[Company Overview and Financial Summary](index=1&type=section&id=Company%20Overview%20and%20Financial%20Summary) [Financial Highlights](index=1&type=section&id=1.1%20Financial%20Highlights) In the first half of 2025, the Group faced industry challenges with declining turnover and gross profit margin, yet net profit only slightly decreased due to stringent cost control and increased investment income, maintaining stable operating cash flow H1 2025 Financial Highlights | Metric | H1 2025 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | | Turnover | 1,652,698 | -20.8% | | Gross Profit Margin | 72.2% | -3.1 percentage points | | Profit for the Period | 614,663 | -1.9% | | Earnings Per Share | 81 cents | -2.4% | | Net Cash from Operating Activities | 566,319 | +0.4% | | Second Interim Dividend | 11 cents per share | - | [Performance Overview and Market Environment](index=2&type=section&id=1.2%20Performance%20Overview%20and%20Market%20Environment) In H1 2025, the Group experienced negative operational growth with sales down 20.8% year-on-year and gross margin falling from 75.3% to 72.2%, primarily due to shrinking TCM demand, consumption downgrade, centralized procurement price cuts, rising production costs, and medical insurance cost controls; however, net profit only slightly decreased by 1.9% through cost efficiency and increased investment income - Overall sales decreased by **20.8%** to **RMB 1,652,698,000**, primarily due to macro factors such as shrinking demand in the Traditional Chinese Medicine (TCM) industry, consumption downgrade, centralized procurement price reductions, rising production costs, and medical insurance cost controls[4](index=4&type=chunk) - Gross profit margin decreased from **75.3%** in the same period last year to **72.2%**, mainly due to increased raw material procurement costs and the impact of centralized procurement on drug prices[4](index=4&type=chunk) - Through cost control and efficiency improvements, sales and distribution costs decreased by **20.7%**, administrative expenses by **12.9%**, and coupled with increased investment income, net profit only slightly decreased by **1.9%**, with net profit margin improving from **30.0%** to **37.2%**[5](index=5&type=chunk) - Net cash from operating activities was **RMB 566,319,000**, a slight increase of **0.4%** year-on-year, generating approximately **RMB 465,705,000** in free cash flow during the first half[5](index=5&type=chunk) [Dividend Declaration](index=3&type=section&id=1.3%20Dividend%20Declaration) The Board declared a second interim dividend of RMB 11 cents per share for 2025, bringing the total dividends paid to shareholders for 2025 to RMB 47 cents per share, including the first interim dividend - Declared a second interim dividend of **RMB 11 cents per share** for 2025[6](index=6&type=chunk) - Together with the first interim dividend of **RMB 36 cents per share** for 2025, total dividends paid to shareholders for 2025 amounted to **RMB 47 cents per share**[6](index=6&type=chunk) [Operating Performance Analysis](index=3&type=section&id=Operating%20Performance%20Analysis) [Sales by Dosage Form](index=3&type=section&id=2.1%20Sales%20by%20Dosage%20Form) In H1 2025, the Group experienced a general decline in sales across all dosage forms, with total sales decreasing by 20.8% year-on-year, while oral products remained a key development strategy, accounting for 65.8% of total sales H1 2025 Sales by Dosage Form | Dosage Form | H1 2025 Sales (RMB thousands) | Y-o-Y Change | 2025 Sales Share | | :--- | :--- | :--- | :--- | | Injections | 565,628 | -27.4% | 34.2% | | Soft Capsules | 217,383 | -24.7% | 13.2% | | Granules | 272,695 | -21.0% | 16.5% | | TCM Formula Granules | 487,717 | -12.1% | 29.5% | | Others | 109,275 | -8.1% | 6.6% | | Total Oral Products | 1,087,070 | -16.9% | 65.8% | | Total Sales | 1,652,698 | -20.8% | 100.0% | - Oral products accounted for **65.8%** of total sales, while injection products accounted for **34.2%**, with the Group continuing to prioritize the expansion of oral preparations as a key development strategy[7](index=7&type=chunk) [Injections](index=3&type=section&id=2.1.1%20Injections) Total sales of injection products decreased by 27.4% year-on-year, primarily due to significant reductions in sales of Qingkailing Injection and Shenmai Injection - Total sales of injection products decreased by **27.4%**, with Qingkailing Injection and Shenmai Injection sales decreasing by **50.1%** and **21.0%** respectively[8](index=8&type=chunk) [Soft Capsules](index=4&type=section&id=2.1.2%20Soft%20Capsules) Total sales of soft capsule products decreased by 24.7% year-on-year, mainly due to reduced sales of Wufu Xinnaoqing Soft Capsules, Huoxiang Zhengqi Soft Capsules, and Qingkailing Soft Capsules, though exclusive products Jiangzhi Tongluo Soft Capsules and Dandeng Tongnao Soft Capsules achieved growth - Total sales of soft capsule products decreased by **24.7%**, with Wufu Xinnaoqing Soft Capsules, Huoxiang Zhengqi Soft Capsules, and Qingkailing Soft Capsules sales decreasing by **67.4%**, **16.0%**, and **24.6%** respectively[9](index=9&type=chunk) - Exclusive products Jiangzhi Tongluo Soft Capsules and Dandeng Tongnao Soft Capsules recorded sales growth of **16.5%** and **15.2%** respectively[9](index=9&type=chunk) [Granules](index=4&type=section&id=2.1.3%20Granules) Total sales of granule products decreased by 21.0% year-on-year, primarily due to significant reductions in sales of respiratory medications Phenamin Caffeine Granules and Xiao'er Qingfei Huatan Granules, though the exclusive product Shujin Tongluo Granules achieved growth - Total sales of granule products decreased by **21.0%**, with Phenamin Caffeine Granules and Xiao'er Qingfei Huatan Granules sales decreasing by **40.1%** and **57.8%** respectively[9](index=9&type=chunk) - Exclusive product Shujin Tongluo Granules recorded sales growth of **43.8%**[9](index=9&type=chunk) [TCM Formula Granules](index=4&type=section&id=2.1.4%20TCM%20Formula%20Granules) Sales of TCM formula granules decreased by 12.1% year-on-year, primarily due to increased overdue accounts receivable leading to delayed shipments, and intensified market competition - Sales of TCM formula granules decreased by **12.1%**, mainly due to increased overdue accounts receivable and the Group's temporary suspension of shipments to institutions not meeting risk management requirements[9](index=9&type=chunk) [Other Dosage Forms](index=3&type=section&id=2.1.5%20Other%20Dosage%20Forms) Sales of other dosage forms, including pills and tablets, decreased by 8.1% year-on-year - Sales of other dosage forms decreased by **8.1%** year-on-year[7](index=7&type=chunk) [Sales by Drug Category](index=4&type=section&id=2.2%20Sales%20by%20Drug%20Category) The Group experienced significant declines in sales of essential medicines and prescription drugs, with an even larger drop in OTC drugs, reflecting weak market demand and policy impacts [Essential Medicines](index=4&type=section&id=2.2.1%20Essential%20Medicines) Overall sales of the Group's regularly produced drugs listed in the National Essential Medicines Catalogue decreased by 30.7% to RMB 582,080,000, accounting for 35.2% of total sales, mainly due to reduced sales of related varieties; national policies promoting widespread use of essential medicines are expected to drive future growth - Eighteen of the Group's regularly produced drugs are listed in the National Essential Medicines Catalogue, but overall sales decreased by **30.7%** to **RMB 582,080,000**, accounting for **35.2%** of the Group's total sales[10](index=10&type=chunk) - The National Health Commission emphasized improving the national drug system, implementing grassroots drug linkage services, and consolidating the essential medicines system, which is expected to drive sustained growth in essential medicines[11](index=11&type=chunk) [Prescription and Over-the-Counter Drugs](index=5&type=section&id=2.2.2%20Prescription%20and%20Over-the-Counter%20Drugs) Prescription drug sales decreased by 20.4% year-on-year, accounting for 89.3% of total sales; OTC drug sales decreased by 24.0%, accounting for 10.7% H1 2025 Sales by Drug Category and Efficacy | Drug Category | H1 2025 Sales (RMB thousands) | Sales Share | Sales Change | | :--- | :--- | :--- | :--- | | TCM Formula Granules | 487,717 | 29.5% | -12.1% | | Respiratory Prescription Drugs | 264,410 | 16.0% | -47.6% | | Cardiovascular and Cerebrovascular Injection Prescription Drugs | 294,462 | 17.8% | -14.9% | | Exclusive Oral Prescription Drugs | 266,627 | 16.1% | 3.6% | | Other Prescription Drugs | 162,726 | 9.9% | -15.2% | | **Total Prescription Drugs** | **1,475,942** | **89.3%** | **-20.4%** | | **OTC Drugs** | **176,756** | **10.7%** | **-24.0%** | | **Total Sales** | **1,652,698** | **100%** | **-20.8%** | [Key Product Line Details](index=6&type=section&id=2.3%20Key%20Product%20Line%20Details) The Group's key product lines face diverse challenges, with declining sales in TCM formula granules and respiratory drugs, cardiovascular and cerebrovascular injections affected by centralized procurement, but exclusive oral prescription drugs maintaining growth, while OTC drugs decreased due to high base and consumer confidence [TCM Formula Granules Business](index=6&type=section&id=2.3.1%20TCM%20Formula%20Granules%20Business) Sales of TCM formula granules decreased by 12.1% to RMB 487,717,000, accounting for 29.5% of total sales, primarily due to increased overdue accounts receivable leading to delayed shipments and price wars from new suppliers; the Group is reorganizing its team, increasing national market personnel, and prioritizing hospital market development in 10 other provinces - Sales of TCM formula granules decreased by **12.1%** to **RMB 487,717,000**, accounting for **29.5%** of total sales, ranking among the top five listed companies for TCM formula granules nationwide[13](index=13&type=chunk) - The sales decline was mainly due to increased overdue accounts receivable leading to temporary suspension of shipments to some hospitals and primary healthcare institutions, as well as price wars from new suppliers[13](index=13&type=chunk) - The Group is reorganizing its formula granule business unit team, increasing national market personnel, and prioritizing the development of hospital markets in 10 provinces outside Hebei and Yunnan[14](index=14&type=chunk) [Respiratory Prescription Drugs](index=6&type=section&id=2.3.2%20Respiratory%20Prescription%20Drugs) Sales of respiratory prescription drugs significantly decreased by 47.6% to RMB 264,410,000, accounting for 16.0% of total sales, primarily due to a high base of social inventory post-pandemic, slowing macroeconomy, and inventory adjustments in terminal channels; the self-developed 'JC Capsule' has completed Phase III clinical trials and is expected to obtain a production license in the second half of the year - Sales of respiratory prescription drugs significantly decreased by **47.6%** to **RMB 264,410,000**, with Qingkailing Injection and Phenamin Caffeine Granules sales decreasing by **50.1%** and **40.1%** respectively[15](index=15&type=chunk) - The sales decline was mainly due to a high base post-pandemic, weak market demand caused by a slowing macroeconomy, and inventory adjustments by medical institutions and retail pharmacies[16](index=16&type=chunk) - The self-developed **'JC Capsule'** for upper respiratory tract infections has completed Phase III clinical trials and is expected to obtain a production license in the second half of 2025[16](index=16&type=chunk) [Cardiovascular and Cerebrovascular Injection Prescription Drugs](index=7&type=section&id=2.3.3%20Cardiovascular%20and%20Cerebrovascular%20Injection%20Prescription%20Drugs) Sales of cardiovascular and cerebrovascular injection prescription drugs recorded a negative growth of 14.9% to RMB 294,462,000, accounting for 17.8% of total sales, primarily due to the national centralized procurement's 'dual control' policy, leading to a significant decline in hospital procurement demand - Sales of cardiovascular and cerebrovascular injection prescription drugs recorded a negative growth of **14.9%** to **RMB 294,462,000**[17](index=17&type=chunk) - The primary sales channel is hospitals, and sales significantly declined due to the implementation of 'dual control' policies on drug prices and procurement volumes across various regions following national centralized procurement[17](index=17&type=chunk) [Exclusive Oral Prescription Drugs](index=7&type=section&id=2.3.4%20Exclusive%20Oral%20Prescription%20Drugs) Sales of exclusive oral prescription drugs grew by 3.6% year-on-year, accounting for 16.1% of total sales, with Jiangzhi Tongluo Soft Capsules, Dandeng Tongnao Soft Capsules, and Shujin Tongluo Granules all achieving significant growth; Qihuang Tongmi Soft Capsules and Dandeng Tongnao Soft Capsules received recommendations in expert consensus and medication guidelines, enhancing clinical recognition; the Group will continue to increase evidence-based medicine research and academic promotion - Sales of exclusive oral prescription drugs increased by **3.6%**, accounting for **16.1%** of total sales[18](index=18&type=chunk)[19](index=19&type=chunk) - Jiangzhi Tongluo Soft Capsules, Dandeng Tongnao Soft Capsules, and Shujin Tongluo Granules grew by **16.5%**, **15.2%**, and **43.8%** respectively[18](index=18&type=chunk) - Qihuang Tongmi Soft Capsules were recommended in the 'Expert Consensus on Integrated Traditional Chinese and Western Medicine Diagnosis and Treatment of Functional Constipation (2025)', and Dandeng Tongnao Soft Capsules were included in the 'Guidelines for Rational Drug Use in Cerebrovascular Diseases', enhancing their clinical standing[19](index=19&type=chunk)[20](index=20&type=chunk) [Over-the-Counter Drugs](index=9&type=section&id=2.3.5%20Over-the-Counter%20Drugs) Overall OTC drug sales decreased by 24.0% year-on-year, with Huoxiang Zhengqi Soft Capsules, Qingkailing Soft Capsules, and Xiao'er Qingfei Huatan Granules all experiencing sales declines, primarily due to high base reserves by the public and pharmacies post-pandemic, and slowing economic growth affecting consumer confidence - Overall OTC drug sales decreased by **24.0%** year-on-year, with Huoxiang Zhengqi Soft Capsules and Qingkailing Soft Capsules declining by **16.0%** and **24.6%** respectively[22](index=22&type=chunk) - Xiao'er Qingfei Huatan Granules sales decreased by **57.8%**[22](index=22&type=chunk) - The sales reduction was mainly due to high base reserves post-pandemic and slowing economic growth affecting consumer confidence[22](index=22&type=chunk) [Research and Development & Innovation](index=9&type=section&id=Research%20and%20Development%20%26%20Innovation) [New Drug Clinical Trial Progress](index=9&type=section&id=3.1%20New%20Drug%20Clinical%20Trial%20Progress) The Group continues to increase R&D investment, focusing on modern TCM new drug development for chronic diseases; the exclusive innovative drug 'Q-B-Q-F Concentrated Pills' is still in Phase III clinical trials, while 'Sailuotong Capsules' and 'JC Capsules' have completed Phase III clinical trials, with the goal of completing production license applications by year-end - The exclusive innovative drug **'Q-B-Q-F Concentrated Pills'** is still in Phase III clinical trials[23](index=23&type=chunk) - **'Sailuotong Capsules'** and **'JC Capsules'** have completed Phase III clinical trials, with the goal of completing the submission of production license applications by the end of 2025[23](index=23&type=chunk) - R&D expenses accounted for **3.0%** of total sales revenue during the period, and the Group will continue to develop innovative TCM drugs focusing on advantageous areas such as cardiovascular and cerebrovascular diseases, pediatric diseases, orthopedic diseases, gynecological diseases, and geriatric diseases[24](index=24&type=chunk) [Technological Innovation and Awards](index=10&type=section&id=3.2%20Technological%20Innovation%20and%20Awards) The Group's 'Research and Application Project of Hawthorn Leaves and Formula Granules, Hebei Characteristic Traditional Chinese Medicine' won the Third Prize of Hebei Provincial Science and Technology Progress Award; this project achieved significant results in hawthorn leaf quality evaluation, material basis research for formula granules, and quality standard formulation, promoting the standardized development of the TCM industry - The **'Research and Application Project of Hawthorn Leaves and Formula Granules, Hebei Characteristic Traditional Chinese Medicine'** won the **Third Prize of Hebei Provincial Science and Technology Progress Award**[25](index=25&type=chunk) - The project achieved significant results in constructing a quality evaluation system for hawthorn leaves, researching the material basis of formula granules, formulating quality standards, and industrial upgrading, filling a gap in this field[25](index=25&type=chunk) - A total of **49 papers** were published, **1 provincial standard** and **1 local standard** were formulated, and **2 authorized utility model patents** were obtained[25](index=25&type=chunk) [Development of Ancient Classic Prescriptions](index=11&type=section&id=3.3%20Development%20of%20Ancient%20Classic%20Prescriptions) The Group actively promotes the inheritance and innovation of Traditional Chinese Medicine, having developed and researched over 100 ancient classic prescriptions for new drug transformation; the self-developed 'Shaoyao Gancao Tang Granules' received NMPA approval for market launch, becoming the first approved classic prescription in 2025; Phase II clinical trials for 'Yigong San Granules', a Class 1.1 new TCM drug for chronic anemia, are progressing smoothly - Over **100 ancient classic prescriptions** have been developed and researched for new drug transformation, and the registration applications for multiple Class 1.1 and Class 3.1 new TCM drugs are being accelerated[26](index=26&type=chunk) - The self-developed **'Shaoyao Gancao Tang Granules'** received approval from the National Medical Products Administration (NMPA) for market launch, becoming the **first approved classic prescription in 2025** and the Group's second approved classic prescription[26](index=26&type=chunk) - Preparations for Phase II clinical trials of **'Yigong San Granules'**, a Class 1.1 new TCM drug for chronic anemia, are progressing smoothly, with its clinical value particularly prominent for those unresponsive to EPO treatment[26](index=26&type=chunk) [Industry Policies and Market Dynamics](index=11&type=section&id=Industry%20Policies%20and%20Market%20Dynamics) [National Support Policies for TCM](index=11&type=section&id=4.1%20National%20Support%20Policies%20for%20TCM) In H1 2025, the state continued to introduce multiple policies supporting the high-quality development of the TCM industry, including deepening the '14th Five-Year Plan' for TCM development, promoting standard system construction, enhancing TCM quality and technological innovation, incorporating innovative drugs and high-value TCM drugs into medical insurance, and promoting TCM services to grassroots levels, providing opportunities for TCM enterprises to expand their markets - The National Conference of Directors of Traditional Chinese Medicine Bureaus outlined key tasks for 2025, including deepening the **'14th Five-Year Plan' for TCM development**, promoting standard system construction, and enhancing TCM quality and technological innovation[28](index=28&type=chunk) - The National Healthcare Security Administration announced the inclusion of innovative drugs and high-value TCM drugs in medical insurance policy adjustments and management, supporting TCM innovation[29](index=29&type=chunk) - The National Health Commission promoted the optimization of community and grassroots TCM service systems, enhancing basic public health service capabilities in TCM, thereby driving TCM enterprises to expand their markets at the grassroots level[29](index=29&type=chunk) [National Centralized Procurement Bidding for Proprietary Chinese Medicines](index=12&type=section&id=4.2%20National%20Centralized%20Procurement%20Bidding%20for%20Proprietary%20Chinese%20Medicines) Eight of the Group's key products, including Qingkailing Injection and Shuxuening Injection, successfully won bids in the national centralized procurement for proprietary Chinese medicines; this successful bid aligns with DRGs/DIP payment requirements, enhancing the Group's product demand, market coverage, and sales potential in the terminal market - Eight of the Group's key products, including **Qingkailing Injection**, **Shuxuening Injection**, **Shenmai Injection**, **Shuanghuanglian Injection**, **Dengzhanhuasu Injection**, **Yinzhihuang Injection**, **Qingkailing Soft Capsules**, and **Xuesaitong Dripping Pills**, successfully won bids in the national centralized procurement for proprietary Chinese medicines[30](index=30&type=chunk) - The winning products cover therapeutic areas such as cardiovascular and cerebrovascular diseases, respiratory diseases, and digestive system diseases, all of which are commonly used medical insurance and essential drug varieties in clinical practice[30](index=30&type=chunk) - This centralized procurement bid win aligns with DRGs/DIP payment requirements, which will further enhance the Group's product demand, market coverage, and greater market sales potential in the terminal market[31](index=31&type=chunk) [Financial Analysis](index=13&type=section&id=Financial%20Analysis) [Turnover](index=13&type=section&id=5.1%20Turnover) In H1 2025, the Group's turnover decreased by 20.8% year-on-year to RMB 1,652,698,000, with major dosage forms such as injections, soft capsules, granules, and TCM formula granules all experiencing declining turnover H1 2025 Turnover by Dosage Form | Dosage Form | H1 2025 Turnover (RMB thousands) | Y-o-Y Change | Share of Total Turnover | | :--- | :--- | :--- | :--- | | Injections | 565,628 | -27.4% | 34.2% | | Soft Capsules | 217,383 | -24.7% | 13.2% | | Granules | 272,695 | -21.0% | 16.5% | | TCM Formula Granules | 487,717 | -12.1% | 29.5% | | Other Dosage Forms | 109,275 | -8.1% | 6.6% | | Total Turnover | 1,652,698 | -20.8% | 100.0% | - Turnover from prescription drugs and OTC drugs was **RMB 1,475,942,000** and **RMB 176,756,000** respectively, accounting for **89.3%** and **10.7%** of total turnover[32](index=32&type=chunk) [Cost of Sales](index=13&type=section&id=5.2%20Cost%20of%20Sales) In H1 2025, the cost of sales was RMB 459,092,000, representing 27.8% of turnover, with direct materials accounting for 66.8% of total production costs - Cost of sales was **RMB 459,092,000**, accounting for **27.8%** of turnover[33](index=33&type=chunk) - Direct materials, direct labor, and other production costs accounted for **66.8%**, **14.3%**, and **18.9%** of total production costs respectively[33](index=33&type=chunk) [Operating Gross Profit Margin](index=13&type=section&id=5.3%20Operating%20Gross%20Profit%20Margin) In H1 2025, the overall gross profit margin was 72.2%, a decrease from 75.3% in the same period last year, with average gross profit margins for all major product dosage forms declining to varying degrees H1 2025 Average Gross Profit Margin by Dosage Form | Dosage Form | H1 2025 Gross Profit Margin | H1 2024 Gross Profit Margin | | :--- | :--- | :--- | | Injections | 71.6% | 76.0% | | Soft Capsules | 76.0% | 77.8% | | Granules | 77.5% | 78.6% | | TCM Formula Granules | 69.7% | 72.9% | | **Overall Gross Profit Margin** | **72.2%** | **75.3%** | [Other Income](index=14&type=section&id=5.4%20Other%20Income) Other income primarily included enterprise development funds of RMB 156,300,000, a slight decrease from the same period last year - Other income primarily consisted of enterprise development funds of **RMB 156,300,000** (H1 2024: RMB 162,297,000)[35](index=35&type=chunk) [Investment Income](index=14&type=section&id=5.5%20Investment%20Income) Investment income significantly increased, primarily from interest income on bank deposits and structured deposits, and income from financial product investments - Investment income primarily included interest income from bank deposits and structured deposits of **RMB 119,821,000** (H1 2024: RMB 116,556,000) and income from financial product investments of **RMB 98,469,000** (H1 2024: RMB 4,617,000)[36](index=36&type=chunk) [Other Gains and Losses](index=14&type=section&id=5.6%20Other%20Gains%20and%20Losses) The Group recorded a net exchange gain of RMB 32,843,000, primarily due to changes in the exchange rates of AUD and HKD against RMB - Recorded a net exchange gain of **RMB 32,843,000** (H1 2024: RMB 19,118,000), primarily due to changes in the exchange rates of AUD and HKD against RMB[37](index=37&type=chunk) [Impairment of Financial Assets](index=14&type=section&id=5.7%20Impairment%20of%20Financial%20Assets) The Group made an impairment reversal of RMB 2,706,000 for trade receivables and recognized an impairment of RMB 871,000 for trade receivables secured by bank notes - Made an impairment reversal of **RMB 2,706,000** for trade receivables (H1 2024: impairment of RMB 4,788,000)[38](index=38&type=chunk) - Recognized an impairment of **RMB 871,000** for trade receivables secured by bank notes (H1 2024: impairment reversal of RMB 502,000)[38](index=38&type=chunk) [Selling and Distribution Costs](index=14&type=section&id=5.8%20Selling%20and%20Distribution%20Costs) Selling and distribution costs decreased by 20.7% year-on-year, accounting for 39.2% of turnover, primarily due to the Group's enhanced cost control, reducing market development, marketing management, and promotional expenses, as well as sales personnel numbers and salaries - Selling and distribution costs decreased by **20.7%** year-on-year, accounting for **39.2%** of turnover[39](index=39&type=chunk) - Mainly due to enhanced cost control, reducing market development expenses, marketing management expenses, market promotion expenses, and the number and salaries of sales personnel[39](index=39&type=chunk) [Administrative Expenses](index=15&type=section&id=5.9%20Administrative%20Expenses) Administrative expenses decreased by approximately 12.9% year-on-year, accounting for about 7.7% of turnover - Administrative expenses decreased by approximately **12.9%** year-on-year, accounting for about **7.7%** of turnover (H1 2024: 7.0%)[40](index=40&type=chunk) [Research and Development Costs](index=15&type=section&id=5.10%20Research%20and%20Development%20Costs) Research and development costs accounted for approximately 3.0% of turnover, an increase from 2.1% in the same period last year - Research and development costs accounted for approximately **3.0%** of turnover (H1 2024: 2.1%)[41](index=41&type=chunk) [Taxation](index=15&type=section&id=5.11%20Taxation) Total taxation for the period was RMB 160,015,000, with the effective tax rate decreasing from 27.3% in the same period last year to 20.7%, primarily due to reduced withholding tax on dividends distributed by domestic subsidiaries - Total taxation for the period was **RMB 160,015,000**, with the effective tax rate decreasing from **27.3%** in the same period last year to **20.7%**[42](index=42&type=chunk) - Mainly due to a decrease in withholding tax on dividends distributed by domestic subsidiaries during the period compared to the same period last year[42](index=42&type=chunk) [Profit for the Period](index=15&type=section&id=5.12%20Profit%20for%20the%20Period) Net profit for H1 2025 was RMB 614,663,000, a 1.9% decrease from the same period last year, primarily due to increased raw material procurement costs and the impact of centralized procurement on drug prices, leading to reduced turnover and gross profit - Net profit was **RMB 614,663,000**, a decrease of **1.9%** compared to the same period last year[43](index=43&type=chunk) - The decrease in profit was mainly due to increased raw material procurement costs and the impact of centralized procurement on drug prices, leading to reduced turnover and gross profit[43](index=43&type=chunk) [Liquidity and Financial Resources](index=15&type=section&id=5.13%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's bank balances and cash amounted to RMB 6,860,819,000, indicating a robust financial position with sufficient resources for future development - As of June 30, 2025, bank balances and cash amounted to **RMB 6,860,819,000** (December 31, 2024: RMB 6,140,153,000)[44](index=44&type=chunk) - The fair value of financial assets at fair value through profit or loss was **RMB 100,419,000**[44](index=44&type=chunk) - The Directors believe the Group's financial position is robust, with sufficient financial resources to meet future development needs[44](index=44&type=chunk) [Capital Expenditure and Property, Plant and Equipment](index=16&type=section&id=5.14%20Capital%20Expenditure%20and%20Property%2C%20Plant%20and%20Equipment) In H1 2025, the Group's capital expenditure included additions to construction in progress of approximately RMB 59,126,000 and acquisition of other property, plant and equipment of approximately RMB 19,063,000; depreciation of property, plant and equipment was RMB 69,511,000 - Additions to construction in progress of **RMB 59,126,000** and acquisition of other property, plant and equipment of **RMB 19,063,000** in H1 2025[45](index=45&type=chunk) - Depreciation of property, plant and equipment was **RMB 69,511,000** (H1 2024: RMB 75,634,000)[45](index=45&type=chunk) [Condensed Consolidated Financial Statements](index=17&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=17&type=section&id=6.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's unaudited consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, showing key financial indicators such as turnover, gross profit, profit for the period, and earnings per share, along with comparisons to the prior year Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 1,652,698 | 2,086,695 | | Cost of Sales | (459,092) | (514,511) | | Gross Profit | 1,193,606 | 1,572,184 | | Other Income | 162,059 | 168,985 | | Investment Income | 218,290 | 121,173 | | Other Gains and Losses | 29,418 | 14,206 | | Reversal (Provision) for Impairment Loss on Financial Assets, Net | 1,835 | (4,286) | | Selling and Distribution Costs | (647,836) | (817,369) | | Administrative Expenses | (126,452) | (145,212) | | Research and Development Costs | (50,378) | (44,746) | | Finance Costs | (5,864) | (2,852) | | Profit Before Tax | 774,678 | 862,083 | | Taxation | (160,015) | (235,604) | | Profit and Total Comprehensive Income for the Period | 614,663 | 626,479 | | Basic Earnings Per Share | RMB 81 cents | RMB 83 cents | [Condensed Consolidated Statement of Financial Position](index=18&type=section&id=6.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's unaudited consolidated financial position as of June 30, 2025, including key components such as non-current assets, current assets, current liabilities, non-current liabilities, and shareholders' equity Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | **1,434,737** | **1,443,007** | | Property, Plant and Equipment | 1,225,148 | 1,219,402 | | **Current Assets** | **8,952,919** | **8,598,523** | | Inventories | 722,369 | 813,190 | | Trade Receivables | 915,803 | 908,115 | | Bank Balances and Cash | 6,860,819 | 6,140,153 | | **Current Liabilities** | **2,428,081** | **2,449,996** | | Trade Payables | 373,676 | 367,046 | | **Net Current Assets** | **6,524,838** | **6,148,527** | | **Non-current Liabilities** | **149,952** | **124,630** | | **Net Assets** | **7,809,623** | **7,466,904** | | **Total Equity** | **7,809,623** | **7,466,904** | [Notes to the Condensed Consolidated Financial Statements](index=20&type=section&id=6.3%20Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, explaining the basis of preparation, significant accounting policies, composition and reasons for changes in financial data, and important information such as related party transactions and capital commitments [General Information and Significant Accounting Policies](index=20&type=section&id=6.3.1%20General%20Information%20and%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, presented in RMB, and adopt the same accounting policies and methods of computation as the annual consolidated financial statements for 2024 - The condensed consolidated financial statements are prepared in accordance with **International Accounting Standard 34** and the **Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited**[51](index=51&type=chunk) - Presented in the Company's functional currency, **RMB**, and adopt the same accounting policies and methods of computation as the annual consolidated financial statements for 2024[52](index=52&type=chunk)[53](index=53&type=chunk) - The application of amendments to International Financial Reporting Standards had no significant impact on the financial position and performance for the current and prior periods[54](index=54&type=chunk) [Turnover and Segment Information](index=20&type=section&id=6.3.2%20Turnover%20and%20Segment%20Information) The Group operates a single segment business of research, development, manufacturing, and trading of Traditional Chinese Medicine products, primarily selling to external customers in China (including Hong Kong); the notes provide an analysis of turnover by major products - The Group operates a single segment business of research, development, manufacturing, and trading of Traditional Chinese Medicine products[55](index=55&type=chunk) Analysis of Turnover from Major Products | Product | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Injections | 565,628 | 779,238 | | Soft Capsules | 217,383 | 288,759 | | Granules | 272,695 | 345,074 | | TCM Formula Granules | 487,717 | 554,726 | | Others | 109,275 | 118,898 | | **Total** | **1,652,698** | **2,086,695** | [Taxation](index=21&type=section&id=6.3.3%20Taxation) Taxation includes PRC corporate income tax, under-provision for prior years, withholding tax on distributed profits of PRC subsidiaries, and deferred tax; certain subsidiaries enjoy a 15% preferential tax rate or tax exemption; a 5% withholding tax rate applies to dividends distributed by PRC subsidiaries to overseas investors Composition of Taxation | Tax Category | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | PRC Corporate Income Tax | 97,329 | 144,053 | | Under-provision in Prior Years | 5,763 | 7,979 | | Withholding Tax on Distributed Profits of PRC Subsidiaries | 70,287 | 81,752 | | Deferred Tax | (13,364) | 1,820 | | **Total Taxation** | **160,015** | **235,604** | - Certain subsidiaries operating in Western China and recognized as high-tech enterprises enjoy a **15% preferential PRC corporate income tax rate**, while a subsidiary engaged in agricultural product business enjoys tax exemption[58](index=58&type=chunk) - Direct holding companies of PRC subsidiaries enjoy a **5% withholding tax rate**[58](index=58&type=chunk) [Profit for the Period](index=22&type=section&id=6.3.4%20Profit%20for%20the%20Period) Profit for the period is stated after deducting amortization of intangible assets, depreciation of property, plant and equipment, and including enterprise development funds, net exchange gains, and gains from disposal of property, plant and equipment Items Deducted (Included) in Profit for the Period | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Amortization of Intangible Assets | 4,424 | 5,044 | | Depreciation of Property, Plant and Equipment | 69,511 | 75,634 | | Enterprise Development Funds (included in other income) | (156,300) | (162,297) | | Net Exchange Gains (included in other gains and losses) | (32,843) | (19,118) | | Gain (Loss) on Disposal of Property, Plant and Equipment | (7,619) | 255 | [Dividends](index=23&type=section&id=6.3.5%20Dividends) The Company's Directors have declared a second interim dividend of RMB 11 cents per share for 2025, totaling RMB 83,094,000, to be paid on September 26, 2025 - The Directors have declared a second interim dividend of **RMB 11 cents per share** for 2025, totaling **RMB 83,094,000**[61](index=61&type=chunk) - The dividend will be paid on **September 26, 2025**, to shareholders whose names appear on the Company's register of members on **September 12, 2025**[61](index=61&type=chunk) [Earnings Per Share](index=23&type=section&id=6.3.6%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners of the Company are calculated based on profit for the period and the weighted average number of ordinary shares outstanding Earnings Per Share Calculation Data | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 614,663 | 626,479 | | Weighted average number of ordinary shares outstanding | 755,400,000 | 755,400,000 | | Basic and diluted earnings per share | RMB 81 cents | RMB 83 cents | [Property, Plant and Equipment](index=24&type=section&id=6.3.7%20Property%2C%20Plant%20and%20Equipment) In H1 2025, the Group added RMB 59,126,000 in construction in progress and acquired other property, plant and equipment totaling RMB 19,063,000; a gain of RMB 7,619,000 was recognized from the disposal of certain property, plant and equipment - Additions to construction in progress of **RMB 59,126,000** (H1 2024: RMB 40,518,000)[65](index=65&type=chunk) - Acquisition of other property, plant and equipment of **RMB 19,063,000** (H1 2024: RMB 22,088,000)[65](index=65&type=chunk) - Gain on disposal of property, plant and equipment of **RMB 7,619,000** (H1 2024: loss of RMB 255,000)[65](index=65&type=chunk) [Trade Receivables / Trade Receivables Secured by Bank Notes](index=24&type=section&id=6.3.8%20Trade%20Receivables%20%2F%20Trade%20Receivables%20Secured%20by%20Bank%20Notes) As of June 30, 2025, net trade receivables amounted to RMB 915,803,000, and net trade receivables secured by bank notes amounted to RMB 276,312,000; the Group generally grants credit terms ranging from six months to one year Trade Receivables and Trade Receivables Secured by Bank Notes | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 950,242 | 945,260 | | Less: Provision for Expected Credit Losses | (34,439) | (37,145) | | **Net Trade Receivables** | **915,803** | **908,115** | | Trade Receivables Secured by Bank Notes | 278,883 | 295,462 | | Less: Provision for Expected Credit Losses | (2,571) | (1,700) | | **Net Trade Receivables Secured by Bank Notes** | **276,312** | **293,762** | | **Total** | **1,192,115** | **1,201,877** | - The Group generally grants credit terms ranging from **six months to one year** to its trade customers[67](index=67&type=chunk) [Reversal (Provision) for Impairment Loss on Financial Assets under Expected Credit Loss Model, Net](index=25&type=section&id=6.3.9%20Reversal%20(Provision)%20for%20Impairment%20Loss%20on%20Financial%20Assets%20under%20Expected%20Credit%20Loss%20Model%2C%20Net) In H1 2025, an impairment loss reversal of RMB 2,706,000 was recognized for trade receivables, and an impairment loss of RMB 871,000 was recognized for trade receivables secured by bank notes, resulting in a net reversal of RMB 1,835,000 Reversal (Provision) for Impairment Loss on Financial Assets, Net | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Impairment loss recognized (reversed) on trade receivables | (2,706) | 4,788 | | Impairment loss recognized (reversed) on trade receivables secured by bank notes | 871 | (502) | | **Total** | **(1,835)** | **4,286** | [Trade Payables / Trade Payables Secured by Bank Notes](index=26&type=section&id=6.3.10%20Trade%20Payables%20%2F%20Trade%20Payables%20Secured%20by%20Bank%20Notes) As of June 30, 2025, total trade payables amounted to RMB 377,676,000, of which RMB 4,000,000 were trade payables secured by bank notes; the average credit period ranged from two to six months Trade Payables and Trade Payables Secured by Bank Notes | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 373,676 | 367,046 | | Trade Payables Secured by Bank Notes | 4,000 | 35,918 | | **Total** | **377,676** | **402,964** | - The average credit period obtained for trade purchases ranged from **two to six months**[70](index=70&type=chunk) [Share-based Payment Transactions](index=27&type=section&id=6.3.11%20Share-based%20Payment%20Transactions) The Company's share option scheme expired on May 28, 2025, with no outstanding share options; the share award scheme, adopted in 2018 to incentivize employees, had 71,600,000 shares held by the trustee at the end of the reporting period, with no shares granted or traded during the period - The Company's share option scheme expired on **May 28, 2025**, with no outstanding share options[71](index=71&type=chunk) - The share award scheme was adopted in **2018** to recognize employee contributions and attract talent[72](index=72&type=chunk) - As of the end of the reporting period, **71,600,000 shares** were held by the trustee, and no shares were sold or purchased by the trustee during the period[72](index=72&type=chunk) [Related Party Disclosures](index=28&type=section&id=6.3.12%20Related%20Party%20Disclosures) The Group has transactions with related parties, including Shenwei Pharmaceutical Technology Co Ltd, Shenwei (Sanhe) Real Estate Development Co Ltd, and Shijiazhuang Luancheng Shenwei Training School, involving interest expenses on lease liabilities and service fees Summary of Related Party Transactions and Balances | Related Party Name | Nature of Transaction | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Shenwei Pharmaceutical Technology Co Ltd | Interest expense on lease liabilities | 287 | 412 | | Shenwei Pharmaceutical Technology Co Ltd | Service fees | 5,916 | 5,916 | | Shenwei (Sanhe) Real Estate Development Co Ltd | Interest expense on lease liabilities | 47 | 68 | | Shenwei (Sanhe) Real Estate Development Co Ltd | Service fees | 1,353 | 1,353 | | Shijiazhuang Luancheng Shenwei Training School | Service fees | 621 | 360 | | Related Party Name | Nature of Balance | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Shenwei Pharmaceutical Technology Co Ltd | Lease liabilities | 10,517 | 13,871 | | Shenwei (Sanhe) Real Estate Development Co Ltd | Lease liabilities | 1,733 | 2,285 | - Shenwei Pharmaceutical Technology, Shenwei Sanhe, and Shenwei Training School are all ultimately controlled by the Company's controlling shareholder[73](index=73&type=chunk) [Capital Commitments](index=29&type=section&id=6.3.13%20Capital%20Commitments) As of June 30, 2025, the Group's contracted capital expenditure for the acquisition of property, plant and equipment, but not yet provided for in the condensed consolidated financial statements, amounted to RMB 225,175,000 - As of June 30, 2025, contracted capital expenditure for the acquisition of property, plant and equipment, but not yet provided for in the condensed consolidated financial statements, amounted to **RMB 225,175,000** (December 31, 2024: RMB 217,818,000)[74](index=74&type=chunk) [Corporate Governance and Other Information](index=30&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Closure of Register of Members](index=30&type=section&id=7.1%20Closure%20of%20Register%20of%20Members) The Company will suspend registration of members from September 11 to September 12, 2025, to determine eligibility for the second interim dividend for 2025 - The Company will suspend registration of members from **September 11, 2025, to September 12, 2025** (both dates inclusive)[75](index=75&type=chunk) - All transfer documents must be lodged with the Company's Hong Kong Share Registrar by **4:30 p.m. on September 10, 2025**, to be eligible for the second interim dividend for 2025[75](index=75&type=chunk) [Purchase, Sale or Redemption of Securities](index=30&type=section&id=7.2%20Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities during the six months ended **June 30, 2025**[76](index=76&type=chunk) [Compliance with Corporate Governance Code](index=30&type=section&id=7.3%20Compliance%20with%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period, except for the deviation where the Chairman and CEO roles are held by the same person; the Board believes this arrangement facilitates business strategy execution and maximizes operational efficiency, subject to periodic review, and all Directors confirmed compliance with the Model Code - The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period, except for the deviation from Code Provision C.2.1 regarding the separation of roles for Chairman and Chief Executive Officer[77](index=77&type=chunk) - Mr Li Zhenjiang holds both the Chairman and Chief Executive Officer positions, and the Board believes this arrangement facilitates the execution of the Group's business strategies and maximizes operational efficiency[77](index=77&type=chunk) - All Directors of the Company confirmed their compliance with the Model Code for Securities Transactions by Directors during the six months ended **June 30, 2025**[78](index=78&type=chunk) [Audit Committee](index=31&type=section&id=7.4%20Audit%20Committee) The Company's Audit Committee, together with management and external auditors, reviewed the accounting principles and policies adopted by the Group and the unaudited consolidated results for the six months ended June 30, 2025 - The Company's Audit Committee reviewed the accounting principles and policies adopted by the Group and the unaudited consolidated results for the six months ended **June 30, 2025**[79](index=79&type=chunk) [Board of Directors](index=31&type=section&id=7.5%20Board%20of%20Directors) This announcement is issued by Mr Li Zhenjiang, Chairman, on behalf of the Board; as of the announcement date, the Board members include executive directors, non-executive directors, and independent non-executive directors - Chairman **Mr Li Zhenjiang** issued this announcement on behalf of the Board[81](index=81&type=chunk) - The Board members include Executive Directors **Mr Li Zhenjiang**, **Ms Xin Yunxia**, and **Mr Li Huimin**; Non-executive Director **Mr Zhou Wencheng**; and Independent Non-executive Directors **Mr Liao Shunhui**, **Mr Yao Yian**, and **Ms Wang Guihua**[81](index=81&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 通用環球醫療集團有限公司 GENERTEC UNIVERSAL MEDICAL GROUP COMPANY LIMITED （於香港註冊成立的有限公司） （股份代號：2666） 截至2025年6月30日止六個月的中期業績 財務摘要 1 • 截至2025年6月30日止六個月，收入約人民幣7,580.7百萬元，較2024年同期的約 人民幣6,542.7百萬元增長15.9%。 • 截至2025年6月30日止六個月，期內溢利約人民幣1,335.2百萬元，較2024年同期 的約人民幣1,252.2百萬元增長6.6%。 • 截至2025年6月30日止六個月，本公司普通股權益持有人應佔期內溢利約人民幣 1,228.1百萬元，較2024年同期的約人民幣1,137.2百萬元增長8.0%。 • 於2025年6月30日，總資產約人民幣85,716.6百萬元，較於2024年12月31日的約 人民幣86,032.3百萬元減少0. ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：371） 截至二零二五年六月三十日止六個月之 中期業績公佈 業績摘要 業績亮點 – 1 – • 截至二零二五年六月三十日止六個月，本公司股東應佔溢利較上一期間之 人民幣1,122,100,000元減少20%至人民幣897,100,000元，其中包括減值撥備 對本公司股東應佔溢利影響人民幣258,900,000元。 • 除息稅折舊攤銷前溢利為人民幣3,924,500,000元，較 上 一 期 間 之 人 民 幣 4,659,700,000元減少16%。 • 期內每股基本及攤薄盈利分別為人民幣8.40分及人民幣8.40分。 • 截至二零二五年六月三十日止六個月，本集團建議派發中期股息每股7.35 港仙，較上一期間增長5%。 • 連 續 十 五 年 蟬 聯「中 國 水 業 十 大 影 響 力 企 業」榜 首 • 入 選 標 普 全 球《可 持 續 發 展 年 鑒（中 ...

[2025 Interim Results Overview](index=1&type=section&id=2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A7%88) The Group's H1 2025 performance saw revenue growth driven by increased sales, despite a significant net loss due to asset impairment and external market challenges [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's revenue increased by 9.3% to US$122.8 million in H1 2025, primarily due to a 26.9% rise in sales volume despite falling iron ore prices; however, shareholder loss expanded to US$102.0 million due to a US$120.2 million impairment of K&S assets from ruble appreciation and other non-recurring items Financial Performance Summary | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 122.8 | 112.3 | 9.3% | | Non-HKFRS Adjusted EBITDA | 6.7 | -1.7 | -485.6% | | K&S Asset Impairment Charge | 120.2 | - | N/A | | Loss Attributable to Shareholders | 102.0 | 13.2 | 670.2% | | Cash and Deposits | 29.9 (Period-end) | 60.7 (Dec 31, 2024) | -50.8% | - Sales volume increased by **26.9%**, partially offsetting the **13.9% decline** in the Platts 65% Fe index price[6](index=6&type=chunk) - Cash cost per tonne decreased to **US$77.4** (down **20.5%** YoY), primarily due to improved Sutara ore quality, lower stripping ratio, and enhanced iron ore recovery[6](index=6&type=chunk) [Operational Highlights](index=1&type=section&id=%E7%87%9F%E9%81%8B%E6%91%98%E8%A6%81) Despite challenging external market conditions, including falling iron ore prices and ruble appreciation, the Group's operational performance significantly improved, driven by the successful commissioning of the Sutara mine, which boosted production and sales volumes and reduced cash costs through higher quality ore and technical enhancements Production and Sales Volume | Indicator | H1 2025 (Thousand tonnes) | H1 2024 (Thousand tonnes) | Change (%) | | :--- | :--- | :--- | :--- | | Production Volume | 1,423 | 1,132 | 25.7% | | Sales Volume | 1,419 | 1,119 | 26.9% | - The successful mining operations at the Sutara mine brought a significant change, with a notable improvement in ore quality, enabling K&S to increase production[5](index=5&type=chunk) - External market conditions, including falling iron ore prices and ruble appreciation, offset some benefits from increased sales volume and led to a non-cash impairment charge for K&S assets[5](index=5&type=chunk) [Consolidated Performance Overview](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A7%88) The Group achieved significant increases in iron concentrate production and sales volumes in H1 2025, yet reported a substantial net loss primarily due to asset impairment [Key Operating Data](index=2&type=section&id=%E4%B8%BB%E8%A6%81%E7%87%9F%E9%81%8B%E6%95%B8%E6%93%9A) In H1 2025, iron concentrate production and sales volumes significantly increased to **1,422,870 tonnes** and **1,419,367 tonnes**, respectively; despite a **13.9% drop** in the Platts 65% Fe iron ore average price, cash cost per tonne (including delivery to customers) decreased by **20.5%** to **US$77.4** Key Operating Metrics | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Iron Concentrate Production & Sales Volume (tonnes) | | | | | - Production Volume | 1,422,870 | 1,132,201 | 25.7% | | - Sales Volume | 1,419,367 | 1,118,750 | 26.9% | | Realized Selling Price (USD/tonne) | | | | | - Based on wet metric tonne | 86.5 | 100.0 | (13.5%) | | - Based on dry metric tonne | 93.2 | 107.5 | (13.3%) | | Platts 65% Fe Iron Ore Average Price | 112.5 | 130.7 | (13.9%) | | Cash Cost (USD/tonne) | | | | | - Excluding delivery to customers (wet metric tonne) | 59.9 | 81.9 | (26.9%) | | - Including delivery to customers (wet metric tonne) | 77.4 | 97.4 | (20.5%) | [Consolidated Income Statement](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8%EF%BC%88%E5%8D%83%E7%BE%8E%E5%85%83%EF%BC%89) The Group's revenue increased by **9.3%** to **US$122,798 thousand** in H1 2025; however, due to a **US$126,882 thousand** impairment loss on K&S assets, loss attributable to owners of the Company significantly expanded to **US$101,968 thousand**, a **670.2% increase** from the prior year Consolidated Income Statement Summary | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 122,798 | 112,329 | 9.3% | | Mine Operating Expenses and Service Costs Before Depreciation | (110,391) | (109,308) | 1.0% | | Adjusted EBITDA – Excluding Non-Recurring Items and FX | 6,691 | (1,735) | (485.6%) | | Impairment Loss | (126,882) | – | N/A | | Loss Attributable to Owners of the Company | (101,968) | (13,239) | 670.2% | - Depreciation expenses significantly increased by **58.7%** to **US$8,956 thousand**, reflecting higher production volumes[7](index=7&type=chunk) - Net finance costs decreased by **32.0%** to **US$2,225 thousand**, primarily due to the voluntary early repayment of MIC loans[7](index=7&type=chunk) [Use of Non-HKFRS Measures](index=3&type=section&id=%E4%BD%BF%E7%94%A8%E9%9D%9E%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F) The Group's adjusted EBITDA and underlying loss showed improvement in H1 2025, reflecting better operational performance despite external market headwinds and non-recurring items [Adjusted EBITDA – Excluding Non-Recurring Items and Foreign Exchange](index=3&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4EBITDA%EF%BC%8D%E4%B8%8D%E5%8C%85%E6%8B%AC%E9%9D%9E%E7%B6%93%E5%B8%B8%E6%80%A7%E9%A0%85%E7%9B%AE%E5%8F%8A%E5%A4%96%E5%8C%AF) The Group recorded a positive adjusted EBITDA of **US$6.7 million** in H1 2025, a significant improvement from **negative US$1.7 million** in the prior year, driven by increased production and sales volumes and reduced production costs, which effectively offset the adverse impacts of weak iron ore prices and ruble appreciation Adjusted EBITDA Reconciliation | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss Before Tax (as reported) | (103,478) | (13,054) | | Impairment Loss | 126,882 | – | | Reversal of Accrued Amounts and EPC Contract-Related Payables | (29,883) | – | | Net Foreign Exchange and Derivative Fair Value Changes | 1,989 | 336 | | Depreciation | 8,956 | 5,645 | | Net Finance Costs | 2,225 | 3,273 | | **Adjusted EBITDA** | **6,691** | **(1,735)** | - Significant increase in production and sales volumes: iron concentrate output of **1,422,870 tonnes** (up **25.7%** YoY) and sales of **1,419,367 tonnes** (up **26.9%** YoY)[10](index=10&type=chunk) - Decreased production costs: cash cost per tonne fell by **20.5%** to **US$77.4**, mainly due to improved Sutara ore quality, lower stripping ratio, and enhanced iron ore recovery[11](index=11&type=chunk) [Adjusted Underlying Performance – Excluding Non-Recurring Items and Foreign Exchange](index=4&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4%E5%9F%BA%E6%9C%AC%E6%A5%AD%E7%B8%BE%EF%BC%8D%E4%B8%8D%E5%8C%85%E6%8B%AC%E9%9D%9E%E7%B6%93%E5%B8%B8%E6%80%A7%E9%A0%85%E7%9B%AE%E5%8F%8A%E5%A4%96%E5%8C%AF) The Group reported an adjusted underlying loss of **US$3.0 million** in H1 2025, an improvement from **US$10.8 million** in the prior year, primarily due to enhanced adjusted EBITDA and the exclusion of non-recurring items such as K&S asset impairment, EPC contract settlement gains, and foreign exchange movements Adjusted Underlying Loss Reconciliation | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (as reported) | (101,968) | (13,239) | | Impairment Loss | 126,882 | – | | Reversal of Accrued Amounts and EPC Contract-Related Payables | (29,883) | – | | Net Foreign Exchange and Derivative Fair Value Changes | 1,989 | 336 | | **Adjusted Underlying Loss** | **(2,980)** | **(10,838)** | - K&S mine impairment loss of **US$120.2 million**, primarily due to increased US dollar-denominated expected operating costs resulting from ruble appreciation[12](index=12&type=chunk) - One-off gain of **US$29.9 million** from the reversal of accrued amounts following the amicable resolution of EPC contract disputes[12](index=12&type=chunk) [Revenue and Cost Analysis](index=5&type=section&id=%E6%94%B6%E7%9B%8A%E8%88%87%E6%88%90%E6%9C%AC%E5%88%86%E6%9E%90) Revenue increased due to higher sales volumes from the Sutara mine, while per-tonne cash costs decreased, though external factors like ruble appreciation and tax hikes exerted cost pressure [Iron Concentrate Production, Sales Volume, and Revenue](index=5&type=section&id=%E9%89%84%E7%B2%BE%E7%A4%A6%E7%94%A2%E9%8A%B7%E9%87%8F%E8%88%87%E6%94%B6%E7%9B%8A) In H1 2025, the Group's iron concentrate production and sales volumes significantly increased to **1,422,870 tonnes** (up **25.7%** YoY) and **1,419,367 tonnes** (up **26.9%** YoY), respectively, driven by improved ore quality and operational efficiency from the Sutara mine's commissioning; despite falling iron ore prices, robust sales volume growth boosted total revenue by **9.3%** to **US$122.8 million** - The Sutara mine, operational since July 2024, provides higher quality ore mined at a lower stripping ratio, significantly boosting K&S production and sales volumes and operational efficiency[14](index=14&type=chunk) - In H1 2025, Sutara mine's output accounted for approximately **88%** of total output, with average plant capacity utilization increasing from **72%** in H1 2024 to **90%**[16](index=16&type=chunk) Revenue Performance | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Platts 65% Fe Iron Ore Average Price (USD/tonne) | 112.5 | 130.7 | -13.9% | | K&S Revenue (Million USD) | 122.8 | 112.3 | 9.3% | [Mine Operating Expenses and Service Costs](index=7&type=section&id=%E7%A4%A6%E5%A0%B4%E7%87%9F%E9%81%8B%E9%96%8B%E6%94%AF%E5%8F%8A%E6%9C%8D%E5%8B%99%E6%88%90%E6%9C%AC) Net cash cost per tonne decreased by **20.5%** to **US$77.4** during the period, primarily due to improved ore quality and a lower stripping ratio from Sutara mine operations, leading to a **47.8% reduction** in mining costs; however, Russian inflation, ruble appreciation, and increased mineral extraction tax rates exerted cost pressure Cash Cost Components (per wet metric tonne) | Cost Component | H1 2025 (USD/tonne) | H1 2024 (USD/tonne) | Change (%) | | :--- | :--- | :--- | :--- | | Mining | 23.9 | 45.8 | -47.8% | | Production Fixed Costs, Mine Management & Related Costs | 14.7 | 11.9 | 23.5% | | Mineral Extraction Tax | 8.1 | 3.8 | 113.2% | | Temporary Export Tax | – | 6.5 | -100.0% | | **Net Cash Cost (Including Delivery to Customers)** | **77.4** | **97.4** | **-20.5%** | - Ruble appreciation (87 rubles per US dollar, down **4.4%** YoY) intensified cost inflation pressure, negatively impacting operating margins[29](index=29&type=chunk) - Increased mineral extraction tax rates in 2025 led to a **113.2% rise** in mineral extraction tax[29](index=29&type=chunk) [Financial Performance Details](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E8%A9%B3%E6%83%85) The Group experienced increased administrative expenses and depreciation, reduced net finance costs, and a significant impairment loss, leading to a substantial net loss for the period [General and Administrative Expenses Before Depreciation](index=9&type=section&id=%E6%8A%98%E8%88%8A%E5%89%8D%E4%B8%80%E8%88%AC%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) General and administrative expenses before depreciation increased by **10.2%** to **US$5.6 million** during the period, primarily due to rising staff costs and administrative expenses driven by inflation General and Administrative Expenses | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | General and Administrative Expenses Before Depreciation | 5.6 | 5.1 | 10.2% | [Depreciation](index=9&type=section&id=%E6%8A%98%E8%88%8A) Depreciation expenses significantly increased by **58.7%** to **US$9.0 million** during the period, consistent with the substantial increase in production volume, as the economic benefits of some fixed assets are consumed in line with production levels Depreciation Expenses | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation Expenses | 9.0 | 5.6 | 58.7% | [Net Finance Costs](index=9&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC%E6%B7%A8%E9%A1%8D) Net finance costs decreased by **32.0%** to **US$2.2 million**, primarily due to the voluntary early repayment of **US$12.0 million** in MIC loan principal, alongside scheduled repayments of **US$4.8 million** Net Finance Costs | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Finance Costs | 2.2 | 3.3 | -32.0% | - MIC agreed to extend the principal installment repayment deadline, originally due on June 20, 2025, to October 20, 2025[36](index=36&type=chunk) [Impairment Loss](index=9&type=section&id=%E6%B8%9B%E5%80%BC%E8%99%A7%E6%90%8D) An impairment loss of **US$120.2 million** related to the K&S mine was recorded during the period, primarily due to increased projected operating costs from ruble appreciation; additionally, Bolshoi Seym exploration and evaluation assets were fully impaired by **US$6.7 million** due to license issues Impairment Loss Breakdown | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | | :--- | :--- | :--- | | K&S Mine Impairment Loss | 120.2 | – | | Bolshoi Seym Asset Impairment | 6.7 | – | [Loss Attributable to Owners of the Company](index=9&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%8B%A5%E6%9C%89%E4%BA%BA%E6%87%89%E5%8D%A0%E8%99%A7%E6%90%8D) The Group recorded a loss of **US$102.0 million** in H1 2025, a significant increase from **US$13.2 million** in the prior year, primarily due to a **US$126.9 million** impairment loss, partially offset by a **US$29.9 million** gain from the reversal of EPC contract-related amounts Loss Attributable to Owners of the Company | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | 102.0 | 13.2 | 670.2% | [Cash Flow and Financial Resources](index=10&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%88%87%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) Operating cash flow was positive, but significant loan repayments and capital expenditures led to a net decrease in cash and deposits, while total borrowings decreased and a share consolidation was implemented [Cash Flow Statement](index=10&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash generated from operating activities was **US$86 thousand** during the period, primarily due to increased sales volume and reduced cash costs; however, net cash and cash equivalents decreased by **US$30.852 million** due to significantly higher loan repayments and capital expenditures for Sutara mine development Cash Flow Summary | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash From/(Used in) Operating Activities | 86 | (1,168) | N/A | | Loan Repayments | (16,809) | (4,457) | 277.1% | | Capital Expenditures | (12,376) | (9,459) | 30.8% | | Cash and Bank Balances at Period-End | 29,882 | 39,362 | -24.1% | - Loan repayments increased by **277.1%**, primarily due to the voluntary early repayment of **US$12.0 million** in MIC loan principal[43](index=43&type=chunk) - Capital expenditures increased by **30.8%**, mainly for the development of the Sutara mine[43](index=43&type=chunk) [Liquidity, Financial and Capital Resources](index=10&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's cash and deposits decreased to **US$29.9 million**, primarily due to MIC loan repayments and Sutara mine capital expenditures; total borrowings decreased, and the gearing ratio fell to **13.3%**, with the company having implemented a share consolidation and continuing to monitor exchange rate fluctuation risks - As of June 30, 2025, cash and deposits decreased to **US$29.9 million** (December 31, 2024: **US$60.7 million**)[45](index=45&type=chunk) Financial Resources Summary | Indicator | June 30, 2025 (Million USD) | Dec 31, 2024 (Million USD) | | :--- | :--- | :--- | | Total Liabilities to MIC | 28.1 | 44.9 | | Gearing Ratio | 13.3% | 14.2% | - Share consolidation became effective on June 27, 2025, merging every ten issued shares into one ordinary share[44](index=44&type=chunk) - The Group had no currency hedging positions as of June 30, 2025, but will consider entering into foreign exchange hedging contracts under favorable conditions[53](index=53&type=chunk) [Exploration, Development and Mining Production Activities](index=11&type=section&id=%E5%8B%98%E6%8E%A2%E3%80%81%E9%96%8B%E7%99%BC%E5%8F%8A%E6%8E%A1%E7%A4%A6%E7%94%A2%E7%94%A2%E6%B4%BB%E5%8B%95) Development and mining production activities generated **US$122.7 million** during the period, with K&S development accounting for **US$122.1 million**; capital expenditures increased to **US$12.4 million**, primarily for Sutara mine development and the purchase of property, plant, and equipment Development and Mining Production Activities | Project | H1 2025 (Million USD) | H1 2024 (Million USD) | | :--- | :--- | :--- | | K&S Development (Operating Expenses) | 109.8 | 108.9 | | K&S Development (Capital Expenditures) | 12.3 | 9.4 | | **Total** | **122.7** | **118.3** | - No significant exploration activities occurred during the period, with focus remaining on K&S mine development and production[46](index=46&type=chunk) [Employees and Remuneration Policy](index=13&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group's employee count increased to **1,616**; total staff costs rose to **US$23.3 million**, primarily due to the strengthening ruble exchange rate and labor shortages driving up labor costs Employee Statistics and Costs | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 1,616 | 1,579 | | Total Staff Costs (Million USD) | 23.3 | 17.4 | [Chairman's Report](index=14&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E6%9B%B8) The Chairman highlights Sutara mine's strategic success in boosting operational performance, while acknowledging external market challenges and outlining future efficiency and cost control initiatives [Strategic Progress](index=14&type=section&id=%E7%AD%96%E7%95%A5%E6%80%A7%E9%80%B2%E5%B1%95) The successful commissioning of the Sutara mine marks a strategic turning point for the Group, addressing the limitations of declining grades at the Kimkan mine and significantly enhancing K&S's production and sales volumes and competitive position, validating the company's capability to execute complex mining projects - The Sutara mine provides higher quality ore, leading to **25.7%** and **26.9%** growth in K&S production and sales volumes, respectively[57](index=57&type=chunk) - Sutara's commissioning lays the groundwork for future expansion, including the deployment of the company's own mining fleet in H2 2025[58](index=58&type=chunk) [Financial Performance Overview](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E6%A6%82%E8%A7%88) Despite significant operational advancements, external market conditions, including a **13.9% decline** in iron ore prices and substantial ruble appreciation, adversely impacted financial performance, limiting revenue growth to **9.3%** and resulting in a modest improvement in adjusted EBITDA to **US$6.7 million** - Falling iron ore prices were primarily due to weakened demand from China's real estate crisis, market oversupply, and adverse macroeconomic factors[60](index=60&type=chunk) - Significant ruble strengthening led to a substantial increase in US dollar-equivalent operating costs, particularly in Q2 2025[60](index=60&type=chunk) [Non-Recurring Items and Underlying Performance](index=15&type=section&id=%E9%9D%9E%E7%B6%93%E5%B8%B8%E6%80%A7%E9%A0%85%E7%9B%AE%E5%8F%8A%E5%9F%BA%E6%9C%AC%E6%A5%AD%E7%B8%BE) A net loss of **US$102.0 million** was recorded during the period, but after excluding non-cash non-recurring items, including a **US$29.9 million** EPC contractor settlement gain, a **US$120.2 million** K&S asset impairment, and a **US$6.7 million** Bolshoi Seym provision, the underlying loss was **US$3.0 million**, an improvement from the prior year Non-Recurring Items | Non-Recurring Item | Amount (Million USD) | | :--- | :--- | | Engineering, Procurement, and Construction Contractor Settlement Gain | 29.9 | | K&S Asset Impairment Provision | 120.2 | | Bolshoi Seym Provision | 6.7 | - The adjusted underlying loss of **US$3.0 million** more accurately reflects the Group's operational performance and cash-generating capability[62](index=62&type=chunk) [Operational Enhancements](index=15&type=section&id=%E7%87%9F%E9%81%8B%E6%8F%90%E5%8D%87) The Group continues to seek operational efficiency improvements, planning to construct a crushing and screening plant at Sutara to reduce transportation costs by approximately **20%** and strategically transitioning mining operations to in-house management for enhanced control and cost-effectiveness - A crushing and screening plant will be constructed at the Sutara mine, expected to reduce transportation volume and costs by approximately **20%**[64](index=64&type=chunk) - Plans are underway to transition mining operations to in-house management by acquiring owned mining equipment, aiming to enhance operational control and cost-effectiveness[64](index=64&type=chunk) [Addressing Market Challenges and Future Outlook](index=16&type=section&id=%E6%87%89%E5%B0%8D%E5%B8%82%E5%A0%B4%E6%8C%91%E6%88%B0%E5%8F%8A%E6%9C%AA%E4%BE%86%E5%89%8D%E6%99%AF) Facing uncertain iron ore market demand, oversupply, and cost pressures from ruble appreciation, the Group will continue to focus on enhancing operational efficiency, maintaining financial flexibility and liquidity, and preparing for market recovery, with Sutara's quality improvements expected to yield more significant benefits - The iron ore market faces weakened demand from China's real estate sector, market oversupply, and the ongoing impact of ruble appreciation on the cost base[65](index=65&type=chunk) - Future strategic focus is on controlling controllable factors: enhancing operational efficiency, maintaining financial flexibility and liquidity, and preparing to capitalize on market recovery[65](index=65&type=chunk) [Interim Financial Report](index=17&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A) The interim financial report details a significant loss for the period, primarily driven by impairment losses, alongside a substantial decrease in total assets and equity [Condensed Consolidated Statement of Profit or Loss](index=17&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The Group's revenue for H1 2025 was **US$122,798 thousand**, but due to an impairment loss of **US$126,882 thousand**, the loss for the period expanded to **US$101,976 thousand**, with loss attributable to owners of the Company being **US$101,968 thousand** Condensed Consolidated Statement of Profit or Loss | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Revenue | 122,798 | 112,329 | | Operating Expenses (Excluding Depreciation) | (115,977) | (114,375) | | Impairment Loss | (126,882) | – | | Other Income, Gains and Losses | 28,016 | (1,248) | | Loss for the Period | (101,976) | (13,226) | | Loss Attributable to Owners of the Company | (101,968) | (13,239) | | Basic Loss Per Share (US cents) | (7.98) | (1.53) | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=18&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The loss for the period was **US$101,976 thousand**, which, combined with other comprehensive income of **US$1,097 thousand** (primarily from exchange differences on translating foreign operations), resulted in a total comprehensive expense for the period of **US$100,879 thousand** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss for the Period | (101,976) | (13,226) | | Exchange Differences on Translating Foreign Operations | 1,097 | 294 | | Other Comprehensive Income for the Period, Net of Tax | 1,097 | 1,389 | | Total Comprehensive Expense for the Period | (100,879) | (11,837) | [Condensed Consolidated Statement of Financial Position](index=19&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets significantly decreased to **US$277,241 thousand** from **US$445,835 thousand** on December 31, 2024, with non-current assets primarily reduced by impairment of property, plant, and equipment; equity attributable to owners of the Company decreased to **US$215,076 thousand** Condensed Consolidated Statement of Financial Position Summary | Indicator | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Total Non-Current Assets | 154,362 | 290,657 | | Total Current Assets | 122,879 | 155,178 | | Total Assets | 277,241 | 445,835 | | Equity Attributable to Owners of the Company | 215,076 | 316,144 | | Total Liabilities | 62,731 | 130,446 | - Property, plant and equipment decreased from **US$269,871 thousand** to **US$136,414 thousand**, primarily due to impairment losses[71](index=71&type=chunk) - Total current liabilities decreased from **US$98,003 thousand** to **US$53,332 thousand**, mainly due to reductions in trade and other payables and borrowings[72](index=72&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=21&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, equity attributable to owners of the Company decreased from **US$316,144 thousand** at the beginning of the period to **US$215,076 thousand**, primarily due to a loss for the period of **US$101,968 thousand** Condensed Consolidated Statement of Changes in Equity | Indicator | Jan 1, 2025 (Thousand USD) | June 30, 2025 (Thousand USD) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 316,144 | 215,076 | | Loss for the Period | – | (101,968) | | Other Comprehensive Income | – | 900 | | Total Comprehensive Income/(Expense) for the Period | – | (101,068) | [Condensed Consolidated Statement of Cash Flows](index=22&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash used in operating activities was **US$92 thousand** during the period; net cash used in investing activities was **US$12,737 thousand**, primarily for the purchase of property, plant, and equipment and exploration and evaluation assets; net cash used in financing activities was **US$18,760 thousand**, mainly for loan repayments, resulting in a net decrease in cash and cash equivalents of **US$31,589 thousand** for the period Condensed Consolidated Statement of Cash Flows | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (92) | (1,395) | | Net Cash Used in Investing Activities | (12,737) | (8,608) | | Net Cash Used in Financing Activities | (18,760) | (6,485) | | Net Decrease in Cash and Cash Equivalents for the Period | (31,589) | (16,488) | | Cash and Cash Equivalents at Period-End | 29,149 | 38,890 | - Expenditure on the purchase of property, plant and equipment and exploration and evaluation assets was **US$12,376 thousand**, an increase from the prior year[75](index=75&type=chunk) - Loan repayments of **US$16,809 thousand** were significantly higher than **US$4,457 thousand** in the prior year[75](index=75&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=23&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) These notes detail the basis of financial statement preparation, impact of new accounting standards, revenue breakdown, segment performance, operating expenses, impairment, and other financial disclosures [Basis of Preparation](index=23&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These condensed consolidated financial statements are prepared in accordance with HKAS 34 and the HKEX Listing Rules; the company continuously assesses the impact of UK, EU, and US sanctions, currently deeming no significant direct impact, but supply chain disruption risks require close monitoring - The Group's major suppliers and customers are located in Mainland China and Russia[77](index=77&type=chunk) - Current assessment indicates no significant direct impact of sanctions on the Group or its operations, but supply chain disruption risks could affect K&S operations and Sutara mine development[77](index=77&type=chunk) [New and Revised HKFRS Accounting Standards](index=24&type=section&id=%E6%96%B0%E8%A8%82%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%88%99%E6%9C%83%E8%A8%88%E6%BA%96%E5%88%99) The Group first applied the amendments to HKAS 21 'Lack of Exchangeability' from January 1, 2025, without changes to accounting policies or retrospective adjustments; HKFRS 18, effective January 1, 2027, will significantly impact financial statement presentation - HKFRS 18 will introduce significant changes, including profit or loss statement structure, disclosure of management-defined performance measures, and aggregation and disaggregation requirements[79](index=79&type=chunk) [Revenue](index=24&type=section&id=%E6%94%B6%E7%9B%8A) The Group's primary revenue source is the sale of iron concentrate from the K&S mine; total revenue for H1 2025 was **US$122,798 thousand**, with **US$118,673 thousand** from Chinese customers and **US$77 thousand** from engineering services Revenue by Geographical Market | Geographical Market | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | People's Republic of China | 118,673 | 107,914 | | Russia | 4,125 | 4,415 | | **Total Revenue from External Customers** | **122,798** | **112,329** | - The vast majority of revenue (**US$122,721 thousand**) is derived from products transferred at a point in time (iron concentrate sales)[82](index=82&type=chunk) [Segment Information](index=25&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The operating mines segment (K&S) generated **US$122,721 thousand** in revenue during the period but incurred a segment loss of **US$116,198 thousand** due to impairment losses; mines under development, engineering, and other segments contributed insignificantly to total revenue and all recorded losses Segment Performance | Segment | H1 2025 Revenue (Thousand USD) | H1 2025 Segment Loss (Thousand USD) | | :--- | :--- | :--- | | Operating Mines | 122,721 | (116,198) | | Mines Under Development | – | (6,714) | | Engineering | 77 | (444) | | Other | – | (10) | | **Total** | **122,798** | **(123,366)** | [Operating Expenses (Including Depreciation)](index=26&type=section&id=%E7%87%9F%E9%81%8B%E9%96%8B%E6%94%AF%EF%BC%88%E5%8C%85%E6%8B%AC%E6%8A%98%E8%88%8A%EF%BC%89) Total operating expenses (including depreciation) for the period were **US$124,933 thousand**, an increase from the prior year, with significant changes observed in subcontracted mining costs, transportation and freight costs, staff costs, and mineral extraction tax Operating Expenses Breakdown | Operating Expense Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Subcontracted Mining Costs and Engineering Services | 35,192 | 37,076 | | Transportation and Freight Costs | 24,657 | 17,163 | | Staff Costs (Mine Operations) | 19,202 | 14,044 | | Mineral Extraction Tax | 11,513 | 4,266 | | Depreciation (Mine Operations) | 8,891 | 5,533 | | Temporary Export Tax | – | 7,267 | | **Total** | **124,933** | **120,020** | - Mineral extraction tax significantly increased by **US$11,513 thousand**, while temporary export tax decreased to zero due to policy changes[84](index=84&type=chunk) [Impairment Loss](index=27&type=section&id=%E6%B8%9B%E5%80%BC%E8%99%A7%E6%90%8D) An impairment loss of **US$120.2 million** was recognized for the K&S project during the period, primarily due to increased cost base from ruble appreciation, Russian inflation, and higher mineral extraction tax rates; additionally, Bolshoi Seym exploration and evaluation assets were fully impaired by **US$6.651 million** due to license revocation - K&S project impairment loss is primarily based on value-in-use calculations, with key assumptions including future cash flows, mine life, iron ore prices, production costs, and discount rates[85](index=85&type=chunk) Key Assumptions for Impairment Calculation | Key Assumption | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Average Annual Production Volume (Thousand wet tonnes) | 2,979 | 2,977 | | Platts 65% Fe Iron Ore Price (USD/dry tonne) | H2 2025: 104.3 | 2025: 112.6 | | Russian Ruble Exchange Rate (per US dollar) | H2 2025: 89 | 2025: 103 | | Nominal Pre-Tax Discount Rate | 12.39% | 13.31% | - The decrease in discount rate was mainly due to lower risk-free rates and a reduction in deleveraged beta for peers, partially offset by increased country risk premiums for Russia and China[87](index=87&type=chunk) [Other Income, Gains and Losses](index=30&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E3%80%81%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) Net other income, gains, and losses for the period amounted to **US$28,016 thousand**, primarily comprising a **US$29,883 thousand** gain from the reversal of accrued amounts and EPC contract-related payables, offsetting a net foreign exchange loss of **US$1,989 thousand** Other Income, Gains and Losses | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss/(Gain) on Disposal of Property, Plant and Equipment | (455) | 11 | | Net Foreign Exchange Loss | (1,989) | (935) | | Reversal of Accrued Amounts and EPC Contract-Related Payables | 29,883 | – | | **Total** | **28,016** | **(1,248)** | [Finance Costs](index=30&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Total finance costs for the period were **US$2,444 thousand**, a decrease from **US$4,115 thousand** in the prior year, primarily due to reduced interest expenses on borrowings Finance Costs Breakdown | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Interest Expense on Borrowings | 2,307 | 3,918 | | Interest Expense on Lease Liabilities | 4 | 2 | | Discount Reversal on Environmental Provisions | 133 | 195 | | **Total** | **2,444** | **4,115** | [Income Tax Credit/(Expense)](index=31&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D%E3%83%BB%EF%BC%88%E9%96%8B%E6%94%AF%EF%BC%89) An income tax credit of **US$1,502 thousand** was recorded during the period, primarily related to an increase in deferred tax; the Russian corporate tax rate increased from **20%** to **25%**, but the K&S project still benefits from preferential tax rates Income Tax Credit/(Expense) | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Current Income Tax (Russian Corporate Tax) | 30 | (227) | | Deferred Tax | 1,472 | 55 | | **Total** | **1,502** | **(172)** | - The K&S project was exempt from Russian corporate tax from 2017-2021, then taxed at a reduced rate of **10%** for the subsequent five years, before increasing to **25%**[91](index=91&type=chunk) [Loss Per Share](index=32&type=section&id=%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) Basic and diluted loss per share attributable to owners of the Company was **7.98 US cents**, a significant increase from **1.53 US cents** in the prior year, primarily reflecting the expanded loss for the period; the weighted average number of shares has been adjusted for the rights issue and share consolidation Loss Per Share | Indicator | H1 2025 (US cents) | H1 2024 (US cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (7.98) | (1.53) | | Diluted Loss Per Share | (7.98) | (1.53) | - Share consolidation became effective on June 27, 2025, merging every ten issued ordinary shares into one ordinary share[94](index=94&type=chunk) [Trade and Other Receivables](index=33&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables amounted to **US$43,098 thousand**, a decrease from **US$46,869 thousand** on December 31, 2024; trade receivables are primarily measured at fair value through profit or loss Trade and Other Receivables | Item | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Trade Receivables | 22,797 | 30,681 | | Recoverable VAT | 12,540 | 10,195 | | Prepayments to Suppliers | 7,221 | 5,354 | | **Total** | **43,098** | **46,869** | Aging Analysis of Trade Receivables | Trade Receivables Aging | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Less than one month | 12,299 | 21,141 | | One to three months | 18,382 | 9,539 | | Over three months to six months | 1 | 1 | | Over six months | – | – | | **Total** | **22,797** | **30,681** | [Trade and Other Payables](index=34&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables significantly decreased to **US$28,119 thousand** from **US$78,510 thousand** on December 31, 2024, primarily due to the derecognition of related construction costs payable and accrued amounts following the resolution of disputes with EPC contractors Trade and Other Payables | Item | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Trade Payables | 11,422 | 12,108 | | Customer Advances | 557 | 7,040 | | Construction Costs Payable | – | 22,694 | | Accrued Amounts and Other Payables | 16,059 | 36,528 | | **Total** | **28,119** | **78,510** | - Disputes with EPC contractors have been fully resolved, leading to the derecognition of **US$22.7 million** in construction costs payable and **US$23.7 million** in other accrued costs[102](index=102&type=chunk) [Borrowings](index=35&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total borrowings significantly decreased to **US$28,425 thousand** from **US$44,754 thousand** on December 31, 2024, primarily due to the voluntary early repayment of MIC loans; MIC has agreed to extend the repayment deadline for certain installments Borrowings | Item | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Other Loans | 28,425 | 44,754 | | **Total Borrowings** | **28,425** | **44,754** | - Borrowings are secured by property, plant and equipment, 100% equity interest in LLC KS GOK, and rights to certain bank accounts[106](index=106&type=chunk) - MIC has terminated the net debt/EBITDA ratio and debt service coverage ratio covenant requirements for Q2 and Q4 2024, and Q2 2025[109](index=109&type=chunk) - MIC agreed to extend the repayment deadline for the installment originally due on June 20, 2025, to October 20, 2025[110](index=110&type=chunk) [Share Capital](index=38&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's share capital was **US$1,350,734 thousand**; a share consolidation, effective June 27, 2025, merged every ten issued ordinary shares into one, reducing the number of issued shares Share Capital Movement | Indicator | Number of Shares (Thousand shares) | Amount (Thousand USD) | | :--- | :--- | :--- | | Dec 31, 2024 and Jan 1, 2025 | 12,779,485,885 | 1,350,734 | | Share Consolidation | (11,501,537,297) | – | | **June 30, 2025** | **1,277,948,588** | **1,350,734** | - A rights issue completed on December 13, 2024, raised net proceeds of approximately **US$46.3 million** and issued **4,259,828,628** rights shares[113](index=113&type=chunk) [Related Party Disclosures](index=39&type=section&id=%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E6%8A%AB%E9%9C%B2) MIC Invest LLC ceased to be a principal shareholder of the Company from February 22, 2024; total key management personnel remuneration for the period was **US$2,582 thousand**, an increase from the prior year Key Management Personnel Remuneration | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Key Management Personnel Remuneration | 2,582 | 2,296 | | - Short-term Benefits | 2,253 | 1,983 | | - Post-employment Benefits | 329 | 313 | [Events After the Reporting Period](index=39&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) On July 28, 2025, the Group agreed to dispose of its **46% equity interest** in Heilongjiang Jianlong Vanadium Co., Ltd. (a joint venture) for RMB **32.2 million** (approximately **US$4.5 million**); upon completion, the Group will no longer hold any equity interest in the joint venture - Following the disposal of the joint venture equity, the Group will no longer own the steel slag reprocessing plant project[117](index=117&type=chunk) [Project Review](index=40&type=section&id=%E9%A0%85%E7%9B%AE%E5%9B%9E%E9%A1%A7) The K&S project, driven by Sutara, showed strong operational improvements and extended mine life, while other projects are being reviewed or disposed of, with ongoing assessment of sanctions' impact [K&S Project](index=40&type=section&id=K%26S%E9%A0%85%E7%9B%AE) Driven by the Sutara mine, the K&S project demonstrated strong operational performance in H1 2025, with commercial concentrate production growing by **25.7%** and capacity utilization significantly increasing to **90%**; Sutara's high-quality ore reduced mining costs and extended mine life, with plans to acquire owned mining equipment for enhanced efficiency K&S Project Overview | Indicator | Data | | :--- | :--- | | Capacity | 3.2 Million tonnes/year (iron concentrate) | | Ore Processing Capacity | 10 Million tonnes/year | | Distance to China Border | 240 km | | Total Resources | 557 Million tonnes | | Total Reserves | 313 Million tonnes | | Mine Life | 30 years+ | | Iron Grade (Concentrate) | 65% | - Commercial concentrate production in H1 2025 was **1,422,870 tonnes**, a **25.7% increase** YoY[122](index=122&type=chunk) - Capacity utilization increased from **72%** in H1 2024 to **90%** in H1 2025[122](index=122&type=chunk) - Sutara mine's high-quality ore and reduced stripping ratio led to a **20.5% decrease** in total unit cash cost per wet tonne to **US$77.4**[127](index=127&type=chunk)[130](index=130&type=chunk) - K&S plans to purchase and lease its own mining equipment by the end of 2025 to replace some existing mining contractors[128](index=128&type=chunk) [Garinskoye Project](index=42&type=section&id=Garinskoye%E9%A0%85%E7%9B%AE) The Garinskoye project, a **99.6%** owned advanced exploration project, holds potential for low-cost DSO (Direct Shipping Ore) operations and conversion into a large open-pit mine; the company is reviewing options to advance the project, including railway connection construction or DSO operation Garinskoye Project Overview | Indicator | Data | | :--- | :--- | | Iron Grade | 68% | | Iron Capacity | 4.6 Million tonnes/year | | Total Resources | 260 Million tonnes | | Total Reserves | 26 Million tonnes | | Mine Life | 20 years+ | - The DSO option could achieve an annual production of **1.9 million tonnes** with a **55%** Fe concentrate grade and an **8-year** mine life, with an option to add a wet magnetic separation stage to produce **68%** high-grade 'super concentrate'[135](index=135&type=chunk) [Other Projects](index=43&type=section&id=%E5%85%B6%E4%BB%96%E9%A0%85%E7%9B%AE) The Group's other projects include a steel slag reprocessing plant (with **46%** equity sold after the reporting period) and Giproruda, a mining consulting firm; the steel slag reprocessing plant did not significantly contribute to performance Other Projects Summary | Project | Product/Service | Location | Equity | | :--- | :--- | :--- | :--- | | Steel Slag Reprocessing Plant | Vanadium Pentoxide | Heilongjiang, China | 46% (Agreed to dispose) | | Giproruda | Mining Technology Research | St. Petersburg, Russia | 70% | - The Group has agreed to dispose of its **46%** equity interest in the steel slag reprocessing plant, and upon completion, will no longer hold any equity[137](index=137&type=chunk) [Impact of Sanctions on Russia](index=43&type=section&id=%E5%B0%8D%E4%BF%84%E7%BE%85%E6%96%AF%E5%88%B6%E8%A3%81%E7%9A%84%E5%BD%B1%E9%9F%BF) The Company continuously assesses the potential impact of UK, EU, and US sanctions; current assessment indicates no significant direct impact on the Group or its operations, but geopolitical developments could lead to supply chain disruptions affecting K&S operations and Sutara mine development - The Group's operations and business in Russia and other regions continue as usual[139](index=139&type=chunk) - Supply chain disruption risks could affect K&S operations, mining equipment procurement, and Sutara mine development[139](index=139&type=chunk) [Corporate Governance and Other Information](index=44&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The Company maintains strong corporate governance, with no significant listed securities transactions, contingent liabilities, or material investments/disposals during the period [Purchase, Sale or Redemption of the Company's Listed Securities](index=44&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025 [Contingent Liabilities](index=44&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities [Material Investments and Acquisitions/Disposals](index=44&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E6%94%B6%E8%B3%BC%E5%87%BA%E5%94%AE) The Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period; apart from Sutara mine development, there are no other significant investment or capital asset plans for H2 2025 as of the reporting date [Corporate Governance](index=44&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company's management and Board are committed to maintaining good corporate governance and have complied with the code provisions of Appendix C1 of the Listing Rules; the Audit Committee has reviewed and discussed the unaudited interim results for the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[146](index=146&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim results for the period[147](index=147&type=chunk) [Publication of Interim Results and Interim Report](index=45&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company; the Company will provide shareholders with the interim report for the six months ended June 30, 2025, in due course

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全部或任何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責 任。 Clover Biopharmaceuticals, Ltd. 三葉草生物製藥有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：2197） 截 至2025年6月30日止六個月 中期業績公告 董事會欣然公佈本集團截至2025年6月30日止六個月的未經審核簡明綜合業績， 連 同2024年 同 期 的 比 較 數 字。該 等 中 期 業 績 已 由 審 核 委 員 會 審 閱。 於 本 公 告 內，「我 們」指 本 公 司，及 倘 文 義 另 有 所 指，本 集 團。本 公 告 所 載 的 若 干 金 額 及 百 分 比 數 字 已 作 四 捨 五 入 調 整，或 已 四 捨 五 入 至 小 數 點 後 一 位 或 兩 位。本 公 告 任 何 表 格、圖 表 或 其 他 地 方 所 示 總 額 與 所 列 數 額 總 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 （於開曼群島註冊成立的有限公司） （股份代號：1109） 二 零 二 五 年 中 期 業 績 公 告 摘 要 – 1 – • 董 事 會 決 議 宣 派 二 零 二 五 年 中 期 股 息 每 股 人 民 幣0.20元（折 合 每 股 港 幣0.219元），與 二 零 二 四 年 中 期 股 息 每 股 人 民 幣0.20元 持 平。 • 二 零 二 五 年 上 半 年，本 集 團 實 現 物 業 簽 約 銷 售 額 人 民 幣1,103.0億 元， 實 現 簽 約 面 積412萬 平 方 米。截 至 二 零 二 五 年 六 月 三 十 日，本 集 團 已 銷售尚未結算的簽約額約為人民幣2,513.7億元，預計其中人民幣1 ...

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) This section provides a supplemental disclosure to JX Energy Ltd.'s 2024 annual report, focusing on continuing connected transactions - This announcement is a supplemental disclosure to the annual report of JX Energy Ltd. for the year ended December 31, 2024[2](index=2&type=chunk)[3](index=3&type=chunk) - The primary purpose is to provide supplementary disclosure regarding "Continuing Connected Transactions" in the 2024 Annual Report, in accordance with Listing Rule 14A.71[3](index=3&type=chunk)[4](index=4&type=chunk) [Details of Continuing Connected Transactions](index=1&type=section&id=Details%20of%20Continuing%20Connected%20Transactions) This section outlines specific agreements, associated fees, and the relationship with the connected party, along with the auditor's opinion [Gas Processing Agreement](index=2&type=section&id=Gas%20Processing%20Agreement) JX Energy Ltd. entered into a gas processing agreement with JX Energy (Canada) Ltd. on May 9, 2019, for the transportation of gas from the Voyager area using JX Energy's gathering system, with the agreement term extending to December 31, 2044, detailing estimated monthly processing fees and actual 2024 expenses - The agreement was signed on May 9, 2019, effective until December 31, 2044, with company responsibility commencing upon Voyager's operational start on June 29, 2020[5](index=5&type=chunk) Estimated Monthly Gas Processing Fees | Period | Monthly Processing Fee (CAD) | Monthly Processing Fee (HKD) | | :--- | :--- | :--- | | January 1, 2024 to December 31, 2024 | 648,000 | 3,700,000 | | January 1, 2025 to December 31, 2025 | 764,000 | 4,370,000 | | January 1, 2026 to December 31, 2026 | 912,000 | 5,200,000 | | January 1, 2027 to December 31, 2044 | 433,000 | 2,500,000 | 2024 Gas Processing Agreement Fees | Fee Type | Amount (CAD) | | :--- | :--- | | Fixed Processing Fee | 6,012,396 | | Variable Operating Costs | 70,514 | | **Total** | **6,082,910** | [Voyager Compression Agreement](index=2&type=section&id=Voyager%20Compression%20Agreement) JX Energy Ltd. entered into a Voyager compression agreement with JX Energy (Canada) Ltd. on November 1, 2019, for the transportation of natural gas and related products to the Alberta natural gas pipeline system using JX Energy's compression station and well batteries, with the agreement term extending to December 31, 2026, and a fixed monthly processing fee of CAD 146,000, along with actual 2024 expenses - The agreement was signed on November 1, 2019, effective until December 31, 2026, with company responsibility commencing upon Voyager's operational start on June 29, 2020[5](index=5&type=chunk) - The total monthly processing fee is **CAD 146,000** (equivalent to **HKD 835,120**)[5](index=5&type=chunk) 2024 Voyager Compression Agreement Fees | Fee Type | Amount (CAD) | | :--- | :--- | | Fixed Processing Fee | 1,752,000 | | Variable Operating Costs | 144,962 | | **Total** | **1,896,962** | [Relationship with Connected Person](index=2&type=section&id=Relationship%20with%20Connected%20Person) JX Energy (Canada) Ltd. is a Canadian private company controlled by Mr. Liu Yongtan, a director and Chairman of the Board of JX Energy Ltd., clarifying the connected nature of the aforementioned transactions - JX Energy (Canada) Ltd. is controlled by Mr. Liu Yongtan, who was appointed as a Director and Chairman of the Board of JX Energy Ltd. on December 18, 2019[6](index=6&type=chunk) [Auditor's Opinion](index=3&type=section&id=Auditor%27s%20Opinion) The company's auditor has confirmed to the Board that they are unaware of any matters suggesting the continuing connected transactions were not approved by the Board, did not comply with the company's pricing policy, or were not conducted in accordance with the connected transaction agreements - The auditor confirmed that the continuing connected transactions were approved by the Board[8](index=8&type=chunk) - The auditor confirmed that the transactions complied in all material respects with the company's pricing policy[8](index=8&type=chunk) - The auditor confirmed that the transactions were conducted in all material respects in accordance with the connected transaction agreements[8](index=8&type=chunk) [Other Important Disclosures](index=3&type=section&id=Other%20Important%20Disclosures) This section confirms the unchanged status of other annual report information and lists the current composition of the Board of Directors - The information in this supplemental announcement does not affect other information contained in the 2024 Annual Report, with all other information remaining unchanged except as disclosed[8](index=8&type=chunk) - As of the announcement date, the Board of Directors comprises two executive directors (Mr. Liu Yongtan, Mr. Dai Binyou) and three independent non-executive directors (Mr. Kong Zhanpeng, Ms. Du Jiewen, Ms. Wei Jia)[9](index=9&type=chunk) - The exchange rate of **CAD 1.00 to HKD 5.72** is provided in the announcement for illustrative purposes only[9](index=9&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：603） * 截至二零二五年六月三十日止六個月之中期業績 中期業績 中油燃氣集團有限公司（「公司」）董事（「董事」）局（「董事局」）宣佈公司及其附 屬公司（統稱「集團」）截至二零二五年六月三十日止六個月（「期內」）之未經審 核簡明綜合中期業績。 期內之未經審核簡明綜合財務資料未經審核，但經由公司審核委員會（「審核 委員會」）審閱。 數據摘要 – 1 – ‧ 整體毛利率與去年同期相比維持12%； ‧ 期內溢利率為7%，與去年同期相比上升1%；及 ‧ 新增居民用戶31,062戶及工商業用戶541戶。 簡明綜合全面收益表 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 | | | 附註 | 千港元 | 千港元 | | | | （未經審核） | （ ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告 全部或任何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責 任。 CHINA SILVER GROUP LIMITED 中國白銀集團有限公 司 （於開曼群島註冊成立的有限公司） （股份代號：815） 截至二零二五年六月三十日止六個月之 中期業績公告 二零二五年中期業績摘要 本集團二零二五年上半年的收入為約人民幣2,329.7百萬元（二零二四年上半 年：人民幣2,319.0百萬元），較二零二四年上半年增加約0.5%。 持續經營業務期內利潤為約人民幣62.8百萬元（二零二四年上半年：人民幣 26.2百萬元），較二零二四年上半年大幅增加約139.8%。 本集團於二零二五年上半年錄得的本公司擁有人應佔淨利潤為約人民 幣54.9百萬元，較二零二四年上半年的約人民幣20.6百萬元大幅增加約 167.1%。 1 淨利潤同比大幅上升，乃主要由於以下因素： 而上述因素被以下因素部分抵銷： (iii) 如日期為二零二五年三月三十一日的公告披露，珠峰黃金集團於二零 二五年上半年向僱員授出 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公 告全部或任何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何 責任。 Mount Everest Gold Group Company Limited 珠峰黃金集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1815） 截至二零二五年六月三十日止六個月之 中期業績公告 二零二五年中期業績摘要 本集團二零二五年上半年的收入約為人民幣236.3百萬元（二零二四年上半 年：人民幣98.5百萬元），較二零二四年上半年大幅增加約139.9%。 持續經營業務（即珠寶新零售業務）的期內利潤為約人民幣33.1百萬元（二 零二四年上半年：人民幣1.3百萬元），較二零二四年上半年大幅增加約 2,520.2%。 二零二五年上半年，本公司擁有人應佔利潤為約人民幣75.3百萬元（二零 二四年上半年：本公司擁有人應佔虧損人民幣11.0百萬元），較二零二四年上 半年大幅增加約785.0% 。淨虧損大幅扭轉為淨盈利，乃主要由於以下因素： (i) 本集團二零二五年上半年的黃金產品銷售額較二零 ...