Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 7,518,683, an increase of 4.8% compared to RMB 7,175,804 in 2024[4] - EBITDA for the same period was RMB 2,752,120, reflecting a growth of 23.3% from RMB 2,231,943 in 2024[4] - Profit before tax increased by 27.2% to RMB 2,419,651 from RMB 1,901,702 in the previous year[4] - Net profit attributable to the company's owners rose by 27.0% to RMB 1,894,314, compared to RMB 1,491,404 in 2024[4] - Basic earnings per share increased to RMB 104.26, up 27.0% from RMB 82.08 in the prior year[4] - Total comprehensive income for the period was RMB 1,892,823, compared to RMB 1,491,641 in 2024, showing overall growth[12] Expenses and Costs - Research and development expenses were RMB 498,941, an increase from RMB 446,800 in the previous year, highlighting ongoing investment in innovation[12] - The company reported a decrease in sales and distribution expenses to RMB 682,161 from RMB 706,651, indicating improved cost management[12] - The total employee costs for the six months ended June 30, 2025, amounted to RMB 1,112,645,000, up from RMB 1,035,973,000 in 2024, reflecting an increase of about 7.4%[55] - The company’s financial costs decreased to RMB 20,797 thousand in 2025 from RMB 25,172 thousand in 2024, a reduction of approximately 17.5%[45] Assets and Liabilities - As of June 30, 2025, total non-current assets increased to RMB 11,131,383 thousand from RMB 9,762,356 thousand, representing a growth of approximately 14.0% year-over-year[14] - Current assets rose to RMB 18,303,138 thousand, up from RMB 16,070,696 thousand, indicating an increase of about 13.6% compared to the previous year[14] - Total liabilities increased to RMB 4,115,975 thousand, compared to RMB 2,625,263 thousand, marking a significant rise of approximately 56.7%[15] - The total equity attributable to owners of the company increased to RMB 15,566,827 thousand from RMB 14,388,283 thousand, reflecting a growth of about 8.2%[15] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2025, was RMB 1,997,122 thousand, compared to RMB 1,845,577 thousand, showing an increase of 8.2% year-over-year[20] - The net cash used in investing activities for the six months ended June 30, 2025, was RMB (1,313,174,000), compared to RMB (523,670,000) in the same period of 2024, indicating a significant increase in investment outflows[22]. - Cash and cash equivalents increased by RMB 2,685,387,000 for the six months ended June 30, 2025, compared to an increase of RMB 2,292,276,000 for the same period in 2024[22]. Revenue Segmentation - Revenue from intermediates was RMB 1,010,665,000, while raw materials and formulation products generated RMB 2,529,547,000 and RMB 3,978,471,000 respectively, contributing to a total segment revenue of RMB 9,282,096,000[27]. - The revenue from the formulation products segment reached RMB 3,978,500,000, a significant increase of 65.9% year-on-year, accounting for 52.9% of total revenue[85] - The company achieved sales revenue of RMB 966,100,000 from diabetes products, marking a 75.5% increase year-on-year[86] - The animal health business recorded sales revenue of RMB 564,600,000, a decrease of 15.9% year-on-year[91] Market Performance - Revenue from the Chinese market (including Hong Kong) was RMB 4,725,243,000, a decrease of 17.7% from RMB 5,748,478,000 in the previous year[30]. - The company’s revenue from Europe increased significantly to RMB 1,741,465,000 from RMB 411,566,000, indicating a strong market expansion in that region[30]. Shareholder Information - The company maintained an interim dividend of RMB 16.0 per share, unchanged from the previous year[4] - The interim dividend declared was RMB 0.16 per share, maintaining the same level as the previous year, with a payout ratio of 16.7%[82] - The group recognized a total of RMB 726,811,000 in dividends for the year-end 2024, consistent with the previous year[60] Corporate Governance and Management - The company adopted a share incentive plan on October 26, 2023, allowing for the issuance of up to 181,702,650 shares, which is 10% of the total issued shares as of that date[119] - The company currently does not have a Chief Executive Officer, and plans to appoint one at an appropriate time[127] - The audit committee consists of three independent non-executive directors: Mr. Zhang Pinwen, Professor Song Min, and Dr. Fu Qiushi, who reviewed the unaudited condensed consolidated financial report for the six months ending June 30, 2025[128] Future Plans and Developments - The company plans to expand its formulation exports and deepen its global market layout, focusing on the "Belt and Road" initiative[85] - The group aims to accelerate overseas registration and licensing of key products while enhancing its international competitiveness in production, R&D, and commercialization[108] - The group has 43 new human drug products in development, including 22 first-class new drugs focusing on endocrine, metabolism, autoimmune, ophthalmology, and anti-infection fields[92] Legal and Compliance - The group is involved in litigation to recover approximately RMB 340 million from Chengdu Evergrande, with a court ruling in June 2024 ordering a payment of approximately RMB 136.3 million[106] - The company has not disclosed any other significant litigation during the reporting period[107]

[Company Information and Financial Summary](index=1&type=section&id=Company%20Information%20and%20Financial%20Summary) [General Information](index=6&type=section&id=General%20Information) Universe Entertainment and Culture Group, listed on HKEX, operates in film distribution, property rental, securities investment, and financial printing services - The Group's principal businesses include video distribution, film distribution and exhibition, licensing and sub-licensing of film rights, investment property leasing, securities investment, trading, wholesale and retail of optical and watch products, and financial printing services[8](index=8&type=chunk) - The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - The consolidated financial statements are presented in **thousand Hong Kong Dollars (HKD)**[10](index=10&type=chunk) [Consolidated Statement of Comprehensive Income](index=1&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total revenue increased, but loss for the year significantly expanded, primarily due to substantial impairment losses on film rights Key Data from Consolidated Statement of Comprehensive Income | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | | | | | Sales of goods | 11,957 | 19,590 | -39.0% | | Film distribution business income | 421,433 | 309,579 | +36.1% | | Other business income | 39,202 | 36,088 | +8.6% | | **Total Revenue** | **472,592** | **365,257** | **+29.4%** | | Total cost of revenue | (404,499) | (302,292) | +33.8% | | Selling expenses | (7,382) | (8,043) | -8.2% | | Administrative expenses | (52,144) | (59,341) | -12.1% | | Reversal of impairment loss on film-related deposits/(Impairment loss) | 223 | (5,122) | -104.3% | | Impairment loss on film rights and films in progress | (69,067) | (17,032) | +305.5% | | Impairment loss on trading securities | (1,350) | – | N/A | | Loss before tax | (58,454) | (26,009) | +124.7% | | Income tax expense | (4,976) | (5,187) | -4.1% | | **Loss for the year** | **(63,430)** | **(31,196)** | **+103.3%** | | Total comprehensive expense for the year | (63,432) | (31,171) | +103.5% | | Loss attributable to owners of the Company | (63,190) | (30,441) | +107.6% | | Loss attributable to non-controlling interests | (240) | (755) | -68.2% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and liabilities decreased significantly, mainly due to reduced film rights, while the current ratio improved to **1.4** Key Data from Consolidated Statement of Financial Position | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Property, plant and equipment | 34,643 | 38,473 | -9.9% | | Investment properties | 28,740 | 29,840 | -3.7% | | Film rights and films in progress | 40,778 | 409,116 | -90.0% | | Film-related deposits | 58,538 | 57,809 | +1.3% | | Total non-current assets | 167,111 | 540,507 | -69.1% | | Inventories | 1,234 | 2,716 | -54.6% | | Trade and other receivables | 90,570 | 27,170 | +233.3% | | Cash and cash equivalents | 135,245 | 132,324 | +2.2% | | Total current assets | 268,593 | 196,905 | +36.4% | | **Total Assets** | **435,704** | **737,412** | **-40.9%** | | **Equity** | | | | | Equity attributable to owners of the Company | 241,304 | 306,824 | -21.4% | | Non-controlling interests | (3,548) | (4,436) | -20.0% | | **Total Equity** | **237,756** | **302,388** | **-21.4%** | | **Liabilities** | | | | | Total non-current liabilities | 2,865 | 6,163 | -53.5% | | Trade and other payables | 10,189 | 11,102 | -8.3% | | Contract liabilities | 58,350 | 305,088 | -80.9% | | Total current liabilities | 195,083 | 428,861 | -54.5% | | **Total Liabilities** | **197,948** | **435,024** | **-54.5%** | | **Total Equity and Liabilities** | **435,704** | **737,412** | **-40.9%** | | Net current assets/(liabilities) | 73,510 | (231,956) | N/A | | Gearing ratio | 3.0% | 3.7% | -0.7% | | Current ratio | 1.4 | 0.5 | +0.9 | - Total assets significantly decreased by **40.9%**, primarily due to the book value of film rights and films in progress falling from **HKD 409.1 million** to **HKD 40.8 million**[6](index=6&type=chunk) - The current ratio significantly improved from **0.5** to **1.4**, indicating enhanced short-term solvency[55](index=55&type=chunk) [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) Income tax expense for the year was **HKD 4.976 million**, a slight decrease from last year, primarily comprising PRC Enterprise Income Tax and PRC Withholding Tax Income Tax Expense | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | PRC Enterprise Income Tax (expense for the year) | 2,746 | – | | PRC Enterprise Income Tax (over-provision for the year) | (46) | (367) | | PRC Withholding Tax (expense for the year) | 2,262 | 5,568 | | PRC Withholding Tax (under-provision for the year) | 28 | – | | Deferred tax (origination and reversal of temporary differences) | (14) | (14) | | **Income Tax Expense** | **4,976** | **5,187** | - Provision for Hong Kong Profits Tax is calculated at **16.5%** of the estimated assessable profit for the year[24](index=24&type=chunk) - Provision for PRC Enterprise Income Tax is calculated at **25%** of the estimated assessable profit for the year[25](index=25&type=chunk) - Net income derived from film distribution and exhibition, licensing and sub-licensing of film rights in the PRC is subject to a **10%** PRC Withholding Tax[25](index=25&type=chunk) [Loss Per Share](index=14&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share for the year expanded to **HKD 0.0697**, up from **HKD 0.0336** last year, due to increased loss for the year with an unchanged weighted average number of ordinary shares outstanding Loss Per Share | Metric | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Loss attributable to owners of the Company (thousand HKD) | (63,190) | (30,441) | | Weighted average number of ordinary shares in issue | 906,632,276 | 906,632,276 | | **Basic loss per ordinary share** | **(0.0697)** | **(0.0336)** | | **Diluted loss per ordinary share** | **(0.0697)** | **(0.0336)** | - Diluted loss per share is the same as basic loss per share because there were no potential dilutive ordinary shares in issue during the year[27](index=27&type=chunk) [Dividends](index=14&type=section&id=Dividends) The Board does not recommend the payment of a final dividend for the year ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of a final dividend for the year ended June 30, 2025 (2024: nil)[28](index=28&type=chunk) [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, net trade and other receivables significantly increased by **233.3%** to **HKD 90.57 million**, with a notable rise in receivables over 180 days old Ageing Analysis of Trade and Other Receivables | Ageing | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | 1 to 90 days | 60,402 | 14,655 | | 91 to 180 days | 2,317 | 7,922 | | Over 180 days | 27,851 | 4,593 | | **Net** | **90,570** | **27,170** | - Net trade and other receivables increased by **233.3%** year-on-year to **HKD 90.57 million**[29](index=29&type=chunk) - Trade receivables over 180 days old increased more than **5 times** from **HKD 4.593 million** to **HKD 27.851 million**[30](index=30&type=chunk) - The Company grants credit periods ranging from **0 to 180 days** for sales of video products, film exhibition, licensing and sub-licensing of film rights, trading and wholesale of optical and watch products, and financial printing services, with regular credit assessments of customers[30](index=30&type=chunk) [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were **HKD 10.189 million**, a slight decrease from the prior year, with all amounts expected to be settled within one year Ageing Analysis of Trade and Other Payables | Ageing | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | 1 to 90 days | 5,060 | 5,738 | | 91 to 180 days | 636 | 1,436 | | Over 180 days | 4,493 | 3,928 | | **Total** | **10,189** | **11,102** | - Total trade and other payables decreased by **8.2%** year-on-year to **HKD 10.189 million**[31](index=31&type=chunk) - All trade and other payables are expected to be settled or recognized as income within one year or are repayable on demand[31](index=31&type=chunk) [Accounting Policies and Segment Information](index=6&type=section&id=Accounting%20Policies%20and%20Segment%20Information) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The Group's consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, generally accepted accounting principles, and the Hong Kong Companies Ordinance, adhering to HKEX Listing Rules - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Hong Kong Companies Ordinance, and comply with the Listing Rules of the Stock Exchange[11](index=11&type=chunk) - The statements are prepared on a historical cost basis, modified for the fair value revaluation of other equity investments and investment properties[11](index=11&type=chunk) [Accounting Policies](index=7&type=section&id=Accounting%20Policies) The Group adopted all new and revised Hong Kong Financial Reporting Standards effective July 1, 2024, without significant changes to accounting policies or financial statement presentation, and is currently assessing the impact of new standards not yet in effect - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective for accounting periods beginning on July 1, 2024[12](index=12&type=chunk) - The adoption of these new and revised Hong Kong Financial Reporting Standards has not resulted in significant changes to the Group's accounting policies, the presentation of the consolidated financial statements, or the reported amounts for the current and prior years[12](index=12&type=chunk) - The Group has commenced an assessment of the impact of new and revised Hong Kong Financial Reporting Standards that are not yet effective but is not yet in a position to state whether they will have a significant impact[12](index=12&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group is organized into six reportable segments based on business (products and services), with management independently monitoring each segment's performance and assessing it based on loss before tax - The Group is organized into departments based on business (products and services) and manages its businesses in a manner consistent with how information is reported internally to the chief operating decision-maker[13](index=13&type=chunk) - The Group has presented the following reportable segments: video distribution, film distribution and exhibition, licensing and sub-licensing of film rights; trading, wholesale and retail of optical and watch products; rental of investment properties; securities investment; financial printing services; and others (i.e., entertainment business)[14](index=14&type=chunk) - Segment performance is assessed based on reported segment loss, which is a measure of loss before tax, but excludes other income, unallocated finance income, unallocated finance costs, and unallocated corporate expenses[15](index=15&type=chunk) [Segment Revenue, Results, Assets, and Liabilities](index=8&type=section&id=Segment%20Revenue,%20Results,%20Assets,%20and%20Liabilities) In 2025, film distribution revenue significantly increased by **36.2%**, but segment loss expanded due to impairment losses; optical and watch product revenue decreased by **42.6%** but loss narrowed; financial printing services revenue grew by **9.6%** with improved loss; and the securities investment segment recorded an **HKD 1.35 million** impairment loss 2025 Segment Revenue and Results | Segment | Revenue (thousand HKD) | Results (thousand HKD) | | :--- | :--- | :--- | | Video distribution, film distribution and exhibition, licensing and sub-licensing of film rights | 422,505 | (52,532) | | Trading, wholesale and retail of optical and watch products | 10,885 | (2,088) | | Rental of investment properties | 645 | (717) | | Securities investment | – | (1,350) | | Financial printing | 36,608 | (323) | | Others | 1,949 | 956 | | **Total** | **472,592** | **(56,054)** | 2025 Segment Assets and Liabilities | Segment | Assets (thousand HKD) | Liabilities (thousand HKD) | | :--- | :--- | :--- | | Video distribution, film distribution and exhibition, licensing and sub-licensing of film rights | 230,391 | 158,366 | | Trading, wholesale and retail of optical and watch products | 3,371 | 5,148 | | Rental of investment properties | 28,799 | 153 | | Securities investment | – | – | | Financial printing | 19,219 | 14,513 | | Others | 9,035 | 1,577 | | **Total Segment** | **290,815** | **179,757** | | **Consolidated Total** | **435,704** | **197,948** | - Amortization of film rights and films in progress amounted to **HKD 315.824 million**, and impairment loss on film rights and films in progress was **HKD 69.067 million**[16](index=16&type=chunk) [Geographical Information](index=12&type=section&id=Geographical%20Information) The Group's operations are primarily located in Hong Kong and the PRC, with the PRC and other Asian countries contributing **87.0%** of revenue in 2025, and non-current assets mainly concentrated in Hong Kong Geographical Revenue and Non-Current Assets | Region | 2025 Revenue (thousand HKD) | 2025 Non-current Assets (thousand HKD) | 2024 Revenue (thousand HKD) | 2024 Non-current Assets (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 56,515 | 139,757 | 70,703 | 512,502 | | PRC and other Asian countries | 411,370 | 24,952 | 286,926 | 24,793 | | Others | 4,707 | – | 7,628 | – | | **Total** | **472,592** | **164,709** | **365,257** | **537,295** | - The PRC and other Asian countries (excluding Hong Kong and Macau) contributed **87.0%** (**HKD 411.37 million**) of the total revenue for the year[21](index=21&type=chunk) - Non-current assets (excluding financial instruments and deferred tax assets) in Hong Kong amounted to **HKD 139.757 million**, representing **84.8%** of total non-current assets[21](index=21&type=chunk) [Major Customer Information](index=12&type=section&id=Major%20Customer%20Information) In 2025, one customer in the video distribution and film distribution business segment contributed **10% or more** of the Group's revenue, totaling approximately **HKD 168.07 million**, a significant increase from the prior year - For the year ended June 30, 2025, one customer in the video distribution, film distribution and exhibition, licensing and sub-licensing of film rights segment contributed **10% or more** of the Group's revenue, amounting to approximately **HKD 168.07 million** (2024: approximately **HKD 88.45 million**)[22](index=22&type=chunk) [Business and Operations Review](index=18&type=section&id=Business%20and%20Operations%20Review) [Overall Group Performance](index=18&type=section&id=Overall%20Group%20Performance) The Group's revenue for the year was approximately **HKD 472.6 million**, a **29.4%** increase year-on-year, but loss for the year expanded to approximately **HKD 63.4 million**, primarily due to an increase of approximately **HKD 46.7 million** in impairment losses on film rights, films in progress, and film-related deposits Overall Group Performance Overview | Metric | 2025 (million HKD) | 2024 (million HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 472.6 | 365.3 | +29.4% | | Loss for the year | 63.4 | 31.2 | +103.2% | - The increase in loss was primarily due to an increase of approximately **HKD 46.7 million** in impairment losses on film rights, films in progress, and film-related deposits compared to the prior year, driven by changes in comparable market conditions and lower-than-expected box office performance[37](index=37&type=chunk) [Video Distribution, Film Distribution and Exhibition, Licensing and Sub-licensing of Film Rights](index=18&type=section&id=Video%20Distribution,%20Film%20Distribution%20and%20Exhibition,%20Licensing%20and%20Sub-licensing%20of%20Film%20Rights) Revenue for this segment grew **36.2%** to **HKD 422.5 million**, accounting for **89.4%** of total Group revenue, mainly due to more Group-produced films premiering in cinemas, but segment loss expanded **205.2%** to **HKD 52.5 million** due to increased impairment losses on film rights - Revenue for this business segment increased by approximately **36.2%** to approximately **HKD 422.5 million** (last year: approximately **HKD 310.2 million**), primarily due to a greater number of Group-produced films premiering in cinemas during the year[38](index=38&type=chunk) - This segment now accounts for approximately **89.4%** of the Group's total revenue (last year: approximately **84.9%**)[38](index=38&type=chunk) - The segment recorded a loss of approximately **HKD 52.5 million**, an increase of **205.2%** compared to a loss of approximately **HKD 17.2 million** last year, mainly due to an increase of approximately **HKD 46.7 million** in impairment losses on film rights, films in progress, and film-related deposits compared to the prior year[38](index=38&type=chunk) - Impairment losses on film rights of approximately **HKD 69.067 million** (2024: **HKD 17.032 million**) were recognized, and a reversal of impairment loss on film-related deposits of approximately **HKD 223,000** (2024: impairment loss of approximately **HKD 5.122 million**) was recorded[40](index=40&type=chunk) - The PRC film market saw a **22.6%** decrease in total box office in 2024 but a **22.9%** year-on-year increase in the first half of 2025[41](index=41&type=chunk) - Looking ahead, the Group plans to address market challenges by focusing on high-quality content creation, adopting more stringent investment strategies, and strict cost control, with plans to produce and distribute new films including "Shock Wave 3", "Ah Lung", and "The Birth of a Department"[42](index=42&type=chunk)[44](index=44&type=chunk) [Trading, Wholesale, and Retail of Optical and Watch Products](index=20&type=section&id=Trading,%20Wholesale,%20and%20Retail%20of%20Optical%20and%20Watch%20Products) Revenue for this segment decreased by **42.6%** to **HKD 10.9 million** due to a weak Hong Kong retail market, accounting for **2.3%** of total Group revenue, but segment loss decreased by **62.5%** to **HKD 2.1 million** after terminating PRC watch product business and closing unprofitable Hong Kong stores - The sustained pressure on the Hong Kong retail market led to a decrease in revenue for this business segment by approximately **42.6%** to approximately **HKD 10.9 million** (last year: approximately **HKD 19.0 million**)[43](index=43&type=chunk) - This segment now accounts for approximately **2.3%** of the Group's revenue for the year (last year: approximately **5.2%**)[43](index=43&type=chunk) - To address challenges, the Group terminated its trading, wholesale, and retail business of watch products in the PRC and closed several unprofitable stores in Hong Kong[43](index=43&type=chunk) - The segment loss for this business segment for the year was approximately **HKD 2.1 million**, a decrease of approximately **62.5%** compared to approximately **HKD 5.6 million** last year[43](index=43&type=chunk) - Looking ahead, the Group will maintain strict cost control measures and adjust its business scale to further reduce losses in this segment[43](index=43&type=chunk) [Rental of Investment Properties](index=21&type=section&id=Rental%20of%20Investment%20Properties) Rental income for the year was approximately **HKD 645,000**, a **25.3%** year-on-year decrease, accounting for **0.1%** of Group revenue, with an impairment loss on investment properties of approximately **HKD 1.1 million** leading to a segment loss of approximately **HKD 717,000** - Rental income for the year was approximately **HKD 645,000** (last year: approximately **HKD 863,000**), a year-on-year decrease of **25.3%**[45](index=45&type=chunk) - Fair value loss on investment properties was approximately **HKD 1.1 million** (2024: **HKD 1.6 million**)[45](index=45&type=chunk) - The Group recorded a segment loss from investment properties of approximately **HKD 717,000** for the year (last year: approximately **HKD 1.1 million**)[45](index=45&type=chunk) [Financial Printing Services](index=21&type=section&id=Financial%20Printing%20Services) Revenue for the financial printing segment increased by **9.6%** to **HKD 36.6 million**, driven by IPO projects and accounting for **7.7%** of total Group revenue, with segment loss improving to **HKD 323,000** as the Group transitions to electronic filing services amid a strong IPO market recovery - The Group provides one-stop financial printing services, including typesetting, translation, printing, design, distribution services, and other related services[46](index=46&type=chunk) - Segment revenue for the year increased by **9.6%** to approximately **HKD 36.6 million** (last year: approximately **HKD 33.4 million**), primarily driven by increased revenue from initial public offering projects[47](index=47&type=chunk) - This segment now accounts for approximately **7.7%** of the Group's total revenue (last year: approximately **9.2%**)[47](index=47&type=chunk) - The financial printing segment's loss for the year was approximately **HKD 323,000**, an improvement from a loss of approximately **HKD 361,000** last year[47](index=47&type=chunk) - The Hong Kong IPO market showed a strong recovery in the first half of 2025, with **42** listing transactions raising approximately **HKD 107.1 billion**, a **700%** increase compared to the same period last year[49](index=49&type=chunk) - The Group is accelerating its transition from paper-based filing services to electronic filing services and leveraging its team's expertise and experience to seize new opportunities in the booming IPO market[50](index=50&type=chunk) [Geographical Contribution](index=22&type=section&id=Geographical%20Contribution) Overseas markets contributed approximately **88.0%** of the Group's revenue for the year, an increase from the prior year, highlighting their growing importance to the Group's revenue - Overseas markets accounted for approximately **88.0%** of the Group's revenue for the year (2024: approximately **80.6%**)[51](index=51&type=chunk) [Selling Expenses](index=22&type=section&id=Selling%20Expenses) Selling expenses decreased by **7.5%** year-on-year to **HKD 7.4 million**, primarily due to the Group's scaling down of its optical and watch product trading, wholesale, and retail business Selling Expenses | Metric | 2025 (million HKD) | 2024 (million HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Selling expenses | 7.4 | 8.0 | -7.5% | - Selling expenses decreased by approximately **7.5%** year-on-year, primarily due to the Group's scaling down of its optical and watch product trading, wholesale, and retail business[52](index=52&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) Administrative expenses decreased by **12.1%** year-on-year to **HKD 52.1 million**, mainly attributable to the implementation of cost control measures Administrative Expenses | Metric | 2025 (million HKD) | 2024 (million HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 52.1 | 59.3 | -12.1% | - The decrease in administrative expenses was due to the implementation of cost control measures during the year[53](index=53&type=chunk) [Outlook](index=22&type=section&id=Outlook) The Group remains cautiously optimistic about the prospects of its video distribution, film distribution, and financial printing businesses, managing these segments with a restrained and prudent strategy, while scaling down its optical and watch retail business to control costs and actively seeking new investment opportunities to diversify revenue streams - The Group remains cautiously optimistic about the prospects of its video distribution, film distribution and exhibition, film rights licensing, and financial printing businesses, and will maintain a restrained and prudent strategy in managing these segments[54](index=54&type=chunk) - Due to the shrinking Hong Kong retail market, the Group is scaling down its optical and watch retail business to control costs and conserve cash[54](index=54&type=chunk) - The Group will prudently seek and identify new potential investments and business opportunities to diversify its revenue sources[54](index=54&type=chunk) [Financial Resources, Liquidity, and Capital Structure](index=23&type=section&id=Financial%20Resources,%20Liquidity,%20and%20Capital%20Structure) [Financial Position](index=23&type=section&id=Financial%20Position) As of June 30, 2025, the Group had cash and cash equivalents of approximately **HKD 135.2 million** and total assets of approximately **HKD 435.7 million**, with the gearing ratio decreasing to **3.0%** and the current ratio improving to **1.4**, indicating enhanced liquidity Key Financial Position Indicators | Metric | 2025 (million HKD) | 2024 (million HKD) | | :--- | :--- | :--- | | Cash and cash equivalents | 135.2 | 132.3 | | Total assets | 435.7 | 737.4 | | Gearing ratio | 3.0% | 3.7% | | Current ratio | 1.4 | 0.5 | - Management closely monitors the Group's current and anticipated liquidity position and believes the Group will have sufficient financial resources to meet its future working capital and other financing requirements in the foreseeable future[56](index=56&type=chunk) [Finance Costs and Currency Risk](index=23&type=section&id=Finance%20Costs%20and%20Currency%20Risk) Finance costs for the year were approximately **HKD 552,000**, primarily interest on lease liabilities, and the Group faces foreign exchange risk from transactions denominated in HKD, RMB, and USD, particularly RMB, which it actively monitors Finance Costs | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Finance costs | 552 | 535 | - The Group is exposed to foreign exchange risk arising from various currency risks, primarily related to RMB, and will continue to take proactive measures and monitor closely[56](index=56&type=chunk) [Fundraising Activities and Asset Pledges](index=23&type=section&id=Fundraising%20Activities%20and%20Asset%20Pledges) The Company did not undertake any fundraising activities through the issuance of new shares during the year, nor were any assets pledged to secure liabilities - The Company did not undertake any fundraising activities through the issuance of new shares during the year (2024: nil)[57](index=57&type=chunk) - As of June 30, 2025, no assets of the Group were pledged to secure any liabilities (2024: nil)[60](index=60&type=chunk) [Significant Acquisitions and Disposals of Assets](index=23&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Assets) The Group did not engage in any significant acquisitions or disposals of assets during the year - The Group did not undertake any significant acquisitions or disposals of assets during the year (2024: nil)[59](index=59&type=chunk) [Pending Litigation](index=16&type=section&id=Pending%20Litigation) The Group faces several pending lawsuits, including claims from Star Overseas Limited regarding film revenue sharing and copyright infringement for "Shaolin Soccer", and a patent infringement claim from Koninklijke Philips Electronics N.V. (KPE) concerning video compact discs, with the Board deeming it premature to predict outcomes and thus no provisions made for potential liabilities - Independent third party Star Overseas Limited filed a lawsuit against Universe Entertainment Limited, an indirect wholly-owned subsidiary of the Company, alleging payment of **USD 935,872** (approximately **HKD 7,299,799**) as revenue share for the film "Shaolin Soccer"[32](index=32&type=chunk) - Universe Entertainment has paid Star Overseas **HKD 5,495,700** plus related interest and fees, but a claim balance of approximately **HKD 1,804,099** remains[33](index=33&type=chunk) - Universe Entertainment and Universe Laser & Digital Company Limited also filed counterclaims against Star Overseas, alleging improper use of jointly owned film rights and infringement of licensed rights[34](index=34&type=chunk)[35](index=35&type=chunk) - Koninklijke Philips Electronics N.V. (KPE) previously filed claims against the Company, Universe Laser, and Mr. Lam Siu Ming concerning video compact disc patent infringement, with the lawsuits against the Company and Mr. Lam Siu Ming terminated, and the claim against Universe Laser settled by agreement[35](index=35&type=chunk) - Based on legal counsel's advice, the Board believes it is premature to predict the outcome of the aforementioned claims and that they will not have a significant financial impact on the Group, thus no provisions have been made in the consolidated financial statements for any potential liabilities[35](index=35&type=chunk) [Corporate Governance and Internal Control](index=24&type=section&id=Corporate%20Governance%20and%20Internal%20Control) [Employees and Remuneration Policy](index=24&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **116** employees, an increase of **9** from the prior year, with remuneration reviewed annually and employee benefits including discretionary bonuses, medical insurance, and a Mandatory Provident Fund Number of Employees | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Number of employees | 116 | 107 | - Remuneration is reviewed annually, and certain employees may receive commissions; in addition to basic salaries, employee benefits also include discretionary bonuses, medical insurance plans, and a Mandatory Provident Fund[61](index=61&type=chunk) [Share Option Scheme](index=24&type=section&id=Share%20Option%20Scheme) The Company adopted a new share option scheme on December 4, 2023, to recognize and incentivize eligible participants' contributions and performance, with terms governing subscription price, maximum share numbers (10% scheme mandate limit, 3% sub-limit for service providers), vesting periods, and performance targets, with no share options issued or outstanding during the year - The Company adopted a new share option scheme on December 4, 2023, to replace the old share option scheme which expired on December 1, 2023[62](index=62&type=chunk) - The new share option scheme aims to recognize and acknowledge the contributions of eligible participants (including employees, connected entities, and service providers) to the Group, incentivize them to optimize performance, and maintain or attract favorable business relationships[63](index=63&type=chunk)[65](index=65&type=chunk) - The subscription price for share options must be at least the highest of the closing price of the shares on the date of grant, the average closing price of the shares for the five (5) business days immediately preceding the date of grant, and the nominal value of the shares[67](index=67&type=chunk) - The total number of shares subject to all options granted under the new share option scheme and any other share option schemes of the Company shall not exceed **10%** of the total issued shares at the adoption date (scheme mandate limit)[68](index=68&type=chunk) - The sub-limit for service providers shall not exceed **3%** of the total issued shares, unless approved by shareholders[68](index=68&type=chunk) - The vesting period for share options shall not be less than **12 months** from the date of acceptance of the offer, but may be shortened at the discretion of the Board under specific circumstances (e.g., new joiners, termination of employment, or performance-based vesting conditions)[73](index=73&type=chunk) - The Board may specify performance targets, including financial and management objectives, for each offer to be achieved by the grantee to provide meaningful incentives[75](index=75&type=chunk) - Share options will automatically lapse upon the grantee's serious misconduct, bankruptcy, breach of service contract, or conviction of a criminal offense[76](index=76&type=chunk) - No share options under the old and new share option schemes were issued or outstanding during the year (last year: nil)[79](index=79&type=chunk) [Dividend Policy](index=31&type=section&id=Dividend%20Policy) The Company adopted a dividend policy on September 27, 2019, to allow shareholders to share in profits while retaining liquidity for growth opportunities, with the Board considering various factors before recommending dividends, subject to legal and regulatory compliance, and without guaranteeing any specific dividend amount - The Board adopted a dividend policy on September 27, 2019, aiming to allow shareholders to participate in the Company's profits through dividend distributions while preserving the Company's liquidity to seize future growth opportunities[80](index=80&type=chunk) - The Board shall consider factors such as the Company's operational and financial performance, liquidity position, capital requirements and future funding needs, contractual restrictions, available reserves, and the prevailing economic climate before recommending and declaring dividends[81](index=81&type=chunk)[82](index=82&type=chunk) - Dividend declarations are subject to any restrictions under the Bermuda Companies Act, the Listing Rules, the Bye-laws, and any applicable laws, rules, and regulations[81](index=81&type=chunk) - No guarantee is given that dividends will be paid for any specified period or at any particular amount[81](index=81&type=chunk) [Corporate Governance Code and Report](index=32&type=section&id=Corporate%20Governance%20Code%20and%20Report) The Company is committed to maintaining a high-quality Board, effective risk management, and internal control systems, and strictly adheres to disclosure practices, having complied with the Corporate Governance Code during the year with two deviations: the roles of Chairman and Chief Executive are not separated (Mr. Lam Siu Ming holds both), and the Chairman did not meet with non-executive directors without executive directors present - The Company has adopted and applied a set of corporate governance principles aimed at maintaining a high-quality Board, implementing effective risk management and internal control systems, strictly enforcing disclosure practices, transparent mechanisms, and accountability[83](index=83&type=chunk) - The Company has complied with the code provisions set out in the Corporate Governance Code during the year, with the following two exceptions: (i) code provision C.2.1 of the Corporate Governance Code regarding the separation of the roles of Chairman and Chief Executive; and (ii) code provision C.2.7 of the Corporate Governance Code requiring the Chairman to meet with non-executive directors[84](index=84&type=chunk) - Mr. Lam Siu Ming, the founder and Chairman of the Company, also performs the duties of the Chief Executive Officer, and the Board believes the current structure is more suitable for the Group[84](index=84&type=chunk) - As Chairman Mr. Lam Siu Ming is also an executive director, the Company deviated from the code provision requiring the Chairman to meet with non-executive directors at least annually without the presence of executive directors[85](index=85&type=chunk) [Risk Management and Internal Control System](index=33&type=section&id=Risk%20Management%20and%20Internal%20Control%20System) The Board is responsible for establishing, maintaining, and reviewing the Group's risk management and internal control systems, designed to manage rather than eliminate risk, based on the COSO framework, and annually reviewed for effectiveness; the Group engages external consultants for annual risk assessments and internal control reviews, and the Board considers the systems effective and adequate - The Board is responsible for establishing, maintaining, and reviewing the Group's risk management and internal control systems, which are designed to manage rather than eliminate risk, and to provide reasonable rather than absolute assurance[86](index=86&type=chunk) - The risk management and internal control systems are largely based on the framework established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)[86](index=86&type=chunk) - The Group does not have a separate internal audit department but engages external consultants to assist the Board and the Audit Committee in evaluating the risk management and internal control systems[87](index=87&type=chunk)[88](index=88&type=chunk) - External consultants assist in conducting annual risk assessments and developing a three-year rolling internal audit plan using a risk-based approach[88](index=88&type=chunk) - The Group has adopted an inside information disclosure policy to ensure insiders comply with confidentiality requirements and fulfill inside information disclosure obligations[88](index=88&type=chunk) - For the year, the Board considered the risk management and internal control systems to be effective and adequate[89](index=89&type=chunk) [Standard Code for Securities Transactions by Directors](index=34&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the year - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code for directors to deal in the Company's securities[90](index=90&type=chunk) - All directors confirmed compliance with the Standard Code during the year[90](index=90&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Company's Audit Committee, established on October 11, 1999, comprises three independent non-executive directors and meets at least twice annually with external auditors to oversee auditor appointments, financial information review, financial and accounting practices, internal controls, and risk management, and has reviewed the audited consolidated financial statements for the year - The Company established an Audit Committee on October 11, 1999, comprising three independent non-executive directors: Mr. Choi Wing Kwun (Chairman), Ms. Pang Suet Hing, and Mr. Tang Yiu Wing[91](index=91&type=chunk) - The Audit Committee meets with external auditors at least twice a year and is primarily responsible for appointing, re-appointing, and removing external auditors, reviewing the Group's financial information, and overseeing the Group's financial and accounting practices, internal controls, and risk management[91](index=91&type=chunk) - The audited consolidated financial statements for the year have been reviewed by the Audit Committee[92](index=92&type=chunk) [Purchase, Sale, or Redemption of Listed Securities](index=34&type=section&id=Purchase,%20Sale,%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year - The Company did not redeem any of its shares during the year; neither the Company nor any of its subsidiaries purchased or sold any of the Company's listed securities during the year[93](index=93&type=chunk) [Auditor's Scope of Work and Report Publication](index=35&type=section&id=Auditor's%20Scope%20of%20Work%20and%20Report%20Publication) [Auditor's Scope of Work](index=35&type=section&id=Auditor's%20Scope%20of%20Work) The Group's auditor, ZHONGHUI ANDA CPA Limited, has reconciled the amounts in the consolidated statement of financial position, consolidated statement of comprehensive income, and related notes in the preliminary results announcement with the audited consolidated financial statements, noting that this work does not constitute an assurance engagement and thus no assurance has been issued on the preliminary results announcement - The Group's auditor, ZHONGHUI ANDA CPA Limited, has reconciled the amounts presented in the consolidated statement of financial position, consolidated statement of comprehensive income, and related notes in the Group's preliminary results announcement for the year ended June 30, 2025, with the amounts presented in the Group's audited consolidated financial statements for the year ended June 30, 2025[94](index=94&type=chunk) - The work performed by ZHONGHUI ANDA CPA Limited in this regard does not constitute an assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements, or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants, and therefore no assurance has been issued on the preliminary results announcement[94](index=94&type=chunk) [Publication of Annual Results Announcement and Annual Report](index=35&type=section&id=Publication%20of%20Annual%20Results%20Announcement%20and%20Annual%20Report) This announcement has been published on the websites of the Stock Exchange and the Company, and the Company's 2025 Annual Report will be dispatched to shareholders and uploaded to the aforementioned websites in due course - This announcement has been published on the website of the Stock Exchange (www.hkexnews.hk) and the Company's website (www.uih.com.hk)[95](index=95&type=chunk) - The Company's 2025 Annual Report will be dispatched to shareholders and uploaded to the aforementioned websites in due course[95](index=95&type=chunk)

[Introductory Information](index=1&type=section&id=Introductory%20Information) [Disclaimer and GEM Characteristics](index=1&type=section&id=Disclaimer%20and%20GEM%20Characteristics) This announcement contains information required by the GEM Listing Rules of the Hong Kong Stock Exchange, for which the Board assumes full responsibility for its accuracy, completeness, and non-misleading nature. The GEM market is designed for small and medium-sized companies, carrying higher investment risks, potential market volatility, and no guarantee of liquidity - The Board assumes full responsibility for the accuracy, completeness, and non-misleading nature of this announcement's content[4](index=4&type=chunk)[5](index=5&type=chunk) - The GEM market is positioned for small and medium-sized companies, entailing **higher investment risks**, potential for **significant market volatility**, and no guarantee of high liquidity[2](index=2&type=chunk)[3](index=3&type=chunk)[5](index=5&type=chunk) [Financial Highlights](index=2&type=section&id=FINANCIAL%20HIGHLIGHTS) For the financial year ended June 30, 2025, the Group's revenue increased by 2.9% year-on-year to approximately HKD 502.4 million, but net loss widened to approximately HKD 7.3 million. The Board does not recommend a final dividend Key Financial Data for FY2025 | Metric | 2025 (HKD Million) | 2024 (HKD Million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 502.4 | 488.1 | +2.9% | | Net Loss | (7.3) | (4.8) | Loss widened | | Final Dividend | None | None | No change | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss](index=3&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS) For the year ended June 30, 2025, the Group's revenue grew to HKD 502.4 million, but loss before taxation and loss for the year both widened due to increased other losses and impairments Consolidated Statement of Profit or Loss Summary (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 502,430 | 488,074 | | Cost of services | (466,461) | (454,486) | | Gross profit | 35,969 | 33,588 | | Other income, other gains and other losses and impairments | (13,059) | (9,023) | | Selling and marketing expenses | (2,682) | (3,041) | | Administrative expenses | (25,644) | (24,271) | | Finance costs | (666) | (818) | | Loss before taxation | (6,082) | (3,565) | | Income tax expense | (1,219) | (1,195) | | Loss for the year | (7,301) | (4,760) | | Loss attributable to owners of the Company | (6,851) | (4,396) | | Basic and diluted loss per share (HK cents) | (1.27) | (0.81) | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) For the year ended June 30, 2025, the Group's total comprehensive loss for the year widened to HKD 6.175 million, primarily impacted by the loss for the year and exchange differences Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the year | (7,301) | (4,760) | | Exchange differences on translation of financial statements of overseas operations | 1,126 | (1,064) | | Total comprehensive loss for the year | (6,175) | (5,824) | | Total comprehensive loss attributable to owners of the Company | (5,725) | (5,460) | [Consolidated Statement of Financial Position](index=5&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, the Group's total assets slightly decreased, non-current assets reduced, while net current assets remained robust. Total equity decreased due to the loss for the year Consolidated Statement of Financial Position Summary (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 56,752 | 66,498 | | Current assets | 242,711 | 231,291 | | **Liabilities** | | | | Current liabilities | 107,164 | 100,306 | | Non-current liabilities | 1,665 | 674 | | **Equity** | | | | Total equity | 190,634 | 196,809 | | Net current assets | 135,547 | 130,985 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Company Information](index=7&type=section&id=COMPANY%20INFORMATION) Poly Holdings Limited was incorporated in the Cayman Islands, with shares listed on GEM of the Hong Kong Stock Exchange since June 17, 2013. Its principal business is investment holding, with subsidiaries primarily engaged in environmental and cleaning services and money lending - The Company is an investment holding company, with its shares listed on GEM of the Hong Kong Stock Exchange since **June 17, 2013**[16](index=16&type=chunk)[17](index=17&type=chunk)[22](index=22&type=chunk) - The Group's principal businesses include environmental and cleaning services and money lending business[17](index=17&type=chunk)[22](index=22&type=chunk) [Material Accounting Policies](index=7&type=section&id=MATERIAL%20ACCOUNTING%20POLICIES) The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, primarily on a historical cost basis, except for financial assets at fair value through profit or loss and interests in leasehold land and buildings. Changes in accounting policies adopted this year did not have a significant impact on the Group's financial position - The consolidated financial statements are primarily prepared on a historical cost basis, except for financial assets at fair value through profit or loss and interests in leasehold land and buildings, which are stated at fair value[25](index=25&type=chunk)[28](index=28&type=chunk) - Certain amendments to accounting standards issued by the Hong Kong Institute of Certified Public Accountants became effective for the first time in the current accounting period but did not have a significant impact on the Group's consolidated financial position and performance[29](index=29&type=chunk)[31](index=31&type=chunk) [Statement of Compliance](index=7&type=section&id=Statement%20of%20compliance) - The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the GEM Listing Rules[19](index=19&type=chunk)[23](index=23&type=chunk) [Basis of Preparation of the Consolidated Financial Statements](index=8&type=section&id=Basis%20of%20preparation%20of%20the%20consolidated%20financial%20statements) - The preparation of consolidated financial statements involves management's judgments, estimates, and assumptions, which are based on historical experience and reasonable factors, and actual results may differ from these estimates[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Changes in Accounting Policies](index=9&type=section&id=Changes%20in%20accounting%20policies) - The Group has adopted amendments to HKFRS 16, HKAS 1, HKAS 7, and HKFRS 7 issued by the Hong Kong Institute of Certified Public Accountants, but these changes have not had a significant impact on the Group's financial position and performance[29](index=29&type=chunk)[31](index=31&type=chunk) [Possible Impact of Amendments, New Standards and Interpretations Issued But Not Yet Effective for the Year Ended 30 June 2025](index=10&type=section&id=POSSIBLE%20IMPACT%20OF%20AMENDMENTS%2C%20NEW%20STANDARDS%20AND%20INTERPRETATIONS%20ISSUED%20BUT%20NOT%20YET%20EFFECTIVE%20FOR%20THE%20YEAR%20ENDED%2030%20JUNE%202025) The HKICPA has issued several new standards and amendments not yet effective, among which HKFRS 18 'Presentation and Disclosure in Financial Statements' is expected to impact future financial statement presentation and disclosure, and the Group is currently assessing its specific effects - HKFRS 18 'Presentation and Disclosure in Financial Statements' will replace HKAS 1, introducing presentation requirements for designated categories and subtotals in the statement of profit or loss and improving disclosure information[36](index=36&type=chunk)[39](index=39&type=chunk) - HKFRS 18 will be effective for annual periods beginning on or after **January 1, 2027**, and the Group is currently assessing its specific impact on the consolidated financial statements[37](index=37&type=chunk)[39](index=39&type=chunk) [Revenue and Segment Reporting](index=12&type=section&id=REVENUE%20AND%20SEGMENT%20REPORTING) The Group's revenue primarily derives from environmental and cleaning services and money lending business. The Group is divided into three reportable segments: environmental and cleaning, money lending, and investment, based on business nature, with revenue and assets also segmented by geographical region Revenue Sources (HKD Thousand) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Environmental and cleaning services income | 497,523 | 485,387 | | Interest income from money lending business | 4,907 | 2,687 | | **Total Revenue** | **502,430** | **488,074** | - The Group's operating segments include environmental and cleaning, money lending, and investment, with each segment offering different products and services and employing distinct business strategies[47](index=47&type=chunk)[49](index=49&type=chunk) [Revenue Breakdown](index=12&type=section&id=Revenue%20Breakdown) - Environmental and cleaning services income is the Group's primary revenue source, with interest income from the money lending business also showing growth[43](index=43&type=chunk) [Segment Reporting Details](index=13&type=section&id=Segment%20Reporting%20Details) 2025 Reportable Segment Revenue and Profit/(Loss) (HKD Thousand) | Segment | Revenue | Profit/(Loss) | | :--- | :--- | :--- | | Environmental and cleaning | 497,523 | 10,023 | | Investment | – | 149 | | Money lending | 4,907 | (4,081) | | **Total** | **502,430** | **6,091** | 2025 Segment Assets and Liabilities (HKD Thousand) | Segment | Assets | Liabilities | | :--- | :--- | :--- | | Environmental and cleaning | 186,136 | (79,510) | | Investment | 1,520 | (18) | | Money lending | 73,917 | (10,280) | | **Total** | **299,463** | **(108,829)** | [Geographical Information and Major Customers](index=17&type=section&id=Geographical%20Information%20and%20Major%20Customers) Revenue by Geographical Region (HKD Thousand) | Region | 2025 Revenue | 2024 Revenue | | :--- | :--- | :--- | | Hong Kong | 480,568 | 468,208 | | PRC | 21,862 | 19,866 | | **Total** | **502,430** | **488,074** | Major Customer Revenue (HKD Thousand) | Customer | 2025 Revenue | 2024 Revenue | | :--- | :--- | :--- | | Customer A | 66,283 | 54,266 | | Customer B | 51,851 | 55,302 | | Customer C | 50,867 | 49,057 | [Other Income, Other Gains and Other Losses and Impairments](index=18&type=section&id=OTHER%20INCOME%2C%20OTHER%20GAINS%20AND%20OTHER%20LOSSES%20AND%20IMPAIRMENTS) In FY2025, the Group recorded other income of HKD 0.334 million and other gains of HKD 0.143 million, but other losses and impairments amounted to HKD 13.536 million, primarily from impairment losses on loans and interest receivables and revaluation losses on property, plant and equipment Other Income, Gains and Losses (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Other income | 334 | 258 | | Other gains | 143 | 1,508 | | Other losses and impairments | (13,536) | (10,789) | | **Total** | **(13,059)** | **(9,023)** | - Impairment loss on loans and interest receivables shifted from a reversal of **HKD 1.471 million** in 2024 to a loss of **HKD 7.823 million** in 2025[63](index=63&type=chunk) - Revaluation loss on property, plant and equipment decreased from **HKD 10.752 million** in 2024 to **HKD 5.704 million** in 2025[63](index=63&type=chunk) [Loss Before Taxation](index=19&type=section&id=LOSS%20BEFORE%20TAXATION) The Group's loss before taxation for FY2025 was HKD 6.082 million, widening from HKD 3.565 million in 2024, primarily impacted by finance costs, staff costs, and other operating expenses Finance Costs (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank loans | 586 | 689 | | Interest on lease liabilities | 80 | 129 | | **Total** | **666** | **818** | Staff Costs (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Salaries, wages and other benefits | 244,553 | 250,458 | | Contributions to defined contribution retirement schemes | 7,631 | 8,549 | | Provision for long service payments | 778 | 919 | | **Total** | **252,962** | **259,926** | Other Items (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Auditor's remuneration | 888 | 863 | | Cost of consumables | 7,250 | 8,315 | | Depreciation of property, plant and equipment | 2,835 | 3,064 | | Depreciation of right-of-use assets | 1,782 | 1,851 | | Short-term lease related expenses | 263 | 924 | | Net foreign exchange (gain)/loss | (46) | 13 | | Written off of property, plant and equipment | 1 | 36 | [Income Tax](index=20&type=section&id=INCOME%20TAX) The Group's income tax expense for FY2025 was HKD 1.219 million, primarily from Hong Kong profits tax and PRC enterprise income tax. Hong Kong profits tax is calculated at 16.5%, with a two-tiered tax rate applicable to some subsidiaries. PRC subsidiaries are subject to a 25% enterprise income tax Income Tax Expense (HKD Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax – Hong Kong profits tax | 1,025 | 1,196 | | Current tax – PRC enterprise income tax | 100 | 68 | | Deferred tax deduction/(credit) | 94 | (69) | | **Income Tax Expense** | **1,219** | **1,195** | - Hong Kong profits tax is calculated at **16.5%**, with the first **HKD 2 million** of assessable profits for certain eligible subsidiaries taxed at **8.25%**[69](index=69&type=chunk)[70](index=70&type=chunk) - PRC subsidiaries are subject to a **25%** enterprise income tax, and unremitted profits generated from **January 1, 2008**, onwards are subject to a **5% or 10%** withholding income tax, though no deferred tax liability is currently recognized[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[76](index=76&type=chunk) [Dividend](index=22&type=section&id=DIVIDEND) The Board does not recommend the payment of any dividend for the year ended June 30, 2025, consistent with the previous year - The Board does not recommend a final dividend for FY2025 (FY2024: none)[6](index=6&type=chunk)[80](index=80&type=chunk)[83](index=83&type=chunk) [Loss Per Share](index=22&type=section&id=LOSS%20PER%20SHARE) For the year ended June 30, 2025, basic loss per share was 1.27 HK cents, widening from 0.81 HK cents last year. Diluted loss per share is the same as basic loss per share due to the absence of potential dilutive ordinary shares Loss Per Share (HK cents) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic and diluted loss per share | (1.27) | (0.81) | - Loss per share is calculated based on the loss attributable to owners of the Company of **HKD 6.851 million** and a weighted average of **540 million** ordinary shares outstanding[81](index=81&type=chunk)[84](index=84&type=chunk) - As the Company had no potential dilutive ordinary shares during the reporting year, diluted loss per share is the same as basic loss per share[82](index=82&type=chunk)[85](index=85&type=chunk) [Property, Plant and Equipment](index=23&type=section&id=PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) As of June 30, 2025, the Group's carrying amount of property, plant and equipment was HKD 41.338 million, a decrease from the previous year. A revaluation loss of HKD 5.704 million was recorded during the year, primarily due to declining commercial property prices in Hong Kong Carrying Amount of Property, Plant and Equipment (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Carrying amount | 41,338 | 47,290 | - A revaluation loss on property, plant and equipment of **HKD 5.704 million** (2024: HKD 10.752 million) was recorded during the year, primarily reflecting the decline in Hong Kong commercial property market prices[87](index=87&type=chunk)[90](index=90&type=chunk)[175](index=175&type=chunk) - The Group has pledged land and buildings with a carrying amount of **HKD 35.72 million** to secure bank financing and performance guarantees[97](index=97&type=chunk)[98](index=98&type=chunk) [Trade Receivables](index=26&type=section&id=TRADE%20RECEIVABLES) As of June 30, 2025, the Group's net trade receivables amounted to HKD 99.966 million, an increase from the previous year. Most receivables are due within 30 days Trade Receivables (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net trade receivables | 99,966 | 94,366 | Ageing Analysis of Trade Receivables (HKD Thousand) | Ageing | 2025 | 2024 | | :--- | :--- | :--- | | 0–30 days | 73,187 | 68,660 | | 31–60 days | 24,879 | 16,993 | | 61–90 days | 379 | 7,696 | | Over 90 days | 1,521 | 1,017 | [Loans and Interest Receivables](index=27&type=section&id=LOANS%20AND%20INTEREST%20RECEIVABLES) As of June 30, 2025, the Group's net loans and interest receivables were HKD 30.519 million, a decrease from the previous year. During the year, the Group recognized an impairment loss of HKD 7.823 million, reflecting defaults by some borrowers due to economic challenges Net Loans and Interest Receivables (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total loans and interest receivables | 90,048 | 88,180 | | Less: Loss allowance | (59,529) | (51,576) | | **Net loans and interest receivables** | **30,519** | **36,604** | - Loans receivable bear interest at annual rates ranging from **6.00% to 24.00%**[107](index=107&type=chunk)[108](index=108&type=chunk) - The Group recognized an impairment loss on loans and interest receivables of **HKD 7.823 million** in FY2025, compared to a reversal of **HKD 1.471 million** in FY2024, primarily due to defaults by some borrowers facing economic difficulties[63](index=63&type=chunk)[160](index=160&type=chunk)[168](index=168&type=chunk) [Ageing Analysis](index=28&type=section&id=Ageing%20analysis) Ageing Analysis of Loans and Interest Receivables (HKD Thousand) | Ageing | 2025 Loan Portion | 2025 Interest Portion | 2024 Loan Portion | 2024 Interest Portion | | :--- | :--- | :--- | :--- | :--- | | Current (not overdue) | 19,647 | 1,598 | 35,423 | 1,479 | | Overdue less than one month | 5,476 | 316 | – | – | | Overdue one to twelve months | 10,952 | 679 | 4,983 | 249 | | Overdue over twelve months | 49,281 | 2,099 | 44,201 | 1,845 | | Less: Loss allowance | (56,433) | (3,096) | (49,478) | (2,098) | | **Net** | **28,923** | **1,596** | **35,129** | **1,475** | [Credit Quality Analysis](index=29&type=section&id=Credit%20quality%20analysis) - The credit-impaired loans receivable show a larger proportion of amounts overdue for over **12 months**, reflecting the impact of economic downturns on borrowers' repayment capabilities[115](index=115&type=chunk) [Trade Payables](index=30&type=section&id=TRADE%20PAYABLES) As of June 30, 2025, the Group's trade payables were HKD 28.233 million, a decrease from the previous year. Most payables are due within 30 days Trade Payables (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Trade payables | 28,233 | 35,707 | Ageing Analysis of Trade Payables (HKD Thousand) | Ageing | 2025 | 2024 | | :--- | :--- | :--- | | 0–30 days | 27,811 | 30,751 | | 31–60 days | 208 | 853 | | 61–90 days | – | 2,849 | | Over 90 days | 214 | 1,254 | [Bank Loans](index=30&type=section&id=BANK%20LOANS) As of June 30, 2025, the Group's total bank loans amounted to HKD 18.315 million, a decrease from the previous year. These loans are secured by the Group's land and buildings and corporate guarantees Bank Loan Maturity (HKD Thousand) | Maturity | 2025 | 2024 | | :--- | :--- | :--- | | Within one year | 1,104 | 1,023 | | After one year but within two years | 1,136 | 1,059 | | After two years but within five years | 3,611 | 3,409 | | Over five years | 12,464 | 13,875 | | **Total** | **18,315** | **19,366** | - Bank loans are secured by the Group's land and buildings with a carrying amount of **HKD 35.72 million** and corporate guarantees from the Company and a subsidiary[118](index=118&type=chunk) [Share Capital](index=31&type=section&id=SHARE%20CAPITAL) As of June 30, 2025, the Group's authorized share capital was HKD 100 million, and issued and fully paid share capital was HKD 5.4 million, with a par value of HKD 0.01 per share, and the number of shares remained unchanged Share Capital Structure (HKD Thousand) | Metric | Number of Shares ('000) | Amount (HKD Thousand) | | :--- | :--- | :--- | | Authorised ordinary shares (HKD 0.01 per share) | 10,000,000 | 100,000 | | Issued and fully paid ordinary shares (HKD 0.01 per share) | 540,000 | 5,400 | [Business Review](index=32&type=section&id=Business%20Review) [Business Overview](index=32&type=section&id=Business%20Overview) The Group's principal businesses include environmental and cleaning services in Hong Kong and the PRC, money lending in Hong Kong and the PRC, and investments in financial assets of companies listed on the Stock Exchange - Environmental and cleaning services cover a range of areas including public spaces, offices, kitchen cleaning, exterior wall cleaning, pest control, waste management, and housekeeping services[121](index=121&type=chunk)[125](index=125&type=chunk) - The money lending business operates in Hong Kong and the PRC, aiming to enhance capital returns and generate income for shareholders[122](index=122&type=chunk)[126](index=126&type=chunk) - Investments in financial assets primarily include shares of companies listed on the Stock Exchange, recognized at fair value through profit or loss[123](index=123&type=chunk)[127](index=127&type=chunk) [Environmental and Cleaning Services in Hong Kong](index=32&type=section&id=Environmental%20and%20Cleaning%20Services%20in%20Hong%20Kong) Revenue from Hong Kong environmental and cleaning services grew by 2.6% to HKD 479.8 million, primarily driven by new service contracts in commercial and government sectors. This business recorded a net profit of HKD 6.9 million, an increase from the previous year Revenue from Hong Kong Environmental and Cleaning Services (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 479,772 | 467,462 | | YoY growth | +2.6% | | - New service contracts in the commercial and government sectors were the primary drivers of revenue growth[135](index=135&type=chunk)[136](index=136&type=chunk) Net Profit from Hong Kong Environmental and Cleaning Services (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net profit | 6,900 | 5,400 | | YoY growth | +27.8% | | [Revenue by Service Sector](index=33&type=section&id=Revenue%20by%20Service%20Sector) Revenue by Service Sector (HKD Thousand) | Service Sector | 2025 Revenue | 2025 Percentage | 2024 Revenue | 2024 Percentage | | :--- | :--- | :--- | :--- | :--- | | Commercial | 155,484 | 32.4% | 148,872 | 31.8% | | Residential | 137,346 | 28.6% | 134,525 | 28.8% | | Hotel | 15,105 | 3.2% | 14,441 | 3.1% | | Transportation | 90,433 | 18.8% | 91,975 | 19.7% | | Government | 75,156 | 15.7% | 68,715 | 14.7% | | Others | 6,248 | 1.3% | 8,934 | 1.9 | | **Total** | **479,772** | **100.0%** | **467,462** | **100.0%** | - Commercial and residential service contracts are the main revenue sources for Hong Kong environmental and cleaning services, with government service contracts showing significant growth in contribution[135](index=135&type=chunk)[136](index=136&type=chunk) [Results](index=34&type=section&id=Results) - The increase in net profit for Hong Kong environmental and cleaning business was primarily due to new service projects during the year, although some client service contracts saw price reductions upon renewal[138](index=138&type=chunk)[143](index=143&type=chunk) [Environmental and Cleaning Services in Shanghai, PRC](index=34&type=section&id=Environmental%20and%20Cleaning%20Services%20in%20Shanghai%2C%20PRC) Shanghai operations revenue slightly decreased to HKD 17.8 million and recorded a net loss of HKD 0.2 million. Despite maintaining profit margins on existing contracts, no new service contracts were secured due to intense low-price bidding competition Financial Performance of Shanghai Environmental and Cleaning Services (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 17,800 | 17,900 | | Net loss | (200) | (200) | - Shanghai operations faced intense low-price bidding competition for cleaning service contracts, failing to secure new service contracts[139](index=139&type=chunk)[144](index=144&type=chunk) [Money Lending Business](index=34&type=section&id=Money%20Lending%20Business) The money lending business aims to enhance capital returns, primarily providing secured and unsecured loans to individual and corporate clients in Hong Kong and the PRC. The Group adopts a prudent approach, strengthening credit risk assessment and post-loan monitoring. During the year, both interest income and operating profit increased, but higher impairment losses were also recognized due to economic challenges - The Group primarily provides term loans, loan financing, and mortgage loans to individual and corporate clients in Hong Kong and the PRC[141](index=141&type=chunk)[145](index=145&type=chunk) - The Group implements stringent credit risk assessment procedures, including background checks, anti-money laundering assessments, client creditworthiness evaluations, and post-loan monitoring[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - In case of delayed payments, the Group will immediately contact borrowers and take legal action, including applying for winding-up to recover loans[152](index=152&type=chunk)[154](index=154&type=chunk)[164](index=164&type=chunk) [Size and Diversity of Borrowers](index=36&type=section&id=Size%20and%20Diversity%20of%20Borrowers) - As of **June 30, 2025**, the Group had **8 outstanding loans** with a total principal amount of approximately **HKD 85.4 million**, primarily distributed among Hong Kong corporate, Hong Kong individual, and PRC individual borrowers[153](index=153&type=chunk)[155](index=155&type=chunk) Summary of Outstanding Loans (HKD Thousand) | Borrower | Identity | Location | Outstanding Principal Amount | Impairment | Net Outstanding Principal Amount | Percentage of Total Net Amount | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Borrower B | Individual | PRC | 10,952 | (7,118) | 3,834 | 13.3% | | Borrower C | Individual | Hong Kong | 6,500 | – | 6,500 | 22.5% | | Borrower D | Individual | PRC | 5,476 | – | 5,476 | 18.9% | | Borrower E | Individual | PRC | 5,082 | (5,082) | – | 0.0% | | Borrower F | Individual | Hong Kong | 22,000 | (22,000) | – | 0.0% | | Borrower G | Corporate | Hong Kong | 22,200 | (22,200) | – | 0.0% | | Borrower I | Individual | PRC | 3,286 | (6) | 3,280 | 11.3% | | Borrower J | Individual | PRC | 9,860 | (27) | 9,833 | 34.0% | | **Total** | | | **85,356** | **(56,433)** | **28,923** | | - Due to economic challenges in Hong Kong and the PRC, some borrowers faced financial difficulties, leading to failure to repay loans and interest on time, prompting the Group to recognize impairment losses on these loans[159](index=159&type=chunk)[160](index=160&type=chunk)[168](index=168&type=chunk) [Expected Credit Loss (ECL) Allowances Analysis](index=41&type=section&id=ECL%20Allowances%20Analysis) Changes in Expected Credit Loss (ECL) Allowances (HKD Thousand) | Stage | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Stage 1 | 34 | 298 | | Stage 2 | – | – | | Stage 3 | 59,495 | 51,278 | | **Total** | **59,529** | **51,576** | - Expected credit loss allowances for Stage 3 (credit-impaired) significantly increased, reflecting the Group's prudent assessment and full impairment recognition for overdue loans[168](index=168&type=chunk)[170](index=170&type=chunk) [Financial Performance](index=42&type=section&id=Financial%20Performance) Financial Performance of Money Lending Business (HKD Thousand) | Metric | 2025 | 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Interest income | 4,900 | 2,700 | +81.5% | | Operating profit (excluding ECL allowance) | 3,100 | 1,100 | +181.8% | - The increase in interest income and operating profit was primarily due to an increase in average loan balances and higher average interest rates upon renewal of some loans[171](index=171&type=chunk)[174](index=174&type=chunk) [Properties in Hong Kong](index=42&type=section&id=Properties%20in%20Hong%20Kong) Due to a gradual decline in Hong Kong commercial property market prices since 2023, the Group recorded a revaluation loss of approximately HKD 5.7 million on commercial properties as of June 30, 2025 Revaluation Loss on Commercial Properties (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revaluation loss | (5,700) | (10,800) | - Hong Kong commercial property market prices and confidence have gradually declined since **2023**, leading to revaluation losses[172](index=172&type=chunk)[175](index=175&type=chunk) [Investments in Financial Assets](index=42&type=section&id=Investments%20in%20Financial%20Assets) The Group continuously reviews its investment portfolio to generate reasonable returns. In FY2025, a net unrealized fair value gain of approximately HKD 0.144 million was recorded, primarily from investments in shares of companies listed on the Stock Exchange Market Value of Financial Asset Investments (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Market value of financial assets | 548 | 405 | Unrealized Fair Value Gain on Financial Assets (HKD) | Share Name (Stock Code) | Unrealized Fair Value Gain | | :--- | :--- | | Alibaba Group Holding Limited (9988) | 11,790 | | Meituan (3690) | 1,420 | | Tencent Holdings Limited (700) | 130,600 | - The Group's investment strategy involves continuously reviewing its investment portfolio and making adjustments based on market conditions to generate reasonable returns[173](index=173&type=chunk)[176](index=176&type=chunk) [Outlook](index=44&type=section&id=Outlook) [Environmental and Cleaning Services in Hong Kong Outlook](index=44&type=section&id=Environmental%20and%20Cleaning%20Services%20in%20Hong%20Kong) Increased competition in Hong Kong's labor market and a rise in the statutory minimum wage have led to higher labor costs and increased turnover. The Group will address these challenges by passing on costs, improving efficiency, strengthening marketing and expanding service offerings - The increase in the statutory minimum wage has intensified labor market competition, leading to higher labor costs and increased turnover rates[180](index=180&type=chunk)[181](index=181&type=chunk) - The Group plans to pass on increased labor costs to clients, implement more efficient work processes, and enforce stringent cost controls[181](index=181&type=chunk) - The Group will strengthen marketing efforts, expand its market share in commercial and residential sectors, and explore new environmental and cleaning services to offer one-stop solutions[182](index=182&type=chunk)[186](index=186&type=chunk) [Environmental and Cleaning Services in the PRC Outlook](index=45&type=section&id=Environmental%20and%20Cleaning%20Services%20in%20the%20PRC) Shanghai operations are not expected to significantly improve in the next financial year, but management will enhance marketing strategies, attract new clients, and implement more efficient workflows and cost controls - Shanghai operations are not expected to significantly improve in the next financial year, but management will enhance marketing strategies and implement stricter cost controls[183](index=183&type=chunk)[187](index=187&type=chunk) [Money Lending Business Outlook](index=45&type=section&id=Money%20Lending%20Business) Facing the threat of economic recession in Hong Kong and the PRC, the Group will continue to strengthen risk management policies, streamline its loan portfolio, and adopt a prudent and conservative approach, approving only borrowers with sound financial capabilities - The Group will strengthen risk management policies and streamline its loan portfolio to mitigate risks associated with high-risk loans[184](index=184&type=chunk)[188](index=188&type=chunk) - A prudent and conservative approach will continue to be adopted, considering and approving only borrowers with sound financial capabilities in the future[184](index=184&type=chunk)[188](index=188&type=chunk) [Investments in Financial Assets Outlook](index=45&type=section&id=Investments%20in%20Financial%20Assets) The Group will continue to adopt a prudent and conservative investment strategy, only considering and investing in Stock Exchange-listed companies with promising value prospects in the future - The Group will continue to adopt a prudent and conservative investment strategy, only considering and investing in Stock Exchange-listed companies with promising value prospects in the future[185](index=185&type=chunk)[189](index=189&type=chunk) [Financial Review](index=46&type=section&id=Financial%20Review) [Revenue](index=46&type=section&id=Revenue) In FY2025, the Group's total revenue was approximately HKD 502.4 million, a 2.9% year-on-year increase, primarily driven by growth in Hong Kong environmental and cleaning services and increased interest income from the money lending business Revenue Overview (HKD Thousand) | Metric | 2025 | 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Total revenue | 502,400 | 488,100 | +2.9% | - Revenue growth primarily stemmed from the Hong Kong environmental and cleaning services business (an increase of **HKD 12.3 million**) and interest income from the money lending business (an increase of **HKD 2.2 million**)[190](index=190&type=chunk)[196](index=196&type=chunk) [Other Income, Other Gains and Other Losses and Impairment](index=46&type=section&id=Other%20Income%2C%20Other%20Gains%20and%20Other%20Losses%20and%20Impairment) The Group's other income, gains, and losses were primarily affected by revaluation losses on commercial properties (HKD 5.7 million) and impairment losses on loans and interest receivables from the money lending business (HKD 7.8 million) - Primarily includes revaluation losses on commercial properties of approximately **HKD 5.7 million** (2024: HKD 10.8 million)[191](index=191&type=chunk)[197](index=197&type=chunk) - Impairment losses on loans and interest receivables from the money lending business of approximately **HKD 7.8 million** (2024: net reversal of approximately HKD 1.5 million)[191](index=191&type=chunk)[197](index=197&type=chunk) [Selling, Marketing Expenses and Administrative Expenses](index=46&type=section&id=Selling%2C%20Marketing%20Expenses%20and%20Administrative%20Expenses) In FY2025, selling, marketing, and administrative expenses increased by approximately HKD 1 million to HKD 28.3 million, mainly due to increased advertising, promotion, travel, and general office expenses at the Group's headquarters Selling, Marketing and Administrative Expenses (HKD Thousand) | Metric | 2025 | 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Selling, marketing and administrative expenses | 28,300 | 27,300 | +1,000 | - The increase was primarily due to higher advertising and promotion expenses, travel expenses, and general office expenses at the Group's headquarters[192](index=192&type=chunk)[198](index=198&type=chunk) [Dividend](index=46&type=section&id=Dividend) The Board does not recommend the payment of any dividend for the year ended June 30, 2025 - The Board does not recommend a dividend for FY2025[193](index=193&type=chunk)[199](index=199&type=chunk) [Capital Structure and Fund Raising Activities](index=46&type=section&id=Capital%20Structure%20and%20Fund%20Raising%20Activities) The Company's shares are listed on GEM of the Stock Exchange, and its share capital comprises solely ordinary shares - The Company's shares are listed on GEM of the Stock Exchange, and its share capital comprises solely ordinary shares[194](index=194&type=chunk)[200](index=200&type=chunk) [Liquidity and Financial Resources](index=46&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's liquidity position is strong and robust, with increased cash and cash equivalents, and healthy net current assets and current ratio. The gearing ratio slightly increased Liquidity Overview (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 110,900 | 103,200 | | Net current assets | 135,500 | 131,000 | | Current ratio | 2.3 times | 2.3 times | Gearing Ratio | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total interest-bearing borrowings | 20,638 | 20,941 | | Total equity | 190,633 | 196,809 | | Gearing ratio | 10.83% | 10.64% | - The Board believes the Group's financial position is strong and robust, with sufficient resources to support operations and meet capital expenditures[205](index=205&type=chunk)[208](index=208&type=chunk) [Charges on the Group's Assets](index=47&type=section&id=Charges%20on%20the%20Group's%20Assets) As of June 30, 2025, approximately HKD 5.8 million in bank deposits and HKD 35.7 million in properties were pledged to banks as collateral for bank guarantees and bank financing - Approximately **HKD 5.8 million** in bank deposits has been pledged to banks as collateral for bank guarantees for performance bonds and bank financing[206](index=206&type=chunk)[209](index=209&type=chunk) - Properties with a carrying amount of approximately **HKD 35.7 million** have been pledged to banks as collateral for bank loans, bank guarantees for performance bonds, and bank financing[207](index=207&type=chunk)[209](index=209&type=chunk) [Foreign Exchange Exposure](index=48&type=section&id=Foreign%20Exchange%20Exposure) The Group's primary operations are in Hong Kong, with most transactions denominated in HKD. Fluctuations in RMB against HKD from PRC operations pose foreign exchange risk, but volatility was moderate during the period, and the Group will review and hedge currency risks periodically - The Group's principal operations are located in Hong Kong, with most transactions, assets, and liabilities denominated in Hong Kong Dollars[210](index=210&type=chunk)[214](index=214&type=chunk) - Fluctuations in the RMB against HKD arising from PRC environmental and cleaning services and money lending businesses pose foreign exchange risk, but volatility was moderate during the period[210](index=210&type=chunk)[214](index=214&type=chunk) - The Group will review and monitor currency risks from time to time and hedge when appropriate[210](index=210&type=chunk)[214](index=214&type=chunk) [Information on Employees](index=48&type=section&id=Information%20on%20Employees) As of year-end, the Group had 1,262 employees, a decrease from the previous year. The Group offers competitive remuneration and benefits, along with training, with total staff costs for FY2025 amounting to approximately HKD 253 million Number of Employees and Staff Costs (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Number of employees | 1,262 | 1,329 | | Total staff costs | 253,000 | 260,000 | - The Group's remuneration practices are market-aligned, determined by performance, qualifications, and experience, and include competitive compensation plans and training[211](index=211&type=chunk)[215](index=215&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, and Future Plans for Material Investments or Capital Assets & Capital Expenditure](index=48&type=section&id=Significant%20Investments%20Held%2C%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets%20%26%20Capital%20Expenditure) As of June 30, 2025, the Group held no significant investments, nor did it undertake any material acquisitions or disposals of subsidiaries. Capital expenditure for FY2025 primarily involved the acquisition of plant and equipment totaling approximately HKD 2.6 million, funded by operating activities - As of **June 30, 2025**, the Group held no significant investments, nor did it undertake any material acquisitions or disposals of subsidiaries[212](index=212&type=chunk)[216](index=216&type=chunk) - Capital expenditure for FY2025 primarily involved the acquisition of plant and equipment totaling approximately **HKD 2.6 million**, funded by operating activities[213](index=213&type=chunk)[217](index=217&type=chunk) [Other Information](index=49&type=section&id=Other%20Information) [Contingent Liabilities](index=49&type=section&id=CONTINGENT%20LIABILITIES) As of June 30, 2025, the Group's contingent liabilities primarily included performance guarantees for environmental and cleaning service contracts, secured by bank deposits, property pledges, and corporate guarantees. Additionally, employee personal injury lawsuits involving the Group have been accounted for in the financial statements and are covered by insurance Performance Guarantee (HKD Thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Performance guarantee | 26,264 | 23,569 | - Performance guarantees are secured by restricted bank deposits of approximately **HKD 5.8 million**, properties of approximately **HKD 35.7 million**, and corporate guarantees[220](index=220&type=chunk)[223](index=223&type=chunk) - Employee personal injury lawsuits involving the Group have been accounted for in the consolidated financial statements and are covered by insurance, with the Directors believing there are no significant contingent liabilities[222](index=222&type=chunk)[224](index=224&type=chunk) [Purchase, Sale or Redemption of Shares](index=50&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20SHARES) For the year ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any shares - In FY2025, neither the Company nor its subsidiaries engaged in any share purchases, sales, or redemptions[226](index=226&type=chunk)[230](index=230&type=chunk) [Corporate Governance Practices](index=50&type=section&id=CORPORATE%20GOVERNANCE%20PRACTICES) The Company is committed to maintaining high standards of corporate governance and complies with the GEM Listing Rules' Corporate Governance Code, with two deviations: the roles of Chairman and Chief Executive are not segregated, and non-executive directors do not have specific terms of appointment - The Company complies with the Corporate Governance Code, but the roles of Chairman and Chief Executive are held by the same individual, and non-executive directors do not have specific terms of appointment[228](index=228&type=chunk)[231](index=231&type=chunk)[233](index=233&type=chunk) - The Board believes the existing oversight mechanisms are sufficient to protect shareholders' interests, and non-executive directors are subject to retirement by rotation and re-election[233](index=233&type=chunk) [Audit Committee](index=50&type=section&id=AUDIT%20COMMITTEE) The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's accounting principles, practices, and consolidated financial statements, deeming them compliant with applicable accounting standards and GEM Listing Rules - The Audit Committee, composed of **three independent non-executive directors**, has reviewed the Group's accounting principles and consolidated financial statements[229](index=229&type=chunk)[232](index=232&type=chunk) - The Audit Committee believes the consolidated financial statements comply with applicable accounting standards and GEM Listing Rules, and adequate disclosures have been made[229](index=229&type=chunk)[232](index=232&type=chunk) [Review of Preliminary Announcement](index=51&type=section&id=REVIEW%20OF%20PRELIMINARY%20ANNOUNCEMENT) The Group's auditor, TMF Hong Kong CPA Limited, has agreed that the data in the preliminary announcement is consistent with the audited consolidated financial statements, but their work does not constitute an assurance engagement, thus no assurance is provided on the preliminary announcement - The Group's auditor has agreed that the preliminary announcement data is consistent with the audited consolidated financial statements[234](index=234&type=chunk)[236](index=236&type=chunk) - The auditor's work does not constitute an assurance engagement, therefore no assurance is provided on the preliminary announcement[234](index=234&type=chunk)[236](index=236&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Okura Holdings Limited （於香港註冊成立的有限公司） （股份代號：01655） 截至2025年6月30日止年度 全年業績公告 財務摘要 附註： 以上百分比上升╱下跌指關於日圓（「日圓」）金額的變動。 – 1 – • 2025財年的總投注增加約2.2%至約32,556百萬日圓（2024財年：約31,850百萬日圓）。 • 2025財年的收入減少約1.3%至約6,396百萬日圓（2024財年：約6,483百萬日圓）。 • 2025財年的經營利潤減少約31.6%至約1,366百萬日圓（2024財年：約1,996百萬日 圓）。 • 2025財年的除所得稅前利潤減少約32.5%至約1,286百萬日圓（2024財年：約1,904百 萬日圓）。 • 2025財年歸屬於本公司股東的年度利潤減少約34.3%至約1,342百萬日圓（2024財年： 約2,044百萬日圓）。 • 2025財年的基本及攤薄每 ...

Financial Performance - Revenue for the six months ended June 30, 2025, increased to RMB 133,605,000, up 27.2% from RMB 105,104,000 in 2024[14] - Gross profit rose to RMB 79,060,000, representing a 52.5% increase compared to RMB 51,877,000 in the previous year[14] - Profit before income tax reached RMB 42,797,000, a 65.5% increase from RMB 25,864,000 in 2024[14] - Profit attributable to owners of the Company for the period was RMB 36,403,000, up 78.1% from RMB 20,446,000 in 2024[14] - Basic and diluted earnings per share increased to RMB 0.036, compared to RMB 0.020 in the previous year[14] - The Group's total revenue for the six months ended June 30, 2025, was approximately RMB 133.6 million, representing an increase of approximately 27.1% compared to RMB 105.1 million for the same period in 2024[42] - Profit attributable to owners of the Company for the same period was approximately RMB 36.4 million, reflecting a significant year-on-year increase of approximately 78.4%[23] - Gross profit increased from approximately RMB 51.9 million for the six months ended June 30, 2024, to approximately RMB 79.1 million for the six months ended June 30, 2025[24] - The overall gross profit margin improved from approximately 49.4% to approximately 59.2% during the same period[24] - Operating profit rose to RMB 45.1 million, up from RMB 29.3 million in 2024, reflecting a growth of 53.6%[159] - The total comprehensive income for the period was RMB 35.6 million, compared to RMB 18.9 million in 2024, an increase of 88.8%[160] Business Operations - The Group is the only company in Laizhou city, Shandong province, with a hazardous waste business license granted by Yantai Ecological Environment Bureau[16] - The Group focuses on gold mine hazardous waste treatment and resource recovery, leveraging its expertise to detoxify cyanide tailings and recover economically valuable resources[15] - Revenue from gold mine hazardous waste treatment services, sales of pyrite concentrate, and sales of products from the reprocessing of pyrite concentrate accounted for approximately 96.4% of total revenue for the six months ended June 30, 2025[41] - The Group aims to expand profit margins by reprocessing pyrite concentrates to produce sulfuric acid, iron powder, and electricity for downstream customers[15] - The project for recovering valuable elements from high-silicon cyanide tailings is expected to set a new benchmark in hazardous waste resource utilization[36] - The Group is engaged in hazardous waste treatment services and sales of pyrite concentrate, with operations based in Laizhou, Shandong province, China[174] Financial Position - Total assets increased to RMB 937,649,000 as of June 30, 2025, compared to RMB 921,193,000 as of December 31, 2024, reflecting a growth of 1.5%[164] - Current liabilities decreased to RMB 228,515,000 from RMB 248,462,000, a reduction of 8.0%[164] - Total liabilities decreased to RMB 359,168,000 from RMB 378,290,000, a reduction of 5.1%[164] - The Group had net current liabilities of approximately RMB 87.9 million as of June 30, 2025, compared to RMB 56.8 million as of December 31, 2024[80] - The gearing ratio as of June 30, 2025, was approximately 41.6%, down from 47.1% as of December 31, 2024[80] - The debt-to-equity ratio as of June 30, 2025, was approximately 41.6%, compared to 47.1% as of December 31, 2024[83] - Cash and cash equivalents decreased to RMB 51,185,000 from RMB 65,213,000, a decline of 21.5%[164] Expenses and Costs - Administrative expenses for the six months ended June 30, 2025, were approximately RMB 33.5 million, representing an increase of approximately 45.0% compared to RMB 23.1 million for the same period in 2024[55] - The increase in administrative expenses was primarily due to employee benefits rising by approximately RMB 3.0 million and professional and consulting fees increasing by approximately RMB 2.7 million[58] - Selling expenses remained stable at approximately RMB 1.6 million for the six months ended June 30, 2025, despite the increase in revenue[50] - Net finance costs decreased to approximately RMB 2.3 million for the six months ended June 30, 2025, a reduction of approximately 34.3% compared to RMB 3.5 million for the same period in 2024[57] - Other income decreased from approximately RMB 2.3 million to approximately RMB 1.1 million, representing a decrease of approximately 52.2%[49] Research and Development - The Group is focusing on R&D investment to enhance the comprehensive utilization of hazardous waste resources and has made progress in developing new products such as sulfamic acid and magnesium fertilizers[26] - Research and development capabilities received 3.9% of net proceeds, amounting to RMB 8.5 million, aimed at enhancing existing products and diversifying offerings[150] Corporate Governance and Compliance - The Company confirmed compliance with the required standards set out in the Model Code and its own code of conduct during the Reporting Period[134] - The Company has adopted and complied with the Corporate Governance Code during the Reporting Period to enhance corporate value and accountability[135] - The audit committee reviewed the unaudited interim results of the Group for the Reporting Period[138] Shareholder Information - The Board did not recommend the payment of any interim dividend for the six months ended June 30, 2025[99] - Mr. Liu held 589,500,000 shares, representing 58.95% of the Company, through Zeming International Investment Co., Ltd[84] - Ms. Li Liyan, as the spouse of Mr. Liu, held 624,230,000 shares, representing 62.42% of the Company[84] - The Group's capital structure remained unchanged during the reporting period, comprising only ordinary shares[83] Financial Risk Management - The Group is exposed to various financial risks, including market risk, credit risk, and liquidity risk[198] - The Group's financial risk management program focuses on minimizing potential adverse effects on financial performance due to market unpredictability[194] - The interim financial statements do not include all financial risk management information required in the annual financial statements[195]

Company Information [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) ISDN Holdings Limited is a Singapore-incorporated public company listed on SGX and HKEX, with core businesses in technology, management, and engineering solutions - The company's registration number is 200416788Z, with its registered office located at 101 Defu Lane 10, Singapore[5](index=5&type=chunk) - The company is listed on the SGX and HKEX Main Boards[17](index=17&type=chunk) - Its principal activities include technology consulting, training, and management services, while its subsidiaries focus on motion control, industrial computing, specialized engineering solutions, and hydropower plant construction[17](index=17&type=chunk) - The immediate and ultimate holding company is Assetraise Holdings Limited, beneficially owned by Mr. Teo Cher Koon, the company's President and Managing Director, and his spouse, Mdm. Tang Yoke Keng[17](index=17&type=chunk) [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The Board, chaired by Mr. Tan Soon Liang, includes several directors and operates with key committees to ensure effective corporate governance - Board members include Chairman Mr. Tan Soon Liang, Mr. Teo Cher Koon, Mr. Kong De Yang, Mr. Toh Hsiang-Wen Keith, Mr. Soh Gim Teik, and Ms. Ong Siew Ling[5](index=5&type=chunk) - The Audit Committee, Remuneration Committee, Nominating Committee, and Risk Management Committee are all chaired by independent non-executive directors, ensuring independent oversight[5](index=5&type=chunk) Condensed Consolidated Statement of Comprehensive Income [H1 2025 Financial Performance](index=4&type=section&id=H1%202025%20Financial%20Performance) For H1 2025, the Group's revenue significantly increased, but profit for the period and total comprehensive loss both decreased due to higher other operating expenses, primarily unrealized exchange losses, leading to a corresponding reduction in basic earnings per share Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (S$ thousand) | 2024 (S$ thousand) | Change (S$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 212,895 | 174,573 | 38,322 | 22.0% | | Cost of Sales | (162,367) | (130,180) | (32,187) | 24.7% | | Gross Profit | 50,528 | 44,393 | 6,135 | 13.8% | | Other Operating Income | 1,488 | 1,959 | (471) | -24.0% | | Distribution Costs | (15,099) | (14,381) | (718) | 5.0% | | Administrative Expenses | (19,459) | (19,775) | 316 | -1.6% | | Net Impairment Gain/(Loss) on Financial Assets | 13 | (77) | 90 | -116.9% | | Other Operating Expenses | (7,069) | (690) | (6,379) | 924.5% | | Finance Costs | (2,536) | (2,767) | 231 | -8.3% | | Share of Loss of Associates, Net | (391) | (147) | (244) | 166.0% | | Profit Before Income Tax | 7,475 | 8,515 | (1,040) | -12.2% | | Income Tax | (3,628) | (2,709) | (919) | 33.9% | | Profit for the Period | 3,847 | 5,806 | (1,959) | -33.7% | | Total Comprehensive (Loss)/Income for the Period | (1,813) | 5,953 | (7,766) | -130.5% | | Profit for the Period Attributable to Owners of the Company | 1,286 | 3,781 | (2,495) | -66.0% | | Profit for the Period Attributable to Non-Controlling Interests | 2,561 | 2,025 | 536 | 26.5% | | Basic Earnings Per Share Attributable to Owners of the Company (Singapore cents) | 0.29 | 0.85 | (0.56) | -65.9% | - Revenue increased by **22.0%** year-on-year to **S$212,895 thousand**, primarily driven by growth in industrial automation and renewable energy businesses[10](index=10&type=chunk)[80](index=80&type=chunk) - Gross profit increased by **13.8%** to **S$50,528 thousand**, but the gross profit margin decreased from **25.4%** to **23.7%**, mainly due to lower profit margins from renewable energy construction revenue[10](index=10&type=chunk)[102](index=102&type=chunk)[105](index=105&type=chunk) - Profit for the period decreased by **33.7%** to **S$3,847 thousand**, primarily due to a significant increase in other operating expenses, including **S$5.3 million** in unrealized foreign exchange losses[10](index=10&type=chunk)[89](index=89&type=chunk)[110](index=110&type=chunk) - Basic earnings per share attributable to owners of the company decreased from **0.85 Singapore cents** to **0.29 Singapore cents**[10](index=10&type=chunk)[48](index=48&type=chunk) Condensed Consolidated Statement of Financial Position [H1 2025 Statement of Financial Position](index=5&type=section&id=H1%202025%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly increased, with significant growth in non-current service concession receivables and goodwill; total current assets decreased while total current liabilities increased, leading to a lower quick ratio Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (S$ thousand) | December 31, 2024 (S$ thousand) | Change (S$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Total Non-Current Assets | 189,765 | 169,527 | 20,238 | 11.9% | | - Service Concession Receivables | 102,144 | 81,654 | 20,490 | 25.1% | | - Goodwill | 14,904 | 12,911 | 1,993 | 15.4% | | Total Current Assets | 233,601 | 246,378 | (12,777) | -5.2% | | - Trade and Other Receivables and Contract Assets | 106,929 | 119,455 | (12,526) | -10.5% | | - Cash and Bank Balances | 56,071 | 56,519 | (448) | -0.8% | | **Total Assets** | **423,366** | **415,905** | **7,461** | **1.8%** | | **Equity and Liabilities** | | | | | | Total Equity | 245,192 | 247,212 | (2,020) | -0.8% | | Total Non-Current Liabilities | 47,253 | 55,519 | (8,266) | -14.9% | | Total Current Liabilities | 130,921 | 113,174 | 17,747 | 15.7% | | - Bank Borrowings (Current) | 29,731 | 21,227 | 8,504 | 40.1% | | - Trade and Other Payables | 81,380 | 74,709 | 6,671 | 8.9% | | **Total Liabilities** | **178,174** | **168,693** | **9,481** | **5.6%** | | **Total Equity and Liabilities** | **423,366** | **415,905** | **7,461** | **1.8%** | - Total assets increased by **1.8%** to **S$423,366 thousand**, primarily driven by non-current service concession receivables (up **25.1%**) and goodwill (up **15.4%**)[11](index=11&type=chunk) - Total current assets decreased by **5.2%**, with trade and other receivables and contract assets decreasing by **10.5%**[11](index=11&type=chunk)[119](index=119&type=chunk) - Total current liabilities increased by **15.7%**, mainly due to an increase in current bank borrowings and trade and other payables[11](index=11&type=chunk)[120](index=120&type=chunk)[123](index=123&type=chunk) - The quick ratio decreased from **1.6 times** as of December 31, 2024, to **1.3 times** as of June 30, 2025[130](index=130&type=chunk) Condensed Consolidated Statement of Changes in Equity [H1 2025 Changes in Equity](index=6&type=section&id=H1%202025%20Changes%20in%20Equity) For the six months ended June 30

[Important Notice](index=2&type=section&id=Important%20Notice) The Board approved the 2025 semi-annual profit distribution plan, proposing a cash dividend of RMB 1.80 per 10 shares, and confirmed no significant risks or irregularities - For the first half of 2025, a cash dividend of **RMB 1.80 (tax inclusive) per 10 shares** is proposed to all shareholders[4](index=4&type=chunk) - The cash dividend amount represents **31.45%** of the net profit attributable to ordinary shareholders after deducting perpetual bond interest for the current period[4](index=4&type=chunk) - This profit distribution plan falls within the scope of authority delegated to the Board by the 2024 Annual General Meeting, requiring no further shareholder approval[4](index=4&type=chunk) - During the reporting period, the company had no significant risk matters, non-operating fund occupation by controlling shareholders or other related parties, or external guarantees in violation of decision-making procedures[6](index=6&type=chunk)[8](index=8&type=chunk) [Section I Definitions](index=5&type=section&id=Section%20I%20Definitions) This section defines common terms used in the report, covering company stock types (A-shares, H-shares), governance bodies, key subsidiaries, and specific mining rights, ensuring clear understanding - The report defines A-shares and H-shares as the company's stocks listed on the Shanghai Stock Exchange and Hong Kong Stock Exchange, respectively[13](index=13&type=chunk) - Terms related to corporate governance, such as 'Articles of Association,' 'Board of Directors,' and 'Board of Supervisors,' are clearly defined[13](index=13&type=chunk) - Major subsidiaries and related parties, including Cardino Company, Changtai Mining, Chifeng Chaikuang, and Gold Group, are listed[13](index=13&type=chunk)[15](index=15&type=chunk) - The 'reporting period' is defined as January 1, 2025, to June 30, 2025[15](index=15&type=chunk) [Section II Company Profile and Key Financial Indicators](index=7&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's basic information, contact details, registration changes, disclosure channels, and stock overview, alongside key financial data and indicators for the reporting period, highlighting significant revenue and net profit growth and explaining non-recurring items - The company's legal representative is Han Yaodong, and its registered address is No. 2503 Jingshi Road, Licheng District, Jinan City[16](index=16&type=chunk)[19](index=19&type=chunk) - The company's A-shares are listed on the Shanghai Stock Exchange (stock code **600547**), and H-shares on the Hong Kong Stock Exchange (stock code **1787**)[21](index=21&type=chunk) - Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 56,765,895,355.68 | 45,773,494,698.05 | 24.01 | | Total Profit | 5,483,379,971.67 | 2,808,667,998.73 | 95.23 | | Net Profit Attributable to Shareholders | 2,808,157,860.93 | 1,383,466,282.99 | 102.98 | | Net Cash Flow from Operating Activities | 10,502,900,464.64 | 5,779,663,161.40 | 81.72 | | Basic Earnings Per Share | 0.57 | 0.26 | 120.11 | | Weighted Average Return on Net Assets | 9.81 | 5.01 | Increased by 4.80 percentage points | - Net profit attributable to ordinary shareholders for the current reporting period was **RMB 2.56 billion**, after deducting the impact of perpetual bond interest[25](index=25&type=chunk) - Total non-recurring gains and losses amounted to **RMB -1.34 million**, primarily comprising non-current asset disposal gains/losses, government grants, and fair value change gains/losses[29](index=29&type=chunk)[30](index=30&type=chunk) [I. Company Information](index=7&type=section&id=I.%20Company%20Information) This section provides the company's basic registration information, including its full Chinese and foreign names, abbreviations, and the name of its legal representative - The company's Chinese name is Shandong Gold Mining Co., Ltd., abbreviated as Shandong Gold[16](index=16&type=chunk) - The company's legal representative is Han Yaodong[16](index=16&type=chunk) [II. Contact Person and Contact Information](index=7&type=section&id=II.%20Contact%20Person%20and%20Contact%20Information) This section lists the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative, facilitating investor communication and inquiries - The Board Secretary is Wang Yi, and the Securities Affairs Representative is Zhang Ruying[18](index=18&type=chunk) - The contact address for both is No. 2503 Jingshi Road, Licheng District, Jinan City, with telephone 0531-67710376, fax 0531-67710380, and email hj600547@163.com[18](index=18&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=7&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) This section introduces the historical changes in the company's registered address and provides its current office address, postal code, company website, and email address - The company's registered address changed to No. 2503 Jingshi Road, Licheng District, Jinan City on January 26, 2021[19](index=19&type=chunk) - The company's website is www.sdhjgf.com.cn, and its email address is hj600547@163.com[19](index=19&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=8&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Storage%20Locations) This section specifies the company's designated newspapers for information disclosure, the website address for publishing semi-annual reports, and the location where the company's semi-annual reports are kept - The company's designated newspapers for information disclosure include "China Securities Journal," "Shanghai Securities News," "Securities Times," and "Securities Daily"[21](index=21&type=chunk) - The semi-annual report is published on www.sse.com.cn, and the storage location is the company's Board of Directors Office[21](index=21&type=chunk) [V. Brief Introduction to Company Shares](index=8&type=section&id=V.%20Brief%20Introduction%20to%20Company%20Shares) This section briefly introduces the company's A-share and H-share information listed on the Shanghai Stock Exchange and Hong Kong Stock Exchange - The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation Shandong Gold and stock code **600547**[21](index=21&type=chunk) - The company's H-shares are listed on the Hong Kong Stock Exchange, with stock abbreviation Shandong Gold and stock code **1787**[21](index=21&type=chunk) [VII. Key Accounting Data and Financial Indicators](index=8&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section discloses the company's key accounting data and financial indicators for the first half of 2025, showing significant year-on-year growth in operating revenue, total profit, net profit attributable to shareholders, and net cash flow from operating activities, with notable improvements in earnings per share and return on net assets - Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 56,765,895,355.68 | 45,773,494,698.05 | 24.01 | | Total Profit | 5,483,379,971.67 | 2,808,667,998.73 | 95.23 | | Net Profit Attributable to Shareholders | 2,808,157,860.93 | 1,383,466,282.99 | 102.98 | | Net Cash Flow from Operating Activities | 10,502,900,464.64 | 5,779,663,161.40 | 81.72 | | Net Assets Attributable to Shareholders (Period-end) | 42,268,162,873.31 | 37,797,504,973.11 | 11.83 | | Total Assets (Period-end) | 166,019,138,787.86 | 160,659,954,188.36 | 3.34 | - Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.57 | 0.26 | 120.11 | | Diluted Earnings Per Share (RMB/share) | 0.57 | 0.26 | 120.11 | | Basic Earnings Per Share after Non-recurring Items (RMB/share) | 0.57 | 0.27 | 110.96 | | Weighted Average Return on Net Assets (%) | 9.81 | 5.01 | Increased by 4.80 percentage points | | Weighted Average Return on Net Assets after Non-recurring Items (%) | 9.81 | 5.14 | Increased by 4.67 percentage points | - The aforementioned key financial indicators have excluded the impact of perpetual bonds and interest, with net profit attributable to ordinary shareholders for the current reporting period being **RMB 2.56 billion**[25](index=25&type=chunk) [IX. Non-recurring Gains and Losses and Amounts](index=10&type=section&id=IX.%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) This section details the non-recurring gains and losses and their amounts for the reporting period, totaling RMB -1.34 million, and explains why certain items were not classified as non-recurring - Non-recurring Gains and Losses and Amounts for H1 2025 | Non-recurring Item | Amount (RMB) | | :--- | :--- | | Gains/losses from disposal of non-current assets | –4,563,258.95 | | Government grants recognized in current profit/loss | 4,005,130.91 | | Gains/losses from changes in fair value and disposal of financial assets and liabilities held by non-financial enterprises | –15,758,494.02 | | Gains/losses from entrusted investments or asset management | 14,159,408.02 | | Other non-operating income and expenses | 3,722,750.30 | | Less: Income tax impact | 6,692,882.39 | | Minority interest impact (after tax) | –3,782,628.23 | | Total | –1,344,717.90 | - The investment business conducted by the company's subsidiary, Shandong Gold Financial Holdings Capital Management Co., Ltd., and its subsidiaries is directly related to normal operating activities, so their fair value changes in financial assets and liabilities are not classified as non-recurring gains and losses[30](index=30&type=chunk) - Custody fee income of **RMB 1.89 million** from entrusted operations is not classified as non-recurring gains and losses, as it is fixed income with a long-term valid agreement[32](index=32&type=chunk) [Section III Management Discussion and Analysis](index=12&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section comprehensively reviews the company's operating performance for the first half of 2025, including main business, industry analysis, core competitiveness, financial data changes, and investment status, highlighting significant gold production growth and record-high economic indicators, while also addressing risks and the implementation of the "Quality Improvement, Efficiency Enhancement, and Shareholder Returns" action plan - In the first half of 2025, the company's mineral gold production was **24.71 tons**, with self-produced gold sales of **23.60 tons**, and operating revenue reached **RMB 56.77 billion**, a **24.01%** year-on-year increase[49](index=49&type=chunk) - Net profit attributable to shareholders was **RMB 2.81 billion**, a **102.98%** year-on-year increase, and basic earnings per share was **RMB 0.57**, a **120.11%** year-on-year increase, both reaching historical highs for the same period[49](index=49&type=chunk) - The company continued to intensify geological exploration, completing a cumulative exploration workload of **293,000 meters** in the first half of the year, adding **18.8 tons** of gold metal reserves[52](index=52&type=chunk) - During the reporting period, the company completed safety-related special investments of **RMB 516 million**, a **27.96%** year-on-year increase, and was awarded the "Outstanding Contribution Award for Green Mines"[54](index=54&type=chunk) - The company regularly implements semi-annual dividends, with a proposed cash dividend of **RMB 1.80 (tax inclusive) per 10 shares** for H1 2025, totaling approximately **RMB 805 million**[55](index=55&type=chunk) [I. Explanation of the Company's Industry and Main Business Operations during the Reporting Period](index=12&type=section&id=I.%20Explanation%20of%20the%20Company's%20Industry%20and%20Main%20Business%20Operations%20during%20the%20Reporting%20Period) This section details the company's business scope, operating model, and industry analysis for the reporting period, highlighting its comprehensive gold and non-ferrous metal value chain, commitment to scaled, lean, technologically innovative, and green development, and its leading position in the domestic gold production sector amidst rising gold prices driven by global geopolitical and economic factors - The company's business scope includes the exploration, mining, beneficiation, and sale of gold and non-ferrous metals, as well as the production and sale of specialized mining equipment and building decoration materials[35](index=35&type=chunk) - Its main products are standard gold ingots, investment gold bars, doré gold, and silver ingots[35](index=35&type=chunk) - The company's mines are located in various regions of China, as well as in Argentina, Ghana, Namibia, and other overseas countries[35](index=35&type=chunk) - The operating model includes scaled production (total excavation volume increased by **29.36%** year-on-year, beneficiation processing volume increased by **23.36%** year-on-year), lean operation management (overall beneficiation recovery rate increased by **0.23** percentage points), technology-driven innovation (R&D investment of **RMB 372 million**, a **38.30%** year-on-year increase), and safe and green development (21 mines listed as national or provincial green mines)[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - During the reporting period, international spot gold prices peaked at **USD 3,500/ounce**, an increase of approximately **25.8%** from the year-end closing price[42](index=42&type=chunk) - The company's mineral gold production was **24.71 tons**, accounting for **17.72%** of domestic mining enterprises' mineral gold production, with overseas mines contributing **5.67 tons**, solidifying its industry leadership[46](index=46&type=chunk) [(I) Business Scope](index=12&type=section&id=(I)%20Business%20Scope) The company primarily engages in the exploration, mining, beneficiation, and sale of gold and non-ferrous metals, producing standard gold ingots, investment gold bars, doré gold, and silver ingots, with mines across China and several overseas countries, supported by a complete industrial chain and R&D system - The company's business scope includes the exploration, mining, beneficiation, and sale of gold and non-ferrous metals, as well as the production and sale of specialized mining equipment and building decoration materials[35](index=35&type=chunk) - Main products are standard gold ingots, investment gold bars, doré gold, and silver ingots[35](index=35&type=chunk) - The company's mines are distributed across Shandong, Fujian, Inner Mongolia, Gansu, Xinjiang, Jilin, Heilongjiang, Qinghai, and Yunnan in China, as well as in Argentina, Ghana, and Namibia overseas[35](index=35&type=chunk) [(II) Operating Model](index=12&type=section&id=(II)%20Operating%20Model) The company employs a scaled, intensive, and mechanized mining model, with high mechanization rates at its main mines, enhanced efficiency and cost control through lean operations, increased investment in technological innovation, and a commitment to safe and green development, with 21 mines recognized as green mines - The company adopts a decentralized mining and beneficiation, centralized smelting production model, with mechanization rates exceeding **65%** for mining and **100%** for shoveling and transportation at its main mines[36](index=36&type=chunk) - During the reporting period, total excavation volume increased by **29.36%** year-on-year, and beneficiation processing volume increased by **23.36%** year-on-year[36](index=36&type=chunk) - Through lean operation management, the company's overall mine beneficiation and smelting recovery rate increased by **0.23** percentage points[37](index=37&type=chunk) - R&D investment during the reporting period was **RMB 372 million**, a **38.30%** year-on-year increase[38](index=38&type=chunk) - **21** of the company's mines are listed in national or provincial green mine directories (13 national, 8 provincial)[39](index=39&type=chunk) [(III) Industry Situation Analysis during the Reporting Period](index=14&type=section&id=(III)%20Industry%20Situation%20Analysis%20during%20the%20Reporting%20Period) This section analyzes the challenges and opportunities in the gold industry during the reporting period, noting a significant increase in gold prices due to global geopolitical instability and de-dollarization trends, alongside modest growth in domestic gold production and sales, and a substantial increase in exchange trading volume, with the company maintaining its leading position as a major gold producer - Global geopolitical instability and market de-dollarization transactions have significantly strengthened gold's safe-haven and monetary attributes, leading to a substantial increase in gold prices[41](index=41&type=chunk)[42](index=42&type=chunk) - In the first half of 2025, international spot gold prices peaked at **USD 3,500/ounce**, an increase of approximately **25.8%** from the year-end closing price[42](index=42&type=chunk) - In the first half of 2025, domestic raw material gold production was **179.083 tons**, a **0.31%** year-on-year decrease; total national gold production was **252.761 tons**, a **0.44%** year-on-year increase (including imported raw materials)[43](index=43&type=chunk) - In the first half of 2025, the cumulative unilateral transaction volume of gold products on the Shanghai Gold Exchange was approximately **RMB 12.12 trillion**, a **56.46%** year-on-year increase[43](index=43&type=chunk) - The company's mineral gold production was **24.71 tons**, accounting for **17.72%** of domestic mining enterprises' mineral gold production, with overseas mines contributing **5.67 tons**[46](index=46&type=chunk) - The company's Jiaojia Gold Mine, Sanshandao Gold Mine, and Xincheng Gold Mine have been consistently ranked among "China's Top Ten Gold Producing Mines" and "China's Top Ten Gold Mines for Economic Efficiency" for many years[46](index=46&type=chunk) [II. Discussion and Analysis of Operating Performance](index=17&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Performance) In the first half of 2025, the company achieved significant results in production, key project construction, reform and innovation, risk prevention, corporate governance, and Party building, with major economic indicators reaching record highs and gold production increasing substantially, while also making progress in deep well engineering, resource integration, and R&D, and implementing semi-annual dividends - In the first half of 2025, the company's mineral gold production was **24.71 tons**, and self-produced gold sales were **23.60 tons**[49](index=49&type=chunk) - Key Economic Indicators for H1 2025 | Indicator | Amount (RMB) | YoY Increase | | :--- | :--- | :--- | | Operating Revenue | 56.77 billion | 24.01% | | Total Profit | 5.48 billion | 95.23% | | Net Profit Attributable to Shareholders | 2.81 billion | 102.98% | | Weighted Average Return on Net Assets | 9.81% | Increased by 4.80 percentage points | | Basic Earnings Per Share | 0.57 | Increased by 0.31 | - During the reporting period, the company completed a notional investment of **RMB 1.09 billion**, with an engineering volume of **374,800 cubic meters**; the Sanshandao Gold Mine auxiliary shaft project reached a depth of **-1,900 meters**, setting a new domestic deep well record[51](index=51&type=chunk) - In the first half of the year, a cumulative exploration workload of **293,000 meters** was completed, adding **18.8 tons** of gold metal reserves[52](index=52&type=chunk) - R&D investment during the reporting period was **RMB 372 million**, a **38.30%** year-on-year increase, with **137 patent applications** and **127 patents granted**[38](index=38&type=chunk)[53](index=53&type=chunk) - For H1 2025, a cash dividend of **RMB 1.80 (tax inclusive) per 10 shares** is proposed, totaling approximately **RMB 805 million**, representing **31.45%** of the net profit attributable to ordinary shareholders after deducting perpetual bond interest for the current period[55](index=55&type=chunk) [III. Analysis of Core Competitiveness during the Reporting Period](index=21&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20during%20the%20Reporting%20Period) The company's core competitiveness is demonstrated across six areas: strategic leadership, resource reserves, scaled production, technological innovation, talent pool, and brand building, with continuous expansion of resource reserves, multiple major mines producing over 1 ton of gold annually, leading smelting capabilities, breakthroughs in deep well mining and tailings utilization, robust talent development, and enhanced brand image through ESG integration - The company adheres to a "resource-first" strategy, continuously expanding resource reserves and improving resource quality through self-owned mining rights exploration and resource acquisitions[60](index=60&type=chunk) - The company has successively acquired **28.89%** of Shandong Gold International, **70%** of Changtai Mining, and the Xiling Gold Mine exploration right, and acquired **100%** of Osino Resources Corp. and **52.07%** of Yunnan Western Mining Co., Ltd., significantly increasing its resource reserves[60](index=60&type=chunk) - In 2025, the company expects to have **13 mines** producing over **1 ton of gold annually**, and Shandong Gold Smelting Co., Ltd.'s refining capacity will reach **100 tons/year** of standard gold[62](index=62&type=chunk) - The company has achieved leadership in deep well mining, tailings reduction and resource utilization, and refractory ore processing, with the Sanshandao Gold Mine's deep shaft reaching **-1,900 meters**, setting an Asian record[63](index=63&type=chunk) - The company has built three talent teams (management, technical, and skilled) and has been selected as a constituent stock of the SSE 50 and SSE 180 indices, with its Wind ESG rating rising to A-level[64](index=64&type=chunk)[65](index=65&type=chunk) [IV. Analysis of Major Operating Performance during the Reporting Period](index=24&type=section&id=IV.%20Analysis%20of%20Major%20Operating%20Performance%20during%20the%20Reporting%20Period) This section provides a detailed analysis of the company's major operating performance during the reporting period, including changes in financial statement items, asset and liability status, investment activities, and key controlled and associated companies. Operating revenue and costs increased due to higher sales volume and prices of self-produced and purchased gold, while administrative expenses rose due to increased employee compensation and intermediary fees. The company saw increased investment in construction in progress, with overseas assets accounting for 15.24% of total assets. Investment activities included the acquisition of Changtai Mining equity and the establishment of Shandong Gold Materials Co., Ltd., along with hedging derivative investments. The section also covers structured entities, working capital, commitments, and capital-to-debt ratio - 2025 H1 Financial Statement Key Item Changes | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 56,765,895,355.68 | 45,773,494,698.05 | 24.01 | | Operating Cost | 46,854,214,561.98 | 39,292,355,872.23 | 19.25 | | Selling Expenses | 76,378,155.44 | 83,112,784.31 | –8.10 | | Administrative Expenses | 1,679,883,563.25 | 1,295,653,848.09 | 29.66 | | R&D Expenses | 311,539,562.76 | 258,161,998.13 | 20.68 | | Net Cash Flow from Operating Activities | 10,502,900,464.64 | 5,779,663,161.40 | 81.72 | | Net Cash Flow from Investing Activities | –5,314,022,572.11 | –11,205,765,139.01 | Not applicable | | Net Cash Flow from Financing Activities | –4,035,320,857.88 | 5,051,428,811.04 | –179.88 | - The increase in operating revenue was primarily due to increased sales volume and prices of self-produced gold, as well as increased sales prices of purchased gold[68](index=68&type=chunk) - The period-end balance of construction in progress increased by **40.49%** compared to the end of the previous year, mainly due to increased investment in construction in progress by subsidiaries during the current period[72](index=72&type=chunk) - Overseas assets amounted to **RMB 25.303 billion**, accounting for **15.24%** of total assets[73](index=73&type=chunk) - During the reporting period, the company completed the acquisition of **70%** equity in Changtai Mining and established Shandong Gold Materials Co., Ltd. with a registered capital of **RMB 100 million**, having invested **RMB 50 million**[76](index=76&type=chunk)[78](index=78&type=chunk) - The company and its subsidiaries conducted derivative investment activities for hedging purposes, which resulted in no losses after offsetting against changes in spot values during the reporting period, achieving the intended risk management objectives[86](index=86&type=chunk)[90](index=90&type=chunk) - As of June 30, 2025, the Group's capital-to-debt ratio was approximately **171.11%**[102](index=102&type=chunk) [(I) Main Business Analysis](index=24&type=section&id=(I)%20Main%20Business%20Analysis) This section analyzes the changes in the company's financial statement items, noting that both operating revenue and costs increased due to higher sales volume and prices of self-produced and purchased gold, selling expenses decreased due to lower sales commissions, administrative expenses rose due to increased employee compensation and intermediary fees, and net cash flow from operating activities increased primarily due to higher net cash inflows from purchasing and selling activities - 2025 H1 Financial Statement Key Item Changes | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 56,765,895,355.68 | 45,773,494,698.05 | 24.01 | | Operating Cost | 46,854,214,561.98 | 39,292,355,872.23 | 19.25 | | Selling Expenses | 76,378,155.44 | 83,112,784.31 | –8.10 | | Administrative Expenses | 1,679,883,563.25 | 1,295,653,848.09 | 29.66 | | R&D Expenses | 311,539,562.76 | 258,161,998.13 | 20.68 | | Net Cash Flow from Operating Activities | 10,502,900,464.64 | 5,779,663,161.40 | 81.72 | - The increase in operating revenue was primarily due to increased sales volume and prices of self-produced gold, as well as increased sales prices of purchased gold[68](index=68&type=chunk) - The increase in administrative expenses was primarily due to increased employee compensation and intermediary fees during the current period[68](index=68&type=chunk) - The increase in net cash flow from operating activities was primarily due to increased net cash inflows from purchasing and selling activities during the current period[68](index=68&type=chunk) [(III) Analysis of Assets and Liabilities](index=26&type=section&id=(III)%20Analysis%20of%20Assets%2C%20and%20Liabilities) This section analyzes the company's period-end asset and liability status, noting significant growth in monetary funds, notes receivable, inventories, and construction in progress, with construction in progress increasing by 40.49%, while short-term borrowings and contract liabilities also rose, and overseas assets accounted for 15.24% of total assets, with restricted assets primarily comprising land reclamation and environmental governance deposits and bill deposits - 2025 H1 Asset and Liability Status Changes | Item Name | Period-end Balance (RMB) | Change from Prior Year-end (%) | Reason for Change | | :--- | :--- | :--- | :--- | | Monetary Funds | 12,522,686,397.09 | 13.05 | Decrease in subsidiary's wealth management purchases | | Notes Receivable | 225,169,658.82 | 81.75 | Increase in subsidiary's received but unmatured notes | | Inventories | 8,424,835,498.40 | 23.54 | Increase in subsidiary's inventory | | Construction in Progress | 14,897,768,848.21 | 40.49 | Increase in subsidiary's investment in construction in progress | | Short-term Borrowings | 29,386,809,802.18 | 11.87 | Increase in company's short-term borrowing financing | | Contract Liabilities | 779,281,989.56 | 82.44 | Increase in subsidiary's advance receipts for goods | | Long-term Borrowings | 22,912,611,604.22 | –13.89 | Long-term borrowings due within one year reclassified to non-current liabilities | - Overseas assets amounted to **RMB 25.303 billion**, accounting for **15.24%** of total assets[73](index=73&type=chunk) - Major Asset Restrictions as of Report End | Item | Year-end Book Value (RMB) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 402,919,780.45 | Land reclamation and environmental governance deposit | | Monetary Funds | 995,707,164.47 | Bill deposit | | Inventories | 34,067,940.22 | Pledged for financing | | Other Non-current Assets | 1,329,800.00 | Prepaid exploration right deposit frozen for supervision | [(IV) Investment Status Analysis](index=28&type=section&id=(IV)%20Investment%20Status%20Analysis) This section provides a detailed analysis of the company's investment activities, including the acquisition of 70% equity in Changtai Mining and the establishment of Shandong Gold Materials Co., Ltd. to optimize internal material management, as well as the progress of non-equity investment projects like Jiaojia mining area and Xincheng Gold Mine resource development. The company also discloses its financial assets measured at fair value, securities investments, and derivative investments for hedging purposes, aimed at mitigating price and exchange rate fluctuation risks - During the reporting period, the company completed the acquisition of **70%** equity in Changtai Mining, paying a transfer fee of **RMB 60 million**[76](index=76&type=chunk) - The company invested in establishing Shandong Gold Materials Co., Ltd. with a registered capital of **RMB 100 million**, investing **RMB 50 million** during the reporting period, aiming to achieve centralized internal material procurement and specialized management[76](index=76&type=chunk)[78](index=78&type=chunk) - 2025 H1 Major Non-Equity Investment Projects | No. | Project Name | Total Investment (RMB 100 million) | Project Progress | Amount Completed in Current Period (RMB 100 million) | | :--- | :--- | :--- | :--- | :--- | | 1 | Jiaojia Mining Area (Integration) Gold Mine Resource Development Project | 82.73 | Main control engineering excavated to bottom, second phase construction underway | 4.3 | | 2 | Xincheng Gold Mine Resource Integration Development Project | 39.5 | Main control engineering excavated to bottom, supporting engineering construction underway | 3.91 | | 3 | Chifeng Chaihulanzi Gold Mining Co., Ltd. 2,000 t/d Mining and Beneficiation Expansion Project | 2.78 | Main control engineering excavated to bottom, second phase horizontal tunnel development underway | 0.19 | - 2025 H1 Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (RMB '0,000) | Fair Value Change Gains/Losses in Current Period (RMB '0,000) | Period-end Balance (RMB '0,000) | | :--- | :--- | :--- | :--- | | Stocks | 445,679.14 | –25.21 | 445,653.93 | | Private Equity Funds | 163,307.49 | 1,278.03 | 163,230.87 | | Futures | 191.91 | –10,380.42 | 2,288.07 | | Derivative Instruments | –993.48 | –16,735.48 | –4,213.59 | | Total | 825,175.79 | –23,666.18 | 740,609.51 | - The company and its subsidiaries conducted derivative investment activities for hedging purposes, which resulted in no losses after offsetting against changes in spot values during the reporting period, achieving the intended risk management objectives[86](index=86&type=chunk)[90](index=90&type=chunk) [(VI) Analysis of Major Controlled and Associated Companies](index=38&type=section&id=(VI)%20Analysis%20of%20Major%20Controlled%20and%20Associated%20Companies) This section lists the company's major controlled subsidiaries and their financial performance during the reporting period, including total assets, net assets, operating revenue, operating profit, and net profit, highlighting their contribution to the company's overall performance - 2025 H1 Major Controlled and Associated Companies | Company Name | Company Type | Main Business | Registered Capital (RMB '0,000) | Operating Revenue (RMB '0,000) | Net Profit (RMB '0,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Shandong Gold Mining (Laizhou) Co., Ltd. | Subsidiary | Gold mining, sales | 43,017.64 | 441,636.70 | 111,766.58 | | Shandong Gold Mining (Hong Kong) Co., Ltd. | Subsidiary | Gold mining, sales | 453,114.56 | 372,019.08 | 62,403.58 | | Shandong Gold International Mining Co., Ltd. | Subsidiary | Gold mining, sales | 277,672.23 | 924,564.50 | 120,306.97 | [(VII) Information on Structured Entities Controlled by the Company](index=39&type=section&id=(VII)%20Information%20on%20Structured%20Entities%20Controlled%20by%20the%20Company) This section discloses the 28 structured entities consolidated by the company, listing 5 important ones with their shareholding percentages, paid-in capital, and acquisition methods, noting that as of June 30, 2025, the net assets of these consolidated structured entities totaled RMB 1.735 billion - The Group has **28** structured entities included in the scope of consolidation; in accordance with "Accounting Standard for Business Enterprises No. 33 – Consolidated Financial Statements," the company consolidates entities in which it participates with its own funds and meets the definition of "control" as stipulated by the standard[98](index=98&type=chunk) - Important Consolidated Structured Entities as of June 30, 2025 | Name | Shareholding Percentage | Paid-in Capital (RMB) | Acquisition Method | | :--- | :--- | :--- | :--- | | Shandong Gold Jinshi No. 1 Private Securities Investment Fund | 100.00% | 472,249,981.75 | Establishment | | Jinquan Shandong Gold Jinyuan No. 1 Private Securities Investment Fund | 100.00% | 102,974,999.87 | Establishment | | Zhuchi Quantitative Stable Investment Master Fund No. 1 Phase 1 | 100.00% | 319,727,495.80 | Investment | | Jinan Jinying Investment Partnership (Limited Partnership) | 20.00% | 2,500,170,000.00 | Establishment | | Jinan Jinyue Investment Partnership (Limited Partnership) | 100.00% | 1,285,200,000.00 | Establishment | - As of June 30, 2025, the net assets of the structured entities included in the Group's consolidation scope amounted to **RMB 1.735 billion**[99](index=99&type=chunk) [(VIII) Other](index=39&type=section&id=(VIII)%20Other) This section discloses the company's working capital sources, commitments, capital-to-debt ratio, and other significant financial information, noting that working capital primarily comes from operations, bank financing, and bond issuance, with commitments totaling RMB 1.518 billion and a capital-to-debt ratio of approximately 171.11%, and no major acquisitions, disposals, asset pledges, or contingent liabilities during the reporting period - The Group's working capital requirements arise from mining and beneficiation business expansion, exploration activities, and the acquisition of exploration and mining rights, with primary funding sources being cash generated from operations, bank financing, issued or to be issued bonds, and equity placements[100](index=100&type=chunk) - As of June 30, 2025, the Group's short-term borrowings amounted to **RMB 29.387 billion**, and long-term borrowings to **RMB 22.913 billion**, with annual interest rates ranging from **1.66% to 6%**[100](index=100&type=chunk) - Commitment Amounts as of June 30, 2025 | Item | Period-end Amount (RMB '0,000) | | :--- | :--- | | Contracted but not yet recognized in financial statements – Commitments for construction of long-term assets | 20,858.29 | | Contracted but not yet recognized in financial statements – Significant service contracts | 130,974.80 | | Total | 151,833.09 | - As of June 30, 2025, the Group's capital-to-debt ratio was approximately **171.11%**[102](index=102&type=chunk) - As of June 30, 2025, the Group had no significant contingent liabilities or other major asset pledges[104](index=104&type=chunk)[105](index=105&type=chunk) [V. Other Disclosure Matters](index=41&type=section&id=V.%20Other%20Disclosure%20Matters) This section discloses the company's potential major risks and corresponding mitigation measures, including safety management, environmental protection, resource acquisition, and product price fluctuations, along with the implementation status of its "Quality Improvement, Efficiency Enhancement, and Shareholder Returns" action plan, covering strategic planning, profitability improvement, market value management, shareholder returns, and information disclosure - The company has identified major risks and formulated corresponding countermeasures, but due to various factors, it cannot completely eliminate all adverse elements[108](index=108&type=chunk) - Major risks include safety management risks (potential for production safety accidents), environmental management risks (facing increasingly stringent environmental policies), resource acquisition risks (increasing difficulty in resource mergers and acquisitions), and product price fluctuation risks (gold price fluctuations directly impacting operating performance)[109](index=109&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk)[116](index=116&type=chunk) - The company actively implements the "Quality Improvement, Efficiency Enhancement, and Shareholder Returns" action plan, fully initiating the "15th Five-Year Plan" strategic planning, with net profit attributable to shareholders increasing by **102.98%** and earnings per share by **120.11%** during the reporting period[119](index=119&type=chunk)[120](index=120&type=chunk) - The company formulated and implemented the "Shandong Gold Mining Co., Ltd. Market Value Management System (Trial)," regularly implementing semi-annual dividends, with a proposed cash dividend of **RMB 1.80 (tax inclusive) per 10 shares** for H1 2025[120](index=120&type=chunk)[121](index=121&type=chunk) - The controlling shareholder, Shandong Gold Group, and its concerted parties plan to opportunistically increase their holdings of the company's A-shares within 12 months from April 9, 2025, with an intended increase of no less than **RMB 500 million** and no more than **RMB 1 billion**[121](index=121&type=chunk) [(I) Potential Risks](index=41&type=section&id=(I)%20Potential%20Risks) This section details the four main risks faced by the company: safety management, environmental management, resource acquisition, and product price fluctuations, along with corresponding mitigation measures such as improving management systems, increasing technological investment, intensifying exploration, and utilizing hedging tools to effectively prevent and resolve various risks - Safety management risks: Subject to natural factors, personnel quality, and technical levels, there is a risk of production safety accidents; countermeasures include strengthening responsibilities, improving systems, enhancing source prevention, and promoting smart mine construction[109](index=109&type=chunk)[110](index=110&type=chunk) - Environmental management risks: Facing increasing environmental pressure due to stricter national ecological and environmental policies; countermeasures include strengthening environmental awareness, improving system frameworks, increasing environmental investment, and promoting green and low-carbon development[112](index=112&type=chunk)[113](index=113&type=chunk) - Resource acquisition risks: Intensified global resource competition may constrain capacity expansion; countermeasures include increasing exploration efforts on self-owned mining rights, accelerating exploration of primary exploration rights, strengthening technological leadership, and pursuing domestic and international mergers and acquisitions[114](index=114&type=chunk)[115](index=115&type=chunk) - Product price fluctuation risks: Gold price fluctuations directly impact operating performance, influenced by global political and economic environment, monetary policy, and exchange rate fluctuations; countermeasures include improving price research frameworks, enhancing judgment capabilities, and exploring the use of hedging tools[116](index=116&type=chunk)[117](index=117&type=chunk) [(II) Other Disclosure Matters](index=44&type=section&id=(II)%20Other%20Disclosure%20Matters) This section details the implementation of the company's "Quality Improvement, Efficiency Enhancement, and Shareholder Returns" action plan, highlighting significant progress in strategic planning, profitability, market value management, shareholder returns, and corporate governance, including the initiation of the "15th Five-Year Plan," record-high net profit and EPS, establishment of a market value management system, regular semi-annual dividends, and a controlling shareholder's share increase plan, demonstrating the company's commitment to creating long-term value for shareholders through high-quality development - The company has fully initiated the compilation of its "15th Five-Year Plan" strategic plan, aiming to solidify resource security as its foundation, continuously pursue "green technology" breakthroughs, and strengthen management for quality improvement and efficiency enhancement[120](index=120&type=chunk) - During the reporting period, net profit attributable to shareholders was **RMB 2.81 billion**, a **102.98%** year-on-year increase, and earnings per share was **RMB 0.57**, a **120.11%** year-on-year increase, both reaching historical highs for the same period[120](index=120&type=chunk) - The company formulated and implemented the "Shandong Gold Mining Co., Ltd. Market Value Management System (Trial)," establishing a sound market value management system[120](index=120&type=chunk) - Total cash dividends for 2024 amounted to approximately **RMB 1.02 billion**, representing **40.05%** of the consolidated net profit attributable to ordinary shareholders after deducting perpetual bond interest for 2024, an increase of **6.46** percentage points from 2023[121](index=121&type=chunk) - The controlling shareholder, Shandong Gold Group, and its concerted parties plan to opportunistically increase their holdings of the company's A-shares within 12 months from April 9, 2025, with an intended increase of no less than **RMB 500 million** and no more than **RMB 1 billion**[121](index=121&type=chunk) [Section IV Corporate Governance, Environment and Society](index=46&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%20and%20Society) This section discloses the company's practices in corporate governance, environmental, and social responsibility, noting no changes in directors, supervisors, or senior management during the reporting period, and the approval of the semi-annual profit distribution plan, while also highlighting the company's environmental information disclosure for 18 subsidiaries and its ongoing efforts in poverty alleviation and rural revitalization through targeted recruitment, skill training, public facility construction, and educational assistance - There were no changes in the company's directors, supervisors, or senior management during the reporting period, but the election results for the seventh Board of Directors and senior management were disclosed[124](index=124&type=chunk) - The company proposes a semi-annual cash dividend of **RMB 1.80 (tax inclusive) per 10 shares** to all shareholders, totaling **RMB 805.217 million**, representing **31.45%** of the net profit attributable to ordinary shareholders after deducting perpetual bond interest for the current period[125](index=125&type=chunk)[127](index=127&type=chunk) - The company has no equity incentive plans, employee stock ownership plans, or other employee incentive measures[128](index=128&type=chunk) - **18** of the company's subsidiaries are included in the list of enterprises required to disclose environmental information, with query indexes provided[129](index=129&type=chunk)[130](index=130&type=chunk) - The company actively consolidates and expands poverty alleviation achievements and comprehensively promotes rural revitalization through targeted recruitment, skill training, assistance in rural public facility construction, and educational support[133](index=133&type=chunk) [I. Changes in Company Directors, Supervisors, and Senior Management](index=46&type=section&id=I.%20Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) This section states that there were no changes in the company's directors, supervisors, or senior management during the reporting period, but discloses the members of the seventh Board of Directors and senior management elected at the shareholder and board meetings on August 14, 2025 - There were no changes in the company's directors, supervisors, or senior management during the reporting period[124](index=124&type=chunk) - The company's seventh Board of Directors consists of **9** directors, with Han Yaodong elected as Chairman and legal representative, Tang Qi as General Manager, Wang Yi as Board Secretary, and Teng Hongmeng as Chief Financial Officer[124](index=124&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=46&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) This section discloses the company's 2025 semi-annual profit distribution plan, proposing a cash dividend of RMB 1.80 (tax inclusive) per 10 shares to all shareholders, with no bonus shares or capital reserve conversion to share capital - The company proposes a cash dividend of **RMB 1.80 (tax inclusive) per 10 shares** to all shareholders[125](index=125&type=chunk)[127](index=127&type=chunk) - Based on the total share capital of **4,473,429,525 shares** as of August 27, 2025, a cash dividend of **RMB 805.217 million (tax inclusive)** is proposed[127](index=127&type=chunk) - The cash dividend amount represents **31.45%** of the net profit attributable to ordinary shareholders after deducting perpetual bond interest for the current period[127](index=127&type=chunk) - This profit distribution involves no bonus shares and no conversion of capital reserves to share capital[127](index=127&type=chunk) [III. Information on Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures and Their Impact](index=47&type=section&id=III.%20Information%20on%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures%20and%20Their%20Impact) This section states that the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company has no equity incentive plans, employee stock ownership plans, or other employee incentive measures[128](index=128&type=chunk) [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information](index=48&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information) This section discloses that the company and its 18 major subsidiaries are included in the list of enterprises required to disclose environmental information, providing query indexes for their environmental information disclosure reports, demonstrating the company's commitment to environmental information transparency - **18** of the company's subsidiaries are included in the list of enterprises required to disclose environmental information[129](index=129&type=chunk) - Environmental information disclosure reports for each enterprise can be queried through platforms such as the Shandong Province Enterprise Environmental Information Disclosure System, Inner Mongolia Enterprise Comprehensive Service Platform, and Gansu Province Enterprise Environmental Information Disclosure System[129](index=129&type=chunk)[130](index=130&type=chunk) [V. Specific Information on Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=50&type=section&id=V.%20Specific%20Information%20on%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%20and%20Other%20Work) This section describes the company's specific efforts in consolidating poverty alleviation achievements and promoting rural revitalization, highlighting its active fulfillment of social responsibilities through targeted recruitment, skill training, public facility construction, and educational assistance to support local economic and social development - The company actively recruits local personnel through targeted recruitment and skill training to support rural revitalization[133](index=133&type=chunk) - The company provides assistance in road hardening, power supply projects, and water conservancy facility construction to support rural public infrastructure development[133](index=133&type=chunk) - The company engages in educational assistance activities, such as sponsoring university students and donating books and teaching equipment to primary and secondary schools[133](index=133&type=chunk) [Section V Important Matters](index=51&type=section&id=Section%20V%20Important%20Matters) This section details the company's important matters during the reporting period, including the fulfillment of commitments, particularly those related to horizontal competition and related party transactions from major asset restructurings. The company confirms no non-operating fund occupation by controlling shareholders or related parties, illegal guarantees, or major litigation/arbitration. Additionally, it discloses financial business dealings with related financial companies, the performance of major contracts, the controlling shareholder's gold mining rights, and post-reporting period events such as accounting standard changes, the cancellation of the Board of Supervisors, and Board of Directors re-election - The controlling shareholder, Shandong Gold Group, committed to resolving horizontal competition issues by November 10, 2025, through methods such as prioritizing injection into the company or selling to unrelated third parties[134](index=134&type=chunk) - The company had no non-operating fund occupation by controlling shareholders or other related parties, no illegal guarantees, and no major litigation or arbitration matters[58](index=58&type=chunk)[59](index=59&type=chunk) - 2025 H1 Company and Related Financial Company Financial Business Transactions (RMB '0,000) | Business Type | Beginning Balance | Amount Incurred in Current Period (Deposit/Loan/Credit) | Period-end Balance | | :--- | :--- | :--- | :--- | | Deposit Business | 327,379.81 | 8,981,318.12 (Deposited) | 285,866.03 | | Loan Business | 217,870.00 | 51,400.00 (Loaned) | 173,650.00 | | Comprehensive Credit Line | - | 600,000.00 (Actual utilization) | - | | Loans and Other Financing | - | 356,902.18 (Actual utilization) | - | | Corporate Account Overdraft | - | 33,000.00 (Actual utilization) | - | - During the reporting period, the company's total guarantees to subsidiaries amounted to **RMB 1.791 billion**, with a period-end guarantee balance of **RMB 11.104 billion**, accounting for **18.13%** of the company's net assets[159](index=159&type=chunk) - The controlling shareholder, Shandong Gold Group, holds **33 gold exploration rights** in China, with identified gold metal reserves totaling approximately **272.57 tons**, and **10 gold mining rights** in China, with proven gold resources totaling approximately **107.082 tons**, all of which are managed by the company under entrustment[165](index=165&type=chunk)[166](index=166&type=chunk)[170](index=170&type=chunk) - After the reporting period, the Board of Directors resolved to adopt Chinese Enterprise Accounting Standards for financial reporting starting from the 2025 semi-annual financial report, cancel the Board of Supervisors, and revise the Articles of Association[179](index=179&type=chunk)[180](index=180&type=chunk) [I. Fulfillment of Commitments](index=51&type=section&id=I.%20Fulfillment%20of%20Commitments) This section details the fulfillment of commitments by the company's controlling shareholder, Gold Group, and other related parties during or continuing into the reporting period, primarily concerning resolving horizontal competition, reducing related party transactions, ensuring company independence, and perfecting mining rights ownership, noting that most commitments were strictly fulfilled, but some mining rights conversion work was suspended or delayed due to policy reasons - The controlling shareholder, Gold Group, committed to resolving horizontal competition issues by November 10, 2025, through methods such as prioritizing injection into the company or selling to unrelated third parties[134](index=134&type=chunk) - Gold Group and Non-ferrous Group committed to ensuring the company's independence in personnel, assets, finance, organization, and business, and to minimizing related party transactions[137](index=137&type=chunk) - The conversion of Dongfeng exploration right to mining right was suspended due to the delineation of ecological red lines in Zhaoyuan Luoshan and the unapproved adjustment of provincial nature reserves; the company will actively monitor the approval progress[137](index=137&type=chunk) - The processing of land and property ownership certificates for Penglai Mining was delayed due to ecological protection red line delineation and land use policy obstacles; the company is actively discussing improvement plans[141](index=141&type=chunk)[144](index=144&type=chunk) - The Xinli exploration right was integrated in 2019, and a new mining license was obtained[138](index=138&type=chunk) [II. Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties during the Reporting Period](index=58&type=section&id=II.%20Non-operating%20Fund%20Occupation%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20during%20the%20Reporting%20Period) This section states that there was no non-operating fund occupation by controlling shareholders or other related parties during the reporting period - During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties[58](index=58&type=chunk) [III. Illegal Guarantees](index=58&type=section&id=III.%20Illegal%20Guarantees) This section states that there were no external guarantees provided in violation of decision-making procedures during the reporting period - During the reporting period, the company had no external guarantees provided in violation of decision-making procedures[58](index=58&type=chunk) [IV. Semi-Annual Report Audit Status](index=58&type=section&id=IV.%20Semi-Annual%20Report%20Audit%20Status) This section states that the company's 2025 semi-annual report was not audited - This semi-annual report was not audited[7](index=7&type=chunk) [V. Changes and Handling of Matters Involving Non-Standard Audit Opinions in the Previous Year's Annual Report](index=58&type=section&id=V.%20Changes%20and%20Handling%20of%20Matters%20Involving%20Non-Standard%20Audit%20Opinions%20in%20the%20Previous%20Year's%20Annual%20Report) This section states that there were no changes or handling of matters involving non-standard audit opinions in the company's previous year's annual report - There were no changes or handling of matters involving non-standard audit opinions in the company's previous year's annual report[58](index=58&type=chunk) [VI. Bankruptcy and Reorganization Related Matters](index=58&type=section&id=VI.%20Bankruptcy%20and%20Reorganization%20Related%20Matters) This section states that there were no bankruptcy and reorganization related matters during the reporting period - During the reporting period, the company had no bankruptcy and reorganization related matters[58](index=58&type=chunk) [VII. Major Litigation and Arbitration Matters](index=59&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration%20Matters) This section states that there were no major litigation or arbitration matters during the reporting period - There were no major litigation or arbitration matters for the company during this reporting period[59](index=59&type=chunk) [VIII. Listed Company and Its Directors, Supervisors, Senior Management, Controlling Shareholders, Actual Controllers Suspected of Violations, Penalties, and Rectification Status](index=59&type=section&id=VIII.%20Listed%20Company%20and%20Its%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20Controlling%20Shareholders%2C%20Actual%20Controllers%20Suspected%20of%20Violations%2C%20Penalties%2C%20and%20Rectification%20Status) This section states that there were no suspected violations, penalties, or rectification situations involving the company, its directors, supervisors, senior management, controlling shareholders, or actual controllers during the reporting period - During the reporting period, the company, its directors, supervisors, senior management, controlling shareholders, and actual controllers had no suspected violations, penalties, or rectification situations[59](index=59&type=chunk) [IX. Explanation of the Integrity Status of the Company, Its Controlling Shareholders, and Actual Controllers during the Reporting Period](index=59&type=section&id=IX.%20Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%2C%20Its%20Controlling%20Shareholders%2C%20and%20Actual%20Controllers%20during%20the%20Reporting%20Period) This section states that the integrity status of the company, its controlling shareholders, and actual controllers was good during the reporting period, with no special circumstances requiring disclosure - During the reporting period, the integrity status of the company, its controlling shareholders, and actual controllers was good, with no special circumstances requiring disclosure[59](index=59&type=chunk) [X. Major Related Party Transactions](index=60&type=section&id=X.%20Major%20Related%20Party%20Transactions) This section discloses the company's major financial business dealings with related parties, including deposit, loan, and credit line services with the financial company 70% owned by the controlling shareholder, noting changes in deposit and loan balances and the utilization of comprehensive credit lines during the reporting period to ensure effective fund operation - 2025 H1 Company and Related Financial Company Deposit Business (RMB '0,000) | Related Party | Related Relationship | Beginning Balance | Total Deposits in Current Period | Total Withdrawals in Current Period | Period-end Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Shandong Gold Group Finance Co., Ltd. | Financial company 70% owned by controlling shareholder | 327,379.81 | 8,981,318.12 | 9,022,831.90 | 285,866.03 | - 2025 H1 Company and Related Financial Company Loan Business (RMB '0,000) | Related Party | Related Relationship | Beginning Balance | Total Loans in Current Period | Total Repayments in Current Period | Period-end Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Shandong Gold Group Finance Co., Ltd. | Financial company 70% owned by controlling shareholder | 217,870.00 | 51,400.00 | 95,620.00 | 173,650.00 | - 2025 H1 Company and Related Financial Company Credit Line Business (RMB '0,000) | Related Party | Related Relationship | Business Type | Total Amount | Actual Amount Incurred | | :--- | :--- | :--- | :--- | :--- | | Shandong Gold Group Finance Co., Ltd. | Financial company 70% owned by controlling shareholder | Comprehensive Credit Line | 600,000.00 | 600,000.00 | | Shandong Gold Group Finance Co., Ltd. | Financial company 70% owned by controlling shareholder | Loans and Other Financing | 480,000.00 | 356,902.18 | | Shandong Gold Group Finance Co., Ltd. | Financial company 70% owned by controlling shareholder | Corporate Account Overdraft | 100,000.00 | 33,000.00 | [(I) Related Party Transactions Related to Daily Operations](index=60&type=section&id=(I)%20Related%20Party%20Transactions%20Related%20to%20Daily%20Operations) This section states that related party transactions related to daily operations have been disclosed in temporary announcements, with no further progress or changes in their subsequent implementation, or with subsequent progress not detailed here - Related party transactions related to daily operations have been disclosed in temporary announcements, with no further progress or changes in their subsequent implementation[60](index=60&type=chunk) [(II) Related Party Transactions Arising from Asset or Equity Acquisitions and Disposals](index=60&type=section&id=(II)%20Related%20Party%20Transactions%20Arising%20from%20Asset%20or%20Equity%20Acquisitions%20and%20Disposals) This section states that related party transactions arising from asset or equity acquisitions and disposals during the reporting period have been disclosed in temporary announcements, with no further progress or changes in their subsequent implementation, or with subsequent progress not detailed here - Related party transactions arising from asset or equity acquisitions and disposals during the reporting period have been disclosed in temporary announcements, with no further progress or changes in their subsequent implementation[60](index=60&type=chunk) [(III) Major Related Party Transactions for Joint External Investments](index=61&type=section&id=(III)%20Major%20Related%20Party%20Transactions%20for%20Joint%20External%20Investments) This section states that major related party transactions for joint external investments during the reporting period have been disclosed in temporary announcements, with no further progress or changes in their subsequent implementation, or with subsequent progress not detailed here - Major related party transactions for joint external investments during the reporting period have been disclosed in temporary announcements, with no further progress or changes in their subsequent implementation[61](index=61&type=chunk) [(IV) Related Party Creditor-Debtor Transactions](index=61&type=section&id=(IV)%20Related%20Party%20Creditor-Debtor%20Transactions) This section states that related party creditor-debtor transactions during the reporting period have been disclosed in temporary announcements, with no further progress or changes in their subsequent implementation, or with subsequent progress not detailed here - Related party creditor-debtor transactions during the reporting period have been disclosed in temporary announcements, with no further progress or changes in their subsequent implementation[61](index=61&type=chunk) [(V) Financial Business between the Company and Related Financial Companies, and between the Company's Controlled Financial Companies and Related Parties](index=62&type=section&id=(V)%20Financial%20Business%20between%20the%20Company%20and%20Related%20Financial%20Companies%2C%20and%20between%20the%20Company's%20Controlled%20Financial%20Companies%20and%20Related%20Parties) This section details the financial business dealings between the company and the financial company 70% owned by its controlling shareholder, including deposit, loan, and credit line services, noting changes in deposit and loan balances and the utilization of comprehensive credit lines during the reporting period to ensure effective fund operation - 2025 H1 Company and Related Financial Company Deposit Business (RMB '0,000) | Related Party | Related Relationship | Beginning Balance | Total Deposits in Current Period | Total Withdrawals in Current Period | Period-end Balance | | :--- | :--- | :--- | :--- | :---

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 5,596,064,000, representing a 4.40% increase from RMB 5,360,093,000 in the same period of 2024[5] - Operating profit increased by 20.75% to RMB 737,054,000 compared to RMB 610,402,000 in the previous year[5] - Net profit attributable to equity holders of the parent rose by 37.83% to RMB 631,728,000 from RMB 458,353,000[5] - Basic earnings per share increased by 36.36% to RMB 0.15, up from RMB 0.11[5] - The gross profit margin improved to 20.28%, up from 18.46% in the previous year, reflecting a 1.82% increase[5] - The net profit margin increased to 11.29%, compared to 8.55% in the same period last year, a rise of 2.74%[5] - Total comprehensive income for the period was RMB 625,482,000, compared to RMB 461,221,000 in the previous year, reflecting a strong performance[13] - The company reported a pre-tax profit of RMB 735,663 for the six months ended June 30, 2025, compared to RMB 591,053 for the same period in 2024, indicating a growth of 24.4%[30] - Net profit for the period was RMB 632 million, a 37.80% increase from RMB 458 million in the same period last year[68] Cash Flow and Liquidity - Operating cash flow before changes in working capital was RMB 683,675,000, up from RMB 548,734,000, marking a 24.5% increase[21] - The company reported a net cash flow from operating activities of RMB 579,683,000, compared to RMB 316,244,000, representing an increase of 83.2%[21] - The current ratio was 2.29, slightly down from 2.42, indicating a 5.37% decrease in liquidity[5] - Cash and bank balances increased significantly by RMB 2,736 million or 224.6% to approximately RMB 3,954 million, attributed to strong operational performance and effective cost management[78] Assets and Liabilities - As of June 30, 2025, total non-current assets increased to RMB 3,683,115,000 from RMB 3,011,628,000 in December 2024, representing a growth of 22.3%[15] - Current assets totaled RMB 12,833,296,000, up from RMB 12,463,367,000, indicating an increase of 2.96%[16] - Total current liabilities rose to RMB 5,613,552,000, compared to RMB 4,712,868,000, reflecting an increase of 19.1%[16] - The total liabilities for other payables and accrued liabilities rose to RMB 858,564 thousand as of June 30, 2025, up from RMB 801,633 thousand as of December 31, 2024, indicating a growth of about 7%[56] - The company’s total liabilities rose to RMB 5,700,350 as of June 30, 2025, compared to RMB 4,770,902 as of December 31, 2024, reflecting an increase of 19.5%[34] Sales and Market Performance - The sales of wheel loaders accounted for 41.2% of total sales, amounting to RMB 2,300,997, while forklift sales represented 33.6% with RMB 1,880,612[36] - Revenue from external customers in mainland China was RMB 3,962,590, an increase from RMB 3,892,804 in the previous year[33] - The loader business contributed the largest share to the company's revenue and profit, accounting for 41.12% of total sales, up from 40.31% in the same period last year[68] - Excavator sales grew by 59.58% year-on-year, with a sales share of 14.44%, an increase of 4.99 percentage points compared to 9.45% in the previous year[68] - The Northwest region saw a sales increase of 22.3%, with market share rising from 7.01% to 8.58%[69] - Export market performance was strong, growing by 11.3%, increasing its share of total revenue from 27.37% to 29.19%[69] Cost and Expenses - The cost of sold inventory rose to RMB 4,211,845,000 in 2025, up from RMB 3,794,684,000 in 2024, indicating an increase of 11%[40] - Financial costs decreased dramatically by 92.8% from RMB 19.35 million to RMB 1.39 million, enhancing profitability and financial flexibility[87] - R&D expenses increased by 8.4% to RMB 240.27 million, demonstrating the company's commitment to innovation and product development[89] Corporate Governance and Management - The company has adopted and complied with the corporate governance code as of June 30, 2025, with some deviations noted[91] - The board believes that the dual role of the chairman and CEO held by Mr. Li is appropriate for maintaining policy continuity and business stability[96] - The company has improved its internal control systems, enhancing supply chain management and inter-departmental oversight[100] - The company emphasizes effective communication as a core aspect of investor relations, having conducted over 25 investor meetings and calls in the first half of 2025[101] Shareholder Information - As of June 30, 2025, the company has a total of 2,400,299,088 shares outstanding, with the largest shareholder, Ni Yinying, holding 56.03% of the shares[104] - The company does not plan to distribute any interim dividends for the six months ending June 30, 2025, maintaining the previous year's dividend of 0 HKD per share[107] Social Responsibility and Future Outlook - The company is committed to enhancing shareholder value while providing high-quality products and services to customers[102] - The company has a strong commitment to social responsibility and community development[102] - The company anticipates that the Chinese economy will continue to develop steadily, supported by proactive macro policies, particularly benefiting the engineering machinery industry[90] - Significant government projects, such as the Yarlung Tsangpo River downstream hydropower project, are expected to positively impact market demand for engineering machinery[90]

加 科 思 藥 業 集 團 有 限 公 司 JACOBIO PHARMACEUTICALS GROUP CO., LTD. （於開曼群島註冊成立的有限公司） 股份代號 : 1167 2025 中期報告 加科思藥業集團有限公司 2025 中期報告 1 2 公司資料 4 財務摘要 5 業務摘要 7 管理層討論與分析 28 補充資料 45 簡明綜合財務報表的審閱報告 46 簡明綜合損益表 47 簡明綜合損益及其他全面收益表 48 簡明綜合財務狀況表 50 簡明綜合權益變動表 51 簡明綜合現金流量表 52 簡明綜合財務報表附註 66 釋義及詞彙表 加科思藥業集團有限公司 2025 中期報告 2 公司資料 加 科 思 藥 業 集 團 有 限 公 司 JACOBIO PHARMACEUTICALS GROUP CO., LTD. (Incorporated in the Cayman Islands with limited liability) Stock Code :1167 2025 INTERIM REPORT 目錄 宋瑞霖博士 （主席） 王曉潔女士 陳德禮博士 吳革博士 魯白博士 董事會 執行董事 王印祥博士 ...

CStone Pharmaceuticals 基石藥業 (Incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立的有限公司 ) Stock Code 股份代號 : 2616 Interim Report 2025 中期報告 目錄 | | 頁次 | | --- | --- | | 公司資料 | 2 | | 財務摘要 | 4 | | 業務摘要 | 6 | | 管理層討論及分析 | 10 | | 董事及高級管理層 | 25 | | 其他資料 | 34 | | 簡明綜合財務報表審閱報告 | 58 | | 簡明綜合損益及其他全面收益表 | 59 | | 簡明綜合財務狀況表 | 60 | | 簡明綜合權益變動表 | 62 | | 簡明綜合現金流量表 | 63 | | 簡明綜合財務報表附註 | 64 | | 釋義 | 81 | 公司資料 董事會 執行董事 楊建新博士 （首席執行官） 非執行董事 李偉博士 （主席） Kenneth Walton Hitchner III先生 林向紅先生 （於二零二五年六月二十五日退任） 胡正國先生 獨立非執 ...