中國秦發集團有限公司 INTERIM REPORT 中期報告 2025 INTERIM REPORT 2025 中期報告 CHINA QINFA GROUP LIMITED 目錄 China Qinfa Group Limited / 中國秦發集團有限公司 CONTENTS Interim Report 2025 / 二零二五年中期報告 | 2 | CORPORATE INFORMATION | | --- | --- | | | 公司資料 | | 5 | BUSINESS AT A GLANCE | | | 業務一覽 | | 6 | MANAGEMENT DISCUSSION AND ANALYSIS | | | 管理層討論及分析 | | | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | | | 簡明綜合財務報表 | | 27 | CONDENSED CONSOLIDATED STATEMENT OF | | | COMPREHENSIVE INCOME | | | 簡明綜合全面收入表 | | 30 | CONDENSED CONSOLIDATED STATEM ...

Market Trends and Opportunities - The healthcare management group reported a significant market trend towards "quality upgrades" and "structural optimization" in the social hospital sector, facing both unprecedented opportunities and severe challenges[18]. - The company noted that policy incentives continue to be released, with increasing emphasis on specialization, digitization, and high-end development paths[18]. - The healthcare sector is experiencing a shift from homogeneous competition to differentiated development, driven by rising consumer demand for high-end medical services and the integration of internet healthcare with traditional services[18]. - The digital transformation in healthcare is becoming essential, with AI-assisted diagnosis, surgical robots, and electronic medical record systems emerging as core competitive technologies[18]. - Investment logic is shifting from scale expansion to value-based healthcare, with capital favoring specialized chains, emerging specialties, and smart healthcare sectors[18]. - The introduction of DRG/DIP payment reforms and international certification requirements has raised industry entry barriers, while differentiated positioning policies provide space for private hospitals to avoid competition with public hospitals[18]. Company Strategy and Focus - The company is adapting to stricter healthcare cost control measures and increasing competition for talent, alongside the expansion of public hospitals[18]. - The company is focusing on expanding its market presence in central and western regions of China, moving away from coastal concentration[18]. - The management team emphasized the importance of compliance capabilities, technological barriers, and brand effects in attracting investment[18]. - The company is committed to enhancing service quality and efficiency through technological empowerment, expanding service boundaries and innovation space[18]. - The group is focusing on a specialized deep cultivation strategy to enhance competitive advantages in key specialty areas[19]. - The group plans to leverage digital transformation, emphasizing AI, big data, and telemedicine to improve healthcare quality and operational efficiency[19]. - The group aims to strengthen its brand through international certifications and transparent operations, integrating brand building with healthcare quality improvement[19]. - The group is actively participating in public health services and charity initiatives, embedding social responsibility into its development strategy[21]. - The group has submitted 30 new technology and project applications, with 13 new technologies passing ethical review, indicating a commitment to research and development[37]. Financial Performance - The group's consolidated revenue for the six months ended June 30, 2025, was RMB 346.8 million, a decrease of RMB 68.4 million or 16.5% compared to RMB 415.2 million for the same period in 2024[24]. - Outpatient visits totaled 717,563, down 31,158 or 4.2% from 748,721 in the previous year[24]. - Inpatient visits decreased to 22,811, a reduction of 6,407 or 21.9% from 29,218 in the previous year[24]. - The average outpatient cost increased by 3.3% to RMB 310.4, while the average inpatient cost decreased by 18.9% to RMB 5,269.5[27]. - The group reported a 15.8% decrease in pharmaceutical sales revenue, totaling RMB 138.8 million compared to RMB 164.7 million in the previous year[38]. - Total revenue decreased by 16.5% from RMB 415.2 million in the six months ended June 30, 2024, to RMB 346.8 million in the six months ended June 30, 2025[41]. - Inpatient medical service revenue fell by 36.7% from RMB 189.9 million to RMB 120.2 million, primarily due to a decrease in inpatient visits and average costs[42]. - Outpatient medical service revenue slightly decreased by 1.0% from RMB 224.9 million to RMB 222.7 million, attributed to a reduction in outpatient visits[42]. - Gross profit decreased by 36.1% from RMB 71.6 million to RMB 45.8 million, with gross margin declining from 17.3% to 13.2%[45]. - Administrative expenses increased by 8.3% from RMB 38.7 million to RMB 41.9 million, mainly due to higher employee benefits and depreciation[47]. - Net financial costs rose from RMB 3.7 million to RMB 4.2 million, primarily due to increased foreign exchange losses[48]. - Income tax expense decreased from RMB 7.8 million to a tax credit of RMB 0.1 million, reflecting a reduction in pre-tax profits[49]. - The company reported a net loss of RMB 0.7 million for the six months ended June 30, 2025, compared to a profit of RMB 20.3 million in the same period of 2024, resulting in a net loss margin of -0.2%[50]. Assets and Liabilities - Current assets increased by 142.0% from RMB 4.6 million to RMB 11.1 million, mainly due to net cash generated from operating activities exceeding cash used in financing activities[52]. - Inventory decreased by 54.6% from RMB 39.6 million to RMB 18.0 million, primarily due to the consumption of stock accumulated for the Spring Festival[53]. - Trade payables decreased from RMB 100.7 million as of December 31, 2024, to RMB 96.0 million as of June 30, 2025, a reduction of RMB 4.7 million due to increased payments during the reporting period[57]. - Accrued expenses and other payables decreased from RMB 107.8 million as of December 31, 2024, to RMB 93.3 million as of June 30, 2025, a decrease of RMB 14.5 million primarily due to increased employee compensation and benefits payments[58]. - The company's debt-to-asset ratio as of June 30, 2025, was 37.3%, down from 40.6% as of December 31, 2024[68]. - The company had no contingent liabilities or guarantees that would significantly impact its financial position or operations as of June 30, 2025[59]. - Lease liabilities related to leased properties amounted to approximately RMB 1.1 million as of June 30, 2025[60]. Cash Flow and Financing Activities - Net cash generated from operating activities increased from RMB 57.3 million for the six months ended June 30, 2024, to RMB 80.7 million for the six months ended June 30, 2025, mainly due to the settlement of receivables from the medical insurance bureau[63]. - Net cash flow from investing activities improved from an outflow of RMB 23.0 million for the six months ended June 30, 2024, to an inflow of RMB 9.0 million for the six months ended June 30, 2025, primarily due to proceeds from the sale of land use rights amounting to RMB 19.1 million[64]. - Net cash used in financing activities increased from RMB 14.0 million for the six months ended June 30, 2024, to RMB 61.3 million for the six months ended June 30, 2025, mainly due to repayment of bank loans of RMB 32.6 million and increased purchases of existing shares under the restricted share unit plan by approximately RMB 17.4 million[65]. - The net increase in cash and cash equivalents was RMB 28.3 million for the six months ended June 30, 2025, compared to RMB 20.4 million for the same period in 2024[62]. - The company did not use any derivative financial instruments to hedge against foreign exchange risks during the reporting period, managing such risks through close monitoring of exchange rate fluctuations[67]. Shareholder Information and Stock Options - Major shareholders include Cao Junming and Sun Mingyan, each holding 384,383,500 shares, representing 64.06% of the total shares[76]. - Rubrical Investment holds 73,595,050 shares, accounting for 12.27% of the total shares[76]. - Sunny Rock has a stake of 310,788,450 shares, which is 51.80% of the total shares[76]. - The total number of shares issued by the company is 600,000,000 as of June 30, 2025[76]. - The stock option plan was approved on June 17, 2020, and is valid for ten years[82]. - The maximum number of shares that can be issued under the stock option plan cannot exceed 30% of the company's issued share capital[85]. - Each participant in the stock option plan is limited to a maximum of 1% of the company's issued share capital in any 12-month period[88]. - Any grant of stock options to connected persons must be approved by independent non-executive directors[89]. - The stock option plan aims to incentivize employees and directors for their contributions to the company[83]. - The company has established a broad participant base for the stock option plan to enhance overall performance and share price[83]. - The total number of shares that may be issued under the share option plan shall not exceed 10% of the shares already issued on the date of listing, amounting to 60,000,000 shares[90]. - The company may seek shareholder approval to expand the general plan limit, but the total number of shares issued under the share option plan cannot exceed 10% of the issued shares as of the approval date[90]. - No share options have been granted, agreed to be granted, exercised, cancelled, or lapsed under the share option plan as of the date of this interim report[94]. Restricted Share Unit Plans - The purpose of the 2022 Restricted Share Unit Plan is to recognize and incentivize participants for their contributions and to attract suitable employees for further development of the group[96]. - Participants in the 2022 Restricted Share Unit Plan include employees or senior officers of the group, including executive, non-executive, and independent non-executive directors[100]. - The total value of shares granted under the plan must exceed HKD 5 million or any higher amount specified by the exchange[97]. - The plan will remain effective for a period of ten years from August 22, 2022, or until an earlier termination date determined by the board or committee[102]. - Unvested restricted share units will be forfeited and automatically cancelled upon certain events, including termination of employment or service[104]. - The company must issue a circular to shareholders regarding any grant of share options to major shareholders or independent non-executive directors, requiring them to abstain from voting[92]. - The exercise price of shares under the share option plan will be determined by the board but shall not be less than HKD 1.00 per option granted[93]. - The total number of existing shares to be purchased under the 2023 Restricted Share Unit Plan will not exceed 5% of the company's issued share capital as of May 9, 2023, which is a maximum of 30,000,000 shares[122]. - The maximum total number of shares involved in granting rewards to selected participants cannot exceed 1% of the company's issued share capital as of May 9, 2023[122]. - As of the date of this interim report, no Restricted Share Units have been granted under the 2023 Restricted Share Unit Plan[123]. - The 2023 Restricted Share Unit Plan was adopted on May 9, 2023, to recognize and incentivize participants for their contributions[110]. - The plan will remain effective for a period of ten years from May 9, 2023, or until an earlier termination date determined by the board or committee[116]. - The committee managing the 2023 Restricted Share Unit Plan has the discretion to grant conditional rights to shares or equivalent cash to selected participants at any time during the plan's term[115]. - Participants in the 2023 Restricted Share Unit Plan include employees of any entity or hospital acquired by the group from the adoption date until the plan's expiration[114]. - The company is prohibited from granting rewards during the period of one month prior to the announcement of financial performance[120]. - The trustee may not hold more than 10% of the total issued shares at any time[122]. - The company will have the right to instruct the trustee to repurchase shares from participants under certain conditions[118]. Global Offering and Utilization of Proceeds - The company raised approximately HKD 264.8 million by issuing 150,000,000 shares at HKD 2.10 per share during the global offering[126]. - As of June 30, 2025, the company has utilized HKD 195.6 million of the net proceeds from the global offering, leaving HKD 69.2 million unutilized[127]. - 29.5% of the net proceeds (HKD 78.0 million) is allocated for the expansion of the company's first-phase building, which is fully utilized[127]. - 26.1% of the net proceeds (HKD 69.2 million) is earmarked for acquiring hospitals to expand the company's business, with no funds utilized yet[127]. Employee Information - Employee costs for the six months ended June 30, 2025, amounted to approximately RMB 107.2 million, a decrease from RMB 118.1 million for the same period in 2024[143]. - The total number of employees as of June 30, 2025, was approximately 1,844, down from 1,953 a year earlier[143]. - The company did not recommend any interim dividend for the six months ended June 30, 2025[142]. - No major investments or acquisitions were made during the reporting period[133]. - The company repurchased a total of 8,962,000 shares at a total cost of approximately HKD 18.90 million during February 2025[132]. - As of June 30, 2025, the unutilized net proceeds from the global offering were deposited as short-term demand deposits[129]. Summary of Financial Metrics - Revenue for the six months ended June 30, 2025, was RMB 346,820,000, a decrease of 16.5% compared to RMB 415,178,000 for the same period in 2024[151]. - Gross profit for the same period was RMB 45,801,000, down 36.1% from RMB 71,621,000 in 2024[151]. - Operating profit decreased significantly to RMB 3,489,000 from RMB 31,833,000, reflecting a decline of 89.0%[151]. - The net loss for the period was RMB 676,000, compared to a profit of RMB 20,263,000 in the previous year[151]. - Total assets as of June 30, 2025, were RMB 894,729,000, down from RMB 974,003,000 at the end of 2024, representing a decrease of 8.1%[154]. - Current assets decreased to RMB 335,963,000 from RMB 384,981,000, a decline of 12.7%[154]. - Cash and cash equivalents increased to RMB 286,780,000 from RMB 258,498,000, an increase of 10.9%[154]. - Total liabilities decreased to RMB 333,918,000 from RMB 395,080,000, a reduction of 15.4%[156]. - The company’s equity attributable to owners decreased to RMB 554,896,000 from RMB 573,005,000, a decline of 3.2%[154]. - The company reported a basic and diluted loss per share of RMB (0.00), compared to earnings per share of RMB 0.04 in the previous year[151]. - For the six months ended June 30, 2025, the operating cash flow generated was RMB 82,485,000, an increase of 21.5% compared to RMB 67,839,000 for the same period in 2024[162]. - The net cash generated from operating activities for the first half of 2025 was RMB 80,653,000, up 40.5% from RMB 57,341,000 in the prior year[162]. - Total revenue for the six months ended June 30, 2025, was RMB 346,820,000, a decrease of 16.5% from RMB 415,178,000 in the same period of 2024[180]. - Revenue from treatment and comprehensive medical services was RMB 204,171,000, down 18.3% from RMB 250,041,000 in the previous year[180]. - The estimated settlement rate for inpatient service revenue was recorded at 86.00%, compared to 93.36% for the year ended December 31, 2024[180]. - Cash and cash equivalents increased by RMB 28,329,000, compared to an increase of RMB 20,404,000 in the same period last year[162]. - The total cash and cash equivalents at the end of the reporting period was RMB 286,780,000, up from RMB 260,203,000 at the end of June 2024[162]. - The company incurred net cash used in financing activities of RMB 61,346,000 for the first half of 2025, compared to RMB 13,962,000 in the same period of 2024[162]. - The company’s borrowings from banks and other financial institutions amounted to RMB 78,400,000, a decrease from RMB 111,000,000 in the previous year[162]. - The company reported a nominal amount of approximately RMB 69,270,000 for inpatient service revenue, expected to be confirmed by the medical insurance bureau in 2026[180]. - The actual final settlement rate for inpatient service revenue in 2024 was 90.46%, a decrease from 98.04% in 2023, resulting in a revenue reduction of RMB 5,037,000 for the six months ending June 30, 2025[181]. - Medical compensation losses amounted to RMB 801,000 for the six months ending June 30, 2025, down from RMB 1,273,000 in the same period of 2024[183]. - Total financial costs for the six months ending June 30, 2025, were RMB 4,198,000, an increase from RMB 3,746,000 in the same period of 2024[184]. - The company reported a loss attributable to owners of RMB 673,000 for the six months ending June 30, 2025, compared to a profit of RMB 20,042,000 in the same period of 2024[192]. - The company did not declare an interim dividend for the six months ending June 30, 2025, consistent with the previous year[194]. - The net book value of property, plant, and equipment as of June 30, 2025, was RMB 496,591,000, down from RMB 525,001,000 at the end of 2024[196]. - The net book value of right-of-use assets as of June 30, 2025, was RMB 54,490,000, unchanged from

Financial Performance - The company reported a revenue of HK$1.2 billion for the last quarter, representing a year-over-year increase of 15%[12]. - The company expects revenue guidance for the next quarter to be between HK$1.3 billion and HK$1.5 billion, indicating a potential growth of 8% to 25%[12]. - The Group achieved total revenue of RMB 1,693.6 million during the Reporting Period, representing a 10.0% increase from RMB 1,539.5 million in the corresponding period of 2024[80]. - The Group recorded an increase of 7.4% in revenue from oil and gas pipes to RMB1,078.7 million, compared to RMB1,004.4 million in the corresponding period of 2024[82]. - Revenue from new energy pipes and special seamless steel pipes increased by 14.9% to RMB614.9 million, up from RMB535.1 million in the same period last year[82]. - Domestic sales revenue grew by 20.2% to RMB1,475.5 million, compared to RMB1,228.0 million in the corresponding period of 2024, attributed to competitive advantages in sales and services[87]. - Overseas sales decreased by 30.0% to RMB218.1 million, down from RMB311.5 million in the same period last year, due to geopolitical tensions and economic policy shifts[89]. - The Group's total gross profit was RMB152.7 million, an increase of RMB28.2 million from RMB124.5 million for the corresponding period of 2024, with a gross profit margin of 9.0%[93]. - The Group's loss narrowed significantly by 78.5% to RMB15.0 million, compared to a loss of RMB69.7 million for the corresponding period of 2024[105]. - The Group reported an adjusted net loss of RMB (8.9) million for the six months ended 30 June 2025, a significant improvement from RMB (55.1) million for the same period in 2024, resulting in an adjusted net loss margin of (0.5%) compared to (3.6%) in 2024[111]. Market Expansion and Strategy - User data showed a growth in active users to 2.5 million, up 20% compared to the previous quarter[12]. - New product launches are anticipated to contribute an additional HK$300 million in revenue over the next fiscal year[12]. - Market expansion plans include entering two new regions in Southeast Asia by Q3 2024, projected to increase market share by 10%[12]. - The Group's strategy aligns with the National Energy Administration's target of producing 10 million tons of hydrogen by 2025, driving demand for special pipes[64]. - The establishment of the Dammam production base in Saudi Arabia is expected to enhance international market penetration and strengthen global brand influence[71]. - The Group is focusing on deepening market expansion in domestic shale gas blocks and offshore oil and gas markets while ensuring timely operations at the Dammam base[71]. Research and Development - The company is investing HK$50 million in R&D for new technologies aimed at enhancing product efficiency[12]. - The Group is committed to developing new products such as economical coal pipes and hydrogen transportation pipes, establishing long-term cooperation with premium domestic and international customers[21]. - The Group's technology R&D has led to breakthroughs in hydrogen/carbon dioxide corrosion-resistant pipes and hydrogen transmission line pipes[69]. - The industry intensified R&D efforts on pipes characterized by high strength, high toughness, long service life, and high precision for energy and material savings[38]. Operational Efficiency and Cost Management - The company has set a target to reduce operational costs by 5% through efficiency improvements in the next fiscal year[12]. - The average profit margin of the industry remained relatively low, pressured by intensified homogeneous competition in low-end products and fluctuations in raw material prices[29]. - The Group's operational efficiency optimization initiative will focus on process innovation and labor efficiency improvement to achieve profitability for conventional products[72]. - The new intelligent tubing production line increased production efficiency by 35% and reduced required manpower by 30%[60]. Environmental and Sustainability Initiatives - The Group received an "A" ESG rating from China Securities Index (CSI) and Wind, ranking 14th within the energy sector, indicating strengthened core competitiveness in green development[49]. - Key energy-saving projects during the reporting period included hydraulic station retrofits and photovoltaic design retrofits, effectively reducing electricity consumption and CO2 emissions[52]. - The Group is committed to reducing unit product carbon emissions to meet EU Carbon Border Adjustment Mechanism requirements through green power substitution technologies[75]. - The Group's focus on energy-saving renovations has not only lowered operating costs but also strengthened its environmental performance[55]. Shareholder and Corporate Governance - The board has approved a dividend payout of HK$0.10 per share, reflecting a commitment to returning value to shareholders[12]. - The Board does not recommend the payment of interim dividends for the reporting period[129]. - The company has complied with all code provisions set out in part 2 of the Corporate Governance Code during the reporting period[137]. - The total number of issued Shares as of June 30, 2025, is 1,505,868,000[3]. Employee and Talent Development - The Group had a total of 1,934 employees as of 30 June 2025, with total staff costs amounting to RMB 131.5 million, compared to RMB 119.1 million in the same period of 2024[120]. - The Group is enhancing talent development through practical training linked to new production line projects, improving the skills of frontline operators[53]. Financial Position and Capital Expenditure - Capital expenditure during the reporting period was RMB 505.8 million, a substantial increase from RMB 158.4 million in the corresponding period of 2024, primarily due to the Phase Two Expansion[112]. - As of 30 June 2025, the Group's cash at bank and on hand amounted to RMB 355.5 million, down from RMB 412.1 million as of 31 December 2024[114]. - The Group's interest-bearing borrowings increased to RMB 2,522.9 million as of 30 June 2025, up from RMB 2,212.6 million at the end of 2024, with long-term borrowings rising to RMB 1,395.6 million[117]. - The gearing ratio increased to 166.1% as of 30 June 2025, up 29.2 percentage points from 136.9% at the end of 2024, attributed to increased borrowings and decreased equity due to losses[118]. - The current ratio improved from 1.02 as of 31 December 2024 to 1.15 as of 30 June 2025, indicating better short-term financial health[119].

(股份代號: 06963) （於中華人民共和國註冊成立的股份有限公司） 中期報告 陽光保險集團股份有限公 司 中期報告 2025 陽光保險集團股份有限公司 | 2025 年中期報告 01 | 釋義 | 2 | | --- | --- | | 關於我們 | | | 公司資料 | 7 | | 業績摘要 | 9 | | 管理層討論與分析 | | | 業務概覽 | 11 | | 業績分析 | 21 | | 專項分析 | 44 | | 重要事項 | 47 | | 未來展望 | 48 | | 內含價值 | 50 | | 其他資料 | 57 | | 財務報表及其他 | | | 獨立審閱報告 | 71 | | 合併財務報表及附註 | 72 | 02 釋義 釋義 「公司章程」或「章程」 指 《陽光保險集團股份有限公司章程》 「董事會」 指 本公司董事會 「監事會」 指 本公司監事會 「《企業管治守則》」 指 上市規則附錄C1所載的企業管治守則 「中國銀保監會」 指 中國銀行保險監督管理委員會，中國銀監會與中國保監會按國務 院於2018年3月24日發佈的《國務院關於機構設置的通知》（國發 [2018]6號）合併成為的監管機構，以 ...

香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）的特色 GEM之定位，乃為中小型公司提供一個上市之市場，此等公司相比起其他在聯交所上 市之公司帶有較高投資風險。有意投資之人士應了解投資於該等公司之潛在風險，並 應經過審慎周詳之考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較於聯交所主板買賣 之證券承受較大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之 市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 本報告之資料乃遵照GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關西安 海天天綫科技股份有限公司（「本公司」）之資料，各本公司董事（「董事」）願就本報告之 資料共同及個別地承擔全部責任。各董事在作出一切合理查詢後，確認就其所知及所 信，本報告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成分，且無遺漏任 何事實，足以令本報告或其所載任何陳述產生誤導。 1 西安海天天綫科技股份有限公司 | 摘要 ...

融心砥礪 篤定前行 Z:\09. IR\166335 Ronshine China IR25\Cover\Ronshine China IR25_FullCover 目錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 4 | | 業務回顧及展望 | 5 | | 管理層討論及分析 | 11 | | 企業管治及其他資料 | 27 | | 簡明合併收益表 | 33 | | 簡明合併全面收益表 | 34 | | 簡明合併資產負債表 | 35 | | 簡明合併權益變動表 | 37 | | 簡明合併現金流量表 | 39 | | 簡明合併財務報表附註 | 41 | 3 融信中國控股有限公司 二零二五年中期報告 融信中國控股有限公司 二零二五年中期報告 2 公司資料 董事會 執行董事 歐宗洪先生 （主席兼行政總裁） 余麗娟女士 曾飛燕女士 吳建興先生 非執行董事 李樹培先生 獨立非執行董事 任煜男先生 阮偉鋒先生 馮東成先生 （於二零二五年三月七日獲委任） 審核委員會 馮東成先生 （主席）（於二零二五年三月七日獲委任） 任煜男先生 阮偉鋒先生 薪酬委員會 任煜男先生 （主席） 馮東成先生 （於二零二 ...

中期報告 2025 (於開曼群島註冊成立的有限公司) 股份代號: 6128 美國紐交所股份代號: GRFX 目錄 2 財務摘要 3 公司資料 4 未經審核中期簡明綜合損益表 5 未經審核中期簡明綜合全面收益表 6 未經審核中期簡明綜合財務狀況表 8 未經審核中期簡明綜合權益變動表 10 未經審核中期簡明綜合現金流量表 11 未經審核中期簡明綜合財務報表附註 34 管理層討論與分析 41 其他資料 財務摘要 財務摘要 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | 業績 | 二零二五年 | 二零二四年 | 變動 | | | 千港元 | 千港元 | | | 收入 | 76,835 | 93,742 | (18)% | | 石墨烯產品 | 48,389 | 61,489 | (21)% | | 景觀設計 | 28,446 | 32,253 | (12)% | | 經調整分部EBITDA* | 9,525 | 4,682 | 103% | | 石墨烯產品 | 10,563 | 7,374 | 43% | | 景觀設計 | (1,038) | (2,692) | (6 ...

[Company Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Company Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99) This section details the basic company information for Hong Kong Entertainment International Holdings Limited, covering governance, key personnel, and identifiers - Executive Directors: Mr. Wang Yun, Mr. Zou Yonggang[6](index=6&type=chunk) - Independent Non-executive Directors: Mr. Wong Shui Chi, Mr. Wu Chi King, Ms. Wan So Ying[6](index=6&type=chunk) - Company Stock Code: **8291**[7](index=7&type=chunk) [Financial Highlights](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Financial Highlights](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's revenue for the six months ended June 30, 2025, decreased by 36.0% to approximately RMB 24.4 million, while loss attributable to owners significantly narrowed to RMB 0.1 million Financial Highlights for H1 2025 | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 24.4 | 38.1 | -36.0% | | Loss Attributable to Owners | 0.1 | 11.1 | -99.1% | | Total Cash and Bank Balances | 3.6 | 7.1 (2024年12月31日) | -49.3% | | Gearing Ratio | 82.6% | 60.0% (2024年12月31日) | +22.6% | - The Board does not recommend an interim dividend for the six months ended June 30, 2025 (2024: nil)[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=7&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=7&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group's loss for the period significantly narrowed to RMB 0.17 million, driven by a net gain in other income and reduced operating expenses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand) | Metric | H1 2025 | H1 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 24,396 | 38,080 | -36.0% | | Cost of Sales | (23,279) | (37,284) | -37.5% | | Gross Profit | 1,117 | 796 | +40.3% | | Net Other Income / (Loss) | 2,150 | (5,516) | N/A (Turned from loss to gain) | | Selling Expenses | (93) | (770) | -87.9% | | Administrative and Other Expenses | (2,477) | (3,984) | -37.8% | | Finance Costs | (867) | (1,659) | -47.8% | | Loss Before Income Tax | (170) | (11,133) | -98.5% | | Loss for the Period | (170) | (11,133) | -98.5% | | Loss Attributable to Owners for the Period | (147) | (11,133) | -98.7% | | Basic and Diluted Loss Per Share (RMB cents) | (0.09) | (6.96) | -98.7% | [Unaudited Condensed Consolidated Statement of Financial Position](index=9&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) [Unaudited Condensed Consolidated Statement of Financial Position](index=9&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's current and non-current assets decreased, leading to a slight increase in net current liabilities and net liabilities, further expanding the capital deficit Condensed Consolidated Statement of Financial Position (RMB thousand) | Metric | As of June 30, 2025 | As of Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 1,718 | 2,084 | -17.5% | | Current Assets | 32,168 | 44,614 | -27.9% | | Current Liabilities | 81,681 | 93,723 | -12.8% | | Net Current Liabilities | (49,513) | (49,109) | +0.8% (负债增加) | | Net Liabilities | (94,368) | (93,598) | +0.8% (负债增加) | | Equity Attributable to Owners | (94,305) | (93,558) | +0.8% (亏损增加) | | Capital Deficit | (94,368) | (93,598) | +0.8% (亏绌增加) | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=11&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=11&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Equity attributable to owners decreased due to loss for the period and exchange differences, partially offset by reclassification from share option reserve Condensed Consolidated Statement of Changes in Equity (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the Period | (170) | (11,133) | | Exchange Differences on Translation of Foreign Operations | (600) | 492 | | Total Comprehensive Expenses for the Period | (770) | (10,648) | | Lapse of Share Options | (1,266) (从购股权储备扣减并重新分类至累计亏损) | (479) (从购股权储备扣减并重新分类至累计亏损) | | Equity Attributable to Owners as of Period End | (94,305) | (97,983) | [Unaudited Condensed Consolidated Statement of Cash Flows](index=12&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) [Unaudited Condensed Consolidated Statement of Cash Flows](index=12&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The Group's cash and cash equivalents decreased by RMB 0.471 million, primarily due to cash outflows from operating and financing activities Condensed Consolidated Statement of Cash Flows (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (1,345) | (14,409) | | Net Cash From Investing Activities | 1,741 | 3,455 | | Net Cash Used in Financing Activities | (867) | (1,659) | | Net Decrease in Cash and Cash Equivalents | (471) | (12,613) | | Cash and Cash Equivalents at Period End | 3,565 | 7,999 | [Notes to the Unaudited Condensed Consolidated Interim Financial Information](index=13&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [1. General Information and Basis of Preparation](index=13&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99%E5%8F%8A%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This section outlines the company's registration, principal activities, functional currency, and the basis of preparing interim financial information, highlighting going concern uncertainties and mitigation plans - The company was incorporated in the Cayman Islands, with shares listed on GEM of the Hong Kong Stock Exchange since **July 18, 2017**[15](index=15&type=chunk)[16](index=16&type=chunk) - The Group primarily engages in (i) manufacturing and selling tinplate and tinplate packaging products in China; and (ii) product repackaging and sales in Hong Kong[15](index=15&type=chunk) - For the six months ended June 30, 2025, the Group incurred a net loss of approximately **RMB 0.17 million**, with net current liabilities and net liabilities of approximately **RMB 49.513 million** and **RMB 94.368 million** respectively, indicating significant going concern uncertainties[19](index=19&type=chunk) - To address going concern uncertainties, the Group plans to utilize unutilized bank facilities (**RMB 52 million**), secure funding from former directors, seek other financing, and implement cost control measures[21](index=21&type=chunk) [2. Revenue, Other Income / (Loss) Net, and Segment Information](index=15&type=section&id=2.%20%E6%94%B6%E7%9B%8A%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E4%BA%8F%E6%90%8D%EF%BC%89%E5%87%80%E9%A1%8D%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's revenue, primarily from China tin business and Hong Kong product repackaging, decreased by 36.0%, with net other income turning profitable due to financial assets Revenue and Net Other Income / (Loss) (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue from Sales of Tinplate Packaging Products and Tinplate | 20,403 | 38,080 | | Revenue from Product Repackaging and Sales | 3,993 | – | | **Total Revenue** | **24,396** | **38,080** | | Realized and Unrealized Fair Value Gains / (Losses) on Financial Assets at FVTPL | 2,146 | (5,571) | | Gain on Disposal of Property, Plant and Equipment | 4 | – | | Gain on Disposal of a Subsidiary | – | 55 | | **Net Other Income / (Loss)** | **2,150** | **(5,516)** | - The Group's chief operating decision maker reviews overall financial performance, thus no segment information is reported[25](index=25&type=chunk) - Revenue from China (excluding Hong Kong) was **RMB 20,403 thousand** (2024: RMB 38,080 thousand), and from Hong Kong, China was **RMB 3,993 thousand** (2024: nil)[26](index=26&type=chunk) [3. Finance Costs](index=17&type=section&id=3.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) The Group's finance costs, mainly interest on borrowings, significantly decreased by 47.8% for the six months ended June 30, 2025 Finance Costs (RMB thousand) | Metric | H1 2025 | H1 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Interest Expense on Borrowings | 867 | 1,659 | -47.8% | [4. Income Tax](index=17&type=section&id=4.%20%E6%89%80%E5%BE%97%E7%A8%85) No income tax provision was made in Hong Kong due to no taxable profits, and in China due to tax losses incurred by subsidiaries - No Hong Kong profits tax provision was made for the six months ended June 30, 2025 and 2024, as the Group had no taxable profits in Hong Kong[32](index=32&type=chunk) - No China corporate income tax provision was made for the six months ended June 30, 2025 and 2024, as the Group's PRC subsidiaries incurred tax losses in China[32](index=32&type=chunk) [5. Loss Before Income Tax](index=17&type=section&id=5.%20%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E4%BA%8F%E6%90%8D) This section details key deductions from loss before income tax, including inventory costs and depreciation of property, plant, and equipment, all showing decreases Deductions from Loss Before Income Tax (RMB thousand) | Metric | H1 2025 | H1 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Cost of Inventories Recognized as Expense | 23,279 | 37,284 | -37.5% | | Depreciation of Property, Plant and Equipment | 595 | 1,948 | -69.5% | | Depreciation of Right-of-use Assets | – | 12 | -100% | [6. Dividends](index=18&type=section&id=6.%20%E8%82%A1%E6%81%AF) No dividends were paid or proposed for the six months ended June 30, 2025 - No dividends were paid or proposed for the six months ended June 30, 2025, and no dividends have been proposed since the end of the reporting period (2024: nil)[35](index=35&type=chunk) [7. Loss Per Share](index=18&type=section&id=7.%20%E6%AF%8F%E8%82%A1%E4%BA%8F%E6%90%8D) The Group's basic and diluted loss per share was RMB 0.09 cents, a significant reduction from the prior year, with basic and diluted losses being identical Loss Per Share (RMB cents) | Metric | H1 2025 | H1 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (0.09) | (6.96) | -98.7% | - The weighted average number of ordinary shares in issue was **160,000,000** shares[36](index=36&type=chunk) [8. Property, Plant and Equipment](index=18&type=section&id=8.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) The Group acquired RMB 249,000 in property, plant, and equipment and recognized a gain of RMB 4,000 from asset disposals during the period - For the six months ended June 30, 2025, the Group acquired property, plant and equipment of **RMB 249 thousand** (2024: RMB 100 thousand)[37](index=37&type=chunk) - Proceeds from disposal of property, plant and equipment were approximately **RMB 24 thousand**, with a recognized gain of approximately **RMB 4 thousand**[37](index=37&type=chunk) [9. Inventories](index=18&type=section&id=9.%20%E5%AD%98%E8%B2%A8) As of June 30, 2025, the Group's total inventories decreased by 31.8% to RMB 5,810 thousand, mainly in raw materials and work-in-progress Inventories Composition (RMB thousand) | Metric | As of June 30, 2025 | As of Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Raw Materials | 3,110 | 5,319 | -41.5% | | Work-in-progress | 54 | 182 | -70.3% | | Finished Goods | 2,646 | 3,025 | -12.5% | | **Total Inventories** | **5,810** | **8,526** | **-31.8%** | [10. Trade and Other Receivables](index=19&type=section&id=10.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Net trade receivables significantly decreased by 61.8% to RMB 5,587 thousand, primarily due to reduced receivables from customer contracts, with a typical credit period of 180 days Trade and Other Receivables (RMB thousand) | Metric | As of June 30, 2025 | As of Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables Arising from Customer Contracts | 13,797 | 22,850 | -39.6% | | Less: Provision for Expected Credit Losses | (8,210) | (8,210) | 0% | | **Net Trade Receivables** | **5,587** | **14,640** | **-61.8%** | - The general credit period ranges up to **180 days**[39](index=39&type=chunk) [11. Financial Assets at Fair Value Through Profit or Loss](index=20&type=section&id=11.%20%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) The Group's financial assets at fair value through profit or loss, primarily Hong Kong-listed equity securities, increased to RMB 12,716 thousand as of June 30, 2025 Financial Assets at Fair Value Through Profit or Loss (RMB thousand) | Metric | As of June 30, 2025 | As of Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong-listed Equity Securities | 12,716 | 9,541 | +33.3% | [12. Trade and Other Payables](index=20&type=section&id=12.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) Total trade and other payables decreased by 33.6% to RMB 35,212 thousand, with bills payable eliminated and a typical supplier credit period of 90 days Trade and Other Payables (RMB thousand) | Metric | As of June 30, 2025 | As of Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 35,212 | 43,009 | -18.1% | | Bills Payable | – | 9,984 | -100% | | **Total** | **35,212** | **52,993** | **-33.6%** | - The credit period granted by suppliers is normally **90 days**[41](index=41&type=chunk) [13. Borrowings](index=21&type=section&id=13.%20%E5%80%9F%E6%AC%BE) Total borrowings remained at RMB 74,573 thousand, comprising secured bank loans and unsecured loans, with RMB 52,000 thousand in unutilized bank facilities Borrowings Composition (RMB thousand) | Metric | As of June 30, 2025 | As of Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Secured Bank Borrowings (Current Liabilities) | 28,000 | 28,000 | 0% | | Unsecured Borrowings (Non-current Liabilities) | 46,573 | 46,573 | 0% | | **Total Borrowings** | **74,573** | **74,573** | **0%** | - Unsecured borrowings of **RMB 46.573 million** are amounts due to former directors, interest-free, with repayment extended to **June 30, 2027**[43](index=43&type=chunk) - Unutilized bank facilities amount to **RMB 52 million**, valid until **September 2, 2027**[44](index=44&type=chunk) [14. Share Capital](index=22&type=section&id=14.%20%E8%82%A1%E6%9C%AC) The company's authorized and issued share capital remained unchanged during the reporting period Share Capital Information | Metric | As of June 30, 2025 (thousand shares) | As of Dec 31, 2024 (thousand shares) | | :--- | :--- | :--- | | Authorized Ordinary Shares (HKD 0.20 par value per share) | 500,000 | 500,000 | | Issued and Fully Paid Ordinary Shares (HKD 0.20 par value per share) | 160,000 | 160,000 | [15. Share Option Scheme](index=22&type=section&id=15.%20%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company's share option scheme aims to attract and incentivize participants, with unexercised options significantly reduced to 2,519,352 due to expirations - The share option scheme was adopted on **June 23, 2017**, for a ten-year term, aiming to attract, retain, and incentivize eligible participants[46](index=46&type=chunk) - As of June 30, 2025, the number of outstanding share options was **2,519,352** (December 31, 2024: 10,775,352)[49](index=49&type=chunk) - For the six months ended June 30, 2025, **8,256,000** share options lapsed, resulting in **RMB 1.266 million** being reclassified from the share option reserve to accumulated losses[52](index=52&type=chunk) - No share options were granted by the company for the six months ended June 30, 2025 and 2024[53](index=53&type=chunk) [16. Fair Value Measurement](index=26&type=section&id=16.%20%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F) The Group's financial assets measured at fair value, primarily Hong Kong-listed equity securities, are valued using Level 1 inputs from active market quotes - Fair value measurement inputs are categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[57](index=57&type=chunk) - Financial assets at fair value through profit or loss (Hong Kong-listed equity securities) are measured using Level 1 inputs (quoted bid prices on the Stock Exchange), amounting to **RMB 12,716 thousand** as of June 30, 2025[59](index=59&type=chunk) [17. Events After the Reporting Period](index=28&type=section&id=17.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, the Board proposed a capital reorganization, including share consolidation, capital reduction, and share subdivision, pending approvals - The proposed capital reorganization includes: consolidating every **3** shares of HKD **0.2** par value into **1** share of HKD **0.6** par value; reducing the paid-up capital of each consolidated share to HKD **0.006**; and subdividing each authorized but unissued share into **100** new shares of HKD **0.006** par value[63](index=63&type=chunk) - The capital reorganization is subject to shareholder approval, Stock Exchange Listing Committee approval, and other regulatory requirements[61](index=61&type=chunk) [Management Discussion and Analysis](index=29&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Activities](index=29&type=section&id=%E6%A5%AD%E5%8B%99%E6%B4%BB%E5%8B%95) The Group's core business involves manufacturing and selling tinplate packaging products in China and providing repackaging services in Hong Kong, with no significant operational changes since listing - The Group primarily (i) manufactures and sells tinplate packaging products in China; and (ii) provides repackaging services in Hong Kong[64](index=64&type=chunk) - Since its listing on **July 18, 2017**, the Group's business operations have seen no significant changes[64](index=64&type=chunk) [Business Review and Outlook](index=29&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) First-half revenue decreased by 36.0% due to China's economic downturn, but loss significantly narrowed by 98.2% due to financial asset gains and cost controls - Revenue decreased by approximately **36.0%** from **RMB 38.1 million** to **RMB 24.4 million**, mainly due to reduced sales demand amid China's economic downturn[65](index=65&type=chunk) - Loss for the period decreased from approximately **RMB 11.1 million** to **RMB 0.2 million**, primarily due to fair value gains from financial assets (**RMB 2.1 million**) from a recovering Hong Kong stock market and cost control measures[65](index=65&type=chunk) - Looking ahead, the Group plans to consolidate its market share in tinplate packaging, expand its product and service portfolio, broaden sales channels, and implement cost control strategies to improve cash flow[66](index=66&type=chunk) [Debts and Charges on Assets](index=30&type=section&id=%E5%82%B5%E5%8B%99%E5%8F%8A%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had RMB 28.0 million in secured borrowings and RMB 46.6 million in unsecured borrowings, with RMB 52 million in unutilized bank facilities - Secured borrowings were **RMB 28.0 million**, and unsecured borrowings were approximately **RMB 46.6 million**, both consistent with December 31, 2024[67](index=67&type=chunk) - Bank borrowings and other bank facilities are secured by a building held by a subsidiary owned by former directors[68](index=68&type=chunk) - Unutilized bank facilities amount to approximately **RMB 52 million**[68](index=68&type=chunk) [Financial Review](index=31&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews the Group's financial performance, detailing changes in revenue, cost of sales, gross profit, other income/loss, operating expenses, finance costs, and period loss [Revenue](index=31&type=section&id=%E6%94%B6%E7%9B%8A) - Revenue decreased by 36.0% to RMB 24.4 million, primarily due to reduced sales demand amid China's economic slowdown[69](index=69&type=chunk) [Cost of Sales](index=31&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) - Cost of sales decreased by approximately **37.5%** from **RMB 37.3 million** to **RMB 23.3 million**, consistent with the revenue decrease[70](index=70&type=chunk) [Gross Profit and Gross Profit Margin](index=31&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) - Gross profit increased from approximately **RMB 0.8 million** to **RMB 1.1 million**, with gross profit margin rising from **2.1%** to **4.6%**, mainly due to higher average selling prices[71](index=71&type=chunk) [Net Other Income / Loss](index=32&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%E4%BA%8F%E6%90%8D%E5%87%80%E9%A1%8D) - Net other income/loss turned into a gain of approximately **RMB 2.1 million** (2024: loss of approximately RMB 5.6 million), primarily due to increased realized and unrealized fair value gains from financial assets as the Hong Kong stock market recovered[72](index=72&type=chunk) [Selling Expenses](index=32&type=section&id=%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) - Selling expenses decreased by approximately **87.5%** from **RMB 0.8 million** to **RMB 0.1 million**, mainly due to implemented cost controls[73](index=73&type=chunk) [Administrative and Other Expenses](index=32&type=section&id=%E8%A1%8C%E6%94%BF%E5%8F%8A%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) - Administrative and other expenses decreased by approximately **37.5%** from **RMB 4.0 million** to **RMB 2.5 million**, mainly due to implemented cost controls[74](index=74&type=chunk) [Finance Costs](index=32&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) - Finance costs decreased by approximately **47.1%** from **RMB 1.7 million** to **RMB 0.9 million**, mainly due to reduced utilized bank financing[75](index=75&type=chunk) [Loss for the Period](index=33&type=section&id=%E6%9C%9F%E5%85%A7%E4%BA%8F%E6%90%8D) - Loss for the period decreased from approximately **RMB 11.1 million** to **RMB 0.2 million**, a result of the combined effects of the aforementioned factors[76](index=76&type=chunk) [Dividends](index=33&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend an interim dividend for the six months ended June 30, 2025[77](index=77&type=chunk) [Liquidity and Financial Resources](index=33&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's liquidity primarily stems from operating cash inflows, but cash and bank balances decreased, and the gearing ratio increased, with management closely monitoring the situation - As of June 30, 2025, the Group's total cash and bank balances were approximately **RMB 3.6 million** (December 31, 2024: RMB 7.1 million)[78](index=78&type=chunk) - The gearing ratio increased from approximately **60.0%** as of December 31, 2024, to approximately **82.6%** as of June 30, 2025[78](index=78&type=chunk) - The Group adopts a conservative approach to financial policies, with the Board closely monitoring liquidity[79](index=79&type=chunk) [Key Risks, Uncertainties and Risk Management](index=34&type=section&id=%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E3%80%81%E4%B8%8D%E7%A2%BA%E5%AE%9A%E6%80%A7%E5%8F%8A%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group's primary credit risk arises from trade and other receivables and bank cash, managed through credit policies and individual customer credit assessments - The Group's credit risk primarily arises from trade and other receivables and bank cash[81](index=81&type=chunk) - Credit policies are established, and credit risk is continuously monitored through individual credit assessments of customers[81](index=81&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries](index=34&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) The Group did not undertake any significant acquisitions or disposals of subsidiaries for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals of subsidiaries[82](index=82&type=chunk) [Contingent Liabilities](index=34&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[83](index=83&type=chunk) [Employees and Remuneration Policy](index=34&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group's employee count decreased to 58, with a corresponding reduction in employee costs, and remuneration policies are based on industry practice and performance - As of June 30, 2025, the Group employed **58** employees (December 31, 2024: 75 employees)[84](index=84&type=chunk) - For the six months ended June 30, 2025, the Group's employee costs were approximately **RMB 1.3 million** (2024: RMB 1.8 million)[84](index=84&type=chunk) - Employee remuneration levels are in line with industry practice and market conditions, with overall compensation determined by the Group based on employee qualifications and performance[84](index=84&type=chunk) [Material Investments Held](index=35&type=section&id=%E6%89%80%E6%8C%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group holds approximately RMB 12.7 million in Hong Kong-listed equity securities, planning portfolio diversification and adhering to a strict risk management framework [Investment Portfolio Overview](index=35&type=section&id=%E6%8A%95%E8%B3%87%E7%B5%84%E5%90%88%E6%A6%82%E8%A6%BD) - As of June 30, 2025, the Group held **17** Hong Kong-listed equity securities with a fair value of approximately **RMB 12.7 million**[85](index=85&type=chunk) - The Group intends to diversify its investment portfolio to mitigate concentration and investment risks[85](index=85&type=chunk) Major Equity Securities Investments (As of June 30, 2025) | Company Name / Stock Code | Percentage Held | Fair Value (Loss) / Gain for H1 2025 (RMB thousand) | Fair Value as of June 30, 2025 (RMB thousand) | Percentage of Total Group Assets | | :--- | :--- | :--- | :--- | :--- | | Harbour Digital Industry Capital Limited (913) | 2.9% | (1,207) | 3,750 | 11.1% | | China Investment and Finance Group Limited (1226) | 0.4% | 1,834 | 2,481 | 7.3% | | Lisi Group Holdings Limited (1327) | 4.8% | 1,142 | 2,415 | 7.1% | | Other Listed Securities | N/A | N/A | 4,070 | 12.0% | | **Total** | N/A | N/A | **12,716** | **37.5%** | [Investment Policy and Objectives](index=37&type=section&id=%E6%8A%95%E8%B3%87%E6%94%BF%E7%AD%96%E8%88%87%E7%9B%AE%E6%A8%99) The primary objective is long-term capital appreciation and high growth through diversified investments in listed equity securities, prohibiting excessive leverage or speculative derivatives - The primary objective is to achieve long-term capital appreciation and high growth by investing idle funds in a diversified portfolio of listed equity securities[89](index=89&type=chunk) - Permitted investments are limited to listed equities on globally recognized exchanges, with the portfolio remaining diversified and minimum holding quantities set to reduce risk[89](index=89&type=chunk) - The use of excessive leverage, investment in unlisted securities, or speculative derivative trading is prohibited[89](index=89&type=chunk) [Risk Management and Control Measures](index=37&type=section&id=%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E8%88%87%E6%8E%A7%E5%88%B6%E6%8E%AA%E6%96%BD) A stringent risk management framework is employed, actively managing liquidity risk through tiered limits and maintaining a diversified portfolio to minimize single investment exposure - A stringent risk management framework is adopted, actively managing liquidity risk through a strict tiered limit structure[90](index=90&type=chunk) - A diversified investment portfolio with predetermined limits is maintained, ensuring no single investment exceeds a small percentage of the portfolio's value[90](index=90&type=chunk) - All transactions are executed through reputable, regulated financial institutions to minimize counterparty risk[90](index=90&type=chunk) [Approval and Oversight Mechanism for Investment Decisions](index=38&type=section&id=%E6%8A%95%E8%B3%87%E6%B1%BA%E7%AD%96%E7%9A%84%E5%AF%A9%E6%89%B9%E8%88%87%E7%9B%A3%E7%9D%A3%E6%A9%9F%E5%88%B6) Investment decisions are governed by a multi-layered approval and oversight structure, led by executive directors, with internal compliance screening and regular board reporting - Investment decisions are governed by a multi-layered approval and oversight structure, led by Executive Directors Mr. Wang Yun and Mr. Zou Yonggang[91](index=91&type=chunk)[92](index=92&type=chunk) - The internal compliance team is responsible for initial screening of all proposed transactions involving the purchase, sale, or subscription of listed securities to assess if they constitute disclosable transactions[91](index=91&type=chunk) - All investment decisions are based on comprehensive due diligence, pre-defined investment mandates with clearly defined risk parameters and asset allocation, and are regularly reported to the Board[92](index=92&type=chunk) [Foreign Exchange Risk](index=39&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group faces minimal foreign exchange risk as its primary business is in China, with most transactions settled in RMB, and no hedging activities were undertaken - The Group's primary business is located in China, with most transactions settled in RMB, resulting in minimal foreign exchange risk[94](index=94&type=chunk) - For the six months ended June 30, 2025, the Group did not hedge any foreign exchange risk[94](index=94&type=chunk) [Capital Structure](index=39&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) As of June 30, 2025, the company's issued share capital and number of ordinary shares remained unchanged at HKD 32,000,000 (approximately RMB 27,909,000) and 160,000,000 shares - As of June 30, 2025, the company's issued share capital was **HKD 32,000,000** (equivalent to approximately **RMB 27,909,000**), with **160,000,000** ordinary shares issued, each with a par value of **HKD 0.2**[95](index=95&type=chunk) - Except for changes disclosed elsewhere in this interim report, there were no changes to the company's capital structure[95](index=95&type=chunk) [Future Plans for Material Investments and Capital Assets](index=39&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E4%B9%8B%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) Except as disclosed in this interim report, the Group had no other significant investment or capital asset plans as of June 30, 2025 - Except as disclosed in this interim report, the Group had no other significant investment or capital asset plans as of June 30, 2025[96](index=96&type=chunk) [Other Information Disclosure](index=40&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99%E6%8A%AB%E9%9C%B2) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=40&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, no directors or chief executives held disclosable interests or short positions in the company's shares, underlying shares, or debentures, beyond what is already reported - As of June 30, 2025, no directors or chief executives held disclosable interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations, other than as disclosed elsewhere in this report[97](index=97&type=chunk) [Measures to Enhance Shareholder Value](index=40&type=section&id=%E6%8F%90%E5%8D%87%E8%82%A1%E6%9D%B1%E5%83%B9%E5%80%BC%E7%9A%84%E6%8E%AA%E6%96%BD) The company is committed to enhancing long-term shareholder value through a rigorous capital allocation framework, prioritizing operational funding, strategic reinvestment, and shareholder returns - The company is committed to enhancing long-term shareholder value through a rigorous and strategic capital allocation framework, balancing shareholder returns with funding for operational excellence and future growth[98](index=98&type=chunk) - Capital allocation priorities: 1. Funding daily operations and core business growth; 2. Strategic reinvestment for returns; 3. Returning capital to shareholders[100](index=100&type=chunk) - All significant allocation decisions require full Board approval to ensure alignment with the objective of maximizing long-term shareholder value[99](index=99&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=42&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, no substantial shareholders or other persons, apart from the disclosed directors and chief executives, held disclosable interests or short positions in the company's shares or underlying shares - As of June 30, 2025, no person (other than the directors and chief executives disclosed above) held disclosable interests or short positions in the shares or underlying shares[101](index=101&type=chunk) [Dividend Policy](index=42&type=section&id=%E8%82%A1%E6%81%AF%E6%94%BF%E7%AD%96) The company's dividend policy prioritizes cash dividends, with the payout ratio determined by the Board based on financial performance, future prospects, and investment needs, subject to legal and financing constraints - The company has adopted a dividend policy prioritizing cash dividends to share profits with shareholders[102](index=102&type=chunk) - The dividend payout ratio will be determined at the Board's sole discretion, considering the company's financial performance, future prospects, investment and operational needs, overall financial health, and general market conditions[102](index=102&type=chunk) - The dividend policy is subject to the company's articles of association, applicable restrictions and requirements under Cayman Islands law, and any banking or other financing covenants binding the company[102](index=102&type=chunk) [Share Option Scheme](index=43&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%88%83) As of June 30, 2025, 2,519,352 unexercised share options remain under the company's share option scheme, with 8,256,000 employee options having lapsed during the period - As of June 30, 2025, **2,519,352** share options granted under the scheme remained unexercised[103](index=103&type=chunk) Overview of Share Option Movements (As of June 30, 2025) | Category of Participant | Grant Date | Exercise Period | Outstanding as of Jan 1, 2025 | Lapsed / Cancelled in H1 2025 | Outstanding as of June 30, 2025 | Exercise Price Per Share (HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Employees | 2019年4月10日 | 10年 | 2,204,440 | – | 2,204,440 | 1.981 | | Employees | 2022年4月6日 | 3年 | 8,256,000 | (8,256,000) | – | 0.400 | | Consultants | 2019年4月10日 | 10年 | 314,912 | – | 314,912 | 1.981 | | **Total** | N/A | N/A | **10,775,352** | **(8,256,000)** | **2,519,352** | N/A | [Purchase, Sale or Redemption of the Company's Listed Securities](index=44&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities for the six months ended June 30, 2025 - 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[105](index=105&type=chunk) [Directors' Contractual Interests](index=44&type=section&id=%E8%91%A3%E4%BA%8B%E4%B9%8B%E5%90%88%E7%B4%84%E6%AC%8A%E7%9B%8A) As of June 30, 2025, no directors held significant beneficial interests, directly or indirectly, in any material contracts entered into by the company or its subsidiaries - As of June 30, 2025, no directors had a material beneficial interest, directly or indirectly, in any significant contract entered into by the company or its subsidiaries[106](index=106&type=chunk) [Competing Interests of Directors and Controlling Shareholders](index=44&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%8E%A7%E8%82%A1%E8%82%A1%E6%9D%B1%E4%B9%8B%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A) As of June 30, 2025, the directors were unaware of any competing businesses or interests held by directors, controlling shareholders, or their associates that compete with the Group's business - As of June 30, 2025, the directors were unaware of any business or interest held by directors, controlling shareholders, or their associates that competes or may compete with the Group's business[107](index=107&type=chunk) [Directors' Securities Transactions](index=44&type=section&id=%E8%91%A3%E4%BA%8B%E4%B9%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) All directors confirmed compliance with the required dealing standards under the GEM Listing Rules and the company's guidelines for directors' securities transactions - Following specific enquiries with all directors, the directors confirmed compliance with the required dealing standards and guidelines for directors' securities transactions as of the report date[108](index=108&type=chunk) [Compliance with Corporate Governance Code Practices](index=44&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87%E5%B8%B8%E8%A6%8F) The company adheres to the principles and applicable code provisions of the Corporate Governance Code, with the Audit Committee reviewing financial reporting and internal controls - The company has adopted the principles and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules[109](index=109&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and this report with the company's management[110](index=110&type=chunk) - The condensed consolidated interim financial information for the six months ended June 30, 2025, is unaudited but has been reviewed by the Audit Committee[110](index=110&type=chunk)

[Company Profile](index=3&type=section&id=Company%20Profile) The company, registered in the Cayman Islands with headquarters in Shanghai, maintains a robust corporate governance structure with a diverse board and key committees [Board of Directors and Corporate Governance](index=3&type=section&id=Board%20of%20Directors%20and%20Corporate%20Governance) The company's board comprises executive, non-executive, and independent non-executive directors, with audit, remuneration, and nomination committees ensuring robust corporate governance, chaired by Mr. Zhang Jun, who also serves as Executive Chairman and Co-CEO - The Board of Directors includes Executive Director Mr. Zhang Jun (also Chairman, Executive Chairman, and Co-CEO), Non-executive Directors Ms. Zhang Shuman, Dr. Yang Qingli, Mr. Cao Hongbo, Dr. Fan Renda, and Independent Non-executive Directors Mr. Wang Tao, Mr. Huang Wenzong, and Mr. Shi Zheyan [5](index=5&type=chunk) - The company has established an Audit Committee (Chairman: Mr. Huang Wenzong), Remuneration Committee (Chairman: Mr. Wang Tao), and Nomination Committee (Chairman: Mr. Wang Tao) to strengthen corporate governance [5](index=5&type=chunk) [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) The company is registered in the Cayman Islands, headquartered in Shanghai, China, with a principal place of business in Hong Kong, and its shares are traded under stock code 1623 - The company's registered office is in the Cayman Islands, its headquarters are in Baoshan Industrial Park, Shanghai, China, and its principal place of business in Hong Kong is in Lee Garden One, Causeway Bay [6](index=6&type=chunk) - The company's stock code is **1623**, and its official website is www.hilonggroup.com [7](index=7&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) The company experienced a revenue decline and net loss in H1 2025, driven by challenges in oilfield services, but saw strong growth in marine engineering, while actively pursuing strategic transformation, technological innovation, and international market expansion Major Financial Indicators for H1 2025 (RMB '000) | Indicator | H1 2025 (RMB '000) | H1 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,322,537 | 2,465,641 | -5.8 | | Gross Profit | 401,445 | 578,304 | -30.6 | | Gross Profit Margin | 17.3% | 23.5% | -6.2pp | | Profit/(Loss) for the Period Attributable to Owners of the Company | (324,236) | 46,002 | N/A | | Basic Earnings/(Loss) Per Share (RMB Yuan) | (0.1911) | 0.0271 | N/A | [Financial Review](index=4&type=section&id=Financial%20Review) For the six months ended June 30, 2025, total revenue decreased by **5.8%** to **RMB 2,322.5 million**, driven by reduced income from oilfield equipment manufacturing and services, and oilfield services, resulting in a **RMB 324.2 million** loss attributable to owners [Revenue](index=4&type=section&id=Revenue) Total revenue for H1 2025 decreased by **5.8%** to **RMB 2,322.5 million**, with oilfield equipment manufacturing and services down **36.7%** due to reduced drill pipe sales, oilfield services down **8.6%** from lower drilling services and rig utilization, while marine engineering services surged **86.0%** from subsea pipeline and offshore platform projects Revenue by Business Segment (RMB '000) | Business Segment | H1 2025 (RMB '000) | H1 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Oilfield Equipment Manufacturing and Services | 716,643 | 1,132,464 | -36.7 | | Oilfield Services | 843,740 | 923,497 | -8.6 | | Marine Engineering Services | 762,154 | 409,680 | +86.0 | | **Total Revenue** | **2,322,537** | **2,465,641** | **-5.8** | Drill Pipe Sales Revenue Analysis (RMB '000) | Market | H1 2025 (RMB '000) | H1 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | International Market | 614,233 | 937,172 | -34.5 | | China Market | 61,096 | 133,197 | -54.1 | | **Total** | **675,329** | **1,070,369** | **-36.9** | - International drill pipe sales volume decreased by **27.5%** to **24,687 tons**, primarily due to reduced demand in the Middle East market caused by falling oil prices [10](index=10&type=chunk) - China market drill pipe sales volume decreased by **42.9%** to **4,134 tons**, mainly due to reduced demand from intense market competition [11](index=11&type=chunk) [Costs and Profits](index=6&type=section&id=Costs%20and%20Profits) Sales and services costs slightly increased by **1.8%** year-on-year, but gross profit significantly decreased by **30.6%**, with gross profit margin falling **6.2 percentage points** to **17.3%**; sales and marketing costs decreased by **31.2%**, administrative expenses increased by **4.9%**, and other net losses rose significantly due to vessel impairment losses Cost and Profit Indicators (RMB '000) | Indicator | H1 2025 (RMB '000) | H1 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales and Services | 1,921,092 | 1,887,337 | +1.8 | | Gross Profit | 401,445 | 578,304 | -30.6 | | Gross Profit Margin | 17.3% | 23.5% | -6.2pp | | Sales and Marketing Costs | 43,404 | 63,118 | -31.2 | | Administrative Expenses | 243,831 | 232,527 | +4.9 | | Other Losses – Net | (283,863) | (33,294) | N/A | | Finance Costs – Net | (101,012) | (129,031) | -21.7 | | (Loss)/Profit Before Income Tax | (283,439) | 100,079 | N/A | - Other net losses primarily reflect an impairment loss of **RMB 329.3 million** on vessels classified as held for sale, partially offset by a foreign exchange gain of **RMB 52.6 million** from the appreciation of the Ruble [17](index=17&type=chunk) - Net finance costs decreased by **21.7%**, mainly due to a **RMB 13.0 million** reduction in interest expenses on 2024 notes and bank borrowings, and a **RMB 14.1 million** increase in net foreign exchange gains from financing activities due to USD depreciation [18](index=18&type=chunk) [Assets, Liabilities and Liquidity](index=7&type=section&id=Assets%2C%20Liabilities%20and%20Liquidity) As of June 30, 2025, inventory increased to meet new overseas orders, while trade receivables turnover days rose, reflecting slower settlement efficiency in international markets; the current ratio improved to **126.7%**, but net borrowings remained at **RMB 1,895.8 million**, with a gearing ratio of **38.86%** Balance Sheet Key Indicators (RMB '000) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Inventories | 1,236,730 | 1,095,842 | +12.9 | | Inventory Turnover Days | 110 | 112 | -1.8 | | Total Trade Receivables | 2,189,781 | 2,054,535 | +6.6 | | Trade Receivables Turnover Days | 166 | 154 | +7.8 | | Cash and Cash Equivalents | 583,362 | 721,631 | -19.2 | | Net Borrowings | 1,895,800 | 1,964,900 | -3.5 | | Current Ratio | 126.7% | 110.2% | +16.5pp | | Gearing Ratio | 38.86% | 37.40% | +1.46pp | - The increase in inventories primarily reflects increased reserves to meet new overseas market orders [22](index=22&type=chunk) - The increase in trade receivables turnover days primarily reflects a decrease and slowdown in settlement efficiency for certain oil and gas companies in the international market [24](index=24&type=chunk) - As of June 30, 2025, the company had pledged **17 drilling rigs** as collateral for the 2024 notes, located in Nigeria, Ecuador, Ukraine, Iraq, Brunei, and Pakistan [38](index=38&type=chunk) [Foreign Exchange and Employees](index=11&type=section&id=Foreign%20Exchange%20and%20Employees) The company primarily bears USD exchange rate risk, with USD-denominated revenue accounting for **55.9%** of total revenue in H1 2025, up from **41.2%** in H1 2024; as of June 30, 2025, total full-time employees were **2,359**, with employee costs of **RMB 294.8 million** - In H1 2025, the company's USD-denominated revenue accounted for **55.9%** of total revenue, an increase from **41.2%** in H1 2024, indicating increased exposure to USD exchange rate risk [39](index=39&type=chunk) Number of Employees by Function | Function | Number | | :--- | :--- | | Field Workers | 1,400 | | Administration | 336 | | Engineering and Technical Support | 414 | | R&D | 118 | | Sales, Marketing and After-sales Service | 71 | | Corporate Management | 20 | | **Total** | **2,359** | - Employee costs (excluding directors' emoluments) totaled **RMB 294.8 million** in H1 2025 [40](index=40&type=chunk) - The company adopted a share award scheme on September 11, 2023, but no share awards were granted for the six months ended June 30, 2025 [42](index=42&type=chunk) [Business Review](index=12&type=section&id=Business%20Review) In H1 2025, Hilong Group actively promoted technological innovation, talent development, and internationalization strategies, transforming into an asset-light, digital, and high-tech intelligent enterprise; despite a slight decrease in total revenue, various business segments made significant progress in market development and technological innovation, with marine engineering services achieving strong growth - The Group adheres to a strategy of **technology-driven innovation** and **intelligent, high-quality development**, achieving good results in key countries and regions such as the US, Canada, and the Middle East [43](index=43&type=chunk) - The Group strengthened cash flow management, implementing proactive financial measures such as enhanced accounts receivable and inventory management to improve overall operational efficiency [43](index=43&type=chunk) [Oilfield Equipment Manufacturing and Services](index=12&type=section&id=Oilfield%20Equipment%20Manufacturing%20and%20Services) This segment's revenue decreased by **36.7%** year-on-year to **RMB 716.6 million**; despite the revenue decline, the company continued to launch high-tech anti-sulfur drill pipe series, electronic tag drill pipes, and special connection drill pipes, while optimizing production processes and market layout, securing significant orders with high-end clients like Ensign, Precision Drilling, and ADNOC Drilling in the US, Canada, Middle East, and Southeast Asia markets - Launched high-tech anti-sulfur drill pipe series, electronic tag drill pipes and related full lifecycle management, Hilong special connections, high-strength U165 drill pipes for 10,000-meter ultra-deep wells, ultra-high torque drill pipes for extended reach horizontal wells, and wear-resistant drill pipes [44](index=44&type=chunk) - Achieved business breakthroughs in markets such as the US, Canada, the Middle East, and Southeast Asia, and established drill pipe production bases and new production lines in the Middle East and Central Asia [44](index=44&type=chunk) - Secured significant orders with major clients like Ensign and Precision Drilling, becoming a primary drill tool supplier for high-end customers; obtained long-term contracts with key clients such as ADNOC Drilling in the Middle East market [44](index=44&type=chunk) [Oilfield Services](index=13&type=section&id=Oilfield%20Services) This segment's revenue decreased by **8.6%** year-on-year to **RMB 843.7 million**; the company actively transitioned towards "asset-light and technology-led" operations, vigorously developing oilfield management and production enhancement solutions, expanding drilling turnkey projects and high-tech integrated general contracting businesses, achieving breakthroughs in turnkey operations in regions like Nigeria, and completing customized digital oilfield management solutions in Brazil, Iraq, and Libya - The Oilfield Services division closely aligns with the "asset-light and technology-led" transformation, comprehensively enhancing product and service capabilities, expanding new business models, and building integrated technical innovation service capabilities [46](index=46&type=chunk) - Achieved breakthroughs in turnkey operations in regions such as Nigeria, and completed customized digital oilfield management solutions in countries including Brazil, Iraq, and Libya [46](index=46&type=chunk) - Maintained stable development in environmental technical services such as drilling and workover mud, cuttings treatment, and well site restoration, as well as coiled tubing services, nano-oil displacement production enhancement technology, managed pressure drilling (MPD) technology, and integrated technical services like RSS directional/horizontal drilling [47](index=47&type=chunk) [Marine Engineering Services](index=14&type=section&id=Marine%20Engineering%20Services) This segment's revenue significantly increased by **86.0%** year-on-year to **RMB 762.2 million**; Hilong Marine Engineering made notable progress in basic management, operational capabilities, and business development, enhancing international and domestic project management and overseas project design and construction capabilities, actively developing into a specialized marine engineering company with EPCI integrated general contracting capabilities, and winning new projects in regions like Southeast Asia - Marine engineering services revenue increased by **86.0%** year-on-year, primarily reflecting increased revenue from subsea pipeline laying projects and offshore drilling platform construction projects [12](index=12&type=chunk)[48](index=48&type=chunk) - Hilong Marine Engineering is vigorously developing into a specialized marine engineering company with **EPCI integrated general contracting capabilities**, forming a full industry chain business capability [48](index=48&type=chunk) - Secured new bids for projects in regions such as Southeast Asia, completed key projects in Africa, and received high praise from clients for project delivery [48](index=48&type=chunk) [Technology R&D](index=15&type=section&id=Technology%20R%26D) Hilong Group is committed to driving corporate transformation through technological innovation and digitalization; in drill pipe products, it completed the development of large-diameter thick-walled HLU165 ultra-high strength drill pipes and high-pressure resistant special connections for marine risers, and promoted HLNST special threaded connections in the North American market; in oilfield services, it enhanced drilling turnkey technical service capabilities and promoted MPD controlled pressure drilling technology and nano-oil displacement production enhancement technology; in marine engineering, it initiated multiple technical research projects to improve offshore construction capabilities - Completed the development of large-diameter thick-walled **HLU165 ultra-high strength drill pipes** and high-pressure resistant special connections for marine risers, and initiated the development and construction of an information system in the drill pipe factory [49](index=49&type=chunk) - **HLNST special threaded connections** have achieved significant sales and gained recognition from high-end clients in the US and Canada; developed **HL135MS/HL130S higher steel grade anti-sulfur drill pipes**, and received high-end orders for electronic tag drill pipes [49](index=49&type=chunk) - The oilfield services segment enhanced its drilling turnkey technical service capabilities, strengthened the localization development and promotion of key equipment components for **Managed Pressure Drilling (MPD)**, and upgraded and promoted rotary steerable system technology and nano-oil displacement production enhancement technology [49](index=49&type=chunk) [Outlook](index=15&type=section&id=Outlook) Looking ahead to H2 2025, the company is optimistic about overall market improvement and will adhere to its high-tech development strategy, continuing to develop high-end clients and orders in the US, Middle East, Southeast Asia, and South America to increase international market share; each business segment will deepen product development, optimize business layout, enhance technical service capabilities, and actively explore new markets and businesses to strive for better performance - The Group will adhere to its high-tech development strategy, continuing to develop new high-end clients and secure high-end orders in countries and regions such as the US, Middle East, Southeast Asia, and South America, thereby increasing its international market share and brand service image [50](index=50&type=chunk) - The international drill pipe market will continue to promote high-value-added drill pipe products, deeply develop high-end demand in the Middle East, US, and Canada, and vigorously promote various high-strength, anti-sulfur, wear-resistant, and intelligent drill pipe products [51](index=51&type=chunk) - Oilfield services will stabilize existing drilling and workover rig operations, maintain rig utilization, strengthen the drilling turnkey technical team, and actively develop various businesses such as oilfield environmental protection, nano-enhanced oil recovery, drill tool repair, and trade services [52](index=52&type=chunk) - Marine engineering services will strengthen overseas personnel allocation, expand new clients, strive for more bidding opportunities, and focus on enhancing marine engineering digital delivery and management capabilities to continuously improve integrated general contracting service capabilities [53](index=53&type=chunk) [Other Significant Matters](index=18&type=section&id=Other%20Significant%20Matters) The company has met all resumption guidance and resumed share trading on July 8, 2025; in response to the auditor's disclaimer of opinion, the company is implementing an action plan to address related uncertainties; additionally, The Bank of New York Mellon, London Branch, has filed a winding-up petition against the company for its outstanding 2024 notes, with the hearing adjourned to October 27, 2025 - The company's shares resumed trading on the Stock Exchange at 9:00 a.m. on July 8, 2025, having met all resumption guidance [54](index=54&type=chunk) - The auditor issued a disclaimer of opinion on the consolidated financial statements for the year ended December 31, 2024, and the company has proposed an action plan to address the related uncertainties [55](index=55&type=chunk) - The Bank of New York Mellon, London Branch, filed a winding-up petition against the company for its unpaid **USD 379,135,000 9.75%** senior secured notes, with the hearing adjourned to October 27, 2025 [56](index=56&type=chunk) [Subsequent Events](index=18&type=section&id=Subsequent%20Events) On August 11, 2025, the company's indirect wholly-owned subsidiary entered into a Memorandum of Agreement with PT CAKRA BUANA RESOURCES ENERGI TBK, conditionally agreeing to sell the vessel "Hilong 106" for **USD 100 million**, of which **USD 75 million** will be received in cash - On August 11, 2025, the company's indirect wholly-owned subsidiary agreed to sell the vessel "Hilong 106" for **USD 100 million**, with **USD 75 million** to be received in cash and the remaining **USD 25 million** to be settled via promissory notes issued by the buyer [57](index=57&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=18&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were **RMB 7,581.9 million**, a decrease from **RMB 8,077.7 million** as of December 31, 2024; total liabilities were **RMB 4,633.1 million**, and total equity was **RMB 2,948.8 million**, with a significant reduction in property, plant and equipment and the addition of **RMB 720.9 million** in assets classified as held for sale Balance Sheet Key Data (RMB '000) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Property, Plant and Equipment | 1,302,145 | 2,366,346 | | Current Assets | 5,014,586 | 5,166,030 | | Assets Classified as Held for Sale | 720,903 | – | | **Total Assets** | **7,581,997** | **8,077,721** | | **Equity** | | | | Total Equity | 2,948,895 | 3,259,124 | | **Liabilities** | | | | Current Liabilities | 4,526,876 | 4,686,922 | | **Total Liabilities** | **4,633,102** | **4,818,597** | - Property, plant and equipment decreased from **RMB 2,366.3 million** as of December 31, 2024, to **RMB 1,302.1 million** as of June 30, 2025, primarily due to certain assets being classified as held for sale [58](index=58&type=chunk) - New assets classified as held for sale amounted to **RMB 720.9 million** [58](index=58&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=20&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company recorded a loss for the period of **RMB 324.8 million**, compared to a profit of **RMB 46.5 million** in the prior corresponding period; total comprehensive expense was **RMB 310.2 million**, and basic loss per share was **RMB 0.1911** Statement of Profit or Loss Key Data (RMB '000) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 2,322,537 | 2,465,641 | | Gross Profit | 401,445 | 578,304 | | Operating (Loss)/Profit | (182,427) | 229,110 | | (Loss)/Profit Before Income Tax | (283,439) | 100,079 | | Income Tax Expense | (41,431) | (53,523) | | (Loss)/Profit for the Period | (324,870) | 46,556 | | Total Comprehensive (Expense)/Income for the Period | (310,229) | (418) | | Basic (Loss)/Earnings Per Share (RMB Yuan) | (0.1911) | 0.0271 | - The loss for the period was primarily impacted by operating losses and income tax expense, contrasting with a profit in the prior corresponding period [60](index=60&type=chunk) - Foreign currency translation differences shifted from a loss of **RMB 46.9 million** in H1 2024 to a gain of **RMB 14.6 million** in H1 2025 [61](index=61&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=22&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the company decreased from **RMB 3,263.9 million** at the beginning of the period to **RMB 2,954.3 million** at the end, primarily due to a loss for the period of **RMB 324.2 million**; non-controlling interests also recorded a loss Summary of Changes in Equity (RMB '000) | Indicator | January 1, 2025 | Loss for the Period | Other Comprehensive Income/(Expense) | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Ordinary Shares | 141,976 | – | – | 141,976 | | Other Reserves | 1,262,126 | – | – | 1,262,126 | | Foreign Currency Translation Differences | (459,721) | – | 14,655 | (445,066) | | Retained Earnings | 2,319,537 | (324,236) | – | 1,995,301 | | **Total Attributable to Owners of the Company** | **3,263,918** | **(324,236)** | **14,655** | **2,954,337** | | Non-controlling Interests | (4,794) | (634) | (14) | (5,442) | | **Total Equity** | **3,259,124** | **(324,870)** | **14,641** | **2,948,895** | - A loss for the period of **RMB 324.2 million** was the primary reason for the decrease in equity attributable to owners of the company [62](index=62&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=23&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash generated from operating activities was **RMB 182.5 million**, a significant improvement from net cash used of **RMB 90.4 million** in the prior corresponding period; both investing and financing activities resulted in net cash outflows, leading to a net decrease in cash and cash equivalents of **RMB 141.4 million**, with an ending balance of **RMB 583.3 million** Cash Flow Statement Key Data (RMB '000) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Generated From/(Used In) Operating Activities | 182,574 | (90,403) | | Net Cash Used In Investing Activities | (107,867) | (76,068) | | Net Cash Used In Financing Activities | (216,142) | (71,980) | | Net Decrease in Cash and Cash Equivalents | (141,435) | (238,451) | | Cash and Cash Equivalents at End of Period | 583,362 | 610,085 | - Operating cash flow shifted from a net outflow to a net inflow compared to the prior period, indicating improved operational efficiency [63](index=63&type=chunk) - Net cash outflow from investing activities increased, primarily due to higher expenditures on property, plant and equipment [63](index=63&type=chunk) - Net cash outflow from financing activities significantly increased, mainly due to larger repayments of borrowings [63](index=63&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=24&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section details the company's operational context, accounting policies, financial risk management, segment performance, asset and liability specifics, including the default on 2024 notes, and related party transactions [Basic Information and Basis of Preparation](index=25&type=section&id=Basic%20Information%20and%20Basis%20of%20Preparation) Hilong Holding Limited primarily engages in oil and gas equipment manufacturing and distribution, and provides oilfield, marine engineering, and marine design services; this interim condensed consolidated financial information is unaudited and prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, adopting new and revised standards effective for the current accounting period - The Group is principally engaged in the manufacturing and distribution of oil and gas equipment, and the provision of oilfield, marine engineering, and marine design services [64](index=64&type=chunk) - This interim condensed consolidated financial information is unaudited and has been prepared in accordance with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure provisions of the Listing Rules [66](index=66&type=chunk)[67](index=67&type=chunk) [Significant Accounting Policies](index=26&type=section&id=Significant%20Accounting%20Policies) Revisions to Hong Kong Financial Reporting Standards issued by the HKICPA were first applied during this period but had no significant impact on financial position or performance; significant uncertainties regarding the company's going concern exist, including the failure to repay the 2024 notes and accrued interest; management has formulated several plans to mitigate liquidity pressure, including seeking restructuring, new financing, accelerating receivables collection, reducing operating costs, and selling vessels - For the six months ended June 30, 2025, the Group incurred a net loss of **RMB 324,870,000**, and current liabilities included borrowings of **RMB 2,479,217,000** repayable within 12 months [69](index=69&type=chunk) - The Group failed to repay the 2024 notes and accrued interest on their due date of November 18, 2024, constituting an event of default [69](index=69&type=chunk) - Management has formulated plans including actively communicating with 2024 noteholders to seek restructuring, seeking new financing sources (existing bank loans have been extended), accelerating the recovery of trade and other receivables, reducing operating costs, and completing vessel sales to improve cash flow [70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) - Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use, and they are available for immediate sale in their present condition [74](index=74&type=chunk)[75](index=75&type=chunk) [Accounting Estimates and Financial Risk Management](index=29&type=section&id=Accounting%20Estimates%20and%20Financial%20Risk%20Management) The preparation of interim financial data involves management's judgments, estimates, and assumptions; the company faces market risks (foreign exchange, interest rates), credit risk, and liquidity risk; management manages liquidity risk by monitoring rolling forecasts of liquidity reserves and cash and cash equivalents, and credit risk by assessing client creditworthiness, limiting credit periods, and regularly reviewing receivables; fair value estimates for financial instruments use a three-level hierarchy - The Group's activities are exposed to market risk (including foreign exchange risk, fair value interest rate risk, and cash flow interest rate risk), credit risk, and liquidity risk [78](index=78&type=chunk) - Management manages liquidity risk by monitoring rolling forecasts of liquidity reserves and cash and cash equivalents, and expects to fund future cash flow requirements through internal operating cash flows, collection of receivables, borrowings, and issuance of debt/equity instruments [79](index=79&type=chunk) - The Group manages credit risk by assessing clients' financial conditions, the likelihood of obtaining guarantees, credit history, and market conditions, and regularly monitors client credit records [81](index=81&type=chunk) Financial Instruments Measured at Fair Value (RMB '000) | Level | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Level 3 Financial Assets | 156,822 | 212,583 | [Segment Information](index=32&type=section&id=Segment%20Information) The Group's operations are primarily divided into three business segments: oilfield equipment manufacturing and services, oilfield services, and marine engineering services, operating in six major geographical regions globally; in H1 2025, revenue from oilfield equipment manufacturing and services and oilfield services decreased, while marine engineering services revenue significantly increased; segment assets and liabilities are allocated, but finance income, finance costs, and income tax expense are not included in segment performance measurement - The Group's operations are primarily composed of three business segments: oilfield equipment manufacturing and services, oilfield services, and marine engineering services [92](index=92&type=chunk) Revenue by Business Segment (RMB '000) | Business Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Oilfield Equipment Manufacturing and Services | 716,643 | 1,132,464 | | Oilfield Services | 843,740 | 923,497 | | Marine Engineering Services | 762,154 | 409,680 | | **Total** | **2,322,537** | **2,465,641** | Revenue by Geographical Region (RMB '000) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | China (Place of Registration) | 280,567 | 282,255 | | Russia, Central Asia and Europe | 308,457 | 543,473 | | North and South America | 324,313 | 344,795 | | Middle East | 444,767 | 787,353 | | Africa | 526,378 | 202,381 | | South and Southeast Asia | 438,055 | 305,384 | | **Total** | **2,322,537** | **2,465,641** | - In H1 2025, revenue from the Africa region significantly increased, while revenue from the Middle East, Russia, Central Asia, and Europe regions decreased [99](index=99&type=chunk) [Property, Plant and Equipment, Right-of-Use Assets and Intangible Assets](index=37&type=section&id=Property%2C%20Plant%20and%20Equipment%2C%20Right-of-Use%20Assets%20and%20Intangible%20Assets) During the period, the Group acquired property, plant and equipment amounting to **RMB 159.4 million**; property, plant and equipment with a carrying amount of **RMB 1,050.1 million** were classified as assets held for sale, resulting in an impairment loss of **RMB 329.2 million** - Property, plant and equipment amounting to **RMB 159,412,000** were acquired during the period [102](index=102&type=chunk) - Property, plant and equipment with a carrying amount of **RMB 1,050,190,000** were classified as assets held for sale, and an impairment loss of **RMB 329,287,000** was recognized [103](index=103&type=chunk)[117](index=117&type=chunk) [Financial Assets and Financial Liabilities](index=38&type=section&id=Financial%20Assets%20and%20Financial%20Liabilities) As of June 30, 2025, the Group's total financial assets were **RMB 3,431.8 million**, and total financial liabilities were **RMB 4,349.1 million**; total trade receivables amounted to **RMB 2,189.7 million**, of which **RMB 22.9 million** were pledged for borrowings; total borrowings were **RMB 2,479.2 million**, including **RMB 2,251.7 million** for the 2024 notes which are in default; total trade payables were **RMB 1,249.0 million** Summary of Financial Assets and Financial Liabilities (RMB '000) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Financial Assets** | | | | Financial Assets at Fair Value Through Other Comprehensive Income | 156,822 | 212,583 | | Financial Assets at Amortized Cost | 3,275,066 | 3,387,128 | | **Total Financial Assets** | **3,431,888** | **3,599,711** | | **Financial Liabilities** | | | | Borrowings | 2,479,217 | 2,686,464 | | Trade and Other Payables | 1,849,283 | 1,737,743 | | Lease Liabilities | 20,627 | 27,326 | | **Total Financial Liabilities** | **4,349,127** | **4,451,533** | - Total trade receivables amounted to **RMB 2,189.7 million**, of which **RMB 22.9 million** were pledged to secure borrowings from financial institutions [105](index=105&type=chunk)[106](index=106&type=chunk) - The outstanding principal of the 2024 notes was **USD 314,546,000**, due for repayment on November 18, 2024, but remained unpaid as of June 30, 2025, constituting an event of default [110](index=110&type=chunk)[111](index=111&type=chunk) - As of June 30, 2025, accrued interest on the 2024 notes amounted to **RMB 245,120,000**, which has been included in interest payable [111](index=111&type=chunk) [Assets Classified as Held for Sale](index=43&type=section&id=Assets%20Classified%20as%20Held%20for%20Sale) The Group's management resolved to sell the vessel "Hilong 106" within the marine engineering services segment to align with strategic transformation and generate immediate cash flow; the vessel's carrying amount of **RMB 1,050.1 million** was written down to its fair value less costs to sell of **RMB 720.9 million**, with an impairment loss of **RMB 329.2 million** recognized in other net losses; subsequently, the company signed a Memorandum of Agreement with a buyer to sell the vessel for **USD 100 million** - The Group resolved to sell a vessel within the marine engineering services segment to align with its strategic transformation and reduce operational reliance on the vessel, while generating immediate cash flow [116](index=116&type=chunk) - The vessel's carrying amount of **RMB 1,050,190,000** was written down to its fair value less costs to sell of **RMB 720,903,000**, and an impairment loss of **RMB 329,287,000** was recognized in "Other losses – net" [117](index=117&type=chunk)[118](index=118&type=chunk) - Subsequently, the Group entered into a Memorandum of Agreement with an independent third-party buyer to sell the vessel for **USD 100 million**, of which **USD 75 million** will be received in cash [119](index=119&type=chunk) [Ordinary Shares and Other Reserves](index=44&type=section&id=Ordinary%20Shares%20and%20Other%20Reserves) As of June 30, 2025, the company had **1,696,438,600** issued and fully paid ordinary shares, with a par value of **HKD 0.1** per share, equivalent to **RMB 141,975,506**; total other reserves amounted to **RMB 1,262.1 million**, including statutory reserves, merger reserves, and share premium Ordinary Share Information | Indicator | Quantity/Amount | | :--- | :--- | | Number of Ordinary Shares | 1,696,438,600 shares | | Par Value of Ordinary Shares | HKD 0.1/share | | Equivalent Par Value | RMB 141,975,506 | Composition of Other Reserves (RMB '000) | Reserve Type | Amount | | :--- | :--- | | Statutory Reserve | 140,023 | | Merger Reserve | (496) | | Share Premium | 1,175,144 | | Reserve for Financial Assets at Fair Value Through Other Comprehensive Income | (2) | | Capital Redemption Reserve | 702 | | Capital Reserve | (53,245) | | **Total** | **1,262,126** | [Equity-settled Share-based Payment Arrangements](index=44&type=section&id=Equity-settled%20Share-based%20Payment%20Arrangements) The company adopted a share award scheme on September 11, 2023, to recognize employee contributions, retain talent, and attract new talent; the scheme is valid for **10 years**, with a maximum total number of awarded shares not exceeding **10%** of the company's issued share capital; as of June 30, 2025, no share awards were granted - The company adopted a share award scheme on September 11, 2023, to recognize and reward the contributions of eligible participants, and to retain and attract talent [122](index=122&type=chunk)[155](index=155&type=chunk) - The scheme is valid for **10 years**, with the maximum total number of awarded shares not exceeding **10%** of the company's issued share capital as of the adoption date (i.e., **169,643,860 shares**) [122](index=122&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) - As of June 30, 2025, no share awards were granted to any directors or employees [122](index=122&type=chunk)[162](index=162&type=chunk) [Other Income and Losses](index=45&type=section&id=Other%20Income%20and%20Losses) In H1 2025, other income primarily derived from government grants, totaling **RMB 8.0 million**; other net losses amounted to **RMB 283.8 million**, mainly due to an impairment loss of **RMB 329.2 million** on non-current assets classified as held for sale, partially offset by net foreign exchange gains of **RMB 52.5 million** Other Income (RMB '000) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Other Government Grants | 7,450 | 7,806 | | Release of Deferred Government Grants | 645 | 743 | | **Total** | **8,095** | **8,549** | Other Losses – Net (RMB '000) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Impairment Loss on Property, Plant and Equipment | (6,948) | – | | Impairment Loss on Non-current Assets Classified as Held for Sale | (329,287) | – | | Gain/(Loss) on Disposal of Property, Plant and Equipment – Net | 428 | (6,094) | | Net Foreign Exchange Gain/(Loss) | 52,567 | (28,737) | | Others | (623) | 1,537 | | **Total** | **(283,863)** | **(33,294)** | - Other net losses significantly increased, primarily due to the recognition of a substantial impairment loss on non-current assets classified as held for sale [125](index=125&type=chunk) [Finance Costs and Income Tax Expense](index=46&type=section&id=Finance%20Costs%20and%20Income%20Tax%20Expense) Net finance costs for H1 2025 were **RMB 101.0 million**, a decrease from **RMB 129.0 million** in the prior corresponding period, mainly due to reduced interest expenses on borrowings and net foreign exchange gains; income tax expense was **RMB 41.4 million**, with an effective tax rate of approximately **-14.6%**, primarily reflecting an unbalanced profit distribution among subsidiaries and increased tax losses with unrecognised deferred tax Finance Costs – Net (RMB '000) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 7,886 | 7,243 | | Interest Expense on 2024 Notes and Bank and Other Borrowings | (117,926) | (130,877) | | Net Foreign Exchange Gain/(Loss) | 9,440 | (4,655) | | Interest Expense on Lease Liabilities | (412) | (742) | | **Finance Costs – Net** | **(101,012)** | **(129,031)** | Income Tax Expense (RMB '000) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current Income Tax | 30,377 | 67,567 | | Deferred Income Tax | 11,054 | (14,044) | | **Income Tax Expense** | **41,431** | **53,523** | - The effective tax rate for H1 2025 was approximately **-14.6%**, a significant decrease from **53.5%** in the prior corresponding period, primarily reflecting an unbalanced profit distribution among subsidiaries and increased tax losses of subsidiaries for which deferred tax was not recognized [20](index=20&type=chunk)[129](index=129&type=chunk) [Earnings/(Loss) Per Share and Dividends](index=48&type=section&id=Earnings%2F%28Loss%29%20Per%20Share%20and%20Dividends) For the six months ended June 30, 2025, basic loss per share attributable to owners of the company was **RMB 0.1911**; diluted loss per share was not presented as there were no potential ordinary shares outstanding during the period; the Board resolved not to declare an interim dividend Earnings/(Loss) Per Share | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | (Loss)/Profit Attributable to Owners of the Company (RMB '000) | (324,236) | 46,002 | | Weighted Average Number of Ordinary Shares (Thousand Shares) | 1,696,439 | 1,696,439 | | Basic (Loss)/Earnings Per Share (RMB per Share) | (0.1911) | 0.0271 | - Diluted (loss)/earnings per share was not presented for the six months ended June 30, 2025, as there were no potential ordinary shares outstanding during the period [136](index=136&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 [138](index=138&type=chunk) [Significant Related Party Transactions and Balances](index=49&type=section&id=Significant%20Related%20Party%20Transactions%20and%20Balances) The Group has several related party transactions and balances with its controlling shareholder, Mr. Zhang Jun, and entities controlled or jointly controlled by him; in H1 2025, sales of goods or services to related parties amounted to **RMB 8.4 million**, and purchases of goods or services from related parties amounted to **RMB 117.8 million**; as of the period end, trade receivables from related parties were **RMB 26.5 million**, and trade payables to related parties were **RMB 140.4 million**; some bank financing is guaranteed by Mr. Zhang Jun and Hilong Petroleum - The Group's immediate and ultimate parent company is Hilong Group Limited, and the ultimate controlling shareholder is Mr. Zhang Jun [139](index=139&type=chunk) Transactions with Related Parties (RMB '000) | Transaction Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales of Goods or Services | 8,454 | 73,758 | | Purchases of Goods or Services | 117,831 | 111,102 | | Short-term Lease Expenses | 11,191 | 10,020 | | Interest Expense on Lease Liabilities | 122 | 203 | | Lease Income and Utilities Income | 6,962 | 6,711 | Balances with Related Parties (RMB '000) | Balance Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables from Related Parties (Net) | 23,764 | 24,113 | | Other Receivables from Related Parties (Net) | 177,710 | 194,466 | | Lease Liabilities to Related Parties | 3,962 | 5,721 | | Trade Payables to Related Parties | 140,453 | 201,683 | | Other Payables to Related Parties | 101,030 | 102,855 | - Certain bank financing of the Group is guaranteed by Mr. Zhang Jun and Hilong Petroleum [141](index=141&type=chunk) [Other Information](index=52&type=section&id=Other%20Information) This section covers changes in directors' information, disclosures of interests for directors and major shareholders, adherence to corporate governance codes, and the absence of listed securities transactions or interim dividend declarations [Changes in Directors' Information](index=52&type=section&id=Changes%20in%20Directors'%20Information) Since the publication date of the 2024 annual report, Non-executive Director Dr. Fan Renda and Independent Non-executive Director Mr. Huang Wenzong have ceased to serve as independent non-executive directors of certain other listed companies - Non-executive Director Dr. Fan Renda ceased to be an independent non-executive director of CITIC Resources Holdings Limited effective March 18, 2025, and ceased to be an independent non-executive director of Tongfang Konta Technology and Tongfang Guoxin Electronics on June 17, 2025, and June 20, 2025, respectively [151](index=151&type=chunk) - Independent Non-executive Director Mr. Huang Wenzong ceased to be an independent non-executive director of Qizhi Technology (Cayman) Co., Ltd. effective June 4, 2025 [151](index=151&type=chunk) [Disclosure of Interests](index=53&type=section&id=Disclosure%20of%20Interests) As of June 30, 2025, directors and chief executives held interests in the company's shares, with Mr. Zhang Jun holding approximately **48.868%** and Ms. Zhang Shuman holding approximately **1.473%**; major shareholder Hilong Group Limited held **42.17%** of shares; the company's 2023 share award scheme aims to incentivize employees, but no awards were granted as of the period end Directors' Long Positions in the Company's Shares | Director Name | Capacity | Number of Shares Interested | Approximate Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Zhang Jun | Founder/Beneficiary/Controlled Corporation Interest/Beneficial Owner | 829,021,800 | 48.868% | | Ms. Zhang Shuman | Controlled Corporation Interest/Beneficial Owner | 24,992,000 | 1.473% | | Mr. Cao Hongbo | Beneficial Owner | 1,708,000 | 0.101% | | Mr. Huang Wenzong | Beneficial Owner | 1,288,000 | 0.076% | | Dr. Yang Qingli | Spouse's Interest | 77,000 | 0.005% | | Mr. Gao Zhihai | Beneficial Owner | 1,395,000 | 0.082% | Major Shareholders' Long Positions in the Company's Shares | Name of Major Shareholder | Capacity | Number of Shares Interested | Approximate Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Hilong Group Limited | Beneficial Owner | 715,461,000 | 42.17% | | SCTS Capital Pte Ltd. | Nominee | 827,761,800 | 48.79% | | Standard Chartered Trust (Singapore) Limited | Trustee | 827,761,800 | 48.79% | | Ms. Gao Xia | Spouse's Interest | 829,021,800 | 48.87% | - The maximum total number of awarded shares under the 2023 award scheme does not exceed **10%** of the company's issued share capital as of the adoption date (i.e., **169,643,860 shares**) [158](index=158&type=chunk) [Corporate Governance and Securities Transactions](index=56&type=section&id=Corporate%20Governance%20and%20Securities%20Transactions) The company complied with the Corporate Governance Code during the interim period, although the roles of Chairman and Chief Executive Officer are combined in Mr. Zhang Jun, an arrangement the company believes enhances strategic planning efficiency with sufficient safeguards; all directors confirmed compliance with the Model Code for Securities Transactions by Directors; the Audit Committee reviewed the interim results and report - The company complied with the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Zhang Jun, an arrangement the company believes enhances overall strategic planning efficiency, with sufficient safeguards provided by the balanced composition of the Board and its committees [163](index=163&type=chunk) - All directors confirmed compliance with the Model Code for Securities Transactions by Directors throughout the interim period [164](index=164&type=chunk) - The company's Audit Committee reviewed the interim results and interim report for the period [165](index=165&type=chunk) [Listed Securities and Dividends](index=57&type=section&id=Listed%20Securities%20and%20Dividends) During the interim period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any listed securities, nor did they hold any treasury shares; the Board resolved not to declare an interim dividend - During the interim period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, nor did they hold any treasury shares [166](index=166&type=chunk)[167](index=167&type=chunk) - The Board resolved not to declare an interim dividend [168](index=168&type=chunk)

公司資料 2 主要會計數據和財務指標 6 未經審計中期財務報表 合併資產負債表 7 母公司資產負債表 9 合併利潤表 10 母公司利潤表 11 合併現金流量表 12 母公司現金流量表 13 合併所有者權益變動表 14 母公司所有者權益變動表 15 財務報表附註 16 經營情況討論與分析 110 企業管治及其他資料 123 詞彙 127 目錄 | 法定名稱 | 浙江世寶股份有限公司 | | --- | --- | | | Zhejiang Shibao Company Limited* | | 董事會 | 執行董事 | | | 張寶義先生 （副董事長兼總經理） | | | 湯浩瀚先生 （副董事長兼副總經理） | | | 張蘭君女士 （財務負責人） | | | （副總經理） 周 裕先生 | | | 非執行董事 | | | 張世權先生 （董事長） | | | 張世忠先生 | | | 獨立非執行董事 | | | 龔俊傑先生 | | | 閔海濤先生 | | | 徐晋誠先生 | | 監事 | 杜 敏先生 | | | 劉 剛先生 | | | 吳琅平先生 | | | 馮 燕女士 | | | 張治龍先生 | | 高級管理層 | ...