Company Information [GEM Listing Rules Statement](index=2&type=section&id=GEM%20Listing%20Rules%20Statement) This section clarifies the company's GEM listing, emphasizing its role as an SME financing platform, and notes the Stock Exchange and SFC disclaim responsibility for report accuracy - GEM is a market providing listing channels for small and medium-sized enterprises, characterized by potentially **higher investment risks**[4](index=4&type=chunk) - The Stock Exchange and SFC are not responsible for the content of this report, do not guarantee its accuracy or completeness, and explicitly state it does not constitute a recommendation for any securities[4](index=4&type=chunk) [Report Identification Information](index=1&type=section&id=Report%20Identification%20Information) This section identifies the report type and year, specifically the 2025 interim report - This is the 2025 interim report for Ronghe Tour Cultural Holding Limited[1](index=1&type=chunk)[3](index=3&type=chunk) [Company Details](index=4&type=section&id=Company%20Details) This section provides the company's basic registration and operational information, including registered name, place of incorporation, principal place of business, company secretary, auditor, and listing date - The company's registered name is Ronghe Tour Cultural Holding Limited, incorporated in the Cayman Islands[1](index=1&type=chunk)[7](index=7&type=chunk) - The company's principal place of business is in Lockhart Road, Wan Chai, Hong Kong, with Appleby Global Services (Cayman) Limited as company secretary[6](index=6&type=chunk)[7](index=7&type=chunk) - The company's auditor is ZHONGHUI ANDA CPA Limited, and it was listed on GEM on November 12, 2018[8](index=8&type=chunk)[13](index=13&type=chunk) Financial Statements [Consolidated Statement of Comprehensive Income](index=6&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents the company's consolidated comprehensive income for the six months ended June 30, 2025, and the corresponding period in 2024, covering key financial metrics such as revenue, cost, gross profit, and profit for the period - The consolidated statement of comprehensive income covers the six months ended June 30, 2025, and the corresponding period in 2024[9](index=9&type=chunk) Consolidated Statement of Comprehensive Income Key Items (Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | [Amount] | [Amount] | | Cost of sales | [Amount] | [Amount] | | Gross profit | [Amount] | [Amount] | | Other income | [Amount] | [Amount] | | Administrative expenses | [Amount] | [Amount] | | Income tax expense | [Amount] | [Amount] | | Profit (loss) for the period | [Amount] | [Amount] | [Consolidated Statement of Financial Position](index=7&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement presents the company's consolidated financial position as of June 30, 2025, and December 31, 2024, including the main components of assets, liabilities, and equity - The consolidated statement of financial position reports dates as of June 30, 2025, and December 31, 2024[10](index=10&type=chunk) Consolidated Statement of Financial Position Key Items (As of Report Date) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Assets | [Amount] | [Amount] | | Liabilities | [Amount] | [Amount] | | Share capital | [Amount] | [Amount] | | Retained earnings | [Amount] | [Amount] | | Total equity | [Amount] | [Amount] | [Consolidated Statement of Changes in Equity](index=8&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement presents the company's consolidated changes in equity for the six months ended June 30, 2025, and the corresponding period in 2024, including opening balances, changes during the period, and closing balances of share capital, reserves, and retained earnings - The consolidated statement of changes in equity covers the six months ended June 30, 2025, and the corresponding period in 2024[11](index=11&type=chunk) Consolidated Statement of Changes in Equity Key Items (Six Months Ended June 30) | Metric | Share Capital (RMB thousands) | Reserves (RMB thousands) | Retained Earnings (RMB thousands) | Total Equity (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2024 | [Amount] | [Amount] | [Amount] | [Amount] | | Profit (loss) for the period | - | - | [Amount] | [Amount] | | Other comprehensive income | - | [Amount] | - | [Amount] | | Balance at June 30, 2024 | [Amount] | [Amount] | [Amount] | [Amount] | | Balance at January 1, 2025 | [Amount] | [Amount] | [Amount] | [Amount] | | Profit (loss) for the period | - | - | [Amount] | [Amount] | | Other comprehensive income | - | [Amount] | - | [Amount] | | Balance at June 30, 2025 | [Amount] | [Amount] | [Amount] | [Amount] | [Consolidated Statement of Cash Flows](index=9&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the company's cash flows for the six months ended June 30, 2025, and the corresponding period in 2024, categorized into operating, investing, and financing activities - The consolidated statement of cash flows covers the six months ended June 30, 2025, and the corresponding period in 2024[12](index=12&type=chunk) Consolidated Statement of Cash Flows Key Items (Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash from operating activities | [Amount] | [Amount] | | Net cash from investing activities | [Amount] | [Amount] | | Net cash from financing activities | [Amount] | [Amount] | | Net change in cash and cash equivalents | [Amount] | [Amount] | | Cash and cash equivalents at beginning of period | [Amount] | [Amount] | | Cash and cash equivalents at end of period | [Amount] | [Amount] | Notes to the Consolidated Financial Statements [General Information and Basis of Presentation](index=10&type=section&id=General%20Information%20and%20Basis%20of%20Presentation) This section introduces the company's registration information, listing status, principal business activities, and the basis for preparing the interim financial statements, adhering to GEM Listing Rules and Hong Kong Accounting Standards - The company was incorporated in the Cayman Islands on April 13, 2018, and listed on GEM on November 12, 2018[13](index=13&type=chunk) - The company's principal business is investment holding, providing asset management and investment advisory services through its subsidiaries[13](index=13&type=chunk) - The interim financial statements are prepared in accordance with the GEM Listing Rules and Hong Kong Accounting Standards issued by the Hong Kong Institute of Certified Public Accountants[13](index=13&type=chunk) [Significant Accounting Policies and Estimates](index=10&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section outlines the accounting policies and estimation methods adopted in preparing the interim financial statements, noting their consistency with annual financial statements and the adoption of new standards - The accounting policies and estimation methods adopted in these interim financial statements are consistent with those used in the 2024 annual financial statements[13](index=13&type=chunk) - New or revised Hong Kong Financial Reporting Standards have been adopted but have not had a significant impact on these financial statements[13](index=13&type=chunk) [Revenue and Other Income](index=11&type=section&id=Revenue%20and%20Other%20Income) This section details the company's revenue sources for the reporting period, primarily asset management and investment advisory services, along with the composition of other income - The company's revenue primarily derives from asset management and investment advisory services[14](index=14&type=chunk) Revenue and Other Income (Six Months Ended June 30) | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Asset management service fees | [Amount] | [Amount] | | Investment advisory service fees | [Amount] | [Amount] | | Other income | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | [Segment Information](index=11&type=section&id=Segment%20Information) This section states that the company has only one reportable operating segment during the reporting period, which is the provision of asset management and investment advisory services - The company has only one operating segment, which is the provision of asset management and investment advisory services[15](index=15&type=chunk) [Profit (Loss) for the Period](index=12&type=section&id=Profit%20(Loss)%20for%20the%20Period) This section provides a detailed breakdown of the company's profit (loss) for the reporting period, including various income and expense items - Components of profit (loss) for the period include cost of sales, administrative expenses, finance costs, and other items[16](index=16&type=chunk) Profit (Loss) for the Period Components (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of sales | [Amount] | [Amount] | | Administrative expenses | [Amount] | [Amount] | | Finance costs | [Amount] | [Amount] | | Other operating expenses | [Amount] | [Amount] | | Income tax expense | [Amount] | [Amount] | | **Profit (Loss) for the period** | **[Amount]** | **[Amount]** | [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) This section details the company's income tax expense for the reporting period, including Hong Kong profits tax and deferred tax, noting no assessable profits were generated - Income tax expense primarily includes Hong Kong profits tax and deferred tax[17](index=17&type=chunk) - No Hong Kong profits tax was provided as the company did not generate assessable profits during the reporting period[17](index=17&type=chunk) Income Tax Expense (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Hong Kong profits tax | [Amount] | [Amount] | | Deferred tax | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | [Earnings (Loss) Per Share](index=13&type=section&id=Earnings%20(Loss)%20Per%20Share) This section explains the calculation of basic and diluted earnings (loss) per share, noting that diluted earnings per share is not presented due to the absence of dilutive potential ordinary shares - Basic earnings (loss) per share is calculated by dividing profit (loss) for the period by the weighted average number of ordinary shares outstanding[19](index=19&type=chunk) - Diluted earnings (loss) per share is not presented as there were no dilutive potential ordinary shares during the reporting period[19](index=19&type=chunk) Earnings (Loss) Per Share Calculation (Six Months Ended June 30) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit (loss) for the period (RMB thousands) | [Amount] | [Amount] | | Weighted average number of ordinary shares (thousand shares) | [Quantity] | [Quantity] | | **Basic earnings (loss) per share (RMB)** | **[Amount]** | **[Amount]** | [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) This section provides detailed information on trade and other receivables, including their aging analysis and impairment loss - The aging analysis of trade and other receivables shows that most receivables are due within **90 days**[20](index=20&type=chunk) Aging Analysis of Trade and Other Receivables (As of June 30) | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 1-30 days | [Amount] | [Amount] | | 31-60 days | [Amount] | [Amount] | | 61-90 days | [Amount] | [Amount] | | Over 90 days | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | - Impairment loss on trade and other receivables changed during the reporting period[29](index=29&type=chunk) [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) This section provides detailed information on trade and other payables, including their aging analysis - The aging analysis of trade and other payables shows that most payables are due within **90 days**[21](index=21&type=chunk) Aging Analysis of Trade and Other Payables (As of June 30) | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 1-30 days | [Amount] | [Amount] | | 31-60 days | [Amount] | [Amount] | | 61-90 days | [Amount] | [Amount] | | Over 90 days | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | [Borrowings](index=17&type=section&id=Borrowings) This section details the company's borrowings during the reporting period, including the amount, interest rate, and maturity date of unsecured borrowings, noting guarantees from executive directors and management - Unsecured borrowings existed during the reporting period with an annual interest rate of **[Amount]**[22](index=22&type=chunk) - These borrowings are guaranteed by the company's executive directors and management, maturing on [Date] in 2025 and [Date] in 2024[22](index=22&type=chunk) Borrowings (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Unsecured borrowings | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | [Share Capital](index=18&type=section&id=Share%20Capital) This section describes the company's share capital structure, including the number and par value of issued ordinary shares - The company's share capital comprises ordinary shares with a par value of **[Amount] HKD** per share[24](index=24&type=chunk) Changes in Share Capital (As of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Issued share capital at beginning of period | [Amount] | [Amount] | | New shares issued during the period | [Amount] | [Amount] | | **Issued share capital at end of period** | **[Amount]** | **[Amount]** | [Related Party Transactions (Notes)](index=18&type=section&id=Related%20Party%20Transactions%20(Notes)) This section discloses related party transactions during the reporting period, primarily executive directors' remuneration - During the reporting period, the company paid **[Amount]** in remuneration to executive directors[26](index=26&type=chunk) Related Party Transactions (Six Months Ended June 30) | Related Party | Transaction Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Executive Directors | Remuneration | [Amount] | [Amount] | Management Discussion and Analysis [Business Review and Outlook](index=19&type=section&id=Business%20Review%20and%20Outlook) This section outlines the company's business performance, market challenges, and future development strategies, emphasizing business model optimization and new growth area expansion - The company primarily engages in asset management and investment advisory services, operating in Hong Kong and globally[27](index=27&type=chunk) - During the reporting period, the company recorded a net loss of **[Amount] RMB thousands**, compared to a net profit of **[Amount] RMB thousands** in the prior corresponding period[27](index=27&type=chunk) - The company faces challenges from market volatility and regulatory changes but will continue to optimize its business model and explore new growth areas for long-term growth[27](index=27&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) This section analyzes key financial metrics for the reporting period, explaining changes in revenue, costs, and various expenses [Revenue](index=20&type=section&id=Revenue) Revenue decreased compared to the prior corresponding period, primarily due to reduced business volume in asset management and investment advisory services - Revenue decreased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[28](index=28&type=chunk) [Cost of Sales](index=20&type=section&id=Cost%20of%20Sales) Cost of sales followed the revenue trend, decreasing in the current period with the decline in revenue - Cost of sales decreased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[28](index=28&type=chunk) [Selling and Distribution Expenses](index=20&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased in the current period, mainly due to reduced promotional activities - Selling and distribution expenses decreased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[28](index=28&type=chunk) [Other Operating Expenses](index=20&type=section&id=Other%20Operating%20Expenses) Other operating expenses increased in the current period, primarily due to higher general administrative expenses and legal and professional service fees - Other operating expenses increased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[28](index=28&type=chunk) [Impairment Loss on Trade and Other Receivables](index=21&type=section&id=Impairment%20Loss%20on%20Trade%20and%20Other%20Receivables) Impairment loss on trade and other receivables decreased in the current period, mainly due to the recovery of some impaired receivables - Impairment loss on trade and other receivables decreased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[29](index=29&type=chunk) [Total Comprehensive Income](index=21&type=section&id=Total%20Comprehensive%20Income) Total comprehensive income increased in the current period, primarily benefiting from higher interest income from borrowings - Total comprehensive income increased from **[Amount] RMB thousands** in the prior corresponding period of 2024 to **[Amount] RMB thousands** in 2025[29](index=29&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's cash position, borrowing levels, and overall liquidity management strategy, emphasizing prudent cash flow management to support business development - As of June 30, 2025, the company's cash and cash equivalents amounted to **[Amount] RMB thousands**[30](index=30&type=chunk) - As of June 30, 2025, the company's total borrowings amounted to **[Amount] RMB thousands**[30](index=30&type=chunk) - The company will continue to prudently manage cash flow to support business development and operational needs[31](index=31&type=chunk) [Share Capital and Share Options](index=23&type=section&id=Share%20Capital%20and%20Share%20Options) This section outlines the company's share capital structure and share option situation, including the number of issued shares and share options, and their exercise prices - As of June 30, 2025, the company's issued share capital amounted to **[Amount] RMB thousands**[32](index=32&type=chunk) - As of June 30, 2025, **[Quantity]** share options were outstanding, with an exercise price of **[Amount] HKD** per option[32](index=32&type=chunk) [Comparison of Business Objectives with Actual Progress](index=24&type=section&id=Comparison%20of%20Business%20Objectives%20with%20Actual%20Progress) This section compares the company's business objectives set at the time of listing with actual progress during the reporting period, analyzing achievement status and influencing factors - The company's business objectives at listing included expanding asset management business and strengthening investment advisory services[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - Actual progress shows that the company has completed some business expansion during the reporting period, but some objectives have been slow due to market conditions[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - The company will adjust its strategies based on market conditions to achieve long-term development goals[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Use of Proceeds from Listing](index=27&type=section&id=Use%20of%20Proceeds%20from%20Listing) This section details the actual use of net proceeds from the company's listing, comparing it with the original plan - The net proceeds from the listing amounted to **[Amount] RMB thousands**[37](index=37&type=chunk) - The proceeds were primarily used for expanding asset management business, investment advisory services, and general working capital[37](index=37&type=chunk) Use of Proceeds from Listing (As of June 30) | Purpose | Planned Amount (RMB thousands) | Actual Amount Used (RMB thousands) | Unutilized Balance (RMB thousands) | | :--- | :--- | :--- | :--- | | Expand asset management business | [Amount] | [Amount] | [Amount] | | Strengthen investment advisory services | [Amount] | [Amount] | [Amount] | | General working capital | [Amount] | [Amount] | [Amount] | | **Total** | **[Amount]** | **[Amount]** | **[Amount]** | Other Information [Directors' and Chief Executive's Interests](index=28&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) This section discloses the interests of the company's directors and chief executive in the shares, underlying shares, and debentures of the company and its associated corporations - As of June 30, 2025, directors and the chief executive held interests in the company's shares[39](index=39&type=chunk) Directors' and Chief Executive's Interests (As of June 30) | Name | Nature of Interest | Number of Shares Held (shares) | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | :--- | | [Director Name 1] | Beneficial owner | [Quantity] | [Percentage] | | [Director Name 2] | Beneficial owner | [Quantity] | [Percentage] | [Major Shareholders' and Other Persons' Interests](index=29&type=section&id=Major%20Shareholders'%20and%20Other%20Persons'%20Interests) This section discloses the interests of major shareholders, other than directors and the chief executive, in the company's shares and underlying shares - As of June 30, 2025, major shareholders (not directors or chief executive) held interests in the company's shares[40](index=40&type=chunk) Major Shareholders' Interests (As of June 30) | Shareholder Name | Nature of Interest | Number of Shares Held (shares) | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | :--- | | [Shareholder Name 1] | Beneficial owner | [Quantity] | [Percentage] | | [Shareholder Name 2] | Beneficial owner | [Quantity] | [Percentage] | [Related Party Transactions (Other Information)](index=30&type=section&id=Related%20Party%20Transactions%20(Other%20Information)) This section confirms that, apart from directors' remuneration disclosed in the notes to the financial statements, no other significant related party transactions occurred during the reporting period - For the six months ended June 30, 2025, no other significant related party transactions occurred[41](index=41&type=chunk) [Compliance with Corporate Governance Code](index=30&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) This section states that the company has fully complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules during the reporting period - The company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules[41](index=41&type=chunk) [Changes in Listed Securities](index=31&type=section&id=Changes%20in%20Listed%20Securities) This section confirms that there were no changes in the company's listed securities during the reporting period - As of June 30, 2025, there were no changes in the company's listed securities[42](index=42&type=chunk) [Auditor](index=31&type=section&id=Auditor) This section identifies the company's auditor and states that they have reviewed the interim financial statements - The company's auditor is ZHONGHUI ANDA CPA Limited[42](index=42&type=chunk) - The auditor has reviewed these interim financial statements and confirmed their compliance with relevant accounting standards and listing rules[42](index=42&type=chunk) [Board of Directors](index=31&type=section&id=Board%20of%20Directors) This section lists the members of the company's Board of Directors - The Board of Directors includes executive directors [Name] and [Name][43](index=43&type=chunk)

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group's total revenue for the six months ended June 30, 2025, was RMB 87.28 billion, a 10.8% year-on-year decrease, with profit attributable to owners of the parent at RMB 661.2 million, down 8.2% year-on-year, primarily due to a shift from profit to loss in the Happiness segment despite growth in Health and Wealth segments Financial Performance (RMB million) | For the six months ended June 30 | 2025 | 2024 | | :--- | :--- | :--- | | **Total Revenue** | 87,283.1 | 97,838.4 | | Health | 22,565.2 | 23,260.5 | | Happiness | 33,721.4 | 43,172.1 | | Wealth | 27,828.3 | 26,947.3 | | Intelligent Manufacturing | 4,021.3 | 5,331.6 | | **Profit/(Loss) attributable to owners of the parent** | 661.2 | 720.1 | | Health | 755.8 | 509.7 | | Happiness | (434.6) | 164.3 | | Wealth | 243.1 | 26.8 | | Intelligent Manufacturing | 137.8 | 45.1 | | **Earnings per share - Basic (RMB)** | 0.08 | 0.09 | [Business Overview](index=2&type=section&id=Business%20Overview) Facing macroeconomic challenges in H1 2025, the Group steadfastly executed its "Lean and Fit" strategy, focusing on core industries of healthcare, consumer, and insurance, while strengthening its business foundation through technological innovation and global expansion, resulting in increased overseas revenue contribution, significant R&D investment, and optimized asset portfolio with reduced financing costs - The Group has successfully transformed into an innovation-driven global family consumer industry group, building an industrial ecosystem covering three core segments: Health, Happiness, and Wealth[4](index=4&type=chunk) - The Group continues to deepen its "in-depth industrial operation + industrial investment" dual-driver strategy, forming unique competitive advantages in global business layout, technological innovation conversion, ecosystem building, and FES management system optimization[4](index=4&type=chunk) - The Group steadfastly executed its "Lean and Fit" strategy, continuously focusing on core industries of healthcare, consumer, and insurance, and strengthening its business foundation[6](index=6&type=chunk) - During the reporting period, the Group's overseas business revenue reached **RMB 46.67 billion**, accounting for **53% of total revenue**, an increase of **6.6 percentage points** compared to the same period in 2024[6](index=6&type=chunk) - The Group's overall R&D investment reached **RMB 3.6 billion**, with a particular focus on medical research and development[6](index=6&type=chunk) [Strategy and Development](index=2&type=section&id=Strategy%20and%20Development) The Group is committed to global cultivation and technological innovation, optimizing its asset portfolio, and diversifying financing channels to enhance resilience and drive sustainable growth [Global Cultivation and Technological Innovation](index=2&type=section&id=Global%20Cultivation%20and%20Technological%20Innovation) The Group has a global industrial presence in over 40 countries and regions, providing high-quality products and innovative solutions to global family customers, despite a revenue decline primarily due to Yuyuan Inc.'s performance, offset by strong insurance business growth - The Group has an industrial presence in over **40 countries and regions** globally, committed to providing high-quality products and services and innovative solutions to global family customers[5](index=5&type=chunk) - During the reporting period, the Group's revenue reached **RMB 87.28 billion**, a **10.8% year-on-year decrease**, primarily due to a decline in Yuyuan Inc.'s revenue, but with strong growth in the insurance business[6](index=6&type=chunk) - The Group's industrial operating profit reached **RMB 3.15 billion**, a **9.3% year-on-year decrease**, and net profit attributable to the parent company was **RMB 660 million**, an **8.2% year-on-year decrease**[8](index=8&type=chunk) [Asset Portfolio Optimization and Diversification of Financing Channels](index=3&type=section&id=Asset%20Portfolio%20Optimization%20and%20Diversification%20of%20Financing%20Channels) The Group maintains a proactive and prudent liquidity and debt management policy, intensifying the disposal of non-core assets, strengthening cash reserves, and successfully issuing bonds while reducing financing costs - The Group adheres to a proactive and prudent liquidity and debt management policy, increasing the disposal of non-core assets to strengthen cash reserves[9](index=9&type=chunk) - In H1 2025, the Group successfully issued USD bonds and domestic bonds, and for the 9th consecutive year, organized an overseas syndicated loan, with financing costs decreasing by over **30 basis points to 5.3%**[9](index=9&type=chunk) - The Group has prioritized debt reduction as a financial strategic focus since 2020, completing the exit of over **RMB 10 billion** equivalent in non-strategic and non-core assets in H1 2025[10](index=10&type=chunk) [Enhancing Quality and Efficiency of Overseas Business, Accelerating Global Deep Operations](index=3&type=section&id=Enhancing%20Quality%20and%20Efficiency%20of%20Overseas%20Business%2C%20Accelerating%20Global%20Deep%20Operations) As a global enterprise rooted in China, the Group continues to enhance quality and efficiency across multiple countries and regions, strengthening deep operations and ecological synergy capabilities [Global R&D and Business Expansion Capabilities](index=4&type=section&id=Global%20R%26D%20and%20Business%20Expansion%20Capabilities) Henlius's Hansizhuang® received marketing approval in the EU and other regions, becoming the first anti-PD-1 monoclonal antibody approved for small cell lung cancer in the EU, now approved in over 30 countries and regions, while HLX22 received orphan drug designation from the US FDA and European Commission for gastric cancer treatment - Henlius's Hansizhuang® received marketing approval in the EU and other regions, becoming the **first anti-PD-1 monoclonal antibody** approved for small cell lung cancer indication in the EU, and has been approved in over **30 countries and regions** globally[14](index=14&type=chunk) - HLX22 (recombinant humanized anti-HER2 monoclonal antibody injection) received orphan drug designation from the US FDA and European Commission for gastric cancer treatment[14](index=14&type=chunk) [Global Business Growth of Overseas Enterprises](index=4&type=section&id=Global%20Business%20Growth%20of%20Overseas%20Enterprises) Fidelidade received an "A" rating from S&P, Hainan Mining's Bougouni Lithium Mine started trial production with overseas revenue rising to 57%, Yuyuan Lantern Festival expanded to Vietnam and Thailand, and Club Med's H1 2025 global turnover reached a new high - Fidelidade received its first "A" rating from S&P, recognizing its high-quality and balanced business portfolio, continuous international expansion, and stable financial performance[13](index=13&type=chunk) - Hainan Mining's Bougouni Lithium Mine Phase I in Mali officially started trial production, accelerating the creation of a "mining + energy" network covering West Africa, the Middle East, and Southeast Asia, with overseas revenue proportion rising to **57%**[14](index=14&type=chunk) - Following its debut in Paris at the end of 2023, the Yuyuan Lantern Festival continued to appear in Hanoi, Vietnam, and Bangkok, Thailand, in 2025, and the Chinese time-honored brand Songhelou opened its first overseas store in London, UK[14](index=14&type=chunk) - Fosun Tourism Group's Club Med achieved a record-high global turnover in H1 2025, growing by **3.8%** compared to the same period in 2024[15](index=15&type=chunk) [Global Capital Operation Capabilities](index=5&type=section&id=Global%20Capital%20Operation%20Capabilities) The Group completed the sale of HAL shares while retaining HAFS for asset services, Fosun International Securities and Asset Management upgraded licenses for virtual asset services, and strategic collaborations deepened in the Middle East - The Group completed the sale of its shares in German private bank HAL, but fully retained HAFS, its asset services entity, which will expand into emerging markets leveraging its global network[18](index=18&type=chunk) - Fosun International Securities and Fosun International Asset Management received approval from the Hong Kong SFC to upgrade their licenses, allowing them to provide virtual asset trading and management services; Star Road Technology launched a global leading one-stop RWA technology, issuance, and distribution platform[18](index=18&type=chunk) - The Group's presence in the Middle East continues to deepen, with Fosun Pharma forming a strategic partnership with Fakeeh Care Group, and FFT establishing a joint venture with Khaled Juffali Company to provide production line solutions for Saudi Arabia's electric vehicle industry[18](index=18&type=chunk) [Multi-dimensional Industrial Ecosystem Resonance, Activating Growth Flywheel](index=5&type=section&id=Multi-dimensional%20Industrial%20Ecosystem%20Resonance%2C%20Activating%20Growth%20Flywheel) The Group leverages its "515 Fosun Family Day" to foster cross-business and cross-segment synergy, covering over 23,000 employee families, and plans to enhance customer asset value and operational efficiency through precise services and value creation - The Group linked over **50 enterprises** within its ecosystem through the "515 Fosun Family Day" event, forming cross-business and cross-segment synergistic effects, covering over **23,000 employee families**[17](index=17&type=chunk) - In the future, the Group will fully leverage its ecological synergy advantages to continuously enhance customer asset value and operational efficiency through precise services and value creation[19](index=19&type=chunk) [Technological Innovation Drives Product Power, Laying Foundation for Sustainable Development](index=6&type=section&id=Technological%20Innovation%20Drives%20Product%20Power%2C%20Laying%20Foundation%20for%20Sustainable%20Development) The Group emphasizes technological innovation as a core strategic pillar, building a "self-R&D + investment incubation + ecological cooperation" integrated global innovation system, with notable advancements in healthcare, happiness, and wealth segments - The Group emphasizes technological innovation as a core strategic pillar, building a "self-R&D + investment incubation + ecological cooperation" integrated global innovation system[20](index=20&type=chunk) - Health Segment: Fosun Pharma's 4 innovative drugs with 5 indications, developed independently or licensed-in, received marketing approval domestically and internationally, filling gaps in rare disease oncology treatment[23](index=23&type=chunk) - Happiness Segment: Club Med continues to implement its "Happy Digitalization" strategy, investing over **EUR 175 million** in the past decade to enhance guest experience and operational efficiency[23](index=23&type=chunk) - Wealth Segment: Fidelidade applied AI large model technology, increasing medical reimbursement invoice recognition rate to **51%** and auto insurance claim rate to **66%**[24](index=24&type=chunk) [Building FES System, Efficient Management for Enduring Success](index=7&type=section&id=Building%20FES%20System%2C%20Efficient%20Management%20for%20Enduring%20Success) FES is the Group's core business management system, evolved to build a century-old enterprise and foster a culture of continuous improvement, with 56 FES tools certified and promoted, 1,443 experts trained, and 947 improvement projects executed, leading to enhanced efficiency in operations like Hainan Mining's smart ore sorting and Bajiaochang gas field's production growth - FES is the Group's core business management system, evolved to build a century-old enterprise and establish a culture of continuous improvement[26](index=26&type=chunk) - During the reporting period, the Group completed the certification and promotion of **56 FES tools**, trained and certified **1,443 experts**, and executed **947 improvement projects**[27](index=27&type=chunk) - Hainan Mining improved efficiency through photoelectric smart ore sorting technology, and the Bajiaochang gas field achieved a **40% year-on-year increase** in production[26](index=26&type=chunk) [Continuously Deepening Business for Good, Diverse Initiatives for Sustainable Development](index=8&type=section&id=Continuously%20Deepening%20Business%20for%20Good%2C%20Diverse%20Initiatives%20for%20Sustainable%20Development) The Group was again recognized in S&P Global's "Sustainability Yearbook 2025" and ranked in the top 1%, also listed in the FTSE4Good Index for four consecutive years, demonstrating its commitment to ESG through initiatives like donating antimalarial drugs to Africa and supporting rural doctors - The Group was again successfully selected for S&P Global's "Sustainability Yearbook 2025" and ranked in the **top 1%**, and has been included in the FTSE4Good Index for **four consecutive years**[29](index=29&type=chunk) - Fosun Pharma pledged to donate **RMB 10 million** worth of artemisinin-based antimalarial drugs to Africa over the next three years, having cumulatively treated over **84 million severe malaria patients** globally[30](index=30&type=chunk) - The Rural Doctor Program covers **78 project counties** in **16 provinces, municipalities, and autonomous regions**, supporting **25,000 rural doctors** and benefiting **16.34 million rural residents**[31](index=31&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) In H1 2025, the Group's total revenue decreased by 10.8% to RMB 87.28 billion, and net profit attributable to the parent decreased by 8.2% to RMB 661.2 million, primarily due to a decline in the Happiness segment, despite profit growth in Health and Wealth segments, while total assets decreased by 7.6% but the asset base remained stable, with all business segments continuing to deepen operations, focusing on innovation and global expansion to navigate a complex macroeconomic environment - As of the end of the reporting period, the Group's equity attributable to owners of the parent reached **RMB 118.1379 billion**, and total assets reached **RMB 735.6872 billion**, a **7.6% decrease** compared to the end of 2024[33](index=33&type=chunk) - During the reporting period, the Group's revenue was **RMB 87.2831 billion**, a **10.8% year-on-year decrease**, primarily due to a decline in revenue from the Happiness segment[34](index=34&type=chunk) [Business Review](index=9&type=section&id=Business%20Review) This section provides a detailed review of the Group's business performance, including segment-wise revenue and profit analysis, asset allocation, and the corporate structure of its principal businesses, offering insights into the financial contributions and strategic positioning of each segment [Segment Revenue and Profit](index=10&type=section&id=Segment%20Revenue%20and%20Profit) Group Segment Revenue (RMB million) | Segment | For the six months ended June 30, 2025 | Share | For the six months ended June 30, 2024 | Share | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Health | 22,565.2 | 25.6% | 23,260.5 | 23.6% | (3.0%) | | Happiness | 33,721.4 | 38.3% | 43,172.1 | 43.7% | (21.9%) | | Wealth | 27,828.3 | 31.5% | 26,947.3 | 27.3% | 3.3% | | Insurance | 20,890.3 | 23.7% | 18,457.6 | 18.7% | 13.2% | | Asset Management | 6,938.0 | 7.8% | 8,489.7 | 8.6% | (18.3%) | | Intelligent Manufacturing | 4,021.3 | 4.6% | 5,331.6 | 5.4% | (24.6%) | | Inter-segment Eliminations | (853.1) | | (873.1) | | | | Total | 87,283.1 | 100.0% | 97,838.4 | 100.0% | (10.8%) | Group Segment Profit/(Loss) Attributable to Owners of the Parent (RMB million) | Segment | For the six months ended June 30, 2025 | Share | For the six months ended June 30, 2024 | Share | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Health | 755.8 | 107.6% | 509.7 | 68.3% | 48.3% | | Happiness | (434.6) | (61.9%) | 164.3 | 22.0% | (364.5%) | | Wealth | 243.1 | 34.7% | 26.8 | 3.7% | 807.1% | | Insurance | 1,217.9 | 173.5% | 1,174.9 | 157.6% | 3.7% | | Asset Management | (974.8) | (138.8%) | (1,148.1) | (153.9%) | 15.1% | | Intelligent Manufacturing | 137.8 | 19.6% | 45.1 | 6.0% | 205.5% | | Inter-segment Eliminations | (40.9) | | (25.8) | | | | Total | 661.2 | 100.0% | 720.1 | 100.0% | (8.2%) | [Asset Allocation](index=10&type=section&id=Asset%20Allocation) Group Asset Allocation (RMB million) | Segment | As of June 30, 2025 | Share | As of December 31, 2024 | Share | Change vs. End of 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Health | 133,231.6 | 17.9% | 130,092.2 | 16.2% | 2.4% | | Happiness | 190,548.6 | 25.6% | 187,879.2 | 23.3% | 1.4% | | Wealth | 391,071.6 | 52.5% | 459,114.7 | 57.0% | (14.8%) | | Insurance | 217,053.0 | 29.1% | 190,995.3 | 23.7% | 13.6% | | Asset Management | 174,018.6 | 23.4% | 268,119.4 | 33.3% | (35.1%) | | Intelligent Manufacturing | 29,827.8 | 4.0% | 27,895.6 | 3.5% | 6.9% | | Inter-segment Eliminations | (8,992.4) | | (8,453.7) | | | | Total | 735,687.2 | 100.0% | 796,528.0 | 100.0% | (7.6%) | [Corporate Structure of Principal Businesses](index=11&type=section&id=Corporate%20Structure%20of%20Principal%20Businesses) The Group's simplified corporate structure diagram outlines significant investments as of June 30, 2025, including consolidated and unconsolidated entities across the Health, Happiness, Wealth, and Intelligent Manufacturing segments - The Group's simplified corporate structure diagram outlines significant investments as of June 30, 2025, including consolidated and unconsolidated entities, covering the Health, Happiness, Wealth, and Intelligent Manufacturing segments[42](index=42&type=chunk) [Health Segment](index=13&type=section&id=Health%20Segment) The Health segment's revenue decreased by 3.0% year-on-year, primarily due to a decline in Fosun Pharma's revenue, while profit attributable to owners of the parent increased by 48.3% year-on-year, mainly driven by higher profits from Fosun Pharma Health Segment Financial Performance (RMB million) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 22,565.2 | 23,260.5 | (3.0%) | | Profit attributable to owners of the parent | 755.8 | 509.7 | 48.3% | - Health segment revenue decreased by **3.0% year-on-year**, primarily due to a decline in Fosun Pharma's revenue; profit attributable to owners of the parent increased by **48.3% year-on-year**, mainly due to higher profits from Fosun Pharma[47](index=47&type=chunk) [Fosun Pharma](index=13&type=section&id=Fosun%20Pharma) Fosun Pharma's operating revenue decreased, but innovative drug revenue grew steadily by over RMB 4.3 billion, a 14.26% year-on-year increase, with net profit attributable to shareholders at RMB 1.702 billion and operating cash flow increasing by 11.90%, supported by RMB 2.584 billion in R&D investment focused on innovative drugs and high-value medical devices - Fosun Pharma achieved operating revenue of **RMB 19.426 billion**, a slight decrease, but innovative drug revenue grew steadily by over **RMB 4.3 billion**, a **14.26% year-on-year increase**[48](index=48&type=chunk) - Net profit attributable to Fosun Pharma shareholders was **RMB 1.702 billion**, and net cash flow from operating activities was **RMB 2.134 billion**, a **11.90% year-on-year increase**[48](index=48&type=chunk) - R&D investment in H1 2025 totaled **RMB 2.584 billion**, focusing on innovative drugs and high-value medical devices, with 4 innovative drugs across 5 indications receiving marketing approval[49](index=49&type=chunk) [Henlius](index=14&type=section&id=Henlius) Henlius's total revenue increased to approximately RMB 2.8195 billion, with overseas product profit more than doubling, driven by increased R&D expenditure of approximately RMB 995.4 million for innovative projects, and its 6 products (25 indications) now approved in nearly 60 countries/regions, benefiting over 850,000 patients globally - Henlius's total revenue was approximately **RMB 2.8195 billion**, an increase of approximately **RMB 73.4 million year-on-year**, with overseas product profit achieving over **2x breakthrough growth**[51](index=51&type=chunk) - R&D expenditure was approximately **RMB 995.4 million**, an increase of approximately **RMB 169.8 million year-on-year**, used to increase investment in innovative R&D projects[51](index=51&type=chunk) - As of August 22, 2025, Henlius's **6 products (25 indications)** have been successfully approved for marketing in nearly **60 countries/regions**, including China, the US, and Europe, benefiting over **850,000 patients** globally[52](index=52&type=chunk) [Gland Pharma](index=15&type=section&id=Gland%20Pharma) Gland Pharma's consolidated operating revenue remained flat, but post-tax profit reached **INR 4.02 billion**, a 20% year-on-year increase, with a post-tax profit margin of 13.7%, driven by the launch of 12 molecular drugs in the US market and a focus on expanding capacity, strengthening CDMO capabilities, and deepening biopharmaceutical collaborations - Gland Pharma's consolidated operating revenue remained flat, with post-tax profit reaching **INR 4.02 billion**, a **20% year-on-year increase**, and a post-tax profit margin of **13.7%**[55](index=55&type=chunk) - In H1 2025, 12 molecular drugs were launched in the US market, with a commitment to expanding production capacity and enhancing complex injectable and CDMO businesses based on a strong R&D pipeline[55](index=55&type=chunk)[56](index=56&type=chunk) - The company focuses on the GLP-1 sector and capacity expansion, strengthening CDMO capabilities, deepening biopharmaceutical collaborations, and implementing a country-specific market expansion strategy[57](index=57&type=chunk) [Sisram Medical](index=15&type=section&id=Sisram%20Medical) Sisram Medical's global sales and distribution network generated total revenue of **USD 165.5 million**, a 1.9% year-on-year decrease, with profit for the period at **USD 9.0 million**, a 31.9% year-on-year reduction, while launching new AI-based skincare and imaging platforms and expanding its injectable filler business globally - Sisram Medical's global sales and distribution network generated total revenue of **USD 165.5 million**, a **1.9% year-on-year decrease**, with profit for the period at **USD 9.0 million**, a **31.9% year-on-year reduction**[59](index=59&type=chunk)[60](index=60&type=chunk) - Two new products were launched: Universkin, an AI-based personalized skincare system, and Alma IQ™, a new generation imaging platform[61](index=61&type=chunk) - The company is strengthening its global footprint in the injectable filler business and building a commercialization foundation for the peptide-powered botulinum toxin product DAXXIFY in mainland China[61](index=61&type=chunk) [Fosun Health](index=16&type=section&id=Fosun%20Health) Fosun Health controls 19 comprehensive and specialized hospitals, clinics, and third-party testing institutions with 6,600 approved beds and 9 internet hospital licenses, having added 7 new provincial/municipal key specialties, totaling 75, with all four Greater Bay Area hospitals establishing international medical centers and implementing AI-powered smart healthcare services - Fosun Health controls **19 comprehensive hospitals, specialized hospitals, clinics, and third-party testing institutions**, with a total of **6,600 approved beds** and holds **9 internet hospital licenses**[63](index=63&type=chunk) - **7 new provincial/municipal key specialties** were added, totaling **75**; all four Greater Bay Area hospitals have established international medical centers[63](index=63&type=chunk) - In smart healthcare and AI, the four Greater Bay Area hospitals provide AI smart outbound calling services for overdue patients, and Fosun Health Cloud HIS launched an AI assistant to improve doctors' diagnostic efficiency[63](index=63&type=chunk) [Fosun Eldercare (Shanghai Zhuli)](index=17&type=section&id=Fosun%20Eldercare%20%28Shanghai%20Zhuli%29) Fosun Eldercare has invested in and operates elderly care and nursing institutions in nearly ten cities, securing over 11,000 beds and generating operating revenue of RMB 401 million, with its "large annuity insurance + eldercare community residency rights" product in collaboration with insurance companies achieving new premium sales of RMB 2.41 billion - Fosun Eldercare has invested in and operates elderly care and nursing institutions in nearly **ten cities**, securing a total of over **11,000 beds**, and achieved operating revenue of **RMB 401 million**[65](index=65&type=chunk) - The "large annuity insurance + eldercare community residency rights" insurance product, in collaboration with insurance companies, achieved new premium sales of **RMB 2.41 billion**[66](index=66&type=chunk) [Happiness Segment](index=18&type=section&id=Happiness%20Segment) The Happiness segment's revenue decreased by 21.9% year-on-year, resulting in a loss attributable to owners of the parent of RMB 434.6 million, primarily due to a reduction in Yuyuan Inc.'s net profit attributable to the parent Happiness Segment Financial Performance (RMB million) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 33,721.4 | 43,172.1 | (21.9%) | | (Loss)/Profit attributable to owners of the parent | (434.6) | 164.3 | (364.5%) | - Happiness segment revenue decreased by **21.9% year-on-year**, and loss attributable to owners of the parent was **RMB 434.6 million**, primarily due to a reduction in Yuyuan Inc.'s net profit attributable to the parent[68](index=68&type=chunk) [Yuyuan Inc.](index=18&type=section&id=Yuyuan%20Inc.) Yuyuan Inc. reported operating revenue of RMB 19.112 billion, a 30.68% year-on-year decrease, with net profit attributable to shareholders at RMB 62.81 million, a 94.50% year-on-year reduction, despite a rebound in Q2 for the jewelry fashion group and a 55% increase in GMV for Yuyuan Garden Phase I, while its time-honored restaurant brand Songhelou Noodle House successfully launched in London - Yuyuan Inc. achieved operating revenue of **RMB 19.112 billion**, a **30.68% year-on-year decrease**; net profit attributable to Yuyuan Inc. shareholders was **RMB 62.81 million**, a **94.50% year-on-year reduction**[69](index=69&type=chunk) - The jewelry fashion group's performance was under pressure, but Q2 operating revenue showed a rebound trend; Yuyuan Garden Phase I achieved a Gross Merchandise Volume (GMV) of **RMB 2.61 billion** in H1, a **55% year-on-year increase**[70](index=70&type=chunk) - "Songhelou Noodle House" successfully debuted on the Thames, marking a global breakthrough for the time-honored catering IP[70](index=70&type=chunk) [Shede Spirits](index=19&type=section&id=Shede%20Spirits) Shede Spirits reported operating revenue of RMB 2.7012 billion, a 17.4% year-on-year decrease, with net profit attributable to shareholders at RMB 443.3 million, a 25.0% year-on-year decrease, despite mid-to-high-end liquor revenue reaching RMB 1.9733 billion, and the company expanded its digital ecosystem marketing and overseas presence to 40 countries, though the number of distributors decreased to 2,585 - Shede Spirits achieved operating revenue of **RMB 2.7012 billion**, a **17.4% year-on-year decrease**; net profit attributable to Shede Spirits shareholders was **RMB 443.3 million**, a **25.0% year-on-year decrease**[73](index=73&type=chunk) - Mid-to-high-end liquor achieved operating revenue of **RMB 1.9733 billion**, with deepened digital ecosystem marketing, expanded ecosystem reach, and accelerated overseas business expansion, now present in **40 countries and regions**[73](index=73&type=chunk) - As of the end of the reporting period, the total number of distributors was **2,585**, a decrease of **78** compared to the end of 2024[74](index=74&type=chunk) [Fosun Tourism Group](index=19&type=section&id=Fosun%20Tourism%20Group) Fosun Tourism Group successfully completed its privatization and delisted from the Hong Kong Stock Exchange, with tourism operations revenue reaching RMB 10.231 billion, a 1.6% year-on-year increase (excluding Thomas Cook impact), and Club Med's turnover growing by 3.8% to RMB 9.2532 billion, achieving a global average occupancy rate of 69.8% and an average daily bed price of RMB 2,021.2 - Fosun Tourism Group has successfully completed its privatization and officially delisted from the Hong Kong Stock Exchange[75](index=75&type=chunk) - Tourism operations revenue reached **RMB 10.231 billion**, a **1.6% year-on-year increase** (excluding the impact of Thomas Cook); revenue was **RMB 9.5345 billion**, a **1.3% year-on-year increase**[76](index=76&type=chunk) - Club Med's turnover was **RMB 9.2532 billion**, a **3.8% year-on-year increase**; global average room occupancy rate reached **69.8%**, and average daily bed price was **RMB 2,021.2**, a **5.1% year-on-year increase**[77](index=77&type=chunk) [Lanvin Group](index=20&type=section&id=Lanvin%20Group) Lanvin Group's overall revenue faced pressure, reaching **EUR 133.4 million**, a 22.0% year-on-year decrease, despite flagship brand Lanvin's artistic director Peter Copping's debut at Paris Fashion Week and Sergio Rossi's new collection, as the company actively adjusts its strategic layout, appoints new executives, and plans to expand into high-growth regions like the Middle East - Lanvin Group's overall revenue faced pressure, achieving operating revenue of **EUR 133.4 million**, a **22.0% year-on-year decrease**[81](index=81&type=chunk) - Flagship brand Lanvin's artistic director Peter Copping presented his debut show at Paris Fashion Week, and Sergio Rossi launched its first collection under new creative director Paul Andrew[81](index=81&type=chunk) - The company is actively adjusting its strategic layout, appointing an Executive President and Co-CEO, accelerating corporate transformation, and planning to expand business into high-growth regions such as the Middle East[82](index=82&type=chunk) [Wealth Segment](index=21&type=section&id=Wealth%20Segment) The Wealth segment encompasses two sub-segments: Insurance and Asset Management (including Hive City asset management and investment asset management) - The Wealth segment includes two sub-segments: Insurance and Asset Management (Hive City asset management and investment asset management)[83](index=83&type=chunk) [Insurance Business](index=21&type=section&id=Insurance%20Business) The Insurance segment's revenue increased by 13.2% year-on-year, with profit attributable to owners of the parent rising by 3.7% year-on-year, primarily driven by increased profits from European insurance businesses Insurance Segment Financial Performance (RMB million) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 20,890.3 | 18,457.6 | 13.2% | | Profit attributable to owners of the parent | 1,217.9 | 1,174.9 | 3.7% | - Insurance segment revenue increased by **13.2% year-on-year**, and profit attributable to owners of the parent increased by **3.7% year-on-year**, primarily due to increased profits from European insurance businesses[86](index=86&type=chunk) [Fidelidade](index=22&type=section&id=Fidelidade) Fidelidade's Gross Written Premiums (GWP) reached **EUR 3.271 billion**, a 16.5% year-on-year increase, achieving a 29.3% market share in Portugal, with international business accounting for 28.2% of total business and overseas GWP reaching **EUR 924 million**, while net profit grew by 27.6% to **EUR 133 million**, and the company achieved significant ESG recognition - Fidelidade's Gross Written Premiums (GWP) reached **EUR 3.271 billion**, a **16.5% year-on-year increase**, achieving a **29.3% market share** in the overall Portuguese market[87](index=87&type=chunk) - International business accounted for **28.2% of total business**, with overseas GWP reaching **EUR 924 million**; net profit was **EUR 133 million**, a **27.6% year-on-year increase**[88](index=88&type=chunk) - Achieved significant achievements in ESG, receiving a CDP climate rating of B from the international environmental disclosure organization and an upgraded "Low Risk" ESG rating from Sustainalytics[89](index=89&type=chunk) [Peak Re](index=23&type=section&id=Peak%20Re) Peak Re achieved gross written premiums of **USD 1.061 billion** and reinsurance revenue of **USD 661 million**, increasing by 25.1% and 36.8% year-on-year respectively, maintaining an A- (Excellent) rating from A.M. Best, expanding its presence in Asian emerging markets, and obtaining a 3B insurance company license for its Bermuda subsidiary, with net profit reaching **USD 88.8 million** and net assets growing to **USD 1.52 billion** - Peak Re achieved gross written premiums of **USD 1.061 billion** and reinsurance revenue of **USD 661 million**, increasing by **25.1% and 36.8% year-on-year** respectively[90](index=90&type=chunk) - Continuously maintained an A- (Excellent) rating from A.M. Best, deepened its presence in Asian emerging markets, and obtained a 3B insurance company license for its Bermuda subsidiary[90](index=90&type=chunk)[91](index=91&type=chunk) - Achieved net profit of **USD 88.8 million**, with net assets increasing from **USD 1.43 billion** at the end of 2024 to **USD 1.52 billion** at the end of the reporting period[92](index=92&type=chunk) [Fosun-Prudential Life](index=23&type=section&id=Fosun-Prudential%20Life) Fosun-Prudential Life's total premium income was RMB 5.365 billion, a 0.8% year-on-year increase, with a comprehensive investment yield of 2.8%, and cumulatively achieved 3,938 eldercare community policies, corresponding to premiums of RMB 3.90 billion, continuously providing high-quality eldercare benefits to customers - Fosun-Prudential Life's total premium income was **RMB 5.365 billion**, a **0.8% year-on-year increase**, with a comprehensive investment yield of **2.8%**[93](index=93&type=chunk) - Cumulatively achieved **3,938 eldercare community policies**, corresponding to premiums of **RMB 3.90 billion**, continuously providing high-quality eldercare benefits to customers[94](index=94&type=chunk) [Fosun United Health Insurance](index=24&type=section&id=Fosun%20United%20Health%20Insurance) Fosun United Health Insurance achieved insurance business revenue of RMB 3.642 billion, a 31.1% year-on-year increase, and net profit of RMB 32.9 million, a RMB 47.9 million year-on-year increase, serving over 7.19 million customers, and actively promoting its "insurance + eldercare" ecological synergy strategy with 1,733 eldercare community policies corresponding to RMB 1.630 billion in premiums - Fosun United Health Insurance achieved insurance business revenue of **RMB 3.642 billion**, a **31.1% year-on-year increase**; net profit was **RMB 32.9 million**, a **RMB 47.9 million year-on-year increase**[95](index=95&type=chunk) - Cumulatively served over **7.19 million customers**, an increase of **2.3%** compared to the end of 2024[95](index=95&type=chunk) - Actively promoted the "insurance + eldercare" ecological synergy strategy, cumulatively achieving **1,733 eldercare community policies**, corresponding to premiums of **RMB 1.630 billion**[96](index=96&type=chunk) [Asset Management Business](index=25&type=section&id=Asset%20Management%20Business) The Asset Management segment's revenue decreased by 18.3% year-on-year, primarily due to reduced revenue from Hive City-related businesses, while the loss attributable to owners of the parent decreased by 15.1%, mainly due to an increase in share of profits from associates Asset Management Segment Financial Performance (RMB million) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 6,938.0 | 8,489.7 | (18.3%) | | Loss attributable to owners of the parent | (974.8) | (1,148.1) | 15.1% | - Asset Management segment revenue decreased by **18.3% year-on-year**, primarily due to reduced revenue from Hive City-related businesses; loss attributable to owners of the parent decreased by **15.1%**, mainly due to an increase in share of profits from associates[99](index=99&type=chunk) [Fosun Capital](index=25&type=section&id=Fosun%20Capital) Fosun Capital manages 30 funds with over RMB 20 billion in assets, with 6 invested companies applying for IPOs and 2 successfully listed during the reporting period - Fosun Capital manages **30 funds** with assets under management exceeding **RMB 20 billion**; during the reporting period, **6 invested companies** applied for IPOs, of which **2 have successfully listed**[100](index=100&type=chunk) [Fosun RZ Capital (Shanghai Zhiying)](index=25&type=section&id=Fosun%20RZ%20Capital%20%28Shanghai%20Zhiying%29) Fosun RZ Capital manages nearly RMB 10 billion in assets, having invested in over a hundred quality enterprises, with 4 new investments in AI+robotics, intelligent manufacturing, and new overseas expansion sectors, and 10 projects successfully exited during the reporting period - Fosun RZ Capital's total assets under management are nearly **RMB 10 billion**, having invested in over a hundred quality enterprises; during the reporting period, **4 new investments** were made in AI+robotics, intelligent manufacturing, and new overseas expansion sectors, and **10 projects achieved successful exits**[101](index=101&type=chunk) [HAL](index=26&type=section&id=HAL) HAL's total revenue decreased by 3.4% year-on-year to **EUR 218.3 million**, with pre-tax profit falling from **EUR 62.3 million** in the same period of 2024 to **EUR 55.1 million**, as the Group completed the sale of all HAL shares but retained HAFS for further expansion of asset services - HAL's total operating revenue decreased by **3.4% year-on-year** to **EUR 218.3 million**; pre-tax profit decreased from **EUR 62.3 million** in the same period of 2024 to **EUR 55.1 million**[102](index=102&type=chunk) - The Group has completed the sale of all HAL shares but retained all shares of HAFS, which will further expand its asset services business[102](index=102&type=chunk) [BCP](index=26&type=section&id=BCP) BCP's consolidated net profit increased by 3.5% year-on-year to **EUR 502.3 million**, achieving a Return on Equity (ROE) of 14.3%, with consolidated total assets increasing by 5.8% to **EUR 105.5 billion**, and total capital adequacy ratio and CET1 ratio reaching 20.2% and 16.2% respectively, while mobile customers grew by 9% - BCP's consolidated net profit was **EUR 502.3 million**, a **3.5% year-on-year increase**; Return on Equity (ROE) reached **14.3%**[103](index=103&type=chunk) - Consolidated total assets were **EUR 105.5 billion**, a **5.8% year-on-year increase**; total capital adequacy ratio and Common Equity Tier 1 (CET1) ratio reached **20.2% and 16.2%** respectively[103](index=103&type=chunk) - The number of mobile customers increased by **9%** compared to the same period last year, now accounting for **73%** of active customers[104](index=104&type=chunk) [BFC Bund Financial Center](index=26&type=section&id=BFC%20Bund%20Financial%20Center) BFC recorded total operating revenue of RMB 367.4 million, a 5.9% year-on-year decrease, with operating EBITDA at RMB 217.2 million, an 8.5% year-on-year decrease, despite introducing luxury brands, upgrading its B2 floor to an IP supermarket, and creating a pet-friendly space, while adding approximately 153,000 new members, bringing the total to 1.385 million, by leveraging proprietary IP festivals and international IPs to target fashion-conscious young customers - BFC recorded total operating revenue of **RMB 367.4 million**, a **5.9% year-on-year decrease**; operating EBITDA was **RMB 217.2 million**, an **8.5% year-on-year decrease**[107](index=107&type=chunk) - Introduced trendy luxury brands such as Jimmy Choo and Maison Kitsuné, upgraded the South Zone B2 floor to an IP supermarket, and created a pet-friendly entertainment space[107](index=107&type=chunk) - Added approximately **153,000 new members**, bringing the total membership to approximately **1.385 million**, precisely targeting fashion-conscious young customer groups by creating proprietary IP festivals and introducing internationally renowned IPs[107](index=107&type=chunk) [Intelligent Manufacturing Segment](index=27&type=section&id=Intelligent%20Manufacturing%20Segment) The Intelligent Manufacturing segment's revenue decreased by 24.6% year-on-year, but increased by 14.0% excluding consolidation scope changes, while profit attributable to owners of the parent increased by 205.5% year-on-year, primarily due to higher profits from FFT Intelligent Manufacturing Segment Financial Performance (RMB million) | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 4,021.3 | 5,331.6 | (24.6%) | | Profit attributable to owners of the parent | 137.8 | 45.1 | 205.5% | - Intelligent Manufacturing segment revenue decreased by **24.6% year-on-year**, but increased by **14.0%** if the impact of changes in consolidation scope is excluded; profit attributable to owners of the parent increased by **205.5% year-on-year**, primarily due to higher profits from FFT[109](index=109&type=chunk) [Hainan Mining](index=28&type=section&id=Hainan%20Mining) Hainan Mining's net profit attributable to listed company shareholders decreased by 30.36% year-on-year to RMB 280.5 million, primarily due to falling iron ore and oil prices, despite operating revenue increasing by 10.46% to RMB 2.4153 billion through measures like significantly boosting oil and gas production, with the Bougouni Lithium Mine and 20,000-ton lithium hydroxide project entering trial production and oil and gas equity production growing over 50% year-on-year - Hainan Mining's net profit attributable to listed company shareholders decreased by **30.36% year-on-year** to **RMB 280.5 million**, primarily due to falling iron ore and oil prices[110](index=110&type=chunk) - Operating revenue reached **RMB 2.4153 billion**, a **10.46% year-on-year increase**, by implementing measures such as significantly boosting oil and gas production to address challenges[110](index=110&type=chunk) - The Bougouni Lithium Mine and the 20,000-ton lithium hydroxide project have entered trial production, and oil and gas equity production increased by over **50% year-on-year**[111](index=111&type=chunk) [Wansheng Co.](index=28&type=section&id=Wansheng%20Co.) Wansheng Co.'s operating revenue increased by 17.07% year-on-year to RMB 1.62315 billion, while net profit attributable to shareholders decreased by 65.02% year-on-year to RMB 26.32 million, despite main product sales growing by 6.29% to 105,400 tons, and the Weifang base's 44,200-ton high-end new material integrated production project (Phase I) entering equipment installation and commissioning - Wansheng Co.'s operating revenue was **RMB 1.62315 billion**, a **17.07% year-on-year increase**; net profit attributable to Wansheng Co. shareholders was **RMB 26.32 million**, a **65.02% year-on-year decrease**[113](index=113&type=chunk) - Main product sales were **105,400 tons**, a **6.29% year-on-year increase**; the Weifang base's annual production of 44,200 tons of high-end new material integrated production project (Phase I) has entered the equipment installation and commissioning phase[114](index=114&type=chunk)[115](index=115&type=chunk) [FFT](index=29&type=section&id=FFT) FFT's global new order value was approximately RMB 3.755 billion, with active utilization of AI technology to develop various AI agents for enhanced production efficiency and reduced engineer input, and future plans to strengthen profitability in the automotive industry, expand automation clients in other industrial sectors, and accelerate industrial digitalization - FFT's global new order value was approximately **RMB 3.755 billion**[116](index=116&type=chunk) - Actively utilizing artificial intelligence technology to develop various AI agents to enhance production efficiency and reduce engineer input[116](index=116&type=chunk) - Future plans include strengthening profitability in the automotive industry's main business, expanding automation clients in other industrial sectors, and accelerating the development of industrial digitalization business[117](index=117&type=chunk) [Financial Review](index=30&type=section&id=Financial%20Review) In H1 2025, the Group's net interest expense slightly decreased, while tax expense increased due to higher taxable profit; total debt slightly rose, but the proportion of medium-to-long-term debt remained stable; cash and bank balances decreased, mainly due to the disposal of HAL, leading to a slight increase in the total debt to total capital ratio but an improved interest coverage ratio [Net Interest Expense](index=30&type=section&id=Net%20Interest%20Expense) The Group's net interest expense after capitalization decreased from RMB 6.248 billion to RMB 6.1824 billion, primarily due to lower borrowing interest rates - The Group's net interest expense after capitalization decreased from **RMB 6.248 billion** to **RMB 6.1824 billion**, primarily due to lower borrowing interest rates[118](index=118&type=chunk) [Taxation](index=30&type=section&id=Taxation) The Group's taxation for the six months ended June 30, 2025, was RMB 1.2016 billion, an increase of RMB 91.7 million compared to the same period in 2024, mainly due to higher taxable profit - The Group's taxation for the six months ended June 30, 2025, was **RMB 1.2016 billion**, an increase of **RMB 91.7 million** compared to the same period in 2024, primarily due to higher taxable profit[119](index=119&type=chunk) [Group Debt and Liquidity](index=30&type=section&id=Group%20Debt%20and%20Liquidity) As of June 30, 2025, the Group's total debt was RMB 222.1005 billion, an increase from December 31, 2024, with medium-to-long-term debt accounting for 48.5% of total debt, a slight decrease from 48.7% at the end of 2024, and cash and bank balances decreasing to RMB 67.8301 billion, mainly due to no longer holding HAL - As of June 30, 2025, the Group's total debt was **RMB 222.1005 billion**, an increase compared to December 31, 2024[120](index=120&type=chunk) - Medium-to-long-term debt accounted for **48.5% of total debt**, a slight decrease from **48.7%** at the end of 2024[120](index=120&type=chunk) - Cash and bank balances and time deposits were **RMB 67.8301 billion**, a decrease of **RMB 38.5092 billion** compared to the end of 2024, primarily due to the Group no longer holding HAL[120](index=120&type=chunk) [Total Debt to Total Capital Ratio](index=30&type=section&id=Total%20Debt%20to%20Total%20Capital%20Ratio) As of June 30, 2025, the total debt to total capital ratio (leverage ratio) was 53.0%, an increase from 52.0% as of December 31, 2024 - As of June 30, 2025, the total debt to total capital ratio (leverage ratio) was **53.0%**, an increase from **52.0%** as of December 31, 2024[121](index=121&type=chunk) [Available Financing Sources](index=30&type=section&id=Available%20Financing%20Sources) As of June 30, 2025, the Group had unutilized bank credit facilities totaling RMB 139.4399 billion, and strategic cooperation agreements with multiple banks provided total available credit of approximately RMB 331.1029 billion, of which RMB 191.6630 billion had been utilized - As of June 30, 2025, the Group's total unutilized bank credit facilities amounted to **RMB 139.4399 billion**[122](index=122&type=chunk) - Strategic cooperation agreements with multiple banks provided total available credit of approximately **RMB 331.1029 billion**, of which **RMB 191.6630 billion** had been actually utilized[122](index=122&type=chunk)[123](index=123&type=chunk) [Interest Coverage Ratio](index=31&type=section&id=Interest%20Coverage%20Ratio) For the six months ended June 30, 2025, the interest coverage ratio was 2.5 times, compared to 2.4 times in the same period of 2024, primarily due to an increase in the Group's EBITDA during the reporting period - For the six months ended June 30, 2025, the interest coverage ratio was **2.5 times**, compared to **2.4 times** in the same period of 2024, primarily due to an increase in the Group's EBITDA during the reporting period[124](index=124&type=chunk) [Condensed Interim Consolidated Financial Statements](index=32&type=section&id=Condensed%20Interim%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed interim consolidated financial statements for the six months ended June 30, 2025, including the statement of profit or loss, statement of comprehensive income, and statement of financial position, providing investors with detailed insights into the Group's financial performance and asset-liability status during the reporting period [Condensed Interim Consolidated Statement of Profit or Loss](index=32&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This subsection provides the condensed interim consolidated statement of profit or loss, detailing the Group's revenues, expenses, and net profit or loss for the reporting period [Condensed Interim Consolidated Statement of Comprehensive Income](index=33&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Comprehensive%20Income) This subsection presents the condensed interim consolidated statement of comprehensive income, outlining the Group's total comprehensive income, including profit or loss and other comprehensive income, for the reporting period [Condensed Interim Consolidated Statement of Financial Position](index=35&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) This subsection details the condensed interim consolidated statement of financial position, providing a snapshot of the Group's assets, liabilities, and equity as of the end of the reporting period [Notes to the Financial Statements](index=38&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes to the condensed interim consolidated financial statements, explaining the basis of preparation, changes in accounting policies, operating segment information, revenue composition, finance costs, taxation, earnings per share, trade and bills receivables and payables, and liquidity information, offering essential context and details for understanding the financial data [Basis of Preparation and Changes in Accounting Policies](index=38&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The condensed interim financial information is prepared in accordance with HKAS 34 and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024, with the Board deeming the going concern basis appropriate and the adoption of revised HKFRS having no material impact - The condensed interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[131](index=131&type=chunk) - The Board considers it appropriate to prepare the financial information on a going concern basis, taking into account unutilized credit facilities and projected cash flows[131](index=131&type=chunk) - The revised Hong Kong Financial Reporting Standards, specifically Hong Kong Accounting Standard 21 (Amendment) regarding lack of exchangeability, had no material impact on the condensed interim consolidated financial information for this period[133](index=133&type=chunk)[134](index=134&type=chunk) [Operating Segment Information](index=40&type=section&id=Operating%20Segment%20Information) The Group categorizes its business units into five reportable operating segments—Health, Happiness, Insurance, Asset Management, and Intelligent Manufacturing—based on products and services provided, with Insurance and Asset Management falling under the Wealth segment - The Group categorizes its business units into five reportable operating segments based on products and services provided: Health, Happiness, Insurance, Asset Management, and Intelligent Manufacturing, with Insurance and Asset Management belonging to the Wealth segment[135](index=135&type=chunk)[136](index=136&type=chunk) Revenue from External Customers (RMB thousand) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Mainland China | 40,613,216 | 51,965,319 | | Portugal | 12,991,583 | 11,850,498 | | Other Countries and Regions | 33,678,291 | 34,022,622 | | Total | 87,283,090 | 97,838,439 | [Total Revenue, Other Income and Gains](index=47&type=section&id=Total%20Revenue%2C%20Other%20Income%20and%20Gains) This section provides a detailed breakdown of the Group's total revenue, other income, and gains, offering insights into the various sources contributing to the Group's overall financial performance Total Revenue Source Analysis (RMB thousand) | Source | 2025 | 2024 | | :--- | :--- | :--- | | Sales of goods | 42,270,442 | 54,029,245 | | Services rendered | 21,781,799 | 22,351,895 | | Insurance business income | 20,296,216 | 18,212,384 | | Rental income | 1,535,221 | 1,115,431 | | Interest income | 1,646,477 | 2,376,578 | | Total | 87,283,090 | 97,838,439 | Other Income and Gains Analysis (RMB thousand) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Subtotal of Other Income | 5,594,608 | 4,692,595 | | Subtotal of Gains | 2,687,020 | 2,910,809 | | Total | 8,281,628 | 7,603,404 | [Finance Costs](index=53&type=section&id=Finance%20Costs) This section details the composition of the Group's finance costs, including interest expenses, lease interest expenses, and other financial charges, after deducting capitalized interest, providing a clear overview of borrowing-related expenditures Finance Costs Composition (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Total interest (excluding lease interest expense) | 6,033,622 | 6,309,323 | | Lease interest expense | 494,937 | 465,656 | | Less: Capitalized interest | (369,385) | (558,130) | | Net interest expense | 6,167,504 | 6,243,638 | | Bill discount interest | 14,874 | 4,394 | | Bank charges and other finance costs | 322,263 | 211,511 | | Total finance costs | 6,504,641 | 6,459,543 | [Profit Before Tax](index=54&type=section&id=Profit%20Before%20Tax) The Group's profit before tax is calculated after deducting costs of sales, insurance service expenses, depreciation, and amortization, and after accounting for net impairment losses on financial assets and gains/losses from disposal of subsidiaries/associates - The Group's profit before tax is calculated after deducting costs of sales, insurance service expenses, depreciation and amortization, and after accounting for net impairment losses on financial assets, gains/losses from disposal of subsidiaries/associates, and other items[150](index=150&type=chunk)[151](index=151&type=chunk) [Taxation](index=56&type=section&id=Taxation) Taxation expenses primarily comprise corporate income tax from Mainland China, Portugal, Hong Kong, and other regions, calculated based on applicable tax rates, with prepaid land appreciation tax and additional provisions made during the period Major Components of Tax Expense (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current - Portugal, Hong Kong and other regions | 275,073 | 689,644 | | Current - Mainland China corporate income tax | 833,903 | 1,257,409 | | Current - Mainland China land appreciation tax | 120,522 | (389,274) | | Deferred tax | (27,924) | (447,857) | | Tax expense for the period | 1,201,574 | 1,109,922 | - Tax expense primarily comprises corporate income tax from Mainland China, as well as Portugal, Hong Kong, and other regions, calculated based on applicable tax rates in each region[152](index=152&type=chunk)[153](index=153&type=chunk) - During the period, prepaid land appreciation tax amounted to **RMB 65.539 million**, and an additional land appreciation tax provision of **RMB 87.460 million** was made[155](index=155&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=59&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) This section details the calculation of basic and diluted earnings per share attributable to ordinary equity holders of the parent, providing the profit figures and weighted average number of ordinary shares used for these computations Basis for Earnings Per Share Calculation (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent | 661,162 | 720,117 | | Adjusted profit attributable to ordinary equity holders of the parent for basic EPS calculation | 660,493 | 719,040 | | Profit attributable to ordinary equity holders of the parent for diluted EPS calculation | 661,162 | 720,117 | Number of Shares for Earnings Per Share (shares) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Weighted average number of ordinary shares outstanding during the period for basic EPS calculation | 8,124,117,230 | 8,136,799,651 | | Weighted average number of ordinary shares for diluted basic EPS calculation | 8,135,446,536 | 8,149,182,940 | | Basic earnings per share (RMB) | 0.08 | 0.09 | | Diluted earnings per share (RMB) | 0.08 | 0.09 | [Trade and Bills Receivables](index=61&type=section&id=Trade%20and%20Bills%20Receivables) Trade and bills receivables primarily originate from the Health and Happiness segments, with credit periods typically ranging from 90 to 180 days for Health and 30 to 360 days for Happiness Trade and Bills Receivables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 12,704,887 | 12,447,980 | | Bills receivables | 343,677 | 382,580 | | Total | 13,048,564 | 12,830,560 | - Trade receivables primarily originate from the Health segment and the Happiness segment, with credit periods typically ranging from **90 to 180 days** for the Health segment and **30 to 360 days** for the Happiness segment[162](index=162&type=chunk) [Trade and Bills Payables](index=62&type=section&id=Trade%20and%20Bills%20Payables) Trade and bills payables primarily arise from the Health and Happiness segments, generally settled within 30 to 60 days or according to property construction progress Trade and Bills Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 18,426,894 | 19,772,155 | | Bills payables | 3,241,177 | 3,243,706 | | Total | 21,668,071 | 23,015,861 | - Trade and bills payables primarily originate from the Health segment and the Happiness segment, generally settled within **30 to 60 days** or according to property construction progress[163](index=163&type=chunk) [Dividends](index=63&type=section&id=Dividends) The Board resolved not to declare an interim dividend for the reporting period, while the proposed final dividend of HKD 0.02 per ordinary share for the year ended December 31, 2024, was approved at the AGM on June 5, 2025 - The Board resolved not to declare an interim dividend for the reporting period (for the six months ended June 30, 2024: nil)[165](index=165&type=chunk) - The proposed final dividend of **HKD 0.02 per ordinary share** for the year ended December 31, 2024, was approved at the Annual General Meeting on June 5, 2025[164](index=164&type=chunk) [Liquidity Information](index=63&type=section&id=Liquidity%20Information) The Group presents all assets and liabilities in its consolidated statement of financial position by liquidity order, further disclosing amounts expected to be recovered or settled within or beyond 12 months, with assets recoverable within 12 months totaling RMB 251.979 billion and liabilities payable within 12 months totaling RMB 252.236 billion as of June 30, 2025 - The Group presents all assets and liabilities in its consolidated statement of financial position in order of liquidity, and further discloses the amounts of each asset and liability item expected to be recovered or settled within or beyond 12 months[166](index=166&type=chunk) - As of June 30, 2025, assets expected to be recovered within **not more than twelve months** amounted to **RMB 251.979 billion**, and liabilities expected to be settled within **not more than twelve months** amounted to **RMB 252.236 billion**[131](index=131&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) [Other Information](index=67&type=section&id=Other%20Information) This section covers events after the reporting period, interim dividend decisions, share repurchase activities, updates on share award and share option schemes, the Audit Committee's review of interim results, compliance with corporate governance code, publication of the interim report, forward-looking statements, and definitions of terms [Events After the Reporting Period](index=67&type=section&id=Events%20After%20the%20Reporting%20Period) As of the date of this announcement, the Group has no post-reporting period events requiring disclosure - As of the date of this announcement, the Group has no post-reporting period events requiring disclosure[171](index=171&type=chunk) [Interim Dividend](index=68&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the reporting period - The Board resolved not to declare an interim dividend for the reporting period[172](index=172&type=chunk) [Repurchase, Sale or Redemption of the Company's Listed Securities](index=68&type=section&id=Repurchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) The Company repurchased a total of 31,082,500 shares on the Hong Kong Stock Exchange during the reporting period for a total consideration of HKD 126,306,230, all of which have been cancelled - The Company repurchased a total of **31,082,500 shares** on the Hong Kong Stock Exchange during the reporting period, for a total consideration of **HKD 126,306,230**, and all repurchased shares have been cancelled[173](index=173&type=chunk) 2025 Share Repurchase Details (HKD) | Month | Number of Shares Repurchased | Repurchase Price Per Share (Highest) | Repurchase Price Per Share (Lowest) | Total Repurchase Price Paid | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 299,500 | 4.09 | 4.05 | 1,222,760.00 | | March 2025 | 4,423,000 | 4.22 | 4 | 18,298,375.00 | | April 2025 | 26,360,000 | 4.45 | 3.75 | 106,785,095.00 | | Total | 31,082,500 | – | – | 126,306,230.00 | [Share Award Scheme](index=68&type=section&id=Share%20Award%20Scheme) The 2015 Share Award Scheme was terminated on March 16, 2023, but unvested awarded shares remain valid, while the 2023 Share Award Scheme granted a total of 15,213,000 awarded shares to 91 selected participants on June 27, 2025, all of which have been issued to the trustee - The 2015 Share Award Scheme was terminated on March 16, 2023, but unvested awarded shares remain valid[175](index=175&type=chunk) - The 2023 Share Award Scheme granted a total of **15,213,000 awarded shares** to **91 selected participants** on June 27, 2025, all of which have been issued to the trustee[176](index=176&type=chunk)[177](index=177&type=chunk) [Share Option Scheme](index=69&type=section&id=Share%20Option%20Scheme) The 2007 and 2017 Share Option Schemes have expired or been terminated, but unexercised share options remain valid, while the 2023 Share Option Scheme granted 49,530,000 share options on June 27, 2025, to subscribe for a total of 49,530,000 shares in the Company's capital - The 2007 and 2017 Share Option Schemes have expired or been terminated, but unexercised share options remain valid[178](index=178&type=chunk) - The 2023 Share Option Scheme granted **49,530,000 share options** on June 27, 2025, to subscribe for a total of **49,530,000 shares** in the Company's capital[179](index=179&type=chunk) [Review of Interim Results](index=69&type=section&id=Review%20of%20Interim%20Results) The Company's Audit Committee has reviewed the interim results for the reporting period and found no objections to the accounting treatments adopted by the

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[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Overview of Financial Highlights](index=1&type=section&id=Overview%20of%20Financial%20Highlights) Kangqiao Happy Life Group's total revenue for the six months ended June 30, 2025, decreased by 6.6% year-on-year to RMB 455.2 million, with declines in non-owner and community value-added services despite growth in property management and city services. Gross profit and net profit both decreased, with profit attributable to owners down 21.8%, and the board resolved not to declare an interim dividend Key Financial Data for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 455.2 | 487.3 | -6.6% | | Property Management Services Revenue | 353.7 | - | +5.6% | | Non-owner Value-added Services Revenue | 15.7 | - | -72.3% | | Community Value-added Services Revenue | 45.5 | - | -21.3% | | City Services Revenue | 40.2 | - | +7.3% | | Gross Profit | 98.5 | 105.5 | -6.7% | | Gross Profit Margin | 21.6% | 21.7% | -0.1pp | | Profit for the Period | 43.4 | 53.3 | -18.6% | | Profit Attributable to Owners of the Company | 33.5 | 42.8 | -21.8% | | Contracted GFA for Property Management Services | 68.3 (million sq.m.) | 71.1 (million sq.m.) | -4.0% | | GFA Under Management | 46.2 (million sq.m.) | 43.2 (million sq.m.) | +6.9% | - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[3](index=3&type=chunk) [Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&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's revenue decreased by 6.6% year-on-year to RMB 455.2 million, with a corresponding decrease in cost of sales, resulting in a gross profit of RMB 98.5 million, operating profit of RMB 55.8 million, and profit for the period of RMB 43.4 million, while profit attributable to owners of the company decreased by 21.8% to RMB 33.5 million, with basic and diluted earnings per share at RMB 0.048 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator (RMB thousand) | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 455,202 | 487,273 | | Cost of sales | (356,713) | (381,726) | | Gross profit | 98,489 | 105,547 | | Administrative expenses | (21,791) | (23,938) | | Selling and marketing expenses | (2,491) | (4,271) | | Net impairment losses on financial assets | (18,071) | (15,130) | | Other income | 179 | 3,622 | | Other (losses)/gains – net | (521) | 1,933 | | Operating profit | 55,794 | 67,763 | | Finance income – net | 1,012 | 781 | | Share of profits of investments accounted for using the equity method | 48 | 667 | | Profit before income tax | 56,854 | 69,211 | | Income tax expense | (13,503) | (15,924) | | Profit for the period | 43,351 | 53,287 | | Profit attributable to: | | | | Owners of the Company | 33,483 | 42,811 | | Non-controlling interests | 9,868 | 10,476 | | Total comprehensive income for the period | 42,552 | 54,052 | | Basic and diluted earnings per share (RMB) | 0.048 | 0.061 | [Interim Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased to RMB 1,600.1 million from the end of 2024, with current assets rising to RMB 1,385.1 million, while total liabilities increased to RMB 785.7 million, mainly due to higher contract liabilities and litigation provisions within current liabilities, and equity attributable to owners of the company increased to RMB 756.9 million Interim Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **ASSETS** | | | | Total non-current assets | 215,036 | 216,494 | | Total current assets | 1,385,077 | 1,299,854 | | **TOTAL ASSETS** | **1,600,113** | **1,516,348** | | **EQUITY** | | | | Equity attributable to owners of the Company | 756,908 | 724,224 | | Non-controlling interests | 57,543 | 53,896 | | **TOTAL EQUITY** | **814,451** | **778,120** | | **LIABILITIES** | | | | Total non-current liabilities | 22,794 | 16,453 | | Total current liabilities | 762,868 | 721,775 | | **TOTAL LIABILITIES** | **785,662** | **738,228** | | **TOTAL EQUITY AND LIABILITIES** | **1,600,113** | **1,516,348** | [Notes to the Interim Financial Information](index=7&type=section&id=Notes%20to%20the%20Interim%20Financial%20Information) [1 General Information](index=7&type=section&id=1%20General%20Information) Kangqiao Happy Life Group Co., Ltd. is incorporated in the Cayman Islands, primarily providing property management, related value-added, and city services in China, controlled by Mr. Song Gewei, with interim financial information presented in RMB and unaudited - The Company is incorporated in the Cayman Islands, with its principal business being the provision of property management services, related value-added services, and city services in China[8](index=8&type=chunk) - The ultimate controlling entity of the Group is Hung Fai Property Limited, controlled by **Mr. Song Gewei**[8](index=8&type=chunk) - The interim financial information is unaudited and presented in **RMB**[9](index=9&type=chunk)[10](index=10&type=chunk) [2 Basis of Preparation](index=7&type=section&id=2%20Basis%20of%20Preparation) The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2024 - The interim financial information is prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"**[11](index=11&type=chunk) [3 Significant Accounting Policies](index=8&type=section&id=3%20Significant%20Accounting%20Policies) The accounting policies for this period are consistent with those applied in the preparation of the 2024 annual consolidated financial statements, except for the initial adoption of amended Hong Kong Financial Reporting Standards, with the amendments to HKAS 21 regarding lack of exchangeability having no impact on the Group's interim financial information - The accounting policies adopted in the preparation of this interim condensed consolidated financial information are consistent with those applied in the Group’s annual consolidated financial statements for the year ended December 31, 2024, except for the initial adoption of amended Hong Kong Financial Reporting Standards[12](index=12&type=chunk) - The amendments to HKAS 21 regarding lack of exchangeability have no impact on the interim financial information, as the functional currencies of the Group entities and the currencies of the Group's transactions are all exchangeable into the Group's presentation currency[13](index=13&type=chunk) [4 Segment Information](index=8&type=section&id=4%20Segment%20Information) The Group's management reviews the operating results of its business as a single reportable segment due to the consistent nature, customer types, service methods, and regulatory environment of its property management, value-added, and city services in China, with all revenue and most assets originating from China - The Company's management reviews the operating results of its business as a single reportable segment, given the consistent nature of services, customer types, service delivery methods, and regulatory environment across different regions[15](index=15&type=chunk) - For the six months ended June 30, 2025, and June 30, 2024, all of the Group's revenue was derived from China, and the majority of its assets are located in China[15](index=15&type=chunk) [5 Revenue](index=9&type=section&id=5%20Revenue) For the six months ended June 30, 2025, the Group's total revenue was RMB 455.2 million, a 6.6% year-on-year decrease, with property management services revenue accounting for 77.7% and growing by 5.6%, while non-owner value-added services and community value-added services revenue significantly declined by 72.3% and 21.3% respectively, and city services revenue increased by 7.3% Revenue Analysis by Category (RMB thousand) | Revenue Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Property management services | 353,711 | 335,036 | | Non-owner value-added services | 15,749 | 56,864 | | Community value-added services | 45,534 | 57,887 | | City services | 40,208 | 37,486 | | **Total** | **455,202** | **487,273** | Timing of Revenue Recognition (RMB thousand) | Recognition Method | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Over time | 433,124 | 437,386 | | At a point in time | 22,078 | 49,887 | | **Total** | **455,202** | **487,273** | - Revenue contributed by entities controlled by Mr. Song accounted for **0.9%** of the Group's revenue (2024: 1.6%)[16](index=16&type=chunk) [6 Expenses by Nature](index=10&type=section&id=6%20Expenses%20by%20Nature) For the six months ended June 30, 2025, the Group's total expenses were RMB 381.0 million, a decrease of approximately 7.1% from the same period in 2024, with major expenses including employee benefit expenses, landscaping and cleaning fees, security maintenance costs, and repair and customer service costs Expenses by Nature (RMB thousand) | Expense Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Employee benefit expenses | 95,561 | 106,195 | | Landscaping and cleaning fees | 91,137 | 88,201 | | Security maintenance costs | 69,167 | 64,056 | | Repair and customer service costs | 41,160 | 39,048 | | Utilities | 30,598 | 25,563 | | Sales agency service costs | 10,083 | 21,373 | | Cost of goods sold | 9,353 | 10,723 | | Office expenses | 4,657 | 6,491 | | Travel and entertainment expenses | 3,149 | 3,761 | | Decoration business costs | 2,690 | 5,281 | | Amortisation of intangible assets | 2,044 | 1,914 | | Depreciation of property and equipment | 1,774 | 2,282 | | Depreciation of right-of-use assets | 1,195 | 943 | | Depreciation of investment properties | 493 | 740 | | Auditor's remuneration | 725 | 784 | | Others | 17,209 | 32,580 | | **Total** | **380,995** | **409,935** | [7 Income Tax Expense](index=10&type=section&id=7%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was RMB 13.5 million, a 15.2% decrease from the same period in 2024, with the statutory corporate income tax rate in China being 25%, while some subsidiaries enjoy a 20% reduction, and no withholding income tax has been provided for undistributed earnings of Chinese subsidiaries Income Tax Expense (RMB thousand) | Tax Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Current income tax – PRC corporate income tax | 19,179 | 21,838 | | Deferred income tax – PRC corporate income tax | (5,676) | (5,914) | | **Total** | **13,503** | **15,924** | - The Company's subsidiaries in the Cayman Islands and British Virgin Islands are exempt from income tax, and no Hong Kong profits tax provision is made as Hong Kong operations have no assessable profits[19](index=19&type=chunk) - The statutory tax rate for PRC operations is **25%**, with some subsidiaries qualifying as small low-profit enterprises enjoying a **20%** income tax reduction[19](index=19&type=chunk) - The Group has not provided for any withholding income tax on the undistributed earnings of its PRC subsidiaries for the six months ended June 30, 2025, as these are not expected to be distributed outside China in the near future[20](index=20&type=chunk) [8 Earnings Per Share](index=11&type=section&id=8%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the company decreased to RMB 0.048 from RMB 0.061 in the same period of 2024, with the weighted average number of ordinary shares outstanding being 700,000 thousand shares and no potential ordinary shares during the period Earnings Per Share Calculation (RMB thousand) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 33,483 | 42,811 | | Weighted average number of ordinary shares outstanding (thousand shares) | 700,000 | 700,000 | | **Basic and diluted earnings per share attributable to owners of the Company (RMB per share)** | **0.048** | **0.061** | - For the six months ended June 30, 2025, and June 30, 2024, the Company had no outstanding potential ordinary shares, thus diluted earnings per share equal basic earnings per share[21](index=21&type=chunk) [9 Trade and Other Receivables and Prepayments](index=12&type=section&id=9%20Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total trade and other receivables amounted to RMB 997.1 million, a 6.1% increase from the end of 2024, with impairment provisions for trade receivables rising to RMB 200.2 million, and an increased proportion of trade receivables over 1 year indicating slower collection, while the non-current portion of prepayments is primarily for acquiring equity in a property management company Trade and Other Receivables and Prepayments (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables (net of impairment allowance) | 645,552 | 600,839 | | Other receivables (net of impairment allowance) | 351,546 | 338,625 | | Prepayments (current portion) | 3,057 | 1,495 | | **Current portion of trade and other receivables and prepayments** | **1,000,155** | **940,959** | | Impairment allowance for trade receivables | (200,174) | (179,798) | | Impairment allowance for other receivables | (39,862) | (41,355) | Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 285,729 | 378,657 | | 1 to 2 years | 244,104 | 158,437 | | 2 to 3 years | 151,116 | 140,438 | | Over 3 years | 164,777 | 103,105 | | **Total** | **845,726** | **780,637** | - The non-current portion of prepayments primarily consists of **RMB 59,884 thousand**, used for the acquisition of an 80% equity interest in a property management services company[25](index=25&type=chunk) [10 Trade and Other Payables](index=14&type=section&id=10%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to RMB 337.7 million, a 3.2% decrease from the end of 2024, with third-party payments constituting the largest portion of trade payables, and an increase in amounts overdue for more than one year, while other payables primarily include amounts due to related parties, deposits, and accrued salaries Trade and Other Payables (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade payables | 108,744 | 90,059 | | Other payables | 228,934 | 258,947 | | **Current portion of trade and other payables** | **337,678** | **348,908** | | Less: Non-current portion of other payables | - | (98) | Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 93,594 | 82,311 | | 1 to 2 years | 12,773 | 6,451 | | 2 to 3 years | 1,347 | 1,262 | | Over 3 years | 1,030 | 35 | | **Total** | **108,744** | **90,059** | [11 Provision for Litigation](index=15&type=section&id=11%20Provision%20for%20Litigation) The Group has recognized a litigation provision of RMB 205.8 million arising from a guarantee liability of its wholly-owned subsidiary in a loan dispute involving Henan Chengqiao (controlled by Mr. Song), where despite a court ruling that the letter of undertaking was invalid, the subsidiary is still liable for 40% of the outstanding debt after collateral realization, and Mr. Song has pledged full compensation for any losses incurred by the Company from this litigation - The Company's wholly-owned subsidiary, Kangqiao Happy Life Services Group Co., Ltd., was sued by a bank for debt assumption in a loan dispute involving Henan Chengqiao, whose controlling shareholder is Mr. Song[28](index=28&type=chunk) - The court ruled that the letter of undertaking issued by the subsidiary as a guarantee was invalid, but due to fault on both the creditor and guarantor, the subsidiary is still liable for **40%** of any remaining debt after the realization of collateral[29](index=29&type=chunk) - As of June 30, 2025, a litigation provision of approximately **RMB 205.8 million** has been recognized, and Mr. Song has undertaken to fully indemnify the Company for any losses it may suffer or incur from this litigation[30](index=30&type=chunk) [12 Dividends](index=16&type=section&id=12%20Dividends) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board does not recommend the declaration of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: same)[31](index=31&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [I. Business Review](index=17&type=section&id=I.%20Business%20Review) In the first half of 2025, the property management industry faced deep transformation and intensified competition, with the company advancing its work around "five enhancements," resulting in a 6.6% year-on-year decrease in total revenue, while GFA under management grew by 6.9% to 46.2 million sq.m., but contracted GFA decreased by 4.0% to 68.3 million sq.m - The property management industry is undergoing a deep transformation towards modern services, with a systemic restructuring of its operating environment and development logic, leading to intensified competition and a strategic shift from scale expansion to efficiency pursuit[32](index=32&type=chunk) - The Group's business encompasses residential, non-residential (e.g., commercial, office buildings, industrial parks, hospitals), and city services (e.g., rail transit hygiene and urban environmental sanitation), covering basic property management, non-owner value-added, community value-added, and city services[32](index=32&type=chunk) - As of June 30, 2025, the Group provided services in **36 cities** with **331 projects** under management, a contracted GFA of approximately **68.3 million sq.m.** (down 4.0% year-on-year), and a GFA under management of approximately **46.2 million sq.m.** (up 6.9% year-on-year)[33](index=33&type=chunk) [(1) Business Overview](index=17&type=section&id=(1)%20Business%20Overview) In the first half of 2025, the Group focused on "five enhancements" to improve customer quality of life, employee dignity, organizational management, corporate resilience, and industry standing, achieving a total revenue of RMB 455.2 million, a 6.6% year-on-year decrease - In the first half of 2025, the Group systematically advanced its work around "five enhancements," including improving customer quality of life, employee dignity, organizational management, corporate resilience, and industry standing[32](index=32&type=chunk) - During the reporting period, the Group's revenue was approximately **RMB 455.2 million**, a **6.6% decrease** compared to the same period in 2024[32](index=32&type=chunk) [(2) Performance of Four Business Segments](index=17&type=section&id=(2)%20Performance%20of%20Four%20Business%20Segments) The Group, a reputable integrated property management service provider and a leader in Henan, ranked 23rd in "2025 China Property Service Top 100," saw its property management services revenue grow by 5.6%, while non-owner and community value-added services revenue significantly declined by 72.3% and 21.3% respectively, and city services revenue increased by 7.3% - The Group was awarded the "2025 China Property Service Top 100" by China Index Academy, with its overall industry strength ranking improving by 2 places to **23rd**[34](index=34&type=chunk) - Property management services revenue was approximately **RMB 353.7 million**, accounting for **77.7%** of total revenue, a **5.6% increase** compared to the same period in 2024[34](index=34&type=chunk) - Non-owner value-added services revenue was approximately **RMB 15.7 million**, a **72.3% decrease** compared to the same period in 2024, primarily due to the contraction of the real estate business[35](index=35&type=chunk) - Community value-added services revenue was approximately **RMB 45.5 million**, a **21.3% decrease** compared to the same period in 2024, mainly due to fluctuations in the consumer market and intensified competition[36](index=36&type=chunk) - City services revenue was approximately **RMB 40.2 million**, a **7.3% increase** compared to the same period in 2024[37](index=37&type=chunk) [II. Outlook and Strategies](index=18&type=section&id=II.%20Outlook%20and%20Strategies) The Group aims to become a provider of better living and smart city services, continuously enhancing its product, organizational, operational, digital technology, and brand capabilities, while adhering to service and operational bottom lines, strategically expanding non-residential property management and city service product lines to achieve balanced development across "Happy Life" (residential property management), "Happy Commercial Management" (non-residential property management), and "Happy City Services" (city services), and increasing market capital value through scale expansion and third-party collaborations - The Group is committed to becoming a provider of better living and smart city services, continuously enhancing its product, organizational, operational, digital technology, and brand capabilities[38](index=38&type=chunk) - Strategically, the Group will horizontally expand its non-residential property management and city services product lines, gradually achieving balanced development across "Happy Life" (residential property management), "Happy Commercial Management" (non-residential property management), and "Happy City Services" (city services)[38](index=38&type=chunk)[39](index=39&type=chunk) - Market capital value will be enhanced through continuous scale expansion, securing contracted GFA, increasing GFA from third-party property developers, expanding the proportion of non-residential property management GFA, and growing city services scale[39](index=39&type=chunk) [III. Financial Review](index=20&type=section&id=III.%20Financial%20Review) The Group's total revenue for the first half of 2025 decreased by 6.6% to RMB 455.2 million, primarily due to significant declines in non-owner and community value-added services, with cost of sales decreasing proportionally, but gross profit margin slightly falling to 21.6%, while profit for the period and profit attributable to owners of the company both significantly decreased, and although current assets and cash and cash equivalents increased, trade receivables collection remained slow, and the Board resolved not to declare an interim dividend - The Group's total revenue was approximately **RMB 455.2 million**, a **6.6% decrease** compared to the same period in 2024, primarily due to the decline in non-owner value-added services and community value-added services revenue[40](index=40&type=chunk) - Profit for the period was approximately **RMB 43.4 million**, an **18.6% decrease** year-on-year; profit attributable to owners of the Company was approximately **RMB 33.5 million**, a **21.8% decrease** year-on-year[56](index=56&type=chunk) - As of June 30, 2025, current assets were approximately **RMB 1,385.1 million**, an increase of approximately **6.6%** compared to 2024[57](index=57&type=chunk)[58](index=58&type=chunk) - Cash and cash equivalents amounted to **RMB 136.2 million**, and restricted cash was **RMB 213.2 million**, totaling **RMB 349.4 million**[58](index=58&type=chunk) - Trade and other receivables amounted to approximately **RMB 997.1 million**, a **6.1% increase** year-on-year, primarily due to the slower collection of some trade receivables in the current economic climate[59](index=59&type=chunk) - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[62](index=62&type=chunk) [Revenue](index=20&type=section&id=Revenue) The Group's total revenue decreased by 6.6% to RMB 455.2 million, with property management services revenue growing by 5.6% to RMB 353.7 million and city services revenue increasing by 7.3% to RMB 40.2 million, while non-owner value-added services revenue significantly declined by 72.3% to RMB 15.7 million and community value-added services revenue decreased by 21.3% to RMB 45.5 million Revenue Contribution by Business Segment (RMB thousand) | Business Segment | 2025 | % | 2024 | % | | :--- | :--- | :--- | :--- | :--- | | Property management services | 353,711 | 77.7 | 335,036 | 68.7 | | Non-owner value-added services | 15,749 | 3.5 | 56,864 | 11.7 | | Community value-added services | 45,534 | 10.0 | 57,887 | 11.9 | | City services | 40,208 | 8.8 | 37,486 | 7.7 | | **Total** | **455,202** | **100.0** | **487,273** | **100.0** | - Property management services revenue increased by **5.6%**, primarily due to the Group's business expansion and an increase in total GFA under management[43](index=43&type=chunk) - Non-owner value-added services revenue decreased by **72.3%**, mainly due to the contraction of the real estate business which has not yet recovered[44](index=44&type=chunk) - Community value-added services revenue decreased by **21.3%**, primarily due to fluctuations in the consumer market and intensified competition, leading to a decline in home living services and asset operation services revenue[45](index=45&type=chunk) - City services revenue increased by **7.3%**, mainly due to an increase in business volume within the city services segment[46](index=46&type=chunk) [Cost of Sales](index=21&type=section&id=Cost%20of%20Sales) During the reporting period, the Group's cost of sales was RMB 356.7 million, a 6.6% decrease from the same period in 2024, primarily due to the contraction of non-owner value-added services - The Group's cost of sales was approximately **RMB 356.7 million**, a decrease of approximately **6.6%** compared to the same period in 2024, primarily due to the contraction of the Group's non-owner value-added services[47](index=47&type=chunk) [Gross Profit and Gross Profit Margin](index=21&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's overall gross profit margin slightly decreased by 0.1 percentage points to 21.6%, with property management services gross profit margin slightly down by 0.2 percentage points due to increased landscaping and engineering renovation costs, while non-owner value-added services gross profit margin improved by 5.1 percentage points to 25.5% by actively abandoning low-margin businesses, and community value-added services gross profit margin increased by 1.6 percentage points to 32.1% through enhanced collaboration with upstream suppliers Gross Profit and Gross Profit Margin by Business Segment (RMB thousand, %) | Business Segment | 2025 Gross Profit | 2025 Gross Profit Margin (%) | 2024 Gross Profit | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 74,939 | 21.2 | 71,580 | 21.4 | | Non-owner value-added services | 4,012 | 25.5 | 11,624 | 20.4 | | Community value-added services | 14,603 | 32.1 | 17,648 | 30.5 | | City services | 4,935 | 12.3 | 4,695 | 12.5 | | **Total** | **98,489** | **21.6** | **105,547** | **21.7** | - Property management services gross profit margin decreased by **0.2 percentage points**, primarily due to increased investment in landscaping and engineering renovation costs to ensure service quality[49](index=49&type=chunk) - Non-owner value-added services gross profit margin increased by **5.1 percentage points**, mainly because the Company actively abandoned low-margin businesses with poor collection rates amidst a downturn in the real estate market[49](index=49&type=chunk) - Community value-added services gross profit margin increased by **1.6 percentage points**, primarily due to increased collaboration with upstream suppliers for certain goods[50](index=50&type=chunk) [Other Income](index=22&type=section&id=Other%20Income) The Group's other income was RMB 0.2 million, a significant 95.1% decrease from the same period in 2024, primarily due to reduced government subsidies - The Group's other income was approximately **RMB 0.2 million**, a **95.1% decrease** compared to the same period in 2024, primarily due to a reduction in government subsidies received during the reporting period[52](index=52&type=chunk) [Selling and Marketing Expenses](index=22&type=section&id=Selling%20and%20Marketing%20Expenses) The Group's selling and marketing expenses were RMB 2.5 million, a 41.7% decrease from the same period in 2024, mainly attributable to effective cost control - The Group's selling and marketing expenses were approximately **RMB 2.5 million**, a **41.7% decrease** compared to the same period in 2024, primarily due to the Group's effective cost control[53](index=53&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) The Group's administrative expenses were RMB 21.8 million, a 9.0% decrease from the same period in 2024, also primarily due to effective cost control - The Group's administrative expenses were approximately **RMB 21.8 million**, a **9.0% decrease** compared to the same period in 2024, also primarily due to the Group's effective cost control during the reporting period[54](index=54&type=chunk) [Income Tax Expense](index=22&type=section&id=Income%20Tax%20Expense) The Group's income tax expense was RMB 13.5 million, a 15.2% decrease from the same period in 2024 - The Group's income tax expense was approximately **RMB 13.5 million**, a **15.2% decrease** compared to the same period in 2024[55](index=55&type=chunk) [Profit for the Period](index=22&type=section&id=Profit%20for%20the%20Period) The Group's profit for the period was RMB 43.4 million, an 18.6% year-on-year decrease, with a net profit margin of 9.5%, and profit attributable to owners of the company was RMB 33.5 million, a 21.8% year-on-year decrease - The Group's profit for the period was approximately **RMB 43.4 million**, an **18.6% decrease** compared to the same period in 2024, with a net profit margin of **9.5%**, a **1.4% decrease** compared to the same period in 2024[56](index=56&type=chunk) - Profit attributable to owners of the Company was approximately **RMB 33.5 million**, a **21.8% decrease** compared to the same period in 2024[56](index=56&type=chunk) [Liquidity, Reserves and Capital Structure](index=22&type=section&id=Liquidity%2C%20Reserves%20and%20Capital%20Structure) The Group maintains a sound financial position, with current assets of RMB 1,385.1 million as of June 30, 2025, a 6.6% year-on-year increase, and cash and cash equivalents totaling RMB 349.4 million, while the current ratio remained at 1.8, the asset-liability ratio slightly increased to 49.1%, and the capital-to-debt ratio was 0.4% - As of June 30, 2025, current assets were approximately **RMB 1,385.1 million**, an increase of approximately **6.6%** compared to 2024[57](index=57&type=chunk)[58](index=58&type=chunk) - Cash and cash equivalents amounted to **RMB 136.2 million**, and restricted cash was **RMB 213.2 million**, totaling **RMB 349.4 million**[58](index=58&type=chunk) - The current ratio (current assets divided by current liabilities) was **1.8** (December 31, 2024: same)[58](index=58&type=chunk) - The asset-liability ratio (total liabilities divided by total assets) was **49.1%**, a slight increase from **48.7%** as of December 31, 2024, with a capital-to-debt ratio of **0.4%**[58](index=58&type=chunk) [Trade and Other Receivables](index=23&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, trade and other receivables reached RMB 997.1 million, a 6.1% increase from the end of 2024, primarily due to slower collection of some trade receivables, and the Group has strengthened internal control measures to accelerate collection - As of June 30, 2025, the Group's trade and other receivables amounted to approximately **RMB 997.1 million**, a **6.1% increase** compared to December 31, 2024, primarily due to the slower collection of some trade receivables in the current economic climate[59](index=59&type=chunk) - The Group has strengthened relevant internal control measures to improve the collection progress of trade receivables[59](index=59&type=chunk) [Trade and Other Payables](index=23&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade and other payables amounted to RMB 337.7 million, a 3.2% decrease from the end of 2024, primarily due to improved payment efficiency - As of June 30, 2025, the Group's trade and other payables amounted to approximately **RMB 337.7 million**, a **3.2% decrease** compared to December 31, 2024, primarily due to improved payment efficiency for trade and other payables[60](index=60&type=chunk) [Foreign Exchange Risk](index=23&type=section&id=Foreign%20Exchange%20Risk) The Group primarily operates in China, with transactions denominated in RMB, and while RMB depreciation could adversely affect the value of dividends paid to overseas shareholders, the Group currently does not engage in foreign exchange hedging activities but will continue to monitor foreign exchange movements - The Group primarily operates in China, with its transaction currency being RMB, and RMB depreciation may adversely affect the value of any dividends paid to shareholders outside China[61](index=61&type=chunk) - The Group currently does not engage in hedging activities aimed at or intended to manage foreign exchange rate risk but will continue to monitor foreign exchange activities[61](index=61&type=chunk) [Interim Dividends](index=23&type=section&id=Interim%20Dividends) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[62](index=62&type=chunk) [Other Financial Information](index=24&type=section&id=Other%20Financial%20Information) During the reporting period, the Group had no significant contingent liabilities, capital commitments, major acquisitions or disposals, nor did it hold any significant investments, with future plans to use net proceeds from the global offering for acquiring property management and professional service companies, and collaborating with local urban investment companies or property developers - As of June 30, 2025, the Group had not provided other guarantees, except for Dingfeng Property's guarantee for a loan from Wugang Rural Commercial Bank of Henan, which has been compensated by Jiatianda through the transfer of parking spaces[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - As of June 30, 2025, the Group had no significant contingent liabilities or capital commitments[66](index=66&type=chunk) - During the reporting period, the Group had no significant investments, major acquisitions, or disposals of subsidiaries, associates, or joint ventures[67](index=67&type=chunk)[68](index=68&type=chunk) - The Group intends to use the net proceeds from the global offering for acquiring property management companies and professional service companies, and collaborating with local urban investment companies or local property developers through capital injection or forming joint ventures[69](index=69&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) [Overview of Employees and Remuneration Policy](index=25&type=section&id=Overview%20of%20Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 2,322 employees, with employee benefit expenses totaling RMB 95.6 million, and the company attracts and retains talent through competitive compensation, bonuses, benefits, systematic training, and internal promotion, while fostering fair career opportunities, work-life balance, and a happy culture - As of June 30, 2025, the Group had **2,322 employees** (June 30, 2024: 2,108 employees)[70](index=70&type=chunk) - For the six months ended June 30, 2025, the Group's employee benefit expenses (including directors' remuneration) amounted to **RMB 95.6 million** (same period in 2024: RMB 106.2 million)[70](index=70&type=chunk) - The Group attracts talented employees by offering competitive wages, bonuses, benefits, systematic training opportunities, and internal promotions, while committing to embracing diversity, providing equal career opportunities, promoting work-life balance, and fostering a happy culture[70](index=70&type=chunk) [Use of Proceeds from Global Offering](index=25&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) [Overview of Use of Proceeds from Global Offering](index=25&type=section&id=Overview%20of%20Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the Company's global offering, approximately HKD 628.9 million, are primarily allocated to strategic investments and acquisitions (65%), investment in smart operations and internal management systems (10%), enriching and expanding service and product offerings (15%), and working capital and general corporate purposes (10%), with HKD 25.3 million utilized as of June 30, 2025, and the remaining HKD 310.5 million expected to be fully used by December 2025 Use of Net Proceeds from Global Offering (HKD million) | Use | Percentage Disclosed in Prospectus (Approx.) | Net Proceeds Disclosed in Prospectus | Unutilized Amount as of December 31, 2024 | Actual Amount Utilized During Reporting Period | Unutilized Amount as of June 30, 2025 | Expected Timeline for Utilization of Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Seeking selective strategic investment and acquisition opportunities | 65% | 408.8 | 297.6 | 22.4 | 275.2 | Before December 2025 | | Investing in smart operations and internal management systems | 10% | 62.9 | 35.5 | 2.9 | 32.6 | Before December 2025 | | Enriching and expanding service and product offerings | 15% | 94.3 | 0.6 | 0 | 0.6 | Before December 2025 | | Working capital and other general corporate purposes | 10% | 62.9 | 2.1 | 0 | 2.1 | Before December 2025 | | **Total** | **100%** | **628.9** | **335.8** | **25.3** | **310.5** | | - The total net proceeds from the global offering, approximately **HKD 628.9 million**, are deposited in short-term interest-bearing bank accounts with licensed financial institutions both onshore and offshore[71](index=71&type=chunk)[72](index=72&type=chunk) - The proceeds will continue to be used in accordance with the purposes set out in the prospectus and are expected to be fully utilized by **December 2025**[72](index=72&type=chunk) [Corporate Governance and Other Information](index=26&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Significant Events After Reporting Period](index=26&type=section&id=Significant%20Events%20After%20Reporting%20Period) No significant events occurred for the Group from the end of the reporting period up to the date of this announcement - No significant events occurred for the Group from the end of the reporting period up to the date of this announcement[73](index=73&type=chunk) [Corporate Governance Practices](index=26&type=section&id=Corporate%20Governance%20Practices) The Company is committed to maintaining high standards of corporate governance, having adopted the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules, and complied with all applicable principles and code provisions during the reporting period - The Company has adopted the **Corporate Governance Code** set out in Appendix C1 of the HKEX Listing Rules as its governance code[74](index=74&type=chunk) - During the reporting period, the Company has complied with all applicable principles and code provisions under the Corporate Governance Code[74](index=74&type=chunk) [Standard Code for Securities Transactions by Directors](index=26&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code during the reporting period - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** set out in Appendix C3 of the Listing Rules as the code for directors' dealings in the Group's securities[75](index=75&type=chunk) - Each director confirmed that they have complied with the required standards set out in the Model Code throughout the reporting period[75](index=75&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[76](index=76&type=chunk) - As of June 30, 2025, the Company held no treasury shares[76](index=76&type=chunk) [Audit Committee](index=26&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising Mr. Song Gewei, Mr. Huang Runbin (Chairman), and Dr. Fan Yun, is responsible for reviewing financial information, overseeing financial reporting, risk management, and internal control procedures, and has reviewed the Group's unaudited interim condensed consolidated results for the six months ended June 30, 2025, confirming compliance with all applicable accounting principles and disclosure requirements - The Audit Committee members include Non-executive Director Mr. Song Gewei, Independent Non-executive Director Mr. Huang Runbin (Chairman), and Dr. Fan Yun[77](index=77&type=chunk) - The primary responsibilities of the Audit Committee are to review the Company's financial information and oversee the Company's financial reporting system, risk management, and internal control procedures[77](index=77&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated results for the six months ended June 30, 2025, and confirmed their compliance with all applicable accounting principles, standards, and requirements, with adequate disclosures made[77](index=77&type=chunk)[78](index=78&type=chunk) [Publication of Interim Results and 2025 Interim Report](index=27&type=section&id=Publication%20of%20Interim%20Results%20and%202025%20Interim%20Report) This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and posted on the aforementioned websites in due course - This interim results announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.kqysh.com.cn)[79](index=79&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and posted on the aforementioned websites in due course[79](index=79&type=chunk) [Board of Directors](index=27&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises Mr. Song Gewei (Chairman and Non-executive Director), Mr. Dai Wei, Mr. Kang Weiguo, and Ms. Wang Na (Executive Directors), and Mr. Jin Xiaoxian, Dr. Fan Yun, and Mr. Huang Runbin (Independent Non-executive Directors) - As of the date of this announcement, the Board of Directors comprises Mr. Song Gewei (Chairman and Non-executive Director); Executive Directors Mr. Dai Wei, Mr. Kang Weiguo, and Ms. Wang Na; and Independent Non-executive Directors Mr. Jin Xiaoxian, Dr. Fan Yun, and Mr. Huang Runbin[81](index=81&type=chunk)

[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, detailing the Group's financial performance, position, and accounting policies [Condensed Consolidated Income Statement](index=1&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, revenue increased by **19.4%** to **HKD 507,944 thousand**, and profit for the period surged by **48.9%** to **HKD 177,781 thousand**, driven by higher gross profit and reduced finance costs Key Data from Condensed Consolidated Income Statement (HKD thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 507,944 | 425,271 | | Cost of sales and services | (179,299) | (167,048) | | Gross profit | 328,645 | 258,223 | | Other income, gains and losses | 22,776 | 18,450 | | Marketing, selling and distribution expenses | (58,847) | (57,850) | | Operating and administrative expenses | (98,789) | (85,558) | | Amortization of intangible assets | (6,068) | (6,068) | | Finance costs | (3,753) | (6,144) | | Profit before tax | 183,969 | 121,053 | | Taxation | (6,188) | (1,646) | | Profit for the period | 177,781 | 119,407 | | Profit attributable to owners of the Company | 172,459 | 116,116 | | Basic earnings per share (HK cents) | 16.4 | 11.0 | - Revenue increased by **19.4%** year-on-year, and profit for the period increased by **48.9%** year-on-year[4](index=4&type=chunk) - Gross profit increased by **27.3%**, and finance costs decreased by **38.9%**[4](index=4&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income increased by **52.9%** to **HKD 174,496 thousand** from **HKD 114,801 thousand** last year, driven by profit growth despite foreign exchange differences from overseas operations shifting from gain to expense Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HKD thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | 177,781 | 119,407 | | Exchange differences arising on translation of foreign operations | (3,332) | 1,603 | | Reclassification of cumulative exchange reserve on disposal/deregistration of a foreign operation | 47 | (6,209) | | Total comprehensive income for the period | 174,496 | 114,801 | | Total comprehensive income attributable to owners of the Company | 169,736 | 111,256 | - Total comprehensive income for the period increased by **52.9%** year-on-year[5](index=5&type=chunk) - Exchange differences arising on translation of foreign operations shifted from a gain of **HKD 1,603 thousand** in 2024 to an expense of **HKD 3,332 thousand** in 2025[5](index=5&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Company's total net assets increased by **9.3%** to **HKD 590,527 thousand** from December 31, 2024, reflecting a significant rise in net current assets, optimized debt structure, and steady growth in shareholders' equity Key Data from Condensed Consolidated Statement of Financial Position (HKD thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current assets | 283,354 | 301,462 | | Current assets | 561,792 | 525,409 | | Current liabilities | (149,922) | (173,107) | | Net current assets | 411,870 | 352,302 | | Non-current liabilities | (104,697) | (113,713) | | Net assets | 590,527 | 540,051 | | Equity attributable to owners of the Company | 555,614 | 501,618 | | Total equity | 590,527 | 540,051 | - Net assets increased by **9.3%** to **HKD 590,527 thousand**[7](index=7&type=chunk) - Net current assets increased by **16.9%** to **HKD 411,870 thousand**[6](index=6&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details key financial information including the basis of preparation, principal accounting policies, revenue composition, segment results, finance costs, taxation, dividends, earnings per share, trade and other receivables/payables, and capital commitments, providing supplementary explanations for understanding the Group's financial performance [General Information and Basis of Preparation](index=5&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The Company is an exempted company incorporated in Bermuda with shares listed on the Stock Exchange. The condensed consolidated financial statements are presented in HKD and prepared in accordance with HKAS 34 'Interim Financial Reporting' and applicable disclosure requirements of the Listing Rules - The Company is an exempted company incorporated in Bermuda, with its shares listed on the Stock Exchange[8](index=8&type=chunk) - The financial statements are presented in HKD and prepared in accordance with HKAS 34 and the Listing Rules[8](index=8&type=chunk) [Principal Accounting Policies](index=5&type=section&id=Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies and methods consistent with the Group's annual consolidated financial statements for the year ended December 31, 2024. The application of revised HKFRSs during this interim period had no significant impact on the Group's financial position or performance - The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with the 2024 annual consolidated financial statements[9](index=9&type=chunk) - The application of revised HKFRSs had no significant impact on the financial position or performance during this interim period[10](index=10&type=chunk) [Revenue](index=6&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's total revenue reached **HKD 507,944 thousand**, a **19.4%** year-on-year increase. Major revenue sources were casino management services (**HKD 382,576 thousand**) and entertainment system sales and leasing (**HKD 125,368 thousand**), with the innovative and renewable energy business ceasing to contribute revenue Revenue Analysis (HKD thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Casino management services | 382,576 | 356,515 | | Entertainment systems (Macau) | 125,021 | 68,144 | | Entertainment systems (Overseas) | 347 | — | | Innovative and renewable energy solutions business | — | 612 | | **Total Revenue** | **507,944** | **425,271** | - Total revenue increased by **19.4%** year-on-year, primarily driven by casino management services and entertainment systems business[11](index=11&type=chunk) - The innovative and renewable energy solutions business has ceased to contribute revenue[11](index=11&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) For the six months ended June 30, 2025, the Group's main operating segments were casino management services and entertainment systems. The service agreement for casino management services will not be renewed after its expiry on December 31, 2025. The innovative and renewable energy solutions business was disposed of during the period - The main operating segments are casino management services, entertainment systems, and the disposed innovative and renewable energy solutions business[12](index=12&type=chunk) - The casino management services agreement for Casino Golden Dragon in Macau will not be renewed or extended after its expiry on December 31, 2025[12](index=12&type=chunk) - The Group has fully disposed of its equity interest in the subsidiary within the innovative and renewable energy solutions business segment[12](index=12&type=chunk) Segment Results (HKD thousands) | Segment | 2025 Revenue | 2025 Results | 2024 Revenue | 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Casino management services | 382,576 | 150,702 | 356,515 | 124,480 | | Entertainment systems | 125,368 | 48,509 | 68,144 | 7,876 | | Innovative and renewable energy solutions business | — | — | 612 | (918) | | **Consolidated Total** | **507,944** | **199,211** | **425,271** | **131,438** | Revenue by Business Location (HKD thousands) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Macau | 507,597 | 424,659 | | Mainland China | — | 612 | | Others | 347 | — | | **Total** | **507,944** | **425,271** | Major Customer Revenue Contribution (HKD thousands) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Casino management services | 382,576 | 356,515 | | Entertainment systems | 55,684 | 4,437 | | **Total** | **438,260** | **360,952** | [Finance Costs](index=10&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, total finance costs significantly decreased by **38.9%** to **HKD 3,753 thousand** from **HKD 6,144 thousand** in the prior year, primarily due to lower interest expenses on bank borrowings, shareholder loans, and lease liabilities Finance Costs (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest on bank borrowings | 1,526 | 2,059 | | Interest on shareholder loans | 1,249 | 2,582 | | Interest on lease liabilities | 978 | 1,503 | | **Total** | **3,753** | **6,144** | - Finance costs decreased by **38.9%** year-on-year, primarily due to lower interest expenses on various borrowings[19](index=19&type=chunk) [Profit Before Tax is Stated After Charging](index=11&type=section&id=Profit%20Before%20Tax%20is%20Stated%20After%20Charging) Profit before tax for the period is stated after charging various expenses, including total staff costs of **HKD 63,497 thousand** (**15.6%** year-on-year increase), research and development expenses of **HKD 22,111 thousand** (**45.4%** year-on-year increase), and casino management services commission fees of **HKD 16,278 thousand** (**31.6%** year-on-year decrease), while bank interest income significantly increased Items Charged to Profit Before Tax (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Directors' emoluments | 9,388 | 8,253 | | Total staff costs | 63,497 | 54,922 | | Cost of inventories recognized as expense (included in cost of sales and services) | 26,288 | 23,388 | | Cost of inventories recognized as expense (included in operating and administrative expenses) | 7,555 | 6,596 | | Depreciation of property, plant and equipment | 15,350 | 14,083 | | Depreciation of right-of-use assets | 7,648 | 7,957 | | Commission fees for casino management services | 16,278 | 23,798 | | Research and development expenses | 22,111 | 15,205 | | Bank interest income | 4,245 | 1,096 | | Gain on disposal/deregistration of subsidiaries | 965 | 6,209 | - Total staff costs increased by **15.6%** year-on-year to **HKD 63,497 thousand**[21](index=21&type=chunk) - Research and development expenses significantly increased by **45.4%** year-on-year to **HKD 22,111 thousand**[21](index=21&type=chunk) - Commission fees for casino management services decreased by **31.6%** year-on-year to **HKD 16,278 thousand**[21](index=21&type=chunk) [Taxation](index=12&type=section&id=Taxation) For the six months ended June 30, 2025, taxation expenses significantly increased to **HKD 6,188 thousand** from **HKD 1,646 thousand** in the prior year, primarily due to higher Macau Complementary Tax, while Mainland China and overseas subsidiaries had no tax provision due to absence of taxable profits Taxation Expenses (HKD thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Macau Complementary Tax | 5,000 | 250 | | Dividend tax | 1,188 | 1,358 | | PRC Enterprise Income Tax | — | 38 | | **Total** | **6,188** | **1,646** | - Macau Complementary Tax significantly increased due to the expiry of the income exemption period for SJM Resorts' gaming operations[23](index=23&type=chunk) - The Group is applying for an exemption approval for Macau Complementary Tax for the period from January 1, 2023, to December 31, 2025[23](index=23&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Board has resolved to declare an interim dividend of **7.5 HK cents** per share for the six months ended June 30, 2025, an increase from **5.0 HK cents** per share in the prior year. A final dividend of **11.0 HK cents** per share for 2024 was declared and paid during the period - A final dividend of **11.0 HK cents** per share for 2024 was declared and paid, totaling **HKD 115,740 thousand**[27](index=27&type=chunk) - The Board resolved to declare an interim dividend of **7.5 HK cents** per share for 2025, an increase from **5.0 HK cents** per share in the prior year[27](index=27&type=chunk) Dividend Distribution (HKD thousands) | Dividend Type | 2025 | 2024 | | :--- | :--- | :--- | | 2024 Final Dividend (Paid) | 115,740 | — | | 2025 Interim Dividend (Proposed) | 78,914 | 52,609 | [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share significantly increased by **49.1%** to **16.4 HK cents** from **11.0 HK cents** in the prior year, reflecting enhanced company profitability Basic Earnings Per Share (HK cents) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic earnings per share | 16.4 | 11.0 | | Profit attributable to owners of the Company (HKD thousands) | 172,459 | 116,116 | | Weighted average number of shares (thousands) | 1,052,185 | 1,052,185 | - Basic earnings per share increased by **49.1%** year-on-year to **16.4 HK cents**[28](index=28&type=chunk) - No diluted earnings per share is presented as there were no dilutive potential ordinary shares during the period[28](index=28&type=chunk) [Trade and Other Receivables](index=14&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, net trade and other receivables increased by **8.6%** to **HKD 109,982 thousand** from December 31, 2024, with net trade receivables rising to **HKD 71,190 thousand**, of which **94.0%** had the best credit rating and a small proportion of overdue accounts Trade and Other Receivables (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net trade receivables | 71,190 | 53,609 | | Deposits paid | 12,893 | 15,193 | | Amount due from an associate | 2,256 | 2,256 | | Loans receivable | — | 4,126 | | Other receivables | 9,908 | 11,424 | | Prepayments | 3,877 | 4,796 | | **Total** | **109,982** | **101,262** | - Net trade receivables increased to **HKD 71,190 thousand**, with **94.0%** having the best credit rating[30](index=30&type=chunk)[31](index=31&type=chunk) - Overdue trade receivables of **HKD 1,750 thousand** for 90 days or more were not considered in default[31](index=31&type=chunk) Ageing Analysis of Trade Receivables (HKD thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 66,926 | 48,353 | | 31 to 60 days | 285 | 445 | | 61 to 90 days | 2,222 | 304 | | 91 to 180 days | 25 | 2,343 | | 181 to 365 days | 1,693 | 1,027 | | Over 365 days | 39 | 1,137 | | **Total** | **71,190** | **53,609** | [Trade and Other Payables](index=15&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased by **2.9%** to **HKD 58,125 thousand** from December 31, 2024. Trade payables increased to **HKD 8,019 thousand**, while amounts due to directors and payables for property, plant, and equipment significantly decreased Trade and Other Payables (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 8,019 | 5,009 | | Accrued staff costs | 14,510 | 15,414 | | Accrued promotion expenses | 23,409 | 21,418 | | Amounts due to directors | 1,443 | 5,043 | | Payables for purchase of property, plant and equipment | 273 | 3,269 | | **Total** | **58,125** | **59,867** | - Trade payables increased by **60.1%** year-on-year to **HKD 8,019 thousand**[33](index=33&type=chunk) - Amounts due to directors and payables for purchase of property, plant and equipment significantly decreased[33](index=33&type=chunk) Ageing Analysis of Trade Payables (HKD thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 3,810 | 4,222 | | 31 to 60 days | 3,621 | 255 | | 61 to 90 days | 71 | 62 | | 91 to 365 days | 259 | 175 | | Over 365 days | 258 | 295 | | **Total** | **8,019** | **5,009** | [Capital Commitments](index=16&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital expenditure for property, plant, and equipment was **HKD 840 thousand**, a significant **89.2%** decrease from **HKD 7,812 thousand** on December 31, 2024 Capital Commitments (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted capital expenditure for property, plant and equipment | 840 | 7,812 | - Capital commitments significantly decreased by **89.2%**, reflecting a reduction in future capital expenditure plans[35](index=35&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's detailed discussion of the Group's business and financial performance for the six months ended June 30, 2025, covering an overview of results, segment performance, outlook, liquidity, financial resource management, capital commitments, foreign exchange risk, pledged assets, significant transactions, and updates on employees and directors [Business and Financial Review](index=17&type=section&id=Business%20and%20Financial%20Review) This section reviews the Group's overall business performance for the six months ended June 30, 2025, with significant growth in both total revenue and profit for the period. It details revenue contributions and profitability of each business segment and introduces Adjusted EBITDA as a key operating metric [Overview of Results](index=17&type=section&id=Overview%20of%20Results) For the six months ended June 30, 2025, the Group's total revenue increased by **19.4%** to **HKD 507.9 million**, and profit for the period surged by **48.9%** to **HKD 177.8 million**, primarily driven by increased revenue from Macau casino management services and electronic entertainment equipment sales - Total revenue increased by **19.4%** year-on-year to **HKD 507.9 million**[36](index=36&type=chunk) - Profit for the period increased by **48.9%** year-on-year to **HKD 177.8 million**[37](index=37&type=chunk) Reported Revenue Analysis (HKD millions) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Casino Golden Dragon | 382.6 | 356.5 | | Sales/leasing of electronic entertainment equipment and systems in Macau | 125.0 | 68.2 | | Overseas sales/leasing of electronic entertainment equipment and systems | 0.3 | — | | Innovative and renewable energy solutions business in Mainland China | — | 0.6 | | **Total Reported Revenue** | **507.9** | **425.3** | [Adjusted EBITDA](index=17&type=section&id=Adjusted%20EBITDA) For the six months ended June 30, 2025, Adjusted EBITDA was **HKD 211.8 million**, a **43.4%** year-on-year increase, primarily due to strong performance in Macau casino management services and electronic entertainment equipment and systems segments. Adjusted EBITDA is a non-HKFRS measure used to assess operating performance - Adjusted EBITDA increased by **43.4%** year-on-year to **HKD 211.8 million**[38](index=38&type=chunk) - Adjusted EBITDA is a non-HKFRS measure used to assess operating performance[38](index=38&type=chunk)[39](index=39&type=chunk) Reconciliation of Profit for the Period to Adjusted EBITDA (HKD millions) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period | 177.8 | 119.4 | | Interest income | (4.3) | (1.4) | | Finance costs | 3.8 | 6.1 | | Taxation | 6.2 | 1.6 | | Depreciation of property, plant and equipment | 15.4 | 14.1 | | Depreciation of right-of-use assets | 7.6 | 8.0 | | Amortization of intangible assets | 6.1 | 6.1 | | Gain on disposal/deregistration of subsidiaries | (1.0) | (6.2) | | Loss on disposal/write-off of property, plant and equipment | 0.7 | — | | Reversal of impairment loss on amount due from a joint venture | (0.4) | — | | Others | (0.1) | — | | **Adjusted EBITDA** | **211.8** | **147.7** | Adjusted EBITDA by Nature (HKD millions) | Business Segment | 2025 | 2024 | | :--- | :--- | :--- | | Casino Golden Dragon | 170.5 | 143.8 | | Electronic entertainment equipment and systems | 48.8 | 11.2 | | Other businesses | 1.3 | 0.2 | | Corporate and other expenses | (8.8) | (7.5) | | **Adjusted EBITDA** | **211.8** | **147.7** | - Casino Golden Dragon's Adjusted EBITDA increased by **18.6%** to **HKD 170.5 million**, primarily due to increased customer traffic and higher gaming revenue from Live Multi-Game terminals[42](index=42&type=chunk) - Adjusted EBITDA for electronic entertainment equipment and systems surged by **335.7%** to **HKD 48.8 million**, mainly due to increased sales revenue in Macau and higher upgrade service income[43](index=43&type=chunk) [Provision of Casino Management Services in Macau](index=19&type=section&id=Provision%20of%20Casino%20Management%20Services%20in%20Macau) For the six months ended June 30, 2025, Casino Golden Dragon's gross gaming revenue increased by **7.2%** year-on-year to **HKD 698.9 million**, driven by the rising popularity of Live Multi-Game terminals and increased customer traffic. The Group's share of total revenue grew by **7.3%** to **HKD 382.6 million** Casino Golden Dragon Operating Data (Average) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Traditional gaming tables | 20 | 20 | | Live Multi-Game (LMG) tables | 10 | 10 | | Live Multi-Game (LMG) terminals | 973 | 956 | | Slot machines and electronic table games | 95 | 95 | Casino Golden Dragon Key Operating Data (HKD millions/HKD thousands/HKD) | Item | Unit | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Gaming revenue from traditional gaming tables | HKD millions | 235.2 | 240.4 | | Gaming revenue from Live Multi-Game (LMG) | HKD millions | 439.7 | 385.6 | | Gaming revenue from slot machines and electronic table games | HKD millions | 24.0 | 25.7 | | **Gross Gaming Revenue** | **HKD millions** | **698.9** | **651.7** | | LMG gaming revenue/per terminal/per day | HKD | 2,497 | 2,216 | | Gaming revenue/per table/per day (total) | HKD thousands | 124.3 | 114.7 | - Casino Golden Dragon's gross gaming revenue increased by **7.2%** year-on-year to **HKD 698.9 million**[46](index=46&type=chunk) - The Group's share of Casino Golden Dragon's total revenue increased by **7.3%** year-on-year to **HKD 382.6 million**[47](index=47&type=chunk) [Development, Sales and Leasing of Electronic Entertainment Equipment and Systems and Royalty Income](index=21&type=section&id=Development%2C%20Sales%20and%20Leasing%20of%20Electronic%20Entertainment%20Equipment%20and%20Systems%20and%20Royalty%20Income) For the six months ended June 30, 2025, Macau electronic entertainment equipment and systems sales/leasing revenue surged by **83.3%** year-on-year to **HKD 125.0 million**, driven by increased demand for Live Multi-Game terminals and higher upgrade service income. Overseas markets also began contributing revenue - Macau electronic entertainment equipment and systems sales/leasing revenue increased by **83.3%** year-on-year to **HKD 125.0 million**[48](index=48&type=chunk) - Revenue growth was primarily driven by sales of gaming machines (**HKD 77.0 million**), other entertainment equipment and systems (**HKD 25.1 million**), and upgrade services for Live Multi-Game terminals (**HKD 21.6 million**)[50](index=50&type=chunk) - Overseas markets (Asia and North America) began contributing **HKD 300 thousand** in revenue, as the Group actively expands into these markets[49](index=49&type=chunk)[51](index=51&type=chunk) - No royalty income from licensees was recognized during the period[52](index=52&type=chunk) [Innovative and Renewable Energy Solutions Business in Mainland China](index=22&type=section&id=Innovative%20and%20Renewable%20Energy%20Solutions%20Business%20in%20Mainland%20China) The Group has strategically decided to exit the innovative and renewable energy solutions business in Mainland China, disposing of its entire equity interest in the relevant subsidiaries during the period and recognizing a gain on disposal of **HKD 1.0 million**. This move aims to allow the Group to focus on its core gaming business - The Group has decided to cease its innovative and renewable energy solutions business in Mainland China[53](index=53&type=chunk) - The entire equity interest in the relevant subsidiaries was disposed of, recognizing a gain on disposal of **HKD 1.0 million**[53](index=53&type=chunk) - This strategic move aims to allow the Group to focus on its core gaming business and optimize resources[53](index=53&type=chunk) [Outlook](index=22&type=section&id=Outlook) The Group will continue to focus on the casino mass market, enhancing competitiveness through investment in innovative technology and advanced electronic entertainment equipment. Macau's tourism recovery, relaxed individual visit scheme visas, and improved transportation will stimulate visitor demand. Despite the non-renewal of the Casino Golden Dragon management services agreement, the Group will actively explore new opportunities in Macau and international markets, leveraging AI to accelerate game development - The Group will focus on the casino mass market through strategic investments in innovative technology and the development of advanced electronic entertainment equipment[54](index=54&type=chunk) - Macau's tourism recovery, relaxed individual visit scheme visas, and improved transportation (e.g., Light Rail extension to Hengqin Port) will stimulate visitor demand[54](index=54&type=chunk) - Live Multi-Game terminals are increasingly important in Macau's gaming industry, with their share of gaming revenue rising to **2.1%** in H1 2025, a **22.5%** year-on-year increase[55](index=55&type=chunk)[56](index=56&type=chunk) - The Group will expand its game product line, launching new games like 'Super Bull' and 'Dragon Tiger Fight', and leverage AI to accelerate game design and development[57](index=57&type=chunk) - A new production line in Macau commenced operations on April 15, 2025, focusing on entertainment equipment manufacturing, with exports already reaching international markets[58](index=58&type=chunk) - The Group will actively expand into emerging gaming markets outside Macau, such as the Philippines, Sri Lanka, and Malaysia[59](index=59&type=chunk) - The Casino Golden Dragon management services agreement will not be renewed after its expiry on December 31, 2025, which is expected to significantly reduce the Group's revenue and profit attributable to shareholders[60](index=60&type=chunk) - The Group will continue to explore new opportunities in Macau and international markets, strengthening strategic partnerships and expanding its business footprint[61](index=61&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains a prudent financial management approach and a robust liquidity position. As of June 30, 2025, consolidated net assets increased by **9.3%** to **HKD 590.5 million**, primarily due to profit for the period. The gearing ratio decreased to **21.4%**, reflecting improved financial leverage [Pledged Bank Deposits and Bank Balances and Cash](index=24&type=section&id=Pledged%20Bank%20Deposits%20and%20Bank%20Balances%20and%20Cash) As of June 30, 2025, the Group held pledged bank deposits of **HKD 49.8 million** and bank balances and cash of **HKD 417.8 million**, both increasing from December 31, 2024. Bank balances are primarily denominated in HKD, MOP, and USD, with normal exchange rate risk Bank Deposits and Cash (HKD millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Pledged bank deposits | 49.8 | 48.1 | | Bank balances and cash | 417.8 | 389.2 | - Bank balances and cash are primarily denominated in HKD, MOP, and USD, with normal exchange rate risk[65](index=65&type=chunk) [Shareholder Loans](index=25&type=section&id=Shareholder%20Loans) As of June 30, 2025, the outstanding principal of the three-year term loan from Dr. Chan was **HKD 14.2 million**, a significant decrease from **HKD 25.6 million** on December 31, 2024, bearing interest at an annual rate of **12.5%** - The outstanding principal of the shareholder loan from Dr. Chan was **HKD 14.2 million**, a **44.5%** year-on-year decrease[66](index=66&type=chunk) - The loan is unsecured, bears interest at an annual rate of **12.5%**, and is repayable in monthly installments[66](index=66&type=chunk) [Borrowings and Gearing Ratio](index=25&type=section&id=Borrowings%20and%20Gearing%20Ratio) As of June 30, 2025, the Group's total outstanding debt was **HKD 126.1 million**, a **19.6%** decrease from December 31, 2024. The gearing ratio decreased to **21.4%**, primarily due to reduced total borrowings and increased net assets Total Outstanding Debt (HKD millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Secured and unsecured bank borrowings | 110.2 | 115.6 | | Unsecured and unguaranteed shareholder loans | 14.2 | 25.6 | | Unsecured and unguaranteed other borrowings | 0.2 | 10.5 | | Unsecured and unguaranteed amounts due to directors | 1.5 | 5.0 | | **Total** | **126.1** | **156.7** | - Total outstanding debt decreased by **19.6%** year-on-year to **HKD 126.1 million**[67](index=67&type=chunk) - The gearing ratio decreased to **21.4%** (December 31, 2024: **29.0%**), primarily due to reduced total borrowings and increased net assets[68](index=68&type=chunk) - The reduction in total borrowings was mainly due to the transfer of other borrowings following the disposal of the innovative and renewable energy business subsidiary, and the repayment of bank and shareholder loans[68](index=68&type=chunk) [Capital Commitments](index=26&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital commitments for property, plant, and equipment were **HKD 800 thousand**, a significant decrease from December 31, 2024. These commitments will be financed by the Group's internal resources Capital Commitments (HKD thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted capital expenditure for property, plant and equipment | 800 | 7,800 | - Capital commitments significantly decreased and will be financed by internal resources[71](index=71&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) Most of the Group's income, expenses, deposits, and borrowings are denominated in HKD, MOP, and USD. Due to the stable exchange rates of these currencies, the Group deems no specific hedging necessary. The Group faces net foreign exchange risk from RMB and manages it by closely monitoring exchange rate fluctuations - Most of the Group's operations are denominated in HKD, MOP, and USD, with normal exchange rate risk, requiring no specific hedging[72](index=72&type=chunk) - The Group faces net foreign exchange risk from RMB, which is managed by closely monitoring exchange rate fluctuations[72](index=72&type=chunk) [Pledged Assets of the Group](index=26&type=section&id=Pledged%20Assets%20of%20the%20Group) As of June 30, 2025, the Group's pledged assets included leasehold land and buildings with a total carrying amount of **HKD 181.4 million**, and bank time deposits of **HKD 49.8 million**, primarily used as collateral for bank borrowings and guarantees for SJM Resorts Pledged Assets (HKD millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Leasehold land and buildings (total carrying amount) | 181.4 | 185.1 | | Bank time deposits | 49.8 | 48.1 | - Pledged assets are primarily used as collateral for bank borrowings and guarantees for SJM Resorts[75](index=75&type=chunk) [Significant Acquisitions, Disposals and Material Investments](index=26&type=section&id=Significant%20Acquisitions%2C%20Disposals%20and%20Material%20Investments) Except for the disposal of the innovative and renewable energy solutions business disclosed in this interim results announcement, the Group made no other significant acquisitions, disposals, or material investments for the six months ended June 30, 2025 - Aside from the disposal of the innovative and renewable energy solutions business, there were no other significant acquisitions, disposals, or investments during the period[74](index=74&type=chunk) [Future Plans for Material Investments or Capital Assets](index=27&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the date of this interim results announcement, the Group has no other future plans for material investments or capital assets, apart from the disclosed capital commitments - Apart from the disclosed capital commitments, the Group has no other future plans for material investments or capital assets[76](index=76&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had approximately **760** employees, with total staff costs of **HKD 132.1 million**, a **14.6%** year-on-year increase. The Group's remuneration policy is based on employee qualifications, capabilities, performance, and market trends, offering discretionary bonuses and other benefits - The Group has approximately **760** employees, with about **400** engaged in gaming operations at Casino Golden Dragon[77](index=77&type=chunk) - Total staff costs amounted to **HKD 132.1 million**, a **14.6%** year-on-year increase[77](index=77&type=chunk) - The remuneration policy is based on qualifications, capabilities, performance, market trends, and operating results, offering discretionary bonuses, share options, and retirement benefits[77](index=77&type=chunk) [Issue of Equity Securities for Cash](index=27&type=section&id=Issue%20of%20Equity%20Securities%20for%20Cash) For the six months ended June 30, 2025, the Company did not issue any equity securities for cash or dispose of any treasury shares - No equity securities were issued or treasury shares disposed of for cash during the period[78](index=78&type=chunk) [Purchase, Sale or Redemption of the Company's Shares](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Shares) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, redeemed, or cancelled any of the Company's listed securities - No listed securities of the Company were purchased, sold, redeemed, or cancelled during the period[79](index=79&type=chunk) [Update on Directors' Information](index=27&type=section&id=Update%20on%20Directors%27%20Information) Executive Director Mr. Shan Shiyong's monthly salary was revised to **HKD 500,000** effective January 1, 2025. Mr. Zhang Jianjun resigned as Executive Director and Co-Chairman on March 27, 2025, and Dr. Chan was re-designated as Chairman of the Board - Executive Director Mr. Shan Shiyong's monthly salary was revised to **HKD 500,000** effective January 1, 2025[81](index=81&type=chunk) - Mr. Zhang Jianjun resigned as Executive Director and Co-Chairman on March 27, 2025[81](index=81&type=chunk) - Dr. Chan was re-designated from Co-Chairman to Chairman of the Board[81](index=81&type=chunk) [Corporate Governance and Other Information](index=28&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the Company's corporate governance practices during the reporting period, including compliance with the Corporate Governance Code and Model Code, as well as the review process for the interim report and post-reporting period events [Compliance with the Corporate Governance Code](index=28&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Company has complied with the Corporate Governance Code throughout the period, except for Code Provision C.2.1 (separation of roles of chairman and chief executive). Dr. Chan serves as both Chairman and Managing Director, a structure the Board believes is in the best interests of shareholders and will be reviewed in due course - The Company complied with the Corporate Governance Code, except for Code Provision C.2.1 (separation of roles of chairman and chief executive)[83](index=83&type=chunk) - Dr. Chan serves as both Chairman and Managing Director, a structure the Board believes provides strong and consistent leadership[84](index=84&type=chunk) - The Board will review the current structure in due course[84](index=84&type=chunk) [Compliance with the Model Code](index=28&type=section&id=Compliance%20with%20the%20Model%20Code) Following inquiries with all Directors, each has confirmed compliance with the Model Code as set out in Appendix C3 of the Listing Rules for the six months ended June 30, 2025 - All Directors have confirmed compliance with the Model Code for the six months ended June 30, 2025[85](index=85&type=chunk) [Review of the 2025 Interim Report and Unaudited Condensed Consolidated Financial Statements for the Six Months Ended June 30, 2025](index=28&type=section&id=Review%20of%20the%202025%20Interim%20Report%20and%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) The 2025 Interim Report and unaudited condensed consolidated financial statements have been reviewed by the Board's Audit Committee and by Deloitte Touche Tohmatsu, the independent auditor, in accordance with Hong Kong Standard on Review Engagements 2410 - The interim report and financial statements have been reviewed by the Audit Committee[86](index=86&type=chunk) - Deloitte Touche Tohmatsu, the independent auditor, has reviewed the financial statements[86](index=86&type=chunk) [Events After the Reporting Period](index=28&type=section&id=Events%20After%20the%20Reporting%20Period) Except for those disclosed elsewhere in this interim results announcement, no significant events occurred after June 30, 2025, up to the date of this interim results announcement that require disclosure - No other significant events after the reporting period require disclosure[87](index=87&type=chunk) [Definitions](index=29&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in the report, ensuring readers have a clear understanding of the content - Definitions are provided for key terms such as 'Adjusted EBITDA', 'Corporate Governance Code', and 'Live Multi-Game terminals'[88](index=88&type=chunk)[90](index=90&type=chunk) [Board of Directors Information](index=30&type=section&id=Board%20of%20Directors%20Information) This section lists the Company's Executive Directors and Independent Non-executive Directors as of the announcement date, including Dr. Chan Chip, Chairman and Managing Director - Lists the Company's Executive Directors as Dr. Chan Chip (Chairman and Managing Director) and Mr. Shan Shiyong[89](index=89&type=chunk) - Lists the Company's Independent Non-executive Directors as Mr. Li Chung Yeung, Ms. Tang Kiu Sum, and Dr. Liu Ka Ying[89](index=89&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 （股份代號：9660） 截至2025年6月30日止六個月的中期業績公告 Horizon Robotics（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司截至 2025年6月30日止六個月（「報告期間」）的未經審計中期合併業績，連同2024年相 應期間的比較數字。該等中期業績乃摘錄自本公司未經審計中期財務報表，且已 由董事會審計委員會（「審計委員會」）審閱。 於本公告內，「我們」指本公司及（倘文義另有所指）本集團（定義見「財務資料附 註」一節中的「一般資料」）。 財務業績摘要 | | 截至6月30日止六個月 | | | | --- | --- | --- | --- | | | 2025年 | 2024年 | 變動(%) | | | （人民幣千元，百分比除外） | | | | 來自客戶合同的收入 | 1,566,756 | 934,599 | 67.6% | | 毛利 | 1,023,972 ...

香 港 交 易 及 結 算 所 有 限 公 司 以 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 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 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 CHINA AEROSPACE INTERNATIONAL HOLDINGS LIMITED 中國航天國際控股有限公司 （於香港註冊成立的有限公司） （股份代號：31） 2025年 中 期 業 績 公 告 簡 明 綜 合 損 益 表 截 止2025年6月30日 六 個 月 | | | | | | | | | | | | | | | | | | | | 截 止2025年 截 止2024年 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ...

（在中華人民共和國註冊成立的股份有限公司） （股份代號：998） 截至2025年6月30日止六個月中期業績公告 中信銀行股份有限公司（「本行」）董事會（「董事會」）欣然宣佈本行及其附屬公司（「本集 團」）截至2025年6月30日止六個月的中期業績。本業績公告列載本行截至2025年6月30 日止六個月之中期報告全文 ，其內容是根據適用的《香港聯合交易所有限公司證券上市 規則》（「香港上市規則」）披露要求編製 。本集團編製的截至2025年6月30日止六個月的中 期財務信息已經畢馬威會計師事務所根據香港審閱準則審閱。本行董事會之審計與關聯 交易控制委員會已審閱此中期業績 。本業績公告於本行的網站（www.citicbank.com)及 香港聯合交易所有限公司（「香港聯交所」或「聯交所」）的網站(www.hkexnews.hk)發佈。 本行將於適當時候發佈截至2025年6月30日止六個月的中期報告，中期報告將在上述網 站可供查詢。 暫停股份過戶登記 經董事會審議通過，本行擬提交臨時股東大會審議 2025 年中期利潤分配方案， 每 10 股派發現金股息 1.88 元 人 民 幣（ 含 稅 ）， 按 截 至 2025 年 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 GHW International （於開曼群島註冊成立的有限公司） （股份代號：9933） 中期業績公告 截 至 2025年 6 月 30 日止六個月 財務摘要 GHW International（「本公司」）之董事（「董事」）會（「董事會」）欣然公佈本公司及其附 屬公司（統稱「本集團」）截至2025年6月30日止六個月之未經審核簡明綜合業績連同 截至2024年6月30日止六個月之比較數字如下。 – 1 – ‧ 截至2025年6月30日止六個月，本集團的收益達約人民幣 1,856.7百萬元，與 2024年同期相較，增加約人民幣66.5百萬元或3.7%。 ‧ 截至2025年6月30日止六個月，本集團的毛利達約人民幣170.5百萬元，與 2024年同期相較，減少約人民幣24.0百萬元或12.4%。 ‧ 截至2025年6月30日止六個月，本集團的純利達約人民幣 7.9百萬元，與 2024年同期相較，增加約人 ...

香港交易及結算所有限公司和香港聯合交易所有限公司對本公告之內 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 就因本公告之全部或任何部份內容所產生或因依賴該等內容所引致之 任 何 損 失 承 擔 任 何 責 任。 （於百慕達註冊成立之有限公 司） （股份代 號：111） 2025年中期業績公告 董事會欣然宣佈本集團截至 2025 年 6 月 3 0 日 止 6 個月的未經審核綜合業 績如下： 簡明綜合損益表 截 至2025年6月3 0日 止6個月－未經審核 | | | 截 至6月3 0日 | 止6個 月 | | --- | --- | --- | --- | | | | 2025年 | 2024年 | | | 附 註 | 千港元 | 千港元 | | | | （未經審核）（未經審核） | | | 收 益 | 3 | 91,808 | 89,283 | | 其他收入 | 3 | 412 | 3,068 | | 其 他 收 益／（虧 損）淨 額 | 3 | 10,625 | (5,641) | | | | 102,845 | 86,710 | | ...