Financial Performance - The company reported unaudited revenue of approximately RMB 1,557.2 million for the first half of 2025, a decrease of about 5.4% compared to RMB 1,646.4 million in the same period of 2024[4]. - The unaudited profit attributable to the company's owners for the first half of 2025 was approximately RMB 241.7 million, down approximately 25.0% from RMB 322.2 million in the first half of 2024[4]. - The basic and diluted earnings per share for the first half of 2025 were approximately RMB 24.1 cents, compared to RMB 32.1 cents in the first half of 2024[4]. - The group's total revenue for the first half of 2025 was approximately RMB 1,557.2 million, a decrease of 5.4% compared to RMB 1,646.4 million in the first half of 2024[9]. - Gross profit for the first half of 2025 was approximately RMB 486.0 million, with a gross margin of 31.2%, down from RMB 614.8 million and 37.3% in the same period of 2024[9]. - Revenue for the first half of 2025 decreased by approximately RMB 89.2 million or about 5.4% to approximately RMB 1,557.2 million compared to the first half of 2024[17]. - Revenue from China in the first half of 2025 fell to approximately RMB 526.2 million, down 8.3% from RMB 574.1 million in the first half of 2024[19]. - European market revenue decreased by approximately RMB 43.8 million, a decline of about 22.1% compared to the first half of 2024[19]. - The total comprehensive income attributable to the company's owners for the reporting period was approximately RMB 330.8 million, compared to RMB 285.3 million in the first half of 2024[29]. - The net profit for the six months ended June 30, 2025, was RMB 240,986 thousand, a decrease of 25.0% compared to RMB 321,132 thousand in 2024[50]. Cash Flow and Financial Position - The net cash flow from operating activities for the first half of 2025 was approximately RMB 503.3 million, an increase from RMB 420.8 million in the first half of 2024[4]. - The company’s cash and cash equivalents increased to RMB 1,031,219 thousand as of June 30, 2025, compared to RMB 780,876 thousand as of December 31, 2024[52]. - The company incurred a net cash outflow from investing activities of RMB 180,713 thousand, compared to RMB 97,034 thousand in the same period of 2024, indicating a significant increase in investment expenditures[59]. - The company’s total liabilities decreased to RMB 1,988,233 thousand as of June 30, 2025, from RMB 2,000,000 thousand at the beginning of the year, indicating a slight reduction in debt levels[56]. - As of June 30, 2025, all bank borrowings have been fully repaid, resulting in a debt-to-equity ratio of 0%[30]. Market Performance - The global electric vehicle sales exceeded 9 million units in the first half of 2025, achieving a strong growth of 28%[8]. - Chinese domestic brands captured 64% of the Chinese automotive market share, an increase of 7.5 percentage points[8]. - In the U.S. market, new vehicle sales reached 8.1 million units in the first half of 2025, representing a growth of 3.2% compared to the same period in 2024[7]. - The overall automotive market in Europe experienced a decline in sales, with the first quarter of 2025 showing a decrease of 0.4% compared to the last quarter of 2024[6]. - The company noted that the overall market share of mainstream joint ventures in China decreased despite a 5% increase in sales of 510,000 passenger vehicles in June 2025[8]. - BYD's global electric vehicle sales increased by 16% year-over-year in Q2 2025, while Tesla's sales declined by 13.5%[9]. Dividends and Shareholder Returns - The company proposed an interim dividend of HKD 0.20 per share for the first half of 2025, consistent with the interim dividend of HKD 0.20 per share in the first half of 2024[4]. - The company paid dividends of RMB 233,364 thousand for the year ended 2023, reflecting a commitment to return value to shareholders despite fluctuations in earnings[56]. - The declared final dividend for 2024 was RMB 280,050, an increase of 20% from RMB 233,364 for 2023[70]. Operational Efficiency - The utilization rate of electroplating production facilities was approximately 83.0% in the first half of 2025, up from 80.5% in the same period of 2024[10]. - The average product yield for electroplating slightly decreased to approximately 93.2% in the first half of 2025, while the yield for the spraying business increased to 94.1%[11]. - Gross profit decreased from approximately RMB 614.8 million in the first half of 2024 to approximately RMB 486.0 million in the first half of 2025, impacted by increased employee costs, logistics expenses, and a decline in operational efficiency[28]. Corporate Governance and Management - The board of directors and management are committed to maintaining high standards of corporate governance, adhering to all provisions of the corporate governance code during the reporting period[101]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited interim consolidated financial information for the first half of 2025[103]. - The Audit Committee believes that the financial information fairly presents the group's financial position and performance for the first half of 2025[103].

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching RMB 5.2 billion for the latest quarter[9] - Total revenue for the six months ended June 30, 2025, was approximately RMB 6,384.5 million, representing a 19.4% increase compared to the same period last year[21] - Gross profit for the same period was approximately RMB 1,806.6 million, reflecting a 21.1% increase year-over-year[21] - The gross margin improved to 35%, up from 32% in the previous year, indicating better cost management[9] - Operating income for the six months ended June 30, 2025, was RMB 6,384,474,727, representing a 19.4% increase from RMB 5,348,087,711 in 2024[41] - Operating profit increased to RMB 312,887,273 in 2025, up from RMB 163,201,651 in 2024, marking a significant growth of 91.2%[41] - Net profit for the period attributable to shareholders of the Company was RMB 295,743,225, a decrease of 21.7% compared to RMB 377,748,853 in 2024[41] - Total comprehensive income for the period was RMB 358,148,210, compared to RMB 274,709,223 in 2024, reflecting a growth of 30.4%[46] User Growth and Market Expansion - User data showed a growth of 20% in active users, totaling 1.5 million by the end of the reporting period[9] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2026[9] Future Outlook - The company provided a future outlook, projecting a revenue growth of 10-12% for the next fiscal year[9] - The company has set a performance guidance of RMB 6 billion in revenue for the next quarter, representing a 10% increase[9] Research and Development - Research and development expenses increased by 18%, totaling RMB 800 million, reflecting a commitment to innovation[9] - Research and development expenses rose to RMB 385,828,877, an increase of 11% from RMB 347,612,011 in 2024[41] Acquisitions and Investments - A strategic acquisition of a local competitor was completed, valued at RMB 1 billion, aimed at increasing production capacity[9] - Long-term equity investments rose to RMB 8,567,146,376 from RMB 8,388,017,512, an increase of 2.14%[32] - Investment losses decreased to RMB (93,695,050) in 2025 from RMB (111,660,521) in 2024, indicating improved performance in this area[41] Cash Flow and Liquidity - Cash inflows from operating activities totaled RMB 7,220,901,120, compared to RMB 6,215,049,824 in 2024, indicating an increase of about 16.2%[58] - The net cash inflow from operating activities was RMB 842,247,404, a substantial rise from RMB 213,556,282 in the previous year, reflecting an increase of approximately 295%[58] - Cash inflows from investing activities amounted to RMB 4,348,396,529, up from RMB 1,184,083,955 in 2024, marking an increase of around 267%[62] - Cash and cash equivalents at the end of the period for June 30, 2025, were RMB 990,765,689, down from RMB 1,651,819,399 at the end of June 2024[78] Shareholder Equity and Dividends - The Board did not recommend any interim dividend for the period[21] - Total equity attributable to shareholders of the Company was RMB 11,504.9 million, down from RMB 11,629.0 million at the end of 2024[27] - The company appropriated RMB 203,118,569 for profit distribution to shareholders during the period[84] - The total comprehensive income attributable to non-controlling interests was RMB 60,975,957, a significant recovery from a loss of RMB (50,338,975) in 2024[46] Compliance and Governance - The financial statements were approved by the Board of Directors on August 29, 2025[70] - The financial statements were prepared in accordance with the "Accounting Standards for Business Enterprises," ensuring compliance with regulatory requirements[106] - The company's financial statements comply with the accounting standards set by the Ministry of Finance and reflect the company's financial position as of June 30, 2025, and the results for the six months ending on that date[110] Accounting Policies - The company's accounting policies include specific criteria for determining the importance of various financial items, ensuring accurate financial reporting[116] - Financial assets and liabilities are generally presented separately in the balance sheet and are not offset unless specific conditions are met[187] - Expected credit losses (ECL) are recognized for financial assets measured at amortised cost and debt investments at FVOCI, while those at FVTPL are not subject to ECL assessment[194]

| | | 花樣年致力於成為有趣、有味、有料的生活空間及體驗的引領者， 為有價值追求的客戶提供品位獨特、內涵豐富的生活空間及體驗。 | Corporate Information 公司資料 | 02 2 | | --- | --- | | 主席報告 Honors and Awards | 03-04 3 | | Social Responsibility 管理層討論及分析 | 5 05-06 | | 權益披露 Chairman's Statement | 07-08 13 | | 公司管治及其他資料 Management Discussion and Analysis | 09-30 16 | | Disclosure of Interests 簡明綜合財務報表之審閱報告 | 21 31-36 | | 簡明綜合損益及其他全面收益表 Corporate Governance and Other Information | 37-40 23 | | 簡明綜合財務狀況表 Independent Interim Review Repor | 24 41 | | Condensed Consolidated State ...

Financial Performance - The company achieved a revenue of approximately RMB 6,646.6 million for the six months ending June 30, 2025, representing a year-on-year growth of about 6.9%[7] - Net profit reached approximately RMB 491.2 million, with a net margin of about 7.4%, down by approximately 0.6 percentage points year-on-year[7] - Gross profit was approximately RMB 1,198.7 million, with a gross margin of about 18.0%, a decrease of approximately 2.2 percentage points year-on-year[7] - The group reported revenue of RMB 6,646,590,000 for the six months ended June 30, 2025, an increase of 6.8% compared to RMB 6,220,192,000 in the same period of 2024[78] - Gross profit for the same period was RMB 1,198,689,000, down 4.6% from RMB 1,256,091,000 year-over-year[78] - The group recorded a net profit of RMB 491,155,000 for the six months ended June 30, 2025, compared to RMB 499,828,000 in the previous year, reflecting a decrease of 1.3%[78] Revenue Breakdown - Property management services revenue was approximately RMB 5,627.8 million, with a year-on-year increase of about 8.4%, primarily due to an increase in managed area[16] - Community living services revenue was approximately RMB 456.2 million, reflecting a year-on-year growth of about 6.7% due to expanded service offerings[18] - Asset management services revenue decreased by approximately 1.8% to RMB 398.9 million, mainly due to a reduction in available rental parking spaces[19] - Community operation services revenue fell by approximately 15.0% to RMB 163.7 million, impacted by decreased demand for advertising and venue rentals[20] Assets and Liabilities - Trade receivables stood at approximately RMB 5,883.2 million, with a cumulative provision for bad debts of about RMB 3,041.7 million, resulting in a high impairment rate of 51.7%[9] - As of June 30, 2025, the company's total assets were RMB 8,546,361,000, a decrease from RMB 8,710,343,000 as of December 31, 2024[79] - Current liabilities were approximately RMB 518,466,000 as of June 30, 2025, down from RMB 968,619,000 as of December 31, 2024, indicating improved liquidity[75] - Total liabilities decreased from RMB 7,733,169 thousand as of December 31, 2024, to RMB 7,102,201 thousand as of June 30, 2025, representing a reduction of approximately 8.2%[80] Cash Flow and Liquidity - Cash and cash equivalents totaled approximately RMB 2,904.9 million as of June 30, 2025, an increase of about RMB 70.0 million from RMB 2,834.9 million as of December 31, 2024[36] - The group is implementing various measures to improve liquidity amid significant uncertainties regarding its ability to continue as a going concern[75] - Net cash flow from operating activities for the six months ended June 30, 2025, was RMB (326,243) thousand, compared to RMB 95,924 thousand for the same period in 2024, indicating a significant decrease[84] Cost Management - Administrative and marketing expenses decreased by approximately 11.4% to RMB 460.4 million, attributed to cost control measures[24] - Financial costs rose to RMB 41,066,000, compared to RMB 34,945,000 in 2024, driven by increased other financial costs[110] - The company has engaged with creditors to negotiate repayment plans and has implemented cost control measures to improve financial conditions[89] Compliance and Governance - The company has adopted the Corporate Governance Code and complied with all applicable provisions during the reporting period[66] - The company has confirmed compliance with the Securities Trading Standard Code by all directors during the six months ending June 30, 2025[67] Employee and Management - The group employs 98,516 staff and has provided a total of 365,000 training hours during the reporting period, averaging 3.7 hours per employee[46][48] - The total compensation for key management personnel increased to RMB 7,384 thousand for the six months ended June 30, 2025, from RMB 5,546 thousand in the same period of 2024[142] Shareholder Information - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2025[61] - No interim dividend is proposed for the six months ending June 30, 2025, consistent with the previous period[70] - As of June 30, 2025, Mr. Xu Jiayin holds 5,590,229,000 shares, representing 51.71% of the total issued shares[60]

Company Information [Company Overview](index=2&type=section&id=Company%20Overview) This section provides basic company information for Kaisa Group Holdings Ltd., including board members, committee compositions, registered office, principal place of business, legal advisors, auditors, and listing information - The company is incorporated in the Cayman Islands, with stock code **1638**, and listed on the Main Board of The Stock Exchange of Hong Kong Limited[1](index=1&type=chunk)[6](index=6&type=chunk) - Principal place of business is located in Luohu District, Shenzhen, China and Central, Hong Kong[4](index=4&type=chunk) - The auditor is Union Power HK CPA Limited[6](index=6&type=chunk) Chairman's Report [Results and Dividends](index=5&type=section&id=Results%20and%20Dividends) For the six months ended June 30, 2025, the Group's revenue and gross profit significantly decreased, loss attributable to equity holders expanded, and the Board did not recommend an interim dividend H1 2025 Key Financial Data (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Change | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Revenue | 3,701.0 | 5,428.6 | -31.8% | chunk 9 | | Gross Profit | 462.7 | 744.3 | -37.8% | chunk 9 | | Loss Attributable to Equity Holders of the Company | 10,030.5 | 9,115.4 | +10.0% | chunk 9 | | Basic Loss Per Share (RMB) | 1.430 | 1.299 | +10.1% | chunk 9 | - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2025[10](index=10&type=chunk) [Business Review](index=5&type=section&id=Business%20Review) The Group faced global economic challenges in H1 2025, while China's economy showed stable growth with continuous relaxation of real estate policies; the company actively responded to policies, focusing on "ensuring people's livelihood, delivery, and quality," and deepened its land reserve and urban renewal strategies in the Greater Bay Area - China's 2025 H1 GDP grew by **5.3% year-on-year**, with proactive fiscal and monetary policies and continuous easing signals for the property market[11](index=11&type=chunk) - In H1, national new commercial residential sales area decreased by **3.5% year-on-year**, narrowing the decline by **15.5 percentage points** compared to the same period last year[11](index=11&type=chunk) - The Group's H1 contract sales were approximately **RMB 2,003 million**, with over **5,076 units** delivered across **12 projects**[12](index=12&type=chunk) - As of June 30, 2025, the Group owned **164 property projects** in **44 cities** nationwide, with a land bank of **20.75 million square meters**, of which **61%** is in the Greater Bay Area[14](index=14&type=chunk) - Over **100 urban renewal projects** in the Guangdong-Hong Kong-Macao Greater Bay Area, covering approximately **31.0 million square meters**, have not yet been included in the land bank[16](index=16&type=chunk) [Financing](index=7&type=section&id=Financing) Despite a relaxed real estate policy tone, private property developers still face difficulties and high costs in financing; the Group actively managed debt, promoted extensions and interest rate reductions for existing financing, and made significant progress in offshore debt restructuring, with multiple schemes approved by creditors and courts - Private property developers still face difficulties and high financing costs, but the Group's financing costs continued to decrease compared to the end of 2024[17](index=17&type=chunk)[18](index=18&type=chunk) - The Group achieved a significant milestone in offshore debt restructuring, with restructuring support agreements entered into and multiple schemes approved by creditors and relevant courts[19](index=19&type=chunk) - Approximately **75.11%** of Kaisa scope debt and **81.07%** of Richgate scope debt holders have joined the restructuring support agreements[19](index=19&type=chunk) [Outlook and Appreciation](index=9&type=section&id=Outlook%20and%20Appreciation) Looking ahead, China's macroeconomic and property market policies are expected to continue supporting stable economic and real estate development; the Group will focus on "risk resolution, model innovation, and high-quality development" as its core strategy, and expresses gratitude to shareholders, investors, and partners - Macroeconomic policies are expected to continue playing a key role in H2, with property market policies further strengthening to stabilize the market and promote supply-demand balance[20](index=20&type=chunk) - The Group's future core strategy is "risk resolution, model innovation, and high-quality development," adhering to an operating strategy centered on profit and cash flow[20](index=20&type=chunk) Management Discussion and Analysis [Overall Performance](index=9&type=section&id=Overall%20Performance) For the six months ended June 30, 2025, the Group's revenue decreased by 31.8% year-on-year, loss for the period expanded to RMB 10,096.7 million, basic loss per share was RMB 1.430, and no interim dividend was recommended H1 2025 Overall Financial Performance (RMB million) | Indicator | H1 2025 | H1 2024 | YoY Change | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Revenue | 3,701.0 | 5,428.6 | -31.8% | chunk 23 | | Loss for the Period | 10,096.7 | 8,993.9 | +12.3% | chunk 23 | | Loss Attributable to Owners of the Company for the Period | 10,030.5 | 9,115.4 | +10.0% | chunk 23 | | Basic Loss Per Share (RMB) | 1.430 | 1.299 | +10.1% | chunk 23 | - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2025[24](index=24&type=chunk) [Contract Sales for H1 2025](index=10&type=section&id=Contract%20Sales%20for%20H1%202025) The Group's total contract sales in H1 2025 were approximately RMB 2,003 million, with a total GFA of approximately 171,315 square meters, of which the Greater Bay Area contributed the vast majority of sales H1 2025 Contract Sales by Region | Region | Contract Sales Area (square meters) | Contract Sales Amount (RMB million) | | :--- | :--- | :--- | | Greater Bay Area | 103,172 | 1,556 | | Yangtze River Delta | 10,899 | 107 | | Central | 2,022 | 12 | | Western | 37,608 | 143 | | Bohai Rim | 17,614 | 185 | | **Total** | **171,315** | **2,003** | [Property Development and Management](index=11&type=section&id=Property%20Development%20and%20Management) The Group completed new projects with a GFA of approximately 0.33 million square meters in H1 2025, had 64 projects under development with a total GFA of approximately 7.03 million square meters, and its property management services covered 77 cities nationwide, managing a total GFA of approximately 99.9 million square meters - New completed projects in H1 2025 had a GFA of approximately **0.33 million square meters**[26](index=26&type=chunk) - As of June 30, 2025, there were **64 projects under development**, with a total GFA of approximately **7.03 million square meters**[27](index=27&type=chunk) - Property management services have entered **77 cities** nationwide, managing a total GFA of approximately **99.9 million square meters**[28](index=28&type=chunk) [Investment Properties and Land Bank](index=11&type=section&id=Investment%20Properties%20and%20Land%20Bank) The Group holds 10 investment property projects with a total GFA of approximately 0.44 million square meters, aiming to provide stable income; as of June 30, 2025, the total land bank was approximately 20.75 million square meters, with 61% located in the Greater Bay Area, sufficient for future development for the next five years - The Group holds **10 investment property projects** with a total GFA of approximately **0.44 million square meters**, including office buildings, retail shops, and car parks[29](index=29&type=chunk) - As of June 30, 2025, the total land bank was approximately **20.75 million square meters**, of which approximately **61%** is located in the Greater Bay Area, sufficient for future development for the next five years[30](index=30&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) The Group's revenue decreased by 31.8% year-on-year in H1 2025, gross profit decreased by 37.8%, and gross profit margin fell to 12.5%; other losses, net, significantly increased, mainly due to property write-downs; sales and marketing costs and administrative expenses decreased, but net finance costs significantly increased H1 2025 Revenue Segment Changes (RMB million) | Business Segment | H1 2025 | H1 2024 | YoY Change | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 3,701.0 | 5,428.6 | -31.8% | chunk 31 | | Property Sales | 2,089.8 | 3,691.0 | -43.4% | chunk 32 | | Rental Income | 224.8 | 207.3 | +8.4% | chunk 33 | | Property Management | 771.9 | 826.4 | -6.6% | chunk 34 | | Hotel and Catering | 105.9 | 116.6 | -9.2% | chunk 35 | | Cultural Center | 85.5 | 82.9 | +3.1% | chunk 36 | | Healthcare Business | 304.2 | 348.2 | -12.6% | chunk 37 | - Gross profit decreased from **RMB 744.3 million** to **RMB 462.7 million**, and gross profit margin decreased from **13.7%** to **12.5%**, mainly due to higher costs of completed and delivered properties[38](index=38&type=chunk) - Other losses, net, were approximately **RMB 5,294.7 million**, mainly including write-downs of completed properties held for sale and properties under development of approximately **RMB 6,213.4 million**[39](index=39&type=chunk) - Sales and marketing costs decreased by **45.9%**, and administrative expenses decreased by **33.4%** (mainly due to reduced staff costs)[40](index=40&type=chunk)[41](index=41&type=chunk) - Net finance costs increased by **28.0%** to approximately **RMB 1,201.8 million**[43](index=43&type=chunk) - Income tax changed from a credit in H1 2024 to an expense of approximately **RMB 370.0 million** in H1 2025[44](index=44&type=chunk) [Liquidity, Financial and Capital Resources](index=14&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) As of June 30, 2025, the Group's cash and bank balances decreased by 9.2%, total borrowings slightly decreased but remained high, with most repayable within one year; the gearing ratio increased, net current liabilities expanded, current ratio and cash to short-term debt ratio remained low, and asset-liability ratio (excluding contract liabilities) further deteriorated Liquidity Position (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | YoY Change | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances (including restricted) | 2,169.5 | 2,390.4 | -9.2% | chunk 46 | | Restricted Bank Balances | 1,420.4 | 1,692.7 | -16.1% | chunk 46 | Borrowings (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | YoY Change | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Total Borrowings | 133,738.7 | 135,073.6 | -1.0% | chunk 47 | | Repayable within one year | 119,252.0 | 118,077.8 | +1.0% | chunk 47 | Key Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | Change | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Gearing Ratio (Net Debt/Total Assets) | 64.9% | 63.0% | +1.9 percentage points | chunk 48 | | Net Current Liabilities | 61,949.5 million | 51,015.7 million | +21.4% | chunk 48 | | Quick Ratio | 0.02 times | 0.02 times | No change | chunk 48 | | Current Ratio | 0.7 times | 0.8 times | -0.1 times | chunk 48 | | Cash to Short-term Debt Ratio | 0.01 | 0.01 | No change | chunk 48 | | Asset-Liability Ratio (excluding contract liabilities) | 123.2% | 117.2% | +6.0 percentage points | chunk 49 | - Total interest expense was approximately **RMB 6,845.0 million**, an increase of **4.0% year-on-year**[50](index=50&type=chunk) - Exposed to foreign currency risk of approximately **RMB 85,308.0 million** in USD and HKD borrowings, but no foreign currency hedging policy is in place[51](index=51&type=chunk)[52](index=52&type=chunk) - Guarantees for mortgage financing provided by domestic banks to customers amounted to approximately **RMB 22,281.1 million**; financial guarantees for joint ventures, associates, and third-party liabilities amounted to approximately **RMB 20,643.7 million**[53](index=53&type=chunk) [Employees and Remuneration Policy](index=15&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had a total of 14,807 employees, with staff costs significantly decreasing; remuneration policy is based on performance, skills, experience, and market trends, and provides training and share option schemes - As of June 30, 2025, the Group employed **14,807 employees** (December 31, 2024: 15,225 employees)[54](index=54&type=chunk) - For the six months ended June 30, 2025, related staff costs were approximately **RMB 240.4 million** (H1 2024: RMB 446.4 million), a **46.1% year-on-year decrease**[54](index=54&type=chunk) - Employee remuneration is based on performance, skills, knowledge, experience, and market trends, with discretionary bonuses, cash incentives, and share option schemes[54](index=54&type=chunk) Project Portfolio [Project Portfolio Overview](index=17&type=section&id=Project%20Portfolio%20Overview) This section details the Group's 164 property projects across 44 cities as of June 30, 2025, categorized by region, including the Guangdong-Hong Kong-Macao Greater Bay Area, Western China, Bohai Rim, Central China, and Yangtze River Delta regions, covering residential, commercial, and mixed-use types, and specifying site area, total GFA, completed, under development, and for future development areas, as well as the Group's attributable interests - The Group has a large number of projects in the Guangdong-Hong Kong-Macao Greater Bay Area, including cities such as Shenzhen, Guangzhou, Foshan, Dongguan, Huizhou, Zhuhai, Zhongshan, Yangjiang, Jieyang, Jiangmen, Zhanjiang, Shantou, Hong Kong, and Sanya[59](index=59&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk)[65](index=65&type=chunk)[67](index=67&type=chunk) - Projects in Western China are mainly distributed in Chengdu, Nanchong, Chongqing, Kunming, and Guiyang[69](index=69&type=chunk)[71](index=71&type=chunk) - Bohai Rim projects include Beijing, Bazhou, Gu'an, Qingdao, Shenyang, Anshan, Benxi, Huludao, Huailai, Yanjiao, Liaoyang, Dandong, and Dalian[71](index=71&type=chunk)[73](index=73&type=chunk) - Central China projects are mainly located in Changsha, Hengyang, Wuhan, Ezhou, Xiaogan, Xinzheng, Xinxiang, and Luoyang[73](index=73&type=chunk)[75](index=75&type=chunk) - Yangtze River Delta projects are distributed in Shanghai, Hangzhou, Shaoxing, Ningbo, Suzhou, Zhangjiagang, Nanjing, Wuxi, Xuzhou, Jiangyin, and Taizhou[75](index=75&type=chunk)[77](index=77&type=chunk) - As of June 30, 2025, the total GFA of completed properties held for sale was approximately **3,571,793 square meters**[79](index=79&type=chunk) [Properties Under Development](index=39&type=section&id=Properties%20Under%20Development) This section lists the Group's property projects or project phases under development as of June 30, 2025, detailing location, total GFA, saleable GFA, construction period, pre-sale permit acquisition status, estimated completion time, and the Group's attributable interests - Total GFA of properties under development is **7,033,072 square meters**, with an estimated saleable GFA of **5,648,558 square meters**[84](index=84&type=chunk) - Multiple projects have obtained pre-sale permits, with estimated completion times ranging from Q3 2025 to Q4 2028[83](index=83&type=chunk)[85](index=85&type=chunk) - Projects are widely distributed, including cities such as Shenzhen, Guangzhou, Huizhou, Chengdu, Chongqing, Shenyang, Changsha, Wuhan, Luoyang, Nanjing, Wuxi, and Xuzhou[82](index=82&type=chunk)[84](index=84&type=chunk) [Properties for Future Development](index=43&type=section&id=Properties%20for%20Future%20Development) This section lists the Group's property projects for future development as of June 30, 2025, including estimated total GFA and estimated completion time, showcasing the Group's long-term development reserves - Estimated total GFA of properties for future development is **10,146,119 square meters**[88](index=88&type=chunk) - Projects are distributed in cities such as Shenzhen, Guangzhou, Qingyuan, Dongguan, Huizhou, Zhuhai, Jieyang, Zhanjiang, Shantou, Chengdu, Chongqing, Guiyang, Shenyang, Anshan, Huludao, Huailai, Yanjiao, Liaoyang, Changsha, Luoyang, and Hangzhou[87](index=87&type=chunk)[88](index=88&type=chunk) - The estimated completion time for most properties for future development is "to be determined," with some projects expected to be completed between 2028 and 2030[87](index=87&type=chunk)[88](index=88&type=chunk) Disclosure of Interests [2019 Share Option Scheme](index=45&type=section&id=2019%20Share%20Option%20Scheme) The company's 2019 Share Option Scheme, adopted in 2009, expired in 2019, but as of June 30, 2025, there were still 134,422,010 unexercised share options, representing approximately 1.92% of the issued share capital; no share options were granted, exercised, cancelled, or lapsed during the period - The 2019 Share Option Scheme aims to incentivize eligible participants and attract and retain talent[90](index=90&type=chunk)[97](index=97&type=chunk) - As of June 30, 2025, the number of unexercised share options under the 2019 Share Option Scheme was **134,422,010 shares**, representing approximately **1.92%** of the issued share capital[92](index=92&type=chunk)[101](index=101&type=chunk) - During the period, no share options were granted, exercised, cancelled, or lapsed under the terms of the scheme[93](index=93&type=chunk) - The exercise period for share options does not exceed ten years from the date of grant and acceptance, and the subscription price is not less than the highest of the closing price, the average closing price for five business days, and the nominal value of the shares[95](index=95&type=chunk)[98](index=98&type=chunk) [New Share Option Scheme](index=49&type=section&id=New%20Share%20Option%20Scheme) The company adopted a New Share Option Scheme on June 14, 2019, to incentivize participants who contribute to the Group; as of June 30, 2025, the maximum number of shares available for issue upon full exercise was 596,989,598 shares, representing approximately 8.51% of the issued share capital; no share options were granted, exercised, cancelled, or lapsed during the period, and there were no outstanding share options - The New Share Option Scheme aims to incentivize new eligible participants to optimize performance efficiency for the benefit of the Group, and to attract and retain talent[103](index=103&type=chunk)[107](index=107&type=chunk) - The maximum number of shares available for issue upon full exercise of new share options that may be granted under the New Share Option Scheme is **596,989,598 shares**, representing approximately **8.51%** of the issued share capital[105](index=105&type=chunk) - For the period ended June 30, 2025, no share options were granted, exercised, cancelled, or lapsed under the New Share Option Scheme, and there were no outstanding share options[105](index=105&type=chunk) [Directors' and Chief Executive's Interests in Securities](index=51&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20in%20Securities) As of June 30, 2025, the Company's directors and chief executive held interests in the shares and underlying shares of the Company and its associated corporations, with Mr. Kwok Ying Shing holding 25.54% of the Company's shares through family trusts and controlled corporations Directors' Long Position in the Company's Shares (June 30, 2025) | Director Name | Capacity | Number of Ordinary Shares (L) | Approximate Percentage of Total Issued Shares | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Kwok Ying Shing | Family Interest/Controlled Corporation Interest/Trust Interest | 1,791,656,738 | 25.54% | chunk 112 | | Mai Fan | Personal Interest | 238,000 | 0.00% | chunk 112 | | Zhang Yizhao | Personal Interest | 7,600,000 | 0.11% | chunk 112 | Directors' Long Position in Underlying Shares of the Company (June 30, 2025) | Director Name | Capacity | Number of Underlying Shares | Approximate Percentage of the Company's Issued Share Capital | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Mai Fan | Beneficial Owner | 10,324,271 | 0.15% | chunk 113 | | Li Haiming | Beneficial Owner | 7,226,990 | 0.10% | chunk 113 | | Song Wei | Beneficial Owner | 8,259,417 | 0.12% | chunk 113 | | Liu Lihao | Beneficial Owner | 4,129,708 | 0.06% | chunk 113 | | Rao Yong | Beneficial Owner | 1,445,398 | 0.02% | chunk 113 | | Zhang Yizhao | Beneficial Owner | 1,445,398 | 0.02% | chunk 113 | | Liu Xuesheng | Beneficial Owner | 1,238,913 | 0.02% | chunk 113 | [Major Shareholders](index=53&type=section&id=Major%20Shareholders) As of June 30, 2025, in addition to directors and chief executives, several entities were listed as major shareholders of the Company, including Dachang Investment Limited, Dafeng Investment Limited, Dazheng Investment Limited, and Foresea Life Insurance Co., Ltd. Major Shareholders' Long Position in the Company's Shares (June 30, 2025) | Major Shareholder Name/Entity | Capacity | Number of Shares (L) | Approximate Percentage of the Company's Issued Share Capital | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Dachang Investment Limited | Beneficial Owner | 819,506,003 | 11.68% | chunk 115 | | KS Holdings 1 Limited | Trustee | 819,506,003 | 11.68% | chunk 115 | | Dafeng Investment Limited | Beneficial Owner | 970,533,735 | 13.83% | chunk 115 | | The Bank of East Asia (Trustees) Limited | Trustee | 970,533,735 | 13.83% | chunk 115 | | Dazheng Investment Limited | Beneficial Owner | 963,503,287 | 13.73% | chunk 115 | | Foresea Life Insurance Co., Ltd. | Beneficial Owner/Controlled Corporation Interest | 649,700,957 / 887,995,149 | 21.92% | chunk 115 | | Foresea Resources Investment Holding Group Co., Ltd. | Beneficial Owner | 887,995,149 | 12.66% | chunk 115 | - KS Holdings 1 Limited and The Bank of East Asia (Trustees) Limited are trustees under family trusts established by Mr. Kwok Ying Shing for his benefit[117](index=117&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=53&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group recorded a loss for the period of RMB 10,096.7 million, a 12.3% increase from the prior year; revenue, gross profit, and various operating metrics showed negative growth, mainly due to decreased property sales and increased other losses, net Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Indicator | H1 2025 | H1 2024 | YoY Change | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Revenue | 3,700,964 | 5,428,581 | -31.8% | chunk 118 | | Cost of Sales | (3,238,229) | (4,684,268) | -30.9% | chunk 118 | | Gross Profit | 462,735 | 744,313 | -37.8% | chunk 118 | | Other Income, Gains and Losses, Net | (5,294,652) | (3,293,358) | +60.8% | chunk 118 | | Selling and Marketing Costs | (131,927) | (243,989) | -45.9% | chunk 118 | | Administrative Expenses | (472,983) | (710,042) | -33.4% | chunk 118 | | Net Fair Value Loss on Investment Properties | (294,612) | (489,190) | -39.8% | chunk 118 | | Impairment Losses Recognised | (1,646,488) | (2,670,274) | -38.4% | chunk 118 | | Operating Loss | (7,377,909) | (6,662,540) | +10.7% | chunk 118 | | Share of Results of Associates | (1,046,885) | (1,517,311) | -31.0% | chunk 118 | | Share of Results of Joint Ventures | (100,102) | 52,023 | N/A | chunk 118 | | Net Finance Costs | (1,201,782) | (939,181) | +27.9% | chunk 118 | | Income Tax Expense / (Credit) | (369,988) | 73,097 | N/A | chunk 118 | | Loss for the Period | (10,096,666) | (8,993,912) | +12.3% | chunk 118 | | Loss Attributable to Owners of the Company for the Period | (10,030,459) | (9,115,416) | +10.0% | chunk 118 | | Basic Loss Per Share (RMB) | (1.430) | (1.299) | +10.1% | chunk 118 | - Total comprehensive expense for the period was **RMB 10,060,502 thousand**, an increase from **RMB 8,998,094 thousand** in the prior year[119](index=119&type=chunk) Condensed Consolidated Statement of Financial Position [Condensed Consolidated Statement of Financial Position](index=55&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were RMB 202,640.9 million, a 3.8% decrease from December 31, 2024; net current liabilities expanded to RMB 61,949.5 million, and total net liabilities increased to RMB 41,808.0 million, reflecting continued liquidity pressure Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | YoY Change | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Total Non-current Assets | 37,104,893 | 38,859,191 | -4.5% | chunk 122 | | Total Current Assets | 165,536,043 | 171,820,474 | -3.6% | chunk 122 | | **Total Assets** | **202,640,936** | **210,679,665** | **-3.8%** | chunk 168 | | Total Current Liabilities | 227,485,524 | 222,836,146 | +2.1% | chunk 122 | | Total Non-current Liabilities | 16,963,439 | 19,585,319 | -13.4% | chunk 123 | | **Total Liabilities** | **244,448,963** | **242,421,465** | **+0.8%** | chunk 168 | | Net Current Liabilities | (61,949,481) | (51,015,672) | +21.4% | chunk 123 | | Net Liabilities | (41,808,027) | (31,741,800) | +31.7% | chunk 123 | | Deficit Attributable to Owners of the Company | (50,574,912) | (40,576,796) | +24.6% | chunk 123 | | Total Deficit | (41,808,027) | (31,741,800) | +31.7% | chunk 123 | - The carrying value of properties under development was **RMB 69,864.5 million**, and completed properties held for sale were **RMB 17,040.6 million**[122](index=122&type=chunk) - Total borrowings amounted to **RMB 133,738.7 million**, of which **RMB 119,252.0 million** were repayable within one year[122](index=122&type=chunk)[211](index=211&type=chunk) Condensed Consolidated Statement of Changes in Equity [Condensed Consolidated Statement of Changes in Equity](index=57&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's total equity deficit expanded from RMB 31,741.8 million at the beginning of the period to RMB 41,808.0 million at June 30, 2025, primarily due to a loss for the period of RMB 10,096.7 million Condensed Consolidated Statement of Changes in Equity (RMB thousand) | Indicator | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Balance at January 1 | (31,741,800) | 7,724,355 | chunk 126, 127 | | Loss for the Period | (10,096,666) | (8,993,912) | chunk 126, 127 | | Other Comprehensive Income / (Expense) for the Period | 36,164 | (4,182) | chunk 126, 127 | | Total Comprehensive Expense for the Period | (10,060,502) | (8,998,094) | chunk 126, 127 | | Dividends Paid to Non-controlling Interests of Subsidiaries | (5,725) | (14,661) | chunk 126, 127 | | Balance at June 30 | (41,808,027) | (8,588,098) | chunk 126, 127 | - The deficit attributable to owners of the Company expanded from **RMB 40,576.8 million** at the beginning of the period to **RMB 50,574.9 million** at the end of the period[126](index=126&type=chunk) Condensed Consolidated Statement of Cash Flows [Condensed Consolidated Statement of Cash Flows](index=59&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The Group's cash flow from operating activities turned from a net outflow to a net inflow of RMB 137.1 million in H1 2025, and cash flow from investing activities was also a net inflow of RMB 79.3 million; however, cash flow from financing activities was a net outflow of RMB 314.0 million, resulting in a net decrease in cash and cash equivalents of RMB 97.6 million Condensed Consolidated Statement of Cash Flows (RMB thousand) | Indicator | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Net Cash From / (Used In) Operating Activities | 137,069 | (648,710) | chunk 129 | | Net Cash From / (Used In) Investing Activities | 79,276 | (261,095) | chunk 129 | | Net Cash (Used In) / From Financing Activities | (313,979) | 351,647 | chunk 130 | | Net Decrease in Cash and Cash Equivalents | (97,634) | (558,158) | chunk 130 | | Cash and Cash Equivalents at End of Period | 749,047 | 745,654 | chunk 130 | - Income tax paid was **RMB 56,611 thousand**, and interest paid was **RMB 178,989 thousand**[129](index=129&type=chunk) Notes to the Condensed Consolidated Financial Statements [1. General Information](index=62&type=section&id=1.%20General%20Information) This note outlines Kaisa Group Holdings Ltd.'s registration information, listing location, principal business scope, and the presentation currency of its financial statements - The Company is incorporated in the Cayman Islands, and its shares are listed on the Main Board of the Hong Kong Stock Exchange[132](index=132&type=chunk) - The Group is principally engaged in property development, property investment, property management, hotel and catering operations, cultural center operations, and healthcare business in China[132](index=132&type=chunk) - The unaudited condensed consolidated interim financial statements are presented in RMB, which is also the functional currency of the Company[133](index=133&type=chunk) [2. Basis of Preparation and Summary of Significant Accounting Policies](index=62&type=section&id=2.%20Basis%20of%20Preparation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note describes the basis of preparation for the interim financial statements, which comply with HKAS 34 and incorporate amendments to HKFRSs; despite significant uncertainties, the Board prepared the statements on a going concern basis and outlines plans and measures taken to address liquidity challenges - The unaudited condensed consolidated interim financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[134](index=134&type=chunk) - For the six months ended June 30, 2025, the Group incurred a net loss attributable to owners of the Company of approximately **RMB 10,030.5 million** and had net current liabilities of approximately **RMB 61,949.5 million**[139](index=139&type=chunk) - Approximately **RMB 114,017.1 million** of the Group's borrowings were in default and/or cross-default, and the Company faced winding-up petitions[139](index=139&type=chunk)[140](index=140&type=chunk) - To address going concern uncertainties, the Group has implemented various plans and measures, including offshore debt restructuring, renewal and extension of borrowings, monitoring property development progress, adjusting sales strategies, and controlling costs[142](index=142&type=chunk)[143](index=143&type=chunk)[145](index=145&type=chunk) - Despite measures taken, significant uncertainties remain regarding the Group's ability to continue as a going concern, dependent on obtaining financing and operating cash flows[146](index=146&type=chunk) [3. Financial Risk Management and Fair Value Estimation of Financial Instruments](index=67&type=section&id=3.%20Financial%20Risk%20Management%20and%20Fair%20Value%20Estimation%20of%20Financial%20Instruments) This note describes the market risk, credit risk, and liquidity risk faced by the Group, and provides fair value estimates of financial instruments, categorized into Level 1, Level 2, and Level 3; there is a significant difference between the carrying value and fair value of senior notes - The Group's business is exposed to market risk (including foreign currency risk, interest rate risk, and price risk), credit risk, and liquidity risk[147](index=147&type=chunk) Financial Assets at Fair Value Through Profit or Loss (RMB thousand) | Level | June 30, 2025 | December 31, 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Level 1 | 979,866 | 907,510 | chunk 151 | | Level 2 | 876,211 | 993,480 | chunk 151 | | Level 3 | 340,061 | 343,510 | chunk 151 | | **Total** | **2,196,138** | **2,244,500** | chunk 151 | - For the six months ended June 30, 2025, the net fair value loss on financial assets at fair value through profit or loss was **RMB 22,046 thousand**[156](index=156&type=chunk)[175](index=175&type=chunk) Senior Notes Carrying Value vs. Fair Value (RMB thousand) | Indicator | June 30, 2025 Carrying Value | June 30, 2025 Fair Value | December 31, 2024 Carrying Value | December 31, 2024 Fair Value | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Senior Notes | 82,928,623 | 3,610,873 | 83,273,840 | 4,959,984 | chunk 158 | [4. Segment Information](index=71&type=section&id=4.%20Segment%20Information) This note provides revenue and results, asset and liability information for the Group's seven reportable segments (property development, property investment, property management, hotel and catering operations, cultural center operations, healthcare business, and others) based on the nature of business operations; geographical segment information is not presented as most revenue and assets are from China - The Group has seven reportable segments: property development, property investment, property management, hotel and catering operations, cultural center operations, healthcare business, and others[163](index=163&type=chunk) H1 2025 Segment Revenue (RMB thousand) | Segment | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Property Development | 2,089,839 | 3,691,046 | chunk 167 | | Property Investment | 224,757 | 207,262 | chunk 167 | | Property Management | 771,904 | 826,372 | chunk 167 | | Hotel and Catering Operations | 105,904 | 116,633 | chunk 167 | | Cultural Center Operations | 85,457 | 82,884 | chunk 167 | | Healthcare Business | 304,225 | 348,183 | chunk 167 | | Others | 118,878 | 156,201 | chunk 167 | | **Total Revenue from External Customers** | **3,700,964** | **5,428,581** | chunk 167 | - As of June 30, 2025, over **90%** of the Group's assets were located in China, and most of its revenue and results were derived from the Chinese market[169](index=169&type=chunk) - For the six months ended June 30, 2025, no single customer accounted for more than **10%** of the Group's total revenue[170](index=170&type=chunk) [5. Revenue](index=76&type=section&id=5.%20Revenue) This note details the Group's revenue by major product lines and business segments, as well as by timing of revenue recognition; property sales revenue significantly decreased, while rental income slightly increased Revenue from Contracts with Customers (RMB thousand) | Source | H1 2025 | H1 2024 | YoY Change | Original Reference | | :--- | :--- | :--- | :--- | :--- | | Sales of Properties | 2,089,839 | 3,691,046 | -43.4% | chunk 172 | | Provision of Property Management Services | 771,904 | 826,372 | -6.6% | chunk 172 | | Provision of Hotel and Catering Services | 105,904 | 116,633 | -9.2% | chunk 172 | | Provision of Cultural Center Services | 85,457 | 82,884 | +3.1% | chunk 172 | | Provision of Healthcare Business Services | 304,225 | 348,183 | -12.6% | chunk 172 | | Others | 118,878 | 156,201 | -23.9% | chunk 172 | | **Subtotal** | **3,476,207** | **5,221,319** | **-33.5%** | chunk 172 | - Rental income from investment properties was **RMB 224,757 thousand**, an **8.4% year-on-year increase**[172](index=172&type=chunk) - Of the revenue from contracts with customers, revenue recognized over time was **RMB 963,265 thousand**, and revenue recognized at a point in time was **RMB 2,512,942 thousand**[174](index=174&type=chunk) [6. Other Income, Gains and Losses, Net](index=77&type=section&id=6.%20Other%20Income%2C%20Gains%20and%20Losses%2C%20Net) This note lists the components of the Group's other income, gains and losses, net, showing a net loss of RMB 5,294.7 million in H1 2025, primarily due to write-downs of completed properties held for sale and properties under development - Other losses, net, were approximately **RMB 5,294.7 million** (H1 2024: RMB 3,293.4 million)[175](index=175&type=chunk) - Primarily included write-downs of completed properties held for sale and properties under development of approximately **RMB 6,213.4 million**[175](index=175&type=chunk) - Net exchange gains were approximately **RMB 469.5 million** (H1 2024: loss of approximately RMB 452.4 million)[175](index=175&type=chunk) - Reversal of write-off of trade receivables, deposits, and other receivables amounted to **RMB 485.6 million**[175](index=175&type=chunk) [7. Impairment Losses Recognised](index=78&type=section&id=7.%20Impairment%20Losses%20Recognised) This note discloses the Group's recognized impairment losses, primarily on financial assets and financial guarantees, totaling RMB 1,646.5 million, a decrease from the prior year Impairment Losses Recognised (RMB thousand) | Item | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Financial Assets (including trade and other receivables, etc.) | 1,582,780 | 2,734,238 | chunk 176 | | Financial Liabilities from Financial Guarantees | 63,708 | (63,964) | chunk 176 | | **Total** | **1,646,488** | **2,670,274** | chunk 176 | [8. Finance Income and Finance Costs](index=78&type=section&id=8.%20Finance%20Income%20and%20Finance%20Costs) This note presents the Group's finance income and finance costs; in H1 2025, interest income from bank deposits decreased, while total interest expense increased, leading to a significant rise in net finance costs Finance Income and Finance Costs (RMB thousand) | Item | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Interest Income from Bank Deposits | 3,091 | 5,945 | chunk 177 | | Total Interest Expense | 6,845,043 | 6,583,541 | chunk 177 | | Less: Capitalized Interest | (5,640,170) | (5,638,415) | chunk 177 | | **Net Finance Costs** | **1,204,873** | **945,126** | chunk 177 | - Interest expense primarily arose from bank borrowings, other borrowings, and senior notes[177](index=177&type=chunk) [9. Loss Before Income Tax](index=79&type=section&id=9.%20Loss%20Before%20Income%20Tax) This note details the various expenses deducted or included in the calculation of loss before income tax, including staff costs, net rental income from investment properties, depreciation and amortization, and cost of sales Components of Loss Before Income Tax (RMB thousand) | Item | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Staff Costs (including directors' emoluments) | 240,388 | 446,356 | chunk 178 | | Net Rental Income from Investment Properties | 148,400 | 113,719 | chunk 178 | | Depreciation and Amortization | 169,184 | 201,661 | chunk 178 | | Cost of Sales | 3,238,229 | 4,684,268 | chunk 178 | [10. Income Tax Expense / (Credit)](index=80&type=section&id=10.%20Income%20Tax%20Expense%20%2F%20%28Credit%29) This note explains the Group's income tax expense, including current and deferred income tax, and describes the applicable tax rates and preferential policies for China corporate income tax, land appreciation tax, and Hong Kong profits tax Income Tax Expense / (Credit) (RMB thousand) | Item | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Current Income Tax (China Corporate Income Tax and Land Appreciation Tax) | 447,721 | 133,005 | chunk 179 | | Deferred Income Tax | (77,733) | (206,102) | chunk 179 | | **Total** | **369,988** | **(73,097)** | chunk 179 | - China Corporate Income Tax rate is **25%**, with some eligible companies enjoying a preferential tax rate of **15%**[182](index=182&type=chunk)[183](index=183&type=chunk) - China Land Appreciation Tax is levied at progressive rates from **30% to 60%** on the appreciation of land value[185](index=185&type=chunk) - No provision for Hong Kong profits tax was made for the six months ended June 30, 2025 and 2024[181](index=181&type=chunk) [11. Loss Per Share](index=82&type=section&id=11.%20Loss%20Per%20Share) This note calculates the basic and diluted loss per share attributable to owners of the Company, which are the same due to the anti-dilutive effect of unexercised share options Loss Per Share (RMB) | Indicator | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Basic Loss Per Share | (1.430) | (1.299) | chunk 186 | | Diluted Loss Per Share | (1.430) | (1.299) | chunk 186 | - The weighted average number of ordinary shares used to calculate basic loss per share was **7,015,469 thousand shares**[186](index=186&type=chunk) - The anti-dilutive effect of unexercised share options resulted in diluted loss per share being the same as basic loss per share[186](index=186&type=chunk) [12. Dividends](index=82&type=section&id=12.%20Dividends) This note confirms that no interim dividends were paid, declared, or proposed by the Company for the six months ended June 30, 2025 and 2024 - No interim dividends were paid, declared, or proposed for the six months ended June 30, 2025 and 2024[187](index=187&type=chunk) [13. Property, Plant and Equipment, Investment Properties and Land Use Rights](index=83&type=section&id=13.%20Property%2C%20Plant%20and%20Equipment%2C%20Investment%20Properties%20and%20Land%20Use%20Rights) This note provides details of changes in the carrying values of property, plant and equipment, investment properties, and land use rights; the fair value of investment properties decreased during the period, and their fair value measurement is classified as Level 3 Carrying Value (RMB thousand) | Item | June 30, 2025 | January 1, 2025 | Original Reference | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 4,227,335 | 4,317,377 | chunk 188 | | Investment Properties | 8,067,838 | 8,409,800 | chunk 188 | | Land Use Rights | 358,195 | 364,866 | chunk 188 | - Net decrease in fair value of investment properties was **RMB 294,612 thousand**[188](index=188&type=chunk) - The fair value of completed commercial properties is generally derived from the income capitalization approach, and their fair value measurement is classified as Level 3[189](index=189&type=chunk)[191](index=191&type=chunk) [14. Right-of-Use Assets](index=84&type=section&id=14.%20Right-of-Use%20Assets) This note explains that right-of-use assets primarily refer to leases for staff quarters, offices, and office equipment located in Hong Kong and China - Right-of-use assets refer to leases for staff quarters, offices, and office equipment projects located in Hong Kong and China[192](index=192&type=chunk) [15. Goodwill and Intangible Assets](index=85&type=section&id=15.%20Goodwill%20and%20Intangible%20Assets) This note provides details of changes in the carrying values of goodwill and intangible assets (including trademarks and patents, customer relationships, and others); goodwill is primarily attributable to the healthcare business and property management business Goodwill and Intangible Assets Carrying Value (RMB thousand) | Item | June 30, 2025 | January 1, 2025 | Original Reference | | :--- | :--- | :--- | :--- | | Goodwill | 740,971 | 740,971 | chunk 193 | | Trademarks and Patents | 99,150 | 113,258 | chunk 193 | | Customer Relationships | 16,772 | 19,322 | chunk 193 | | Others | 2,313 | 2,347 | chunk 193 | | **Total** | **859,206** | **875,898** | chunk 193 | - Goodwill is primarily attributable to the healthcare business (**RMB 490,387 thousand**) and property management business (**RMB 140,657 thousand**)[194](index=194&type=chunk) [16. Investments Accounted for Using the Equity Method](index=87&type=section&id=16.%20Investments%20Accounted%20for%20Using%20the%20Equity%20Method) This note presents changes in the Group's investments in associates and joint ventures, reflecting the impact of share of results and other comprehensive expenses Changes in Investments in Associates (RMB thousand) | Item | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | At January 1 | 14,381,513 | 22,254,794 | chunk 195 | | Share of Results of Associates | (1,046,885) | (1,517,311) | chunk 195 | | Share of Other Comprehensive (Expense) / Income of Associates | (823) | 1,280 | chunk 195 | | At June 30 | 13,333,805 | 16,384,473 | chunk 195 | Changes in Investments in Joint Ventures (RMB thousand) | Item | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | At January 1 | 7,446,149 | 8,450,839 | chunk 196 | | Share of Results of Joint Ventures | (100,102) | 52,023 | chunk 196 | | At June 30 | 7,346,047 | 8,463,211 | chunk 196 | [17. Financial Assets at Fair Value Through Profit or Loss](index=88&type=section&id=17.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) This note presents changes in financial assets at fair value through profit or loss, including listed and unlisted securities or funds; a net fair value loss was recorded during the period, and some receivables were reclassified Changes in Financial Assets at Fair Value Through Profit or Loss (RMB thousand) | Item | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | At January 1 | 2,244,500 | 5,530,822 | chunk 197 | | Net Fair Value Loss | (22,046) | (73,888) | chunk 197 | | At June 30 | 2,196,138 | 2,498,634 | chunk 197 | - As of June 30, 2025, included **RMB 979,866 thousand** in listed securities and **RMB 1,216,272 thousand** in unlisted securities or funds and other financial assets[197](index=197&type=chunk) - In 2024, approximately **RMB 2,913 million** of equity interests in unlisted entities were reclassified to "other receivables" due to a court ruling that the seller should refund the initial investment cost[197](index=197&type=chunk) [18. Trade Receivables, Prepayments, Deposits and Other Receivables](index=89&type=section&id=18.%20Trade%20Receivables%2C%20Prepayments%2C%20Deposits%20and%20Other%20Receivables) This note details the composition and aging analysis of trade receivables, prepayments, deposits, and other receivables, and discloses changes in the provision for expected credit losses Net Trade Receivables (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Gross Trade Receivables | 1,970,186 | 1,762,498 | chunk 198 | | Less: Provision for Expected Credit Losses | (668,099) | (501,956) | chunk 198 | | **Net** | **1,302,087** | **1,260,542** | chunk 198 | - As of June 30, 2025, trade receivables over **365 days** amounted to **RMB 1,057,208 thousand**[200](index=200&type=chunk) - Other receivables (before impairment) primarily included interest receivable, amounts to be refunded by the government for land acquisitions in China, and receivables reclassified from financial assets at fair value through profit or loss[203](index=203&type=chunk) - The total impairment provision for trade receivables, deposits, and other receivables increased from **RMB 4,604,850 thousand** at January 1, 2025, to **RMB 6,187,630 thousand** at June 30, 2025[204](index=204&type=chunk) [19. Properties Under Development](index=93&type=section&id=19.%20Properties%20Under%20Development) This note presents the carrying value of properties under development, which are located in China and stated at the lower of cost and net realisable value, with provisions made Properties Under Development Carrying Value (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Gross Properties Under Development | 83,246,731 | 82,188,077 | chunk 207 | | Less: Provision Made | (13,382,240) | (8,529,824) | chunk 207 | | **Net** | **69,864,491** | **73,658,253** | chunk 207 | [20. Restricted Bank Balances and Cash and Cash and Bank Balances](index=93&type=section&id=20.%20Restricted%20Bank%20Balances%20and%20Cash%20and%20Cash%20and%20Bank%20Balances) This note provides details of restricted bank balances and cash and cash and bank balances by currency, and notes that they are subject to China's foreign exchange control rules and regulations Cash and Bank Balances by Currency (RMB thousand) | Currency | June 30, 2025 | December 31, 2024 | Original Reference | | :--- | :--- | :--- | :--- | | RMB | 1,987,271 | 2,313,815 | chunk 208 | | HKD | 22,716 | 28,937 | chunk 208 | | USD | 159,469 | 47,608 | chunk 208 | | **Total** | **2,169,456** | **2,390,360** | chunk 208 | - RMB denominated balances are subject to relevant foreign exchange control rules and regulations promulgated by the Chinese government for conversion into foreign currency and remittance out of China[208](index=208&type=chunk) [21. Other Payables](index=94&type=section&id=21.%20Other%20Payables) This note details the composition of other payables, including accrued interest, deed tax and other taxes payable, provisions for financial guarantee contracts, and amounts payable to associates and joint ventures, categorized into current and non-current portions Other Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Other Payables and Accruals | 6,656,207 | 6,772,135 | chunk 209 | | Accrued Interest | 48,191,363 | 41,525,309 | chunk 209 | | Deed Tax and Other Taxes Payable | 3,671,206 | 3,598,374 | chunk 209 | | Provision for Financial Guarantee Contracts | 2,419,093 | 2,355,385 | chunk 209 | | Amounts Payable to Associates | 1,063,755 | 1,063,227 | chunk 209 | | Amounts Payable to Joint Ventures | 4,530,446 | 4,464,817 | chunk 209 | | **Total** | **68,678,005** | **61,928,250** | chunk 209 | - The current portion is **RMB 68,670,610 thousand**, and the non-current portion is **RMB 7,395 thousand**[209](index=209&type=chunk) [22. Lease Liabilities](index=95&type=section&id=22.%20Lease%20Liabilities) This note presents the present value of the Group's lease liabilities, categorized by maturity date, and distinguished between current and non-current portions Present Value of Lease Liabilities (RMB thousand) | Maturity Date | June 30, 2025 | December 31, 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Due within one year | 140,978 | 145,110 | chunk 210 | | Due in the second to fifth year | 328,300 | 326,106 | chunk 210 | | Due after five years | 57,298 | 99,794 | chunk 210 | | **Total** | **526,576** | **571,010** | chunk 210 | [23. Borrowings](index=96&type=section&id=23.%20Borrowings) This note details the composition of the Group's borrowings, including senior notes, bank borrowings, other borrowings, and loans from related companies and the controlling shareholder, analyzed by repayment schedule and collateral; most senior notes are classified as current liabilities due to default clauses Borrowings Composition (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Senior Notes | 82,928,623 | 83,273,840 | chunk 211 | | Bank Borrowings | 20,101,353 | 20,334,066 | chunk 211 | | Other Borrowings | 30,484,930 | 31,241,875 | chunk 211 | | Loans from Related Companies | 108,781 | 108,781 | chunk 211 | | Loans from the Company's Controlling Shareholder | 115,000 | 115,000 | chunk 211 | | **Total** | **133,738,687** | **135,073,562** | chunk 211 | Borrowings Repayment Schedule (RMB thousand) | Repayment Period | June 30, 2025 | Original Reference | | :--- | :--- | :--- | | Within one year or on demand | 119,252,045 | chunk 211 | | Over one year but not exceeding two years | 2,525,640 | chunk 211 | | Over two years but not exceeding five years | 10,120,002 | chunk 211 | | Over five years | 1,841,000 | chunk 211 | - All senior notes are classified as current liabilities due to relevant default and/or cross-default clauses[214](index=214&type=chunk) - Bank and other borrowings of **RMB 33,224,660 thousand** are jointly secured by certain of the Group's property, plant and equipment, investment properties, land use rights, properties under development, completed properties held for sale, and restricted bank balances and cash[216](index=216&type=chunk)[217](index=217&type=chunk) [24. Share Capital and Share Premium](index=99&type=section&id=24.%20Share%20Capital%20and%20Share%20Premium) This note presents the Company's share capital and share premium, which remained unchanged as of June 30, 2025, compared to January 1, 2025 Share Capital and Share Premium (RMB thousand) | Item | June 30, 2025 | January 1, 2025 | Original Reference | | :--- | :--- | :--- | :--- | | Equivalent Par Value of Ordinary Shares | 613,530 | 613,530 | chunk 218 | | Share Premium | 6,376,801 | 6,376,801 | chunk 218 | | **Total** | **6,990,331** | **6,990,331** | chunk 218 | - The number of ordinary shares was **7,015,468,487 shares**[218](index=218&type=chunk) [25. Perpetual Capital Securities](index=99&type=section&id=25.%20Perpetual%20Capital%20Securities) This note describes the Company's issued perpetual capital securities, with a total principal amount of USD 200,000,000, classified as equity, and for which distribution payments have been deferred since March 30, 2023 - The Company issued **10.875% perpetual capital securities** with a total principal amount of **USD 200,000,000** (approximately **RMB 1,361,519 thousand**)[219](index=219&type=chunk) - These securities are classified as equity under HKAS 32, as they do not contain any contractual obligation to deliver cash or other financial assets[219](index=219&type=chunk) - The Company has elected to defer distribution payments since **March 30, 2023**, **September 30, 2023**, **March 30, 2024**, **September 30, 2024**, and **March 30, 2025**[220](index=220&type=chunk) [26. Reserves](index=100&type=section&id=26.%20Reserves) This note provides details of changes in the Group's reserves, including merger reserve, exchange fluctuation reserve, statutory reserve, share option reserve, capital reserve, and retained earnings; the loss for the period led to a significant decrease in retained earnings, expanding the total reserve deficit Changes in Reserves (RMB thousand) | Item | January 1, 2025 | Loss for the Period | Other Comprehensive Income / (Expense) for the Period | Lapsed Share Options | June 30, 2025 | Original Reference | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Merger Reserve | 382 | – | – | – | 382 | chunk 221 | | Exchange Fluctuation Reserve | 17,488 | – | 33,166 | – | 50,654 | chunk 221 | | Statutory Reserve | 1,025,344 | – | – | – | 1,025,344 | chunk 221 | | Share Option Reserve | 51,688 | – | – | (22,485) | 29,203 | chunk 221 | | Capital Reserve | (159,350) | – | – | – | (159,350) | chunk 221 | | Retained Earnings | (49,852,733) | (10,030,459) | (823) | 22,485 | (59,861,530) | chunk 221 | | **Total** | **(48,917,181)** | **(10,030,459)** | **32,343** | **–** | **(58,915,297)** | chunk 221 | - Retained earnings significantly decreased due to the loss for the period, leading to an expanded deficit attributable to owners of the Company[221](index=221&type=chunk) - Allocation of statutory reserve is made in accordance with relevant rules and regulations in China[222](index=222&type=chunk) [27. Contingent Liabilities](index=102&type=section&id=27.%20Contingent%20Liabilities) This note discloses the Group's contingent liabilities, including mortgage credit guarantees for property buyers, corporate guarantees between subsidiaries, and financial guarantees for joint ventures, associates, and third parties; winding-up petitions against the Company and various lawsuits are also mentioned - As of June 30, 2025, the Group provided guarantees for mortgage credit granted by certain banks, amounting to **RMB 22,281,120 thousand**[224](index=224&type=chunk) - Financial guarantees provided by the Group for liabilities of joint ventures, associates, and third parties amounted to **RMB 20,643,697 thousand**, with a provision of **RMB 2,419,093 thousand** made[226](index=226&type=chunk) - The Company faced winding-up petitions, with the hearing adjourned to **October 6, 2025**[227](index=227&type=chunk) - Several subsidiaries of the Group faced lawsuits due to outstanding borrowings, but management believes no further provision is required[227](index=227&type=chunk)[228](index=228&type=chunk) [28. Commitments](index=104&type=section&id=28.%20Commitments) This note lists the Group's capital commitments, including commitments for land use rights acquisition and property development activities, as well as commitments for acquiring subsidiaries; short-term lease commitments and operating lease receivables are also disclosed Capital Commitments (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Acquisition of Land Use Rights and Property Development Activities | 11,292,484 | 11,300,005 | chunk 229 | | Acquisition of Subsidiaries | 13,000,000 | 13,000,000 | chunk 229 | | **Total** | **24,292,484** | **24,300,005** | chunk 229 | - Total operating lease receivables amounted to **RMB 804,192 thousand**[231](index=231&type=chunk) [29. Acquisition of Subsidiaries](index=106&type=section&id=29.%20Acquisition%20of%20Subsidiaries) This note describes the Group's acquisition of subsidiaries during the period, which were substantially treated as asset acquisitions, with no cash consideration in H1 2025 - For the six months ended June 30, 2025, the Group entered into share transfer agreements with existing business partners to acquire additional equity interests in investees for a total consideration of zero, which was treated as an acquisition of assets[232](index=232&type=chunk)[234](index=234&type=chunk) - For the six months ended June 30, 2024, the total acquisition consideration was approximately **RMB 1**, with a cash inflow of **RMB 127,494 thousand**[235](index=235&type=chunk)[237](index=237&type=chunk) [30. Disposal of Subsidiaries](index=108&type=section&id=30.%20Disposal%20of%20Subsidiaries) This note reports the Group's disposal of certain subsidiaries during the period, which did not conduct any business, and the disposal generated a net gain of RMB 18 thousand - For the six months ended June 30, 2025, the Group disposed of its entire equity interest in certain subsidiaries for a total consideration of zero[238](index=238&type=chunk)[239](index=239&type=chunk) - The disposal of subsidiaries generated a net gain of **RMB 18 thousand**[239](index=239&type=chunk) [31. Share Options](index=108&type=section&id=31.%20Share%20Options) This note details the share option schemes of the Company and its non-wholly owned subsidiaries (Kaisa Prosperity, Kaisa Health Group, Kaisa Capital Investment Group), including the terms of each scheme, the number of unexercised share options, fair value estimates, and changes during the period - The Company's 2019 Share Option Scheme had **134,422,010 unexercised share options** as of June 30, 2025, with no changes during the period[244](index=244&type=chunk)[243](index=243&type=chunk) - Kaisa Prosperity's Share Option Scheme had **6,090,000 unexercised share options** as of June 30, 2025, with **2,980,000 share options** lapsed during the period[248](index=248&type=chunk)[251](index=251&type=chunk) - Kaisa Health Group's Share Option Scheme had **92,000,000 unexercised share options** as of June 30, 2025, with **50,000,000 share options** lapsed during the period[256](index=256&type=chunk)[257](index=257&type=chunk) - Kaisa Capital Investment Group's Share Option Scheme had **no unexercised share options** as of June 30, 2025[262](index=262&type=chunk) - The fair value of all share options is estimated using the **Binomial Option Pricing Model**[245](index=245&type=chunk)[249](index=249&type=chunk)[258](index=258&type=chunk) [32. Related Party Transactions](index=119&type=section&id=32.%20Related%20Party%20Transactions) This note discloses significant transactions and balances with related parties, including rental expenses paid to the controlling shareholder, service income from and receivables/payables with joint ventures and associates, and key management emoluments Related Party Transactions (RMB thousand) | Transaction Type | H1 2025 | H1 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Rental Expenses Paid to Controlling Shareholder | 464 | 570 | chunk 264 | | Service Income from Joint Ventures | 23,176 | 45,210 | chunk 264 | | Service Income from Associates | 24,358 | 20,578 | chunk 264 | Balances with Related Parties (RMB thousand) | Balance Type | June 30, 2025 | December 31, 2024 | Original Reference | | :--- | :--- | :--- | :--- | | Loans from Related Companies | (108,781) | (108,781) | chunk 265 | | Loans from the Company's Controlling Shareholder | (115,000) | (115,000) | chunk 265 | | Amounts Receivable from Associates (net of ECL) | 2,335,359 | 2,751,573 | chunk 265 | | Amounts Receivable from Joint Ventures (net of ECL) | 14,101,504 | 14,027,935 | chunk 265 | | Amounts Payable to Associates | (1,063,755) | (1,063,227) | chunk 265 | | Amounts Payable to Joint Ventures | (4,530,446) | (4,468,817) | chunk 265 | - Key management emoluments were **RMB 8,238 thousand** (H1 2024: RMB 22,757 thousand)[266](index=266&type=chunk) [33. Events After the Reporting Period](index=120&type=section&id=33.%20Events%20After%20the%20Reporting%20Period) This note states that, apart from the disclosed matters, the Company had no significant events after the end of the reporting period - Apart from those disclosed, the Company had no significant events after the end of the reporting period[267](index=267&type=chunk) Other Information [Corporate Governance and Compliance](index=121&type=section&id=Corporate%20Governance%20and%20Compliance) The Company is committed to maintaining high standards of corporate governance and confirms compliance with the Corporate Governance Code and the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C1 of the Listing Rules in H1 2025; the Audit Committee reviewed the interim results, and there were no purchases, sales, or redemptions of listed securities during the period - The Company has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[269](index=269&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[270](index=270&type=chunk) - All Directors confirmed compliance with the Model Code set out in Appendix C3 of the Listing Rules[271](index=271&type=chunk) - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[272](index=272&type=chunk) - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2025[273](index=273&type=chunk) - There have been no changes in Directors' information requiring disclosure under Rule 13.51B(1) of the Listing Rules since the publication of the 2024 Annual Report[274](index=274&type=chunk)

Company Information [Board of Directors and Committees](index=3&type=section&id=Company%20Information) This section details the names and appointment changes of the company's board members, including executive, non-executive, and independent non-executive directors, along with the composition and chairpersons of the Audit, Remuneration, and Nomination Committees - Executive Directors include Mr. Liu Hongcai (Executive President) and Ms. Yang Lan (Chief Financial Officer)[5](index=5&type=chunk) - Non-Executive Directors include Mr. Zhu Jindong (Chairman), Mr. Timothy David Gildner, Mr. Sha Feng (appointed on April 17, 2025), and Mr. Chen Wenjian (resigned on March 31, 2025)[5](index=5&type=chunk) - Independent Non-Executive Directors include Mr. Li Enhui, Mr. Li Xinhu (appointed on August 15, 2025), Ms. Yu Shan, and Mr. Zhang Yue (resigned on June 4, 2025)[5](index=5&type=chunk) [Company Contact and Listing Information](index=3&type=section&id=1.2%20Company%20Contact%20and%20Listing%20Information) This section provides essential contact and listing details, including the company's registered office, principal places of business in China and Hong Kong, HKEX stock code (1778), website, auditor, share registrar, and principal bankers - The company's shares are listed on The Stock Exchange of Hong Kong Limited under stock code **1778**[6](index=6&type=chunk) - The principal place of business and headquarters in China is located at 10/F, Block B, Bojin Business Center, No. 1 Tairan 7th Road, Futian District, Shenzhen, China[6](index=6&type=chunk) - The auditor is BDO Limited[6](index=6&type=chunk) Honors and Awards [Honors and Awards](index=4&type=section&id=Honors%20and%20Awards) In the first half of 2025, the company received multiple industry honors and awards for excellent performance in property services, digitalization, service capabilities, top 100 enterprises, technology empowerment, regional excellence, and growth potential for listed companies, as well as community value-added service capabilities - Awarded "Top 50 Property Service Enterprises for Excellent Performance in 2025" and "Top 10 Property Service Enterprises for Digitalization Excellence in 2025"[8](index=8&type=chunk) - Continuously recognized as a "Top 100 Property Service Enterprise in China" for **17 consecutive years**[21](index=21&type=chunk) - Received "2025 Leading Property Technology Empowerment Enterprise in China" and "2025 Top 10 Property Service Listed Companies for Growth Potential in China"[10](index=10&type=chunk)[16](index=16&type=chunk) - Recognized in regional markets such as Shenzhen and Chengdu as "2025 Top 10 Excellent Property Service Enterprises in Shenzhen" and "2025 Top 10 Excellent Property Service Enterprises in Chengdu"[12](index=12&type=chunk)[13](index=13&type=chunk) Chairman's Report [Macroeconomic Environment and Policy Orientation](index=6&type=section&id=3.1%20Macroeconomic%20Environment%20and%20Policy%20Orientation) The report highlights that the Chinese property management industry is undergoing a transformation amidst a weak global economic recovery and increased domestic economic downward pressure, while national "14th Five-Year Plan" and policies from the Ministry of Housing and Urban-Rural Development and the Ministry of Civil Affairs provide support and new opportunities, driving the industry towards standardization, digitalization, green development, and "property services + elderly care" - Global economic recovery is weak, domestic economic pressure is high, and the property management industry faces a period of transformation[19](index=19&type=chunk) - The "14th Five-Year Plan," the Ministry of Housing and Urban-Rural Development's "Guiding Opinions on High-Quality Development of the Property Management Industry," and the "Smart Community Construction Guide" promote industry transformation towards standardization, digitalization, and green development[19](index=19&type=chunk) - The Ministry of Civil Affairs' "Property Services + Elderly Care" action plan provides new opportunities for expanding community services[19](index=19&type=chunk) [Financial and Operational Highlights](index=6&type=section&id=3.2%20Financial%20and%20Operational%20Highlights) As of June 30, 2025, the company's revenue from main operations reached RMB 1,039.4 million, net profit was approximately RMB 28.6 million, and net profit attributable to equity holders of the company was RMB 23.9 million, with a total contracted GFA of 281 million square meters, serving 1,651 communities across 118 cities and over 7 million property owners 2025 H1 Key Financial Data | Indicator | Amount (RMB million) | | :--- | :--- | | Revenue from Main Operations | 1,039.4 | | Net Profit | 28.6 | | Net Profit Attributable to Equity Holders of the Company | 23.9 | 2025 H1 Operational Data | Indicator | Value | | :--- | :--- | | Total Contracted GFA | 281 million square meters | | Number of Communities Served | 1,651 | | Number of Cities Covered | 118 | | Number of Property Owners Served | Over 7 million | [Core Strategies and Technology Empowerment](index=6&type=section&id=3.3%20Core%20Strategies%20and%20Technology%20Empowerment) The company continues to deepen its four core strategies: service quality improvement, digital ecosystem construction, green and low-carbon development, and community economy innovation, significantly enhancing operational efficiency and reducing costs through its self-developed property digitalization management platform and "Color Cloud Butler" smart customer service system, while integrating AI large model technology for intelligent breakthroughs in security patrols and quality control - Continuously deepening four core strategies: service quality improvement, digital ecosystem construction, green and low-carbon development, and community economy innovation[19](index=19&type=chunk) - Launched "Color Cloud Butler" smart customer service system, improving work efficiency by **75%**, reducing operating costs by **50%**, and releasing labor resources by **45%**[23](index=23&type=chunk) - Built a "headquarters large AI model + project small AI model" platform system leveraging AI large model capabilities, with AI image recognition technology processing over **8 million images**[23](index=23&type=chunk) - Newly launched "Employee AI Assistant" to enhance employee work efficiency through natural language processing technology[23](index=23&type=chunk) [Customer Service and Community Activities](index=8&type=section&id=3.4%20Customer%20Service%20and%20Community%20Activities) The company initiated the "Daily 315" quality supervision program, handling over 86,000 property owner requests in the first half of the year with an 85% satisfaction rate, and invested RMB 26.85 million in quality improvement renovations for 354 projects, while actively engaging in community activities and expanding value-added services such as "Fantasia Insurance," "Color Optimal Choice" online shopping, smart drinking water solutions, home-based elderly care, and comprehensive home services to foster a warm community atmosphere and participate in public welfare - Initiated "Daily 315" quality supervision work, handling over **86,000 property owner requests** in the first half of the year, receiving **1,670 commendations**, with a satisfaction rate of **85%**[24](index=24&type=chunk) - Invested **RMB 26.85 million** in the first half of the year to renovate and improve quality for **354 projects** across dozens of cities[24](index=24&type=chunk) - Its "Fantasia Insurance" internet insurance service platform saw a **60% year-on-year growth in scale** and a **17-fold year-on-year growth in profit** in the first half of the year[25](index=25&type=chunk) - Launched "Color Optimal Choice" community online shopping platform, focusing on fresh produce, grains, oils, daily chemicals, and agricultural support, and introduced convenient water stations and ice cream wholesale as special services[27](index=27&type=chunk) - **100 smart on-site water vending machines** have been deployed, covering **93 communities**, attracting over **4,900 members**, with plans to add **400 more units** within the year, expecting to achieve **RMB 30 million in revenue**[27](index=27&type=chunk) - Elderly care business strategically partnered with Everbright Elderly Care Health Industry Development Co., Ltd. to build a "institutional, community, home" integrated elderly care service system, which has achieved cash flow balance[28](index=28&type=chunk) - Expanded comprehensive home services, collaborating with platforms like JD Daojia and Fengchao Daojia, covering diverse areas such as housekeeping, maintenance, and logistics[29](index=29&type=chunk) - Organized community IP events like "Color Christmas Festival" and "Colorful Neighbor Festival," covering over **1.1 million property owners**, and held Gaokao assistance activities[31](index=31&type=chunk) - Conducted "Caring for Children with Special Needs" charity event, raising **RMB 110,000** in donations in the first half of the year[33](index=33&type=chunk) [Market Strategy and Organizational Transformation](index=11&type=section&id=3.5%20Market%20Strategy%20and%20Organizational%20Transformation) Facing industry challenges, the company deepened its "regional deep cultivation" strategy and optimized its "two-and-a-half-tier" management structure, enhancing regional market share and customer satisfaction through resource decentralization, talent activation, benchmark leadership, technology empowerment, and qualification building - Adhered to the "regional deep cultivation" strategy, optimizing the "two-and-a-half-tier" management structure (Group Headquarters - Regional Business Unit - Project Frontline)[36](index=36&type=chunk) - Decision-making efficiency improved by **40%**, labor costs reduced by **15%**, and talent utilization rate increased by **30%**[36](index=36&type=chunk) - Added **62 intellectual property patents and software copyrights**, with smart property management system coverage reaching **85%** and AI security system recognition accuracy improving to **98%**[36](index=36&type=chunk) - Acquired **23 new core qualifications** including 3A credit certification, with revenue share from differentiated service products increasing to **35%**[36](index=36&type=chunk) - In the first half of 2025, regional market share increased by **12%**, and customer satisfaction reached a new historical high of **91 points**[38](index=38&type=chunk) [Future Outlook](index=12&type=section&id=3.6%20Future%20Outlook) The company will continue to anchor its strategic direction, driven by innovation and centered on value creation, focusing on quality upgrades, service optimization, and value creation, striving to become a warm, caring, and innovation-leading benchmark for living services, creating beautiful living experiences for millions of families, and contributing to the high-quality development of the industry - Continue to anchor strategic direction, continuously enhance development momentum, and embrace innovation[39](index=39&type=chunk) - Steadfastly advance a quality-led development model, accurately grasp market trends, and strive to be an industry benchmark[39](index=39&type=chunk) - Reshape the core value of property services, focusing on quality upgrades, service optimization, and value creation[40](index=40&type=chunk) - Aspire to become a warm, caring, and innovation-leading benchmark for living services, creating comfortable and beautiful lives for millions of families[40](index=40&type=chunk) Management Discussion and Analysis [Business Model](index=13&type=section&id=4.1%20Business%20Model) As a leading property management and community service operator in China, the company focuses on basic property management services, leveraging internet technology to build online and offline platforms, providing "four-guarantee" services, enhancing service quality and efficiency through smart community construction, and expanding value-added businesses by fostering property owner engagement through community activities and the "Color Life" online platform - Core business involves basic "four-guarantee" services (cleaning, landscaping, security, maintenance) to ensure property owners' basic living needs[41](index=41&type=chunk) - Deeply promotes smart community construction, applying IoT, big data, AI, and other technologies to enhance service quality and efficiency[42](index=42&type=chunk) - Established a robust digital "cloud" system and "Property Digital Management Platform," equipped with AI large models to improve service efficiency[42](index=42&type=chunk) - Created the "Color Life" community online platform, enabling online payment of property management fees, notifications, and complaints, and assigning customer managers[43](index=43&type=chunk) [Property Management Services](index=17&type=section&id=4.1.1%20Property%20Management%20Services) Property management services are primarily offered under two models: lump-sum basis and commission basis; under the lump-sum basis, the company collects all management fees and bears related expenses, while under the commission basis, the company acts as an agent for property owners, retaining an agreed percentage (typically 10%) of management fees as revenue, with the remainder used for operating expenses - Property management services are categorized into lump-sum basis and commission basis[57](index=57&type=chunk)[58](index=58&type=chunk) - Lump-sum basis: The company collects all management fees and pays related expenses, with associated costs recognized as cost of sales[59](index=59&type=chunk) - Commission basis: The company retains an agreed percentage (typically **10%**) of management fees as revenue, with the remainder used for operating expenses[60](index=60&type=chunk) [Value-Added Services](index=18&type=section&id=4.1.2%20Value-Added%20Services) Value-added services, guided by the philosophy of "bringing community services home," utilize an online and offline service system in collaboration with third parties to provide online promotion, sales and leasing assistance, engineering services, and other value-added offerings such as shopping assistance, energy management, charging piles, community direct drinking water, and insurance brokerage - Value-added services include online promotion services, sales and leasing assistance, engineering services, and other value-added services[62](index=62&type=chunk) - Online promotion services: Promoting products or services through the "Color Life" platform, collecting remuneration and information system software usage fees[64](index=64&type=chunk) - Sales and leasing assistance: Referring property agents, selling parking spaces on behalf, and leasing physical advertising spaces[65](index=65&type=chunk) - Engineering services: Provided through outsourcing and subsidiaries, including smart community renovation (hardware upgrades, cloud system connectivity, AI large model applications)[66](index=66&type=chunk)[67](index=67&type=chunk) - Other value-added services: Including shopping assistance, energy management services, charging pile business, community direct drinking water business, and insurance brokerage[68](index=68&type=chunk) [Business Development](index=14&type=section&id=4.2%20Business%20Development) Through organic new appointments, the company's total contracted GFA reached 281.15 million square meters, serving 1,651 communities as of June 30, 2025, with 146.18 million square meters generating revenue; during the reporting period, both total contracted GFA and the number of communities decreased, primarily due to contract terminations - As of June 30, 2025, total contracted GFA was **281.15 million square meters**, serving **1,651 communities**[46](index=46&type=chunk)[54](index=54&type=chunk) - As of June 30, 2025, the total contracted GFA generating revenue was **146.18 million square meters**[46](index=46&type=chunk) Contracted GFA and Number of Communities Movement (2025 H1 vs 2024 Full Year) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total GFA at beginning of year (thousand sq.m.) | 306,817 | 356,025 | | Number of communities at beginning of year | 1,759 | 1,987 | | New appointments - Total GFA (thousand sq.m.) | 2,301 | 8,905 | | New appointments - Number of communities | 27 | 88 | | Terminated - Total GFA (thousand sq.m.) | (27,971) | (58,608) | | Terminated - Number of communities | (135) | (318) | | Total GFA at end of period (thousand sq.m.) | 281,147 | 306,817 | | Number of communities at end of period | 1,651 | 1,759 | [Contracted GFA and Number of Communities](index=14&type=section&id=4.2.1%20Contracted%20GFA%20and%20Number%20of%20Communities) The company acquires property management contracts through bidding, with the agreed-upon area recorded as "Total Contracted GFA," and the area that has been sold and generates management fees as "Total GFA Generating Revenue"; as of June 30, 2025, the total contracted GFA was 281.15 million square meters and the number of communities was 1,651, a decrease from the end of 2024 primarily due to contract terminations - Total contracted GFA includes GFA generating revenue, reserve GFA, and GFA under consultancy services[45](index=45&type=chunk) Total Managed GFA and Number of Communities by Region (June 30, 2025 vs December 31, 2024) | Region | June 30, 2025 Total GFA (thousand sq.m.) | June 30, 2025 Number of Communities | December 31, 2024 Total GFA (thousand sq.m.) | December 31, 2024 Number of Communities | | :--- | :--- | :--- | :--- | :--- | | Shenzhen | 5,338 | 80 | 5,063 | 76 | | South China (excluding Shenzhen) | 48,281 | 345 | 53,211 | 371 | | East China | 93,299 | 551 | 95,847 | 584 | | Southwest | 42,696 | 223 | 49,498 | 237 | | Northeast | 6,058 | 42 | 7,147 | 46 | | Northwest | 10,883 | 54 | 11,763 | 57 | | North China | 13,125 | 70 | 15,883 | 78 | | Central China | 61,467 | 286 | 68,405 | 310 | | **Total** | **281,147** | **1,651** | **306,817** | **1,759** | [Property Management Fee Range](index=17&type=section&id=4.2.2%20Property%20Management%20Fee%20Range) Property management fee levels vary by property type, location, and management model (commission basis/lump-sum basis) across different regions, with the report listing the fee ranges for each region under both models as of June 30, 2025, and December 31, 2024 Property Management Fee Range by Region (RMB/sq.m./month) (June 30, 2025 vs December 31, 2024) | Region | June 30, 2025 Commission Basis | June 30, 2025 Lump-Sum Basis | December 31, 2024 Commission Basis | December 31, 2024 Lump-Sum Basis | | :--- | :--- | :--- | :--- | :--- | | Shenzhen | 0.4-11.4 | 1.8-16.9 | 0.4-11.4 | 1.8-16.9 | | South China (excluding Shenzhen) | 0.5-6.0 | 0.7-16.9 | 0.5-6.0 | 0.7-16.9 | | East China | 0.4-17.0 | 1.1-16.0 | 0.4-17.0 | 1.1-16.0 | | Southwest | 0.5-6.1 | 0.3-25.0 | 0.5-6.1 | 0.3-25.0 | | Northeast | 0.4-3.3 | 2.0-18.0 | 0.4-3.3 | 2.0-18.0 | | Northwest | 0.5-4.0 | 1.4-22.7 | 0.5-4.0 | 1.4-22.7 | | North China | 0.7-5.5 | 1.2-25.0 | 0.7-5.5 | 1.2-25.0 | | Central China | 0.6-5.3 | 0.9-16.9 | 0.6-5.3 | 0.9-16.9 | [Review and Analysis](index=20&type=section&id=4.3%20Review%20and%20Analysis) This section provides a detailed analysis of the company's financial performance for the first half of 2025, with total revenue increasing by 6.7% to RMB 1,039.4 million, driven by a 6.9% growth in property management services and a 1.7% growth in value-added services; gross profit margin slightly decreased due to a higher proportion of lump-sum basis services, while trade receivables significantly increased and trade payables decreased, and the company strengthened its capital reserves through a rights issue with no significant investments or liabilities [Revenue Analysis](index=20&type=section&id=4.3.1%20Revenue%20Analysis) Total revenue for the first half of 2025 increased by 6.7% year-on-year to RMB 1,039.4 million, with property management service revenue growing by 6.9% to RMB 994.0 million (lump-sum basis revenue up 8.2%, commission basis revenue down 54.0%), and value-added service revenue increasing by 1.7% to RMB 45.4 million, primarily driven by a significant 142.0% growth in other value-added services (e.g., insurance brokerage, water dispensers, charging pile business), offsetting declines in online promotion, sales and leasing assistance, and engineering services 2025 H1 Total Revenue Composition and Year-on-Year Change | Revenue Source | 2025 (RMB '000) | % of Total | 2024 (RMB '000) | % of Total | Change (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 994,040 | 95.6% | 929,842 | 95.4% | 64,198 | 6.9% | | Value-Added Services | 45,406 | 4.4% | 44,646 | 4.6% | 760 | 1.7% | | **Total Revenue** | **1,039,446** | **100%** | **974,488** | **100.0%** | **64,958** | **6.7%** | 2025 H1 Property Management Service Revenue Composition and Year-on-Year Change | Property Management Service Type | 2025 (RMB '000) | % of Total | 2024 (RMB '000) | % of Total | Change (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Lump-Sum Basis | 985,018 | 94.8% | 910,208 | 93.4% | 74,810 | 8.2% | | Commission Basis | 9,022 | 0.8% | 19,634 | 2.0% | (10,612) | (54.0%) | | **Total** | **994,040** | **95.6%** | **929,842** | **95.4%** | **64,198** | **6.9%** | 2025 H1 Value-Added Service Revenue Composition and Year-on-Year Change | Value-Added Service Type | 2025 (RMB '000) | % of Total | 2024 (RMB '000) | % of Total | Change (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Online Promotion Services | 4,047 | 0.4% | 8,429 | 0.9% | (4,382) | (52.0%) | | Sales and Leasing Assistance | 20,395 | 2.0% | 24,647 | 2.5% | (4,252) | (17.3%) | | Engineering Services | 1,947 | 0.2% | 3,713 | 0.4% | (1,766) | (47.6%) | | Other Value-Added Services | 19,017 | 1.8% | 7,857 | 0.8% | 11,160 | 142.0% | | **Total** | **45,406** | **4.4%** | **44,646** | **4.6%** | **760** | **1.7%** | [Cost of Services and Gross Profit](index=22&type=section&id=4.3.2%20Cost%20of%20Services%20and%20Gross%20Profit) In the first half of 2025, cost of services increased by 8.2% year-on-year to RMB 815.8 million, primarily due to an increase in lump-sum basis managed communities; overall gross profit increased by 1.5% to RMB 223.6 million, but the overall gross profit margin decreased by 1.1 percentage points to 21.5%, mainly due to the increased proportion of lower-margin lump-sum basis services - Cost of services increased by **8.2%** year-on-year to **RMB 815.8 million**, primarily due to an increase in lump-sum basis managed communities[77](index=77&type=chunk) - Overall gross profit increased by **1.5%** to **RMB 223.6 million**[78](index=78&type=chunk) - Overall gross profit margin decreased by **1.1 percentage points** to **21.5%** (2024 H1: 22.6%)[79](index=79&type=chunk) - Property management service gross profit margin decreased from **19.8% to 18.9%**, and value-added service gross profit margin decreased from **81.5% to 78.3%**[80](index=80&type=chunk)[81](index=81&type=chunk) [Other Income and Expenses](index=22&type=section&id=4.3.3%20Other%20Income%20and%20Expenses) In the first half of 2025, other losses increased to RMB 5.0 million, and other income decreased to RMB 9.8 million; selling and distribution expenses slightly increased, administrative expenses decreased by 1.1% to RMB 111.8 million, and finance costs decreased, while income tax expense increased to RMB 15.7 million 2025 H1 Other Income and Expenses Movement | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Other losses | (5,045) | (2,511) | (2,534) | | Other income | 9,771 | 10,992 | (1,221) | | Selling and distribution expenses | (2,214) | (1,976) | (238) | | Administrative expenses | (111,772) | (113,105) | 1,333 | | Finance costs | (1,070) | (1,237) | 167 | | Income tax expense | (15,702) | (13,314) | (2,388) | [Balance Sheet Items](index=23&type=section&id=4.3.4%20Balance%20Sheet%20Items) As of June 30, 2025, goodwill remained unchanged at RMB 880.3 million, bank balances and cash decreased to RMB 778.5 million, trade receivables increased by 23.3% to RMB 923.0 million primarily due to an increase in lump-sum basis communities and seasonal factors, and trade payables decreased by 21.9% to RMB 390.2 million mainly due to shorter payment cycles - Goodwill carrying amount remained at **RMB 880.3 million**[87](index=87&type=chunk) - Bank balances and cash decreased to **RMB 778.5 million** (December 31, 2024: RMB 994.1 million)[88](index=88&type=chunk) - Trade receivables increased by **23.3%** to **RMB 923.0 million** (December 31, 2024: RMB 748.5 million), mainly due to an increase in lump-sum basis communities and seasonal factors[89](index=89&type=chunk) - Trade payables decreased by **21.9%** to **RMB 390.2 million** (December 31, 2024: RMB 500.0 million), primarily due to shorter payment cycles[94](index=94&type=chunk) [Share Capital and Cash Position](index=24&type=section&id=4.3.5%20Share%20Capital%20and%20Cash%20Position) As of June 30, 2025, the total number of issued shares increased to 1,859,407,192 shares, and share capital increased to RMB 155.1 million, primarily due to a rights issue of 371,881,438 new shares, raising net proceeds of approximately HK$60.36 million for general working capital, AI technology applications, and community value-added service development; the current ratio improved to 3.4 times, and interest-bearing debts were repaid, resulting in no net debt to equity ratio - Total number of issued shares increased to **1,859,407,192** (December 31, 2024: 1,487,525,754 shares), and share capital increased to **RMB 155.1 million**[93](index=93&type=chunk) - Net proceeds of approximately **HK$60.36 million** were raised through a rights issue of **371,881,438 new shares**[95](index=95&type=chunk) Net Proceeds from Rights Issue Utilization (as of June 30, 2025) | Purpose | % of Total Amount | Net Proceeds from Rights Issue (HK$ million) | Utilized during the period (HK$ million) | Unutilized Amount (HK$ million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | General working capital | 40% | 24.144 | 24.144 | – | Not applicable | | AI technology applications | 20% | 12.072 | 9.779 | 2.293 | End of 2025 | | Community value-added service development | 20% | 12.072 | 4.775 | 7.297 | End of 2025 | | Working capital reserve | 20% | 12.072 | 12.072 | – | Not applicable | | **Total** | **100.0%** | **60.36** | **50.77** | **9.59** | | - Current ratio improved to **3.4 times** (December 31, 2024: 3.1 times)[98](index=98&type=chunk) - Interest-bearing debts were repaid, resulting in **no net debt to equity ratio** as of June 30, 2025[99](index=99&type=chunk) [Other Financial Information](index=26&type=section&id=4.3.6%20Other%20Financial%20Information) The company primarily operates in China and faces no significant direct foreign exchange fluctuation risks; as of June 30, 2025, the number of employees was 9,463, a decrease from the end of 2024, and there were no significant investments, asset pledges, contingent liabilities, major acquisitions or disposals of subsidiaries, associates, and joint ventures during the reporting period, and the board does not recommend an interim dividend - No significant direct foreign exchange fluctuation risks[101](index=101&type=chunk) - As of June 30, 2025, the number of employees was **9,463** (December 31, 2024: 10,191)[102](index=102&type=chunk) - No significant investments, asset pledges, contingent liabilities, or major acquisitions and disposals occurred during the reporting period[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[108](index=108&type=chunk) Corporate Governance and Other Information [Corporate Governance Practices](index=27&type=section&id=5.1%20Corporate%20Governance%20Practices) The company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code set out in Appendix C1 of the Listing Rules; during the reporting period, due to the resignation of independent non-executive director Mr. Zhang Yue, the company temporarily failed to comply with Listing Rules requirements regarding the number of independent non-executive directors and committee composition, but has since rectified this with the appointment of Mr. Li Xinhu on August 15, 2025 - The company complies with the Corporate Governance Code in Appendix C1 of the Listing Rules[109](index=109&type=chunk) - Due to Mr. Zhang Yue's resignation, the company temporarily failed to comply with Listing Rules 3.10(1), 3.10A, 3.21, 3.25, 3.27A, and the terms of reference for the Nomination Committee[109](index=109&type=chunk) - The company has re-complied with the above requirements following the appointment of Mr. Li Xinhu as an independent non-executive director on August 15, 2025[109](index=109&type=chunk) [Securities Transactions and Share Options](index=27&type=section&id=5.2%20Securities%20Transactions%20and%20Share%20Options) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor did they hold any treasury shares, and directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers; the share option scheme expired on June 10, 2024, precluding further grants, and as of June 30, 2025, 26,377,199 share options remained unexercised, with some having lapsed on April 29, 2025 - As of June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended[111](index=111&type=chunk) - Directors have confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[113](index=113&type=chunk) - The share option scheme expired on June 10, 2024, and no further grants can be made[116](index=116&type=chunk) Share Option Scheme Movement (as of June 30, 2025) | Category of Grantees | Outstanding at Jan 1, 2025 (thousand options) | Shares issued during the period (thousand options) | Lapsed during the period (thousand options) | Cancelled during the period (thousand options) | Outstanding at June 30, 2025 (thousand options) | | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | 2,557 | 6 | – | (168) | 2,395 | | Employees and non-controlling shareholders of certain subsidiaries | 32,403 | 78 | – | (8,500) | 23,981 | | **Total** | **34,960** | **84** | **–** | **(8,668)** | **26,376** | - Share options granted on April 30, 2015, lapsed after their exercise period expired on April 29, 2025[117](index=117&type=chunk) [Directors' and Major Shareholders' Interests](index=29&type=section&id=5.3%20Directors'%20and%20Major%20Shareholders'%20Interests) As of June 30, 2025, Executive Director Mr. Liu Hongcai held 122,292 relevant shares (share options), representing 0.00% of the issued share capital; Major Shareholder Ms. Zeng Baobao, through controlled corporations Ice Apex, Fantasy Pearl International Limited, and Yao Wei Fu Enterprise Limited, collectively held 1,301,467,396 shares, representing 69.99% of the issued share capital Directors' Interests in the Company's Securities (as of June 30, 2025) | Director's Name | Capacity/Nature of Interest | Number of Relevant Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Liu Hongcai | Beneficial owner | 122,292 (share options) | 0.00% | Major Shareholders' Interests in the Company's Securities (as of June 30, 2025) | Major Shareholder Name/Entity | Capacity | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Ms. Zeng Baobao | Interest in controlled corporations | 1,301,467,396 (L) | 69.99% | | Ice Apex | Interest in controlled corporations | 1,301,467,396 (L) | 69.99% | | Fantasy Pearl International Limited | Interest in controlled corporations/Beneficial owner | 782,407,472 (L) | 42.07% | | Fantasia Holdings Group Co., Ltd. | Beneficial owner | 780,104,676 (L) | 41.95% | | Shuang Xin Limited | Interest in controlled corporations | 519,059,924 (L) | 27.92% | | Yue Mei Holdings Limited | Interest in controlled corporations | 519,059,924 (L) | 27.92% | | Yao Wei Fu Enterprise Limited | Beneficial owner | 519,059,924 (L) | 27.92% | Review Report on Condensed Consolidated Financial Statements [Review Report on Condensed Consolidated Financial Statements](index=31&type=section&id=Review%20Report%20on%20Condensed%20Consolidated%20Financial%20Statements) BDO Limited reviewed the condensed consolidated financial statements for the six months ended June 30, 2025; the scope of the review is less than an audit, but no material matters were identified that would lead to a belief that the financial statements were not prepared in accordance with Hong Kong Accounting Standard 34 - BDO Limited conducted a review of the condensed consolidated financial statements[129](index=129&type=chunk) - The review concluded that no matters were identified that would lead to a belief that the condensed consolidated financial statements were not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[128](index=128&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=32&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company achieved revenue from services of RMB 1,039,446 thousand, with a profit for the period of RMB 28,578 thousand, and profit for the period attributable to owners of the company of RMB 23,892 thousand; basic and diluted earnings per share were both RMB 1.42 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue from Services | 1,039,446 | 974,488 | | Cost of Services | (815,821) | (754,141) | | Gross Profit | 223,625 | 220,347 | | Profit Before Tax | 44,280 | 46,417 | | Income Tax Expense | (15,702) | (13,314) | | **Profit for the Period** | **28,578** | **33,103** | | Profit for the Period Attributable to Owners of the Company | 23,892 | 24,380 | | Profit for the Period Attributable to Non-Controlling Interests | 4,686 | 8,723 | | **Total Comprehensive Income for the Period** | **28,967** | **33,554** | | Earnings Per Share - Basic (RMB cents) | 1.42 | 1.63 | | Earnings Per Share - Diluted (RMB cents) | 1.42 | 1.63 | Condensed Consolidated Statement of Financial Position [Condensed Consolidated Statement of Financial Position](index=34&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets less current liabilities were RMB 4,566,848 thousand, and net assets were RMB 4,552,448 thousand; total non-current assets amounted to RMB 1,549,871 thousand, total current assets were RMB 4,254,996 thousand, and total current liabilities were RMB 1,238,019 thousand Condensed Consolidated Statement of Financial Position Summary (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property, Plant and Equipment | 68,278 | 60,112 | | Right-of-Use Assets | 185,589 | 196,197 | | Investment Properties | 17,128 | 17,748 | | Goodwill | 880,344 | 880,344 | | **Total Non-Current Assets** | **1,549,871** | **1,554,413** | | **Current Assets** | | | | Trade Receivables | 922,973 | 748,522 | | Other Receivables and Prepayments | 1,618,979 | 1,530,322 | | Bank Balances and Cash | 778,536 | 994,119 | | **Total Current Assets** | **4,254,996** | **4,362,381** | | **Current Liabilities** | | | | Trade Payables | 390,166 | 500,012 | | Other Payables and Accruals | 164,161 | 217,164 | | **Total Current Liabilities** | **1,238,019** | **1,415,259** | | **Net Assets** | **4,552,448** | **4,481,311** | | Equity Attributable to Owners of the Company | 4,365,971 | 4,286,798 | | Non-Controlling Interests | 186,477 | 194,513 | | **Total Equity** | **4,552,448** | **4,481,311** | Condensed Consolidated Statement of Changes in Equity [Condensed Consolidated Statement of Changes in Equity](index=36&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the company was RMB 4,365,971 thousand, an increase from RMB 4,286,798 thousand at the beginning of the year, primarily due to profit for the period and increased share capital and share premium from the rights issue Condensed Consolidated Statement of Changes in Equity Summary (for the six months ended June 30, 2025) | Item | June 30, 2025 (RMB '000) | January 1, 2025 (RMB '000) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 4,365,971 | 4,286,798 | | Non-Controlling Interests | 186,477 | 194,513 | | **Total Equity** | **4,552,448** | **4,481,311** | | Profit for the Period (Attributable to Owners of the Company) | 23,892 | 24,380 (2024 H1) | | Rights Issue (Share Capital and Share Premium) | 55,785 | – | Condensed Consolidated Statement of Cash Flows [Condensed Consolidated Statement of Cash Flows](index=37&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was RMB (234,603) thousand, net cash used in investing activities was RMB (24,817) thousand, and net cash from financing activities was RMB 43,837 thousand; cash and cash equivalents at the end of the period amounted to RMB 778,536 thousand Condensed Consolidated Statement of Cash Flows Summary (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (234,603) | (171,895) | | Net Cash Used in Investing Activities | (24,817) | (36,753) | | Net Cash From/(Used in) Financing Activities | 43,837 | (10,555) | | Net Decrease in Cash and Cash Equivalents | (215,583) | (219,203) | | Cash and Cash Equivalents at Beginning of Period | 994,119 | 947,904 | | **Cash and Cash Equivalents at End of Period** | **778,536** | **728,701** | Notes to the Condensed Consolidated Financial Statements [Basis of Preparation and Accounting Policies](index=38&type=section&id=11.1%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, adopting the historical cost basis, and the first-time application of HKAS 21 (Amendment) "Lack of Exchangeability" had no significant impact on financial position or performance - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[145](index=145&type=chunk) - The condensed consolidated financial statements are prepared on the historical cost basis, except for investment properties and certain financial instruments which are measured at fair value where applicable[146](index=146&type=chunk) - During the interim period, the Group first applied Hong Kong Accounting Standard 21 (Amendment) "Lack of Exchangeability," but it did not have a significant impact on the Group's financial position and performance in the current and prior periods and/or the disclosures contained in these condensed consolidated financial statements[147](index=147&type=chunk) [Revenue and Segment Information](index=39&type=section&id=11.2%20Revenue%20and%20Segment%20Information) Revenue primarily derives from property management services and value-added services, disaggregated by type of goods and services and timing of revenue recognition; management reviews the business as a single operating segment, with major operating entities and revenue originating from China, and no single customer accounts for 10% or more of total revenue 2025 H1 Disaggregation of Revenue from Contracts with Customers (RMB '000) | Type of Goods and Services | Property Management Services | Value-Added Services | Total | | :--- | :--- | :--- | :--- | | Lump-Sum Basis | 985,018 | – | 985,018 | | Commission Basis | 9,022 | – | 9,022 | | Online Promotion Services | – | 4,047 | 4,047 | | Sales and Leasing Assistance | – | 20,395 | 20,395 | | Engineering Services | – | 1,947 | 1,947 | | Other Value-Added Services | – | 19,017 | 19,017 | | **Total** | **994,040** | **45,406** | **1,039,446** | | Timing of Revenue Recognition: At a point in time | – | 2,958 | 2,958 | | Timing of Revenue Recognition: Over time | 994,040 | 42,448 | 1,036,488 | - Management reviews the business as a single operating segment, with major operating entities and revenue originating from China[154](index=154&type=chunk)[156](index=156&type=chunk) - For the periods ended June 30, 2025, and 2024, revenue from sales to a single customer did not account for **10% or more** of the Group's revenue[155](index=155&type=chunk) [Income Tax Expense](index=41&type=section&id=11.3%20Income%20Tax%20Expense) Income tax expense for the first half of 2025 was RMB 15,702 thousand, an increase from RMB 13,314 thousand in the same period of 2024, primarily comprising PRC enterprise income tax and deferred tax Income Tax Expense (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax - PRC enterprise income tax | (19,946) | (14,372) | | Deferred tax - credited to profit or loss | 4,244 | 1,058 | | **Total** | **(15,702)** | **(13,314)** | [Profit for the Period and Dividends](index=42&type=section&id=11.4%20Profit%20for%20the%20Period%20and%20Dividends) Profit for the period in the first half of 2025 was RMB 28,578 thousand, primarily after deducting staff costs, depreciation, and impairment losses; the board does not recommend an interim dividend Profit for the Period Key Deductions/Additions (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Staff Costs | 318,091 | 314,889 | | Depreciation of Property, Plant and Equipment | 13,930 | 11,342 | | Depreciation of Right-of-Use Assets | 10,608 | 9,980 | | Net Exchange Loss/(Gain) | 845 | (85) | - The directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[163](index=163&type=chunk) [Earnings Per Share](index=43&type=section&id=11.5%20Earnings%20Per%20Share) For the first half of 2025, basic and diluted earnings per share were both RMB 1.42 cents, calculated using a weighted average of 1,686,821 thousand ordinary shares Earnings Per Share Calculation Data (for the six months ended June 30, 2025) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share (RMB '000) | 23,892 | 24,380 | | Weighted average number of ordinary shares for the purpose of calculating basic and diluted earnings per share (thousand shares) | 1,686,821 | 1,492,857 | - For the periods ended June 30, 2025, and 2024, no assumption was made regarding the exercise of certain share options granted by the company for calculating diluted earnings per share, as the exercise price of the relevant share options was higher than the average market price per share[165](index=165&type=chunk) [Asset Movements](index=43&type=section&id=11.6%20Asset%20Movements) In the first half of 2025, the carrying amount of property, plant and equipment increased to RMB 68,278 thousand, right-of-use assets decreased to RMB 185,589 thousand, and investment properties' fair value decreased to RMB 17,128 thousand; goodwill remained unchanged at RMB 880,344 thousand and was allocated to cash-generating unit groups for impairment testing, with management concluding no impairment indicators Property, Plant and Equipment Movement (as of June 30, 2025) | Item | RMB '000 | | :--- | :--- | | January 1, 2025 | 60,112 | | Additions | 22,117 | | Depreciation for the period | (13,930) | | Disposals | (21) | | **June 30, 2025** | **68,278** | Right-of-Use Assets Movement (as of June 30, 2025) | Item | RMB '000 | | :--- | :--- | | January 1, 2025 | 196,197 | | Depreciation for the period | (10,608) | | **June 30, 2025** | **185,589** | Investment Properties Movement (as of June 30, 2025) | Item | RMB '000 | | :--- | :--- | | January 1, 2025 | 17,748 | | Net fair value change recognized in profit or loss | (620) | | **June 30, 2025** | **17,128** | - Goodwill carrying amount remained at **RMB 880,344 thousand**, with no impairment identified[172](index=172&type=chunk)[174](index=174&type=chunk) - Goodwill impairment testing used the value-in-use method, with a discount rate of **14.6%** and a five-year growth rate of **2%-8%**[175](index=175&type=chunk)[176](index=176&type=chunk) [Trade and Other Receivables and Prepayments](index=46&type=section&id=11.7%20Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, trade receivables (net of allowance for credit losses) amounted to RMB 922,973 thousand, a 23.3% increase from the end of 2024; other receivables and prepayments (net of allowance for credit losses) were RMB 1,624,179 thousand, a 5.8% increase from the end of 2024 Trade and Other Receivables and Prepayments (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables (net of allowance) | 922,973 | 748,522 | | Other Receivables and Prepayments (net of allowance) | 1,624,179 | 1,535,804 | | **Total** | **2,547,152** | **2,284,326** | Trade Receivables Ageing Analysis (as of June 30, 2025) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 182,374 | 149,984 | | 31 to 90 days | 166,064 | 118,570 | | 91 to 180 days | 186,502 | 146,846 | | 181 to 365 days | 222,029 | 176,282 | | Over 1 year | 166,004 | 156,840 | | **Total** | **922,973** | **748,522** | [Loans Receivable](index=48&type=section&id=11.8%20Loans%20Receivable) As of June 30, 2025, loans receivable (net of allowance for credit losses) amounted to RMB 78,502 thousand, a decrease from RMB 103,785 thousand at the end of 2024 Loans Receivable (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Fixed-rate loans | 194,737 | 194,737 | | Less: Allowance for credit losses | (116,235) | (90,952) | | **Total** | **78,502** | **103,785** | [Amounts Paid/Received on Behalf of Property Owners](index=48&type=section&id=11.9%20Amounts%20Paid%2FReceived%20on%20Behalf%20of%20Property%20Owners) As of June 30, 2025, amounts paid on behalf of property owners (net of allowance for credit losses) were RMB 702,356 thousand, and amounts received on behalf of property owners were RMB 32,986 thousand Amounts Paid/Received on Behalf of Property Owners (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Amounts Paid on Behalf of Property Owners (net of allowance) | 702,356 | 820,684 | | Amounts Received on Behalf of Property Owners | 32,986 | 47,722 | [Pledged/Restricted Bank Deposits](index=49&type=section&id=11.10%20Pledged%2FRestricted%20Bank%20Deposits) As of June 30, 2025, restricted bank balances amounted to RMB 63,858 thousand, primarily consisting of balances frozen by court notices for unresolved legal proceedings - As of June 30, 2025, restricted bank balances amounted to **RMB 63,858 thousand**, primarily consisting of balances frozen by court notices for unresolved legal proceedings[186](index=186&type=chunk) [Impairment Losses under Expected Credit Loss Model](index=49&type=section&id=11.11%20Impairment%20Losses%20under%20Expected%20Credit%20Loss%20Model) In the first half of 2025, total impairment losses recognized under the expected credit loss model amounted to RMB 65,793 thousand, a significant increase from RMB 33,214 thousand in the same period of 2024, primarily related to trade and other receivables, amounts due from related parties, and loans receivable Impairment Losses (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Trade and Other Receivables | (18,435) | (13,675) | | Contract Assets | (4,397) | (4) | | Amounts Paid on Behalf of Property Owners | (6,563) | (3,171) | | Amounts Due from Related Parties | (11,115) | (1,289) | | Loans Receivable | (25,283) | (15,075) | | **Total** | **(65,793)** | **(33,214)** | [Trade and Other Payables and Accruals](index=50&type=section&id=11.12%20Trade%20and%20Other%20Payables%20and%20Accruals) As of June 30, 2025, trade payables were RMB 390,166 thousand, and other payables and accruals were RMB 164,161 thousand, totaling RMB 554,327 thousand; trade payables decreased from the end of 2024, mainly due to shorter payment cycles Trade and Other Payables and Accruals (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Payables | 390,166 | 500,012 | | Other Payables and Accruals | 164,161 | 217,164 | | **Total** | **554,327** | **717,176** | Trade Payables Ageing Analysis (as of June 30, 2025) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 60 days | 166,346 | 240,934 | | 61 to 180 days | 151,469 | 165,423 | | 181 to 365 days | 60,745 | 81,005 | | Over 1 year | 11,606 | 12,650 | | **Total** | **390,166** | **500,012** | [Share Capital](index=51&type=section&id=11.13%20Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital comprised 1,859,407 thousand shares, amounting to RMB 155,070 thousand, primarily due to the rights issue of 371,881,438 new shares Share Capital Movement (as of June 30, 2025) | Item | Number of Shares (thousand shares) | Amount (HK$'000) | Amount (RMB '000) | | :--- | :--- | :--- | :--- | | Issued and fully paid at January 1, 2025 | 1,487,526 | 148,753 | 120,750 | | Rights Issue | 371,881 | 37,188 | 55,785 | | **Issued and fully paid at June 30, 2025** | **1,859,407** | **185,941** | **155,070** | [Share Option Scheme](index=52&type=section&id=11.14%20Share%20Option%20Scheme) The share option scheme expired on June 10, 2024, with no new options granted during this interim period; as of June 30, 2025, a total of 26,376 thousand share options held by directors and employees remained unexercised, some of which lapsed on April 29, 2025 Share Option Scheme Movement (for the six months ended June 30, 2025) | Category of Grantees | Outstanding at Jan 1, 2025 (thousand options) | Shares issued during the period (thousand options) | Lapsed during the period (thousand options) | Cancelled during the period (thousand options) | Outstanding at June 30, 2025 (thousand options) | | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | 2,557 | 6 | – | (168) | 2,395 | | Employees and non-controlling shareholders of certain subsidiaries | 32,403 | 78 | – | (8,500) | 23,981 | | **Total** | **34,960** | **84** | **–** | **(8,668)** | **26,376** | - The term of the share option scheme expired on June 10, 2024, thus no further grants can be made under the scheme[116](index=116&type=chunk) [Share Award Scheme](index=53&type=section&id=11.15%20Share%20Award%20Scheme) The share award scheme was adopted on July 4, 2016, to reward employees and consultants; no shares were granted under the scheme for the periods ended June 30, 2025, and 2024 - The company's board of directors adopted a share award scheme for certain employees and consultants of the Group on July 4, 2016[200](index=200&type=chunk) - No shares were granted under the share award scheme for the periods ended June 30, 2025, and 2024[201](index=201&type=chunk) [Capital and Other Commitments](index=53&type=section&id=11.16%20Capital%20and%20Other%20Commitments) As of June 30, 2025, the company's contracted but not provided for commitments included RMB 20,683 thousand for the acquisition of subsidiaries and RMB 28,041 thousand for capital expenditure on property, plant and equipment Capital and Other Commitments (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Contracted but not provided for in respect of acquisition of subsidiaries | 20,683 | 21,783 | | Contracted but not provided for capital expenditure in respect of property, plant and equipment | 28,041 | 25,447 | [Fair Value Measurement of Financial Instruments](index=53&type=section&id=11.17%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) The company's financial assets and liabilities are measured at fair value using a fair value hierarchy (Level 1 to 3); the fair value of equity instruments designated at fair value through other comprehensive income (RMB 14,084 thousand) is classified as Level 3, estimated using discounted cash flow analysis - Fair value measurements are categorized into Level 1 to 3, with Level 3 fair value measurements derived from valuation techniques that include inputs for the asset or liability not based on observable market data (unobservable inputs)[205](index=205&type=chunk) Equity Instruments Designated at Fair Value Through Other Comprehensive Income (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Fair Value Hierarchy | Valuation Technique and Key Inputs | | :--- | :--- | :--- | :--- | :--- | | Equity instruments | 14,084 | 13,566 | Level 3 | Discounted cash flow – future cash flows are estimated based on further financial performance and discount rates | [Related Party Disclosures](index=54&type=section&id=11.18%20Related%20Party%20Disclosures) This section discloses transactions and balances with related parties, including pre-delivery service income, value-added service income, and engineering service income, as well as amounts due from/to fellow subsidiaries, associates, joint ventures, and other related parties; key management personnel compensation totaled RMB 6,438 thousand Related Party Transactions (for the six months ended June 30, 2025) | Transaction Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Pre-delivery service income | 1,084 | 853 | | Value-added services | 104 | 172 | | Engineering service income | 1,070 | 884 | Related Party Balances (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Amounts Due from Fellow Subsidiaries | 11,444 | 10,265 | | Amounts Due from Associates | 7,770 | 18,294 | | Amounts Due from Joint Ventures | 28,529 | 31,538 | | Amounts Due from Other Related Parties | 24,339 | 24,315 | | **Total Amounts Due from Related Parties** | **72,082** | **84,412** | | Amounts Due to Fellow Subsidiaries | 11,507 | 11,507 | | Amounts Due to Associates | 26,550 | 27,057 | | Amounts Due to Joint Ventures | 2,164 | 2,164 | | Amounts Due to Other Related Parties | 125 | 143 | | **Total Amounts Due to Related Parties** | **40,346** | **40,871** | Key Management Personnel Compensation (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Short-term benefits | 6,072 | 5,989 | | Post-employment benefits | 366 | 321 | | **Total** | **6,438** | **6,310** | [Comparative Figures](index=57&type=section&id=11.19%20Comparative%20Figures) The report indicates that certain comparative figures have been reclassified to conform to the current period's presentation - Certain comparative figures have been reclassified to conform to the current period's presentation[216](index=216&type=chunk)

山東 博 安 生 物 技 術 股 份 有限 公 司 （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） 股份代號 : 6955 2025 中期報告 目錄 2 公司概覽 3 公司資料 5 財務摘要 6 管理層討論及分析 26 其他資料 30 獨立審閱報告 31 中期簡明綜合損益及其他全面收益表 32 中期簡明綜合財務狀況表 34 中期簡明綜合權益變動表 35 中期簡明綜合現金流量表 37 中期簡明綜合財務資料附註 公司概覽 山東博安生物技術股份有限公司（「博安生物」或「本公司」，連同其附屬公司統稱「本集團」）成立於2013年，是一家 綜合性生物製藥公司，專門從事生物製品的研發、生產及營銷，專注於腫瘤、自身免疫性疾病、眼科及代謝疾病 等治療領域。本公司圍繞多個平台開展藥物發現活動：全人抗體轉基因小鼠及噬菌體展示技術平台、雙特異T-cell Engager技術平台、ADC技術平台及細胞治療平台。 博安生物的業務覆蓋全產業鏈，涵蓋抗體發現、細胞株開發、上游及下游工藝開發、分析及生物分析方法開發、技 術轉移、非臨床研究、臨床研究、法規及註冊以及商業化規模生產。在細胞治療領域，博安生物專注 ...

[Corporate Information](index=4&type=section&id=Corporate%20Information) [Board of Directors](index=4&type=section&id=Board%20of%20Directors) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, responsible for strategic decisions and oversight - Executive Directors include **Qu Naijie** (Chairman and CEO), **Qu Cheng**, and **Li Kehui** (Senior Vice President)[5](index=5&type=chunk) - Non-executive Directors include **Wang Xuguang**, **Yuan Bing**, and **Go Toutou**[5](index=5&type=chunk) - Independent Non-executive Directors include **Wang Jun**, **Zhu Yuchen**, and **Shen Han**[5](index=5&type=chunk) [Committees](index=4&type=section&id=Committees) The company has established audit, remuneration, nomination, risk management and corporate governance, and independent directors committees to ensure effective corporate governance - The Audit Committee is chaired by **Zhu Yuchen**[5](index=5&type=chunk) - The Remuneration Committee is chaired by **Wang Jun**[5](index=5&type=chunk) - The Nomination Committee is chaired by **Qu Naijie**[5](index=5&type=chunk) - The Risk Management and Corporate Governance Committee is chaired by **Yuan Bing**[6](index=6&type=chunk) - The Independent Directors Committee is chaired by **Wang Jun**[6](index=6&type=chunk) [Key Personnel and Advisors](index=5&type=section&id=Key%20Personnel%20and%20Advisors) The company secretary is Susan So, authorized representatives are Qu Cheng and Susan So, with legal advisors Ashurst and Liaoning Zhiku Law Firm, and auditor National Alliance CPA Limited - Company Secretary: **Susan So**[7](index=7&type=chunk) - Authorized Representatives: **Qu Cheng**, **Susan So**[7](index=7&type=chunk) - Auditor: **National Alliance CPA Limited**[7](index=7&type=chunk) [Registered and Business Offices](index=5&type=section&id=Registered%20and%20Business%20Offices) The company is registered in the Cayman Islands, with its China headquarters in Shanghai Pudong New Area and principal Hong Kong office in Tsim Sha Tsui, Kowloon - Registered Office: PO Box 309, Ugland House, Cayman Islands[8](index=8&type=chunk) - China Headquarters: 31st Floor, Building A, Phase I, Qiantan World Trade Center, No. 4, Lane 255, Dongyu Road, Pudong New Area, Shanghai[7](index=7&type=chunk) - Principal Place of Business in Hong Kong: Room 804, 8th Floor, K11 Atelier, Victoria Dockside, 18 Salisbury Road, Tsim Sha Tsui, Kowloon, Hong Kong[8](index=8&type=chunk) [Share Registrars and Banks](index=6&type=section&id=Share%20Registrars%20and%20Banks) Cayman Islands share registrar is Maples Fund Services, Hong Kong registrar is Tricor Investor Services, and the company maintains relationships with several major banks - Cayman Islands Share Registrar: **Maples Fund Services (Cayman) Limited**[9](index=9&type=chunk) - Hong Kong Share Registrar: **Tricor Investor Services Limited**[9](index=9&type=chunk) - Major Correspondent Banks include China Exim Bank, China Construction Bank, Bank of China, Industrial and Commercial Bank of China, etc[9](index=9&type=chunk) [Stock Code and Website](index=6&type=section&id=Stock%20Code%20and%20Website) The company's stock code is 2255, and its official website is http://www.haichangoceanpark.com - Stock Code: **2255**[10](index=10&type=chunk) - Company Website: **http://www.haichangoceanpark.com**[10](index=10&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=7&type=section&id=Business%20Review) The Group is a leading integrated marine-themed cultural tourism operator in China, managing 7 projects as of June 30, 2025, with H1 2025 revenue decreasing by 14.2% to RMB 686.3 million - The Group is a leading integrated marine-themed cultural tourism group in China, operating **7 theme parks** as of June 30, 2025[12](index=12&type=chunk)[14](index=14&type=chunk) - The Group has developed tourism and leisure services and solutions business and IP operation business[12](index=12&type=chunk)[14](index=14&type=chunk) 2025 H1 Revenue Overview | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 686.3 | 799.8 | -14.2% | [Park Operation Business](index=9&type=section&id=Park%20Operation%20Business) As of June 30, 2025, the Group operates 7 theme parks, experiencing a revenue decline due to external factors, while enhancing quality, introducing IPs, and leveraging online sales channels - As of June 30, 2025, the Group owns and operates **7 theme parks**, including Shanghai Haichang Ocean Park, Zhengzhou Haichang Ocean Tourist Resort, and Dalian Haichang Discovery Kingdom Theme Park[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) Park Operation Revenue Change | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Park Operation Revenue | 646 | 735.866 | -12.2% | - Multiple parks and hotels consistently ranked on the 2025 Ctrip Word-of-Mouth List and Meituan Hotel • Dianping Must-Stay List, with Shanghai Haichang Ocean Park Resort Hotel listed for **5 consecutive years**[23](index=23&type=chunk)[25](index=25&type=chunk) - Shanghai Park and Discovery Kingdom Park were selected as "Cultural Tourism Project Innovation and Development Cases" by the China Association of Amusement Parks and Attractions[24](index=24&type=chunk)[25](index=25&type=chunk) - Douyin (TikTok) platform has become the Group's **primary online sales channel**, with official live streams repeatedly ranking TOP1 in the national hotel and travel industry[27](index=27&type=chunk)[30](index=30&type=chunk) - Signed agreements in 2024 to lease out certain cultural tourism projects (including Chongqing Water Park and Commercial Street, most self-operated commercial streets in Sanya, and Yantai Hot Spring Resort) starting in 2025, to secure guaranteed rental income[29](index=29&type=chunk)[31](index=31&type=chunk) [Flagship projects are well-positioned for future growth](index=12&type=section&id=Flagship%20projects%20are%20well-positioned%20for%20future%20growth) Shanghai Park maintains its leading position and will expand with Phase II by 2026, while Zhengzhou Park's Phase II, also opening in 2026, will introduce global-first attractions - Shanghai Park ranked **sixth** in the 2024 Theme Park Competitiveness Comprehensive Evaluation[32](index=32&type=chunk)[35](index=35&type=chunk) - Shanghai Park Phase II — Oriental Ocean Project has a total construction area of approximately **140,000 square meters**, expected to open in **2026**, with the main structure already topped out[34](index=34&type=chunk)[36](index=36&type=chunk) - Zhengzhou Park Phase II is planned with a total land area of approximately **76,000 square meters** and a total construction area of approximately **32,000 square meters**, expected to open and operate within **2026**[39](index=39&type=chunk)[40](index=40&type=chunk) - Zhengzhou Park Phase II will include an Orca Theater, amusement rides, and a Happy Water World, featuring global-first attractions such as a multi-track "Century Pendulum"[39](index=39&type=chunk)[40](index=40&type=chunk) [Tourism & Leisure Services and Solutions Business](index=14&type=section&id=Tourism%20%26%20Leisure%20Services%20and%20Solutions%20Business) The Group exports its full-process tourism and leisure capabilities, with Beijing and Fuzhou projects adopting an asset-light model, expected to commence trial operations in 2027 and construction in 2026, respectively - The Group exports full-process cultural tourism capabilities in planning, design, construction, animal conservation, and operation management[41](index=41&type=chunk)[44](index=44&type=chunk) - Beijing Haichang Ocean Park project has a total construction scale of approximately **157,000 square meters**, with an estimated total investment of approximately **RMB 4.2 billion**, and is planned to begin trial operations in **H1 2027**[43](index=43&type=chunk)[44](index=44&type=chunk) - Fuzhou Haichang Ocean Park project is planned to commence construction in **2026**, led by a local state-owned platform company, with Haichang responsible for operation and revenue consolidation[46](index=46&type=chunk)[48](index=48&type=chunk) - Large-scale asset-light reserve projects include Ningbo Qianwan New Area Haichang IP Park and Saudi Arabia Haichang Ocean Park[47](index=47&type=chunk)[49](index=49&type=chunk) [IP Operation Business](index=16&type=section&id=IP%20Operation%20Business) The Group aims to build an international IP operation platform, integrating global IPs into offline consumption scenarios, with IP business revenue growing by 23% to RMB 78.06 million in H1 2025 - The goal is to build an international IP operation platform, realizing a new "IP + new scenarios" business model[50](index=50&type=chunk)[51](index=51&type=chunk) - Successfully integrated Ultraman IP and One Piece IP into Shanghai Park, Zhengzhou Park, and Discovery Kingdom Park[52](index=52&type=chunk)[54](index=54&type=chunk)[58](index=58&type=chunk) IP Business Revenue Growth | Indicator | 2025 H1 (RMB) | 2024 H1 (RMB) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | IP Business Revenue | 78,060,000 | 63,463,000 (estimated) | 23% | [Outlook](index=18&type=section&id=Outlook) Amidst national support for cultural tourism, the Group will pursue its strategy to become an international integrated cultural tourism group, with short-term growth from Shanghai and Zhengzhou Phase II, mid-term from asset-light projects and IP, and long-term from OAAS reserves - The state has intensively introduced multiple policies to promote consumption, bringing development opportunities for the cultural tourism industry[59](index=59&type=chunk)[60](index=60&type=chunk) - In the short term, the opening of Shanghai Park Phase II and Zhengzhou Park Phase II will provide **certainty for performance growth**[64](index=64&type=chunk)[65](index=65&type=chunk) - In the medium term, two large-scale asset-light theme park projects will be launched in Beijing and Fuzhou, enhancing market competitiveness through a "OAAS + IP" dual-driven model[66](index=66&type=chunk)[68](index=68&type=chunk) - In the long term, several OAAS projects are in negotiation, laying the foundation for sustained future growth[67](index=67&type=chunk)[69](index=69&type=chunk) Expected Opening Times for Future New Projects | Project | Type | Expected Opening | Operating Model | | :--- | :--- | :--- | :--- | | Zhengzhou Haichang Ocean Park Phase II Project | Theme Park | 2026 | Haichang owned and operated | | Shanghai Haichang Ocean Park Phase II Project | Theme Park | 2026 | Haichang operated | | Beijing Haichang Ocean Park Project | Theme Park | 2027 | Haichang operated | | Fuzhou Haichang Ocean Park Project | Theme Park | 2028 | Haichang operated | | Ningbo Qianwan New Area Haichang IP Park Project | Theme Park | 2028 | Haichang operated | | Saudi Arabia Haichang Ocean Park Project | Theme Park | Before 2030 | Haichang operated | [Financial Review](index=21&type=section&id=Financial%20Review) For H1 2025, Group revenue decreased by 14.2% to RMB 686.3 million, driven by declines in park operations and tourism services, leading to a significant drop in gross profit and an expanded loss of RMB 295.6 million 2025 H1 Key Financial Indicators | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 686,303 | 799,801 | -14.2% | | Cost of Sales | 614,601 | 604,929 | +1.6% | | Gross Profit | 71,702 | 194,872 | -63.2% | | Gross Profit Margin | 10.4% | 24.4% | -14.0pp | | Loss for the Period | (295,626) | (87,193) | Expanded 239.1% | | Net Loss Margin | 43.0% | 10.9% | +32.1pp | - Park operation segment revenue decreased by **12.2%**, primarily due to a decrease in visitor numbers and average spending per visitor[73](index=73&type=chunk)[75](index=75&type=chunk) - Tourism and leisure services and solutions segment revenue decreased by **37.3%**, primarily due to a reduction in project numbers[74](index=74&type=chunk)[75](index=75&type=chunk) - Other income and gains decreased by **71.5%**, mainly due to no revaluation gain on investment properties during the period[78](index=78&type=chunk)[83](index=83&type=chunk) - Selling and marketing expenses increased by **92.1%**, primarily due to a lower base in the prior year period[79](index=79&type=chunk)[84](index=84&type=chunk) - Finance costs decreased by **6.8%**, primarily due to a decrease in interest-bearing liabilities[87](index=87&type=chunk)[91](index=91&type=chunk) [Revenue](index=21&type=section&id=Revenue) In H1 2025, total revenue was RMB 686.3 million, a 14.2% decrease year-on-year, with park operations contributing 94.2% and tourism services 5.8% Revenue by Business Segment | Revenue by Business Segment | 2025 H1 (RMB thousand) | Proportion (%) | 2024 H1 (RMB thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Park Operations | 646,200 | 94.2% | 735,866 | 92.0% | | Tourism & Leisure Services and Solutions | 40,103 | 5.8% | 63,935 | 8.0% | | Total | 686,303 | 100.0% | 799,801 | 100.0% | [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group reported current assets of RMB 529.1 million, cash and cash equivalents of RMB 98.4 million, total equity of RMB 1.524 billion, and a net gearing ratio of 392.3% Liquidity and Financial Resources Overview | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Current Assets | 529.1 | 487.7 | | Cash and Cash Equivalents | 98.4 | 64.7 | | Total Equity | 1,524.4 | 1,815.3 | | Total Interest-bearing Bank and Other Borrowings | 5,839.3 | 5,898.4 | | Total Lease Liabilities | 239.5 | 295.3 | | Net Gearing Ratio | 392.3% | 337.6% | - The Board believes that existing financial resources are sufficient to execute future expansion plans and that additional financing can be obtained if needed[97](index=97&type=chunk)[100](index=100&type=chunk) [Capital Structure](index=24&type=section&id=Capital%20Structure) As of June 30, 2025, the company's share capital consists solely of ordinary shares - The company's share capital consists of **ordinary shares**[98](index=98&type=chunk)[101](index=101&type=chunk) [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) As of June 30, 2025, certain bank accounts were frozen due to supplier claims totaling RMB 7.786 million, for which the board has made full provision - As of June 30, 2025, certain bank accounts of the Group were frozen involving **RMB 7,786,000** due to claims from suppliers for overdue payments[99](index=99&type=chunk)[102](index=102&type=chunk) - The directors have made **full provision** for the payments, and save as disclosed, the Group has no other significant contingent liabilities[99](index=99&type=chunk)[102](index=102&type=chunk) [Foreign Exchange Rate Risk](index=25&type=section&id=Foreign%20Exchange%20Rate%20Risk) Operating primarily in China, the Group faces no significant foreign exchange rate risk, with directors expecting no material adverse impact from RMB fluctuations - The Group primarily operates in China, and foreign exchange rate risk is **not significant**[104](index=104&type=chunk)[108](index=108&type=chunk) - The directors expect that fluctuations in the RMB exchange rate will not have a **material adverse impact** on the Group's operations[104](index=104&type=chunk)[108](index=108&type=chunk) [Capital Commitments](index=25&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments totaled RMB 715.8 million, to be funded through operating cash and bank financing Capital Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, Plant and Equipment | 577,791 | 577,791 | | Right-of-use Assets | 138,000 | 138,000 | | Total | 715,791 | 715,791 | - Funds will be sourced from cash generated from operations, bank financing, and other channels[105](index=105&type=chunk)[109](index=109&type=chunk) [Staff Policy](index=25&type=section&id=Staff%20Policy) As of June 30, 2025, the Group had 2,970 full-time employees, a decrease from the prior year, offering attractive compensation and development programs Number of Full-time Employees | Date | Number of Full-time Employees | | :--- | :--- | | June 30, 2025 | 2,970 | | June 30, 2024 | 3,449 | - The Group provides a comprehensive and attractive compensation, retirement plan, and benefits package, with remuneration policies determined based on market conditions and individual performance[106](index=106&type=chunk)[107](index=107&type=chunk)[110](index=110&type=chunk) [Events After the Reporting Period](index=26&type=section&id=Events%20After%20the%20Reporting%20Period) On June 2, 2025, the company entered a subscription agreement to issue 5.1 billion new shares at HK$0.45 each, raising HK$2.284 billion net for operations, business development, and debt repayment - On June 2, 2025, the company entered into a subscription agreement with Sunriver Starrysea Tourism (Cayman) Co., Ltd[111](index=111&type=chunk)[114](index=114&type=chunk) Details of Subscription | Indicator | Value | | :--- | :--- | | Number of New Shares | 5,100,000,000 shares | | Subscription Price | HK$0.45 per share | | Total Consideration | HK$2,295,000,000 | | Net Proceeds | Approximately HK$2,284,000,000 | - Net proceeds will be used as follows: **20%** for daily operations and working capital, **40%** for core business development, and **40%** for repayment of certain existing debts[117](index=117&type=chunk) [Corporate Governance and Other Information](index=27&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=27&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, directors and the chief executive held interests in company shares, with Mr. Qu Cheng holding approximately 47.29% through a discretionary trust and Mr. Wang Xuguang holding 0.25% Directors' and Chief Executive's Share Interests | Director Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Qu Cheng | Founder of Discretionary Trust | 3,837,231,048 (Long Position) | 47.29% | | Mr. Qu Cheng | Beneficial Owner | 24,332,592 (Long Position) | 0.30% | | Mr. Wang Xuguang | Beneficial Owner | 20,780,000 (Long Position) | 0.25% | - Save as disclosed above, as of June 30, 2025, no other directors or chief executive had any disclosable interests or short positions in shares[121](index=121&type=chunk)[123](index=123&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=28&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) During H1 2025, no rights to acquire shares or debentures were granted to or exercised by any director, their spouse, or children under 18 - During the period, no rights to acquire shares or debentures were granted to or exercised by any director or their family members[122](index=122&type=chunk)[124](index=124&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=29&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, substantial shareholders, including Cantrust (Far East) Limited, Zeqiao Holdings Limited, Zeqiao International (BVI) Limited, and ORIX Corporation, held interests in the company's shares Substantial Shareholders' Share Interests | Name | Nature of Interest | Number of Shares | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Cantrust (Far East) Limited | Trustee | 3,837,231,048 (Long Position) | 47.29% | | Zeqiao Holdings Limited | Beneficial Owner | 3,837,231,048 (Long Position) | 47.29% | | Zeqiao International (BVI) Limited | Interest of Controlled Corporation | 3,837,231,048 (Long Position) | 47.29% | | ORIX Corporation | Interest of Controlled Corporation | 1,186,768,000 (Long Position) | 14.63% | | ORIX (China) Investment Co., Ltd. | Interest of Controlled Corporation | 786,768,000 (Long Position) | 9.70% | | Taishan Tianzun Investment Co., Ltd. | Beneficial Owner | 786,768,000 (Long Position) | 9.70% | | ORIX Asia Capital Limited | Beneficial Owner | 400,000,000 (Long Position) | 4.93% | [Share Option Scheme](index=31&type=section&id=Share%20Option%20Scheme) The company has 2014 and 2024 Share Option Schemes; the 2014 scheme expired with no outstanding options, while the 2024 scheme, adopted in June 2024, has a limit of 811.4 million shares and no options granted to date - The 2014 Share Option Scheme expired on June 30, 2025, and as of the report date, no further options can be granted[140](index=140&type=chunk)[144](index=144&type=chunk) - The 2024 Share Option Scheme was adopted on June 28, 2024, aiming to recognize contributions, encourage retention, and provide additional incentives[141](index=141&type=chunk)[145](index=145&type=chunk) - Under the 2024 Share Option Scheme, the maximum number of shares that can be issued is **811,400,200 shares**, representing **10%** of the total issued shares on the adoption date[142](index=142&type=chunk)[145](index=145&type=chunk) - As of the end of the reporting period, no share options have been granted, exercised, cancelled, or lapsed under the 2024 Share Option Scheme[149](index=149&type=chunk)[152](index=152&type=chunk) [2014 Share Option Scheme](index=31&type=section&id=2014%20Share%20Option%20Scheme) The 2014 Share Option Scheme, adopted in February 2014, expired on June 30, 2025, with no options granted, exercised, cancelled, or lapsed during the reporting period - The 2014 Share Option Scheme was adopted on **February 23, 2014**, with a validity period of **ten years**[135](index=135&type=chunk)[138](index=138&type=chunk)[140](index=140&type=chunk)[144](index=144&type=chunk) - Due to share split, the maximum number of shares that can be granted is **160,000,000 shares**[137](index=137&type=chunk)[139](index=139&type=chunk) - During the reporting period, no share options were granted, exercised, cancelled, or lapsed, and there were no outstanding share options at period-end[140](index=140&type=chunk)[144](index=144&type=chunk) [2024 Share Option Scheme](index=32&type=section&id=2024%20Share%20Option%20Scheme) The 2024 Share Option Scheme, adopted on June 28, 2024, has a ten-year validity, allowing for the issuance of up to 811.4 million shares to eligible participants, with no options granted during the period - The 2024 Share Option Scheme was adopted on **June 28, 2024**, with a validity period of **ten years**[141](index=141&type=chunk)[145](index=145&type=chunk) - The maximum number of shares that can be issued is **811,400,200 shares**, representing **10%** of the total issued shares on the adoption date[142](index=142&type=chunk)[145](index=145&type=chunk) - The total number of options granted to any eligible participant within any **12-month period** shall not exceed **1%** of the company's then-issued share capital[148](index=148&type=chunk)[152](index=152&type=chunk) - During the reporting period, no share options were granted, exercised, cancelled, or lapsed[149](index=149&type=chunk)[152](index=152&type=chunk) [Share Award Scheme](index=33&type=section&id=Share%20Award%20Scheme) Adopted on January 5, 2022, the Share Award Scheme aims to recognize and retain talent, with a limit of 800 million shares, and no awards granted to selected participants as of the report date - The Share Award Scheme was adopted on **January 5, 2022**, aiming to recognize contributions, attract and retain talent, and align participants' interests with shareholders' interests[150](index=150&type=chunk)[153](index=153&type=chunk) - The scheme limit is **800,000,000 shares**, equivalent to approximately **9.86%** of the total issued shares as of the report date[159](index=159&type=chunk)[163](index=163&type=chunk) - Since its adoption, no award shares have been granted to any selected participants[161](index=161&type=chunk)[163](index=163&type=chunk) - As of the date of this interim report, the trustee holds **9,910,000 repurchased shares** available for granting[161](index=161&type=chunk)[163](index=163&type=chunk) [Equity-Linked Agreements](index=35&type=section&id=Equity-Linked%20Agreements) During H1 2025, the company had no equity-linked agreements in place, nor any provisions that would lead to the issuance of shares - During the period, the company had **no equity-linked agreements** in place[162](index=162&type=chunk)[164](index=164&type=chunk) [Deed of Non-Competition from the Controlling Shareholders](index=36&type=section&id=Deed%20of%20Non-Competition%20from%20the%20Controlling%20Shareholders) Controlling shareholders have executed a non-competition deed, and the Independent Board Committee has confirmed their compliance with the undertakings - Controlling shareholders (Mr. Qu Cheng, Haichang Group Limited, and Chicheng Investment Limited) have entered into a **Deed of Non-Competition**[166](index=166&type=chunk)[168](index=168&type=chunk) - The Independent Board Committee monitors compliance and has found **no breach** of the non-competition undertakings by the controlling shareholders[167](index=167&type=chunk)[169](index=169&type=chunk) [Purchase, Redemption or Sale of Listed Securities of the Company](index=37&type=section&id=Purchase,%20Redemption%20or%20Sale%20of%20Listed%20Securities%20of%20the%20Company) During H1 2025, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities - During the period, neither the company nor its subsidiaries purchased, redeemed, or sold any listed securities[171](index=171&type=chunk)[176](index=176&type=chunk) [Pre-emptive Rights](index=37&type=section&id=Pre-emptive%20Rights) Neither the company's articles of association nor Cayman Islands law mandates pre-emptive rights for existing shareholders to subscribe for new shares proportionally - The company's articles of association or Cayman Islands law have **no pre-emptive rights** provisions[172](index=172&type=chunk)[177](index=177&type=chunk) [Corporate Governance](index=37&type=section&id=Corporate%20Governance) The Group is committed to high corporate governance standards, adopting the Corporate Governance Code, with a deviation regarding the combined roles of Chairman and CEO for efficiency - The company has adopted the code provisions of the **Corporate Governance Code**[173](index=173&type=chunk)[178](index=178&type=chunk) - The roles of Chairman and Chief Executive are combined and held by **Mr. Qu Naijie**, which deviates from code provision C.2.1, but the company believes this enhances efficiency in strategy formulation and execution[175](index=175&type=chunk)[179](index=179&type=chunk) [Model Code for Securities Transactions by Directors of Listed Issuers](index=38&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed strict compliance during H1 2025 - The company has adopted the Model Code as the code of conduct for directors' securities transactions[180](index=180&type=chunk)[183](index=183&type=chunk) - All directors confirmed strict compliance with the Model Code during the period[180](index=180&type=chunk)[183](index=183&type=chunk) [Audit Committee](index=38&type=section&id=Audit%20Committee) Comprising three independent non-executive directors, the Audit Committee, chaired by Mr. Zhu Yuchen, has reviewed the Group's unaudited interim financial information and report for H1 2025 - The Audit Committee comprises three independent non-executive directors: **Mr. Zhu Yuchen** (Chairman), **Mr. Wang Jun**, and **Ms. Shen Han**[181](index=181&type=chunk)[184](index=184&type=chunk) - The Committee has reviewed the Group's unaudited interim financial information and interim report for the six months ended June 30, 2025[181](index=181&type=chunk)[184](index=184&type=chunk) [Interim Dividend](index=38&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024 corresponding period: nil)[182](index=182&type=chunk)[185](index=185&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=39&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) [Consolidated Profit or Loss](index=39&type=section&id=Consolidated%20Profit%20or%20Loss) For H1 2025, the Group reported revenue of RMB 686.3 million, gross profit of RMB 71.7 million, a pre-tax loss of RMB 295.6 million, and a net loss of RMB 295.6 million, significantly wider than the prior year Interim Condensed Consolidated Statement of Profit or Loss (Unaudited) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 686,303 | 799,801 | | Cost of Sales | (614,601) | (604,929) | | Gross Profit | 71,702 | 194,872 | | Other Income and Gains | 27,434 | 96,297 | | Selling and Marketing Expenses | (51,252) | (26,744) | | Administrative Expenses | (172,528) | (166,944) | | Finance Costs | (156,965) | (168,518) | | Loss Before Tax | (295,610) | (83,408) | | Income Tax Expense | (16) | (3,785) | | Loss for the Period | (295,626) | (87,193) | | Loss Attributable to Owners of the Parent | (295,139) | (84,226) | | Loss Attributable to Non-controlling Interests | (487) | (2,967) | | Basic and Diluted Loss Per Share (RMB cents) | (3.64) | (1.04) | [Interim Condensed Consolidated Statement of Comprehensive Income](index=40&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) [Consolidated Comprehensive Income](index=40&type=section&id=Consolidated%20Comprehensive%20Income) For H1 2025, the Group recorded a net loss of RMB 295.6 million, with other comprehensive income of RMB 4.721 million, resulting in a total comprehensive loss of RMB 290.9 million Interim Condensed Consolidated Statement of Comprehensive Income (Unaudited) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the Period | (295,626) | (87,193) | | Other Comprehensive Loss to be Reclassified to Profit or Loss in Subsequent Periods | (52,774) | (17,922) | | Other Comprehensive Income Not to be Reclassified to Profit or Loss in Subsequent Periods | 57,495 | 20,252 | | Other Comprehensive Income for the Period (Net of Tax) | 4,721 | 2,330 | | Total Comprehensive Loss for the Period | (290,905) | (84,863) | | Attributable to Owners of the Parent | (290,418) | (81,896) | | Attributable to Non-controlling Interests | (487) | (2,967) | [Interim Condensed Consolidated Statement of Financial Position](index=41&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Consolidated Financial Position](index=41&type=section&id=Consolidated%20Financial%20Position) As of June 30, 2025, the Group's total non-current assets were RMB 9.588 billion, total current assets RMB 529.1 million, net current liabilities RMB 3.193 billion, total liabilities RMB 8.593 billion, and net assets RMB 1.524 billion Interim Condensed Consolidated Statement of Financial Position (Unaudited) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 6,089,725 | 6,237,390 | | Investment Properties | 745,500 | 745,500 | | Right-of-use Assets | 1,515,515 | 1,592,207 | | Intangible Assets | 19,413 | 21,030 | | Total Non-current Assets | 9,588,005 | 9,851,854 | | **Current Assets** | | | | Cash and Cash Equivalents | 98,434 | 64,738 | | Total Current Assets | 529,074 | 487,699 | | **Current Liabilities** | | | | Trade and Bills Payables | 1,043,121 | 1,035,049 | | Interest-bearing Bank and Other Borrowings | 1,648,165 | 1,560,983 | | Total Current Liabilities | 3,721,685 | 3,440,618 | | Net Current Liabilities | (3,192,611) | (2,952,919) | | **Non-current Liabilities** | | | | Interest-bearing Bank and Other Borrowings | 4,191,147 | 4,337,434 | | Total Non-current Liabilities | 4,870,999 | 5,083,635 | | **Equity** | | | | Total Equity | 1,524,395 | 1,815,300 | [Interim Condensed Consolidated Statement of Changes in Equity](index=43&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Consolidated Changes in Equity](index=43&type=section&id=Consolidated%20Changes%20in%20Equity) For H1 2025, equity attributable to owners of the parent decreased from RMB 1.723 billion to RMB 1.432 billion, primarily due to a net loss of RMB 295.1 million during the period Interim Condensed Consolidated Statement of Changes in Equity (Unaudited) | Indicator | January 1, 2025 (RMB thousand) | Loss for the Period (RMB thousand) | Exchange Differences (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Total Attributable to Owners of the Parent | 1,722,760 | (295,139) | 4,721 | 1,432,342 | | Non-controlling Interests | 92,540 | (487) | – | 92,053 | | Total Equity | 1,815,300 | (295,626) | 4,721 | 1,524,395 | [Interim Condensed Consolidated Statement of Cash Flows](index=44&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Consolidated Cash Flows](index=44&type=section&id=Consolidated%20Cash%20Flows) For H1 2025, the Group reported net cash outflow from operating activities of RMB 30.302 million, net cash inflow from investing activities of RMB 9.124 million, and net cash inflow from financing activities of RMB 54.48 million Interim Condensed Consolidated Statement of Cash Flows (Unaudited) | Cash Flow Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Flows (Used in)/Generated from Operating Activities | (30,302) | 145,343 | | Net Cash Flows Generated from Investing Activities | 9,124 | 12,290 | | Net Cash Flows Generated from/(Used in) Financing Activities | 54,480 | (569,136) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 33,302 | (411,503) | | Cash and Cash Equivalents at Beginning of Period | 53,274 | 1,695,410 | | Net Effect of Exchange Rate Changes | 4,072 | (1,609) | | Cash and Cash Equivalents at End of Period | 90,648 | 1,282,298 | [Notes to Interim Condensed Consolidated Financial Information](index=47&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Information) [Basis of Preparation](index=47&type=section&id=Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with IAS 34 'Interim Financial Reporting' and should be read with the Group's annual consolidated financial statements for the year ended December 31, 2024 - The interim financial information is prepared in accordance with **IAS 34 'Interim Financial Reporting'**[200](index=200&type=chunk)[201](index=201&type=chunk) [Basis of Presentation](index=47&type=section&id=Basis%20of%20Presentation) As of June 30, 2025, the Group had net current liabilities of RMB 3.193 billion and a net loss of RMB 295.6 million, but the Board believes sufficient funding is available for sustainable operations - As of June 30, 2025, the Group had net current liabilities of **RMB 3,192,611,000** and a net loss for the period of **RMB 295,626,000**[201](index=201&type=chunk)[202](index=202&type=chunk) - The Group has unutilized bank and credit facilities totaling **RMB 4,500,000,000** with validity extending beyond December 31, 2025[202](index=202&type=chunk) - The subscription agreement will bring a total consideration of **HK$2,295,000,000**, approved by shareholders, which will help improve liquidity[207](index=207&type=chunk) - The Board believes the Group will have sufficient working capital, making the preparation of financial information on a **going concern basis appropriate**[204](index=204&type=chunk)[206](index=206&type=chunk) [Changes in Accounting Policies and Disclosures](index=49&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) This period's financial information adopts revised IFRS accounting standards, including amendments to IAS 21 'Lack of Exchangeability', with no significant impact on the Group's financial position or performance - This period marks the first application of new and revised IFRS accounting standards, including amendments to **IAS 21 'Lack of Exchangeability'**[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) - The application of these amendments has had **no significant impact** on the Group's financial position and performance[209](index=209&type=chunk)[211](index=211&type=chunk) [Operating Segment Information](index=50&type=section&id=Operating%20Segment%20Information) The Group primarily operates in Mainland China, with over 99% of revenue and non-current assets from the region, and segment data shows park operations as the main revenue source, albeit with declining performance - Over **99%** of the Group's revenue and non-current assets are derived from Mainland China, thus no geographical information is presented[212](index=212&type=chunk)[215](index=215&type=chunk) Operating Segment Revenue and Results (For the six months ended June 30, 2025) | Segment | Revenue (RMB thousand) | Segment Results (RMB thousand) | | :--- | :--- | :--- | | Park Operations | 646,200 | 65,654 | | Operations as a Service | 40,103 | 6,048 | | Property Development | – | – | | Total | 686,303 | 71,702 | Operating Segment Assets and Liabilities (As of June 30, 2025) | Segment | Segment Assets (RMB thousand) | Segment Liabilities (RMB thousand) | | :--- | :--- | :--- | | Park Operations | 9,215,063 | 256,090 | | Operations as a Service | 87,505 | 312,708 | | Property Development | 300,252 | – | | Total | 9,602,820 | 568,798 | [Other segment information](index=54&type=section&id=Other%20segment%20information) Other segment information for H1 2025 shows depreciation and amortization of RMB 189 million and capital expenditure of RMB 14.691 million for the park operation segment Other Segment Information (For the six months ended June 30, 2025) | Indicator | Park Operations (RMB thousand) | Operations as a Service (RMB thousand) | Property Development (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Depreciation and Amortization (Segment) | 189,001 | 4,213 | – | 193,214 | | Capital Expenditure (Segment) | 14,691 | – | – | 14,691 | [Revenue](index=56&type=section&id=Revenue_Note) Revenue primarily derives from customer contracts and investment property operating leases, with ticket sales, in-park consumption, and hotel operations being key drivers for park operations Revenue Analysis (For the six months ended June 30, 2025) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from Customer Contracts | 665,277 | 780,691 | | Gross Rental Income from Investment Properties Operating Leases | 21,026 | 19,110 | | Total | 686,303 | 799,801 | Disaggregation of Revenue from Customer Contracts (For the six months ended June 30, 2025) | Type of Goods or Services | Park Operations (RMB thousand) | Operations as a Service (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Ticket Sales | 320,248 | – | 320,248 | | Food and Beverage Sales | 68,539 | – | 68,539 | | Merchandise Sales | 80,163 | – | 80,163 | | In-park Amusement Fees | 74,422 | – | 74,422 | | Revenue from Hotel Operations | 81,802 | – | 81,802 | | Consulting, Management and Amusement Income | – | 40,103 | 40,103 | | Total | 625,174 | 40,103 | 665,277 | - All revenue from customer contracts is derived from the **Mainland China market**[245](index=245&type=chunk) [Loss Before Tax](index=60&type=section&id=Loss%20Before%20Tax) For H1 2025, the Group's pre-tax loss was RMB 295.6 million, influenced by cost of sales, depreciation, marketing expenses, administrative fees, and finance costs Components of Loss Before Tax (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Goods Sold | 37,258 | 46,216 | | Cost of Services Provided | 577,159 | 558,388 | | Depreciation of Property, Plant and Equipment | 161,530 | 178,086 | | Depreciation of Right-of-use Assets | 31,684 | 35,001 | | Amortization of Intangible Assets | 1,617 | 3,617 | | Net Exchange Differences | 649 | 3,939 | | Rental Income | (21,026) | (19,110) | | Interest Income | (75) | (2,193) | | Government Grants Recognized | (15,599) | (19,279) | | Loss on Disposal of Items of Property, Plant and Equipment | 826 | 726 | [Income Tax](index=61&type=section&id=Income%20Tax) For H1 2025, the Group reported an income tax expense of RMB 16 thousand, a significant reduction from the prior year, primarily due to the loss incurred Income Tax Expense (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current - Mainland China: Over-provision in prior years | – | (2,765) | | Deferred | 16 | 6,550 | | Total Tax Expense for the Period | 16 | 3,785 | - China corporate income tax is provided at a rate of **25%**[254](index=254&type=chunk) [Dividend](index=61&type=section&id=Dividend) No interim dividend was paid, declared, or proposed for the six months ended June 30, 2025 - No interim dividend was paid, declared, or proposed during the period[255](index=255&type=chunk)[256](index=256&type=chunk) [Loss Per Share Attributable to Ordinary Equity Holders of the Parent](index=62&type=section&id=Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For H1 2025, both basic and diluted loss per share were RMB 3.64 cents, an increase from RMB 1.04 cents in the prior year, with no dilutive potential ordinary shares outstanding Loss Per Share Calculation (For the six months ended June 30, 2025) | Indicator | 2025 (RMB thousand/share) | 2024 (RMB thousand/share) | | :--- | :--- | :--- | | Loss Attributable to Ordinary Equity Holders of the Parent | (295,139) | (84,226) | | Weighted Average Number of Ordinary Shares in Issue | 8,104,092,000 | 8,104,092,000 | | Basic and Diluted Loss Per Share (RMB cents) | (3.64) | (1.04) | - There were no dilutive potential ordinary shares in issue during the period, thus the amount of diluted loss per share is the same as basic loss per share[260](index=260&type=chunk) [Property, Plant and Equipment](index=63&type=section&id=Property,%20Plant%20and%20Equipment) As of June 30, 2025, property, plant, and equipment totaled RMB 6.090 billion, with additions of RMB 14.691 million, depreciation of RMB 161.5 million, and a net loss of RMB 0.826 million from asset disposals Changes in Property, Plant and Equipment (As of June 30, 2025) | Item | Total (RMB thousand) | | :--- | :--- | | At January 1, 2025 (Audited) | 6,237,390 | | Additions | 14,691 | | Depreciation | (161,530) | | Disposals | (826) | | At June 30, 2025 (Unaudited) | 6,089,725 | - The cost of assets acquired during the period was **RMB 14,691,000**, and the net book value of assets disposed of was **RMB 826,000**, resulting in a net loss on disposal of **RMB 826,000**[263](index=263&type=chunk)[265](index=265&type=chunk) [Trade Receivables](index=64&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables were RMB 58.339 million, with RMB 29.869 million due within 90 days and RMB 24.65 million due between 90 days and one year Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 29,869 | 45,881 | | Over 90 days and within 1 year | 24,650 | 729 | | Over 1 year | 3,820 | 4,012 | | Total | 58,339 | 50,622 | [Prepayments and Other Receivables](index=65&type=section&id=Prepayments%20and%20Other%20Receivables) As of June 30, 2025, prepayments and other receivables totaled RMB 217.1 million, primarily comprising prepayments for construction, property, plant, and equipment, and land Prepayments and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments for Construction and Property, Plant and Equipment | 866,809 | 870,624 | | Prepayments for Land | 63,700 | 63,700 | | Prepaid Expenses | 75,711 | 66,104 | | Recoverable or Refundable VAT | 51,378 | 46,633 | | Receivables from Disposal of Equity Interest in an Associate | 9,600 | 33,600 | | Other Deposits and Receivables | 65,650 | 66,321 | | Amounts Due from Related Companies | 3,250 | 3,161 | | Less: Non-current Portion | (868,516) | (872,331) | | Impairment Provision | (50,478) | (50,478) | | Total | 217,104 | 227,334 | - The balance of prepayments includes a long-term prepayment of **RMB 63,700,000** to a related company[270](index=270&type=chunk)[271](index=271&type=chunk) [Trade and Bills Payables](index=66&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, trade and bills payables totaled RMB 1.043 billion, with trade payables of RMB 943.1 million and bills payables of RMB 100 million, typically settled within 30 to 180 days Trade and Bills Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 943,121 | 935,049 | | Bills Payables | 100,000 | 100,000 | | Total | 1,043,121 | 1,035,049 | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 380,869 | 501,749 | | Over 1 year | 562,252 | 433,300 | | Total | 943,121 | 935,049 | - Trade payables are non-interest bearing and typically settled within **30 to 180 days**, with some suppliers agreeing to extend credit terms beyond one year[275](index=275&type=chunk)[277](index=277&type=chunk) [Share Capital](index=68&type=section&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital consisted of 8,114,002,000 ordinary shares with a par value of US$0.00005 each, totaling RMB 2.489 million Share Capital (As of June 30, 2025) | Shares | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Issued and fully paid: 8,114,002,000 ordinary shares of US$0.00005 each | 2,489 | 2,489 | [Contingent Liabilities_Note](index=68&type=section&id=Contingent%20Liabilities_Note) Certain bank accounts were frozen due to supplier claims totaling RMB 7.786 million, for which full provision has been made, with no other significant contingent liabilities - As of June 30, 2025, certain bank accounts of the Group were frozen involving **RMB 7,786,000**[279](index=279&type=chunk)[280](index=280&type=chunk) - The directors have made **full provision** for the payments, and save as disclosed, the Group has no other significant contingent liabilities[279](index=279&type=chunk)[280](index=280&type=chunk) [Commitments_Note](index=69&type=section&id=Commitments_Note) As of June 30, 2025, the Group's total contractual commitments amounted to RMB 715.8 million, primarily for property, plant, and equipment and right-of-use assets Contractual Commitments (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, Plant and Equipment | 577,791 | 577,791 | | Right-of-use Assets | 138,000 | 138,000 | | Total | 715,791 | 715,791 | [Related Party Transactions](index=69&type=section&id=Related%20Party%20Transactions) The Group engages in transactions and has outstanding balances with various related parties and key management personnel, including lease expenses, goods purchases, and hotel operating income, with key management providing guarantees for certain borrowings Transactions with Related Parties (For the six months ended June 30, 2025) | Transaction Type | Related Party | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Lease Expenses | Dalian Haichang Land Guanglu Island Hotel | 580 | 580 | | Purchase of Goods | Haichang Marine Delicacies Aquaculture | – | 76 | | Hotel Operating Income | Dalian Haichang Group | 1 | 2 | | Ticket Sales Revenue | Dalian Haichang Group | 90 | 90 | | Purchase of Equipment | Dalian Oriental Water City Development | – | 499 | - Mr. Qu Naijie, Ms. Cheng Chunping, Mr. Qu Cheng, and/or Ms. Yang Di provided **gratuitous guarantees** for certain borrowings of the Group totaling **RMB 4,883,200,000**[289](index=289&type=chunk)[290](index=290&type=chunk) Outstanding Balances with Related Parties (As of June 30, 2025) | Balance Type | Related Party | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Long-term Prepayment to a Related Company | Dalian Haichang Group | 63,700 | 63,700 | | Amounts Due from Related Companies | Haichang Commercial Operations | 1,925 | 1,925 | | Amounts Due to Related Companies | Haichang Marine Delicacies Aquaculture | 196 | 196 | Remuneration of Key Management Personnel (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, Allowances, Bonuses, Benefits and Other Fees | 5,535 | 5,600 | | Retirement Benefits | 194 | 289 | | Total Remuneration | 5,729 | 5,889 | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=75&type=section&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) Management assesses that the fair value of the Group's financial instruments approximates their carrying amounts, primarily due to short maturities or market-rate pricing, with Level 3 financial assets totaling RMB 90.282 million as of June 30, 2025 - The fair value of interest-bearing bank loans and other borrowings approximates their carrying amounts, primarily because they are made at **current market interest rates**[296](index=296&type=chunk)[299](index=299&type=chunk) - The fair value of other financial instruments approximates their carrying amounts, primarily due to their **short-term maturities**[297](index=297&type=chunk)[299](index=299&type=chunk) Assets Measured at Fair Value (As of June 30, 2025) | Item | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss | 90,282 | 90,282 | Changes in Level 3 Fair Value Measurements (As of June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | At January 1 (Audited) | 110,282 | 146,429 | | Return of Capital | (20,000) | – | | Fair Value Loss | – | (10,976) | | At June 30 (Unaudited) | 90,282 | 135,453 | [Events After the Reporting Period_Note](index=78&type=section&id=Events%20After%20the%20Reporting%20Period_Note) Except for disclosures elsewhere in the interim condensed consolidated financial information, there are no other post-reporting period events for the Group - Except for the disclosed subscription agreement, there are **no other significant post-reporting period events**[309](index=309&type=chunk)[312](index=312&type=chunk) [Approval of the Interim Condensed Consolidated Financial Information](index=78&type=section&id=Approval%20of%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) The unaudited interim condensed consolidated financial information was approved and authorized for issue by the company's Board of Directors on August 29, 2025 - The interim condensed consolidated financial information was approved and authorized for issue by the Board of Directors on **August 29, 2025**[310](index=310&type=chunk)[313](index=313&type=chunk)

Revenue Performance - The group's revenue decreased by 2% to HKD 362.7 million for the period ending June 30, 2025, compared to HKD 369.2 million in 2024[7]. - The group's total revenue from continuing operations decreased by 2% to HKD 362.7 million in 2025, down from HKD 369.2 million in 2024, with total attendance dropping by 7%[16]. - Revenue for the six months ended June 30, 2025, is HKD 362,684,000, a slight decrease from HKD 369,249,000 for the same period in 2024[28]. - Total revenue for the six months ended June 30, 2025, was HKD 362.68 million, a decrease from HKD 369.25 million in the same period of 2024, representing a decline of approximately 1.5%[55]. - The segment revenue from movie screenings was HKD 483.16 million for the six months ended June 30, 2025, compared to HKD 537.47 million in 2024, indicating a decrease of about 10.1%[54]. Profitability - The group recorded a non-recurring income of HKD 19.1 million due to the reversal of restoration cost provisions and HKD 85.8 million from lease modifications during the period[8]. - The gross profit from continuing operations increased by 1% to HKD 242.9 million, attributed to higher-margin film licensing revenue[16]. - Operating profit significantly increased to HKD 115,445,000 from HKD 8,827,000 year-over-year[28]. - The profit before tax for the period is HKD 105,085,000, a recovery from a loss of HKD 10,731,000 in the previous year[28]. - The net profit from continuing operations is HKD 136,712,000, compared to a loss of HKD 17,678,000 in the same period last year[29]. - The company reported a profit of HKD 136,712,000 for the six months ended June 30, 2025, compared to a loss of HKD 81,048,000 in the same period of 2024, marking a significant turnaround[31]. - The group recorded a profit attributable to equity holders of HKD 136,712,000 for the six months ended June 30, 2025, compared to a loss of HKD 81,048,000 for the same period in 2024[63]. Attendance and Market Share - The cinema operations in Singapore accounted for 79% of the group's total segment revenue in 2025, down from 81% in 2024, highlighting its significance as a primary revenue source[8]. - The total attendance in Hong Kong dropped from 900,000 in the first half of 2024 to 800,000 in the same period of 2025, leading to a 26% decline in box office revenue to HKD 42.8 million[11]. - The group maintained its market leadership in Singapore with a 57% share of the local box office during the reporting period[9]. - The average ticket price in Hong Kong decreased from HKD 64 in 2024 to HKD 53 in 2025, aimed at attracting more viewers back to cinemas[11]. - The average net ticket price rose by 6% from SGD 12.1 in 2024 to SGD 12.8 in 2025, despite a 5% decrease in attendance to 2.24 million[13]. Operational Changes - The number of cinemas operated in Hong Kong decreased from 8 in 2024 to 0 in 2025, resulting in a significant operational shift[10]. - The group has ceased all cinema operations in Hong Kong as of June 30, 2025, focusing its efforts on the Singapore market[8]. - The cinema business remains the primary revenue source, contributing 88% to the total segment revenue as of June 30, 2025[9]. - The group operates 16 cinemas with 122 screens in Singapore, maintaining a market share of 51% of installed screens and 57% of total box office revenue[12]. - The group plans to expand its Gold Class premium cinema offerings to meet changing consumer preferences post-pandemic[13]. Financial Position - The net asset value reached HKD 1.4054 billion as of June 30, 2025, up from HKD 1.1698 billion at the end of 2024[19]. - Cash and bank balances totaled HKD 152.2 million as of June 30, 2025, compared to HKD 133.6 million at the end of 2024[19]. - The company's net asset value rose to HKD 1,405,386,000 as of June 30, 2025, compared to HKD 1,169,790,000 at the end of 2024, indicating improved financial health[35]. - The company’s cash and cash equivalents increased to HKD 152,205,000 from HKD 133,568,000, demonstrating better liquidity management[34]. - The group’s debt-to-asset ratio remains stable at 9.0% as of June 30, 2025, compared to 8.0% on December 31, 2024[20]. Future Outlook - The group anticipates a decline in box office, attendance, and overall revenue due to a lack of blockbuster films and shortened release schedules[7]. - The group aims to diversify revenue by increasing alternative content and live streaming, as well as enhancing its e-commerce capabilities[14]. - The company will adopt a cautious approach towards future operations and expansion plans due to high uncertainty in trade prospects[21]. - Future guidance indicates a cautious outlook due to market volatility and potential economic challenges[39]. Corporate Governance and Shareholder Information - The company does not recommend the payment of an interim dividend for the six months ending June 30, 2025, consistent with the previous year[79]. - The company has adhered to the corporate governance code, with exceptions noted for attendance at shareholder meetings by certain directors[109]. - The company has adopted a relaxed code for securities trading by directors, confirming compliance during the reporting period[110]. - The company’s major shareholder, Mr. Wu, holds 1,998,578,497 shares, representing approximately 71.39% of the issued share capital[101]. - As of June 30, 2025, the total number of shares issued is 2,799,669,050, with major shareholders holding significant stakes: 71.39% by Wu Ke Bo, 51.18% by Mainway Enterprises Limited, and 20.21% by Orange Sky Entertainment Group[104].

[Company Overview and Financial Summary](index=1&type=section&id=Company%20Overview%20and%20Financial%20Summary) This section provides an overview of the company's basic information and summarizes its consolidated financial performance and position for the year [Company Basic Information](index=5&type=section&id=1.1%20Company%20Basic%20Information) China Financial International Investments Limited (the Company) is incorporated in Bermuda, with shares listed on the Hong Kong Stock Exchange, primarily investing in listed and unlisted companies in Hong Kong and China - The Company is incorporated in Bermuda, with its shares listed on the Hong Kong Stock Exchange[6](index=6&type=chunk) - The Group primarily engages in investing in listed and unlisted companies established and/or operating in Hong Kong and China[6](index=6&type=chunk) - The consolidated financial statements are presented in HKD, while the Company's functional currency is RMB[6](index=6&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=1.2%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended June 30, 2025, the Group shifted from a profit to a loss, primarily due to fair value changes in financial assets and a significant decrease in revenue, despite notable growth in other income and a reduction in administrative expenses Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 164 | 1,224 | -86.60% | | Other Income | 327 | 1 | +32600.00% | | Reversal of impairment loss on other receivables | 3,677 | 6,722 | -45.30% | | Fair value (loss)/gain on financial assets at fair value through profit or loss | (4,978) | 24,543 | -120.28% | | Administrative expenses | (7,112) | (7,589) | -6.29% | | (Loss)/profit before tax | (8,809) | 23,759 | -137.16% | | (Loss)/profit for the year | (8,809) | 27,897 | -131.58% | | Total comprehensive (expense)/income for the year attributable to owners of the Company | (7,906) | 35,694 | -122.15% | - The net loss for the year was **HK$8,809,000**, compared to a net profit of HK$27,897,000 last year[2](index=2&type=chunk)[26](index=26&type=chunk) - Among other comprehensive income, the fair value gain on equity instruments at fair value through other comprehensive income was **HK$1,838,000**, a significant decrease from HK$8,562,000 last year[3](index=3&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=1.3%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and total equity decreased, but cash and cash equivalents significantly increased, while prepayments and other receivables substantially decreased Key Data from Consolidated Statement of Financial Position | Indicator | 2025 (HK$ '000) | 2024 (HK$ '000) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Interests in an associate | 306 | 199 | +53.77% | | Financial assets at fair value through profit or loss | 27,888 | 36,992 | -24.61% | | Equity instruments at fair value through other comprehensive income | 29,761 | 27,923 | +6.58% | | Total non-current assets | 57,955 | 65,382 | -11.36% | | **Current assets** | | | | | Prepayments, deposits and other receivables | 1,824 | 104,275 | -98.25% | | Financial assets at fair value through profit or loss | 25,150 | 21,215 | +18.55% | | Cash and cash equivalents | 96,482 | 19 | +507700.00% | | Total current assets | 123,456 | 125,509 | -1.64% | | **Current liabilities** | | | | | Other payables and accrued liabilities | 13,739 | 14,376 | -4.30% | | Borrowings | 9,997 | 9,997 | 0.00% | | Total current liabilities | 24,174 | 25,377 | -4.89% | | Net assets | 157,237 | 165,143 | -4.80% | - Cash and cash equivalents significantly increased from **HK$19,000** in 2024 to **HK$96,482,000** in 2025[4](index=4&type=chunk)[38](index=38&type=chunk) - Prepayments, deposits, and other receivables significantly decreased from **HK$104,275,000** in 2024 to **HK$1,824,000** in 2025[4](index=4&type=chunk) [Per Share Financial Indicators](index=2&type=section&id=1.4%20Per%20Share%20Financial%20Indicators) This year's basic loss per share was HK$0.080 cents, compared to a basic earnings per share of HK$0.254 cents last year, with net asset value per share also decreasing Per Share Financial Indicators | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic (loss)/earnings per share (HK cents) | (0.080) | 0.254 | | Net asset value per share (HK cents) | 1.43 | 1.51 | | Weighted average number of ordinary shares ('000 shares) | 10,971,634 | 10,971,634 | - Diluted (loss)/earnings per share is not presented as there were no potential ordinary shares outstanding for both years[24](index=24&type=chunk) [Accounting Policies and Standards](index=5&type=section&id=Accounting%20Policies%20and%20Standards) This section details the Group's general information, the application of new Hong Kong Financial Reporting Standards, and amendments issued but not yet effective [General Information](index=5&type=section&id=2.1%20General%20Information) The Company is an exempted company incorporated in Bermuda, with shares listed on the Hong Kong Stock Exchange, primarily investing in listed and unlisted companies in Hong Kong and China - The Company has deregistered in the Cayman Islands and re-domiciled to Bermuda as an exempted company[6](index=6&type=chunk) - The Group primarily engages in investing in listed and unlisted companies established and/or operating in Hong Kong and China[6](index=6&type=chunk) [Amendments to Hong Kong Financial Reporting Standards Applied](index=5&type=section&id=2.2%20Amendments%20to%20Hong%20Kong%20Financial%20Reporting%20Standards%20Applied) This year, the Group first applied several new and amended Hong Kong Financial Reporting Standards issued by the HKICPA, which had no significant impact on its financial position or performance Amendments to Hong Kong Financial Reporting Standards Mandatorily Effective This Year | Amended Standard | Content | | :--- | :--- | | Amendments to HKAS 1 | Classification of Liabilities as Current or Non-current and related amendments to HK Interpretation 5 (2020) | | Amendments to HKAS 1 | Non-current Liabilities with Covenants | | Amendments to HKAS 7 and HKFRS 7 | Supplier Finance Arrangements | | Amendments to HKFRS 16 | Lease Liability in a Sale and Leaseback | - The application of amendments to HKFRS accounting standards this year had no significant impact on the Group's financial position and performance for the current and prior years, and/or the disclosures in these consolidated financial statements[7](index=7&type=chunk) [Amendments to Hong Kong Financial Reporting Standards Issued But Not Yet Effective](index=6&type=section&id=2.3%20Amendments%20to%20Hong%20Kong%20Financial%20Reporting%20Standards%20Issued%20But%20Not%20Yet%20Effective) The Group has not early adopted several issued but not yet effective HKFRS amendments, with HKFRS 18 "Presentation and Disclosure in Financial Statements" expected to impact future financial statement presentation and disclosures Amendments to Hong Kong Financial Reporting Standards Issued But Not Yet Effective | Amended Standard | Content | Effective Date | | :--- | :--- | :--- | | Amendments to HKFRS 10 and HKAS 28 | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | A date to be determined | | Amendments to HKAS 21 | Lack of Exchangeability | On or after 1 January 2025 | | Amendments to HKFRS 9 and HKFRS 7 | Amendments to Classification and Measurement of Financial Instruments | On or after 1 January 2026 | | Amendments to HKFRS 9 and HKFRS 7 | Contracts for which the output is electricity generated from natural resources | On or after 1 January 2026 | | Amendments to HKFRS Accounting Standards | Annual Improvements to HKFRS Accounting Standards – Volume 11 | On or after 1 January 2026 | | HKFRS 18 | Presentation and Disclosure in Financial Statements | On or after 1 January 2027 | - HKFRS 18 "Presentation and Disclosure in Financial Statements" will replace HKAS 1, introducing new presentation and disclosure requirements, which are expected to impact the presentation of the statement of profit or loss and disclosures in future financial statements[9](index=9&type=chunk)[10](index=10&type=chunk) [Operating Segment Analysis](index=7&type=section&id=Operating%20Segment%20Analysis) This section provides an overview of the Group's reportable segments, including their revenue, results, and asset allocation [Segment Overview](index=7&type=section&id=3.1%20Segment%20Overview) The Group's reportable segments include micro-lending services, property and natural gas, clean energy, and other businesses, primarily conducted through equity investments in investees - The Group's reportable segments include micro-lending services, property and natural gas, clean energy, and other businesses[15](index=15&type=chunk) - Segment information is reported to the chief operating decision-makers (executive directors) for resource allocation and segment performance assessment[13](index=13&type=chunk) [Segment Revenue and Results](index=7&type=section&id=3.2%20Segment%20Revenue%20and%20Results) This year, the clean energy segment recorded revenue but expanded its segment loss, while the property and natural gas segment remained profitable but declined, and other segments shifted from profit to loss Segment Revenue and Results (HK$ '000) | Segment | 2025 Revenue | 2024 Revenue | 2025 Segment Profit/(Loss) | 2024 Segment Profit/(Loss) | | :--- | :--- | :--- | :--- | :--- | | Micro-lending services | – | – | – | – | | Property and natural gas | – | – | 4,219 | 6,541 | | Clean energy | 164 | 1,224 | (8,899) | (33,753) | | Others | – | – | (134) | 52,979 | | Total | 164 | 1,224 | (4,814) | 25,767 | - Clean energy segment revenue decreased from **HK$1,224,000** in 2024 to **HK$164,000** in 2025[14](index=14&type=chunk)[16](index=16&type=chunk) - Clean energy segment loss narrowed from **HK$33,753,000** in 2024 to **HK$8,899,000** in 2025[14](index=14&type=chunk)[16](index=16&type=chunk) - The "Others" segment shifted from a profit of **HK$52,979,000** in 2024 to a loss of **HK$134,000** in 2025[14](index=14&type=chunk)[16](index=16&type=chunk) [Other Segment Information](index=8&type=section&id=3.3%20Other%20Segment%20Information) This year, the total fair value gain/loss on financial assets at fair value through profit or loss was a loss of HK$4,978,000, compared to a gain of HK$24,543,000 last year, with total segment assets significantly decreasing and unallocated assets substantially increasing Fair Value Gain/(Loss) on Financial Assets at Fair Value Through Profit or Loss (HK$ '000) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Micro-lending services | – | – | | Property and natural gas | 4,219 | 6,541 | | Clean energy | (9,063) | (34,977) | | Others | (134) | 52,979 | | Total | (4,978) | 24,543 | Segment Assets (HK$ '000) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Micro-lending services | – | – | | Property and natural gas | 41,132 | 33,508 | | Clean energy | 27,888 | 66,002 | | Others | 13,779 | 89,765 | | Total segment assets | 82,799 | 189,275 | | Unallocated assets | 98,612 | 1,616 | | Consolidated assets | 181,411 | 190,891 | - Total segment assets decreased from **HK$189,275,000** in 2024 to **HK$82,799,000** in 2025, primarily due to reduced assets in the clean energy and other segments[18](index=18&type=chunk) - Unallocated assets significantly increased from **HK$1,616,000** in 2024 to **HK$98,612,000** in 2025[18](index=18&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes on the Group's revenue, other income, finance costs, income tax, components of loss/profit, and dividend policy [Revenue](index=6&type=section&id=4.1%20Revenue) This year's revenue entirely comprised dividend income from financial assets at fair value through profit or loss, which significantly decreased compared to last year Revenue Components (HK$ '000) | Source | 2025 | 2024 | | :--- | :--- | :--- | | Dividend income from financial assets at fair value through profit or loss | 164 | 1,224 | - Dividend income decreased by **86.60%** compared to last year, being one of the primary reasons for the loss this year[26](index=26&type=chunk)[28](index=28&type=chunk) [Other Income](index=9&type=section&id=4.2%20Other%20Income) This year's other income primarily consisted of bank interest income, which significantly increased compared to last year Other Income (HK$ '000) | Source | 2025 | 2024 | | :--- | :--- | :--- | | Bank interest income | 327 | 1 | - Bank interest income increased from **HK$1,000** in 2024 to **HK$327,000** in 2025, representing a **32,600.00%** increase[26](index=26&type=chunk) [Finance Costs](index=9&type=section&id=4.3%20Finance%20Costs) This year's finance costs slightly decreased, primarily comprising interest on borrowings and lease liabilities Finance Costs (HK$ '000) | Component | 2025 | 2024 | | :--- | :--- | :--- | | Interest on borrowings | 800 | 802 | | Interest on lease liabilities | 49 | 90 | | Total | 849 | 892 | [Income Tax Credit](index=10&type=section&id=4.4%20Income%20Tax%20Credit) There was no income tax credit this year as the Group had no assessable profits; Hong Kong profits tax uses a two-tiered rate, while Chinese subsidiaries are taxed at 25% Income Tax Credit (HK$ '000) | Component | 2025 | 2024 | | :--- | :--- | :--- | | Current tax | – | 62 | | Over-provision in prior years | – | (4,200) | | Income tax credit | – | (4,138) | - As the Group had no assessable profits for both years, no provision for Hong Kong profits tax and PRC corporate income tax was made in the consolidated financial statements[21](index=21&type=chunk) - Hong Kong profits tax adopts a two-tiered tax rate system, with the first **HK$2,000,000** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[20](index=20&type=chunk) - The tax rate for PRC subsidiaries remained at **25%** for both years[21](index=21&type=chunk) [Components of Loss/Profit for the Year](index=10&type=section&id=4.5%20Components%20of%20Loss%2FProfit%20for%20the%20Year) This year's loss was primarily influenced by reduced directors' remuneration and staff welfare expenses, alongside a significant decrease in the reversal of impairment loss on other receivables Items Deducted From/(Credited To) Loss/Profit for the Year (HK$ '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Directors' remuneration | 928 | 2,154 | | Total staff welfare expenses | 1,920 | 3,498 | | Auditor's remuneration - audit services | 1,050 | 1,000 | | Auditor's remuneration - non-audit services | 250 | 195 | | Custodian fees | 157 | 156 | | Investment management fees | 115 | 117 | | Reversal of impairment loss on other receivables | (3,677) | (6,722) | - Directors' remuneration decreased from **HK$2,154,000** in 2024 to **HK$928,000** in 2025[22](index=22&type=chunk) - Total staff welfare expenses decreased from **HK$3,498,000** in 2024 to **HK$1,920,000** in 2025[22](index=22&type=chunk) - Reversal of impairment loss on other receivables decreased from **HK$6,722,000** in 2024 to **HK$3,677,000** in 2025[22](index=22&type=chunk) [Dividends](index=11&type=section&id=4.6%20Dividends) For the year ended June 30, 2025, the Company neither paid nor proposed any dividends - No dividends were paid or proposed to ordinary shareholders of the Company for the year ended June 30, 2025[23](index=23&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's overall performance, listed and unlisted investments, future outlook, liquidity, capital structure, and other key operational aspects [Overall Performance Review](index=12&type=section&id=5.1%20Overall%20Performance%20Review) The Group recorded a net loss of HK$8,809,000 this year, primarily due to fair value losses on unlisted investments and a significant decrease in dividend income, although administrative expenses declined - A net loss of **HK$8,809,000** was recorded for the year, compared to a net profit of HK$27,897,000 last year[26](index=26&type=chunk) - The loss was primarily due to a fair value loss of approximately **HK$9,284,000** on unlisted investments at fair value through profit or loss, and a significant **86.60%** decrease in dividend income from unlisted investments to **HK$164,000**[26](index=26&type=chunk)[28](index=28&type=chunk) - Administrative expenses decreased by **6.29%** from **HK$7,589,000** last year to **HK$7,112,000** this year, mainly due to reduced staff costs and directors' remuneration[26](index=26&type=chunk) [Review of Listed Investments](index=12&type=section&id=5.2%20Review%20of%20Listed%20Investments) This year, the listed securities business recorded a loss of HK$7,625,000, compared to a gain of HK$9,924,000 last year; listed securities market value increased at year-end, but no dividend income from listed investments was recorded this year - The listed securities business recorded a loss of **HK$7,625,000** this year, compared to a gain of HK$9,924,000 last year[27](index=27&type=chunk) - As of June 30, 2025, the market value of listed securities increased to **HK$41,132,000** (2024: HK$33,791,000)[27](index=27&type=chunk) - No dividend income from listed investments was recorded this year[27](index=27&type=chunk) - The Company sold shares in Hengding Industrial in December 2024, recording a realized loss of approximately **HK$134,000**, and no longer held the security at year-end[29](index=29&type=chunk) [Review of Unlisted Investments](index=13&type=section&id=5.3%20Review%20of%20Unlisted%20Investments) This year, the unlisted investment portfolio recorded a total loss of HK$10,631,000, mainly due to a significant decrease in dividend income and the absence of last year's one-off fair value gain from the disposal of Jusheng Light Alloy; the Group is gradually exiting the micro-lending industry and continuing to focus on clean energy - The unlisted investment portfolio recorded a total loss of **HK$10,631,000** this year (2024: gain of HK$23,181,000)[30](index=30&type=chunk) - Dividend income from unlisted investments decreased by **86.60%** from **HK$1,224,000** last year to **HK$164,000**[30](index=30&type=chunk) - The fair value of unlisted investments decreased by **20.39%** from **HK$52,339,000** last year to **HK$41,667,000**[31](index=31&type=chunk) - The Group had no new transactions or investment dealings this year, leading to a loss in the absence of investment income[30](index=30&type=chunk) [Unlisted Equity Investment Strategy](index=14&type=section&id=5.3.1%20Unlisted%20Equity%20Investment%20Strategy) The Group will continue to focus on bioenergy investments and plans to gradually exit the micro-lending industry to consolidate resources and maximize shareholder value - Since 2018, the Group has focused on the clean energy sector, making multiple investments, with bioenergy considered carbon-neutral and renewable[32](index=32&type=chunk) - Given concerns about declining interest rates and rising operational risks in the micro-lending industry, the Company has planned to exit its investments in this sector[32](index=32&type=chunk) - In the future, the focus will remain on bioenergy investments, gradually exiting the micro-lending industry to explore new investment areas and maximize shareholder value[33](index=33&type=chunk) [Details of Unlisted Equity Investment Portfolio](index=15&type=section&id=5.3.2%20Details%20of%20Unlisted%20Equity%20Investment%20Portfolio) The unlisted equity investment portfolio is primarily concentrated in clean energy, micro-lending, and guarantee services, with significant unrealized losses in clean energy and no fair value gains from micro-lending investments Unlisted Equity Investment Portfolio (As of June 30, 2025, HK$ '000) | Company Name | Location | Effective Interest | Nature of Business | Investment Cost | Fair Value | Dividends Received/Receivable | Net Assets Attributable to Investment | Percentage of Total Group Assets | Realized Fair Value Gain/(Loss) Recognized in Profit or Loss | Unrealized Fair Value Gain/(Loss) Recognized in Profit or Loss | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Micro-lending services** | | | | | | | | | | | | Harbin Zhongjin Guoxin Micro-lending Co., Ltd. | Harbin, Heilongjiang Province | 30% | Provision of micro-lending and financial advisory services | 36,693 | – | – | – | – | – | – | | Tianjin Binlian Micro-lending Co., Ltd. | Tianjin | 3.3% | Provision of micro-lending and financial advisory services | 12,271 | – | 164 | – | – | – | – | | Nanjing Jiangning Mingyang Rongtong Rural Micro-lending Co., Ltd. | Nanjing, Jiangsu Province | 30% | Provision of micro-lending and financial advisory services | 36,673 | – | – | – | – | – | – | | Subtotal | | | | 85,637 | – | 164 | – | | – | – | | **Guarantee services** | | | | | | | | | | | | Jiangxi Huazhang Hanchen Guarantee Group Co., Ltd. | Nanchang, Jiangxi Province | 1.77% | Provision of financing guarantees | 43,150 | 13,779 | – | 13,779 | 8.76% | – | – | | **Investment and management consulting services** | | | | | | | | | | | | Shenzhen Zhongtou Jinxin Asset Management Co., Ltd. | Shenzhen, Guangdong Province | 30% | Provision of project investment consulting services | 18,350 | – | – | – | – | – | – | | Xi'an Kairong Financial Services Co., Ltd. | Xi'an, Shaanxi Province | 30% | Provision of financial management services | 18,724 | – | – | – | – | – | – | | Subtotal | | | | 37,074 | – | – | – | | – | – | | **Clean energy** | | | | | | | | | | | | Henan Tianguan Energy Biochemical Technology Co., Ltd. | Henan Province | 30% | Production and sale of denatured fuel ethanol, etc. | 230,763 | 6,988 | – | 6,988 | 4.44% | – | 221 | | Hunan Huanan New Energy Co., Ltd. | Hunan Province | 30% | New energy technology development, transfer, and consulting, etc. | 51,200 | – | – | – | – | – | – | | Hainan Keyihuirui Bioenergy Technology Co., Ltd. | Hainan Province | 30% | Bioenergy technology development, transfer, and consulting, etc. | 117,450 | – | – | – | – | – | – | | Henan Zhongxin Petrochemical Oil Sales Co., Ltd. | Henan Province | 30% | Operation of refined petroleum products | 52,084 | 20,096 | – | 20,096 | 12.78% | – | (561) | | Henan Zhongxin Bioenergy Technology Co., Ltd. | Henan Province | 30% | Production and sale of fuel ethanol and related products | 52,084 | 804 | – | 804 | 0.51% | – | (8,723) | | Subtotal | | | | 503,581 | 27,888 | – | 27,888 | | – | (9,063) | | **Total** | | | | 669,442 | 41,667 | 164 | 41,667 | | – | (9,063) | - Within the clean energy investment portfolio, Henan Zhongxin Bioenergy Technology Co., Ltd. recorded an unrealized fair value loss of **HK$8,723,000**[36](index=36&type=chunk) - The fair value of the micro-lending services investment portfolio was zero, with only Tianjin Binlian Micro-lending Co., Ltd. contributing **HK$164,000** in dividend income[34](index=34&type=chunk) [Outlook](index=17&type=section&id=5.4%20Outlook) The Group will continue to focus on China's bioethanol industry, actively monitor global virtual asset market investment opportunities, and establish a robust risk management framework - The Group will continue to focus on China's bioethanol industry[37](index=37&type=chunk) - The Group will also closely monitor investment opportunities in the global virtual asset market, accumulating industry experience and exploring new growth drivers while complying with regulatory requirements[37](index=37&type=chunk) - A comprehensive risk management framework will be established to ensure that any related business expansion aligns with the Company's long-term investment strategy and shareholder interests[37](index=37&type=chunk) [Liquidity, Financial Resources and Gearing Ratio](index=17&type=section&id=5.5%20Liquidity%2C%20Financial%20Resources%20and%20Gearing%20Ratio) The Group's cash and cash equivalents significantly increased, while its current ratio and gearing ratio remained healthy, with no bank borrowings - As of June 30, 2025, the Group's cash and cash equivalents significantly increased to **HK$96,482,000** (2024: HK$19,000)[38](index=38&type=chunk) - The current ratio was approximately **5.11 times** (2024: 4.95 times), and the gearing ratio was approximately **13.33%** (2024: 13.49%)[38](index=38&type=chunk) - The Group had no bank borrowings as of June 30, 2025[39](index=39&type=chunk) [Capital Structure](index=18&type=section&id=5.6%20Capital%20Structure) The Group's shareholders' equity decreased, but the total number of issued shares remained unchanged Capital Structure (As of June 30, 2025) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Shareholders' equity | HK$157,237,000 | HK$165,143,000 | | Total number of issued shares | Approximately 10,971,634,000 shares | Approximately 10,971,634,000 shares | [Exchange Rate Fluctuation Risk](index=18&type=section&id=5.7%20Exchange%20Rate%20Fluctuation%20Risk) The Group's primary business transaction currencies are HKD and RMB, but RMB-denominated transactions are not significant, so the Board considers exchange rate fluctuation risk to be immaterial - HKD and RMB are the primary currencies for the Group's business transactions[42](index=42&type=chunk) - RMB-denominated transactions were not significant this year, and the Board considers the Group's exposure to exchange rate fluctuation risk to be immaterial[42](index=42&type=chunk) [Capital Commitments and Contingent Liabilities](index=18&type=section&id=5.8%20Capital%20Commitments%20and%20Contingent%20Liabilities) The Group had no significant capital commitments or contingent liabilities during the year or at year-end - The Group had no significant capital commitments during the year, nor any significant contingent liabilities as of June 30, 2025[43](index=43&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=5.9%20Employees%20and%20Remuneration%20Policy) The Group's employee count remained stable, total staff costs decreased, and the remuneration policy considers multiple factors - As of June 30, 2025, the Group had **6 employees** (including directors), consistent with last year[44](index=44&type=chunk) - Total staff costs (including directors' remuneration) for the year were **HK$1,920,000** (2024: HK$3,498,000), representing a decrease[44](index=44&type=chunk) - Employee remuneration packages are determined by various factors, including employee experience and performance, market conditions, industry practices, and applicable employment laws[44](index=44&type=chunk) [Material Acquisitions, Disposals and Significant Investments](index=18&type=section&id=5.10%20Material%20Acquisitions%2C%20Disposals%20and%20Significant%20Investments) Aside from the disclosed disposals of listed and unlisted investments, there were no other material acquisitions, disposals, or significant investments this year - Other than the disposals of investments disclosed in the "Review of Listed Investments" and "Review of Unlisted Investments" sections of this announcement, there were no material acquisitions, disposals of subsidiaries, associates, and joint ventures, or significant investments during the year[46](index=46&type=chunk) [Corporate Governance and Audit](index=19&type=section&id=Corporate%20Governance%20and%20Audit) This section covers the Group's audit committee, corporate governance practices, directors' securities transactions, auditor's scope of work, publication of results, and board information [Audit Committee](index=19&type=section&id=6.1%20Audit%20Committee) The Audit Committee is responsible for reviewing and overseeing the Group's financial reporting processes and internal control systems, and has reviewed this year's financial statements - The Audit Committee is primarily responsible for reviewing and overseeing the Group's financial reporting procedures and internal control systems, and providing advice and recommendations to the Board[47](index=47&type=chunk) - The Audit Committee comprises three independent non-executive directors[47](index=47&type=chunk) - The Audit Committee has met with the external auditor to review the accounting principles and practices adopted by the Group and discuss audit and financial reporting matters, including reviewing this announcement and the Group's financial statements for the year[47](index=47&type=chunk) [Corporate Governance](index=19&type=section&id=6.2%20Corporate%20Governance) The Company is committed to maintaining good corporate governance standards; this year saw a deviation from the Code's requirement for separation of Chairman and CEO roles, but compliance was achieved after June 30, 2025, through a change in Chairman - The Company has adopted the principles of the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with the relevant Corporate Governance Code, with one deviation[48](index=48&type=chunk) - This year, Mr. Du Lindong held both the positions of Chairman and Chief Executive Officer, deviating from Code Provision C.2.1 which requires the roles of Chairman and Chief Executive Officer to be separate[48](index=48&type=chunk) - Following the change in Board Chairman effective June 30, 2025, Mr. Liu Xiaodong was appointed to succeed Mr. Du Lindong as Chairman, and the Company has since complied with Code Provision C.2.1 of the Corporate Governance Code[48](index=48&type=chunk) [Directors' Securities Transactions](index=19&type=section&id=6.3%20Directors%27%20Securities%20Transactions) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all directors fully complied with it during the year - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[49](index=49&type=chunk) - Following specific enquiries by the Company, all Directors confirmed that they had fully complied with the Model Code throughout the year[49](index=49&type=chunk) [Auditor's Scope of Work](index=20&type=section&id=6.4%20Auditor%27s%20Scope%20of%20Work) The financial data in this preliminary results announcement has been agreed by the auditor, Rongcheng (Hong Kong) CPA Firm, but their work does not constitute assurance services - The figures in the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and their related notes for the Group for the year ended June 30, 2025, as set out in this preliminary results announcement, have been agreed by the Group's auditor, Rongcheng (Hong Kong) CPA Firm[50](index=50&type=chunk) - The work performed by the auditor 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 HKICPA, and therefore the auditor has not expressed any assurance conclusion on this preliminary results announcement[50](index=50&type=chunk) [Publication of Annual Results on Website](index=20&type=section&id=6.5%20Publication%20of%20Annual%20Results%20on%20Website) This results announcement has been published on the Company's and the Stock Exchange's websites, and the annual report will be dispatched to shareholders and published on the websites as soon as practicable - This results announcement is published on the Company's website (http://www.irasia.com/listco/hk/cfii) and the Stock Exchange's website (www.hkex.com.hk)[51](index=51&type=chunk) - The annual report will be dispatched to shareholders and published on the aforementioned websites as soon as practicable[51](index=51&type=chunk) [Board Information](index=20&type=section&id=6.6%20Board%20Information) This announcement is signed by Mr. Du Lindong, Executive Director and Chief Executive Officer, on behalf of the Board, and lists the Board members as of the announcement date - This announcement is signed by Mr. Du Lindong, Executive Director and Chief Executive Officer of China Financial International Investments Limited, by order of the Board[52](index=52&type=chunk) - As of the date of this announcement, the executive director is Mr. Du Lindong; the non-executive directors are Mr. Liu Xiaodong and Ms. Li Hongxi; and the independent non-executive directors are Mr. Zong Shijian, Mr. Lu Lin, and Mr. Liu Xiaohong[53](index=53&type=chunk)