate Market Data for H1 2025 | Indicator | Data | Year-on-Year Change (%) | | :--- | :--- | :--- | | Commercial Property Sales Area | 350 million square meters | (2.9) | | Residential Sales Area | - | (2.6) | | Commercial Property Sales Amount | RMB 3.4 trillion | (3.8) | | Residential Sales Amount | - | (2.8) | | New Housing Starts Area | 332 million square meters | (22.8) | | New Residential Starts Area | 171 million square meters | (21.4) | | Housing Completion Area | 183.85 million square meters | (17.3) | - Real estate policies centered on "stabilizing the market, promoting demand, optimizing supply, and preventing risks," with central government initiatives on urban renewal, high-quality housing, and inventory optimization, and local policies on provident funds, purchase subsidies, and "trade-in" programs[26](index=26&type=chunk)[30](index=30&type=chunk) [Operational Performance](index=8&type=section&id=Operational%20Performance) In H1 2025, Jingrui's contracted sales fell short of expectations, decreasing by 48.5% to RMB 472 million; the company focused on property development, real estate, and property services, actively pursuing domestic and international debt restructuring, and suspending payments on all offshore USD senior notes principal and interest Contracted Sales Data for H1 2025 | Indicator | H1 2025 | H1 2024 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Contracted Sales Amount | Approximately RMB 472 million | RMB 916 million | (48.5) | | Contracted Sales Area | Approximately 32,775 square meters | - | - | | Average Contracted Sales Price | RMB 14,401 per square meter | - | - | - As of June 30, 2025, the Group's land reserve was approximately **1,291,272 square meters**, with no new land projects acquired in H1, focusing on existing project development and delivery[32](index=32&type=chunk)[35](index=35&type=chunk) - The company remains focused on three business segments: property development, real estate, and property services, aiming to recover funds by revitalizing existing assets and selling less efficient self-held projects[33](index=33&type=chunk)[35](index=35&type=chunk) - Offshore USD senior notes debt restructuring has been initiated, with payments of all offshore USD senior notes principal and interest suspended to ensure fair treatment of all creditors[34](index=34&type=chunk)[36](index=36&type=chunk) [Exploring Business Strategies Under the New Model with Practicality and Innovation](index=9&type=section&id=Exploring%20Business%20Strategies%20

Property Management and Development - For the six months ended June 30, 2025, the Group's operations were organized into two reportable segments: property management and property development and investment[9]. - As of June 30, 2025, AOCEAN managed 20 major residential and commercial property projects in the PRC[10]. - The property management segment focuses on providing heating supply, maintenance services, and general management services for various properties[10]. - The Group's property development operations are diversified across the USA, UK, and PRC, indicating a strategic expansion approach[15]. - The Group aims to enhance its geographical diversification through the Culver City project, located within walking distance to the heart of Culver City, Los Angeles[16]. - The Group's strategic focus includes leveraging its property management expertise to support its development projects[10]. - The Santa Monica project has a total site area of approximately 40,615 square feet, with 91% of the commercial area and 100% of the residential area leased out during the Period[15]. - The Culver City project is a 36,319 square feet redevelopment site allowing for 139 residential units, with construction having started in September 2021[15]. - The average rental occupancy for the Santa Monica project indicates strong demand in the market, with plans to lease out all commercial and residential units[15]. Financial Performance - The Group generated revenue of approximately HK$170,723,000 for the six months ended 30 June 2025, a decrease of 3% from HK$178,214,000 for the same period in 2024[25]. - The property management segment reported revenue of approximately HK$94,632,000, slightly up from HK$94,068,000 in the previous year[25]. - The property development and investment segment reported revenue of approximately HK$76,091,000, down from HK$84,146,000 in the prior year, attributed to rental income from Juxon House and Guorui Square Block B[25]. - The Group recorded a profit for the Period of approximately HK$1,402,000, significantly up from HK$282,000 in the same period last year, mainly due to reduced employee benefit expenses and finance costs[25]. - Total comprehensive income for the period was HK$57,104,000, compared to a loss of HK$61,899,000 in the previous year[114]. - Profit attributable to shareholders for the six months ended June 30, 2025, was HK$2,091,000 compared to HK$282,000 for the same period in 2024, representing a significant increase[185]. - Earnings per share for shareholders of the Company rose to HK$0.07 from HK$0.01, indicating a substantial improvement[112]. Assets and Liabilities - As of 30 June 2025, total assets increased to approximately HK$5,678,773,000 from HK$5,423,471,000 as of 31 December 2024[24]. - Total liabilities rose to approximately HK$3,489,159,000 from HK$3,290,961,000, resulting in a gearing ratio of 120.4% compared to 110.7% in the previous period[24]. - The outstanding balance of bank and other borrowings was approximately HK$2,794,813,000, an increase from HK$2,605,486,000 as of 31 December 2024[26]. - The Group had available cash and bank balances of approximately HK$99,422,000, down from HK$193,151,000 at the end of 2024[27]. - Investment properties and properties held for sale pledged as collateral amounted to approximately HK$4,791,924,000 as of June 30, 2025, up from approximately HK$4,603,293,000 as of December 31, 2024[41]. - The Group had net current liabilities of HK$289 million, including bank and other borrowings repayable within one year of HK$784 million[132]. Shareholder Information - A total of 30,000,000 share options were granted under the Share Option Scheme, representing approximately 0.9% of the total number of issued shares[49]. - The total number of shares available for issue under the Share Option Scheme remained at 319,937,398, representing 10% of the total number of issued shares[50]. - Wintime Company Limited holds 1,434,421,537 shares, representing 44.56% of the total issued shares[74]. - The interests of Widewealth Company Limited in shares are identical to those of Wintime Company Limited, reflecting the same percentages[74]. - The total interests of Wintime Company Limited in underlying shares is 1,322,317,340, which is 41.07% of the total issued shares[74]. Cash Flow and Financing Activities - For the six months ended June 30, 2025, the net cash flows used in operating activities amounted to HK$58,158,000, an increase of 31.0% compared to HK$44,326,000 for the same period in 2024[121]. - Cash flows from investing activities showed a significant increase in net cash used, totaling HK$133,784,000, compared to HK$15,863,000 in the previous year, reflecting a rise of 742.0%[121]. - The net cash flows from financing activities were HK$93,477,000, a substantial increase from HK$782,000 in the prior period[123]. - The company reported a net decrease in cash and cash equivalents of HK$98,465,000, compared to a decrease of HK$59,407,000 in the same period last year[123]. Compliance and Governance - The Company complied with the Corporate Governance Code throughout the period, except for the deviation of having the same individual serve as both chairman and chief executive officer[99][100]. - The audit committee, comprising three independent non-executive Directors, reviewed the Group's interim results for the period[102]. - The Company maintained sufficient public float as required under the Listing Rules throughout the period[103]. Receivables and Impairment - Total gross trade and lease receivables as of June 30, 2025, amounted to HK$202,791,000, up from HK$180,719,000 as of December 31, 2024[193]. - The provision for expected credit losses is based on historical credit loss experience, with impairment analysis conducted at each reporting date[200]. - The overall trend indicates a growing receivables portfolio, with a focus on managing credit risk through impairment provisions[200].

目錄 | | 頁次 | | --- | --- | | 公司資料 | 2 | | 未經審核綜合損益表 | 3 | | 未經審核綜合全面收益表 | 4 | | 未經審核綜合財務狀況表 | 5 | | 未經審核綜合權益變動表 | 7 | | 未經審核簡明綜合現金流量表 | 8 | | 未經審核中期財務報告附註 | 9 | | 管理層討論及分析 | 31 | | 其他資料 | 48 | 1 企展控股有限公司 2025年中期報告 公司資料 香港主要營業地點 香港灣仔 分域街18號╱告士打道46號 捷利中心 11樓1105室 董事會 執行董事 于輝 （行政總裁） 李卓洋 獨立非執行董事 蔡金良 陳鴻先 陳國宏 公司秘書 陳婉縈 授權代表 李卓洋 陳婉縈 審核委員會 蔡金良 （委員會主席） 陳鴻先 陳國宏 薪酬委員會 陳鴻先 （委員會主席） 蔡金良 李卓洋 提名委員會 陳鴻先 （委員會主席） 蔡金良 李卓洋 核數師 國衛會計師事務所有限公司 註冊辦事處 Cricket Square Hutchins Drive P. O. Box 2681 Grand Cayman KY1-1111 Cayman Islands 主要股 ...

[Company Information](index=3&type=section&id=Company%20Information) [Company Information Overview](index=3&type=section&id=Company%20Information%20Overview) This chapter provides an overview of Huashi Group Holdings Limited's corporate structure, including board members, committee composition, registered offices, and listing information - The Board of Directors includes Executive Directors Mr. Chen Jicheng (Chairman and CEO), Ms. Chen Jizhen (Vice Chairman, appointed on March 27, 2025), Mr. Zhang Bei, Ms. Xue Yuchun, Ms. Wang Shujin (retired on June 27, 2025), and Independent Non-executive Directors Dr. He Weifeng, Mr. Peng Litang, Mr. Li Guangdou, and Mr. Hou Siming (resigned on June 27, 2025)[5](index=5&type=chunk) - The company has an Audit Committee (Chairman: Dr. He Weifeng), a Remuneration Committee (Chairman: Mr. Peng Litang), and a Nomination Committee (Chairman: Mr. Chen Jicheng)[5](index=5&type=chunk) - The company was listed on the Stock Exchange on **November 10, 2023**, with stock code **1111**[7](index=7&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) [Financial Highlights Overview](index=5&type=section&id=Financial%20Highlights%20Overview) This chapter outlines Huashi Group's key financial performance and position for the six months ended June 30, 2025, showing significant growth in revenue, gross profit, and profit for the period, alongside an expanded asset base but a substantial increase in current liabilities Financial Performance for the Six Months Ended June 30 (RMB million) | Indicator | 2025 (Unaudited) (RMB million) | 2024 (Unaudited) (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 155.4 | 123.2 | 26.1% | | Gross Profit | 108.0 | 75.0 | 44.0% | | Profit Before Income Tax | 65.0 | 44.1 | 47.4% | | Profit for the Period | 53.7 | 35.9 | 49.6% | | Adjusted Net Profit | 53.7 | 35.9 | 49.6% | Financial Position (RMB million) | Indicator | As at June 30, 2025 (Unaudited) (RMB million) | As at December 31, 2024 (Audited) (RMB million) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 101.2 | 60.3 | 67.8% | | Current Assets | 581.9 | 462.4 | 25.8% | | Current Liabilities | 265.6 | 150.7 | 76.2% | | Non-current Liabilities | 20.5 | 28.7 | (28.6)% | | Total Equity Attributable to Owners of the Company | 397.0 | 343.2 | 15.7% | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=6&type=section&id=Business%20Review) Huashi Group maintained stable operations in H1 2025, strengthening professional services, consolidating partnerships, and launching its first AI digital product, 'Huashi•Flash BAO', to drive innovation and market expansion - The Group maintained stable overall operations, continuously strengthening professional service skills and consolidating business cooperation relationships to provide high-quality one-stop services to clients[11](index=11&type=chunk) - The Group deepened technological innovation and accelerated AI business incubation, with its first AI digital product 'Huashi•Flash BAO' initiating internal testing in July, featuring IP image customization, AIGC video generation, and digital human interaction, and debuting at the '2025 China Cultural Tourism Industry Expo' in September[12](index=12&type=chunk) - During the reporting period, the Group signed strategic cooperation agreements with a leading domestic steel structure enterprise, a local government in Hubei Province, and several other companies, covering 'new infrastructure + AI media', digital economy industry incubation, urban brand IP construction, smart cultural tourism platform development, digital human IP customization, and AIGC video generation[14](index=14&type=chunk) - During the reporting period, the Group recorded total revenue of **RMB 155.4 million** and signed contracts totaling **RMB 715.1 million** with clients, of which **96.2%** of services have been provided[15](index=15&type=chunk) [Business Summary](index=6&type=section&id=Business%20Summary) As a brand, advertising, and marketing service provider in Hubei Province, China, Huashi Group maintained stable operations in H1 2025, deepening technological innovation, accelerating AI business incubation with its first AI digital product 'Huashi•Flash BAO', and signing strategic cooperation agreements to achieve steady profitability growth - The Group is a brand, advertising, and marketing service provider in Hubei Province, China, offering full value chain services from market research to project execution[10](index=10&type=chunk) - The global economy remains under pressure, with global GDP growth revised down to **2.3%** in 2025; the domestic economy is stable and improving, with China's GDP growing **5.3%** year-on-year in H1 and total retail sales of consumer goods increasing **5.0%** year-on-year[10](index=10&type=chunk) - The Group launched its first AI digital product 'Huashi•Flash BAO', featuring IP image customization, AIGC video generation, and digital human interaction, applicable in smart government and digital cultural tourism scenarios[12](index=12&type=chunk) [Brand Services](index=7&type=section&id=Brand%20Services) The Group deepened its brand services, leveraging AI technology to enhance creative planning and marketing content efficiency, and exploring a 'government + enterprise + scenic area' cooperation model to promote urban tourism transformation, with brand service revenue growing **5.1%** year-on-year to **RMB 52.6 million** during the reporting period - Brand service revenue was **RMB 52.6 million**, representing a year-on-year increase of **5.1%**[16](index=16&type=chunk) - The Group uses AI technology to drive innovation in brand services, focusing on improving creative planning and marketing content efficiency[17](index=17&type=chunk) - Exploring a 'government + enterprise + scenic area' cooperation model, the Group promotes urban tourism transformation towards 'three-dimensional, intelligent, and all-encompassing' approaches, successfully facilitating the inclusion of Guifeng Mountain Scenic Area in Macheng, Huanggang City, Hubei Province, as a National 5A-level tourist attraction[17](index=17&type=chunk) [Online Media Advertising Services](index=7&type=section&id=Online%20Media%20Advertising%20Services) The Group provides online media advertising services, enhancing precise targeting and data management capabilities through optimized advertising strategies and digital systems, and actively exploring AI digital human technology applications, with revenue for this business decreasing **10.8%** year-on-year to **RMB 17.8 million** during the reporting period - Online media advertising service revenue was **RMB 17.8 million**, representing a year-on-year decrease of **10.8%**[18](index=18&type=chunk) - By optimizing advertising strategies and digital systems, the Group continuously enhances its capabilities in precise targeting, data management and analysis, and automated monitoring and evaluation[19](index=19&type=chunk) - Leveraging big data and AI technology for multi-dimensional data collection, processing, and analysis, the Group actively explores AI digital human technology and its application prospects[19](index=19&type=chunk) [Event Execution and Production Services](index=8&type=section&id=Event%20Execution%20and%20Production%20Services) The Group provides event execution and production services, integrating traditional and digital interactive marketing advantages, and enhancing marketing effectiveness through a media resource matrix and customized services, with revenue for this business increasing **13.5%** year-on-year to **RMB 31.0 million** during the reporting period - Event execution and production service revenue was **RMB 31.0 million**, representing a year-on-year increase of **13.5%**[20](index=20&type=chunk) - Integrating the advantages of traditional marketing and digital interactive marketing, the Group deeply explores the potential of mixed-scenario marketing models, precisely reaching potential users through the internet[21](index=21&type=chunk) - Successfully hosted the 'Caidian District 2025 Cultural Tourism Consumption Season Launch Ceremony', enhancing the fun of visits through smart interactive devices such as AI check-in points[21](index=21&type=chunk) [Advertising Placement Services](index=8&type=section&id=Advertising%20Placement%20Services) The Group provides advertising placement services, continuously improving advertising efficiency and return on investment through diversified placement strategies and an expanded list of partners, with revenue for this business significantly increasing **135.6%** year-on-year to **RMB 43.9 million** during the reporting period - Advertising placement service revenue was **RMB 43.9 million**, representing a year-on-year increase of **135.6%**[22](index=22&type=chunk) - Clients adopt diversified placement strategies through the platform for different target audiences, improving media operation efficiency and return on investment[24](index=24&type=chunk) - Actively expanding its list of partners and integrating media resources with different characteristics to meet personalized marketing needs and promote sustainable business development[24](index=24&type=chunk) [Business Outlook](index=9&type=section&id=Business%20Outlook) Huashi Group will closely monitor industry trends and consolidate its market position, with strategic priorities including strengthening AI technology R&D and application, enhancing industry competitiveness, expanding business layout (including the Yangtze River Delta, Greater Bay Area, and overseas markets), reinforcing budget control for cost reduction and efficiency improvement, and building a professional talent pipeline to drive overall revenue growth - Strengthen AI technology R&D and application, utilizing AI to reshape the media business matrix and explore more AI-empowered commercial scenarios[25](index=25&type=chunk) - Enhance industry competitiveness, continuously delivering high-quality projects, strengthening brand image, and attracting more strategic cooperation opportunities[25](index=25&type=chunk) - Expand business layout, consolidating advantages in the Hubei region while accelerating business expansion and office establishment in economically active areas such as the Yangtze River Delta and Greater Bay Area, and exploring overseas business opportunities[25](index=25&type=chunk) - Strengthen budget control for cost reduction and efficiency improvement, focusing on core businesses, optimizing resource allocation, and gradually promoting new technology coverage across business processes to reduce labor costs[25](index=25&type=chunk) - Build a professional talent pipeline, recruiting technical and marketing talents, and improving training systems and incentive mechanisms[25](index=25&type=chunk) [Financial Review](index=10&type=section&id=Financial%20Review) Huashi Group's total revenue increased **26.1%** year-on-year to **RMB 155.4 million** during the reporting period, with significant improvements in gross profit and net profit margin; business segments showed mixed performance, with strong growth in advertising placement and rebate businesses, while online media advertising services slightly decreased; cash and cash equivalents decreased primarily due to increased software platform development expenditures, and the gearing ratio slightly increased - Total revenue increased by **26.1%** from **RMB 123.2 million** for the six months ended June 30, 2024, to **RMB 155.4 million** for the reporting period[26](index=26&type=chunk) - Profit for the period was **RMB 53.7 million**, with a net profit margin of **34.6%**, an increase from **29.1%** in the same period last year[36](index=36&type=chunk) - As at June 30, 2025, cash and cash equivalents were **RMB 80.7 million**, a decrease of **RMB 19.7 million** from **RMB 100.4 million** as at December 31, 2024, primarily due to increased software platform development expenditures[33](index=33&type=chunk) [Revenue Breakdown by Service Type](index=10&type=section&id=Revenue%20Breakdown%20by%20Service%20Type) During the reporting period, the Group's total revenue increased **26.1%** year-on-year to **RMB 155.4 million**, with brand services, event execution and production services, advertising placement services, and media partner rebate businesses all achieving growth, with advertising placement services showing the largest increase, while online media advertising services revenue slightly decreased Revenue Breakdown by Service Type (RMB thousand) | Service Type | 2025 (RMB thousand) (Unaudited) | % of Total Revenue | 2024 (RMB thousand) (Unaudited) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Brand Services | 52,579 | 33.8 | 50,004 | 40.6 | | Event Execution and Production Services | 31,037 | 20.0 | 27,345 | 22.2 | | Advertising Placement Services | 43,911 | 28.3 | 18,635 | 15.1 | | Rebates from Media Partners | 10,038 | 6.5 | 7,319 | 5.9 | | Online Media Advertising Services | 17,790 | 11.4 | 19,942 | 16.2 | | **Total** | **155,355** | **100** | **123,245** | **100** | - Revenue from 'Advertising Placement Services' increased significantly year-on-year, driving a synchronous increase in revenue from 'Rebates from Media Partners' business[27](index=27&type=chunk) - Revenue from 'Online Media Advertising Services' slightly decreased year-on-year, primarily due to an increased proportion of services provided to related advertising agencies, with direct costs for this business deducted from total revenue on a net basis[27](index=27&type=chunk) [Cost of Services](index=11&type=section&id=Cost%20of%20Services) During the reporting period, cost of services decreased **1.9%** year-on-year to **RMB 47.4 million**, primarily because direct costs for services provided to related advertising agencies in online media advertising services were deducted from total revenue on a net basis - Cost of services decreased from **RMB 48.3 million** in the same period of 2024 to **RMB 47.4 million** in the reporting period[28](index=28&type=chunk) - The decrease was primarily due to an increased proportion of services provided to related advertising agencies in the online media advertising services business, with their direct costs deducted from total revenue on a net basis[28](index=28&type=chunk) [Gross Profit and Gross Profit Margin](index=11&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) During the reporting period, gross profit increased **44.0%** year-on-year to **RMB 108.0 million**, and the gross profit margin improved from **60.8%** to **69.5%**, mainly attributable to significant revenue growth from advertising placement services, media partner rebates, and online media advertising services recognized on a net basis - Gross profit increased by **44.0%** from **RMB 75.0 million** in the same period of 2024 to **RMB 108.0 million** in the reporting period[29](index=29&type=chunk) - Gross profit margin increased from **60.8%** in the same period of 2024 to **69.5%** in the reporting period[29](index=29&type=chunk) - The increase in gross profit and gross profit margin was primarily due to significant revenue growth from advertising placement services, rebates from media partners, and online media advertising services recognized on a net basis[29](index=29&type=chunk) [Other Income and Gains, Net](index=11&type=section&id=Other%20Income%20and%20Gains%2C%20Net) During the reporting period, other income and gains, net, decreased **69.9%** year-on-year to **RMB 0.4 million**, primarily due to lower interest income and exchange gains, and the absence of government grants in the current period - Other income and gains, net, decreased from **RMB 1.2 million** in the same period of 2024 to **RMB 0.4 million** in the reporting period[30](index=30&type=chunk) - The decrease was primarily due to lower interest income and exchange gains, as well as the absence of government grants during the reporting period[30](index=30&type=chunk) [Selling and Marketing Expenses](index=11&type=section&id=Selling%20and%20Marketing%20Expenses) During the reporting period, selling and marketing expenses increased **55.9%** year-on-year to **RMB 9.2 million**, primarily due to an increase in sales and media operations team employees as a result of business expansion, and higher depreciation expenses for office equipment - Selling and marketing expenses increased from **RMB 5.9 million** in the same period of 2024 to **RMB 9.2 million** in the reporting period[31](index=31&type=chunk) - The increase was primarily due to an increase in the number of employees in the sales team and media operations team as a result of business expansion, and higher depreciation expenses for office equipment[31](index=31&type=chunk) [Administrative Expenses](index=11&type=section&id=Administrative%20Expenses) During the reporting period, administrative expenses increased **21.5%** year-on-year to **RMB 24.2 million**, primarily due to an increase in administrative management and R&D team employees as a result of business expansion - Administrative expenses increased from **RMB 19.9 million** in the same period of 2024 to **RMB 24.2 million** in the reporting period[32](index=32&type=chunk) - The increase was primarily due to an increase in the number of employees in the administrative management team and R&D team as a result of business expansion[32](index=32&type=chunk) [Liquidity and Capital Resources](index=11&type=section&id=Liquidity%20and%20Capital%20Resources) As at June 30, 2025, the Group's cash and cash equivalents were **RMB 80.7 million**, a decrease of **RMB 19.7 million** from the end of 2024, mainly due to increased software platform development expenditures; the Group primarily funds its operations through operating cash flow and borrowings - As at June 30, 2025, cash and cash equivalents were **RMB 80.7 million**, a decrease of **RMB 19.7 million** from **RMB 100.4 million** as at December 31, 2024[33](index=33&type=chunk) - The decrease in cash was primarily due to increased software platform development expenditures[33](index=33&type=chunk) - The Group primarily funds its operating needs through cash flows from operating activities and borrowings[34](index=34&type=chunk) [Income Tax Expense](index=12&type=section&id=Income%20Tax%20Expense) During the reporting period, income tax expense increased **37.6%** year-on-year to **RMB 11.3 million**, primarily due to a smaller proportion of business occurring in subsidiaries enjoying a preferential income tax rate of **15%** compared to the same period last year - Income tax expense increased from **RMB 8.2 million** in the same period of 2024 to **RMB 11.3 million** in the reporting period[35](index=35&type=chunk) - The increase was primarily due to a smaller proportion of the Group's subsidiaries applying the preferential income tax rate of **15%** compared to the same period last year[35](index=35&type=chunk) [Profit for the Period](index=12&type=section&id=Profit%20for%20the%20Period) Profit for the period increased **49.6%** year-on-year to **RMB 53.7 million**, with the net profit margin improving from **29.1%** to **34.6%** - Profit for the period was **RMB 53.7 million**, representing a **49.6%** increase from **RMB 35.9 million** in the same period of 2024[36](index=36&type=chunk) - The net profit margin improved from **29.1%** in the same period of 2024 to **34.6%** in the reporting period[36](index=36&type=chunk) [Capital Structure](index=12&type=section&id=Capital%20Structure) As at June 30, 2025, the company's authorized share capital and issued share capital remained unchanged at **USD 50,000,000** and **USD 38,532,500**, respectively - As at June 30, 2025, the company's authorized share capital was **USD 50,000,000**, and its issued share capital was **USD 38,532,500**[37](index=37&type=chunk) - There was no change in the company's authorized and issued share capital during the reporting period[37](index=37&type=chunk) [Gearing Ratio](index=12&type=section&id=Gearing%20Ratio) As at June 30, 2025, the Group's gearing ratio increased from **34.3%** at the end of 2024 to **35.5%**, primarily due to an increase in total bank borrowings - As at June 30, 2025, the Group's total borrowings were **RMB 132.9 million**[38](index=38&type=chunk) - The gearing ratio increased from **34.3%** as at December 31, 2024, to **35.5%** as at June 30, 2025[38](index=38&type=chunk) - The increase in the gearing ratio was primarily due to an increase in the Group's total bank borrowings during the reporting period[38](index=38&type=chunk) [Pledged Assets](index=12&type=section&id=Pledged%20Assets) As at June 30, 2025, the Group had no pledged assets - As at June 30, 2025, the Group had no pledged assets[39](index=39&type=chunk) [Foreign Exchange Risk Management](index=12&type=section&id=Foreign%20Exchange%20Risk%20Management) The Group's operations are primarily conducted and settled in RMB in China, with foreign exchange risk being manageable, and no hedging activities were undertaken during the reporting period - The Group's operations are primarily conducted in China, with most transactions denominated and settled in RMB[40](index=40&type=chunk) - The Group will closely monitor foreign exchange risks and take measures to ensure risks are manageable when necessary[40](index=40&type=chunk) - During the reporting period, the Group did not use any financial instruments for hedging purposes[40](index=40&type=chunk) [Employees](index=13&type=section&id=Employees) As at June 30, 2025, the Group had **242** full-time employees, with total staff costs increasing **20.7%** year-on-year to **RMB 10.5 million** - As at June 30, 2025, the Group had **242** full-time employees, all located in China[42](index=42&type=chunk) - During the reporting period, total staff costs (including directors' emoluments) were **RMB 10.5 million**, an increase of **20.7%** from **RMB 8.7 million** in the same period of 2024[42](index=42&type=chunk) [Capital Expenditures](index=13&type=section&id=Capital%20Expenditures) Capital expenditures significantly increased to **RMB 44.5 million** during the reporting period, primarily for software platform development, funded by internal resources and bank borrowings - Capital expenditures increased from **RMB 5.6 million** in the same period of 2024 to **RMB 44.5 million** in the reporting period[43](index=43&type=chunk) - The increase was primarily due to increased software platform development expenditures[43](index=43&type=chunk) - The Group primarily funds its capital expenditures through internal resources and bank borrowings[43](index=43&type=chunk) [Contingent Liabilities](index=13&type=section&id=Contingent%20Liabilities) As at June 30, 2025, the Group had no significant contingent liabilities - As at June 30, 2025, the Group had no significant contingent liabilities[44](index=44&type=chunk) [Significant Acquisitions, Disposals of Subsidiaries, Associates and Joint Ventures, and Material Investments](index=13&type=section&id=Significant%20Acquisitions%2C%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures%2C%20and%20Material%20Investments) During the reporting period, the Group had no significant acquisitions, disposals, or holdings of material investments - During the reporting period, the Group had no significant acquisitions or disposals of subsidiaries, associates, and joint ventures, and held no material investments[45](index=45&type=chunk) [Use of Net Proceeds from Global Offering](index=13&type=section&id=Use%20of%20Net%20Proceeds%20from%20Global%20Offering) The company's global offering generated net proceeds of approximately **HKD 72.1 million**, with details on their specific use to be disclosed in the 'Implementation Plan' subsection of the 'Corporate Governance and Other Information' section - The company offered **125,000,000** shares in its global offering at an issue price of **HKD 1.04** per share, receiving net proceeds of approximately **HKD 72.1 million**[46](index=46&type=chunk) - Details on the use of net proceeds are set out in the 'Implementation Plan' subsection within the 'Corporate Governance and Other Information' section of this report[47](index=47&type=chunk) [Future Plans for Material Investments or Capital Assets](index=13&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the date of this report, the Group has no detailed future plans for any material investments or capital assets - As of the date of this report, the Group has no detailed future plans for any material investments or capital assets[48](index=48&type=chunk) [Events After Reporting Period](index=13&type=section&id=Events%20After%20Reporting%20Period) There were no significant events after the reporting period up to the date of this report - There were no significant events after the reporting period up to the date of this report[49](index=49&type=chunk) [Interim Dividend](index=13&type=section&id=Interim%20Dividend) The Board of Directors recommends not declaring any interim dividend for the reporting period - The Board of Directors recommends not declaring any interim dividend for the reporting period[50](index=50&type=chunk) [Corporate Governance and Other Information](index=14&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance Practices](index=14&type=section&id=Corporate%20Governance%20Practices) Huashi Group is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code, complying with all applicable code provisions during the reporting period, except for deviations regarding directors' legal liability insurance and the non-segregation of Chairman and CEO roles; the Board believes the current management structure is effective and will continue to review governance practices - The company has adopted the Corporate Governance Code and complied with all applicable code provisions during the reporting period, except for deviations from code provision C.1.8 (directors' legal liability insurance) and C.2.1 (segregation of Chairman and CEO roles)[51](index=51&type=chunk) - Mr. Chen Jicheng serves concurrently as Chairman and CEO, and the Board believes this management structure is effective for the Group's business operations and establishes sufficient checks and balances[52](index=52&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=14&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) Huashi Group has adopted the Model Code set out in Appendix C3 of the Listing Rules as its own code of conduct for securities transactions by all directors and relevant employees, and each director has confirmed compliance with the Model Code's standard requirements during the reporting period - The Group has adopted the Model Code set out in Appendix C3 of the Listing Rules as its own code of conduct for securities transactions by all directors and relevant employees[54](index=54&type=chunk) - Following specific inquiries with all directors, each director has confirmed compliance with the standard requirements of the Model Code throughout the reporting period[54](index=54&type=chunk) [Independent Non-executive Directors](index=14&type=section&id=Independent%20Non-executive%20Directors) Huashi Group has complied with Listing Rules 3.10 and 3.10A regarding the appointment of independent non-executive directors, ensuring at least one-third of the Board comprises such directors, with at least one possessing appropriate professional qualifications or expertise in accounting or related financial management - The company has complied with Listing Rules 3.10 and 3.10A regarding the appointment of independent non-executive directors[55](index=55&type=chunk) [Audit Committee](index=15&type=section&id=Audit%20Committee) Huashi Group's Board of Directors has established an Audit Committee in accordance with the Listing Rules and adopted written terms of reference; the committee, comprising three independent non-executive directors with Dr. He Weifeng as chairman possessing appropriate professional qualifications, has reviewed the Group's unaudited condensed consolidated financial statements for the reporting period - The Audit Committee comprises three independent non-executive directors (Dr. He Weifeng, Mr. Peng Litang, Mr. Li Guangdou), with Chairman Dr. He Weifeng possessing appropriate professional qualifications[57](index=57&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the reporting period and considers them to have been prepared in compliance with applicable Listing Rules[78](index=78&type=chunk) [Use of Net Proceeds from Global Offering](index=15&type=section&id=Use%20of%20Net%20Proceeds%20from%20Global%20Offering) Huashi Group's global offering generated net proceeds of approximately **HKD 72.14 million**, with **HKD 43.61 million** utilized as of June 30, 2025; funds for strengthening data analytics and expanding online media advertising services have been fully deployed, while portions for expanding geographical coverage (establishing Beijing and Shanghai offices) and enhancing brand awareness/marketing efforts remain unutilized, expected to be fully deployed by December 31, 2025 - The company's global offering generated net proceeds of approximately **HKD 72.14 million**[58](index=58&type=chunk) - As at June 30, 2025, the total amount of proceeds utilized was **HKD 43.61 million**, with **HKD 28.53 million** remaining unutilized[63](index=63&type=chunk) [Implementation Plan](index=15&type=section&id=Implementation%20Plan) As of June 30, 2025, **HKD 43.61 million** of the **HKD 72.14 million** net proceeds from the global offering has been utilized; funds for strengthening data analytics and expanding online media advertising services have been fully deployed, while portions for expanding geographical coverage (establishing Beijing and Shanghai offices) and enhancing brand awareness/marketing efforts remain unutilized, expected to be fully deployed by December 31, 2025 Implementation Plan for Use of Global Offering Proceeds (HKD million) | Business Strategy | Total Amount (HKD million) | % | Amount Used as at December 31, 2024 (HKD million) | Used During Reporting Period (HKD million) | Amount Unused as at June 30, 2025 (HKD million) | Expected Timeframe for Utilizing Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Strengthen data analytics capabilities and further enhance brand services | 22.06 | 30.6 | 22.06 | – | – | – | | II. Expand online media advertising services | 14.91 | 20.7 | 14.91 | – | – | – | | III. Expand our geographical coverage of services | 19.23 | 26.6 | – | – | 19.23 | Before December 31, 2025 | | IV. Enhance our brand awareness and increase marketing efforts | 9.70 | 13.4 | 1.42 | 0.02 | 8.26 | Before December 31, 2025 | | V. Working capital | 6.24 | 8.7 | 3.64 | 1.56 | 1.04 | Before December 31, 2025 | | **Total** | **72.14** | **100.0** | **42.03** | **1.58** | **28.53** | | - Funds for strengthening data analytics capabilities and expanding online media advertising services have been fully utilized[59](index=59&type=chunk)[60](index=60&type=chunk) - The **HKD 19.23 million** for expanding geographical coverage (establishing Beijing and Shanghai offices) remains unutilized and is expected to be used by December 31, 2025[62](index=62&type=chunk)[63](index=63&type=chunk) [Changes in Information of Directors and Chief Executive](index=19&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Chief%20Executive) During and up to the date of this report, changes occurred in the information of Huashi Group's directors and chief executive, including Ms. Xue Yuchun's appointment as a subsidiary director and financial controller, Ms. Chen Jizhen's appointment to the Remuneration Committee, and an adjustment to Mr. Chen Jicheng's director's emoluments - Ms. Xue Yuchun was appointed as a director and financial controller of E-Dong Shuju (Hubei) Internet Technology Co., Ltd., a subsidiary of the Group, effective July 31, 2025[66](index=66&type=chunk) - Ms. Chen Jizhen was appointed as a member of the Remuneration Committee, effective August 29, 2025[66](index=66&type=chunk) - Mr. Chen Jicheng's director's emoluments were adjusted from **HKD 360,000** per annum to **HKD 1,000,000** per annum[66](index=66&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=20&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20Any%20Associated%20Corporation) As at June 30, 2025, Huashi Group's directors and chief executive held interests in the company's shares; Mr. Chen Jicheng held **64.40%** of the company's shares through a controlled corporation, and Ms. Xue Yuchun held **0.85%** through a controlled corporation; Mr. Chen Jicheng also beneficially owned **100%** of the equity of associated corporation Jiayi Culture [Interests in Shares and Underlying Shares of the Company](index=20&type=section&id=Interests%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As at June 30, 2025, Mr. Chen Jicheng held **64.40%** of the company's shares through Jiayi Culture, and Ms. Xue Yuchun held **0.85%** through Hubei Jiaying Culture Directors'/Chief Executive's Interests in Shares of the Company | Name of Director/Chief Executive | Capacity/Nature of Interest | Number of Shares Interested | Approximate % of Total Shares of the Company | | :--- | :--- | :--- | :--- | | Mr. Chen Jicheng | Interest of controlled corporation | 496,334,398(L) | 64.40% | | Ms. Xue Yuchun | Interest of controlled corporation | 6,530,750(L) | 0.85% | - Mr. Chen Jicheng beneficially owns the entire issued share capital of Jiayi Culture Media Co., Ltd., which directly holds **64.40%** of the company's issued share capital[67](index=67&type=chunk) - Ms. Xue Yuchun beneficially owns the entire issued share capital of Hubei Jiaying Culture Media Co., Ltd., which directly holds **0.85%** of the company's issued share capital[67](index=67&type=chunk) [Interests in Associated Corporations of the Company](index=21&type=section&id=Interests%20in%20Associated%20Corporations%20of%20the%20Company) As at June 30, 2025, Mr. Chen Jicheng beneficially owned **100%** of the equity of associated corporation Jiayi Culture Directors'/Chief Executive's Interests in Associated Corporations of the Company | Name of Director/Chief Executive | Name of Associated Corporation | Capacity/Nature of Interest | Number of Shares Interested | % of Issued Share Capital of the Associated Corporation | | :--- | :--- | :--- | :--- | :--- | | Mr. Chen Jicheng | Jiayi Culture | Beneficial owner | 1(L) | 100% | [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=21&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As at June 30, 2025, Huashi Group's substantial shareholders and their holdings were as follows: Jiayi Culture held **64.40%** of the company's shares, Yuanjin Culture (wholly owned by Wang Shujin) held **5.55%**, and Youxin Capital (wholly owned by Nie Xing) held **5.03%** Substantial Shareholders' Interests in Shares of the Company | Name of Shareholder | Capacity/Nature of Interest | Number of Shares Interested | Approximate % of Total Shares of the Company | | :--- | :--- | :--- | :--- | | Jiayi Culture | Beneficial owner | 496,334,398(L) | 64.40% | | Wang Shujin | Interest of controlled corporation | 42,746,550(L) | 5.55% | | Yuanjin Culture Media Co., Ltd. | Beneficial owner | 42,746,550(L) | 5.55% | | Nie Xing | Interest of controlled corporation | 38,739,000(L) | 5.03% | | Youxin Capital Co., Ltd. | Beneficial owner | 38,739,000(L) | 5.03% | - Jiayi Culture is wholly owned by Mr. Chen Jicheng, Yuanjin Culture is wholly owned by Ms. Wang Shujin, and Youxin Capital is wholly owned by Mr. Nie Xing[75](index=75&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=22&type=section&id=Directors%27%20Rights%20to%20Acquire%20Shares%20or%20Debentures) During the reporting period, neither Huashi Group nor its subsidiaries entered into any arrangements enabling directors to benefit from acquiring shares or debentures of the company or other corporations, nor were any rights granted to directors or their spouses/children to subscribe for the company's equity or debt securities - During the reporting period, neither the company nor its subsidiaries entered into any arrangements enabling directors to benefit from acquiring shares or debentures of the company or any other corporation[72](index=72&type=chunk) - No director or their spouse or children under 18 years of age was granted any right to subscribe for equity or debt securities of the company or any other corporation, nor had exercised any such rights[72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither Huashi Group nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and as at June 30, 2025, the company held no 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[73](index=73&type=chunk) - As at June 30, 2025, the company held no treasury shares[73](index=73&type=chunk) [Share Option Scheme](index=22&type=section&id=Share%20Option%20Scheme) Huashi Group adopted a share option scheme on October 9, 2023, but no share options were granted under the scheme from its adoption up to June 30, 2025; as at June 30, 2025, the number of share options available for grant under the scheme limit was **7,706,500** - The company adopted a share option scheme approved by shareholders on **October 9, 2023**[74](index=74&type=chunk) - No share options were granted under the share option scheme from its adoption up to June 30, 2025[74](index=74&type=chunk) - As at June 30, 2025, the number of share options available for grant under the scheme limit was **7,706,500**[74](index=74&type=chunk) [Convertible Securities, Share Options, Warrants or Similar Rights](index=23&type=section&id=Convertible%20Securities%2C%20Share%20Options%2C%20Warrants%20or%20Similar%20Rights) As at June 30, 2025, neither Huashi Group nor any of its subsidiaries had issued or granted any convertible securities, share options, warrants, or similar rights - As at June 30, 2025, neither the company nor any of its subsidiaries had issued or granted any convertible securities, share options, warrants, or similar rights[77](index=77&type=chunk) [Review of Interim Results](index=23&type=section&id=Review%20of%20Interim%20Results) Huashi Group's Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the reporting period, deeming them prepared in accordance with applicable Listing Rules and fairly reflecting the Group's financial position and performance - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the reporting period, including the applicable accounting policies and accounting standards adopted by the Group[78](index=78&type=chunk) - The Audit Committee is satisfied that these financial statements were prepared in accordance with applicable accounting standards and fairly reflect the Group's financial position and performance for the reporting period[78](index=78&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=24&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Profit or Loss Statement Overview](index=24&type=section&id=Profit%20or%20Loss%20Statement%20Overview) For the six months ended June 30, 2025, Huashi Group's revenue increased **26.1%** year-on-year to **RMB 155.4 million**, gross profit increased **44.0%** to **RMB 108.0 million**, profit for the period increased **49.6%** to **RMB 53.7 million**, and basic and diluted earnings per share were **RMB 6.97 cents** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | 2025 (Unaudited) (RMB thousand) | 2024 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | | Revenue | 155,355 | 123,245 | | Cost of services | (47,393) | (48,260) | | Gross Profit | 107,962 | 74,985 | | Other income and gains, net | 364 | 1,196 | | Selling and marketing expenses | (9,182) | (5,890) | | Administrative expenses | (24,195) | (19,911) | | Net provision for expected credit losses on financial and contract assets | (7,635) | (3,115) | | Finance costs | (2,310) | (3,167) | | Profit before income tax expense | 65,004 | 44,098 | | Income tax expense | (11,284) | (8,198) | | **Profit for the period** | **53,720** | **35,900** | | Profit for the period attributable to owners of the company | 53,720 | 35,900 | | Earnings per share attributable to owners of the company – Basic and diluted (RMB cents) | 6.97 | 4.66 | [Condensed Consolidated Statement of Financial Position](index=25&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Statement of Financial Position Overview](index=25&type=section&id=Statement%20of%20Financial%20Position%20Overview) As at June 30, 2025, Huashi Group's total assets were **RMB 683.1 million**, a **30.7%** increase from the end of 2024; both non-current and current assets grew, with a significant increase in trade receivables; total liabilities increased **59.5%** to **RMB 286.1 million**, mainly due to higher trade payables and borrowings within current liabilities; total equity attributable to owners of the company increased **15.7%** to **RMB 397.0 million** Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | As at June 30, 2025 (Unaudited) (RMB thousand) | As at December 31, 2024 (Audited) (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 101,202 | 60,257 | | Current assets | 581,887 | 462,395 | | **Total assets** | **683,089** | **522,652** | | **Liabilities** | | | | Current liabilities | 265,581 | 150,716 | | Non-current liabilities | 20,544 | 28,692 | | **Total liabilities** | **286,125** | **179,408** | | **Equity** | | | | Equity attributable to owners of the company | 396,964 | 343,244 | | **Total equity** | **396,964** | **343,244** | - Non-current assets increased by **67.8%**, primarily due to an increase in property, plant and equipment[9](index=9&type=chunk) - Current liabilities increased by **76.2%**, primarily due to significant increases in trade payables and borrowings[9](index=9&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=27&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Statement of Changes in Equity Overview](index=27&type=section&id=Statement%20of%20Changes%20in%20Equity%20Overview) For the six months ended June 30, 2025, Huashi Group's total equity attributable to owners of the company increased from **RMB 343.2 million** at the beginning of the period to **RMB 397.0 million**, primarily driven by a profit for the period of **RMB 53.7 million** Condensed Consolidated Statement of Changes in Equity (RMB thousand) | Indicator | Share Capital (RMB thousand) | Capital Reserve (RMB thousand) | PRC Statutory Reserve (RMB thousand) | Retained Profits (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as at January 1, 2025 (Audited) | 276,515 | (171,099) | 20,359 | 217,469 | 343,244 | | Profit for the period | – | – | – | 53,720 | 53,720 | | Balance as at June 30, 2025 (Unaudited) | 276,515 | (171,099) | 20,359 | 271,189 | 396,964 | | Balance as at January 1, 2024 (Audited) | 276,515 | (171,099) | 10,910 | 146,283 | 262,609 | | Profit for the period | – | – | – | 35,900 | 35,900 | | Balance as at June 30, 2024 (Unaudited) | 276,515 | (171,099) | 10,910 | 182,183 | 298,509 | - Total equity attributable to owners of the company increased from **RMB 343,244 thousand** as at January 1, 2025, to **RMB 396,964 thousand** as at June 30, 2025, primarily due to profit for the period of **RMB 53,720 thousand**[84](index=84&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Cash Flow Statement Overview](index=28&type=section&id=Cash%20Flow%20Statement%20Overview) For the six months ended June 30, 2025, Huashi Group's net cash generated from operating activities was **RMB 3.8 million**, a positive turnaround from a net outflow in the prior year; net cash used in investing activities significantly increased to **RMB 44.4 million**, mainly due to higher expenditures on property, plant and equipment; net cash generated from financing activities was **RMB 20.7 million**, resulting in a net decrease in cash and cash equivalents of **RMB 19.9 million** Condensed Consolidated Statement of Cash Flows (RMB thousand) | Indicator | 2025 (Unaudited) (RMB thousand) | 2024 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 3,787 | (1,774) | | Net cash used in investing activities | (44,413) | (80,253) | | Net cash generated from financing activities | 20,747 | 51,557 | | Net decrease in cash and cash equivalents | (19,879) | (30,470) | | Cash and cash equivalents at end of period | 80,747 | 141,040 | - Net cash generated from operating activities turned into a net inflow of **RMB 3.8 million** from a net outflow of **RMB 1.8 million** in the same period of 2024[85](index=85&type=chunk) - Net cash used in investing activities was **RMB 44.4 million**, primarily due to increased expenditures on property, plant and equipment (**RMB 44.5 million**)[85](index=85&type=chunk)[109](index=109&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=30&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=30&type=section&id=1.%20General%20Information) Huashi Group Holdings Limited, incorporated in the Cayman Islands, primarily engages in investment holding, with its subsidiaries mainly providing brand, advertising, and marketing services, as well as advertising placement services in China - The company was incorporated as an exempted company with limited liability in the Cayman Islands on **February 18, 2021**, under the Companies Act of the Cayman Islands[88](index=88&type=chunk) - The company's principal business is investment holding; the Group is primarily engaged in providing brand, advertising, and marketing services, as well as advertising placement services in China[89](index=89&type=chunk) [2. Basis of Preparation](index=30&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 issued by the HKICPA and comply with Listing Rules disclosure requirements, presented in RMB, and should be read in conjunction with the 2024 annual consolidated financial statements - These condensed consolidated interim financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants and comply with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[90](index=90&type=chunk) - The condensed consolidated interim financial statements are presented in RMB and should be read in conjunction with the 2024 annual consolidated financial statements[91](index=91&type=chunk) [3. Accounting Policies](index=31&type=section&id=3.%20Accounting%20Policies) Huashi Group's condensed consolidated interim financial statements apply the same accounting policies as its 2024 annual financial statements, with the only new amendment first applied in 2025 being 'Lack of Exchangeability (Amendments to HKAS 21)', which is not expected to have a significant impact on the Group - The Group applies the same accounting policies and calculation methods in its condensed consolidated interim financial statements as in its 2024 annual financial statements[92](index=92&type=chunk) - The new amendment first applied in 2025 is 'Lack of Exchangeability (Amendments to HKAS 21)', which is not expected to have an impact on the Group[92](index=92&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk) [4. Revenue](index=31&type=section&id=4.%20Revenue) Huashi Group primarily provides brand, advertising, and marketing services and advertising placement services in China, with management reviewing the business as a single operating segment; all revenue during the reporting period was generated from China, and no single customer accounted for over **10%** of revenue; revenue is analyzed by service type and timing of recognition (over time or at a point in time) - The Group is primarily engaged in providing brand, advertising, and marketing services and advertising placement services in China, with management reviewing the operating results of the business as a single operating segment[96](index=96&type=chunk) - For the six months ended June 30, 2025 and 2024, no single external customer's revenue from providing brand, advertising, and marketing services and advertising placement services accounted for more than **10%** of the Group's total revenue[98](index=98&type=chunk) Revenue Analysis by Category (RMB thousand) | Revenue Category | 2025 (Unaudited) (RMB thousand) | 2024 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | | Brand Services | 52,579 | 50,004 | | Event Execution and Production Services | 31,037 | 27,345 | | Online Media Advertising Services | 17,790 | 19,942 | | Advertising Placement Services | 43,911 | 18,635 | | Rebates from Media Partners | 10,038 | 7,319 | | **Total** | **155,355** | **123,245** | Timing of Revenue Recognition (RMB thousand) | Timing of Revenue Recognition | 2025 (Unaudited) (RMB thousand) | 2024 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | | Services transferred over time | 80,407 | 77,349 | | Services transferred at a point in time | 74,948 | 45,896 | | **Total** | **155,355** | **123,245** | [5. Other Income and Gains, Net](index=33&type=section&id=5.%20Other%20Income%20and%20Gains%2C%20Net) During the reporting period, other income and gains, net, amounted to **RMB 364 thousand**, a decrease from **RMB 1,196 thousand** in the prior year, primarily due to lower interest income and exchange gains, and the absence of government grants in the current period Other Income and Gains, Net (RMB thousand) | Item | 2025 (Unaudited) (RMB thousand) | 2024 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | | Interest income | 37 | 355 | | Government grants | – | 354 | | Net exchange gains | 228 | 487 | | Others | 99 | – | | **Total** | **364** | **1,196** | - The decrease in other income and gains, net, was primarily due to lower interest income and exchange gains, as well as the absence of government grants during the reporting period[30](index=30&type=chunk)[101](index=101&type=chunk) [6. Finance Costs](index=33&type=section&id=6.%20Finance%20Costs) During the reporting period, finance costs were **RMB 2,310 thousand**, a decrease from **RMB 3,167 thousand** in the prior year, primarily comprising interest on borrowings and lease liabilities Finance Costs (RMB thousand) | Item | 2025 (Unaudited) (RMB thousand) | 2024 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | | Interest on borrowings | 2,091 | 2,992 | | Interest on lease liabilities | 219 | 175 | | **Total** | **2,310** | **3,167** | - Finance costs decreased year-on-year, primarily due to lower interest on borrowings[102](index=102&type=chunk) [7. Profit Before Income Tax Expense](index=34&type=section&id=7.%20Profit%20Before%20Income%20Tax%20Expense) Profit before income tax expense is calculated after deducting items such as auditor's remuneration, cost of services provided by suppliers, amortization of intangible assets, depreciation of property, plant and equipment, depreciation of right-of-use assets, business development costs, net provision for expected credit losses on financial and contract assets, short-term lease expenses, and staff costs Deductions for Profit Before Income Tax Expense (RMB thousand) | Item | 2025 (Unaudited) (RMB thousand) | 2024 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | | Auditor's remuneration | 237 | 380 | | Cost of services provided by suppliers | 45,331 | 44,217 | | Amortization of intangible assets | 596 | 583 | | Depreciation of property, plant and equipment | 6,517 | 2,654 | | Depreciation of right-of-use assets – leased properties | 899 | 323 | | Business development costs | 8,078 | 10,512 | | Net provision for expected credit losses on financial and contract assets | 7,635 | 3,115 | | Short-term lease expenses | 232 | 1,141 | | Staff costs (including directors' emoluments) | 10,515 | 8,692 | - Staff costs (including directors' emoluments) increased **20.7%** year-on-year to **RMB 10,515 thousand**[103](index=103&type=chunk) [8. Income Tax Expense](index=35&type=section&id=8.%20Income%20Tax%20Expense) During the reporting period, income tax expense was **RMB 11,284 thousand**, an increase from **RMB 8,198 thousand** in the prior year; Chinese subsidiaries are subject to a **25%** corporate income tax rate, with one high-tech enterprise enjoying a preferential **15%** rate; no Hong Kong profits tax provision was made due to the absence of assessable profits in Hong Kong Income Tax Expense (RMB thousand) | Item | 2025 (Unaudited) (RMB thousand) | 2024 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | | Current tax | 12,478 | 7,143 | | Deferred tax | (1,194) | 1,055 | | **Total** | **11,284** | **8,198** | - Chinese subsidiaries are subject to a corporate income tax rate of **25%**, with Huashi Zhongguang International Media (Wuhan) Co., Ltd. enjoying a preferential income tax rate of **15%** due to its recognition as a high-tech enterprise[104](index=104&type=chunk)[105](index=105&type=chunk) - No provision for Hong Kong profits tax was made as the Group did not generate any assessable profits in Hong Kong during the reporting period[106](index=106&type=chunk) [9. Dividends](index=35&type=section&id=9.%20Dividends) For the six months ended June 30, 2025 and 2024, the company neither paid nor declared any dividends - For the six months ended June 30, 2025 and 2024, the company neither paid nor declared any dividends[107](index=107&type=chunk) [10. Earnings Per Share](index=36&type=section&id=10.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, Huashi Group's profit for the period attributable to owners of the company was **RMB 53,720 thousand**, with basic and diluted earnings per share of **RMB 6.97 cents**; diluted earnings per share are the same as basic earnings per share due to the absence of potential dilutive ordinary shares Earnings Per Share Calculation (RMB thousand/cents) | Item | As at June 30, 2025 (Unaudited) | As at June 30, 2024 (Unaudited) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the company (RMB thousand) | 53,720 | 35,900 | | Weighted average number of ordinary shares in issue | 770,650,000 | 770,650,000 | | Basic earnings per share (RMB cents) | 6.97 | 4.66 | - Diluted earnings per share are the same as basic earnings per share as there were no potential dilutive ordinary shares outstanding for the six months ended June 30, 2025[108](index=108&type=chunk) [11. Property, Plant and Equipment](index=36&type=section&id=11.%20Property%2C%20Plant%20and%20Equipment) During the reporting period, Huashi Group's equipment acquisitions significantly increased to **RMB 44,450 thousand**, with depreciation of property, plant and equipment amounting to **RMB 6,517 thousand**; as at June 30, 2025, there were no pledged property, plant and equipment - For the six months ended June 30, 2025, the Group's equipment acquisitions amounted to approximately **RMB 44,450 thousand**, a significant increase from **RMB 5,564 thousand** in the same period of 2024[109](index=109&type=chunk) - Depreciation recognized for property, plant and equipment was approximately **RMB 6,517 thousand**, an increase from **RMB 2,654 thousand** in the same period of 2024[109](index=109&type=chunk) - As at June 30, 2025 and December 31, 2024, no property, plant and equipment were pledged[110](index=110&type=chunk) [12. Intangible Assets](index=36&type=section&id=12.%20Intangible%20Assets) During the reporting period, Huashi Group had no new intangible asset additions, and amortization of intangible assets amounted to **RMB 596 thousand** - For the six months ended June 30, 2025, the Group had no additions to intangible assets[111](index=111&type=chunk) - Amortization recognized for intangible assets was approximately **RMB 596 thousand**, comparable to **RMB 583 thousand** in the same period of 2024[111](index=111&type=chunk) [13. Trade Receivables](index=37&type=section&id=13.%20Trade%20Receivables) As at June 30, 2025, Huashi Group's net trade receivables were **RMB 343,897 thousand**, a significant increase from the end of 2024, with most amounts being current; trade receivables are denominated in RMB, and their fair value approximates their carrying amount Trade Receivables (RMB thousand) | Item | As at June 30, 2025 (Unaudited) (RMB thousand) | As at December 31, 2024 (Audited) (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 366,013 | 217,717 | | Less: Provision for impairment loss on trade receivables | (22,116) | (14,481) | | **Total** | **343,897** | **203,236** | Aging Analysis of Trade Receivables (Based on Due Date, RMB thousand) | Aging | As at June 30, 2025 (Unaudited) (RMB thousand) | As at December 31, 2024 (Audited) (RMB thousand) | | :--- | :--- | :--- | | Current | 313,622 | 200,152 | | Within 90 days | 30,275 | 2,519 | | 91 to 180 days | – | 496 | | 181 to 365 days | – | 69 | | **Total** | **343,897** | **203,236** | - Net trade receivables increased by **69.2%** from the end of 2024, primarily due to a significant increase in current amounts[112](index=112&type=chunk)[113](index=113&type=chunk) [14. Deposits, Prepayments and Other Receivables](index=38&type=section&id=14.%20Deposits%2C%20Prepayments%20and%20Other%20Receivables) As at June 30, 2025, Huashi Group's total deposits, prepayments, and other receivables amounted to **RMB 157,243 thousand**, with other receivables and prepayments being the main components Deposits, Prepayments and Other Receivables (RMB thousand) | Item | As at June 30, 2025 (Unaudited) (RMB thousand) | As at December 31, 2024 (Audited) (RMB thousand) | | :--- | :--- | :--- | | Other receivables | 102,846 | 126,348 | | Deposits paid on behalf of customers | – | 500 | | Less: Provision for impairment loss on deposits and other receivables | (1,831) | (1,831) | | Prepayments for intangible assets | – | 626 | | Other prepayments | 56,228 | 33,744 | | **Amount classified as current assets** | **157,243** | **158,761** | [15. Trade Payables](index=39&type=section&id=15.%20Trade%20Payables) As at June 30, 2025, Huashi Group's total trade payables amounted to **RMB 91,730 thousand**, a significant increase from the end of 2024, with most amounts due within **30 days** Aging Analysis of Trade Payables (RMB thousand) | Aging | As at June 30, 2025 (Unaudited) (RMB thousand) | As at December 31, 2024 (Audited) (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 82,777 | 20,485 | | 31 to 60 days | 5,080 | 3,127 | | 61 to 90 days | 1,317 | 2,703 | | Over 90 days | 2,556 | 3,266 | | **Total** | **91,730** | **29,581** | - Total trade payables increased by **210.1%** from the end of 2024, primarily concentrated in amounts due within **30 days**[116](index=116&type=chunk) [16. Accruals and Other Payables](index=39&type=section&id=16.%20Accruals%20and%20Other%20Payables) As at June 30, 2025, Huashi Group's total accruals and other payables amounted to **RMB 12,008 thousand**, primarily comprising accrued expenses, other taxes payable, and salaries payable Accruals and Other Payables (RMB thousand) | Item | As at June 30, 2025 (Unaudited) (RMB thousand) | As at December 31, 2024 (Audited) (RMB thousand) | | :--- | :--- | :--- | | Accrued expenses and other payables | 5,138 | 3,455 | | Deposits from customers | 311 | 1,345 | | Other taxes payable | 4,243 | 2,148 | | Salaries payable | 2,316 | 5,287 | | **Total** | **12,008** | **12,235** | [17. Borrowings](index=39&type=section&id=17.%20Borrowings) As at June 30, 2025, Huashi Group's total bank borrowings were **RMB 132,930 thousand**, with a weighted average effective annual interest rate of **3.1%**; **94.0%** were current liabilities and **6.0%** were non-current liabilities; all bank borrowings were guaranteed by the controlling shareholder and subsidiaries Borrowings Details (RMB thousand) | Item | As at June 30, 2025 (Unaudited) (RMB thousand) | As at December 31, 2024 (Audited) (RMB thousand) | | :--- | :--- | :--- | | Bank loans – secured | 132,930 | 107,920 | | Carrying amount of amounts repayable (based on scheduled repayment dates as set out in the loan agreements): | | | | – Within 1 year | 124,950 | 93,920 | | – Over 1 year but not exceeding 2 years | 7,980 | 14,000 | | **Total** | **132,930** | **107,920** | - As at June 30, 2025, the weighted average effective annual interest rate for borrowings was **3.1%**, a decrease from **4.5%** as at December 31, 2024[120](index=120&type=chunk) - All bank loans are guaranteed by the Group's controlling shareholder and its subsidiaries[120](index=120&type=chunk) [18. Share Capital](index=40&type=section&id=18.%20Share%20Capital) As at June 30, 2025, Huashi Group's issued and fully paid share capital comprised **770,650,000** shares with a par value of **USD 0.05** each, totaling **USD 38,533 thousand** (**RMB 276,515 thousand**), with no changes during the reporting period Share Capital Details | Item | Number | Amount (USD thousand) | Amount (RMB thousand) | | :--- | :--- | :--- | :--- | | Issued and fully paid ordinary shares of USD 0.05 each | 770,650,000 | 38,533 | 276,515 | - There were no changes in share capital as at January 1, 2024, December 31, 2024, January 1, 2025, and June 30, 2025[119](index=119&type=chunk) [19. Related Party Transactions](index=41&type=section&id=19.%20Related%20Party%20Transactions) During the reporting period, total key management personnel emoluments for Huashi Group amounted to **RMB 1,034 thousand**, including salaries and allowances and contributions to retirement benefit schemes Key Management Personnel Emoluments (RMB thousand) | Item | 2025 (Unaudited) (RMB thousand) | 2024 (Unaudited) (RMB thousand) | | :--- | :--- | :--- | | Salaries and allowances | 994 | 929 | | Contributions to retirement benefit schemes | 40 | 30 | | **Total** | **1,034** | **959** | [20. Capital Commitments](index=41&type=section&id=20.%20Capital%20Commitments) As at June 30, 2025, Huashi Group's contracted but unprovided capital expenditures amounted to **RMB 11,000 thousand**, primarily for the acquisition of equipment Capital Commitments (RMB thousand) | Item | As at June 30, 2025 (Unaudited) (RMB thousand) | As at December 31, 2024 (Audited) (RMB thousand) | | :--- | :--- | :--- | | The Group's contracted but unprovided capital expenditures for: | | | | – Acquisition of equipment | 11,000 | 4,000 | - Contracted but unprovided capital expenditures, primarily for the acquisition of equipment, increased by **175%** from the end of 2024[122](index=122&type=chunk) [21. Fair Value Measurement](index=41&type=section&id=21.%20Fair%20Value%20Measurement) Huashi Group's directors believe that as at June 30, 2025, the carrying amounts of the Group's financial instruments approximated their fair values

FIT Hon Teng Limited 鴻騰六零八八精密科技股份有限公司 （於開曼群島以鴻騰精密科技股份有限公司的名稱註冊成立的有限公司， 並以鴻騰六零八八精密科技股份有限公司於香港經營業務） 股份代號: 6088 二零二五年中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 4 | | 管理層討論及分析 | 5 | | 中期財務資料審閱報告 | 15 | | 中期簡明綜合收入表 | 17 | | 中期簡明綜合全面收入表 | 18 | | 中期簡明綜合資產負債表 | 19 | | 中期簡明綜合權益變動表 | 21 | | 中期簡明綜合現金流量表 | 23 | | 中期簡明綜合財務資料附註 | 24 | | 其他資料 | 69 | | 釋義 | 78 | 本中期報告之中英文本如有差異，概以英文本為準。 公司資料 本公司之法定名稱 鴻騰六零八八精密科技股份有限公司（於開曼群島以鴻騰精密科技股份有限公司的名稱註冊成立的有限公司，並以鴻騰六零八 八精密科技股份有限公司於香港經營業務） 上市地點及股份代號 香港聯合交易所有限公司 股份代號：6088 董事 執行董事 盧松青 盧伯卿 ...

Financial Performance - The company achieved revenue of RMB 694.2 million for the six months ended June 30, 2025, representing a growth of 5.6% compared to RMB 657.1 million in the same period of 2024[7]. - Gross profit for the same period was RMB 410.3 million, an increase of 3.0% from RMB 398.5 million year-on-year[7]. - Net profit for the first half of 2025 reached RMB 160.6 million, reflecting a 15.3% increase from RMB 139.3 million in the previous year[7]. - The company reported a basic and diluted earnings per share of RMB 0.14, up from RMB 0.12 in the same period last year[7]. - The company's hip and knee implant products generated revenue of approximately RMB 604.2 million in the first half of 2025, representing an increase of 8.8% year-on-year[16]. - The spinal and trauma implant products reported revenue of approximately RMB 50.7 million, a decline of 26.5% year-on-year[19]. - Revenue from hip joint replacement implants was approximately RMB 409.7 million, a 14.0% increase from RMB 359.4 million in 2024, driven by increased surgical demand[41]. - Revenue from knee joint replacement implants decreased slightly by 0.7% to approximately RMB 194.5 million from RMB 195.8 million in 2024[41]. - Revenue from digital orthopedic customized products and services increased by 3.9% to approximately RMB 18.4 million from RMB 17.7 million in 2024[43]. - Domestic sales revenue was approximately RMB 566.0 million, a 6.0% increase from RMB 533.8 million in 2024, while overseas sales revenue was approximately RMB 128.2 million, up 4.0% from RMB 123.3 million[44]. Market Expansion and Strategy - The company successfully implemented the joint procurement policy for orthopedic medical devices across all provinces in China, leading to a 33% increase in surgical contributions from high-level hospitals[8]. - The company expanded its international market presence, hosting six events under the "Silk Road Health International Cooperation Project," covering 51 medical institutions with over 140 participants[9]. - The company plans to adjust its sales team structure and implement a tiered hospital coverage strategy to enhance market share and solidify its leading position in the domestic orthopedic industry[9]. - The company plans to expand its international market presence, focusing on enhancing brand influence and competitiveness[14]. - The group has registered 4 new countries for overseas operations in the first half of 2025, with 15 additional countries in the registration process and 5 new distributors added[22]. Technological Innovation - The company continues to focus on technological innovation, leading the industry with advancements in 3D printing, personalized platforms, and intelligent navigation technologies[9]. - The company launched the K3 knee joint intelligent navigation robot system and became the first in the orthopedic field to commercialize self-developed robotic arm technology[9]. - The company’s K3 intelligent surgical robot received approval from the National Medical Products Administration, enhancing the iCOS digital orthopedic platform[14]. - The group achieved breakthroughs in smart medical imaging and digital orthopedics, developing a deep learning-based multi-modal imaging fusion algorithm[25]. - The group has built a comprehensive solution network for "preoperative planning - intraoperative digital assistance - postoperative monitoring" to ensure surgical accuracy and efficiency[20]. Research and Development - Research and development expenses for the six months ended June 30, 2025, were approximately RMB 66.7 million, an increase of 4.9% from RMB 63.6 million in 2024, reflecting ongoing investment in R&D projects[50]. - The group has entered 7 products into the national innovation approval channel, maintaining a leading position in the orthopedic field in China[24]. Financial Position and Cash Flow - As of June 30, 2025, the group's cash and cash equivalents totaled approximately RMB 3,751 million, up from RMB 1,027.7 million as of December 31, 2024[53]. - The group's net current assets as of June 30, 2025, were approximately RMB 1,845.5 million, an increase of about RMB 263.9 million from RMB 1,581.6 million as of December 31, 2024[54]. - The group generated a net foreign exchange gain of approximately RMB 53 million for the six months ended June 30, 2025, compared to a foreign exchange loss of RMB 9 million in the same period of 2024[55]. - Total capital expenditures for the six months ended June 30, 2025, were approximately RMB 766 million, primarily for factory construction, patent purchases, and production equipment[56]. - The group reported a profit before tax of RMB 186,671,000 for the six months ended June 30, 2025, compared to RMB 162,524,000 for the same period in 2024, reflecting a growth of 14.8%[85]. Shareholder Information and Equity - As of June 30, 2025, Mr. Li Zhijiang holds 505,157,500 shares, representing 45.00% of the company's equity[116]. - The total issued shares of the company as of June 30, 2025, is 1,122,695,778[116]. - The largest shareholder, Himalaya Limited, holds 505,157,500 shares, which is 45.00% of the company's equity[118]. - The company has no treasury shares as of June 30, 2025[121]. Corporate Governance and Compliance - The audit committee reviewed the interim financial report for the six months ending June 30, 2025, and found it to be in accordance with applicable accounting standards[169]. - The company has adopted a standard code of conduct for securities trading, with all directors confirming compliance for the six months ending June 30, 2025[167]. - The board believes that the current structure of having the same individual serve as both chairman and CEO does not impair the balance of power and authority within the board and management[168].

Revenue and Growth - Revenue for the six months ended June 30, 2025, increased by approximately 3.4% to HKD 540.5 million from HKD 522.6 million in the same period last year[7] - Franchise brand revenue grew by approximately 3.1% to HKD 396.4 million, accounting for about 73.4% of total revenue[11] - Self-operated brand revenue increased by approximately 5.4% to HKD 143.4 million, representing 26.5% of total revenue[13] - Total revenue for the six months ended June 30, 2025, was HKD 540,460,000, an increase from HKD 522,610,000 in the same period of 2024, representing a growth of approximately 3.6%[51] - Restaurant operations generated revenue of HKD 539,793,000, up from HKD 520,666,000, reflecting a growth of 3.9%[64] Cost Management - Food and beverage costs decreased by approximately 3.6% to HKD 156.5 million, with the cost percentage of revenue dropping to 29.0% from 31.1%[16] - Employee costs reduced by approximately 0.9% to HKD 192.6 million, with the cost percentage of revenue decreasing to 35.6% from 37.2%[17] - The company’s employee costs slightly decreased to HKD 192,620,000 from HKD 194,463,000, reflecting a reduction of about 1.0%[51] Financial Performance - The loss attributable to equity holders decreased by approximately 97.6% from HKD 26.5 million to HKD 0.6 million, primarily due to active transformation and restructuring measures[19] - The company reported a pre-tax loss of HKD 2,815,000 for the six months ended June 30, 2025, significantly improved from a loss of HKD 32,069,000 in the same period of 2024[51] - The basic and diluted loss per share for the six months ended June 30, 2025, was HKD 0.08, compared to HKD 3.32 in the same period of 2024, showing a significant reduction in losses per share[51] - The company recorded a net loss of HKD 647,000 for the six months ended June 30, 2025, compared to a loss of HKD 26,535,000 for the same period in 2024[54] Assets and Liabilities - The total assets as of June 30, 2025, amounted to HKD 684,201,000, down from HKD 786,006,000 as of December 31, 2024, indicating a decrease of approximately 13.0%[52] - Total liabilities decreased to HKD 451,943,000 as of June 30, 2025, from HKD 553,141,000 as of December 31, 2024[53] - Current liabilities exceeded current assets by HKD 54,498,000 as of June 30, 2025[58] - The company did not incur any external borrowings as of June 30, 2025[58] Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2025, were approximately HKD 100.3 million, down from HKD 144.8 million as of December 31, 2024[21] - Operating cash flow for the six months ended June 30, 2025, was HKD 50,015,000, compared to HKD 60,011,000 for the same period in 2024[55] - The company plans to maintain sufficient working capital to meet its financial obligations over the next twelve months[58] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance in all significant aspects except for the separation of the roles of Chairman and CEO, which are held by the same individual[37] - The board consists of two executive directors and three independent non-executive directors, maintaining a high level of independence[38] - The audit committee, composed of three independent non-executive directors, has reviewed the company's financial reporting procedures and internal controls[42] - The company confirmed compliance with the standard code for securities trading by all directors during the reporting period[39] Store Operations and Strategy - The number of self-operated restaurants increased to 20 from 14 year-on-year, while the total number of restaurants rose to 64 from 58[10] - The group has actively closed underperforming stores while flexibly opening new potential locations, laying a solid foundation for long-term healthy development[33] - The management is focused on optimizing store portfolio and enhancing customer experience to adapt to changing market dynamics[11] Technology and Innovation - The group continues to embrace new technologies, enhancing operational efficiency through the application of artificial intelligence and automation[34] Dividends - The board decided not to declare an interim dividend for the period, consistent with the previous year[35] - The company did not recommend an interim dividend for the six months ended June 30, 2025, compared to no interim dividend declared for the same period in 2024[82] Impairment and Depreciation - The company identified impairment indicators for several restaurant locations, leading to recorded losses and estimated recoverable amounts for property, plant, and equipment[89] - Depreciation of right-of-use assets for the six months ended June 30, 2025, was HKD 57,353,000, slightly lower than HKD 59,211,000 in 2024[74] - The carrying amount of right-of-use assets for restaurants decreased to HKD 244,881,000 as of June 30, 2025, down from HKD 288,820,000 at the end of 2024, reflecting asset depreciation[84]