公司資料 目錄 | 公司資料 | 2 | | --- | --- | | 財務概要 | 5 | | 主席報告 | 6 | | 管理層的討論及分析 | 8 | | 中期簡要綜合損益表 | 16 | | 中期簡要綜合全面收益表 | 17 | | 中期簡要綜合財務狀況表 | 18 | | 中期簡要綜合權益變動表 | 20 | | 中期簡要綜合現金流量表 | 22 | | 中期簡要綜合財務資料附註 | 24 | | 企業管治 | 73 | | 其他資料 | 74 | | 土地儲備一覽表 | 80 | 董事會 陳卓林先生 （主席兼總裁） * 岳元女士* 陳卓雄先生**（於2025年7月11日調任為非執行董事） 陳卓喜先生** 陳卓南先生** 鄺志強先生# 許照中先生# JP 彭說龍博士# 黃奉潮先生（於* 2025年9月19日辭任） JP 太平紳士 董事委員會 審核委員會 鄺志強先生 （委員會主席） 許照中先生 JP 彭說龍博士 薪酬委員會 彭說龍博士 （委員會主席） 鄺志強先生 許照中先生 JP 岳元女士 提名委員會 許照中先生 JP （委員會主席） 鄺志強先生 彭說龍博士 岳元女士 風險管理委員會 岳元女士 （委員 ...

(Stock Code: 0532) 中期報告 Wong's Kong King International (Holdings) Limited（「本公司」）之董事會謹此宣 佈，本公司及其附屬公司（「本集團」）截至二零二五年六月三十日止六個月之未 經審核中期簡明綜合業績連同二零二四年同期之比較數字如下： 中期簡明合併利潤表 截至二零二五年六月三十日止六個月 | | | 截至六月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | | （未經審核） | （未經審核） | | | 附註 | 港幣千元 | 港幣千元 | | 收益 | 7 | 1,817,904 | 1,673,274 | | 其他收益，淨額 | 8 | 8,242 | 4,655 | | 原材料及已動用消耗品 | | (832,912) | (849,844) | | 購買製成品 | | (505,396) | (317,011) | | 製成品及在製品存貨之變動 | | (63,866) | (142,009) | | 僱員福利開支 | | (280,359) | (30 ...

2025 中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 4 | | 管理層討論與分析 | 5 | | 權益披露 | 16 | | 企業管治及其他資料 | 19 | | 簡明綜合損益及其他全面收益表 | 21 | | 簡明綜合財務狀況表 | 22 | | 簡明綜合權益變動表 | 24 | | 簡明綜合現金流量表 | 25 | | 簡明綜合財務報表附註 | 26 | 公司資料 依波路控股有限公司（「本公司」，連同其附屬公司統稱「本集團」） 董事 執行董事 Teguh Halim先生 （董事會（「董事會」）主席） 孔樂先生（於2025年5月29日獲委任） 林黎女士（於2025年5月29日退任） 非執行董事 熊鷹先生 獨立非執行董事 余志傑先生 項婷女士（於2025年5月29日獲委任） 吳梓爗先生（於2025年5月29日獲委任） 陳麗華女士（於2025年5月29日退任） Teguh Halim先生 （主席） 孔樂先生（於2025年5月29日獲委任） 林黎女士（於2025年5月29日退任） 投資委員會 公司秘書 紀少櫻女士 審核委員會 余志傑先生 （主席） 項婷女士（於2025 ...

中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 4 | | 管理層討論及分析 | 5 | | 其他資料 | 13 | | 中期簡明綜合損益表 | 24 | | 中期簡明綜合其他全面收益表 | 25 | | 中期簡明綜合財務狀況表 | 26 | | 中期簡明綜合權益變動表 | 28 | | 中期簡明綜合現金流量表 | 29 | | 中期簡明綜合財務資料附註 | 31 | 2 4 5 公司資料 董事會 執行董事 劉乃岳先生 （主席） 蔡曉昕女士 劉佩瑤女士 李芳女士 曲國輝先生 劉鐵強先生 非執行董事 邵輝先生 獨立非執行董事 冼國明先生 鐘明山先生 徐宗政先生 劉京平女士 審核委員會 鐘明山先生 （主席） 冼國明先生 徐宗政先生 薪酬委員會 徐宗政先生 （主席） 鐘明山先生 冼國明先生 提名委員會 冼國明先生 （主席） 徐宗政先生 鐘明山先生 歐陽銘賢先生 王海婷女士 授權代表 劉乃岳先生 歐陽銘賢先生 核數師 香港立信德豪會計師事務所有限公司 （於二零二五年七月二十五日獲委任） 執業會計師 註冊公眾利益實體核數師 香港 干諾道中111號 永安中心25樓 安永會計師事務所 ...

Financial Performance - For the six months ended June 30, 2025, the company reported total revenue of HKD 208,877, a significant decrease from HKD 1,000,000 in the same period of 2024[4] - The net loss attributable to the company's owners for the period was HKD 10,501, compared to a net loss of HKD 368,847 in the prior year, indicating a substantial improvement[7] - The total comprehensive income for the period was HKD 1,676, a significant recovery from a comprehensive loss of HKD 381,358 in the same period last year[7] - The pre-tax loss for the six months ended June 30, 2025, was HKD 10,501,000, a significant improvement from a loss of HKD 370,837,000 in the same period of 2024, representing a reduction of approximately 97.2%[12] - The group reported a loss attributable to owners of the company of HKD 10,501,000 for the six months ended June 30, 2025, compared to a loss of HKD 368,847,000 for the same period in 2024[41] - The company recorded a loss of approximately HKD 10,501,000 for the period, a significant decrease of about 97.2% compared to a loss of HKD 368,847,000 in the same period last year[89] Asset and Equity Changes - Non-current assets increased to HKD 386,802 from HKD 377,334, showing a growth of approximately 2%[9] - Current assets decreased to HKD 121,386 from HKD 139,761, a decline of about 13%[9] - The company's total equity as of June 30, 2025, was HKD 502,810, slightly up from HKD 501,134 at the end of 2024[10] - The net asset value per share remained stable at HKD 0.32, unchanged from the previous year[10] - Total assets decreased to HKD 508,188,000 as of June 30, 2025, from HKD 517,095,000 as of December 31, 2024[32] - The group's total liabilities decreased to HKD 5,378,000 as of June 30, 2025, from HKD 15,961,000 as of December 31, 2024[32] Cash Flow and Investments - Operating cash flow before changes in working capital was HKD (40,994,000), slightly improved from HKD (43,453,000) in 2024, indicating a 5.3% reduction in cash outflow[15] - The net cash generated from investing activities was HKD 2,626,000, down from HKD 5,250,000 in 2024, reflecting a decrease of 50%[15] - The company reported a decrease in cash and cash equivalents to HKD 44,802,000 at the end of June 2025, down from HKD 105,127,000 at the end of June 2024, a decline of approximately 57.4%[18] - The company experienced a decrease in cash flow from operating activities, with a net cash outflow of HKD (6,302,000) compared to HKD (18,112,000) in 2024, reflecting an improvement of approximately 65.2%[15] Expenses and Impairments - The company's administrative expenses decreased to HKD 49,486 from HKD 55,153, reflecting a reduction of approximately 10%[4] - Interest income from banks and financial institutions decreased to HKD 208,000 in 2025 from HKD 760,000 in 2024, a drop of about 72.6%[28] - The company recorded a loss of HKD 5,065,000 from the impairment of property, plant, and equipment, compared to a gain of HKD 74,862,000 in the previous year, indicating a significant shift in asset valuation[12] - Employee benefits expenses totaled HKD 7,185,000 for the six months ended June 30, 2025, compared to HKD 20,179,000 for the same period in 2024[36] Foreign Exchange and Financial Assets - The company reported a foreign exchange gain of HKD 12,177 during the period, contrasting with a loss of HKD 12,410 in the same period of 2024[7] - The fair value of financial assets measured at fair value through profit or loss as of June 30, 2025, is HKD 48,880,000[77] - The fair value of non-listed equity securities measured at fair value through other comprehensive income as of June 30, 2025, is HKD 21,936,000[77] - The total fair value of financial assets as of June 30, 2025, is HKD 70,816,000, combining both listed and non-listed securities[77] Share Options and Management - The company has adopted a share option scheme to incentivize selected participants, including employees and directors, as of June 27, 2011[56] - The maximum number of shares that can be issued under the 2021 plan is 133,271,400 shares, representing 10% of the issued share capital as of the adoption date of the plan[62] - The total number of options granted to directors, employees, and other participants under both the 2011 and 2021 plans is disclosed in the report[64] - The remuneration for key management personnel for the six months ended June 30, 2025, is HKD 3,000,000, compared to HKD 4,289,000 for the same period in 2024[72] Corporate Governance and Future Outlook - The audit committee, composed solely of independent non-executive directors, reviewed the group's financial reporting processes during the period[114] - The company anticipates a conservative investment approach due to ongoing macroeconomic uncertainties, including fluctuating U.S. tariff policies and geopolitical complexities[105] - The board is in the process of selecting suitable candidates for the chairman position, which has been vacant since February 2023[112]

Financial Performance - In the first half of 2025, SAINT BELLA Inc. reported a total revenue growth of 35.0% to RMB 523 million, with operating revenue increasing by 25.6% to RMB 449 million[10]. - The adjusted net profit surged by 126.2% year-on-year to RMB 388 million, with a net profit margin improvement of 3.8 percentage points to 8.6%[11]. - The core postpartum care business revenue grew by 36.5% to RMB 460 million, with operating revenue rising by 25.3% to RMB 387 million[12]. - The company achieved a revenue of RMB 449.5 million in the first half of 2025, representing a year-on-year growth of 25.6%[22]. - The gross profit was RMB 169.1 million, up 38.9% year-on-year, with a gross margin of 37.6%, an increase of 3.6 percentage points compared to the previous year[22]. - The company reported a net profit of RMB 326.9 million in the first half of 2025, with an adjusted net profit of RMB 38.8 million, reflecting an adjusted net profit margin of 8.6%, up 3.8 percentage points year-on-year[22]. - Revenue increased by 25.6% from RMB 357.8 million for the six months ended June 30, 2024, to RMB 449.5 million for the six months ended June 30, 2025[37]. - Gross profit for the same period was RMB 169,102,000, representing a gross margin of 37.6%, up from RMB 121,748,000 in 2024[96]. - The net profit for the six months ended June 30, 2025, was RMB 326,899,000, a significant recovery from a net loss of RMB 479,870,000 in 2024[97]. Business Expansion - The number of new stores opened in the first half of 2025 reached 36, expanding the total network to 113 stores globally[13]. - The company plans to expand its business into five overseas cities in the second half of the year, aiming to enhance its global presence[18]. - The total number of maternity centers globally reached 113 as of June 30, 2025, with 36 new centers opened in the first half of the year[23]. - The number of entrusted management maternity centers increased by 34 to a total of 53, with revenue from these centers reaching RMB 73.0 million, a year-on-year increase of 159.6%[22]. - The maternity center business is projected to grow at a compound annual growth rate (CAGR) of 20.1% from 2019 to 2024, with a current market penetration rate of approximately 6% in China, indicating significant growth potential[23]. Customer Engagement - Customer referral rate increased to 40.2%, up 3 percentage points year-on-year, with membership numbers rising by 105.8% to 16,200[13]. - The company’s unique business model has resulted in a high customer conversion rate of 93.8% for additional services purchased by postpartum care clients[13]. - Membership increased by 16,200, a substantial year-on-year growth of 105.8%, driven by strong brand power and effective marketing policies[25]. - The average contract value for postpartum recovery services for the brand Shengbela was RMB 46,021, an increase of 8.1% from RMB 42,572[27]. - The average contract value for postpartum recovery services for the brand Aiyu was RMB 21,456, a significant increase of 36.3% from RMB 15,743[27]. Cost Management - The company’s SaaS and AI technology applications led to a decrease in marketing and management expense ratios by 0.6 and 4.4 percentage points, respectively[11]. - The company’s marketing expense ratio decreased to 12.0%, down 0.6 percentage points, while the management expense ratio fell to 22.1%, down 4.4 percentage points[22]. - Labor costs rose by 30.4% from RMB 78.4 million to RMB 102.2 million, reflecting the expansion of the maternity center network and home care services[39]. - Advertising expenses increased by 28.3% from RMB 28.3 million to RMB 36.3 million, in line with business expansion[43]. Research and Development - The company launched three innovative products in the first half of 2025, contributing to a 10.6% increase in business revenue and a gross margin of 72.4%[35]. - Research and development expenses for the period were RMB 5,674 thousand, down from RMB 6,520 thousand in the previous year[123]. Financial Health - The company’s total liabilities decreased significantly to RMB 476,867,000 from RMB 2,081,260,000, indicating improved financial health[100]. - The company’s debt as of June 30, 2025, totaled RMB 175.83 million, an increase from RMB 123.23 million as of June 30, 2024[64]. - The interest-bearing bank loans amounted to RMB 39.2 million as of June 30, 2025, a significant increase from RMB 14.3 million in the same period of 2024[65]. - The asset-liability ratio as of June 30, 2025, was 36.3%, compared to 21.1% as of June 30, 2024[61]. - The company recognized a foreign exchange gain of RMB 51,000 during the period, compared to a loss of RMB 720,000 in the previous year[97]. Shareholder Information - As of June 30, 2025, the company has a total of 609,733,000 issued shares, with Mr. Xiang Hua holding 212,466,000 shares, representing 34.85% ownership[72]. - Major shareholder Ms. Dai Yingyan holds 212,466,000 shares, also representing 34.85% ownership, indicating a significant concentration of ownership[73]. - Primecare BVI, a major shareholder, holds 191,219,400 shares, accounting for 31.36% of the total shares[73]. - Tencent Mobility Limited and Tencent Holdings Limited each hold 62,305,100 shares, representing 10.22% ownership each[73]. Compliance and Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance since the listing date on June 26, 2025[80]. - The audit committee has reviewed the interim financial results for the six months ending June 30, 2025, ensuring compliance with relevant accounting standards[83]. - The company has confirmed compliance with the standard code of conduct for securities trading by all directors since the listing date[81]. Environmental and Social Responsibility - The company aims to reduce its electricity consumption per unit of revenue by 10% by 2028 compared to 2024 levels[89]. - The company has not incurred any significant costs related to compliance with applicable environmental laws and regulations during the reporting period[90].

[Definitions](index=3&type=section&id=Definitions) [Company Information](index=8&type=section&id=Company%20Information) [Financial and Business Highlights](index=10&type=section&id=Financial%20and%20Business%20Highlights) Cirrus Aircraft's H1 2025 revenue increased 25.1% to $594.5 million, with net profit surging 82.5% to $65 million, driven by higher deliveries, improved pricing, and growth in services - The latest **SR Series G7+ model** was launched in H1 2025, featuring the standard **Safe Return™ emergency autoland system**, and new **Cirrus IQ PRO™**-enabled automatic database updates, runway occupancy awareness, and intelligent pitot heat functions[14](index=14&type=chunk) H1 2025 Key Financial Data Comparison | Metric | H1 2025 (USD Thousands) | H1 2024 (USD Thousands) | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | 594,488 | 475,386 | 25.1% | | Gross Profit | 215,003 | 163,441 | 31.5% | | Profit Before Tax | 82,108 | 44,068 | 86.3% | | Profit for the Period | 64,966 | 35,607 | 82.5% | - Cirrus Services and other revenue increased from approximately **$77.5 million** in H1 2024 to approximately **$96.2 million** in H1 2025, primarily driven by growth in the JetStream program and flight training business[14](index=14&type=chunk) - The company is committed to smoothing the usual seasonal delivery pattern between the first and second halves of the year by improving production line consistency and predictability[14](index=14&type=chunk) [Business Review](index=12&type=section&id=Business%20Review) Cirrus Aircraft, an innovator in private aviation, designs, manufactures, and sells SR2X series and Vision Jets, certified in over 60 countries, focusing on safety, technology, and customer experience - The company designs, develops, manufactures, and sells **SR2X series** and **Vision Jets**, having delivered over **10,000 SR2X series aircraft** and over **600 Vision Jets**, with certifications in over **60 countries**[18](index=18&type=chunk) - The company's design philosophy is customer-centric, focusing on enhancing the aviation experience through safety, service, advanced high-performance technology, connectivity, ease of use, comfort, and personalization[19](index=19&type=chunk) - Equipped with the patented **Cirrus Airframe Parachute System** (which has saved over **250 lives**) and the **Safe Return emergency autoland system** (standard on all models delivered since May 2025), the company boasts the safest accident record in US general aviation, with a total accident rate one-third of the industry average[19](index=19&type=chunk) - The company employs a "close to customer" sales model, establishing sales organizations in over **36 countries** through sales agents and Cirrus sales agents, while also providing a comprehensive after-sales ownership and support ecosystem through the "Cirrus Services and Other" business segment[20](index=20&type=chunk)[21](index=21&type=chunk) [Business Development](index=14&type=section&id=Business%20Development) As of June 30, 2025, Cirrus Aircraft delivered over 10,000 SR2X series and 600 Vision Jets, holding 1,056 aircraft in backlog, while actively smoothing production seasonality - As of June 30, 2025, the company has delivered over **10,000 SR2X series aircraft** and over **600 Vision Jets**, with a backlog of **1,056 aircraft**, including approximately **229 Vision Jet reservations**[22](index=22&type=chunk) - For the six months ended June 30, 2025, combined net orders for SR2X and Vision Jets decreased by **121 aircraft** to **241**, primarily due to the G7 series launch stimulating orders in H1 2024, and the G7+ series launch in May 2025 altering order patterns[22](index=22&type=chunk) - The company maintains a competitive edge in product development and innovation through continuous product portfolio updates, development of innovative safety features, mastery of advanced materials, aircraft certification, and integration of advanced technologies[22](index=22&type=chunk) - For the six months ended June 30, 2025, the company produced and delivered more aircraft than in the prior period, with **411 aircraft produced** (360 SR2X, 51 Vision Jets) and **350 delivered** (305 SR2X, 45 Vision Jets), aiming to smooth the full-year delivery pace[24](index=24&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [1. Overview](index=15&type=section&id=1.%20Overview) For the six months ended June 30, 2025, the Group's revenue reached $594.5 million and profit was $65 million, driven by increased aircraft deliveries and a shift to more consistent performance H1 2025 Key Financial Data Overview | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | | :--- | :--- | :--- | | Revenue | 594.5 | 475.4 | | Profit | 65.0 | 35.6 | | Selling and Marketing Expenses | 63.6 | 57.0 | | General and Administrative Expenses | 70.0 | 60.3 | - The increase in deliveries has altered the company's historical general delivery pattern, leading to more consistent results not seen in prior years[25](index=25&type=chunk) [2. Revenue](index=15&type=section&id=2.%20Revenue) For the six months ended June 30, 2025, revenue increased to $594.5 million, up 25.1% year-over-year, due to 63 additional aircraft deliveries and higher average selling prices for SR2X and Vision Jets H1 2025 Revenue and Delivery Comparison | Metric | H1 2025 | | :--- | :--- | | Revenue (USD Millions) | 594.5 | | Aircraft Deliveries (Units) | 350 | | SR2X Deliveries (Units) | 305 | | Vision Jet Deliveries (Units) | 45 | - The average selling price for SR2X aircraft deliveries from **$1.04 million** in the prior period to approximately **$1.14 million**; Vision Jet deliveries' average selling price increased from **$3.33 million** to **$3.48 million**[26](index=26&type=chunk) - Cirrus Services and other revenue increased by approximately **$18.7 million** compared to the prior period[26](index=26&type=chunk) [3. Cost of Sales](index=15&type=section&id=3.%20Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales increased to $379.5 million, primarily due to higher aircraft deliveries, G7+ series launch costs, and growth in Cirrus Services and other sales Cost of Sales Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 379.5 | 311.9 | Increase 67.6 | - The increase in cost of sales is primarily attributable to higher aircraft deliveries, increased costs associated with the launch of the G7+ series, and increased sales in Cirrus Services and other[29](index=29&type=chunk) [4. Gross Profit and Gross Margin](index=16&type=section&id=4.%20Gross%20Profit%20and%20Gross%20Margin) For the six months ended June 30, 2025, gross profit increased to $215 million, and gross margin improved from 34.4% to 36.2%, driven by higher aircraft deliveries, improved pricing, and growth in Cirrus Services and other sales Gross Profit and Gross Margin Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 215.0 | 163.4 | Increase 51.6 | | Gross Margin | 36.2% | 34.4% | Increase 1.8 percentage points | - The increase in gross profit and gross margin is primarily due to higher aircraft deliveries resulting from the company's efforts to smooth seasonal deliveries, increased aircraft pricing, and increased sales in Cirrus Services and other[30](index=30&type=chunk) [5. Selling and Marketing Expenses](index=16&type=section&id=5.%20Selling%20and%20Marketing%20Expenses) For the six months ended June 30, 2025, selling and marketing expenses increased 11.6% to $63.6 million, mainly due to higher costs supporting the growth of Cirrus Services and other businesses Selling and Marketing Expenses Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 63.6 | 57.0 | Increase 6.6 (11.6%) | - The increase in selling and marketing expenses is primarily due to increased costs supporting the growth of Cirrus Services and other[31](index=31&type=chunk) [6. General and Administrative Expenses](index=16&type=section&id=6.%20General%20and%20Administrative%20Expenses) For the six months ended June 30, 2025, general and administrative expenses increased 16.1% to $70 million, attributed to a base effect from reinsurance recovery in 2024 and higher R&D costs General and Administrative Expenses Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | General and Administrative Expenses | 70.0 | 60.3 | Increase 9.7 (16.1%) | - This increase is primarily attributable to the recovery of identified recoverable reinsurance in 2024, which reduced expenses, and increased research and development costs[32](index=32&type=chunk) [7. Finance Costs](index=17&type=section&id=7.%20Finance%20Costs) For the six months ended June 30, 2025, finance costs decreased to $2 million, mainly due to a reduction in principal borrowings from payments to lenders Finance Costs Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Finance Costs | 2.0 | 2.7 | Decrease 0.7 | - The decrease in finance costs is primarily due to a reduction in the principal amount of borrowings from payments made to lenders[33](index=33&type=chunk) [8. Profit for the Period](index=17&type=section&id=8.%20Profit%20for%20the%20Period) For the six months ended June 30, 2025, the Group's profit for the period increased significantly to $65 million from $35.6 million in the prior year, reflecting the combined impact of revenue growth and cost control Profit for the Period Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 65.0 | 35.6 | Increase 29.4 | [9. Liquidity and Working Capital](index=17&type=section&id=9.%20Liquidity%20and%20Working%20Capital) As of June 30, 2025, cash and bank balances decreased to $340.4 million, mainly due to increased inventory, fixed asset purchases for capacity expansion, development projects, and higher H1 working capital needs Liquidity and Working Capital Overview | Metric | June 30, 2025 (USD Millions) | December 31, 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 340.4 | 391.8 | Decrease 51.4 | | Total Current Assets | 774.5 | 723.6 | Increase 50.9 | | Total Current Liabilities | 502.9 | 448.0 | Increase 54.9 | - The decrease in cash and bank balances is primarily due to increased inventory for product manufacturing, purchases of fixed assets to increase capacity, development projects, and normal working capital requirements in the first half of the year[35](index=35&type=chunk) [10. Cash Flows](index=17&type=section&id=10.%20Cash%20Flows) For the six months ended June 30, 2025, net cash inflow from operating activities increased to $29.7 million, while net cash outflow from investing activities rose to $71.5 million, and net cash outflow from financing activities was $9.7 million Cash Flows Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 29.7 | 11.7 | Increase 18.0 | | Net Cash Used in Investing Activities | (71.5) | (38.3) | Increase outflow 33.2 | | Net Cash Used in Financing Activities | (9.7) | (5.7) | Increase outflow 4.0 | - The increase in net cash flow from operating activities is primarily due to higher delivery volumes during the reporting period[36](index=36&type=chunk) - The increase in net cash used in investing activities primarily includes purchases of financial assets, purchases of fixed assets to increase capacity, and development projects[36](index=36&type=chunk) [11. Non-IFRS Measures](index=18&type=section&id=11.%20Non-IFRS%20Measures) The Group uses Adjusted Profit and Adjusted EBITDA as non-IFRS measures to supplement IFRS financial statements, providing additional information for investors and management Non-IFRS Measures Adjustments | Metric | H1 2025 (USD Thousands) | H1 2024 (USD Thousands) | | :--- | :--- | :--- | | Profit for the Period | 64,966 | 35,607 | | Add back: Listing Expenses | — | 2,068 | | **Adjusted Profit for the Period** | **64,966** | **37,675** | | Add back: Finance Costs | 1,970 | 2,688 | | Add back: Income Tax Expense | 17,142 | 8,461 | | Add back: Depreciation and Amortization | 24,315 | 18,896 | | Less: Interest Income | (6,882) | (3,816) | | **Adjusted EBITDA for the Period** | **101,511** | **63,904** | [12. Key Financial Ratios](index=19&type=section&id=12.%20Key%20Financial%20Ratios) As of June 30, 2025, the Group's gross margin, net profit margin, return on equity, and return on total assets all improved, indicating enhanced profitability, while liquidity ratios slightly decreased Key Financial Ratios Comparison | Metric | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Margin | 36.2% | 34.4% | Increase 1.8 percentage points | | Net Profit Margin | 10.9% | 7.5% | Increase 3.4 percentage points | | Return on Equity | 8.2% | 7.2% | Increase 1.0 percentage point | | Return on Total Assets | 4.6% | 3.4% | Increase 1.2 percentage points | | Adjusted Profit Margin | 10.9% | 7.9% | Increase 3.0 percentage points | | Adjusted EBITDA Margin | 17.1% | 13.4% | Increase 3.7 percentage points | Liquidity and Leverage Ratios Comparison | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 1.5 | 1.6 | Decrease 0.1 | | Quick Ratio | 1.0 | 1.2 | Decrease 0.2 | | Leverage Ratio | 0.1 | 0.1 | Remain unchanged | [13. Treasury Policy](index=20&type=section&id=13.%20Treasury%20Policy) The Group manages liquidity risk by utilizing bank overdrafts, borrowings, and long-term leases, aiming to balance funding continuity and flexibility - The Group manages liquidity risk based on expected maturity dates, aiming to maintain a balance between funding continuity and flexibility through the use of bank overdrafts, borrowings, and long-term leases[43](index=43&type=chunk) [14. Pledged Assets](index=20&type=section&id=14.%20Pledged%20Assets) Details regarding pledged assets are available in Note 13 to the condensed consolidated interim financial information - Details of pledged assets are set out in Note 13 to the condensed consolidated interim financial information contained in this interim report[44](index=44&type=chunk) [15. Material Investments](index=20&type=section&id=15.%20Material%20Investments) For the six months ended June 30, 2025, the Group made no material investments - For the six months ended June 30, 2025, the Group made no material investments[45](index=45&type=chunk) [16. Segment Information](index=20&type=section&id=16.%20Segment%20Information) The Group's primary operating decision-maker views the business as a single operating segment, thus no separate segment analysis is presented in the condensed consolidated interim financial information - The primary operating decision-maker views the Group's business as a single operating segment, therefore no separate segment analysis is presented in the condensed consolidated interim financial information[46](index=46&type=chunk) [17. Price Risk](index=20&type=section&id=17.%20Price%20Risk) The Group faces price risk from material cost fluctuations, managed through supplier pricing agreements, competitive bidding, and identifying cost reduction opportunities - Price risk relates to changes in the prices of materials purchased for production, and the company primarily manages this risk by negotiating pricing agreements with key suppliers, competitive bidding, and identifying cost reduction opportunities[47](index=47&type=chunk) [18. Credit Risk](index=21&type=section&id=18.%20Credit%20Risk) The Group's credit risk primarily stems from trade receivables, managed by transacting with highly-rated financial institutions and making appropriate impairment provisions for overdue receivables, resulting in near-zero credit losses - Credit risk primarily arises from financial losses due to counterparties failing to meet their obligations, mainly from operating activities (trade receivables)[49](index=49&type=chunk) - The company's policy is to transact only with highly-rated financial institutions and to make appropriate impairment provisions for overdue receivables, with actual credit losses being almost zero[49](index=49&type=chunk) [19. Interest Rate Risk](index=21&type=section&id=19.%20Interest%20Rate%20Risk) The Group's exposure to market interest rate changes is primarily associated with floating-rate long-term debt, with frequent monitoring indicating no significant losses are anticipated - Interest rate risk is primarily associated with floating-rate long-term debt obligations, and the company frequently monitors interest rates, expecting no significant losses from interest rate risk[50](index=50&type=chunk) [20. Foreign Exchange Rate Risk](index=21&type=section&id=20.%20Foreign%20Exchange%20Rate%20Risk) The Group primarily conducts business in US dollars and therefore does not engage in hedging transactions against foreign currency exchange rate uncertainties - The Group primarily conducts business in US dollars and therefore does not engage in hedging transactions to mitigate future exchange rate uncertainties between specific foreign currencies and the US dollar[51](index=51&type=chunk) [21. Material Acquisitions and Disposals](index=21&type=section&id=21.%20Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associates - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associates[52](index=52&type=chunk) [22. Future Plans for Material Investments and Capital Assets](index=21&type=section&id=22.%20Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group held no material investments and had no future plans for material investments or capital assets, other than those disclosed in this interim report - Other than as disclosed in this interim report, as of June 30, 2025, the Group held no material investments and had no future plans for material investments or capital assets[53](index=53&type=chunk) [23. Bank Loans and Other Borrowings](index=22&type=section&id=23.%20Bank%20Loans%20and%20Other%20Borrowings) As of June 30, 2025, the Group held $45 million in floating-rate borrowings, $3.4 million in fixed-rate borrowings, and $14.9 million in lease liabilities, all secured by assets and in compliance with covenants - As of June 30, 2025, the Group had **$45 million** in floating-rate borrowings, **$3.4 million** in fixed-rate borrowings, and **$14.9 million** in lease liabilities[55](index=55&type=chunk) - Borrowings are secured by a security interest in substantially all of the Group's tangible and intangible assets and are in compliance with all covenants[138](index=138&type=chunk) Borrowings Maturity Profile | Term | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | Within 1 year | 15,532 | 15,532 | | Over 1 year and less than 2 years | 30,548 | 8,048 | | Over 2 years and less than 5 years | 1,150 | 31,751 | | Over 5 years | 1,218 | 617 | | **Total** | **48,448** | **55,948** | [24. Contingent Liabilities](index=22&type=section&id=24.%20Contingent%20Liabilities) As of June 30, 2025, significant contingent liabilities related to ongoing product liability claims are included in accrued product liability, with management believing final outcomes will not materially adversely affect financial position - As of June 30, 2025, significant contingent liabilities related to ongoing product liability claims are included in accrued product liability[56](index=56&type=chunk) - Management believes that the ultimate resolution of these matters will not have a material adverse effect on the Group's consolidated financial position, operating results, or liquidity, and adequate provisions have been made to cover potential losses[148](index=148&type=chunk) [25. Employees and Remuneration](index=22&type=section&id=25.%20Employees%20and%20Remuneration) As of June 30, 2025, the Group had 2,748 employees, with 55.6% in product line manufacturing, and recognized $7.1 million in special cash awards for key employees Employee Count by Function (As of June 30, 2025) | Function | Employee Count | Percentage of Total Employees | | :--- | :--- | :--- | | Product Line Manufacturing | 1,527 | 55.6% | | Product Development | 454 | 16.5% | | Cirrus Services | 399 | 14.5% | | General and Administrative | 171 | 6.2% | | Sales and Marketing | 162 | 5.9% | | Facilities Management | 35 | 1.3% | | **Total** | **2,748** | **100.0%** | - As of June 30, 2025, the company had a total of **2,748 employees**, comprising **2,672 full-time** and **76 part-time employees**, predominantly located in the United States[57](index=57&type=chunk) - The company recognized and paid **$7.1 million** in special cash award expenses to acknowledge key employees for their contributions to value creation prior to the listing date[60](index=60&type=chunk) [26. Future Plans and Outlook](index=23&type=section&id=26.%20Future%20Plans%20and%20Outlook) In 2025, the company will focus on improving production consistency to balance annual performance, while future plans include continuous product upgrades, ecosystem expansion, supply chain optimization, global market expansion, and services for non-pilots - In 2025, the company is focused on improving production line consistency and predictability to balance annual performance[61](index=61&type=chunk) - The company plans to continuously focus on product improvement, driving model upgrades and generational changes, and configuring aircraft with new technologies and designs to maintain industry leadership[61](index=61&type=chunk) - Key strategies include building an ecosystem (new maintenance programs, aircraft management solutions, customer service), improving flight training solutions, advancing and expanding the aircraft and service portfolio, optimizing the supply chain, expanding global markets, and developing private aviation services for non-pilots[61](index=61&type=chunk)[66](index=66&type=chunk) [27. Events After Reporting Period](index=24&type=section&id=27.%20Events%20After%20Reporting%20Period) Post-period, the Group entered a $9.48 million term note agreement with Wells Fargo on July 1, 2025, at 7.5% interest, reduced to 2.5% via a rate buy-down, and repaid existing debt; the "Big and Beautiful Act" signed July 4, 2025, will affect tax deduction timing but not total tax expense - On July 1, 2025, the Group entered into a **$9,480,000** term note agreement with Wells Fargo at an annual interest rate of **7.5%**, reduced to **2.5%** through an interest rate buy-down agreement, with the loan maturing on June 30, 2028, and proceeds used to repay existing borrowings[63](index=63&type=chunk)[150](index=150&type=chunk) - On July 10, 2025, the Group repaid **$9,480,000** of outstanding debt, along with interest, previously held under Wells Fargo financing, to optimize capital structure and reduce financing costs[63](index=63&type=chunk)[150](index=150&type=chunk) - The "Big and Beautiful Act" was signed into law on July 4, 2025, which will affect the timing of certain tax deductions (including depreciation expense and R&D expenditures), but the total tax expense is not expected to be materially impacted, though it will affect the allocation of current and deferred expenses[64](index=64&type=chunk)[150](index=150&type=chunk) [28. Interim Dividend](index=24&type=section&id=28.%20Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[65](index=65&type=chunk) [Corporate Governance and Other Information](index=25&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance Practices](index=25&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high corporate governance standards, having adopted and complied with the Corporate Governance Code in Appendix C1 of the Listing Rules - The company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the relevant period to maintain a high level of corporate governance[69](index=69&type=chunk) [Standard Code for Securities Transactions by Directors](index=25&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code and Securities Policy from Appendix C3 of the Listing Rules as a code of conduct for directors and senior management's securities transactions, with all directors confirming strict compliance - The company has adopted the Standard Code set out in Appendix C3 of the Listing Rules and a securities policy, applicable to all directors and senior management, with all directors confirming strict compliance[70](index=70&type=chunk) [Audit, Risk, and Compliance Committee](index=25&type=section&id=Audit%2C%20Risk%2C%20and%20Compliance%20Committee) The Audit, Risk, and Compliance Committee, comprising three directors, reviews and monitors the Group's financial reporting, risk management, and internal control systems, and has reviewed this interim report and unaudited condensed consolidated financial statements - The Audit, Risk, and Compliance Committee, comprising Mr. LIU Liang, Mr. LIU Zhongwen (Chairman), and Ms. Ferheen MAHOMED, is primarily responsible for reviewing and monitoring the Group's financial reporting procedures, risk management, and internal control systems[71](index=71&type=chunk) - The Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and this interim report, deeming them prepared in accordance with applicable accounting standards and relevant requirements, with sufficient disclosures[72](index=72&type=chunk) [Other Board Committees](index=26&type=section&id=Other%20Board%20Committees) In addition to the Audit, Risk, and Compliance Committee, the company has established a Nomination Committee and a Remuneration Committee, with their written terms of reference defined according to the Listing Rules - The company has established a Nomination Committee and a Remuneration Committee, with their written terms of reference defined in accordance with the Listing Rules[73](index=73&type=chunk) [Interests and Short Positions of Directors and Chief Executive in Shares, Underlying Shares, and Debentures of the Company or its Associated Corporations](index=26&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%20and%20Chief%20Executive%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) As of June 30, 2025, no directors or chief executives held disclosable interests and/or short positions in the shares, underlying shares, or debentures of the company or its associated corporations - As of June 30, 2025, no directors or chief executives of the company held any interests and/or short positions in the shares, underlying shares, or debentures of the company that were required to be notified to the company and the Stock Exchange[74](index=74&type=chunk) [Rights of Directors to Acquire Shares or Debentures](index=26&type=section&id=Rights%20of%20Directors%20to%20Acquire%20Shares%20or%20Debentures) During the reporting period, neither the company nor any of its subsidiaries was party to any arrangement enabling directors or their spouses or children under 18 to acquire benefits through shares or debentures - During the reporting period, neither the company nor any of its subsidiaries was a party to any arrangement that would enable directors or their spouses or children under the age of 18 to acquire benefits through the acquisition of shares or debentures of the company or any other corporation[75](index=75&type=chunk) [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares of the Company](index=27&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, AVIC General Aircraft Hong Kong, AVIC General Aircraft, and AVIC held 84.97% equity interest in the company, with AVIC General Aircraft Hong Kong selling approximately 4.78% of shares during the period Substantial Shareholder Holdings (As of June 30, 2025) | Shareholder Name | Nature of Interest | Number of Shares or Securities Held | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | AVIC General Aircraft Hong Kong | Beneficial Owner | 310,963,318 | 84.97% | | AVIC General Aircraft | Interest in Controlled Corporation | 310,963,318 | 84.97% | | AVIC | Interest in Controlled Corporation | 310,963,318 | 84.97% | - During the relevant period, controlling shareholder AVIC General Aircraft Hong Kong sold **17,500,000 shares** through block trades, representing approximately **4.78%** of the company's total issued share capital[78](index=78&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of its 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[80](index=80&type=chunk) - As of June 30, 2025, the company held no treasury shares[81](index=81&type=chunk) [Changes in Directors and Chief Executive](index=28&type=section&id=Changes%20in%20Directors%20and%20Chief%20Executive) Effective August 26, 2025, Mr. LIU Liang ceased to be a Remuneration Committee member, Mr. LIU Zhongwen ceased to be a Nomination Committee member, and Ms. Ferheen MAHOMED was appointed to the Nomination Committee and ceased to be a Remuneration Committee member - Effective August 26, 2025, Mr. LIU Liang, a non-executive director, ceased to be a member of the Remuneration Committee[87](index=87&type=chunk) - Effective August 26, 2025, Mr. LIU Zhongwen, an independent non-executive director, ceased to be a member of the Nomination Committee[87](index=87&type=chunk) - Effective August 26, 2025, Ms. Ferheen MAHOMED, an independent non-executive director, was appointed as a member of the Nomination Committee and ceased to be a member of the Remuneration Committee[87](index=87&type=chunk) [Material Litigation](index=28&type=section&id=Material%20Litigation) During the reporting period, the company was not involved in any material litigation or arbitration, and directors were unaware of any pending or threatened material litigation or claims against the Group - During the reporting period, the company was not involved in any material litigation or arbitration[83](index=83&type=chunk) - The directors were also unaware of any pending or threatened material litigation or claims against the Group during the reporting period[84](index=84&type=chunk) [Public Float](index=28&type=section&id=Public%20Float) During the reporting period, the company's public float remained in compliance with the exemption granted by the Stock Exchange - During the reporting period, the company's public float remained in compliance with the exemption granted by the Stock Exchange from strict compliance with the public float requirement under Rule 8.08(1)(d) of the Listing Rules[85](index=85&type=chunk) [Continuing Disclosure Obligations under the Listing Rules](index=28&type=section&id=Continuing%20Disclosure%20Obligations%20under%20the%20Listing%20Rules) Other than as disclosed in this interim report, the company has no other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules - Other than as disclosed in this interim report, the company has no other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules[86](index=86&type=chunk) [Use of Net Proceeds from Listing](index=29&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The company listed on July 12, 2024, with net proceeds of approximately HKD 1,396.03 million from the global offering; as of June 30, 2025, HKD 442.72 million was utilized for innovation, product enhancement, production efficiency, and service ecosystem expansion, with the remaining HKD 953.31 million to be used as planned - The company was listed on the Stock Exchange through a global offering of ordinary shares on July 12, 2024, with net proceeds of approximately **HKD 1,396.03 million**[89](index=89&type=chunk) Use of Net Proceeds from Listing (As of June 30, 2025) | Intended Use | Percentage of Total Net Proceeds | Amount of Net Proceeds Utilized (HKD Millions) | Unutilized Amount (HKD Millions) | Expected Time of Use | | :--- | :--- | :--- | :--- | :--- | | Innovation, Product Enhancement, and R&D | 30.0% | 246.48 | 172.33 | Before December 31, 2027 | | Improve Production Efficiency and Capacity | 30.0% | 32.18 | 386.63 | Before December 31, 2027 | | Enhance and Expand Service, Sales, and Support Ecosystem | 30.0% | 30.61 | 388.20 | Before December 31, 2027 | | General Working Capital and Other Corporate Purposes | 10.0% | 133.45 | 6.15 | Before December 31, 2025 | | **Total** | **100.0%** | **442.72** | **953.31** | | [Review Report on Condensed Consolidated Interim Financial Information](index=31&type=section&id=Review%20Report%20on%20Condensed%20Consolidated%20Interim%20Financial%20Information) PricewaterhouseCoopers reviewed the Group's condensed consolidated interim financial information for the six months ended June 30, 2025, finding no matters suggesting non-compliance with IAS 34 in all material respects - PricewaterhouseCoopers has reviewed the Group's condensed consolidated interim financial information for the six months ended June 30, 2025, in accordance with International Standard on Review Engagements 2410[95](index=95&type=chunk) - The review concluded that nothing has come to their attention that causes them to believe the Group's interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting"[96](index=96&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=33&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement presents the condensed consolidated profit or loss for the six months ended June 30, 2025, showing revenue of $594.5 million, profit for the period of $65 million, and basic and diluted earnings per share of $0.18 Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Revenue | 594,488 | 475,386 | | Cost of Sales | (379,485) | (311,945) | | Gross Profit | 215,003 | 163,441 | | Operating Profit | 84,078 | 46,756 | | Profit Before Income Tax | 82,108 | 44,068 | | Profit for the Period | 64,966 | 35,607 | | Basic and Diluted Earnings Per Share | 0.18 | 0.11 | [Condensed Consolidated Statement of Comprehensive Income](index=34&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents the condensed consolidated comprehensive income for the six months ended June 30, 2025, with profit for the period of $64.966 million and other comprehensive income of $4 thousand, resulting in total comprehensive income of $64.97 million Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Profit for the Period | 64,966 | 35,607 | | Other Comprehensive Income/(Loss) | 4 | (1) | | **Total Comprehensive Income for the Period** | **64,970** | **35,606** | [Condensed Consolidated Statement of Financial Position](index=35&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the condensed consolidated financial position as of June 30, 2025, with total assets of $1,437.1 million, total liabilities of $626.8 million, and total equity of $810.3 million Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-Current Assets | 662,610 | 639,631 | | Total Current Assets | 774,462 | 723,590 | | **Total Assets** | **1,437,072** | **1,363,221** | | **Equity and Liabilities** | | | | Total Equity | 810,321 | 781,951 | | Total Non-Current Liabilities | 123,900 | 133,236 | | Total Current Liabilities | 502,851 | 448,034 | | **Total Liabilities** | **626,751** | **581,270** | | **Total Equity and Liabilities** | **1,437,072** | **1,363,221** | [Condensed Consolidated Statement of Changes in Equity](index=37&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement presents the condensed consolidated changes in equity for the six months ended June 30, 2025, with opening equity of $781.951 million, profit for the period of $64.966 million, and declared dividends of $36.6 million, resulting in closing equity of $810.321 million Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Metric | June 30, 2025 (USD Thousands) | June 30, 2024 (USD Thousands) | | :--- | :--- | :--- | | Opening Balance | 781,951 | 473,376 | | Profit for the Period | 64,966 | 35,607 | | Other Comprehensive Income/(Loss) | 4 | (1) | | Dividends Declared | (36,600) | — | | **Closing Balance** | **810,321** | **508,982** | [Condensed Consolidated Statement of Cash Flows](index=38&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the condensed consolidated cash flows for the six months ended June 30, 2025, showing net cash inflow from operating activities of $29.715 million, net cash outflow from investing activities of $71.467 million, and net cash outflow from financing activities of $9.674 million, leading to a net decrease in cash and cash equivalents of $51.426 million Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 29,715 | 11,726 | | Net Cash Used in Investing Activities | (71,467) | (38,336) | | Net Cash Used in Financing Activities | (9,674) | (5,680) | | Net Decrease in Cash and Cash Equivalents | (51,426) | (32,290) | | Cash and Cash Equivalents at End of Period | 340,411 | 214,579 | [Notes to the Condensed Consolidated Interim Financial Information](index=40&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [1. General Information](index=40&type=section&id=1.%20General%20Information) Cirrus Aircraft Co., Ltd. was incorporated in the Cayman Islands on December 13, 2019, listed on the Stock Exchange on July 12, 2024, and primarily engages in manufacturing and selling piston aircraft and single-engine turboprops, with AVIC as its ultimate controlling company - The company was incorporated in the Cayman Islands on **December 13, 2019**, and listed on The Stock Exchange of Hong Kong Limited on **July 12, 2024**[109](index=109&type=chunk)[111](index=111&type=chunk) - The Group primarily engages in the manufacturing and sale of piston aircraft (SR2X series) and single-engine turboprops (Vision Jet), and provides related services such as aviation parts sales, extended warranty contracts, maintenance, and training through Cirrus Services[109](index=109&type=chunk) - The company's ultimate controlling company is Aviation Industry Corporation of China, Ltd. (AVIC)[109](index=109&type=chunk) [2. Basis of Preparation](index=40&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and Listing Rules, applying consistent accounting policies with the 2024 annual financial statements, and presented in US dollars - The condensed consolidated interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[112](index=112&type=chunk) - The accounting policies applied are consistent with those described in the Group's consolidated financial statements and are presented in US dollars[114](index=114&type=chunk)[115](index=115&type=chunk) - The Group plans to adopt newly issued but not yet effective standards and amendments to standards (such as IFRS 18 "Presentation and Disclosure in Financial Statements") when they become effective, with no significant impact expected on financial performance and position[117](index=117&type=chunk) [3. Estimates](index=42&type=section&id=3.%20Estimates) The significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty in preparing the condensed consolidated interim financial information are consistent with those applied in the 2024 annual financial statements - The significant judgments made by management in applying the accounting policies and the key sources of estimation uncertainty in preparing the condensed consolidated interim financial information are the same as those applied in the consolidated financial statements for the year ended December 31, 2024[118](index=118&type=chunk) [4. Seasonality of Operations](index=42&type=section&id=4.%20Seasonality%20of%20Operations) The Group's business faces seasonal weather conditions, typically leading to lower revenue in the first half; however, for the six months ended June 30, 2025, the company aimed to smooth this seasonal impact by improving production line consistency - The Group faces seasonal weather conditions, typically holding more finished goods or aircraft inventory during summer months, which usually leads to lower revenue in the first half of the financial year[119](index=119&type=chunk) - For the six months ended June 30, 2025, the company has been working to smooth the usual seasonality between the first and second halves of the year by driving production line consistency and predictability[119](index=119&type=chunk) [5. Revenue and Segment Information](index=42&type=section&id=5.%20Revenue%20and%20Segment%20Information) The Group's primary operating decision-maker views the business as a single operating segment, thus no separate segment analysis is presented; for the six months ended June 30, 2025, aircraft sales revenue was $498.3 million, and Cirrus Services and other revenue was $96.209 million - The company's CEO and key management are considered the primary operating decision-makers and view the Group's business as a single operating segment, therefore no separate segment analysis is presented in the condensed consolidated interim financial information[120](index=120&type=chunk) - Over **90%** of the Group's revenue and operating profit are derived from transactions registered and completed in the United States, thus no geographical information is presented[120](index=120&type=chunk) Revenue Source Details (For the six months ended June 30) | Revenue Source | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Aircraft | 498,279 | 397,923 | | Cirrus Services and Other | 96,209 | 77,463 | | **Total** | **594,488** | **475,386** | [6. Expenses by Nature](index=44&type=section&id=6.%20Expenses%20by%20Nature) For the six months ended June 30, 2025, the Group's total expenses were $513.085 million, including $155.703 million in employee benefits and $192.9 million in raw materials, with insurance and product liability expenses turning positive from a negative value in 2024 Expenses by Nature (For the six months ended June 30) | Expense Category | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Employee Benefit Expenses | 155,703 | 136,735 | | Raw Materials | 192,900 | 154,299 | | Insurance and Product Liability | 6,296 | (1,374) | | Depreciation of Property, Plant and Equipment | 11,730 | 9,655 | | Amortization of Intangible Assets | 10,458 | 7,074 | | Service Expenses | 48,680 | 48,360 | | Research | 8,129 | 7,778 | | **Total Cost of Sales, Selling and Marketing, General and Administrative Expenses** | **513,085** | **429,230** | - The insurance and product liability balance for the period ended June 30, 2024, included a one-time derecognition of a recoverable balance of approximately **$7 million**, which was actually determined to be recoverable during the period[123](index=123&type=chunk) [7. Income Tax](index=45&type=section&id=7.%20Income%20Tax) The Group's US and UK subsidiaries are subject to corporate income tax, while the Cayman Islands company is exempt; for the six months ended June 30, 2025, income tax expense was $17.142 million, comprising $23.573 million in current income tax and a negative $6.431 million in deferred income tax - The company is incorporated in the Cayman Islands and is not subject to corporate income tax[125](index=125&type=chunk) - The Group's US subsidiaries are subject to US federal income tax (provided at an estimated **21%** of taxable profit) and state income tax[126](index=126&type=chunk) - The Group's UK subsidiaries are subject to UK corporate income tax (provided at an estimated **19%** of taxable profit)[127](index=127&type=chunk) Income Tax Expense Details (For the six months ended June 30) | Metric | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Current Income Tax | 23,573 | 9,880 | | Deferred Income Tax | (6,431) | (1,419) | | **Total** | **17,142** | **8,461** | [8. Earnings Per Share](index=46&type=section&id=8.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, profit attributable to owners of the company was $64.966 million, with basic earnings per share of $0.18; diluted earnings per share equal basic earnings per share due to no dilutive instruments Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (USD Thousands) | 64,966 | 35,607 | | Weighted Average Number of Ordinary Shares | 365,988,818 | 310,963,318 | | **Basic Earnings Per Share (USD)** | **0.18** | **0.11** | - As the company had no dilutive instruments for the periods ended June 30, 2024 and 2025, the Group's diluted earnings per share are equal to its basic earnings per share[131](index=131&type=chunk) [9. Dividends](index=46&type=section&id=9.%20Dividends) A resolution passed at the AGM on June 20, 2025, approved a dividend of $0.1 per share for the year ended December 31, 2024, totaling approximately $36.6 million, paid on July 14, 2025; no interim dividends were declared for the six months ended June 30, 2025 - A resolution was passed by the company's shareholders on June 20, 2025, to distribute a dividend of **$0.1 per share** for the year ended December 31, 2024, totaling approximately **$36,600,000**, which was paid on July 14, 2025[132](index=132&type=chunk) - No dividends were declared for the six months ended June 30, 2025 (June 30, 2024: nil)[133](index=133&type=chunk) [10. Property, Plant and Equipment](index=47&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the net book value of property, plant, and equipment was $238.052 million, with additions of $14.231 million and depreciation expense of $11.73 million during the period Net Book Value of Property, Plant and Equipment (As of June 30) | Metric | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Opening Net Book Value | 233,049 | 197,933 | | Additions | 14,231 | 19,980 | | Depreciation Expense | (11,730) | (9,655) | | **Closing Net Book Value** | **238,052** | **207,457** | [11. Goodwill and Intangible Assets](index=48&type=section&id=11.%20Goodwill%20and%20Intangible%20Assets) As of June 30, 2025, the net book value of intangible assets was $276.506 million, and goodwill was $115.923 million, with additions of $21.263 million and amortization expense of $10.458 million for intangible assets during the period Net Book Value of Goodwill and Intangible Assets (As of June 30) | Metric | Intangible Assets (USD Thousands) | Goodwill (USD Thousands) | Total (USD Thousands) | | :--- | :--- | :--- | :--- | | Opening Net Book Value | 265,701 | 115,923 | 381,624 | | Additions | 21,263 | — | 21,263 | | Amortization Expense | (10,458) | — | (10,458) | | **Closing Net Book Value** | **276,506** | **115,923** | **392,429** | [12. Share Capital and Share Premium](index=49&type=section&id=12.%20Share%20Capital%20and%20Share%20Premium) As of June 30, 2025, the company's issued share capital comprised 365,988,818 shares with a par value of $182.995 million and share premium of $123.72 million, totaling $306.715 million, after a $36.6 million reduction in share premium due to declared dividends Share Capital and Share Premium (As of June 30) | Metric | Number of Shares | Par Value (USD Thousands) | Share Premium (USD Thousands) | Total (USD Thousands) | | :--- | :--- | :--- | :--- | | As of December 31, 2024 | 365,988,818 | 182,995 | 160,320 | 343,315 | | Dividends Declared | — | — | (36,600) | (36,600) | | **As of June 30, 2025** | **365,988,818** | **182,995** | **123,720** | **306,715** | [13. Borrowings](index=49&type=section&id=13.%20Borrowings) As of June 30, 2025, the Group's total borrowings were $48.448 million, including long-term bank and other borrowings, all secured by substantially all tangible and intangible assets and in compliance with covenants Borrowings Composition (As of June 30) | Category | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | Long-term Bank Borrowings | 45,000 | 52,500 | | Long-term Other Borrowings | 3,448 | 3,448 | | Less: Current Portion | (15,532) | (15,532) | | **Non-Current Borrowings** | **32,916** | **40,416** | | **Current Borrowings** | **15,532** | **15,532** | | **Total Borrowings** | **48,448** | **55,948** | - The Group's borrowings from commercial banks bear interest at the average 30-day Secured Overnight Financing Rate plus **1.85%** and are secured by a security interest in substantially all of the Group's tangible and intangible assets[138](index=138&type=chunk) - The Group's borrowings from local government entities bear interest at **3%** per annum and are secured by related property; as of June 30, 2025, the Group was in compliance with all borrowing covenants[138](index=138&type=chunk) [14. Financial Instruments](index=51&type=section&id=14.%20Financial%20Instruments) As of June 30, 2025, net trade receivables were $8.479 million, with current to 60-day aging accounting for $9.132 million; total trade payables were $76.885 million, with current to 30-day aging accounting for $69.443 million Trade Receivables Aging Analysis (As of June 30) | Aging | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | Current to 60 days | 9,132 | 11,904 | | 61 to 90 days | 927 | 1,185 | | 91 to 120 days | 419 | — | | Over 120 days | 679 | 999 | | **Total Trade Receivables** | **11,157** | **14,088** | | Less: Impairment Provision | (2,678) | (2,673) | | **Net Trade Receivables** | **8,479** | **11,415** | Trade Payables Aging Analysis (As of June 30) | Aging | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | Current to 30 days | 69,443 | 50,462 | | 31 to 60 days | 4,800 | — | | 61 to 120 days | 2,642 | — | | Over 120 days | — | 277 | | **Total** | **76,885** | **50,739** | [15. Capital Commitments](index=52&type=section&id=15.%20Capital%20Commitments) As of June 30, 2025, the Group's capital commitments for property, plant, and equipment amounted to approximately $3 million - As of June 30, 2025, the Group's capital commitments for property, plant, and equipment amounted to approximately **$3 million**[142](index=142&type=chunk) [16. Related Party Transactions](index=52&type=section&id=16.%20Related%20Party%20Transactions) The Group has significant related party transactions with its controlling shareholder AVIC and its subsidiaries (e.g., AVIC General Aircraft, AVIC General Aircraft Hong Kong) and AVIC's associate Continental Aerospace Technologies, Inc., primarily involving engine and component procurement, aircraft product provision, and technical support services - The Group has related party transactions with its controlling shareholder AVIC, AVIC General Aircraft, AVIC General Aircraft Hong Kong, and their subsidiaries (e.g., AVIC General Aircraft South China, AVIC General Aircraft Services, AVIC General Aircraft Zhejiang), as well as AVIC's associate Continental Aerospace Technologies, Inc.[143](index=143&type=chunk)[144](index=144&type=chunk) Significant Transactions with Related Parties (For the six months ended June 30) | Transaction Type | Related Party | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | :--- | | Engine and Component Procurement | Continental | 22,607 | 21,542 | | Provision of Aircraft Products | AVIC General Aircraft Services | 592 | 1,021 | | Provision of Procurement Support and Technical Support Services | AVIC General Aircraft Zhejiang | 121 | 328 | Balances with Related Parties (As of June 30) | Category | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | Amounts Due from Related Parties | 16,185 | 13,225 | | Amounts Due to Related Parties | (3,081) | (2,439) | [17. Litigation and Contingent Liabilities](index=54&type=section&id=17.%20Litigation%20and%20Contingent%20Liabilities) As of the date of this condensed consolidated interim financial information, the Group faces several product liability claims, but management believes the ultimate resolution will not materially adversely affect its financial position, and adequate provisions have been made - The Group has several claims, mostly product liability cases, but management believes that the ultimate resolution will not have a material adverse effect on the Group's consolidated financial position, operating results, or liquidity[148](index=148&type=chunk) - The Group has made adequate provisions to cover potential losses, including comprehensive liability insurance programs[148](index=148&type=chunk) [18. Events After Reporting Period](index=55&type=section&id=18.%20Events%20After%20Reporting%20Period) Post-period, the Group entered a $9.48 million term note agreement with Wells Fargo on July 1, 2025, with a reduced interest rate of 2.5%, and repaid existing debt; the "Big and Beautiful Act" signed July 4, 2025, will affect tax deduction timing but not total tax expense, classified as non-adjusting events - On July 1, 2025, the Group entered into a **$9,480,000** term note agreement with Wells Fargo at an annual interest rate of **7.5%**, reduced to **2.5%** through an interest rate buy-down agreement, with the loan maturing on June 30, 2028, and proceeds used to repay existing borrowings[150](index=150&type=chunk) - On July 10, 2025, the Group repaid **$9,480,000** of outstanding debt, along with interest, previously held under Wells Fargo financing, to optimize capital structure and reduce financing costs[150](index=150&type=chunk) - The "Big and Beautiful Act" was signed into law on July 4, 2025, which will affect the timing of certain tax deductions, but the total tax expense is not expected to be materially impacted; these events are classified as non-adjusting events[150](index=150&type=chunk)[151](index=151&type=chunk)

[Company Profile and Business Overview](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B%E8%88%87%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A6%BD) Chuangmei Pharmaceutical (2289.HK) is a leading South China pharmaceutical distributor, noted for market position and logistics awards - The company primarily engages in pharmaceutical distribution, ranking among the leading distributors in South China[2](index=2&type=chunk)[4](index=4&type=chunk) - In 2024, the company ranked **34th nationally** in wholesale enterprise main business revenue and **6th in Guangdong Province** among pharmaceutical circulation enterprises[2](index=2&type=chunk)[4](index=4&type=chunk) - In H1 2025, the company received multiple honors including "Best Pharmaceutical Cold Chain Logistics Center," "Recommended Pharmaceutical Cold Chain Logistics Service Enterprise," "Excellent Pharmaceutical Logistics and Distribution Enterprise," and "Modern Pharmaceutical Logistics Technology Experiment Base"[3](index=3&type=chunk)[5](index=5&type=chunk) - Awarded the "Pacesetter" title for 2024[3](index=3&type=chunk)[5](index=5&type=chunk) [Company Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section details the company's board, committees, and key corporate information, noting a Nomination Committee change in June 2025 - Board members include Executive Directors Yao Chuanglong, Zheng Yuyan, Zhang Hanzi; Non-executive Directors Yan Jingbin (Chairman), Fu Zheng, Xu Fei; and Independent Non-executive Directors Li Hanguo, Yin Zhiwei, Guan Jian[9](index=9&type=chunk) - Yin Zhiwei chairs the Audit Committee, Guan Jian chairs the Nomination Committee, Li Hanguo chairs the Remuneration Committee, Yao Chuanglong chairs the Risk Management Committee, and Yan Jingbin chairs the Strategic Development Committee[9](index=9&type=chunk)[10](index=10&type=chunk) - Nomination Committee members changed on June 27, 2025, due to revisions in listing rules, with Mr Yao Chuanglong ceasing to be a member and Ms Zheng Yuyan being appointed[11](index=11&type=chunk)[13](index=13&type=chunk) [Financial Highlights](index=7&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section summarizes financial performance for H1 2025 and FY2024, showing declines in revenue and net profit, with slight asset growth and reduced shareholder equity H1 Financial Performance | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,155,071 | 2,347,185 | -8.18 | | Total Profit | 32,629 | 38,928 | -16.18 | | Net Profit Attributable to Parent Company Shareholders | 21,739 | 26,747 | -18.72 | | Basic and Diluted Earnings Per Share (RMB) | 0.2013 | 0.2477 | -18.73 | As of June 30, 2025, Balance Sheet Data | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 3,492,251 | 3,456,644 | 1.03 | | Total Liabilities | 2,900,422 | 2,837,953 | 2.20 | | Shareholders' Equity | 591,830 | 618,691 | -4.34 | | Net Assets Per Share (RMB) | 5.4799 | 5.7286 | -4.34 | [Management Discussion and Analysis](index=8&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section discusses H1 2025 industry trends, policy impacts, and the company's business performance and strategic initiatives, noting revenue and net profit declines but improved gross margin and significant growth in third-party logistics [Industry Overview](index=8&type=section&id=%E8%A1%8C%E6%A5%AD%E6%A6%82%E8%A7%88) China's pharmaceutical industry is undergoing structural transformation towards patient-centric care, digitalization, and consolidation, with significant growth in the outpatient market - China's pharmaceutical industry is shifting from a "disease-centric" to a "people's health-centric" model, driven by increased public health awareness[16](index=16&type=chunk) - In 2024, the market share of China's retail pharmacies (including online pharmacies) increased by **1.5 percentage points**, with online pharmacy drug sales growing by **14.4%**[17](index=17&type=chunk)[18](index=18&type=chunk) - In 2024, instant retail sales (including drugs and non-drugs) by pharmacies reached **RMB 48.7 billion**, a **31.3% year-on-year increase**[17](index=17&type=chunk)[18](index=18&type=chunk) - The Ministry of Commerce aims to cultivate **5-10 retail pharmacy chains** with annual sales exceeding **RMB 50 billion** by 2025, with the top 100 retail pharmacies accounting for over **65% of total sales** and chain penetration approaching **70%**[19](index=19&type=chunk)[22](index=22&type=chunk) - In 2023, the top 100 pharmaceutical wholesale enterprises accounted for **76%** of the national pharmaceutical market, a **0.8 percentage point increase** year-on-year[19](index=19&type=chunk)[22](index=22&type=chunk) - China's pharmaceutical distribution industry market size is projected to exceed **RMB 4 trillion** by 2028, with a **7% compound annual growth rate**[19](index=19&type=chunk)[22](index=22&type=chunk) - Starting January 1, 2025, all designated retail pharmacies selling "dual-channel" managed drugs must process prescriptions through the national unified medical insurance electronic prescription center[25](index=25&type=chunk)[27](index=27&type=chunk) - The outpatient market is expected to reach **RMB 1.6 trillion** by 2029, potentially rivaling or surpassing the inpatient market[25](index=25&type=chunk)[27](index=27&type=chunk) - In May 2025, Guangdong Province issued draft rules for drug listing on its pharmaceutical procurement platform, aiming to unify national drug listing rules and align prices across provinces, retail pharmacies, and online e-commerce platforms[29](index=29&type=chunk)[32](index=32&type=chunk) - In March 2025, four national departments, including the National Healthcare Security Administration, mandated the full-process and full-volume collection and application of drug traceability codes in medical insurance and work-related injury insurance, with all medical institutions to achieve full collection and upload by January 1, 2026[31](index=31&type=chunk)[33](index=33&type=chunk) - The "Implementation Plan for Digital and Intelligent Transformation of the Pharmaceutical Industry (2025-2030)" supports the application of AI, big data, and cloud computing across the entire pharmaceutical value chain, promoting digital, diversified, and platform-based industry development[34](index=34&type=chunk)[35](index=35&type=chunk) [Business Review](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) In the reporting period, the Group's pharmaceutical distribution business saw a decrease in customer and product numbers, but achieved significant growth in third-party logistics and enhanced AI integration - As of June 30, 2025, the distribution network covered **12,170 customers**, a year-on-year decrease of **624 customers**[41](index=41&type=chunk)[43](index=43&type=chunk) - The number of distributed product categories decreased by **432** to **11,164**, with a total of **1,046 suppliers**[41](index=41&type=chunk)[44](index=44&type=chunk) Product Quantity Changes | Product Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Proprietary Chinese Medicines | 4,067 | 4,445 | | Western Medicines | 4,184 | 4,316 | | Others | 2,913 | 2,835 | | **Total** | **11,164** | **11,596** | - Actively promoting the "Ten Million-level" brand customer policy, the company has developed multiple strategic cooperative brands with sales exceeding **RMB 10 million**[47](index=47&type=chunk)[50](index=50&type=chunk) - Focusing on the silver economy, the company collaborates with partners like Kunming Pharmaceutical Group to enhance the elderly health industry ecosystem[52](index=52&type=chunk)[53](index=53&type=chunk)[56](index=56&type=chunk) - Deepening AI empowerment, the company achieved automation in key business areas such as financial management, intelligent process engine optimization, efficient pharmaceutical data governance, intelligent commodity monitoring, and intelligent verification and compliance management of drug traceability codes[54](index=54&type=chunk)[57](index=57&type=chunk) - Initiated AI tool pilot applications in critical logistics segments like intelligent warehouse management and

Financial Performance - For the six months ended 30 June 2025, revenue increased to RMB 1,266.3 million, up 16.4% from RMB 1,088.2 million in the same period of 2024[12]. - Profit attributable to equity shareholders rose significantly to RMB 184.1 million, a substantial increase from RMB 6.0 million in the prior year[12]. - Basic and diluted earnings per share increased to 2.97 RMB cents, compared to 0.10 RMB cents for the six months ended 30 June 2024[12]. - For the six months ended June 30, 2025, the Group's profit attributable to shareholders was approximately RMB 184.1 million, a significant increase of approximately RMB 178.2 million compared to RMB 6.0 million for the same period in 2024[17]. - Total comprehensive income for the period attributable to equity shareholders was RMB 162,938, compared to a loss of RMB 23,204 in 2024[109]. - For the six months ended June 30, 2025, the company reported a profit of RMB 184,146,000, a significant recovery from a loss of RMB 359,964,000 in the previous six months[117]. Revenue Breakdown - Revenue from the overseas market increased by approximately RMB 309.5 million or 56.0% to approximately RMB 862.3 million, contributing approximately 68.1% of total revenue[30]. - Domestic revenue decreased by approximately RMB 131.3 million or 24.5% to approximately RMB 404.0 million, contributing approximately 31.9% of total revenue[26]. - Revenue recognized over time amounted to RMB 1,191,134,000, up from RMB 1,006,205,000, while point-in-time revenue decreased to RMB 75,160,000 from RMB 81,957,000[145]. - Adjusted gross profit for the reportable segments reached RMB 295,029,000, a significant increase of 46.3% compared to RMB 201,620,000 in the prior year[152]. Cost and Expenses - The cost of sales increased by approximately RMB 85.9 million or 9.8% to approximately RMB 959.2 million compared to RMB 873.3 million for the same period in 2024[31]. - Selling expenses decreased by approximately RMB 3.2 million or 16.8% to approximately RMB 15.9 million, accounting for approximately 1.3% of operating revenue[41]. - Administrative expenses increased by approximately RMB 6.1 million or 4.0% to approximately RMB 157.5 million, accounting for approximately 12.4% of operating revenue[42]. - Research and development costs for the period were RMB 11,007,000, down from RMB 12,435,000 in the previous year[157]. Cash Flow and Liquidity - Net cash used in operating activities decreased to RMB (46.4) million, an improvement from RMB (198.6) million in the same period of 2024[12]. - Cash on hand and in bank decreased by approximately RMB 93.2 million or 13.6% to approximately RMB 590.1 million as of June 30, 2025[48]. - The company reported a net decrease in cash and cash equivalents of RMB 137,352,000 for the period[121]. - The Group's management has prepared a cash flow forecast for at least the next twelve months, focusing on improving operating cash flows through accelerated billings and collection of trade receivables[129]. Assets and Liabilities - As of June 30, 2025, the contract value of backlog increased by approximately RMB 2,337.3 million or 23.3% to approximately RMB 12,360.0 million compared to RMB 10,022.7 million as of June 30, 2024[20]. - Net current liabilities increased by approximately RMB 41.8 million or 55.7% to approximately RMB 116.9 million as of June 30, 2025[47]. - The Group's debt-to-asset ratio as of June 30, 2025, was 89.7%, up from 88.7% as of December 31, 2024[58]. - Trade receivables for contract work from third parties increased to RMB 2,954.3 million as of June 30, 2025, compared to RMB 2,893.4 million on December 31, 2024, reflecting a growth of 2.1%[180]. Strategic Initiatives - The Group plans to focus on long-term development strategies, enhancing customer service and human resource management to drive market expansion and technological innovation[25]. - The Group enhanced management efficiency through internal autonomy and comprehensive budget management[14]. - The Group's internationalization strategy contributed significantly to revenue growth, with overseas market orders playing a key role[15]. Corporate Governance - The Company complied with all code provisions in the Corporate Governance Code for the six months ended June 30, 2025[99]. - The unaudited interim results for the six months ended June 30, 2025, were reviewed and approved by the Audit Committee[100]. - The Company did not declare any interim dividend for the six months ended June 30, 2025, consistent with the previous year[75]. Shareholder Information - As of June 30, 2025, the total number of issued shares was 6,208,734,000[81]. - Kang Baohua holds 228,636,000 shares, representing approximately 3.68% of the Company's shareholding[81]. - Best Outlook Limited and Neo Pioneer Limited, both wholly-owned by Kang Baohua, hold 2,597,531,923 shares (41.84%) and 1,049,231,845 shares (16.90%) respectively[89].

[Company Information](index=3&type=section&id=Company%20Information) This section details the company's governance structure, including its board and committees, along with fundamental corporate information such as auditors and registration details [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, supported by executive, audit, nomination, and remuneration committees to ensure robust corporate governance - The Board members include executive directors such as Ms. Shi Qi (Chairperson) and Mr. Li Jiuhua (CEO), non-executive directors like Mr. Chen Junkung, and independent non-executive directors such as Mr. Chen Shaoda[4](index=4&type=chunk) - The company has an Executive Committee, Audit Committee, Nomination Committee, and Remuneration Committee, each with clearly defined chairpersons and members[4](index=4&type=chunk) - Dr. Feng Xin was appointed as an independent non-executive director and a member of the Audit, Nomination, and Remuneration Committees on February 18, 2025, while Ms. Wang Lina and Mr. Zheng Changxing resigned concurrently[4](index=4&type=chunk) [Company Basic Information](index=4&type=section&id=Company%20Basic%20Information) The company appointed Rongcheng (Hong Kong) Certified Public Accountants Limited as its auditor, is registered in the Cayman Islands, with its principal place of business in Central, Hong Kong, and details its share registrar, principal bankers, website, financial year-end, and stock code - The auditor is Rongcheng (Hong Kong) Certified Public Accountants Limited[5](index=5&type=chunk) - The registered office is in the Cayman Islands, and the principal place of business in Hong Kong is on the 22nd Floor, H Code, 45 Pottinger Street, Central, Hong Kong[5](index=5&type=chunk) - The stock code is 1991, and the financial year-end is December 31[5](index=5&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the company's financial performance, highlighting revenue, gross profit, and net profit or loss for the reporting period [Performance Overview for the Period](index=5&type=section&id=Performance%20Overview%20for%20the%20Period) For the six months ended June 30, 2025, the company's revenue decreased by 43.5% year-on-year, but gross profit significantly increased by 66.4%, turning a loss into a profit of **HKD 2,411 thousand** for the period, with a notable reduction in loss per share Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 290,663 | 514,096 | | Cost of sales | (228,865) | (476,972) | | Gross profit | 61,798 | 37,124 | | Profit / (Loss) before tax | 2,434 | (30,895) | | Profit / (Loss) for the period | 2,411 | (31,657) | | Profit / (Loss) for the period attributable to owners of the company | (12,116) | (18,833) | | Basic and diluted loss per share (HK cents) | (8.45) | (14.41) | - Revenue decreased by **43.5%** year-on-year, primarily due to retail business restructuring and intensified competition in the digital marketing market[7](index=7&type=chunk) - Gross profit increased by **66.4%** year-on-year, indicating effective cost control or product portfolio optimization[7](index=7&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section details the company's total comprehensive income, including profit or loss for the period and other comprehensive income/expenses [Comprehensive Income Overview](index=6&type=section&id=Comprehensive%20Income%20Overview) For the six months ended June 30, 2025, the company's profit for the period turned positive, but other comprehensive expenses resulted in a total comprehensive expense of **HKD 7,798 thousand** for the period, a significant reduction from the prior year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Profit / (Loss) for the period | 2,411 | (31,657) | | Other comprehensive (expense) / income | (10,209) | 4,230 | | Total comprehensive expense for the period (net of income tax) | (7,798) | (27,427) | | Total comprehensive expense for the period attributable to owners of the company | (22,325) | (15,217) | | Total comprehensive expense for the period attributable to non-controlling interests | 14,527 | (12,210) | - Exchange differences arising from the translation of overseas operations shifted from an income of **HKD 4,030 thousand** in 2024 to an expense of **HKD 9,907 thousand** in 2025[8](index=8&type=chunk) - Fair value gains on financial assets measured at fair value through other comprehensive income changed from **HKD 200 thousand** in 2024 to an expense of **HKD 302 thousand** in 2025[8](index=8&type=chunk) [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section provides a snapshot of the company's financial position, detailing its assets, liabilities, and equity at the reporting date [Assets and Liabilities Overview](index=7&type=section&id=Assets%20and%20Liabilities%20Overview) As of June 30, 2025, the company's non-current assets slightly decreased, both current assets and current liabilities increased, net current liabilities slightly improved, and total equity grew Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | 2025 (Thousand HKD) | 2024 December 31 (Thousand HKD) | | :--- | :--- | :--- | | Non-current assets | 227,243 | 230,591 | | Current assets | 485,883 | 385,430 | | Current liabilities | 619,448 | 520,443 | | Net current liabilities | (133,565) | (135,013) | | Total equity | 34,601 | 30,399 | | Non-current liabilities | 59,077 | 65,179 | - Trade and other receivables increased from **HKD 286,122 thousand** as of December 31, 2024, to **HKD 381,589 thousand** as of June 30, 2025[10](index=10&type=chunk) - Bank balances and cash decreased from **HKD 11,924 thousand** as of December 31, 2024, to **HKD 7,304 thousand** as of June 30, 2025[10](index=10&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section outlines the changes in the company's equity components, including share capital, reserves, and retained earnings, over the reporting period [Equity Movement Analysis](index=9&type=section&id=Equity%20Movement%20Analysis) For the six months ended June 30, 2025, equity attributable to owners of the company decreased due to loss for the period and other comprehensive expenses, but non-controlling interests significantly increased due to profit for the period, while share capital increased by **HKD 12,000 thousand** due to new share issuance Condensed Consolidated Statement of Changes in Equity Key Data (As of June 30) | Indicator | 2025 January 1 (Thousand HKD) | 2025 June 30 (Thousand HKD) | | :--- | :--- | :--- | | Equity attributable to owners of the company | 31,348 | 21,023 | | Non-controlling interests | (949) | 13,578 | | Total equity | 30,399 | 34,601 | | Share capital | 131,347 | 143,347 | | Accumulated losses | (1,065,203) | (1,077,319) | | Exchange reserve | 164,065 | 154,158 | - Profit for the period was **HKD 2,411 thousand**, with a loss attributable to owners of the company of **HKD 12,116 thousand** and profit attributable to non-controlling interests of **HKD 14,527 thousand**[13](index=13&type=chunk) - Share issuance resulted in an increase in share capital of **HKD 12,000 thousand**[13](index=13&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the company's cash inflows and outflows from operating, investing, and financing activities for the reporting period [Cash Flow Overview](index=11&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash used in operating activities significantly decreased, net cash from financing activities increased, but investing activities shifted from a net inflow to a net outflow, resulting in an overall decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Net cash used in operating activities | (9,304) | (35,797) | | Net cash (used in) / from investing activities | (2,739) | 18,656 | | Net cash from financing activities | 10,221 | 7,839 | | Net decrease in cash and cash equivalents | (1,822) | (9,302) | | Cash and cash equivalents at June 30 | 7,304 | 18,939 | - Net cash used in operating activities significantly decreased from **HKD 35,797 thousand** in 2024 to **HKD 9,304 thousand** in 2025, indicating improved operating efficiency[19](index=19&type=chunk) - Investing activities shifted from a net inflow of **HKD 18,656 thousand** in 2024 to a net outflow of **HKD 2,739 thousand** in 2025[19](index=19&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed explanatory notes to the condensed consolidated interim financial information, covering accounting policies, segment performance, and financial instrument details [1. General Information](index=12&type=section&id=1.%20General%20Information) Ocean Group Holdings Limited is incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, primarily engaged in the manufacturing and sale of silicone products, retail services, healthcare and hotel services, and international digital marketing services. The company's functional currency is HKD, and its ultimate holding company is Lyton Maison Limited - The Group is principally engaged in the manufacturing and sale of silicone and related products, provision of retail services, provision of healthcare and hotel services, and provision of international digital marketing services[20](index=20&type=chunk) - The functional currency of the Group is HKD, except for subsidiaries established in China and the United Kingdom, which use RMB and GBP as their functional currencies, respectively[20](index=20&type=chunk) - As of June 30, 2025, the ultimate holding company of the Company is Lyton Maison Limited[20](index=20&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies](index=12&type=section&id=2.%20Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules of the Stock Exchange, adopting the historical cost basis, and new and revised standards effective January 1, 2025, have been adopted with no significant impact on financial performance - The condensed consolidated interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix 16 to the Listing Rules of the Stock Exchange[21](index=21&type=chunk) - The condensed consolidated interim financial information has been prepared on the historical cost basis, except for certain investment properties and financial instruments which are measured at fair value[22](index=22&type=chunk) - The application of the revised Hong Kong Financial Reporting Standards during the current period has had no material impact on the Group's performance and financial position for the current and prior periods and/or the disclosures set out in these condensed consolidated financial statements[24](index=24&type=chunk) [3. Revenue](index=13&type=section&id=3.%20Revenue) Revenue primarily derives from the sale of goods and online marketing solution services, with total revenue for the six months ended June 30, 2025, being **HKD 290,663 thousand**, a decrease compared to the same period last year - Revenue represents the fair value of the consideration received or receivable for the sale of goods and the provision of healthcare and hotel services to customers in the ordinary course of business, net of discounts and sales-related taxes[25](index=25&type=chunk) Revenue Composition (For the six months ended June 30) | Revenue Category | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Sale of goods – at a point in time | 104,387 | 178,788 | | Online marketing solution services – at a point in time | 186,276 | 335,308 | | **Total Revenue** | **290,663** | **514,096** | [4. Segment Information](index=13&type=section&id=4.%20Segment%20Information) The Group's operating segments are categorized into silicone and related products, retail services, healthcare and hotel services, and online marketing solution services. In the first half of 2025, online marketing solution services contributed the largest revenue, while the silicone and related products segment performed best in terms of results - The Group's reportable and operating segments include: silicone and related products, retail services, healthcare and hotel services, and online marketing solution services[28](index=28&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (Thousand HKD) | 2025 Results (Thousand HKD) | 2024 Revenue (Thousand HKD) | 2024 Results (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Silicone and related products | 102,048 | 14,115 | 118,369 | 9,396 | | Retail services | 2,339 | (7,097) | 60,419 | 628 | | Healthcare and hotel services | – | (11,278) | – | (2,580) | | Online marketing solution services | 186,276 | 24,227 | 335,308 | (22,182) | | **Total** | **290,663** | **19,967** | **514,096** | **(14,738)** | Segment Assets and Liabilities (As of June 30) | Segment | 2025 Assets (Thousand HKD) | 2025 Liabilities (Thousand HKD) | 2024 Assets (Thousand HKD) | 2024 Liabilities (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Silicone and related products | 158,520 | 218,689 | 235,928 | 210,596 | | Retail services | 24,003 | 4,427 | 19,232 | 3,450 | | Healthcare and hotel services | 101,546 | 225,175 | 100,739 | 213,560 | | International digital marketing | 197,654 | 138,375 | 114,032 | 79,925 | | **Total Segments** | **481,723** | **586,666** | **469,931** | **507,531** | [5. Finance Costs](index=16&type=section&id=5.%20Finance%20Costs) For the six months ended June 30, 2025, total finance costs amounted to **HKD 12,439 thousand**, primarily comprising interest on borrowings, lease liabilities, and convertible bonds, remaining largely consistent with the prior year Finance Costs Composition (For the six months ended June 30) | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Interest on borrowings | 9,783 | 10,484 | | Interest on lease liabilities | 545 | 2,002 | | Interest on convertible bonds | 2,111 | – | | **Total** | **12,439** | **12,486** | [6. Income Tax Expense](index=16&type=section&id=6.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was **HKD 23 thousand**, primarily due to under-provision in prior periods, with no income tax provision in Hong Kong, Cayman Islands, British Virgin Islands, and the UK, while Chinese subsidiaries are taxed at **25%** Income Tax Expense (For the six months ended June 30) | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Current tax – provision for the period | – | 707 | | Current tax – under-provision in prior periods | 23 | 55 | | **Total** | **23** | **762** | - No Hong Kong profits tax provision has been made in the condensed consolidated interim financial information as the Group has sufficient tax losses to carry forward to offset against assessable profits[33](index=33&type=chunk) - The tax rate for the PRC subsidiaries is **25%**[34](index=34&type=chunk) [7. Profit / (Loss) for the Period](index=17&type=section&id=7.%20Profit%20%2F%20%28Loss%29%20for%20the%20Period) Profit / (Loss) for the period is derived after deducting / (crediting) items such as cost of inventories sold, depreciation, and net exchange losses, with government grants being zero in 2025 compared to an income of **HKD 6,480 thousand** in 2024 Profit / (Loss) for the Period Adjustment Items (For the six months ended June 30) | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | | :--- | :--- | :--- | | Cost of inventories sold | 74,845 | 125,513 | | Depreciation of property, plant and equipment | 2,539 | 4,383 | | Depreciation of right-of-use assets | 5,813 | 8,891 | | Net exchange losses / (gains) | 487 | (635) | | Government grants | – | (6,480) | | Interest income | (3,766) | (131) | [8. Loss Per Share](index=17&type=section&id=8.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share was **8.45 HK cents**, a significant reduction from **14.41 HK cents** in the prior year, primarily due to a decrease in loss attributable to owners of the company Loss Per Share Calculation (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the company (Thousand HKD) | (12,116) | (18,833) | | Weighted average number of ordinary shares in issue (Thousand shares) | 143,347 | 130,677 | | Basic and diluted loss per share (HK cents) | (8.45) | (14.41) | - Basic loss per share is the same as diluted loss per share because there are no outstanding potentially dilutive ordinary shares[38](index=38&type=chunk) [9. Dividends](index=17&type=section&id=9.%20Dividends) The directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025, and 2024 - The directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025, and 2024[39](index=39&type=chunk) [10. Trade and Other Receivables](index=18&type=section&id=10.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables amounted to **HKD 394,096 thousand**, an increase from December 31, 2024, with the 0 to 90-day aging category accounting for the largest portion of trade receivables Trade and Other Receivables (As of June 30) | Item | 2025 (Thousand HKD) | 2024 December 31 (Thousand HKD) | | :--- | :--- | :--- | | Trade and bills receivables (net of provision) | 77,750 | 53,619 | | Prepayments, deposits and other receivables | 316,346 | 248,771 | | **Total** | **394,096** | **302,390** | - The Group generally grants credit terms ranging from **30 to 120 days** to its customers[40](index=40&type=chunk) Aging Analysis of Trade Receivables (As of June 30) | Aging | 2025 (Thousand HKD) | 2024 December 31 (Thousand HKD) | | :--- | :--- | :--- | | 0 to 90 days | 72,674 | 41,605 | | 91 days to 1 year | 5,126 | 12,014 | [11. Trade and Other Payables](index=19&type=section&id=11.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to **HKD 419,552 thousand**, an increase from December 31, 2024, with significant growth in contract liabilities and accrued expenses Trade and Other Payables (As of June 30) | Item | 2025 (Thousand HKD) | 2024 December 31 (Thousand HKD) | | :--- | :--- | :--- | | Trade and bills payables | 59,445 | 54,682 | | Accrued expenses | 61,534 | 31,037 | | Contract liabilities | 147,910 | 82,565 | | **Total** | **419,552** | **327,014** | Aging Analysis of Trade Payables (As of June 30) | Aging | 2025 (Thousand HKD) | 2024 December 31 (Thousand HKD) | | :--- | :--- | :--- | | Within 30 days or on demand | 10,216 | 11,508 | | 31 to 90 days | 18,840 | 13,548 | | 91 days to 1 year | 27,814 | 26,669 | | Over 1 year | 2,575 | 2,957 | [12. Borrowings](index=19&type=section&id=12.%20Borrowings) For the six months ended June 30, 2025, the Group's borrowings had an effective annual interest rate ranging from **3.3% to 14.0%**, consistent with the prior year - For the six months ended June 30, 2025, the effective annual interest rate for the Group's borrowings ranged from **3.3% to 14.0%** (for the six months ended June 30, 2024: **3.3% to 14.0%**)[44](index=44&type=chunk) [13. Share Capital](index=20&type=section&id=13.%20Share%20Capital) As of June 30, 2025, the company's authorized share capital was **HKD 2,000,000 thousand**, and issued share capital was **HKD 143,347 thousand**. During the period, a share consolidation (10 shares into 1) and the issuance of **12,000 thousand** new shares under general mandate were completed Share Capital Movement (As of June 30) | Item | 2025 June 30 (Thousand shares) | 2025 June 30 (Thousand HKD) | 2024 December 31 (Thousand shares) | 2024 December 31 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Authorized ordinary shares | 2,000,000 | 2,000,000 | 20,000,000 | 2,000,000 | | Issued and fully paid shares | 143,347 | 143,347 | 1,313,467 | 131,347 | - On May 26, 2025, the company completed a share consolidation, merging every ten ordinary shares of **HKD 0.1** par value into one consolidated share of **HKD 1.0** par value, effective May 28, 2025[46](index=46&type=chunk) - On June 9, 2025, the company completed a share subscription under general mandate, issuing and allotting **12,000,000 shares**[46](index=46&type=chunk) [14. Related Party Transactions](index=21&type=section&id=14.%20Related%20Party%20Transactions) For the six months ended June 30, 2025, and 2024, remuneration for directors and other key management personnel was zero - For the six months ended June 30, 2025, and 2024, remuneration for directors and other key management personnel was zero[47](index=47&type=chunk) [15. Capital Commitments](index=21&type=section&id=15.%20Capital%20Commitments) As of June 30, 2025, the company's contracted capital expenditure not yet provided for in the condensed consolidated interim financial information was **HKD 8,582 thousand**, primarily for the acquisition of property, plant, and equipment Capital Commitments (As of June 30) | Item | 2025 (Thousand HKD) | 2024 December 31 (Thousand HKD) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 8,582 | 6,936 | [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the company's operational and financial performance, strategic outlook, and key risks for the reporting period [Business Review](index=22&type=section&id=Business%20Review) In the first half of 2025, amidst a complex global economic and trade environment, the Group actively pursued business diversification and structural adjustments, focusing on technological upgrades, market decentralization, and cost reduction, successfully turning a loss into a significant increase in net profit - The Group is principally engaged in the silicone business, international digital marketing business, UK retail services, and healthcare and hotel services[50](index=50&type=chunk) - In the first half of 2025, the Group's strategic focus was on stabilizing the core silicone business, deepening the digital marketing business, and integrating the UK supermarket business[50](index=50&type=chunk) Business Review Key Financial Data (For the six months ended June 30) | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Sales Revenue | 290,663 | 514,096 | -43.5% | | Net Profit / (Loss) | 2,411 | (31,657) | Turned loss into profit | [Segment Business Performance](index=22&type=section&id=Segment%20Business%20Performance) Segment business performance varied: the silicone business slightly declined due to tariffs but maintained stable customers; digital marketing revenue decreased but profitability significantly improved; retail business sharply declined due to restructuring and marketing expenses; healthcare and hotel business performed poorly with low strategic importance [Silicone Business](index=22&type=section&id=Silicone%20Business) As a core business, silicone business sales revenue slightly declined in the first half of 2025, primarily due to the US-China tariff trade war, but the Group actively acquired new customers and maintained stable supply and high-quality output, with widespread product applications - Silicone business sales revenue was approximately **HKD 102,048 thousand** (2024: **HKD 118,369 thousand**), a slight decrease[52](index=52&type=chunk) - Affected by the US-China tariff trade war, export costs for some silicone products increased, but the Group maintained stable product supply and high-quality output[52](index=52&type=chunk) - Key products include new energy vehicles, photovoltaic components, medical devices, consumer electronics and peripherals, and various daily necessities, with customers spanning Asia, Europe, and North America[53](index=53&type=chunk) [International Digital Marketing Business](index=23&type=section&id=International%20Digital%20Marketing%20Business) Digital marketing business (Jusheng Technology) sales revenue decreased in the first half of 2025, but profitability significantly improved, and the Group is confident in its growth potential and will increase strategic investment - Digital marketing business sales revenue was approximately **HKD 186,276 thousand** (2024: **HKD 335,308 thousand**), a decrease[54](index=54&type=chunk) - Jusheng Technology, as a leading Douyin (TikTok) operation service provider in mainland China, offers comprehensive online marketing services[54](index=54&type=chunk) - Despite the decrease in revenue, the segment's profitability significantly improved, contributing positively to overall performance[54](index=54&type=chunk) [Retail Business](index=23&type=section&id=Retail%20Business) Retail business sales revenue sharply declined in the first half of 2025, primarily due to a reduction in physical store count following business restructuring in late 2024 and increased upfront marketing expenses for the Douyin platform; future focus will be on enhancing brand reputation and expanding online channels - Retail business sales revenue was approximately **HKD 2,339 thousand** (2024: **HKD 60,419 thousand**), a significant decrease[55](index=55&type=chunk) - The main reasons were a reduction in the number of physical stores after business restructuring in 2024 and increased upfront marketing expenses for Douyin platform activities[55](index=55&type=chunk) - Retail strategies include enhancing brand reputation, maintaining high product quality, establishing stable supplier relationships, and expanding online channels through dedicated websites and Douyin promotions[55](index=55&type=chunk) [Healthcare and Hotel Business](index=23&type=section&id=Healthcare%20and%20Hotel%20Business) The operating conditions of the healthcare and hotel business have not significantly improved, it is considered a business segment of lower strategic importance, and the Group maintains a conservative outlook on its long-term prospects while exploring monetization opportunities - The healthcare and hotel business operations did not show significant improvement, recording minimal sales revenue during the period[56](index=56&type=chunk) - This business is considered a segment of lower strategic importance, and the Group maintains a conservative outlook on its long-term prospects[56](index=56&type=chunk) - The Group will explore potential opportunities to monetize its business assets[56](index=56&type=chunk) [Outlook](index=23&type=section&id=Outlook) The Group will closely monitor global trade policies, inflation, and exchange rate fluctuations, actively advance a Web 4.0-centric strategic transformation, focusing on AI digital humans and RWA tokenization, seeking development in education, gaming, and big health sectors - The Group will closely monitor global trade policies, high inflation, and exchange rate fluctuations, proactively adjusting strategies and mitigating operational risks[57](index=57&type=chunk) - In the second half of 2025, Ocean Group will steadily advance its Web 4.0-centric strategic transformation, leveraging Artificial Intelligence (AI) digital humans as key technological support and building a new value circulation mechanism through Real World Asset (RWA) tokenization[62](index=62&type=chunk) - The Group will focus on three key areas: education, gaming, and big health, actively promoting data standardization, digital asset representation, and global value synergy[62](index=62&type=chunk) [Silicone Business Outlook](index=24&type=section&id=Silicone%20Business%20Outlook) The silicone business will continue to be a major revenue contributor, simultaneously advancing traditional silicone product manufacturing and the development and application of new environmentally friendly silicone materials to expand market coverage - The silicone business will continue to contribute major revenue to the Group, maintaining high-quality product output and stable cooperative relationships with upstream suppliers and downstream customers[58](index=58&type=chunk) - The Group will strengthen innovation in environmentally friendly silicone materials and upgrade existing production infrastructure to develop next-generation solutions and expand market coverage[58](index=58&type=chunk) - New environmentally friendly silicone products cover categories such as new energy vehicles, photovoltaic components, aerospace materials, medical devices, consumer electronics, and beauty products[58](index=58&type=chunk) [Global Digital Marketing Business Outlook](index=24&type=section&id=Global%20Digital%20Marketing%20Business%20Outlook) Jusheng Technology will continue to expand its leading edge in digital marketing, utilizing cutting-edge technologies to enhance advertising precision and efficiency, strengthen team building, expand cooperation with renowned domestic and international brands, and explore new international market opportunities - Jusheng Technology will continue to expand its leading edge in digital marketing, utilizing more cutting-edge technological means to enhance advertising precision and efficiency[59](index=59&type=chunk) - The company will further strengthen team building, attract more industry experts, form a high-quality service team, and expand cooperation with renowned domestic and international brands[59](index=59&type=chunk) - As the global digital marketing market expands, the company will explore new market opportunities and expand its international business footprint[59](index=59&type=chunk) [Retail Business Outlook](index=24&type=section&id=Retail%20Business%20Outlook) Future retail business strategy will focus on enhancing brand value and maintaining customer loyalty, improving brand awareness through both online and offline channels, optimizing shopping experience, and fostering long-term supplier relationships - The future strategy for the retail business will focus on enhancing brand value and maintaining customer loyalty[60](index=60&type=chunk) - The Group is gradually promoting its own brands through Douyin, enhancing brand awareness via both online and offline channels[60](index=60&type=chunk) - The company will continue to strive to expand market share, enhance brand influence, and provide consumers with a superior shopping experience through innovative business models and services[60](index=60&type=chunk) [Healthcare and Hotel Business Outlook](index=25&type=section&id=Healthcare%20and%20Hotel%20Business%20Outlook) Given the underperformance of the healthcare and hotel business and its unlikelihood of short-term reversal, the Group will continue to monitor opportunities and explore methods to realize the investment value in this segment - Due to the relatively poor performance of the healthcare and hotel business, and the unlikelihood of this underperformance being reversed in the short term[61](index=61&type=chunk) - The Group will continue to monitor opportunities and explore methods to realize the investment value in this segment[61](index=61&type=chunk) [Web 4.0 Strategic Transformation](index=25&type=section&id=Web%204.0%20Strategic%20Transformation) Ocean Group will steadily advance its Web 4.0-centric strategic transformation in the second half of 2025, leveraging AI digital humans as technological support and building a new value circulation mechanism through RWA tokenization, focusing on education, gaming, and big health sectors - In the second half of 2025, Ocean Group will steadily advance its Web 4.0-centric strategic transformation, leveraging Artificial Intelligence (AI) digital humans as key technological support and building a new value circulation mechanism through Real World Asset (RWA) tokenization[62](index=62&type=chunk) - The Group will focus on three key areas: education, gaming, and big health, actively promoting data standardization, digital asset representation, and global value synergy[62](index=62&type=chunk) - The Group extensively collaborates with industry partners to jointly promote the ecological development of AI technology integrated with real-world assets, committed to providing continuous support for the digital transformation of the real economy[62](index=62&type=chunk) [Financial Review](index=25&type=section&id=Financial%20Review) The Group's revenue for the first half of 2025 decreased by **43.5%** year-on-year, but gross profit significantly increased by **66.6%**, with gross margin rising to **21.3%**. Sales and administrative expenses decreased due to cost reduction and efficiency improvements, and loss attributable to owners of the company narrowed by **35.6%** [Revenue](index=25&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's revenue was approximately **HKD 290,663 thousand**, a **43.5%** year-on-year decrease, primarily impacted by reduced revenue from retail and digital marketing businesses Revenue Composition and Proportion (For the six months ended June 30) | Business Segment | 2025 Revenue (Thousand HKD) | 2025 Proportion | 2024 Revenue (Thousand HKD) | 2024 Proportion | | :--- | :--- | :--- | :--- | :--- | | Silicone Business | 102,048 | 35.1% | 118,369 | 23.0% | | Digital Marketing Business | 186,276 | 64.1% | 335,300 | 65.2% | | Retail Business | 2,339 | 0.8% | 60,419 | 11.8% | | Healthcare and Hotel | Minimal | – | Minimal | – | | **Total Revenue** | **290,663** | **100%** | **514,096** | **100%** | - Total revenue decreased by **43.5%** compared to the same period in 2024[63](index=63&type=chunk) [Gross Profit](index=25&type=section&id=Gross%20Profit) For the six months ended June 30, 2025, the Group's gross profit was approximately **HKD 61,800 thousand**, a **66.6%** year-on-year increase, with gross margin significantly improving to **21.3%** Gross Profit and Gross Margin (For the six months ended June 30) | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 61,800 | 37,100 | +66.6% | | Gross Margin | 21.3% | 7.3% | +14.0pp | [Expenses](index=26&type=section&id=Expenses) For the six months ended June 30, 2025, sales and distribution expenses decreased by **10.9%**, and administrative expenses decreased by **29.3%**, primarily due to the Group's cost reduction, efficiency improvement, and optimized staffing structure Sales and Administrative Expenses (For the six months ended June 30) | Expense Category | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Sales and Distribution Expenses | 11,400 | 12,800 | -10.9% | | Administrative Expenses | 44,800 | 63,400 | -29.3% | - The decrease in expenses was primarily due to the Group's implementation of cost reduction and efficiency improvement measures, as well as optimization of its staffing structure[65](index=65&type=chunk) [Loss Attributable to Owners of the Company](index=26&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2025, loss attributable to owners of the company was approximately **HKD 12,100 thousand**, a **35.6%** year-on-year decrease, with loss per share narrowing, primarily due to the combined impact of reduced retail business revenue and improved profitability in the digital marketing segment Loss Attributable to Owners of the Company and Loss Per Share (For the six months ended June 30) | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | 12,100 | 18,800 | -35.6% | | Loss Per Share (HK cents) | 8.45 | 14.41 | -41.36% | - The decrease in loss was primarily due to a significant decline in retail business revenue leading to tighter gross margins, and a notable improvement in the profitability of the digital marketing segment[66](index=66&type=chunk) [Cash Flow and Financial Resources](index=26&type=section&id=Cash%20Flow%20and%20Financial%20Resources) The Group's primary source of funds is cash generated from operating activities, working capital remains stable, but cash and cash equivalents decreased, liquidity and quick ratios slightly improved, and the gearing ratio increased - The Group's primary source of funds is cash generated from operating activities, and its working capital remains stable[67](index=67&type=chunk) Cash Flow and Financial Ratios (As of June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Cash and cash equivalents (Thousand HKD) | 7,304 | 18,939 | | Current Ratio | 0.78 | 0.75 | | Quick Ratio | 0.73 | 0.69 | | Gearing Ratio | 5.42 | 4.42 | [Risk Factors](index=26&type=section&id=Risk%20Factors) The Group faces various risks, including raw material price volatility and market demand changes in the silicone and retail businesses, internet regulatory policies and client relationship dependency in digital marketing, intense industry competition across all segments, credit risk due to tight liquid assets, and event risks such as natural disasters or industrial accidents [Business Risks](index=26&type=section&id=Business%20Risks) Silicone and retail businesses are affected by raw material price fluctuations and market demand, while digital marketing is influenced by internet regulatory policies and the stability of client relationships - The performance of the silicone business and retail business is primarily affected by market price fluctuations of raw materials/goods and market demand for finished products[69](index=69&type=chunk) - The digital marketing business is influenced to some extent by internet regulatory policies and relies on the continuous stability of client relationships[69](index=69&type=chunk) [Industry Risks](index=27&type=section&id=Industry%20Risks) All of the Group's business segments operate in highly competitive industries, and failure to compete successfully could lead to a decrease in business scale and a contraction in operating performance - All of the Group's business segments operate in highly competitive industries, facing competition from other products, brands, and online platforms[70](index=70&type=chunk) - If the Group fails to compete successfully with existing or new competitors, it may lead to a decrease in the scale of existing businesses and a contraction in operating performance[70](index=70&type=chunk) [Credit Risk](index=27&type=section&id=Credit%20Risk) As of June 30, 2025, the Group's total current assets were lower than total current liabilities, bank balances and cash on hand were tight, posing a risk of difficulty in repaying short-term debts if receivables are not fully recovered - As of June 30, 2025, the Group's total current assets were approximately **HKD 485,900 thousand**, and total current liabilities were approximately **HKD 619,400 thousand**[71](index=71&type=chunk) - The Group's bank balances and cash on hand are relatively tight compared to its current liabilities[71](index=71&type=chunk) - If receivables are not fully recovered, the Group may not have sufficient resources to repay its short-term debts when due[71](index=71&type=chunk) [Event Risks](index=27&type=section&id=Event%20Risks) Unexpected events such as natural disasters or industrial accidents could negatively impact the company's operating results and financial position, disrupting operations, increasing costs, and exacerbating other risks, with no guarantee that corresponding measures will be adequate - Event risk refers to the risk of unexpected events such as natural disasters or industrial accidents negatively impacting the company's operating results and financial position[72](index=72&type=chunk) - Such events could disrupt the Group's operations, increase prices of raw materials and outsourced services, and exacerbate other risks and uncertainties faced by the Group[72](index=72&type=chunk) [Capital Structure](index=27&type=section&id=Capital%20Structure) On May 26, 2025, the company completed a share consolidation, merging every ten shares of **HKD 0.1** par value into one share of **HKD 1.0** par value, and on June 9, 2025, issued **12,000,000** new shares under general mandate, bringing the total issued shares to **143,346,700** - On May 26, 2025, the company held an extraordinary general meeting to approve the consolidation of every ten issued and unissued ordinary shares of **HKD 0.1** par value in the company's share capital into one consolidated share of **HKD 1.0** par value[73](index=73&type=chunk) - The share consolidation became effective on May 28, 2025, and the total number of issued shares of the company became **131,346,700** shares[73](index=73&type=chunk) - On June 9, 2025, the company completed a share subscription under general mandate, issuing a total of **12,000,000 shares**, changing the total number of issued shares of the company to **143,346,700** shares[73](index=73&type=chunk) [Use of Proceeds from Share Subscription](index=27&type=section&id=Use%20of%20Proceeds%20from%20Share%20Subscription) The net proceeds from the share subscription on June 9, 2025, approximately **HKD 12,000 thousand**, were fully utilized to support digital marketing business development (including hardware, software, working capital), the Group's general working capital, and legal and professional fees - The net proceeds from the subscription were approximately **HKD 12,000,000**, intended to support the Group's further business development, including but not limited to its digital marketing business[75](index=75&type=chunk) - Specific uses include purchasing digital marketing hardware and equipment (**HKD 4,000 thousand**), developing digital marketing system software (**HKD 2,000 thousand**), general working capital for digital marketing business (**HKD 1,000 thousand**), legal and professional fees (**HKD 1,000 thousand**), and the Group's general working capital (**HKD 4,000 thousand**)[75](index=75&type=chunk) - For the six months ended June 30, 2025, the net proceeds have been fully utilized according to their intended purposes[76](index=76&type=chunk) [Pledge of Assets](index=28&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had capital commitments of approximately **HKD 8,600 thousand** primarily for expanding silicone business capacity, and pledged approximately **HKD 79,800 thousand** in land and buildings, investment properties, right-of-use assets, and trade receivables as collateral for borrowings - The Group's contracted capital commitments not yet provided for in the financial statements as of June 30, 2025, amounted to approximately **HKD 8,600 thousand**, primarily related to expanding silicone business capacity[77](index=77&type=chunk) - As of June 30, 2025, the Group pledged certain land and buildings, investment properties, right-of-use assets, and trade receivables totaling approximately **HKD 79,800 thousand** as collateral for the Group's borrowings[77](index=77&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group was not aware of any significant contingent liabilities - As of June 30, 2025, the Group was not aware of any significant contingent liabilities[78](index=78&type=chunk) [Material Investments, Acquisitions and Disposals](index=28&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) Except as disclosed in this report, the Group had no material investments, acquisitions, or disposals of any subsidiaries, associates, or joint ventures for the six months ended June 30, 2025 - Except as disclosed in this report, the Group had no material investments, acquisitions, or disposals of any subsidiaries, associates, or joint ventures for the six months ended June 30, 2025[79](index=79&type=chunk) [Post Balance Sheet Events](index=28&type=section&id=Post%20Balance%20Sheet%20Events) On July 3, 2025, the company entered into subscription agreements with five subscribers, conditionally agreeing to subscribe for **28,660,000 shares**, and completed a partial share subscription on August 19, 2025, issuing **8,670,000 shares** - On July 3, 2025, the company entered into subscription agreements with five subscribers, whereby the subscribers conditionally agreed to subscribe for, and the company conditionally agreed to allot and issue, a total of **28,660,000 subscription shares** at a subscription price of **HKD 1.20** per subscription share under general mandate[80](index=80&type=chunk) - As of the date of this report, the company completed a partial share subscription on August 19, 2025, under general mandate, issuing a total of **8,670,000 shares**[80](index=80&type=chunk) [Future Plans for Material Investments or Capital Assets](index=28&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Except as disclosed in this report, as of June 30, 2025, the Group had no specific plans for any material investments or capital assets - Except as disclosed in this report, as of June 30, 2025, the Group had no specific plans for any material investments or capital assets[81](index=81&type=chunk) [Currency Management and Treasury Policy](index=29&type=section&id=Currency%20Management%20and%20Treasury%20Policy) The Group's cash income and costs are primarily denominated in USD, HKD, GBP, and RMB, with fluctuations in RMB and GBP impacting profitability. The Group closely monitors currency trends but did not enter into any hedging financial instruments during the period - The Group's cash income is denominated in USD, HKD, GBP, and RMB, while labor costs, manufacturing overheads, sales, and administrative expenses are primarily negotiated, measured, and settled in RMB, HKD, and GBP[82](index=82&type=chunk) - Fluctuations in RMB and GBP will impact the Group's profitability[82](index=82&type=chunk) - For the six months ended June 30, 2025, the Group did not enter into any financial instruments for hedging purposes[82](index=82&type=chunk) [Human Resources and Remuneration Policy](index=29&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) The Group values experienced employees, provides on-the-job and continuous professional training, offers competitive remuneration packages and benefits, and employed **694 staff** as of June 30, 2025 - Experienced workers, engineers, and professionals are crucial to the Group, which provides on-the-job training and encourages employees to participate in continuous professional development[83](index=83&type=chunk) - The Group offers competitive remuneration packages to all employees, including quality staff accommodation, training, medical, insurance, and retirement benefits[83](index=83&type=chunk) - As of June 30, 2025, the Group employed **694 permanent and temporary staff** (December 31, 2024: **715 staff**)[83](index=83&type=chunk) [Interim Dividends](index=29&type=section&id=Interim%20Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, and 2024 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[84](index=84&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) This section covers additional corporate information, including governance practices, directors' and shareholders' interests, and audit committee review [Corporate Governance Practices](index=30&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high corporate governance standards and complied with the Corporate Governance Code in Appendix C1 of the Listing Rules for the first half of 2025, but noted non-compliance regarding independent non-executive directors' attendance at general meetings and the composition of the Board/Audit Committee - The company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the six months ended June 30, 2025[85](index=85&type=chunk) - Non-executive Director Mr. Han Lei was unable to attend the company's annual general meeting held on June 27, 2025, due to other work commitments[85](index=85&type=chunk) - The company failed to comply with Listing Rule 3.10(1) (the board must include at least three independent non-executive directors) and Rule 3.21 (the audit committee must comprise at least three members) and is seeking suitable candidates to fill the vacancies[86](index=86&type=chunk) [Standard Code for Securities Transactions by Directors](index=30&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Standard Code set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with the code for the six months ended June 30, 2025 - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[87](index=87&type=chunk) - Each director confirmed compliance with the Standard Code for the six months ended June 30, 2025[87](index=87&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=31&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, Ms. Shi Qi held a **55.59%** long position and a **45.68%** short position in the company through a controlled corporation, while Mr. Hu Jiangbing held a **0.06%** long position Directors' and Chief Executive's Interests (As of June 30) | Name | Nature of Interest | Total Number of Shares / Underlying Shares Held | Approximate Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Ms. Shi Qi | Interest in controlled corporation | 79,687,549 (Long Position) | 55.59% | | | | 65,481,060 (Short Position) | 45.68% | | Mr. Hu Jiangbing | Beneficial owner | 85,000 (Long Position) | 0.06% | - Ms. Shi Qi's interests are held through Lyton Maison Limited, with **65,481,060 shares** pledged to Mason Resources Finance Limited[89](index=89&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=32&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Lyton Maison Limited was a substantial shareholder, holding a **55.59%** long position and a **45.68%** short position, with a portion of shares pledged to Mason Resources Finance Limited, which, along with its parent company Mason Group Holdings Limited, consequently held a security interest Substantial Shareholders' Interests (As of June 30) | Name | Nature of Interest | Total Number of Shares / Underlying Shares Held | Approximate Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Lyton Maison Limited | Beneficial owner | 79,687,549 (Long Position) | 55.59% | | | | 65,481,060 (Short Position) | 45.68% | | Mason Resources Finance Limited | Person with security interest in shares | 65,481,060 (Long Position) | 45.68% | | Mason Group Holdings Limited | Interest in controlled corporation | 65,481,060 (Long Position) | 45.68% | - Of the **79,687,549 shares** held by Lyton Maison Limited, **65,481,060 shares** are pledged to Mason Resources Finance Limited[91](index=91&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=32&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[92](index=92&type=chunk) [Share Option Scheme](index=33&type=section&id=Share%20Option%20Scheme) For the six months ended June 30, 2025, no share options were granted, exercised, cancelled, or lapsed under the company's share option scheme, and there were no outstanding share options - For the six months ended June 30, 2025, no share options or securities were granted, exercised, cancelled, or lapsed under the scheme[93](index=93&type=chunk) - As of January 1, 2025, and June 30, 2025, there were no outstanding share options under the scheme[93](index=93&type=chunk) [Audit Committee and Review of Financial Statements](index=33&type=section&id=Audit%20Committee%20and%20Review%20of%20Financial%20Statements) The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that they have been prepared in accordance with applicable accounting standards, Listing Rules, and statutory provisions, with adequate disclosures - The Audit Committee comprises Mr. Chen Shaoda (Chairman) and Dr. Feng Xin, both independent non-executive directors[94](index=94&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the company with management and discussed financial reporting matters[94](index=94&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that the consolidated financial statements have been prepared in accordance with applicable accounting standards, Listing Rules, and statutory provisions, with adequate disclosures[94](index=94&type=chunk)