[Company Information](index=3&type=section&id=Company%20Information) This section details changes in the board and committee members, along with updates to the company's contact and audit information [Board and Committee Members](index=3&type=section&id=Board%20and%20Committee%20Members) The board saw changes in independent non-executive directors across the Audit, Remuneration, and Nomination Committees, with new appointments and one retirement - Independent Non-Executive Director Mr. Xu Qilin retired on **June 26, 2025**[4](index=4&type=chunk) - Independent Non-Executive Director Mr. Wang Dongyuan was appointed as a member of the Audit and Remuneration Committees and Chairman of the Nomination Committee on **June 26, 2025**[4](index=4&type=chunk) - Independent Non-Executive Director Professor Lou Zhenye was appointed as a member of the Nomination and Corporate Governance Committees on **June 26, 2025**[4](index=4&type=chunk)[5](index=5&type=chunk) [Company Contact and Audit Information](index=4&type=section&id=Company%20Contact%20and%20Audit%20Information) The company's principal place of business remains unchanged, but the auditor was changed on December 9, 2024 - The auditor resigned from Zhongzheng Tianheng Certified Public Accountants Limited and Furuimaze Certified Public Accountants Limited was appointed on **December 9, 2024**[5](index=5&type=chunk) - The company's stock code is **00574** and its website is **www.pashun.com.cn**[5](index=5&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the group's profit or loss performance, highlighting the shift from profit to loss primarily due to the absence of a one-off debt restructuring gain [Profit or Loss Overview](index=5&type=section&id=Profit%20or%20Loss%20Overview) The Group shifted from a profit of RMB35,427 thousand to a loss of RMB9,055 thousand, primarily due to the absence of a one-off debt restructuring gain Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 48,693 | 48,830 | -0.28% | | Cost of sales | (42,481) | (39,303) | +8.09% | | Gross profit | 6,212 | 9,527 | -34.80% | | Gain on debt restructuring of the Company | – | 47,356 | -100.00% | | Other income | 692 | 734 | -5.72% | | Other losses – net | (1,623) | (6,362) | -74.49% | | Selling and distribution expenses | (2,375) | (3,408) | -30.32% | | General and administrative expenses | (5,707) | (7,281) | -21.61% | | Finance costs | (6,253) | (5,075) | +23.21% | | (Loss)/Profit before tax | (9,054) | 35,491 | -125.51% | | Income tax expense | (1) | (64) | -98.44% | | (Loss)/Profit for the period | (9,055) | 35,427 | -125.56% | - The Group turned from profit to loss, primarily due to a one-off gain of **RMB47.4 million** from debt restructuring in the prior period of 2024, which was absent in 2025[7](index=7&type=chunk)[54](index=54&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section outlines the group's comprehensive income performance, showing a shift from total comprehensive income to total comprehensive expense, influenced by period loss and exchange differences [Comprehensive Income Overview](index=6&type=section&id=Comprehensive%20Income%20Overview) The Group recorded a total comprehensive expense of RMB12,432 thousand, a shift from a total comprehensive income of RMB38,585 thousand, driven by period loss and exchange differences Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | (Loss)/Profit for the period | (9,055) | 35,427 | | Exchange differences arising from translation of financial statements | (3,377) | 3,158 | | Total comprehensive (expense)/income for the period attributable to equity holders of the Company | (12,432) | 38,585 | (Loss)/Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic (loss)/earnings per share | (0.61) | 2.4 | | Diluted (loss)/earnings per share | Not applicable | Not applicable | - Basic loss per share was **RMB0.61**, compared to basic profit per share of **RMB2.4** in the prior period[11](index=11&type=chunk)[35](index=35&type=chunk) [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the group's financial position, indicating a deterioration with a net current liability and a significant decrease in cash and cash equivalents [Financial Position Overview](index=7&type=section&id=Financial%20Position%20Overview) The Group's financial position deteriorated to a net current liability of RMB29,486 thousand, with a significant decrease in cash and cash equivalents Condensed Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 74,507 | 74,787 | -0.37% | | Current assets | 87,455 | 104,859 | -16.69% | | Current liabilities | 116,941 | 103,528 | +12.96% | | Net current (liabilities)/assets | (29,486) | 1,331 | -2315.00% | | Non-current liabilities | 193,489 | 212,154 | -8.79% | | Net liabilities | (148,468) | (136,036) | +9.14% | | Cash and cash equivalents | 3,562 | 15,972 | -77.70% | - The current ratio decreased from **1.01** as of December 31, 2024, to **0.75** as of June 30, 2025, indicating increased liquidity pressure[56](index=56&type=chunk) - Trade and bills receivables increased by **58.32%** from **RMB26,136 thousand** as of December 31, 2024, to **RMB41,380 thousand** as of June 30, 2025[12](index=12&type=chunk)[39](index=39&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section details changes in the group's equity, showing an increase in accumulated losses attributable to equity holders, primarily due to the loss for the period and a decrease in exchange reserves [Equity Changes Overview](index=9&type=section&id=Equity%20Changes%20Overview) The total deficit attributable to equity holders increased to RMB(148,468) thousand, primarily due to the period's loss and reduced exchange reserves Condensed Consolidated Statement of Changes in Equity Key Data (For the six months ended June 30) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Share capital | 1,216 | 1,216 | | Share premium | 691,882 | 691,882 | | Statutory reserve | 33,143 | 33,143 | | PRC reserve | 11,456 | 11,456 | | Exchange reserve | (26,527) | (23,150) | | Other reserve | (28,150) | (28,150) | | Accumulated losses | (831,488) | (822,433) | | Total deficit attributable to equity holders of the Company | (148,468) | (136,036) | - The loss for the period of **RMB9,055 thousand** led to a further expansion of accumulated losses[14](index=14&type=chunk) - Exchange differences arising from the translation of financial statements of overseas entities resulted in a negative **RMB3,377 thousand**, negatively impacting total comprehensive expense[14](index=14&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section outlines the group's cash flow performance, showing an improvement in net cash used in operating activities but an increase in cash outflow from financing activities, leading to a larger net decrease in cash and cash equivalents [Cash Flow Overview](index=10&type=section&id=Cash%20Flow%20Overview) Net cash used in operating activities improved, but increased financing outflows led to a larger net decrease in cash and cash equivalents, significantly reducing the period-end cash balance Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net cash used in operating activities | (7,382) | (14,548) | | Net cash used in investing activities | (528) | (20) | | Net cash (used in)/generated from financing activities | (4,500) | 2,691 | | Net decrease in cash and cash equivalents | (12,410) | (11,877) | | Cash and cash equivalents at end of period | 3,562 | 4,634 | - Net cash used in operating activities improved from **RMB(14,548) thousand** in the prior period to **RMB(7,382) thousand** in the current period[15](index=15&type=chunk) - Cash flow from financing activities shifted from an inflow in the prior period to an outflow in the current period, primarily due to the repayment of other borrowings[15](index=15&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the interim financial statements, covering accounting policies, new standards, segment reporting, and specific financial line items [1. Basis of Preparation of Financial Statements](index=11&type=section&id=1.%20Basis%20of%20Preparation%20of%20Financial%20Statements) The financial statements are prepared under Hong Kong Financial Reporting Standards and generally accepted accounting principles, complying with HKEX Listing Rules - The financial statements are prepared on a historical cost basis, presented in **RMB**, with all values rounded to the nearest thousand[16](index=16&type=chunk) [2. Application of New and Revised Hong Kong Financial Reporting Standards](index=12&type=section&id=2.%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group applied revised HKFRS effective on or after January 1, 2025, with no significant impact, and anticipates no material impact from future standards - HKAS 21 (Amendment) 'Lack of Exchangeability' became effective for the first time during this interim period but had no significant impact on the financial statements[18](index=18&type=chunk) - The Directors anticipate that the application of new and revised HKFRSs not yet effective, such as HKFRS 18 'Presentation and Disclosure in Financial Statements', will not have a material impact on the condensed consolidated financial statements in the foreseeable future[20](index=20&type=chunk) [3. Revenue and Segment Reporting](index=13&type=section&id=3.%20Revenue%20and%20Segment%20Reporting) The Group's primary businesses are pharmaceutical distribution and manufacturing in China, with total revenue stable, but distribution grew while manufacturing declined significantly - The Group's principal businesses are pharmaceutical distribution and manufacturing of pharmaceutical products in China[21](index=21&type=chunk) Revenue by Business Category (For the six months ended June 30) | Revenue Category | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Pharmaceutical distribution | 43,013 | 33,267 | +29.31% | | Pharmaceutical manufacturing | 5,680 | 15,563 | -63.51% | | **Total Revenue** | **48,693** | **48,830** | **-0.28%** | - Gross profit from pharmaceutical distribution decreased from **RMB3,684 thousand** in the prior period to **RMB3,532 thousand** in the current period, while gross profit from pharmaceutical manufacturing significantly decreased from **RMB5,843 thousand** to **RMB2,680 thousand**[26](index=26&type=chunk) [4. Other Income and Other Gains/(Losses) – Net](index=17&type=section&id=4.%20Other%20Income%20and%20Other%20Gains%2F(Losses)%20%E2%80%93%20Net) Other income slightly decreased, while other net losses significantly reduced, primarily due to increased reversal of impairment losses on trade receivables Other Income (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Bank interest income | 4 | 7 | | Deferred income – government grants | 256 | 256 | | Rental income from short-term leases | 432 | 444 | | Others | – | 27 | | **Total** | **692** | **734** | Other Losses – Net (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Impairment loss on trade receivables | (2,734) | (2,021) | | Impairment loss on other receivables | (1,430) | – | | Impairment loss on prepayments and deposits paid | (1,223) | (4,342) | | Reversal of impairment loss on trade receivables | 3,712 | – | | Reversal of impairment loss on other receivables | – | 53 | | Others | 52 | (52) | | **Total** | **(1,623)** | **(6,362)** | - Other net losses significantly decreased from **RMB(6,362) thousand** in the prior period to **RMB(1,623) thousand** in the current period, mainly due to a reversal of impairment losses on trade receivables of **RMB3,712 thousand**[30](index=30&type=chunk)[50](index=50&type=chunk) [5. Finance Costs](index=18&type=section&id=5.%20Finance%20Costs) Finance costs increased by **23.2%** to **RMB6,253 thousand**, mainly due to increased imputed interest on repayment obligations under the debt repayment arrangement scheme Finance Costs (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 619 | 2,115 | | Interest on corporate bonds payable | – | 519 | | Interest on repayment obligations under the debt repayment arrangement scheme | 5,634 | 2,441 | | **Total** | **6,253** | **5,075** | - Interest on repayment obligations under the debt repayment arrangement scheme significantly increased from **RMB2,441 thousand** in the prior period to **RMB5,634 thousand** in the current period[31](index=31&type=chunk)[53](index=53&type=chunk) [6. (Loss)/Profit Before Tax](index=19&type=section&id=6.%20(Loss)%2FProfit%20Before%20Tax) Loss before tax was RMB9,054 thousand, a shift from a profit of RMB35,491 thousand, primarily due to the impact of the debt restructuring gain (Loss)/Profit Before Tax Components (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of inventories sold | 42,481 | 39,303 | | Total staff costs | 3,143 | 3,420 | | Depreciation of property, plant and equipment | 782 | 1,271 | | Depreciation of right-of-use assets | 26 | 29 | | Auditor's remuneration | – | 111 | - Total staff costs slightly decreased from **RMB3,420 thousand** in the prior period to **RMB3,143 thousand** in the current period[32](index=32&type=chunk) - Depreciation of property, plant and equipment decreased from **RMB1,271 thousand** in the prior period to **RMB782 thousand** in the current period[32](index=32&type=chunk)[37](index=37&type=chunk) [7. Income Tax Expense](index=20&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense significantly reduced to RMB1 thousand, as the Group had no taxable profits in Cayman Islands, BVI, Hong Kong, or its PRC subsidiaries Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax – PRC Enterprise Income Tax | – | – | | Deferred tax | – | 64 | | **Total** | **(1)** | **(64)** | - The Group is not subject to income tax in the Cayman Islands, British Virgin Islands, and Hong Kong[33](index=33&type=chunk) - PRC subsidiaries are subject to PRC Enterprise Income Tax at a statutory rate of **25%**, but no provision was made for the current period due to the absence of taxable profits[33](index=33&type=chunk) [8. Dividends](index=21&type=section&id=8.%20Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of any interim dividend for the six months ended **June 30, 2025**[34](index=34&type=chunk) [9. (Loss)/Earnings Per Share](index=21&type=section&id=9.%20(Loss)%2FEarnings%20Per%20Share) Basic loss per share was RMB0.61, compared to basic profit per share of RMB2.4, with diluted (loss)/earnings per share not presented due to option exercise prices (Loss)/Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic (loss)/earnings per share | (0.61) | 2.4 | | Diluted (loss)/earnings per share | Not applicable | Not applicable | - Basic loss per share is calculated based on the loss attributable to equity holders of **RMB9,054 thousand** and the weighted average number of **1,474,993 thousand** ordinary shares in issue[35](index=35&type=chunk) - Diluted (loss)/earnings per share is not presented as the exercise price of share options was higher than the average market price of the shares[36](index=36&type=chunk) [10. Property, Plant and Equipment](index=21&type=section&id=10.%20Property,%20Plant%20and%20Equipment) Depreciation of property, plant and equipment decreased to RMB782 thousand for the six months ended June 30, 2025 Depreciation of Property, Plant and Equipment (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Depreciation | 782 | 1,271 | [11. Right-of-use Assets](index=21&type=section&id=11.%20Right-of-use%20Assets) The Group did not enter into any new lease agreements during this interim period - The Group did not enter into any new lease agreements during this interim period[38](index=38&type=chunk) [12. Trade and Other Receivables](index=22&type=section&id=12.%20Trade%20and%20Other%20Receivables) Total trade and other receivables increased to RMB45,747 thousand, with a significant rise in trade receivables aged 4 to 6 months Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade and bills receivables | 41,380 | 26,136 | | Bills receivable from banks | 3,041 | 1,633 | | Other receivables | 1,326 | 1,860 | | **Total** | **45,747** | **29,629** | Ageing Analysis of Trade and Bills Receivables (As of June 30) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 4,561 | 9,460 | | 1 to 3 months | 6,225 | 9,222 | | 4 to 6 months | 30,594 | 7,454 | | **Total** | **41,380** | **26,136** | - Trade receivables aged **4 to 6 months** significantly increased from **RMB7,454 thousand** as of December 31, 2024, to **RMB30,594 thousand** as of June 30, 2025, indicating a potential extension of the collection period[39](index=39&type=chunk) [13. Trade and Other Payables](index=23&type=section&id=13.%20Trade%20and%20Other%20Payables) Total trade and other payables were RMB82,502 thousand, with the majority of trade payables aged over 3 months Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 27,916 | 31,633 | | Contract liabilities | 14,126 | 14,522 | | Accrued interest on other borrowings | 3,156 | 3,455 | | Other accrued expenses | 2,417 | 3,414 | | Staff-related costs payable | 9,908 | 9,827 | | Other payables | 24,979 | 20,189 | | **Total** | **82,502** | **83,040** | Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 1,121 | 3,373 | | 1 to 3 months | 1,624 | 1,853 | | Over 3 months | 25,171 | 26,407 | | **Total** | **27,916** | **31,633** | - Trade payables aged **over 3 months** constitute the vast majority of total trade payables, indicating a longer payment cycle to suppliers[41](index=41&type=chunk) [14. Repayment Arrangement Scheme Liabilities](index=24&type=section&id=14.%20Repayment%20Arrangement%20Scheme%20Liabilities) The Group initiated a debt repayment arrangement scheme on March 12, 2024, involving initial and annual cash payments to scheme creditors and potential new share issuance - The debt repayment arrangement scheme became effective on **March 12, 2024**, fully discharging and releasing all unsecured and non-priority claims[43](index=43&type=chunk) - Scheme creditors are entitled to an initial cash payment equivalent to **1%** of their admitted claims, and annual cash payments from **2024 to 2028** (**HK$5 million** for 2024, and **HK$10 million** annually from 2025-2028, or a relevant proportion of the audited consolidated net profit for the respective financial year, whichever is higher)[43](index=43&type=chunk) - During the six months ended June 30, 2025, the initial cash payment and the 2024 annual payment were made to the scheme creditors[44](index=44&type=chunk) [15. Share Capital](index=25&type=section&id=15.%20Share%20Capital) The company's authorized and issued and fully paid share capital remained unchanged as of June 30, 2025 Share Capital Information (As of June 30) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of authorized shares (thousand shares) | 5,000,000 | 5,000,000 | | Authorized share capital (HK$'000) | 5,000 | 5,000 | | Number of issued and fully paid shares (thousand shares) | 1,474,993 | 1,474,993 | | Nominal value of issued and fully paid share capital (HK$'000) | 1,475 | 1,475 | | Carrying value of issued and fully paid share capital (RMB '000) | 1,216 | 1,216 | [16. Contingent Liabilities](index=25&type=section&id=16.%20Contingent%20Liabilities) The Group faces a legal claim of RMB4,656 thousand for a construction design contract, with management deeming the plaintiff's success probability as remote - The Group's subsidiary, Chengdu Yiming Investment Management Co., Ltd., faces a legal claim of approximately **RMB4,656 thousand** for a construction design contract balance[46](index=46&type=chunk) - Based on independent legal advice, the Group's management considers the probability of the plaintiff succeeding to be remote[46](index=46&type=chunk) [Management Discussion and Analysis](index=26&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the group's business, financial performance, liquidity, and future outlook [Business Review](index=26&type=section&id=Business%20Review) The Group continues to focus on pharmaceutical distribution and manufacturing businesses in China - The Group remains committed to its pharmaceutical distribution and manufacturing businesses in China[47](index=47&type=chunk) [Revenue](index=26&type=section&id=Revenue) Total revenue for the six months ended June 30, 2025, was RMB48.7 million, a slight decrease of approximately **0.28%** Total Revenue (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 48.7 | 48.8 | -0.28% | [Cost of Sales, Gross Profit and Gross Margin](index=26&type=section&id=Cost%20of%20Sales,%20Gross%20Profit%20and%20Gross%20Margin) Cost of sales increased by **8.09%** to **RMB42.5 million**, leading to a **34.8%** decrease in gross profit and a drop in gross margin to **12.8%** Cost of Sales, Gross Profit and Gross Margin (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 42.5 | 39.3 | +8.09% | | Gross profit | 6.2 | 9.5 | -34.80% | | Gross margin | 12.8% | 19.5% | -6.7 percentage points | - The increase in cost of sales was primarily due to rising costs of raw materials and labor[49](index=49&type=chunk) - The decrease in gross margin was mainly attributable to rising costs and intense competition in the pharmaceutical distribution industry[49](index=49&type=chunk) [Other Income and Other Losses – Net](index=26&type=section&id=Other%20Income%20and%20Other%20Losses%20%E2%80%93%20Net) Other net losses significantly reduced to RMB1.6 million, primarily due to changes in impairment losses Other Losses – Net (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Other losses – net | 1.6 | 6.4 | -75.00% | - Other net losses primarily comprise impairment losses on trade and other receivables, and prepayments and deposits paid[50](index=50&type=chunk) [Selling and Distribution Expenses](index=27&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by **30.3%** to **RMB2.4 million**, due to strict cost control and reduced sales activities Selling and Distribution Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 2.4 | 3.4 | -30.30% | - The decrease in expenses was attributable to the Group's stringent cost control policies and reduced sales activities and promotions during the review period[51](index=51&type=chunk) [General and Administrative Expenses](index=27&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by **21.6%** to **RMB5.7 million**, as prior period legal and professional fees for resuming trading and debt restructuring did not recur General and Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | General and administrative expenses | 5.7 | 7.3 | -21.92% | - The decrease in expenses was mainly due to the absence of legal and professional fees incurred in the prior period of 2024 for handling the application for resumption of trading and debt restructuring[52](index=52&type=chunk) [Finance Costs](index=27&type=section&id=Finance%20Costs) Finance costs increased by **23.2%** to **RMB6.3 million**, primarily due to increased imputed interest on repayment obligations under the debt repayment arrangement scheme Finance Costs (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 6.3 | 5.1 | +23.53% | - The increase in finance costs was mainly due to imputed interest on repayment obligations under the debt repayment arrangement scheme for the six months ended **June 30, 2025**[53](index=53&type=chunk) [(Loss)/Profit for the Period](index=27&type=section&id=(Loss)%2FProfit%20for%20the%20Period) The Group shifted from a profit of RMB35.5 million to a loss of RMB9.1 million, primarily due to the absence of a one-off debt restructuring gain (Loss)/Profit for the Period (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | (Loss)/Profit for the period | (9.1) | 35.5 | -125.63% | - The Group turned from profit to loss for the period mainly due to a one-off gain of **RMB47.4 million** from debt restructuring in the prior period of 2024, with no such gain in 2025[54](index=54&type=chunk) [Future Prospects](index=27&type=section&id=Future%20Prospects) The company anticipates a market demand rebound and increased competition, focusing on enhancing production and distribution capabilities to seize opportunities - Market demand is expected to rebound, but market competitors will also increase[55](index=55&type=chunk) - Management will focus on enhancing production and distribution capabilities to capitalize on business opportunities arising from market recovery[55](index=55&type=chunk) [Liquidity, Financial and Capital Resources](index=28&type=section&id=Liquidity,%20Financial%20and%20Capital%20Resources) Cash and cash equivalents significantly decreased, net current liabilities increased, and the current ratio declined, indicating heightened liquidity pressure, with changes in bank and other borrowings Liquidity and Borrowing Status (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 3.6 | 16.0 | -77.50% | | Net current liabilities | 29.5 | (1.3) | -2369.23% | | Current ratio | 0.75 | 1.01 | -25.74% | | Total bank borrowings | 16.4 | 11.4 | +43.86% | | Total other borrowings | 23.6 | 32.6 | -27.59% | - On **May 25, 2025**, **100,000,000** share options lapsed and expired, with no outstanding share options as of **June 30, 2025**[57](index=57&type=chunk) - The Group regularly and actively reviews and manages its capital structure to strengthen its financial position, with no changes in capital management approach[57](index=57&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) The Group had no other significant contingent liabilities apart from the legal proceedings disclosed in Note 16 to the financial statements - The Group had no other significant contingent liabilities apart from those disclosed in Note 16 to the condensed consolidated interim financial statements[58](index=58&type=chunk) [Exchange Rate Risk](index=28&type=section&id=Exchange%20Rate%20Risk) The Group does not face any significant foreign exchange risk as most assets, transactions, and operations are denominated in RMB - The majority of the Group's assets and transactions are denominated in **RMB**, and it does not face any significant foreign exchange risk[59](index=59&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section covers other relevant information, including significant investments, human resources, dividends, corporate governance, and share-related matters [Significant Investments, Acquisitions and Disposals](index=29&type=section&id=Significant%20Investments,%20Acquisitions%20and%20Disposals) The Group did not undertake any discloseable significant investments, acquisitions, or disposals during the six months ended June 30, 2025 - The Group did not undertake any discloseable significant investments, acquisitions, or disposals during the reporting period[60](index=60&type=chunk) [Human Resources](index=29&type=section&id=Human%20Resources) The Group's headcount increased to 106, with slightly decreased total staff costs, focusing on attracting, developing, and retaining talent Human Resources Overview (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total headcount | 106 | 97 | | Total staff costs (RMB million) | 3.1 | 3.4 | - The Group considers human resources as its valuable asset and is committed to attracting, developing, and retaining outstanding employees[61](index=61&type=chunk) [Dividends](index=30&type=section&id=Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended **June 30, 2025**[62](index=62&type=chunk) [Corporate Governance](index=30&type=section&id=Corporate%20Governance) The company maintains high corporate governance standards, complying with the Listing Rules' Corporate Governance Code, except for the non-renewal of directors' and officers' liability insurance - The Company has adopted the Corporate Governance Code as set out in Appendix C1 Part 2 of the Listing Rules[63](index=63&type=chunk) - Following the expiry of the previous directors' and officers' liability insurance on **December 6, 2024**, the Company has not made any new insurance arrangements for potential legal actions against its directors[63](index=63&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, reviewed the Group's accounting principles, internal controls, and financial reporting matters - The Audit Committee comprises Ms. Li Yan (Chairperson), Professor Lou Zhenye, and Mr. Wang Dongyuan[65](index=65&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed internal control and financial reporting matters[65](index=65&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=31&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The company adopted the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period - All Directors have confirmed their compliance with the relevant provisions of the Model Code for the six months ended **June 30, 2025**[66](index=66&type=chunk) [Share Option Scheme](index=31&type=section&id=Share%20Option%20Scheme) The 2015 share option scheme expired on May 25, 2025, with all 100,000,000 granted options lapsing and no new options granted, exercised, or cancelled - The share option scheme expired on **May 25, 2025**[67](index=67&type=chunk) - For the six months ended June 30, 2025, all **100,000,000** share options lapsed, and no share options were granted, exercised, or cancelled during the period[68](index=68&type=chunk)[72](index=72&type=chunk) - The Company will consider adopting a new share option scheme in due course in compliance with the latest requirements under Chapter 17 of the Listing Rules[74](index=74&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=34&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of June 30, 2025, no directors or chief executives held discloseable interests or short positions in the company's or its associated corporations' shares, underlying shares, or debentures - As of **June 30, 2025**, no Directors or chief executives of the Company had any discloseable interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations[76](index=76&type=chunk) [Directors' Right to Acquire Shares or Debentures](index=34&type=section&id=Directors'%20Right%20to%20Acquire%20Shares%20or%20Debentures) No rights were granted to any director or their associates to acquire benefits by purchasing company shares or debentures, nor were any such rights exercised - During the reporting period, no rights were granted to any Director or their associates to acquire benefits by means of purchasing shares or debentures of the Company, nor were any such rights exercised[77](index=77&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company](index=35&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Joyful Treasure Limited and Mr. Chen Yanfei were substantial shareholders, holding **51.97%** of shares, with other significant interests held by Win Win Stable No. 3 Fund SP and related parties Substantial Shareholders' Long Positions in Shares (As of June 30) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Joyful Treasure Limited | Beneficial owner | 753,040,000 | 51.05% | | Mr. Chen Yanfei | Interest of controlled corporation | 753,040,000 | 51.05% | | Mr. Chen Yanfei | Beneficial owner | 13,560,000 | 0.92% | | **Mr. Chen Yanfei Total** | | **766,600,000** | **51.97%** | Other Persons' Long Positions in Shares (As of June 30) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Win Win Stable No. 3 Fund SP | Person with a security interest in shares | 753,040,000 | 51.05% | | Zhongtai Innovation Capital Management Limited | Investment manager | 753,040,000 | 51.05% | | Ma Demin | Agent | 753,040,000 | 51.05% | | Lai Wing Lun | Agent | 753,040,000 | 51.05% | - **753,040,000** shares (approximately **51.05%** of the issued share capital) held by Joyful Treasure Limited are pledged, with Mr. Ma Demin and Mr. Lai Wing Lun of RSM Corporate Advisory (Hong Kong) Limited appointed as joint and several receivers and managers[81](index=81&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=37&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed 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 listed securities during the reporting period[82](index=82&type=chunk) [Changes in Directors' Information](index=37&type=section&id=Changes%20in%20Directors'%20Information) Independent Non-Executive Director Mr. Xu Qilin retired, while Mr. Wang Dongyuan and Professor Lou Zhenye were appointed to new committee roles, with Mr. Wang also resigning from another directorship - Independent Non-Executive Director Mr. Xu Qilin retired on **June 26, 2025**[83](index=83&type=chunk) - Independent Non-Executive Director Mr. Wang Dongyuan was appointed as Chairman of the Nomination Committee and a member of the Audit and Remuneration Committees[83](index=83&type=chunk) - Independent Non-Executive Director Professor Lou Zhenye was appointed as a member of the Nomination and Corporate Governance Committees[83](index=83&type=chunk) [Company's Registered Office](index=37&type=section&id=Company's%20Registered%20Office) The company's registered office service provider in the Cayman Islands terminated services on July 22, 2025, and the Board is seeking a new provider - The Company's registered office service provider in the Cayman Islands terminated its services on **July 22, 2025**[84](index=84&type=chunk) - The Board is currently seeking another service provider to provide registered office services as soon as possible[84](index=84&type=chunk) [Events After the Reporting Period](index=37&type=section&id=Events%20After%20the%20Reporting%20Period) The Board is not aware of any significant events occurring after June 30, 2025, up to the date of this interim report - The Board is not aware of any significant events occurring after **June 30, 2025**, up to the date of this interim report[85](index=85&type=chunk)

Financial Performance - For the first half of 2025, the company reported revenue of RMB 2,962.7 million, an increase of approximately RMB 378.9 million or 14.7% compared to RMB 2,583.8 million in the same period of 2024[8] - The company's profit attributable to owners was approximately RMB 73.9 million, up by about RMB 45.6 million or 161.2% from RMB 28.3 million in the same period of 2024[8] - The gross profit for the first half of 2025 was RMB 679.1 million, reflecting a 10.4% increase from RMB 615.1 million in the previous year[7] - The company's basic earnings per share for the first half of 2025 were RMB 0.02, representing an increase of 148.9% compared to RMB 0.01 in the same period of 2024[7] - The company's profit for the first half of 2025 is estimated to reach RMB 150-160 million, a significant turnaround from a loss of RMB 11 million in the same period last year[17] - Profit before tax for the first half of 2025 was approximately RMB 90.0 million, an increase of RMB 59.1 million or approximately 191.5% compared to RMB 30.9 million in the same period of 2024[26] - Net profit attributable to the owners of the company for the first half of 2025 was approximately RMB 73.9 million, an increase of RMB 45.6 million or 161.2% from RMB 28.3 million in the same period of 2024, with a net profit margin of 2.5%, up 1.4 percentage points from 1.1 in the same period of 2024[28] Revenue Breakdown - Revenue from cement sales was approximately RMB 2,235.6 million, up 19.5% from RMB 1,870.2 million in the same period of 2024[18] - The company's sales revenue in the Northeast region increased by 40.9% to RMB 636.9 million compared to RMB 451.9 million in the same period of 2024[19] - Revenue from the Central China segment was RMB 2,325,756,000, representing a year-over-year increase of 9.1%[91] - The Northeast China segment reported revenue of RMB 636,902,000, a significant increase of 40.9% compared to RMB 451,922,000 in 2024[91] Cost and Expenses - The sales cost for the first half of 2025 was approximately RMB 2,283.6 million, an increase of RMB 314.9 million or 16.0% compared to the previous year[20] - Other income for the first half of 2025 was approximately RMB 238.2 million, a decrease of RMB 59.6 million or 20.0% compared to RMB 297.8 million in the same period of 2024, primarily due to a reduction in government subsidies and material sales revenue[22] - Sales and distribution expenses for the first half of 2025 were approximately RMB 58.5 million, down RMB 57.4 million or 49.5% from RMB 115.9 million in the same period of 2024, mainly due to reduced transportation costs[23] - Administrative expenses for the first half of 2025 were approximately RMB 344.5 million, a decrease of RMB 16.8 million or 4.7% from RMB 361.3 million in the same period of 2024, primarily due to reduced R&D expenses and cost-saving measures[24] Assets and Liabilities - Total assets as of June 30, 2025, were RMB 36,351.4 million, a decrease of 2.3% from RMB 37,215.1 million at the end of 2024[7] - Total liabilities decreased by 4.6% to RMB 20,268.4 million from RMB 21,239.6 million at the end of 2024[7] - As of June 30, 2025, the company's debt-to-asset ratio was 55.8%, a decrease of 1.3 percentage points from 57.1% as of December 31, 2024, due to a reduction in borrowings[36] - As of June 30, 2025, cash and cash equivalents decreased to RMB 467.7 million from RMB 915.1 million as of December 31, 2024, primarily due to cash outflows from investing and financing activities[32] - Trade and other receivables as of June 30, 2025, were RMB 20,523.1 million, remaining stable compared to RMB 20,764.4 million as of December 31, 2024[29] Market Conditions - The cement market demand continued to decline over the past three years, but the rate of decline has slowed down in the first half of 2025[8] - The government has set a GDP growth target of around 5% for 2025, which may influence the company's future performance[9] - The company is focusing on high-quality development and expanding its market presence amid ongoing challenges in the real estate sector[9] - The cement industry is expected to face a downward demand trend, with supply-side policies crucial for price recovery and profitability[56] - The cement industry's capacity utilization rate is projected to improve from 53% to around 70% due to effective supply-side measures[56] Strategic Initiatives - The company is actively implementing various efficiency enhancement measures to counteract the pressures from the market environment[8] - The company is implementing energy-saving and low-emission measures in line with national policies to enhance operational efficiency[57] - The company aims to strengthen its market competitiveness through refined management and the promotion of green energy projects[57] - The company plans to continue expanding its market presence and enhancing its product offerings in the cement and aggregate sectors[85] Governance and Compliance - The company has maintained compliance with corporate governance codes and is actively seeking a new CEO since December 2015[72] - The company did not declare an interim dividend for the reporting period[76] - The company has re-complied with listing rules after appointing Mr. Jiang Senlin as an independent non-executive director[73] Related Party Transactions - The group reported significant transactions with related parties, including purchases from Pingdingshan Ruiping Shilong Cement Co., Ltd. amounting to RMB 30,557,000 in the first half of 2025, compared to RMB 6,348,000 in the same period of 2024[114] - Interest income from Xin'an Zhonglian Wanjian Cement Co., Ltd. was RMB 1,672,000 for the first half of 2025, with total related party transactions reaching RMB 32,229,000 compared to RMB 6,348,000 in the previous year[114] - The group provided approved financial guarantees to related parties amounting to approximately RMB 1,540,000,000 as of June 30, 2025, an increase from RMB 1,200,000,000 as of December 31, 2024[115]

[Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) Key financial highlights for fiscal year 2025, showing significant revenue growth and a turnaround from loss to profit for the company and its owners 2025 Fiscal Year Key Financial Summary | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | Increase 39.0% | - | Growth | | Operating Profit/(Loss) | 17,592 | (33,236) | Turnaround (Decrease 152.9%) | | Net Profit/(Loss) Attributable to Owners of the Company | 17,445 | (32,735) | Turnaround (Decrease 153.3%) | | Basic and Diluted Earnings Per Share | 1.68 cents | (3.16) cents | Turnaround | [Financial Statements](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the company's consolidated financial statements, including the income statement, statement of comprehensive income, and statement of financial position [Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the year ended June 30, 2025, the company achieved significant revenue growth, substantial gross profit increase, turned operating loss into profit, and realized annual profit attributable to owners Consolidated Statement of Profit or Loss Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 193,546 | 139,203 | +39.0% | | Cost of sales and services | (128,077) | (104,177) | +22.9% | | Gross Profit | 65,469 | 35,026 | +86.9% | | Operating Profit/(Loss) | 17,592 | (33,236) | Turnaround | | Profit/(Loss) for the year attributable to owners of the Company | 17,445 | (32,735) | Turnaround | | Basic Earnings/(Loss) Per Share | 1.68 cents | (3.16) cents | Turnaround | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%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) For the year ended June 30, 2025, the company achieved annual profit, with total comprehensive income influenced by exchange differences, resulting in a positive overall comprehensive income Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the year | 17,445 | (32,735) | | Exchange differences on translation | (16,908) | 5,089 | | Fair value changes of financial assets at fair value through other comprehensive income | 253 | 2,742 | | Exchange differences arising on translation of overseas operations | 16,718 | (5,000) | | Total comprehensive income/(expense) for the year attributable to owners of the Company | 17,508 | (29,904) | [Consolidated Statement of Financial Position](index=4&type=section&id=%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 company maintained a stable asset structure, with a slight decrease in non-current assets, an increase in both current assets and liabilities, and growth in net current assets and total equity Consolidated Statement of Financial Position Key Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current assets | 250,436 | 273,970 | | Current assets | 1,553,680 | 1,506,548 | | Current liabilities | 77,732 | 71,514 | | Net current assets | 1,475,948 | 1,435,034 | | Total assets less current liabilities | 1,726,384 | 1,709,004 | | Net assets | 1,708,309 | 1,690,688 | | Share capital | 91,360 | 91,360 | | Reserves | 1,616,949 | 1,599,328 | | Total equity | 1,708,309 | 1,690,688 | [Notes to the Consolidated Financial Statements](index=6&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes explaining the accounting policies, significant judgments, and estimates used in preparing the consolidated financial statements [General Information](index=6&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The company is a Cayman Islands-registered investment holding company primarily engaged in manufacturing and selling high-precision industrial automation instruments and technical products in China, providing entrusted processing services, and manufacturing and selling multi-functional all-plastic quartz watch movements, with financial statements presented in RMB - The company's principal activities include manufacturing and selling high-precision industrial automation instruments and technical products, providing entrusted processing services, and manufacturing and selling multi-functional all-plastic quartz watch movements[8](index=8&type=chunk) - The Group's consolidated financial statements are presented in RMB, as its principal subsidiaries operate in China[8](index=8&type=chunk) [Application of Amendments to Hong Kong Financial Reporting Standards](index=6&type=section&id=2%20%E6%87%89%E7%94%A8%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E4%BF%AE%E8%A8%82%E6%9C%AC) The Group has adopted several HKFRS amendments effective this year, and new standards issued but not yet effective are disclosed, with HKFRS 18 expected to significantly impact future financial statement presentation and disclosure - The Group has initially applied several amendments to Hong Kong Financial Reporting Standards that are mandatorily effective for the annual period beginning on July 1, 2024, with no significant impact on the financial position and performance for the current year[10](index=10&type=chunk)[11](index=11&type=chunk) - HKFRS 18 "Presentation and Disclosure in Financial Statements" will be effective for annual periods beginning on or after January 1, 2027, and is expected to impact the presentation of the consolidated statement of profit or loss, consolidated statement of profit or loss and other comprehensive income, and disclosures in future consolidated financial statements[13](index=13&type=chunk)[14](index=14&type=chunk) [Revenue](index=8&type=section&id=3%20%E6%94%B6%E5%85%A5) For the year ended June 30, 2025, the Group's revenue primarily derived from the sale of automation instruments and technical products, and related entrusted processing services, showing significant year-on-year growth, predominantly from China Revenue Classification | Type of Goods and Services | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of automation instruments and technical products | 181,427 | 135,689 | | Entrusted processing services related to automation instruments and technical products | 12,119 | 3,392 | | Sales of watch instruments | — | 122 | | **Total Revenue** | **193,546** | **139,203** | - All revenue from customer contracts is recognized at a point in time and primarily generated in China[15](index=15&type=chunk) [Segment Reporting](index=8&type=section&id=4%20%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group primarily operates in two segments: automation instruments and technical products, and watch instruments. In 2025, the automation instruments and technical products segment saw significant growth in both revenue and profit, while the watch instruments segment, despite no sales, achieved a profit. The Group's revenue is mainly from China Reportable Segment Revenue and Profit/(Loss) | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Profit/(Loss) (RMB thousands) | 2024 Profit/(Loss) (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Automation instruments and technical products | 193,546 | 139,081 | 18,189 | (14,009) | | Watch instruments | — | 122 | 3,798 | (6,023) | | **Total** | **193,546** | **139,203** | **21,987** | **(20,032)** | - The Group's revenue from external customers primarily originated from China (excluding Hong Kong), **RMB 193,467 thousand** in 2025 and **RMB 138,776 thousand** in 2024[20](index=20&type=chunk) [Finance Costs](index=10&type=section&id=5%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) The Group's finance costs primarily consist of interest on lease liabilities, which decreased this year compared to last year Finance Costs | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on lease liabilities | 20 | 32 | [Profit/(Loss) Before Tax](index=11&type=section&id=6%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Profit before tax was primarily influenced by depreciation, R&D expenses, auditor's remuneration, cost of sales, investment property rental income, and a reversal of impairment loss on trade and other receivables, with trade receivables impairment shifting from a loss to a reversal this year Major Items Affecting Profit/(Loss) Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 23,560 | 22,701 | | Research and development expenses | 6,293 | 7,878 | | Auditor's remuneration | 2,038 | 2,030 | | Cost of sales and services | 128,077 | 104,177 | | Total rental income from investment properties | (411) | (3) | | Reversal of impairment loss on trade and other receivables / (Impairment loss) net | (4,223) | 289 | [Income Tax Expense/(Credit)](index=12&type=section&id=7%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF%EF%BC%8F%EF%BC%88%E6%8A%B5%E5%85%8D%EF%BC%89) The Group's income tax expense this year primarily comprised deferred tax, with no assessable profit in Hong Kong and tax exemption in the Cayman Islands. Fujian Shangrun, a Chinese subsidiary, enjoys a 15% preferential tax rate as a high-tech enterprise but made no provision for Chinese tax this year due to tax loss absorption Income Tax Expense/(Credit) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax — China | — | — | | Deferred tax | 127 | (533) | | **Total** | **127** | **(533)** | - There was no assessable profit in Hong Kong, and the Cayman Islands are exempt from income tax[24](index=24&type=chunk)[25](index=25&type=chunk) - Fujian Shangrun, a Chinese subsidiary, enjoys a **15% preferential income tax rate** as a high-tech enterprise but made no provision for Chinese tax this year due to tax loss absorption[25](index=25&type=chunk) [Dividends](index=13&type=section&id=8%20%E8%82%A1%E6%81%AF) For the years ended June 30, 2025 and 2024, the company neither paid nor proposed any dividends to ordinary shareholders - During and after the reporting period, the company neither paid nor proposed any dividends[26](index=26&type=chunk) [Earnings/(Loss) Per Share](index=13&type=section&id=9%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) For the year ended June 30, 2025, the company achieved basic and diluted earnings per share of RMB 1.68 cents, a significant improvement from a loss of RMB 3.16 cents per share in the prior year Earnings/(Loss) Per Share | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 1.68 | (3.16) | | Diluted earnings/(loss) per share | 1.68 | (3.16) | - For the year ended June 30, 2025, the exercise of share options was not assumed in the calculation of diluted earnings per share as they were out-of-the-money and had an anti-dilutive effect[28](index=28&type=chunk) [Trade and Other Receivables](index=14&type=section&id=10%20%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 increased, with trade receivables net of impairment allowance amounting to RMB 77,695 thousand, and a typical credit period of 120 to 180 days Aging Analysis of Trade and Other Receivables | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 60 days | 31,130 | 28,619 | | 61 to 120 days | 24,755 | 23,689 | | 121 to 180 days | 21,810 | 17,178 | | **Total** | **77,695** | **69,486** | - The Group generally grants credit periods of **120 to 180 days** to customers, without charging interest or requiring collateral[29](index=29&type=chunk) [Trade and Other Payables](index=14&type=section&id=11%20%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 increased, with trade payables amounting to RMB 19,452 thousand Aging Analysis of Trade and Other Payables | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 9,299 | 7,785 | | 31 to 90 days | 9,273 | 6,241 | | 91 to 180 days | 220 | 110 | | Over 180 days | 660 | 599 | | **Total** | **19,452** | **14,735** | [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an overview of the Group's performance, financial position, and future outlook, including market review, segment information, and financial resources [Market and Business Review](index=15&type=section&id=%E5%B8%82%E5%A0%B4%E8%88%87%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Despite macroeconomic adjustments and intensified market competition, the Group successfully turned losses into profit, recording a profit attributable to owners of RMB 17,445 thousand, by focusing on high-precision industrial automation instruments and technical products and promoting domestic substitution - The Group's principal business is the research, development, production, and sale of automation instruments and meters, facing adjustment pressures due to macroeconomic conditions and market competition[31](index=31&type=chunk) - The Group maintained stable development by leveraging its product line advantages and vigorously promoting domestic substitution of its main products in downstream sectors[31](index=31&type=chunk) - Profit attributable to owners of the company for the current year was approximately **RMB 17,445 thousand**, compared to a loss of **RMB 32,735 thousand** in the prior year, primarily due to increased sales of automation instruments and technical products and entrusted processing services[31](index=31&type=chunk) [Segment Information](index=15&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's main business segments are automation instruments and technical products and watch instruments. The automation instruments and technical products segment saw significant growth in both revenue and profit, while the watch instruments segment, despite no sales, achieved profit through impairment allowance reversal - The Group has two business segments: automation instruments and technical products, and watch instruments[32](index=32&type=chunk) [Automation Instruments and Technical Products](index=15&type=section&id=%E8%87%AA%E5%8B%95%E5%8C%96%E5%84%80%E9%8C%B6%E5%8F%8A%E6%8A%80%E8%A1%93%E7%94%A2%E5%93%81) This year, the automation instruments and technical products segment generated revenue of RMB 193,546 thousand, accounting for 100% of the Group's total revenue, and successfully turned last year's loss into a reportable segment profit of RMB 18,189 thousand, primarily due to increased sales and entrusted processing services Automation Instruments and Technical Products Segment Performance | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 193,546 | 139,081 | | Percentage of Group's total revenue | 100.0% | 99.9% | | Reportable segment profit/(loss) | 18,189 | (14,009) | - Segment profit was primarily attributable to increased sales of automation instruments, technical products, and watch instruments, as well as entrusted processing services related to automation instruments and technical products[32](index=32&type=chunk) [Watch Instruments](index=16&type=section&id=%E9%90%98%E9%8C%B6%E5%84%80%E9%8C%B6) This year, the watch instruments segment had no sales revenue but achieved a reportable segment profit of RMB 3,798 thousand, reversing last year's loss, by recognizing a reversal of impairment allowance for trade receivables of approximately RMB 3,795 thousand Watch Instruments Segment Performance | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales revenue | — | 122 | | Percentage of Group's total revenue | 0.0% | 0.1% | | Reportable segment profit/(loss) | 3,798 | (6,023) | - Segment profit was primarily due to the recognition of a reversal of impairment allowance for trade receivables of approximately **RMB 3,795 thousand**[33](index=33&type=chunk) [Production Facilities](index=16&type=section&id=%E7%94%A2%E7%94%9F%E8%A8%AD%E6%96%BD) The Group owns large production facilities in Fuzhou, China, with a total site area of approximately 47,665 square meters. There were no significant expansion plans this year, and future development will remain prudent - The Group owns large production facilities in Mawei Science and Technology Park and Fuzhou Economic and Technological Development Zone, Fuzhou, China, with a total site area of approximately **47,665 square meters**[34](index=34&type=chunk) - There were no significant expansion plans for the current year, and the Board will prudently proceed with future development plans[34](index=34&type=chunk) [Business Outlook](index=16&type=section&id=%E6%A5%AD%E5%8B%99%E5%89%8D%E7%9E%BB) The industrial automatic control system device manufacturing industry is positively correlated with the macroeconomy. Despite some industry demand shortfalls, sectors like non-ferrous metals, power, and nuclear energy show strong demand, indicating sustained long-term growth for the instrument industry. As a leading enterprise, the Group is poised to benefit from national industrial foundation re-engineering and major technical equipment tackling projects, driving sustainable growth - The industrial automatic control system device manufacturing industry is affected by macroeconomic conditions and fluctuations in downstream cyclical industries, but demand is strong in non-ferrous metals, power, nuclear energy, and equipment manufacturing industries[35](index=35&type=chunk) - The Group expects to benefit from the national initiatives to deepen industrial foundation re-engineering and major technical equipment tackling projects, leading to increasing demand for domestically produced mid-to-high-end instruments in downstream industries and driving sustainable growth[35](index=35&type=chunk) [Revenue](index=17&type=section&id=%E6%94%B6%E5%85%A5) This year, the Group's revenue was approximately RMB 193,546 thousand, a 39.0% increase from last year, primarily driven by increased sales of automation instruments and technical products and entrusted processing services, despite challenges from stagnant economic growth Group Revenue | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | 193,546 | 139,203 | 39.0% | - Revenue growth was primarily due to increased sales of automation instruments and technical products and entrusted processing services[36](index=36&type=chunk) [Gross Profit and Operating Profit/(Loss)](index=17&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E7%B6%93%E7%87%9F%E6%BA%A2%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) This year, the Group's gross profit and operating profit both increased significantly, with gross profit reaching RMB 65,469 thousand and operating profit turning around to RMB 17,592 thousand, mainly due to increased sales and a reversal of impairment loss on trade receivables Gross Profit and Operating Profit/(Loss) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Gross Profit | 65,469 | 35,026 | | Operating Profit/(Loss) | 17,592 | (33,236) | - The increase in gross profit was primarily due to increased sales of industrial automation instrument products and related entrusted processing services[37](index=37&type=chunk) - Operating profit includes a reversal of impairment loss on trade receivables of approximately **RMB 4,359 thousand** (2024: impairment loss of approximately **RMB 289 thousand**) recognized under the expected credit loss model[37](index=37&type=chunk) [Profit/(Loss) Attributable to Owners of the Company](index=17&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%BA%A2%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) This year, profit attributable to owners of the company was RMB 17,445 thousand, successfully reversing last year's loss of RMB 32,735 thousand, primarily influenced by factors such as the aforementioned revenue and gross profit growth Profit/(Loss) Attributable to Owners of the Company | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) attributable to owners of the Company | 17,445 | (32,735) | [Earnings/(Loss) Per Share](index=17&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) This year, basic and diluted earnings per share were both RMB 1.68 cents, representing a significant improvement from a loss of RMB 3.16 cents per share in the prior year Earnings/(Loss) Per Share | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and diluted earnings/(loss) per share | 1.68 | (3.16) | [Capital Structure, Liquidity and Financial Resources](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B%E3%80%81%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains a healthy liquidity position, primarily using internal resources for working capital needs. As of June 30, 2025, cash and cash equivalents, net current assets, and total assets less current liabilities all increased, with the Board prudently managing cash to address market uncertainties - The Group maintains a healthy liquidity position, primarily utilizing internal resources to meet working capital requirements[41](index=41&type=chunk)[42](index=42&type=chunk) Liquidity Position | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 1,456,416 | 1,417,002 | | Net current assets | 1,475,948 | 1,435,034 | | Total assets less current liabilities | 1,726,384 | 1,709,004 | - The Group holds most of its cash in banks to support the development of its principal operating subsidiary, Fujian Shangrun, and prudently monitors market conditions to determine capital deployment[42](index=42&type=chunk) [Borrowings](index=18&type=section&id=%E5%80%9F%E8%B2%B8) As of June 30, 2025, the Group had no bank borrowings - As of **June 30, 2025**, the Group had no bank borrowings[43](index=43&type=chunk) [Equity](index=18&type=section&id=%E6%AC%8A%E7%9B%8A) As of June 30, 2025, total equity attributable to owners of the company increased by approximately RMB 17,621 thousand to RMB 1,708,309 thousand Total Equity Attributable to Owners of the Company | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Increase | | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the Company | 1,708,309 | 1,690,688 | 17,621 | [Gearing Ratio](index=18&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the Group's gearing ratio was approximately 0.06, a slight increase from last year but still at a low level Gearing Ratio | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Gearing Ratio | 0.06 | 0.05 | [Use of Proceeds from Listing](index=19&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) As of June 30, 2025, most of the net proceeds from the company's listing have been utilized as planned, primarily for constructing production facilities, R&D, network development, and general working capital. RMB 24 million (HKD) for R&D is expected to be utilized by the end of 2030 Use of Net Proceeds from Listing | Purpose | Latest Proposed Net Proceeds (HKD millions) | Unutilized Net Proceeds as of June 30, 2025 (HKD millions) | Expected Timeline for Utilization of Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | | Construction of production facilities for new products | 652 | — | Not applicable | | Research and development work | 238 | 24 | By end of 2030 | | Network development and sales support services | 45 | — | Not applicable | | Development of information systems | 4 | — | Not applicable | | General working capital | 104 | — | Not applicable | | **Total** | **1,043** | **24** | | - The unutilized balance of net proceeds is placed in short-term deposits with financial institutions[47](index=47&type=chunk) [Material Investments](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group held no material investments during the current year - The Group held no material investments during the current year[48](index=48&type=chunk) [Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=20&type=section&id=%E6%94%B6%E8%B3%BC%E8%88%87%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD) The Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the current year - The Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the current year[49](index=49&type=chunk) [Employees](index=20&type=section&id=%E5%83%B1%E5%93%A1) As of June 30, 2025, the Group had a total of 448 employees, with staff costs of approximately RMB 40,070 thousand. To incentivize employees, the company adopted a share option scheme this year and granted 33,474,000 share options Employee Information | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total number of employees | 448 people | 436 people | | Staff costs (excluding directors' emoluments) | RMB 40,070 thousand | RMB 38,340 thousand | - The company adopted a share option scheme on February 13, 2025, and granted **33,474,000 share options** to eligible participants on June 20, 2025[50](index=50&type=chunk) [Pledge of Assets](index=20&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had not pledged any of its assets - As of **June 30, 2025**, the Group had not pledged any of its assets[52](index=52&type=chunk) [Future Plans for Material Investments or Capital Assets and Expected Sources of Funding](index=20&type=section&id=%E6%9C%89%E9%97%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83%E5%8F%8A%E9%A0%90%E6%9C%9F%E8%B3%87%E9%87%91%E4%BE%86%E6%BA%90) As of June 30, 2025, the Group had no future plans for material investments or capital assets and will continue to monitor industry developments and regularly review its business expansion plans - As of **June 30, 2025**, the Group had no future plans for material investments or capital assets[53](index=53&type=chunk) - The Group will continue to closely monitor industry developments and regularly review its business expansion plans[53](index=53&type=chunk) [Exchange Rate Fluctuation Risk](index=21&type=section&id=%E5%BD%99%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group's foreign exchange risk primarily arises from financial assets and liabilities denominated in USD and HKD. This year, the Group did not use financial instruments to hedge currency risk and will continue to monitor it closely - The Group's foreign exchange risk primarily arises from financial assets and liabilities denominated in USD and HKD[54](index=54&type=chunk) - This year, the Group did not use financial instruments to hedge currency risk and will continue to monitor it closely[54](index=54&type=chunk) [Capital Commitments](index=21&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group had no capital expenditures contracted but not provided for in the consolidated financial statements - As of **June 30, 2025**, the Group had no capital expenditures contracted but not provided for in the consolidated financial statements[55](index=55&type=chunk) [Contingent Liabilities](index=21&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of **June 30, 2025**, the Group had no material contingent liabilities[56](index=56&type=chunk) [Dividends](index=21&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any final dividend for the current year - The Board does not recommend the payment of any final dividend for the current year[57](index=57&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&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%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the current year, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the current year, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[58](index=58&type=chunk) [Events After Reporting Period](index=21&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Except for those disclosed in this announcement, no material events affecting the Group occurred from the end of the reporting period to the date of this announcement - No material events affecting the Group occurred from the end of the reporting period to the date of this announcement, other than those disclosed in this announcement[59](index=59&type=chunk) [Corporate Governance](index=21&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) This section details the company's adherence to corporate governance principles, including compliance with the Corporate Governance Code and the roles of its committees [Compliance with the Corporate Governance Code](index=21&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87%E7%9A%84%E9%81%B5%E5%AE%88%E6%83%85%E6%B3%81) The company largely complied with the Corporate Governance Code this year, with two deviations: the roles of Chairman and CEO are combined, and management provides updates semi-annually instead of monthly. The Board deems these deviations appropriate, ensuring checks and balances and timely information flow - The company complied with most provisions of the Corporate Governance Code this year but deviated from code provisions C.2.1 (combined roles of Chairman and Chief Executive Officer) and D.1.2 (management providing monthly updates)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - The Board believes combining the roles of Chairman and Chief Executive Officer is more efficient, with four independent non-executive directors ensuring checks and balances. Management provides comprehensive financial statements and other updates semi-annually, with timely updates on significant events, fulfilling the purpose of regular information provision[61](index=61&type=chunk)[62](index=62&type=chunk) [Model Code for Securities Transactions by Directors of Listed Issuers](index=22&type=section&id=%E4%B8%8A%E5%B8%82%E7%99%BC%E8%A1%8C%E4%BA%BA%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Model Code as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with it for the current year - The company has adopted the Model Code as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with it for the current year[63](index=63&type=chunk)[64](index=64&type=chunk) [Remuneration Committee](index=23&type=section&id=%E8%96%AA%E9%85%AC%E5%A7%94%E5%91%A1%E6%9C%83) Established in 2008, the Remuneration Committee comprises four independent non-executive directors, chaired by Mr. Chen Yuxiao, and advises the Board on remuneration policies and packages for directors and senior management - The Remuneration Committee was established in 2008, comprising four independent non-executive directors, with Mr. Chen Yuxiao as Chairman[65](index=65&type=chunk) - Its primary responsibility is to advise the Board on remuneration policies and packages for directors and senior management[65](index=65&type=chunk) [Nomination Committee](index=23&type=section&id=%E6%8F%90%E5%90%8D%E5%A7%94%E5%91%A1%E6%9C%83) Established in 2008, the Nomination Committee comprises four independent non-executive directors, chaired by Mr. Chen Yuxiao, and is responsible for reviewing the Board's structure, size, composition, and diversity, and recommending candidates for directorships, re-appointments, and succession planning - The Nomination Committee was established in 2008, comprising four independent non-executive directors, with Mr. Chen Yuxiao as Chairman[66](index=66&type=chunk) - Its primary responsibility is to review the Board's structure, size, composition, and diversity, and to recommend candidates for directorships, re-appointments, and succession planning to the Board[66](index=66&type=chunk) [Audit Committee](index=23&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%91%A1%E6%9C%83) Established in 2008, the Audit Committee comprises four independent non-executive directors, chaired by Mr. Chen Yuxiao, and assists the Board in providing independent oversight on financial reporting, internal controls, and risk management systems, having reviewed the full-year results for the current year - The Audit Committee was established in 2008, comprising four independent non-executive directors, with Mr. Chen Yuxiao as Chairman[67](index=67&type=chunk) - Its primary responsibility is to assist the Board in providing independent opinions on financial reporting, internal control, and risk management systems, and it has reviewed the full-year results for the current year[67](index=67&type=chunk) [Other Information](index=24&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers additional disclosures including annual general meeting details, auditor's scope, and publication of full-year results and annual report [Annual General Meeting and Closure of Register of Members](index=24&type=section&id=%E8%82%A1%E6%9D%B1%E9%80%B1%E5%B9%B4%E5%A4%A7%E6%9C%83%E5%8F%8A%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E6%89%8B%E7%BA%8C) The company's share transfer registration will be suspended from December 8 to December 11, 2025, to determine shareholders' eligibility to attend and vote at the Annual General Meeting. All share transfer documents must be submitted by 4:30 p.m. on December 5, 2025 - The register of members will be closed from **December 8 to December 11, 2025**, to determine shareholders' eligibility to attend and vote at the Annual General Meeting[68](index=68&type=chunk) - Share transfer documents must be submitted by **4:30 p.m. on December 5, 2025**[68](index=68&type=chunk) [Auditor's Scope of Work](index=24&type=section&id=%E5%9C%8B%E5%AF%8C%E6%B5%A9%E8%8F%AF%EF%BC%88%E9%A6%99%E6%B8%AF%EF%BC%89%E6%9C%83%E8%A8%88%E5%B8%AB%E4%BA%8B%E5%8B%99%E6%89%80%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E7%9A%84%E5%B7%A5%E4%BD%9C%E7%AF%84%E5%9C%8D) The Group's auditor, Crowe (HK) CPA Limited, has reconciled the financial data in the preliminary announcement with the audited consolidated financial statements, but their work does not constitute an assurance engagement, and no opinion or assurance conclusion has been expressed - The auditor, Crowe (HK) CPA Limited, has reconciled the financial data in the preliminary announcement with the audited consolidated financial statements[69](index=69&type=chunk) - The auditor's work does not constitute an assurance engagement, and no opinion or assurance conclusion has been expressed on the preliminary announcement[69](index=69&type=chunk) [Publication of Full-Year Results and Annual Report](index=25&type=section&id=%E5%88%8A%E7%99%BC%E5%85%A8%E5%B9%B4%E6%A5%AD%E7%B8%BE%E5%8F%8A%E5%B9%B4%E5%BA%A6%E5%A0%B1%E5%91%8A) This full-year results announcement has been published on the HKEX and company websites. The Group's full-year consolidated financial results for the current year have been reviewed by the Audit Committee, and the annual report will be dispatched to shareholders and published on the website in due course - The full-year results announcement has been published on the HKEX website and the company's website[70](index=70&type=chunk) - The Group's full-year consolidated financial results for the current year have been reviewed by the Audit Committee, and the annual report will be dispatched to shareholders and published on the website in due course[70](index=70&type=chunk)

CHINA FRONTIER TECHNOLOGY GROUP 中國前沿科技集團 股份代號：1661 （於開曼群島註冊成立的有限公司） 中 期 報 告 CHINA FRONTIER TECHNOLOGY GROUP Interim Report 目 錄 | 公司資料 | 2 | | --- | --- | | 管理層討論與分析 | 3 | | 披露權益資料 | 11 | | 重要事項 | 14 | | 企業管治及其他資料 | 20 | | 簡明合併損益及其他綜合收益表 | 22 | | 簡明合併財務狀況表 | 24 | | 簡明合併權益變動表 | 26 | | 簡明合併現金流量表 | 27 | | 中期財務資料附註 | 28 | 2025 中期報告 中國前沿科技集團 1 公司資料 執行董事 任松女士 （聯席主席） 常海松先生 張盼盼女士 任文女士（亦稱任國尊女士） （聯席主席） （於2025年7月29日辭任） 盛杰先生 （副主席） （於2025年7月29日辭任） 黃文強先生 （聯席主席） （於2025年9月19日辭任） 王潔女士（於2025年9月19日辭任） 獨立非執行董事 高文娟女士 梁曉文女士 吳明聰先生 ...

Financial Performance - New Gonow Recreational Vehicles Inc. reported a significant increase in revenue, achieving a total of HK$240 million for the interim period, representing a growth of 25% compared to the previous year[9]. - The company reported a revenue of RMB 500 million for the first half of 2025, representing a 20% increase compared to the same period last year[19]. - Total revenue for the six months ended June 30, 2025, amounted to RMB 411.7 million, a decrease of 2.4% compared to RMB 422.0 million for the same period in 2024[44]. - Revenue from RV sales decreased by 7.4% to RMB 367.6 million, down from RMB 396.9 million in the previous year, primarily due to a decrease in sales volume[45]. - Profit for the period was RMB 30,997,000, down 23.3% from RMB 40,430,000 in 2024[21]. - Total comprehensive income for the period was RMB 28,101,000, a decrease of 29.6% from RMB 39,870,000 in 2024[194]. User Growth and Market Expansion - The company has expanded its user base, now serving over 150,000 active customers, which is a 30% increase year-over-year[10]. - User data showed a growth of 15% in active users, reaching 1.2 million by June 30, 2025[19]. - The company plans to enter new markets in Southeast Asia, aiming for a market share of 10% within the next two years[12]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2026[19]. - The company is exploring potential acquisitions in the RV parts sector to enhance its supply chain efficiency[19]. Research and Development - Investment in research and development has increased by 20%, focusing on innovative vehicle technologies and sustainable practices[14]. - Research and development expenses increased by 30% to RMB 100 million, focusing on new product innovations[19]. - R&D expenses increased by 112.5% to RMB 11.9 million for the six months ended June 30, 2025, from RMB 5.6 million for the same period in 2024[65]. - The company has established a strategic partnership with a leading technology firm to enhance its R&D capabilities[19]. Financial Strategy and Capital Management - Cash flow from operations increased by 40%, reaching HK$50 million, providing a solid foundation for future investments[39]. - The company has initiated a capital raising plan, targeting HK$620 million through a share issuance to support growth initiatives[6]. - The Group's capital expenditures for the six months ended June 30, 2025, were RMB 2.3 million, down from RMB 3.0 million for the same period in 2024[88]. - The Group's investment strategy focuses on generating income and achieving capital appreciation to enhance shareholder returns[98]. Corporate Governance - Corporate governance practices have been strengthened, with the establishment of a new audit committee to enhance oversight and compliance[22]. - The Audit Committee has reviewed the unaudited interim consolidated financial statements for the six months ended June 30, 2025, confirming compliance with applicable accounting standards[144]. - The company has established an Audit Committee comprising three independent non-executive Directors to oversee financial reporting and risk management[143]. - The company has complied with the applicable code provisions of the Corporate Governance Code from the Listing Date to June 30, 2025, except for certain deviations[124]. Product Development - A new product line of electric RVs is set to launch in Q3 2025, expected to contribute an additional RMB 200 million in revenue[19]. - The company launched the SRH-Hybrid 2025, expanding its hybrid towable RV lineup with six models[28]. - The SRH-Hybrid 2025 features advanced technology and luxury, targeting families and solo travelers in the competitive RV market[28]. - The company has discontinued 5 RV models to better cater to market demands, resulting in a total of 50 RV models as of June 30, 2025[22]. Challenges and Risks - The company reported a gross profit margin improved to 35%, up from 30% in the previous period, reflecting better cost management and pricing strategies[34]. - Gross profit decreased by 9.8% to RMB 121,629,000 from RMB 134,903,000 in the same period last year[21]. - The backlog as of June 30, 2025, included 1,535 units under Snowy River with a contract value of A$88,498,765.3 (RMB 414,324,669.5)[27]. - The Regent brand delivered only 25 units, representing a significant decrease of 67.9% from 78 units in the first half of 2024[25]. Future Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[12]. - The company expects the Canadian market to become a core growth engine, with plans to form demonstration sales cases by 2026 and increase investment in product localization[36].

中國光大銀行二零二五年中期報告 中國光大銀行股份有限公司 （於中華人民共和國註冊成立的股份有限公司） 股份代碼：6818 中期報告 地址：中國北京西城區太平橋大街25號中國光大中心 電話：(86)10-63636363 傳真：(86)10-63639066 郵編：100033 網址：www.cebbank.com 此中報以環保紙印製 重要提示 本行董事會、監事會及董事、監事、高級管理人員保證本報告內容的真實、準確、完整，不存在虛假記載、 誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 本行第九屆董事會第三十次會議於2025年8月29日在北京召開，審議通過本行《2025年中期報告》。會議應出 席董事16名，實際出席董事16名。本行部分監事列席本次會議。 本行按照中國企業會計準則和國際財務報告會計準則編製的2025年中期財務報告已經畢馬威華振會計師事務 所（特殊普通合夥）和畢馬威會計師事務所分別根據中國和國際審閱準則審閱。 本行董事長吳利軍、行長郝成、副行長及首席財務官劉彥、財務會計部總經理盧健保證本報告中財務報告的 真實、準確、完整。 本報告除特別說明外，金額幣種為人民幣。 截至本報告披露日，董事會尚未審議 ...

SUNSHINE OILSANDS LTD. 陽光油砂有限公司* （一家根據加拿大阿爾伯塔省商業公司法註冊成立的有限公司） （香港聯交所： 2012 ） 二零二五年中期報告 * 僅供識別 財務數據總結 截至二零二五年六月三十日止六個月的石油銷售額（扣除特許權使用費）從截至二零二四年六月三十日止六個月 約 2,150 萬加元下降至零加元，下降之主要原因是由於二零二五年第一季及第二季 West Ells 設備維護所導致的收 入損失。 截至二零二五年六月三十日止三個月的淨營業虧損（不包括一次性匯兌損失）為約 210 萬加元，而二零二四年同 期淨營業收入則為約 113 萬加元。 截至二零二五年六月三十日止三個月的經營現金流為淨流出約 250 萬加元，相較於二零二四年同期錄得淨流入約 80 萬加元。截至二零二五年六月三十日止三個月的經營現金流虧損擴大主之要是二零二五年第一季及第二季 West Ells 設備維護所導致的收入損失。 二零二五年第二季度，歸屬於本公司股東的淨虧損為約 200 萬加元，對比去年同期的淨虧損為約 1,100 萬加元。 於二零二五年六月三十日、二零二四年十二月三十一日及二零二四年六月三十日，本公司 ...

Financial Performance - For the six months ended June 30, 2025, the company reported revenue of approximately RMB 682.9 million, an increase of 127.3% compared to RMB 300.5 million for the same period in 2024[9]. - The company's net profit decreased by 62.6% to approximately RMB 10.7 million, down from RMB 28.6 million in the previous year[9]. - The total billing for the six months ended June 30, 2025, increased by 121.3% to approximately RMB 963.1 million, compared to RMB 435.2 million for the same period in 2024[12]. - The gross profit for the six months ended June 30, 2025, was approximately RMB 33.2 million, a decrease of 22.7% from RMB 43.0 million in the previous year[7]. - The company reported a basic earnings per share of approximately RMB 0.02 for the six months ended June 30, 2025, down from RMB 0.06 in the same period of 2024[9]. - Revenue from mobile advertising solutions increased by approximately 137.8% from about RMB 286.0 million for the six months ended June 30, 2024, to about RMB 680.2 million for the six months ended June 30, 2025[21]. - Revenue from advertising distribution services decreased by approximately 81.4% from about RMB 14.5 million for the six months ended June 30, 2024, to about RMB 2.7 million for the six months ended June 30, 2025[22]. - Operating profit decreased to RMB 13,343 thousand from RMB 31,102 thousand year-over-year, reflecting a decline of 57.0%[91]. - Profit before tax was RMB 11,139 thousand, compared to RMB 29,710 thousand in the previous year, a decrease of 62.6%[91]. - The total comprehensive income for the period was RMB 10,367 thousand, compared to RMB 31,397 thousand in the same period last year, a decrease of 66.9%[93]. Client and Market Engagement - The company served 188 clients across various industries, including technology, internet services, financial services, and e-commerce[9]. - The company is focused on enhancing its ability to provide comprehensive marketing services to high-quality clients by concentrating core resources on rapidly growing industries[12]. - The company aims to enhance its marketing services capabilities for high-quality clients by focusing resources on rapidly growing industries and key clients[19]. - The company plans to expand its mobile advertising distribution network and enhance competitiveness by leveraging stable high-traffic media platforms and rapidly growing niche marketing platforms[14]. - The company plans to continue expanding its short video production capabilities to meet diverse client marketing needs[25]. Cost and Expense Management - Service costs surged from approximately RMB 257.5 million to approximately RMB 649.7 million, an increase of 152.3%, primarily due to changes in rebate policies from media partners[33]. - Sales and marketing expenses increased from approximately RMB 1.3 million to approximately RMB 1.7 million, a rise of 30.8%, driven by the expansion of the business and related employee costs[36]. - General and administrative expenses rose from approximately RMB 10.8 million to approximately RMB 14.9 million, an increase of 38.0%, mainly due to R&D expansion and increased operational staff costs[37]. - Employee costs totaled approximately RMB 14.7 million for the six months ended June 30, 2025, compared to RMB 11.1 million for the same period in 2024[63]. Financial Position and Ratios - Cash and cash equivalents decreased from approximately RMB 149.4 million as of December 31, 2024, to approximately RMB 106.3 million as of June 30, 2025, mainly due to cash used in operating activities[43]. - The company's debt-to-equity ratio increased to approximately 20.4% as of June 30, 2025, compared to 6.5% as of December 31, 2024[42]. - The actual weighted average interest rate on bank and other loans was approximately 5.2% for the six months ended June 30, 2025, compared to 4.8% for the six months ended June 30, 2024[42]. - Current ratio decreased to 2.9 times as of June 30, 2025, from 4.0 times as of December 31, 2024[53]. - The net cash used in operating activities for the six months ended June 30, 2025, was RMB (89,240) thousand, slightly improved from RMB (92,119) thousand in the same period of 2024[101]. - The company's equity attributable to shareholders increased to RMB 622,383 thousand from RMB 612,016 thousand, reflecting a growth of about 1.9%[96]. Strategic Initiatives - The company aims to apply commercializable artificial intelligence technology to improve marketing efficiency across the entire content production and optimization process[14]. - The company is seeking opportunities for collaboration or investment in strong companies to enhance overall technical strength and create tailored advertising content for specific markets[18]. - The company is exploring business collaborations and acquisition opportunities with larger companies to strengthen its technical capabilities and expand its customer base in key overseas markets[28]. - The company aims to explore business cooperation and acquisition opportunities with larger companies, utilizing part of the IPO proceeds[58]. Shareholder and Governance Information - Major shareholders hold 356,250,000 shares, representing 71.25% of the company's issued shares[74]. - The company has no plans to declare dividends for the six months ended June 30, 2025[60]. - The company has no changes in director information that require disclosure since the last annual report date[73]. - The company maintained sufficient public float as per the listing rules as of June 30, 2025[83]. Compliance and Audit - The audit committee confirmed compliance with applicable accounting principles and standards for the financial report[81]. - The company has not applied any new or revised standards that are not yet effective during the current accounting period[105].

Corporate Information This section provides an overview of the company's governance structure, including board and committee compositions, along with essential corporate details such as registered offices, key advisors, and listing information [Board of Directors](index=3&type=section&id=Board%20of%20Directors) This chapter outlines the composition of the company's Board of Directors, including executive, non-executive, and independent non-executive directors, as well as members of the audit, remuneration, and nomination committees - The Board of Directors includes executive directors such as Mr. Lu Ming (Chairman), Mr. Lu Jinliang, and Mr. Lu Zhicong; non-executive directors such as Mr. Lu Yongmao and Mr. Lu Yongnan; and independent non-executive directors such as Professor Zhang Jiayu, Ms. Wu Hua, and Mr. Xiong Lusheng[4](index=4&type=chunk)[5](index=5&type=chunk) - Professor Zhang Jiayu chairs the Audit Committee, Mr. Xiong Lusheng chairs the Remuneration Committee, and Mr. Lu Ming chairs the Nomination Committee[4](index=4&type=chunk)[5](index=5&type=chunk) [Company Details](index=3&type=section&id=Company%20Details) This chapter provides detailed information on the company's authorized representatives, company secretary, registered office, China headquarters, Hong Kong principal place of business, share registrar, principal banks, legal advisors, auditor, and listing information - The company's authorized representatives are Mr. Lu Jinliang and Mr. Chan Pui Tak, with Mr. Chan Pui Tak also serving as the company secretary[5](index=5&type=chunk) - The company's registered office is in the Cayman Islands, its China headquarters is in Minhang District, Shanghai, and its principal place of business in Hong Kong is on Hennessy Road, Wan Chai[5](index=5&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk) - The company's auditor is Zhongzheng Tianheng Certified Public Accountants Co., Ltd., and legal advisors include Chan, Fong & Ng Solicitors LLP (Hong Kong law) and Harneys (Cayman Islands law)[8](index=8&type=chunk)[9](index=9&type=chunk) - The company's ordinary shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since July 15, 2020, with stock code 06968.HK[8](index=8&type=chunk)[9](index=9&type=chunk) Management Discussion and Analysis This section provides a comprehensive analysis of the company's operational and financial performance, strategic responses to market challenges, and detailed reviews of business segments, financial health, and human resources [GENERAL OVERVIEW](index=6&type=section&id=GENERAL%20OVERVIEW) In the first half of 2025, the real estate sector continued to face downward pressure, with the Group delivering properties worth approximately RMB1,631 million, while implementing strategies to strengthen marketing, streamline expenses, focus on cash collection, and ensure quality delivery amidst an anticipated challenging market in the second half - In the first half of 2025, the real estate sector as a whole continued to face downward pressure[10](index=10&type=chunk)[13](index=13&type=chunk) 2025 First Half Property Delivery Overview | Indicator | Amount/Area | | :--- | :--- | | Delivery Amount | Approximately RMB1,631 million | | Delivery Area | Approximately 177,042 square meters | - The Group's response strategies include: strengthening marketing (precise and diversified strategies, enhancing inventory destocking and cash collection management, innovative online marketing, external channel cooperation), expense reduction (expanding cost control scope, optimizing debt structure and financing costs), focusing on core business (prioritizing cash collection to support cash flow), and meticulous construction (continuously improving engineering management and comprehensive quality control system)[11](index=11&type=chunk)[13](index=13&type=chunk) - The Chinese real estate market is expected to remain under adjustment pressure in the second half of 2025, with financial stability being a primary consideration for property developers, and survival and development hinging on internal improvements, operational efficiency, and product quality enhancement[12](index=12&type=chunk)[14](index=14&type=chunk) - The Group's future plans include: focusing on product development and customer service, strict expense control, prioritizing cash collection, adjusting financing structure to reduce costs, continuous talent review, strengthening incentives and performance indicators, and actively fulfilling social responsibilities[15](index=15&type=chunk)[19](index=19&type=chunk) [Business Review](index=7&type=section&id=Business%20Review) The Group's revenue primarily derives from property sales, totaling approximately RMB1,631 million for the six months ended June 30, 2025, with contract sales of approximately RMB2,700 million and a decrease in contract liabilities compared to the end of 2024, while land reserves total approximately 3,795,222 square meters, with 47 projects located in the Yangtze River Delta region - The Group's revenue primarily derives from property sales[16](index=16&type=chunk)[20](index=20&type=chunk) 2025 First Half Business Key Data | Indicator | Amount/Area | | :--- | :--- | | Total Revenue | Approximately RMB1,631 million | | Unaudited Contract Sales | Approximately RMB2,700 million | | Contract Sales GFA | Approximately 221,613 square meters | | Contract Sales ASP | Approximately RMB12,183/square meter | | Contract Liabilities (June 30, 2025) | Approximately RMB2,033 million | | Contract Liabilities (December 31, 2024) | Approximately RMB2,746 million | [Sales of properties](index=8&type=section&id=Sales%20of%20properties) For the six months ended June 30, 2025, the Group recognized property sales revenue of approximately RMB1,631 million, with a total gross floor area of approximately 177,042 square meters and an average selling price of approximately RMB9,214 per square meter, with Fuyang, Taizhou, and Wuhu being the largest contributors to revenue 2025 First Half Recognized Property Sales Data | Indicator | Amount/Area | | :--- | :--- | | Recognized Property Sales Revenue | Approximately RMB1,631 million | | Recognized Total Gross Floor Area | Approximately 177,042 square meters | | Recognized Average Selling Price | Approximately RMB9,214/square meter | 2025 First Half Recognized Sales by City | City | Recognized Revenue (RMB thousand) | | :--- | :--- | | Fuyang | 451,443 | | Taizhou | 331,536 | | Wuhu | 164,763 | | Hefei | 127,155 | | Yancheng | 126,056 | | Yangzhou | 78,175 | | Suzhou | 59,539 | | Huangshan | 56,300 | | Huaian | 41,749 | | Guangzhou | 39,758 | | Luoyang | 35,853 | | Haian | 33,990 | | Nanjing | 27,099 | | Foshan | 16,107 | | Guizhou | 12,917 | | Changzhou | 10,193 | | Parking lots & garages/storage facilities & other residual properties | 18,686 | | **Total** | **1,631,319** | [Land reserves](index=8&type=section&id=Land%20reserves) As of June 30, 2025, the Group (together with joint ventures and associates) held 54 projects with total land reserves of approximately 3,795,222 square meters, of which 47 projects are located in the Yangtze River Delta region, with Guangdong, Jiangsu, and Anhui provinces being the primary areas for land reserves Land Reserve Overview as of June 30, 2025 | Indicator | Value | | :--- | :--- | | Number of Projects | 54 | | Total Land Reserves | Approximately 3,795,222 square meters | | Number of Projects in Yangtze River Delta | 47 | Land Reserves by Province/City as of June 30, 2025 | Province/City | Total Land Reserves (square meters) | Percentage of Total Land Reserves (%) | | :--- | :--- | :--- | | Guangdong | 1,606,729 | 42 | | Jiangsu | 1,066,735 | 29 | | Anhui | 559,273 | 15 | | Guizhou | 234,152 | 6 | | Zhejiang | 154,694 | 4 | | Henan | 132,350 | 3 | | Sichuan | 26,504 | 1 | | Shanghai | 14,785 | 0 | | **Total** | **3,795,222** | **100%** | [FINANCIAL REVIEW](index=10&type=section&id=FINANCIAL%20REVIEW) For the six months ended June 30, 2025, the Group's total revenue was approximately RMB1,631 million, a year-on-year decrease of approximately 70%, resulting in a gross loss of RMB450 million and a net loss of RMB666 million, facing liquidity pressure with senior notes in default, while the net gearing ratio increased to 49% and the total cash to short-term debt ratio decreased to 0.2 times 2025 First Half Key Financial Performance | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,631 | 5,367 | -70% | | Cost of Sales | 2,081 | 5,077 | -59% | | Gross Loss/(Profit) | (450) | 290 | Turned to loss | | Gross Loss Rate/(Profit Rate) | -28% | 5% | Decreased | | Net Loss | (666) | (154) | Loss widened | | Loss Attributable to Owners of the Company | (330) | (76) | Loss widened | | Basic and Diluted Loss Per Share | (0.20) RMB/share | (0.05) RMB/share | Loss widened | - The decrease in revenue was primarily attributable to a reduction in contract sales and recognition of properties sold[32](index=32&type=chunk)[37](index=37&type=chunk) - The decline in gross profit margin was mainly due to unfavorable market conditions and an increase in impairment provisions recognized for properties under development compared to the same period last year[35](index=35&type=chunk)[39](index=39&type=chunk) [Overall performance](index=10&type=section&id=Overall%20performance) For the six months ended June 30, 2025, the Group reported total revenue of approximately RMB1,631 million, a gross loss of RMB450 million, a net loss of RMB666 million, and a loss attributable to owners of the company of RMB330 million 2025 First Half Overall Financial Performance | Indicator | Amount (RMB million) | | :--- | :--- | | Total Revenue | 1,631 | | Gross Loss | 450 | | Net Loss | 666 | | Loss Attributable to Owners of the Company | 330 | [Revenue](index=10&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's total revenue was approximately RMB1,631 million, a decrease of approximately 70% compared to the same period last year, primarily due to reduced contract sales and recognition of properties sold Revenue Comparison | Period | Amount (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | | 2025 First Half | 1,631 | -70% | | 2024 First Half | 5,367 | - | - The decrease in revenue was primarily attributable to a reduction in contract sales and recognition of properties sold[32](index=32&type=chunk)[37](index=37&type=chunk) [Cost of sales](index=10&type=section&id=Cost%20of%20sales) For the six months ended June 30, 2025, the Group's cost of sales was approximately RMB2,081 million, a decrease from RMB5,077 million in the same period last year, but the net impairment provision for properties under development and completed properties held for sale increased to RMB392 million (2024 same period: RMB121 million) Cost of Sales Comparison | Period | Amount (RMB million) | | :--- | :--- | | 2025 First Half | 2,081 | | 2024 First Half | 5,077 | Net Impairment Provision Comparison | Period | Amount (RMB million) | | :--- | :--- | | 2025 First Half | 392 | | 2024 First Half | 121 | [Gross (loss)/profit](index=10&type=section&id=Gross%20%28loss%29%2Fprofit) For the six months ended June 30, 2025, the Group recorded a gross loss of approximately RMB450 million, with a gross loss margin of approximately 28%, compared to a gross profit of RMB290 million and a gross profit margin of approximately 5% in the same period last year, primarily due to unfavorable market conditions and increased impairment of properties under development Gross Profit/Loss and Margin Comparison | Period | Gross Profit/Loss (RMB million) | Gross Profit/Loss Margin | | :--- | :--- | :--- | | 2025 First Half | (450) (Gross Loss) | -28% | | 2024 First Half | 290 (Gross Profit) | 5% | - The decline in gross profit margin was mainly due to unfavorable market conditions and an increase in impairment provisions recognized for properties under development compared to the same period last year[35](index=35&type=chunk)[39](index=39&type=chunk) [Other income/(expenses) and other gains/(losses), net](index=11&type=section&id=Other%20income%2F%28expenses%29%20and%20other%20gains%2F%28losses%29%2C%20net) For the six months ended June 30, 2025, the Group recorded other income of approximately RMB7 million, compared to other expenses of approximately RMB1 million in the same period last year, primarily comprising rental, management, and consulting service income of approximately RMB11 million, offset by deferred tax expenses of approximately RMB4 million Other Income/(Expenses) and Other Gains/(Losses), Net Comparison | Period | Amount (RMB million) | | :--- | :--- | | 2025 First Half | 7 (Income) | | 2024 First Half | (1) (Expenses) | - Primarily composed of rental, management, and consulting service income (approximately **RMB11 million**) and deferred tax expenses (approximately **RMB4 million**)[41](index=41&type=chunk)[45](index=45&type=chunk) [Selling and marketing expenses](index=11&type=section&id=Selling%20and%20marketing%20expenses) For the six months ended June 30, 2025, the Group's selling and marketing expenses were approximately RMB64 million, a year-on-year decrease of approximately 28%, mainly due to reduced recognition of properties sold and sales commissions, marketing and advertising cost control measures, and lower staff costs Selling and Marketing Expenses Comparison | Period | Amount (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | | 2025 First Half | 64 | -28% | | 2024 First Half | 89 | - | - The decrease was attributable to reduced recognition of properties sold and sales commissions, marketing and advertising cost control measures, and lower staff costs[42](index=42&type=chunk)[46](index=46&type=chunk) [General and administrative expenses](index=11&type=section&id=General%20and%20administrative%20expenses) For the six months ended June 30, 2025, the Group's general and administrative expenses were approximately RMB67 million, a year-on-year decrease of approximately 6%, primarily due to further streamlining of the organizational structure for cost reduction and efficiency improvement General and Administrative Expenses Comparison | Period | Amount (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | | 2025 First Half | 67 | -6% | | 2024 First Half | 71 | - | - The decrease was primarily due to further streamlining of the organizational structure for cost reduction and efficiency improvement[43](index=43&type=chunk)[47](index=47&type=chunk) [Finance costs – net](index=11&type=section&id=Finance%20costs%20%E2%80%93%20net) For the six months ended June 30, 2025, the Group's net finance costs were approximately RMB29 million, a year-on-year decrease of approximately 29%, primarily due to a reduction in the average principal balance of interest-bearing borrowings Net Finance Costs Comparison | Period | Amount (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | | 2025 First Half | 29 | -29% | | 2024 First Half | 41 | - | - The decrease was attributable to a reduction in the average principal balance of interest-bearing borrowings[44](index=44&type=chunk)[48](index=48&type=chunk) [Share of results of joint ventures and associates](index=12&type=section&id=Share%20of%20results%20of%20joint%20ventures%20and%20associates) For the six months ended June 30, 2025, the share of results of joint ventures and associates was a loss of approximately RMB6 million, compared to a loss of approximately RMB8 million in the same period last year, consistent with the decline in property sales revenue Share of Results of Joint Ventures and Associates Comparison | Period | Amount (RMB million) | | :--- | :--- | | 2025 First Half | (6) (Loss) | | 2024 First Half | (8) (Loss) | - The loss was consistent with the decline in property sales revenue from joint ventures and associates[50](index=50&type=chunk)[55](index=55&type=chunk) [Income tax expenses](index=12&type=section&id=Income%20tax%20expenses) For the six months ended June 30, 2025, income tax expenses were approximately RMB57 million, compared to RMB236 million in the same period last year Income Tax Expenses Comparison | Period | Amount (RMB million) | | :--- | :--- | | 2025 First Half | 57 | | 2024 First Half | 236 | [Loss and total comprehensive loss for the period](index=12&type=section&id=Loss%20and%20total%20comprehensive%20loss%20for%20the%20period) For the six months ended June 30, 2025, the Group's loss and total comprehensive loss for the period was approximately RMB666 million (2024 same period: RMB154 million), with loss attributable to owners of the company of approximately RMB330 million (2024 same period: RMB76 million), and basic and diluted loss per share of RMB0.20 (2024 same period: RMB0.05) Loss and Total Comprehensive Loss for the Period Comparison | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | | :--- | :--- | :--- | | Loss and Total Comprehensive Loss for the Period | 666 | 154 | | Loss Attributable to Owners of the Company | 330 | 76 | | Basic and Diluted Loss Per Share | 0.20 RMB/share | 0.05 RMB/share | [Liquidity and financial resources](index=12&type=section&id=Liquidity%20and%20financial%20resources) As of June 30, 2025, the Group's total cash was approximately RMB670 million, a decrease from RMB839 million at the end of 2024, while total bank and other borrowings were approximately RMB4,290 million, a decrease of approximately 6% from the end of 2024, with approximately RMB3,375 million due within one year - The Group primarily funds its working capital, capital expenditures, and other capital requirements through cash generated from operations, including proceeds from property pre-sales and sales[59](index=59&type=chunk)[63](index=63&type=chunk) Cash and Borrowings Situation | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Cash | 670 | 839 | Decreased | | Total Bank and Other Borrowings | 4,290 | 4,552 | Decreased 6% | | Borrowings Due Within One Year | 3,375 | 2,921 | Increased | | Borrowings Due After One Year | 915 | 1,631 | Decreased | - For the six months ended June 30, 2025, total borrowings repaid were approximately **RMB274 million**[61](index=61&type=chunk)[63](index=63&type=chunk) [Senior notes](index=14&type=section&id=Senior%20notes) On November 18, 2024, all 2024 senior notes were redeemed, and new notes with a principal amount of USD180,551,641 (2025 November Notes) were issued at a fixed annual interest rate of 9.5%; however, due to liquidity pressure, the company failed to pay interest due on May 18, 2025, constituting an event of default, and major noteholders have declared the principal and accrued unpaid interest immediately due and payable, with the company currently communicating with noteholders to seek a resolution - On November 18, 2024, all 2024 senior notes were redeemed, and new notes with a principal amount of **USD180,551,641** (2025 November Notes) were issued at a fixed annual interest rate of **9.5%**, with interest payable semi-annually[65](index=65&type=chunk)[69](index=69&type=chunk) - On May 18, 2025, interest of **USD8,576,203** related to the 2025 November Notes became due, which the company failed to pay due to liquidity pressure, constituting an event of default on June 17, 2025[66](index=66&type=chunk)[69](index=69&type=chunk) - On June 19, 2025, major beneficial noteholders (beneficially owning approximately **USD161.9 million** in principal) issued a notice declaring the principal, premium, and accrued unpaid interest of the 2025 November Notes immediately due and payable[67](index=67&type=chunk)[70](index=70&type=chunk) - As of the date of this interim report, the company is still communicating with the relevant noteholders to seek an overall solution for the debt[67](index=67&type=chunk)[70](index=70&type=chunk) [Key financial ratios](index=14&type=section&id=Key%20financial%20ratios) As of June 30, 2025, the Group's net gearing ratio was 49% (end of 2024: 46%), the asset-liability ratio excluding contract liabilities was approximately 60% (end of 2024: 61%), and the total cash to short-term debt ratio was 0.2 times (end of 2024: 0.3 times), with the current ratio decreasing from 1.62 times to 1.57 times but remaining stable Key Financial Ratios Comparison | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Gearing Ratio | 49% | 46% | | Asset-Liability Ratio Excluding Contract Liabilities | 60% | 61% | | Total Cash to Short-Term Debt Ratio | 0.2 times | 0.3 times | | Current Ratio | 1.57 times | 1.62 times | - The Group will continue to effectively manage working capital through working capital management policies, utilizing available financial resources (proceeds from sales and pre-sales, bank financing, and other borrowings), and negotiating optimized payment arrangements with contractors[68](index=68&type=chunk)[71](index=71&type=chunk) [Foreign exchange risk](index=15&type=section&id=Foreign%20exchange%20risk) The Group primarily operates in China and, apart from USD-denominated offshore senior notes, did not have other significant direct foreign exchange fluctuation risks for the six months ended June 30, 2025; the directors expect RMB exchange rate fluctuations not to have a material adverse impact on operations, and the Group has not entered into any hedging transactions - The Group primarily operates in China and, apart from USD-denominated offshore senior notes, has no other significant direct foreign exchange fluctuation risks[73](index=73&type=chunk)[78](index=78&type=chunk) - The directors expect RMB exchange rate fluctuations not to have a material adverse impact on the Group's operations[73](index=73&type=chunk)[78](index=78&type=chunk) - As of June 30, 2025, the Group has not entered into any hedging transactions and will manage foreign exchange risk by closely monitoring exchange rate movements[74](index=74&type=chunk)[78](index=78&type=chunk) [Interest rate risk](index=15&type=section&id=Interest%20rate%20risk) The Group's interest rate risk primarily arises from borrowings, most of which are denominated in RMB and influenced by the People's Bank of China's benchmark interest rates; the Group manages interest rate risk by monitoring interest rate fluctuation trends and their impact, and by adjusting its debt portfolio - The Group's interest rate risk arises from borrowings, with most borrowings denominated in RMB and primarily influenced by benchmark interest rates set by the People's Bank of China, except for fixed-rate offshore senior notes[75](index=75&type=chunk)[79](index=79&type=chunk) - The Group manages interest rate risk by closely monitoring interest rate fluctuation trends and their impact on interest rate risk, as well as by monitoring its debt portfolio[75](index=75&type=chunk)[79](index=79&type=chunk) [Pledge of assets](index=15&type=section&id=Pledge%20of%20assets) As of June 30, 2025, certain bank and other borrowings of the Group were secured by pledged time deposits, equity interests in Group companies, properties under development, completed properties held for sale, and investment properties with a total carrying value of approximately RMB13,027 million (end of 2024: RMB13,060 million) Asset Pledge Situation | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Carrying Value of Pledged Assets | 13,027 | 13,060 | - Pledged assets include pledged time deposits, equity interests in Group companies, properties under development, completed properties held for sale, and investment properties[76](index=76&type=chunk)[80](index=80&type=chunk) [Financial guarantees and contingent liabilities](index=16&type=section&id=Financial%20guarantees%20and%20contingent%20liabilities) As of June 30, 2025, the Group's total financial guarantees amounted to approximately RMB4,782 million, primarily comprising guarantees for purchasers' mortgage financing and guarantees for joint venture borrowings; the directors believe the likelihood of default by purchasers and joint ventures is remote, thus financial guarantees measured at fair value are insignificant, and no liabilities have been recognized Total Financial Guarantees Comparison | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Guarantees for Mortgage Financing of Certain Purchasers | 4,548,156 | 6,042,682 | | Guarantees for Joint Venture Borrowings | 234,170 | 234,170 | | **Total** | **4,782,326** | **6,276,852** | - Guarantees for purchasers' mortgage financing terminate from the date the mortgage loan is granted until the purchaser obtains the property ownership certificate or repays the mortgage loan, whichever is earlier[82](index=82&type=chunk)[85](index=85&type=chunk) - The directors believe the likelihood of purchasers and joint ventures and associates defaulting on their payment obligations is remote, thus financial guarantees measured at fair value are insignificant, and no liabilities have been recognized[82](index=82&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) - As of June 30, 2025, the Group had no other significant contingent liabilities[84](index=84&type=chunk)[86](index=86&type=chunk) [Material acquisitions and disposals of subsidiaries, associates and joint ventures](index=17&type=section&id=Material%20acquisitions%20and%20disposals%20of%20subsidiaries%2C%20associates%20and%20joint%20ventures) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[87](index=87&type=chunk)[92](index=92&type=chunk) [Future plans for material investments](index=17&type=section&id=Future%20plans%20for%20material%20investments) The Group will continue to invest in its property development projects and acquire suitable land parcels as appropriate, with such investments to be funded by internal resources and external borrowings; other than this, the Group has no future plans for material investments as of the date of this report - The Group will continue to invest in its property development projects and acquire suitable land parcels as appropriate, with funding from internal resources and external borrowings[88](index=88&type=chunk)[93](index=93&type=chunk) - As of the date of this report, other than those disclosed above, the Group has no future plans for any material investments[88](index=88&type=chunk)[93](index=93&type=chunk) [Significant subsequent events](index=17&type=section&id=Significant%20subsequent%20events) Except as disclosed in this report, no other significant events have occurred after June 30, 2025, and up to the date of this report - Except as disclosed in this report, no other significant events have occurred after June 30, 2025, and up to the date of this report[89](index=89&type=chunk)[94](index=94&type=chunk) [Human resources](index=17&type=section&id=Human%20resources) As of June 30, 2025, the Group had 275 employees, a decrease from 299 at the end of 2024, with total staff salaries and benefits expenses for the first half of the year amounting to approximately RMB40 million, down from RMB63 million in the same period last year; the Group adopts a performance-based remuneration system, offering competitive compensation packages and social security, along with continuous systematic training Human Resources Overview | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Employees | 275 | 299 | | Total Salary and Benefits Expenses (2025 First Half) | Approximately RMB40 million | | Total Salary and Benefits Expenses (2024 First Half) | Approximately RMB63 million | - The Group adopts a performance-based remuneration system to determine employee compensation, offering competitive remuneration packages (including basic salary, performance bonuses, and year-end bonuses) and social security insurance[90](index=90&type=chunk)[95](index=95&type=chunk) - The Group provides continuous and systematic training based on employees' positions and expertise to enhance their professional knowledge in real estate and other related fields[90](index=90&type=chunk)[95](index=95&type=chunk) [Summary of property development](index=17&type=section&id=Summary%20of%20property%20development) This chapter details the Group's land reserve situation as of June 30, 2025, including the total gross floor area of completed properties, properties under development, and properties held for future development, segmented by geographical location and project type (subsidiaries, joint ventures, associates) - The Group's land reserves include the total gross floor area available for sale or lease of completed properties, the total planned gross floor area of properties under development, and the estimated total gross floor area of properties held for future development[91](index=91&type=chunk)[96](index=96&type=chunk) Total Land Reserves by Geographical Location as of June 30, 2025 | Province/City | Number of Projects | Completed GFA (square meters) | GFA Under Development (square meters) | Planned GFA for Future Development (square meters) | Total Group Land Reserves (square meters) | Percentage of Total Group Land Reserves (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Anhui | 4 | 441,055 | 118,418 | – | 509,273 | 15 | | Guangdong | 3 | 7,373 | 319,702 | 1,279,654 | 1,602,343 | 40 | | Guizhou | 1 | – | – | 234,152 | 267,212 | 6 | | Henan | 1 | 13,988 | 118,362 | – | 132,350 | 3 | | Jiangsu | 20 | 158,330 | 655,487 | – | 808,497 | 21 | | Shanghai | 1 | 14,785 | – | – | 14,785 | 0 | | Sichuan | 1 | 26,504 | – | – | 26,504 | 1 | | Zhejiang | 5 | 24,491 | – | 130,203 | 154,694 | 4 | | **Total** | **36** | **686,526** | **1,211,969** | **1,644,009** | **3,515,658** | **90%** | - Projects developed by subsidiaries, joint ventures, or associates are accounted for based on their entire total gross floor area[114](index=114&type=chunk) [Land bank breakdown by geographical location](index=18&type=section&id=Land%20bank%20breakdown%20by%20geographical%20location) As of June 30, 2025, the Group's total land reserves amounted to 3,795,222 square meters, with Guangdong Province accounting for 42%, Jiangsu Province for 29%, and Anhui Province for 15% Total Land Reserves by Province/City as of June 30, 2025 | Province/City | Total Land Reserves (square meters) | Percentage of Total Land Reserves (%) | | :--- | :--- | :--- | | Guangdong | 1,606,729 | 42 | | Jiangsu | 1,066,735 | 29 | | Anhui | 559,273 | 15 | | Guizhou | 234,152 | 6 | | Zhejiang | 154,694 | 4 | | Henan | 132,350 | 3 | | Sichuan | 26,504 | 1 | | Shanghai | 14,785 | 0 | | **Total** | **3,795,222** | **100%** | [Property projects developed by the Group's subsidiaries](index=20&type=section&id=Property%20projects%20developed%20by%20the%20Group%27s%20subsidiaries) This chapter details 41 property projects developed by the Group's subsidiaries in Anhui, Guangdong, Guizhou, Henan, Jiangsu, Shanghai, Sichuan, and Zhejiang, including project name, location, status, Group's attributable interest, site area, estimated completion date, and total land reserves - Subsidiaries developed a total of **41 projects** across provinces and cities including Anhui, Guangdong, Guizhou, Henan, Jiangsu, Shanghai, Sichuan, and Zhejiang[98](index=98&type=chunk) - Among these, the Guangzhou Zengcheng Shitan project (under development) has the largest land reserve of **814,685 square meters**, with the Group's attributable interest at **60%**[102](index=102&type=chunk) - The Fuyang Ganglong Meide Yunzhu project (under development) has a land reserve of **352,381 square meters**, with the Group's attributable interest at **57%**[101](index=101&type=chunk) [Property projects held by the joint ventures of the Group](index=29&type=section&id=Property%20projects%20held%20by%20the%20joint%20ventures%20of%20the%20Group) This chapter lists 9 property projects held by the Group's joint ventures in Jiangsu and Zhejiang, including project name, location, status, Group's attributable interest, site area, estimated completion date, and total land reserves - Joint ventures hold a total of **9 projects** located in Jiangsu and Zhejiang provinces[99](index=99&type=chunk) - The Nanjing Lanwan Jiuzhu project (under development) has a land reserve of **141,221 square meters**, with the Group's attributable interest at **25%**[110](index=110&type=chunk) - The Nantong Shiguang Yinghuayuan project (under development) has a land reserve of **142,097 square meters**, with the Group's attributable interest at **25%**[111](index=111&type=chunk) [Property projects held by the associates of the Group](index=31&type=section&id=Property%20projects%20held%20by%20the%20associates%20of%20the%20Group) This chapter lists 4 property projects held by the Group's associates in Jiangsu and Guangdong, including project name, location, status, Group's attributable interest, site area, estimated completion date, and total land reserves - Associates hold a total of **4 projects** located in Jiangsu and Guangdong provinces[99](index=99&type=chunk) - The Guangzhou Huangpu project (held for future development) has the largest land reserve of **648,340 square meters**, with the Group's attributable interest at **20%**[113](index=113&type=chunk) Supplementary Information This section covers corporate governance practices, updates on auditor's opinion resolution, securities transaction policies, interim financial review, and detailed disclosures on directors' and substantial shareholders' interests [Interim Dividend](index=33&type=section&id=Interim%20Dividend) The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024 same period: nil)[115](index=115&type=chunk)[120](index=120&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules, and for the six months ended June 30, 2025, the company has complied with the code, except for the chairman of the Board and the chief executive being the same person, an arrangement the Board believes facilitates quick decision-making and ensures power balance through the diverse backgrounds of independent directors - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules as its corporate governance practices[116](index=116&type=chunk)[121](index=121&type=chunk) - For the six months ended June 30, 2025, the company has complied with the Corporate Governance Code, except that Mr. Lu Ming, the chairman of the Board, is also the chief executive[117](index=117&type=chunk)[118](index=118&type=chunk)[121](index=121&type=chunk) - The Board believes that the current structure facilitates quick and effective formulation and implementation of business decisions, and the diverse backgrounds of non-executive and independent non-executive directors ensure a balance of power[118](index=118&type=chunk)[121](index=121&type=chunk) [Updates on the Company's Action in Resolving Disclaimer of Opinion](index=34&type=section&id=Updates%20on%20the%20Company%27s%20Action%20in%20Resolving%20Disclaimer%20of%20Opinion) In response to the auditor's disclaimer of opinion on the 2024 consolidated financial statements, the company has taken multiple measures to improve liquidity and financial position, including communicating with senior noteholders, negotiating extensions with onshore debt holders, seeking alternative financing, accelerating property sales, controlling costs, negotiating repayment with contractors, and seeking to dispose of project equity - The company's auditor issued a disclaimer of opinion on the Group's consolidated financial statements for the year ended December 31, 2024, due to uncertainties regarding going concern[123](index=123&type=chunk)[124](index=124&type=chunk) - The company has taken multiple measures, including: communicating with major senior noteholders to seek debt resolution solutions; negotiating extensions or deferrals with existing onshore debt holders; seeking other alternative financing; accelerating property sales (2025 full-year contract sales target of **RMB4,800 million**, with **RMB2,699.8 million** achieved in the first half); accelerating collection of unrecovered sales proceeds and controlling costs (targeting a **10% reduction** in total employees); negotiating repayment schedules with contractors; and seeking to dispose of equity in project development companies[124](index=124&type=chunk)[125](index=125&type=chunk) - As of June 30, 2025, the Group's total number of employees was **275** (December 31, 2024: **299**)[125](index=125&type=chunk) [Model Code for Securities Transactions](index=36&type=section&id=Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with the code for the six months ended June 30, 2025 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[126](index=126&type=chunk)[131](index=131&type=chunk) - All directors have confirmed compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[127](index=127&type=chunk)[131](index=131&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=36&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares or other listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares or other listed securities[128](index=128&type=chunk)[132](index=132&type=chunk) [Review of Interim Financial Information](index=36&type=section&id=Review%20of%20Interim%20Financial%20Information) The company's audit committee has reviewed the unaudited interim financial information for the six months ended June 30, 2025, and confirmed compliance with all applicable accounting principles, standards, and requirements - The company's audit committee has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025[129](index=129&type=chunk)[133](index=133&type=chunk) - The audit committee confirmed its compliance with all applicable accounting principles, standards, and requirements[129](index=129&type=chunk)[133](index=133&type=chunk) [Changes in the Board and the Directors' Information](index=36&type=section&id=Changes%20in%20the%20Board%20and%20the%20Directors%27%20Information) Since the date of the company's 2024 annual report (March 28, 2025), there have been no changes in the Board and directors' information required to be disclosed under Rule 13.51B(1) of the Listing Rules - Since the date of the company's 2024 annual report (March 28, 2025), there have been no changes in the Board and directors' information required to be disclosed under Rule 13.51B(1) of the Listing Rules[130](index=130&type=chunk)[134](index=134&type=chunk) [Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or Its Associated Corporations](index=37&type=section&id=Directors%27%20and%20Chief%20Executives%27%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20Its%20Associated%20Corporations) As of June 30, 2025, several directors and chief executives held company shares through controlled corporations, with Mr. Lu Ming holding 22.99%, Mr. Lu Zhicong and Mr. Lu Yongnan each holding 19.31%, and Mr. Lu Jinliang and Mr. Lu Yongmao each holding 13.42% Directors' and Chief Executives' Interests in Company Shares as of June 30, 2025 | Director/Chief Executive | Capacity/Nature of Interest | Number of Shares (shares) | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Lu Ming | Interest in controlled corporation | 372,867,000 (L) | 22.99 | | Mr. Lu Zhicong | Interest in controlled corporation | 313,125,000 (L) | 19.31 | | Mr. Lu Yongnan | Interest in controlled corporation | 313,125,000 (L) | 19.31 | | Mr. Lu Yongnan | Beneficial owner | 2,613,000 | 0.16 | | Mr. Lu Jinliang | Interest in controlled corporation | 217,643,000 (L) | 13.42 | | Mr. Lu Yongmao | Interest in controlled corporation | 217,643,000 (L) | 13.42 | - As of June 30, 2025, the company had **1,621,799,000 shares** in issue[141](index=141&type=chunk) - Save as disclosed above, no other directors and chief executives had any interests or short positions in the shares, underlying shares, and debentures of the company or its associated corporations required to be recorded in the register[139](index=139&type=chunk)[140](index=140&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in the Shares and Underlying Shares of the Company](index=39&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20the%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, the company's substantial shareholders included Huaxing Development Co., Ltd. (22.99%), Hualian Development Co., Ltd. (19.31%), and Hualong Development Co., Ltd. (13.42%), as well as Ms. Chen Meiqin (22.99%), Ms. Huang Xiuxue (19.47%), and Ms. Huang Guihua (13.42%) through spouse interests Substantial Shareholders' and Other Persons' Interests in Company Shares as of June 30, 2025 | Shareholder Name | Nature of Interest | Number of Shares (shares) | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Ms. Chen Meiqin | Spouse's interest | 372,867,000 (L) | 22.99 | | Ms. Huang Xiuxue | Spouse's interest | 315,738,000 (L) | 19.47 | | Ms. Huang Guihua | Spouse's interest | 217,643,000 (L) | 13.42 | | Huaxing | Beneficial owner | 372,867,000 (L) | 22.99 | | Hualian | Beneficial owner | 313,125,000 (L) | 19.31 | | Hualong | Beneficial owner | 217,643,000 (L) | 13.42 | - Ms. Chen Meiqin is the spouse of Mr. Lu Ming, Ms. Huang Xiuxue is the spouse of Mr. Lu Yongnan, and Ms. Huang Guihua is the spouse of Mr. Lu Yongmao, and are therefore deemed to have an interest in the shares held by their respective spouses[148](index=148&type=chunk) - Save as disclosed above, the company has not been notified of any other persons having interests or short positions in the shares or underlying shares of the company required to be recorded in the register[146](index=146&type=chunk)[147](index=147&type=chunk) [Share Option Scheme](index=41&type=section&id=Share%20Option%20Scheme) The company conditionally adopted a share option scheme on June 20, 2020, to provide selected participants with an opportunity to acquire an interest in the company and incentivize them to enhance company value; the scheme is valid for ten years from July 15, 2020, and as of the end of the reporting period, no share options had been granted, exercised, cancelled, or lapsed, with 160,000,000 share options available for grant - The company conditionally adopted a share option scheme on June 20, 2020, to provide selected participants with an opportunity to acquire an ownership interest in the company and encourage them to enhance the value of the company and its shares[149](index=149&type=chunk)[152](index=152&type=chunk) - The share option scheme is valid and effective for ten years from July 15, 2020, and will expire on July 14, 2030[153](index=153&type=chunk)[157](index=157&type=chunk) - Under the scheme, the total number of shares that may be allotted and issued shall not exceed **10%** of the issued shares on the date trading commenced on the Stock Exchange, which is **160,000,000 shares**[150](index=150&type=chunk)[152](index=152&type=chunk) - During the reporting period, no share options were granted, exercised, cancelled, or lapsed under the share option scheme, and there were no outstanding share options under the scheme from the listing date up to June 30, 2025[156](index=156&type=chunk)[158](index=158&type=chunk) - As of January 1, 2025, and June 30, 2025, the number of options authorized for grant under the share option scheme was **160,000,000**[156](index=156&type=chunk)[158](index=158&type=chunk) Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group reported total revenue of RMB1,631,319 thousand, a gross loss of RMB450,002 thousand, an operating loss of RMB573,677 thousand, and a total comprehensive loss for the period of RMB666,073 thousand, with loss attributable to owners of the company at RMB329,717 thousand and basic and diluted loss per share of RMB0.20 Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 1,631,319 | 5,367,139 | | Cost of Sales | (2,081,321) | (5,076,777) | | Gross (Loss)/Profit | (450,002) | 290,362 | | Other Income/(Expenses) and Other Gains/(Losses), Net | 7,198 | (625) | | Selling and Marketing Expenses | (64,101) | (89,085) | | General and Administrative Expenses | (66,772) | (70,620) | | Operating (Loss)/Profit | (573,677) | 130,032 | | Finance Costs – Net | (29,358) | (40,709) | | Share of Results of Joint Ventures and Associates | (6,368) | (7,551) | | (Loss)/Profit Before Income Tax | (609,403) | 81,772 | | Income Tax Expenses | (56,670) | (235,714) | | Loss and Total Comprehensive Loss for the Period | (666,073) | (153,942) | | Loss Attributable to Owners of the Company | (329,717) | (76,419) | | Non-Controlling Interests | (336,356) | (77,523) | | Basic and Diluted Loss Per Share (RMB) | (0.20) | (0.05) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB20,664,183 thousand, total liabilities were RMB13,252,115 thousand, and total equity was RMB7,412,068 thousand, with total current assets at RMB18,999,943 thousand and total current liabilities at RMB12,094,874 thousand Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-Current Assets | 1,664,240 | 1,690,070 | | Total Current Assets | 18,999,943 | 21,623,914 | | **Total Assets** | **20,664,183** | **23,313,984** | | **Equity** | | | | Capital and Reserves Attributable to Owners of the Company | 3,105,723 | 3,435,440 | | Non-Controlling Interests | 4,306,345 | 4,642,701 | | **Total Equity** | **7,412,068** | **8,078,141** | | **Liabilities** | | | | Total Non-Current Liabilities | 1,157,241 | 1,884,578 | | Total Current Liabilities | 12,094,874 | 13,351,265 | | **Total Liabilities** | **13,252,115** | **15,235,843** | | **Total Equity and Liabilities** | **20,664,183** | **23,313,984** | Interim Condensed Consolidated Statement of Changes in Equity As of June 30, 2025, total equity attributable to owners of the company was RMB3,105,723 thousand, non-controlling interests were RMB4,306,345 thousand, and total equity was RMB7,412,068 thousand, with loss attributable to owners of the company for the period at RMB329,717 thousand Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (RMB thousand) | January 1, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Attributable to Owners of the Company** | | | | Share Capital | 14,838 | 14,838 | | Share Premium | 1,448,564 | 1,448,564 | | Statutory Reserve | 477,072 | 379,417 | | Other Reserves | 284,235 | 284,235 | | Retained Earnings | 881,014 | 1,966,630 | | **Subtotal** | **3,105,723** | **4,093,684** | | Non-Controlling Interests | 4,306,345 | 7,254,502 | | **Total** | **7,412,068** | **11,348,186** | | Loss and Total Comprehensive Loss for the Period (Attributable to Owners of the Company) | (329,717) | (76,419) | | Loss and Total Comprehensive Loss for the Period (Non-Controlling Interests) | (336,356) | (77,523) | Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group reported net cash used in operating activities of RMB204,626 thousand, net cash from investing activities of RMB14,938 thousand, and net cash from financing activities of RMB267,727 thousand, with cash and cash equivalents at period-end totaling RMB343,816 thousand Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Net Cash (Used in)/From Operating Activities | (204,626) | 220,327 | | Net Cash From/(Used in) Investing Activities | 14,938 | (16,575) | | Net Cash From/(Used in) Financing Activities | 267,727 | (387,500) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 78,039 | (183,748) | | Cash and Cash Equivalents at Beginning of Period | 265,777 | 570,167 | | Cash and Cash Equivalents at End of Period | 343,816 | 386,419 | Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial information, covering general company data, accounting policies, financial risk management, revenue recognition, expense breakdowns, and specific financial statement items [General Information](index=51&type=section&id=General%20Information) The company was incorporated in the Cayman Islands as an exempted company with limited liability on October 8, 2018, primarily engaged in property development projects in China, with its shares listed on the Hong Kong Stock Exchange on July 15, 2020; this interim condensed consolidated financial information is presented in RMB and was approved for issue by the Board of Directors on August 29, 2025, and has not been audited - The company was incorporated in the Cayman Islands on October 8, 2018, primarily engaged in property development projects in China[175](index=175&type=chunk)[176](index=176&type=chunk)[180](index=180&type=chunk) - The company's shares were listed on the Hong Kong Stock Exchange on July 15, 2020[176](index=176&type=chunk)[181](index=181&type=chunk) - This interim condensed consolidated financial information is presented in RMB, was approved for issue by the Board of Directors on August 29, 2025, and has not been audited[177](index=177&type=chunk)[182](index=182&type=chunk) [Basis of Preparation](index=51&type=section&id=Basis%20of%20Preparation) This interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the annual report for the year ended December 31, 2024, and any announcements issued by the company during the interim reporting period - This interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[178](index=178&type=chunk)[183](index=183&type=chunk) - This report should be read in conjunction with the annual report for the year ended December 31, 2024, and any announcements issued by the company during the interim reporting period[179](index=179&type=chunk)[183](index=183&type=chunk) [Accounting Policies](index=52&type=section&id=Accounting%20Policies) The accounting policies adopted by the Group are consistent with the previous financial year, with the adoption of certain revised standards; Hong Kong Financial Reporting Standard 18, mandatory from January 1, 2027, is expected to have widespread impacts on presentation and disclosure, and while significant uncertainty exists regarding the company's going concern ability, the Board has formulated various plans and measures to improve liquidity and financial position - Except for income tax estimates and the adoption of revised standards, the accounting policies adopted are consistent with those of the previous financial year and the corresponding interim reporting period[184](index=184&type=chunk)[188](index=188&type=chunk) - Hong Kong Financial Reporting Standard 18 will replace Hong Kong Accounting Standard 1 and is expected to be mandatory from January 1, 2027, with widespread impacts on presentation and disclosure[185](index=185&type=chunk)[186](index=186&type=chunk)[188](index=188&type=chunk) [Going concern](index=53&type=section&id=Going%20concern) As of June 30, 2025, the Group recorded a net loss of RMB666,073 thousand, along with substantial short-term borrowings, overdue borrowings, and a default event on senior note interest, indicating significant uncertainty regarding going concern; however, the Board has formulated various plans and measures, including communicating with creditors, seeking financing, accelerating sales, controlling costs, resolving disputes, and disposing of equity, to ensure sufficient working capital within the next twelve months - As of June 30, 2025, the Group recorded a net loss of **RMB666,073 thousand**[190](index=190&type=chunk)[191](index=191&type=chunk) - The Group's total interest-bearing bank and other borrowings and senior notes amounted to **RMB4,290,411 thousand**, of which **RMB3,375,502 thousand** are due within the next twelve months, while total cash was **RMB670,109 thousand**[190](index=190&type=chunk)[191](index=191&type=chunk) - Interest-bearing bank and other borrowings with a principal amount of **RMB373,611 thousand** were overdue and unpaid, resulting in **RMB832,500 thousand** of borrowings becoming repayable on demand[190](index=190&type=chunk)[191](index=191&type=chunk) - Interest of **USD8,576,203** related to the 2025 November Notes was not paid, constituting an event of default, and major noteholders have declared the principal and accrued unpaid interest immediately due and payable[190](index=190&type=chunk)[191](index=191&type=chunk) - The Board has taken multiple plans and measures, including communicating with noteholders, negotiating extensions with onshore debt holders, seeking alternative financing, accelerating property sales, controlling costs, resolving disputes, and disposing of equity, to ensure going concern[191](index=191&type=chunk)[192](index=192&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[204](index=204&type=chunk) [Critical Accounting Estimates and Judgements](index=55&type=section&id=Critical%20Accounting%20Estimates%20and%20Judgements) The preparation of interim condensed consolidated financial information requires management to make judgments, estimates, and assumptions, and the critical accounting estimates and judgments applied are consistent with those described in the annual consolidated financial statements for the year ended December 31, 2024 - The preparation of interim condensed consolidated financial information requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[201](index=201&type=chunk)[203](index=203&type=chunk) - The critical accounting estimates and judgments applied are consistent with those described in the annual consolidated financial statements for the year ended December 31, 2024[201](index=201&type=chunk)[203](index=203&type=chunk) [Financial Risk Management](index=56&type=section&id=Financial%20Risk%20Management) The Group faces market risks (foreign exchange risk and interest rate risk), credit risk, and liquidity risk; management aims to maintain sufficient cash and available financing, and mitigates potential impacts through various alternative plans such as reducing land acquisitions, adjusting project timelines, cost control, promotional sales, and seeking joint venture partners; the Group's capital management objective is to safeguard its ability to continue as a going concern and maintain an optimal capital structure - The Group's business activities are exposed to various financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk[205](index=205&type=chunk)[209](index=209&type=chunk) - The Group's management aims to maintain sufficient cash and cash equivalents or obtain available funds through proceeds from property pre-sales and adequate available financing (including short-term and long-term borrowings and additional funds from shareholders)[207](index=207&type=chunk)[211](index=211&type=chunk) - The Group has various alternative plans to mitigate the potential impact of significant adverse changes in economic conditions on forecasted cash flows, including reducing land acquisitions, adjusting project development timelines, implementing cost control measures, promoting sales of completed properties, accelerating sales, and identifying joint venture partners[208](index=208&type=chunk)[211](index=211&type=chunk) - The Group's capital management objective is to safeguard its ability to continue as a going concern, thereby providing returns and benefits to owners and other stakeholders, while maintaining an optimal capital structure to reduce the cost of capital[218](index=218&type=chunk)[220](index=220&type=chunk) [Liquidity risk](index=56&type=section&id=Liquidity%20risk) As of June 30, 2025, the Group's total contractual undiscounted financial liabilities amounted to approximately RMB10,904,132 thousand, with approximately RMB5,946,497 thousand due within one year; the Group also provides guarantees for purchasers' mortgage financing and joint venture borrowings Financial Liabilities by Maturity as of June 30, 2025 (Unaudited) | Maturity | Amount (RMB thousand) | | :--- | :--- | | On Demand | 3,787,831 | | Within 1 Year | 5,946,497 | | 1 to 2 Years | 1,054,379 | | 2 to 5 Years | 115,425 | | Over 5 Years | – | | **Total** | **10,904,132** | Financial Liabilities by Maturity as of December 31, 2024 (Audited) | Maturity | Amount (RMB thousand) | | :--- | :--- | | On Demand | 3,752,041 | | Within 1 Year | 6,427,826 | | 1 to 2 Years | 1,171,500 | | 2 to 5 Years | 683,751 | | Over 5 Years | – | | **Total** | **12,035,118** | - The Group also provides guarantees as collateral for the repayment obligations of certain buyers of property units and the principal of borrowings from joint ventures and associates, which generate contractual cash flows only in the event of default[216](index=216&type=chunk)[217](index=217&type=chunk) [Capital risk management](index=59&type=section&id=Capital%20risk%20management) The Group's capital management objective is to safeguard its ability to continue as a going concern and maintain an optimal capital structure; as of June 30, 2025, the Group's gearing ratio was 51.2% (end of 2024: 50.0%) - The Group's capital management objective is to safeguard its ability to continue as a going concern, thereby providing returns and benefits to owners and other stakeholders, while maintaining an optimal capital structure to reduce the cost of capital[218](index=218&type=chunk)[220](index=220&type=chunk) Capital Risk Management Overview | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Borrowings | 8,121,938 | 8,352,181 | | Less: Cash and Cash Equivalents | (343,816) | (265,777) | | Net Borrowings | 7,778,122 | 8,086,404 | | Total Equity | 7,412,068 | 8,078,141 | | Total Capital | 15,190,190 | 16,164,545 | | Gearing Ratio | 51.2% | 50.0% | [Fair value estimation](index=60&type=section&id=Fair%20value%20estimation) The Group's financial assets, such as financial assets measured at fair value through profit or loss, and investment properties are measured at fair value; financial assets are primarily classified under Level 1 fair value measurement, while investment properties are classified under Level 3 and valued using the income capitalization approach; the Group's finance department regularly reviews valuation reports from independent valuers - The Group's financial assets measured at fair value include financial assets measured at fair value through profit or loss, primarily classified under **Level 1** fair value measurement[222](index=222&type=chunk)[224](index=224&type=chunk)[226](index=226&type=chunk) - The Group's investment properties are measured at fair value, classified under **Level 3** fair value measurement, and valued using the income capitalization approach[227](index=227&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[233](index=233&type=chunk) - The Group's finance department has a team that reviews valuations from independent valuers and regularly discusses valuation procedures and results with executive directors and valuers[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) [Revenue from Contracts with Customers and Segment Information](index=63&type=section&id=Revenue%20from%20Contracts%20with%20Customers%20and%20Segment%20Information) For the six months ended June 30, 2025, the Group's revenue from contracts with customers primarily consisted of property sales, totaling RMB1,631,319 thousand, all recognized at a point in time; the Group has only one operating segment, property development, with contract liabilities of approximately RMB2,033,392 thousand and expected revenue from unsatisfied contracts of RMB1,982,852 thousand to be recognized within one year - The executive directors are identified as the chief operating decision-makers, and the Group has only one operating segment, property development[242](index=242&type=chunk)[243](index=243&type=chunk)[245](index=245&type=chunk) Revenue from Contracts with Customers Comparison | Period | Property Sales (RMB thousand) | | :--- | :--- | | 2025 First Half | 1,631,319 | | 2024 First Half | 5,367,139 | - Revenue from contracts with customers recognized for the six months ended June 30, 2025, and 2024, was entirely from property sales located in China, and all recognized at a point in time[248](index=248&type=chunk) [Details of contract liabilities](index=64&type=section&id=Details%20of%20contract%20liabilities) As of June 30, 2025, contract liabilities related to property sales amounted to RMB2,033,392 thousand, a decrease from RMB2,746,401 thousand at the end of 2024 Contract Liabilities Comparison | Date | Amount (RMB thousand) | | :--- | :--- | | June 30, 2025 | 2,033,392 | | December 31, 2024 | 2,746,401 | - Contract liabilities represent prepayments received from customers for properties not yet transferred to them[250](index=250&type=chunk) [Revenue recognised in relation to contract liabilities](index=64&type=section&id=Revenue%20recognised%20in%20relation%20to%20contract%20liabilities) For the six months ended June 30, 2025, recognized property sales revenue included in the opening balance of contract liabilities was RMB1,521,000 thousand, a significant decrease from RMB5,004,494 thousand in the same period last year Revenue Recognized in Relation to Contract Liabilities Comparison | Period | Property Sales (RMB thousand) | | :--- | :--- | | 2025 First Half | 1,521,000 | | 2024 First Half | 5,004,494 | [Unsatisfied contracts related to sales of properties](index=65&type=section&id=Unsatisfied%20contracts%20related%20to%20sales%20of%20properties) As of June 30, 2025, total unsatisfied contracts related to property sales amounted to RMB2,116,079 thousand, with RMB1,982,852 thousand expected to be recognized within one year and RMB133,227 thousand after one year Unsatisfied Contracts Related to Property Sales | Recognition Time | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within One Year | 1,982,852 | 2,281,206 | | After One Year | 133,227 | 508,062 | | **Total** | **2,116,079** | **2,789,268** | [Other (Expenses)/Income and Other (Losses)/Gains, Net](

Financial Performance - For the six months ended June 30, 2025, the contracted sales amounted to RMB 651.1 million[9]. - Revenue from property development during the same period was RMB 182.7 million[9]. - The group's revenue for the six months ended June 30, 2025, was RMB 324.2 million, with property development revenue contributing RMB 182.7 million[25]. - The company's revenue for the six months ended June 30, 2025, was RMB 324.2 million, a decrease of 67.2% compared to RMB 987.5 million for the same period in 2024[35]. - Property development revenue for the same period was RMB 182.7 million, down 76.9% year-on-year, primarily due to a reduction in completed delivery area and sales[35]. - The company reported a gross profit of RMB 4.4 million and a net loss of RMB 170.0 million for the same period[25]. - The company's gross profit for the six months ended June 30, 2025, was RMB 4.4 million, significantly lower than RMB 432.3 million in the previous year[37]. - The net loss attributable to the company's owners for the six months ended June 30, 2025, was RMB 225.2 million, an increase of RMB 166.5 million compared to RMB 58.7 million for the same period in 2024[38]. - The company reported a loss before tax of RMB 188,336,000 for the six months ended June 30, 2025, compared to a loss of RMB 125,163,000 in the prior year[73]. - The company reported a total comprehensive loss of RMB (225,179,000) for the six months ended June 30, 2025, compared to a loss of RMB (58,659,000) for the same period in 2024[76]. Assets and Liabilities - Total assets as of June 30, 2025, were RMB 32,005,860,000, slightly down from RMB 32,365,627,000 as of December 31, 2024[74]. - The company's total liabilities as of June 30, 2025, were RMB 7,436,699,000, down from RMB 8,616,203,000 as of December 31, 2024[125]. - The company's net asset value as of June 30, 2025, was RMB 12,199,883,000, down from RMB 12,369,902,000 at the end of 2024[75]. - The company's total borrowings as of June 30, 2025, were RMB 22,594.6 million, which includes bank borrowings and other borrowings of RMB 18,732.1 million and senior notes of RMB 3,862.5 million[48]. - The company's cash, restricted bank deposits, and bank balances amounted to approximately RMB 333.9 million, up from RMB 201.9 million as of December 31, 2024[46]. Cash Flow - The company's net operating cash flow for the six months ended June 30, 2025, was RMB 420.5 million, a significant increase from RMB 49.2 million for the same period in 2024[47]. - The net cash generated from operating activities for the six months ended June 30, 2025, was RMB 420,510,000, a significant increase from RMB 49,220,000 in the same period of 2024[78]. - The net cash used in investing activities for the six months ended June 30, 2025, was RMB (687,937,000), compared to RMB 40,906,000 in the prior year, indicating a substantial increase in investment outflows[78]. - The net cash generated from financing activities for the six months ended June 30, 2025, was RMB 302,481,000, a recovery from a net outflow of RMB (60,283,000) in the same period of 2024[80]. Investment and Development - The area of unconfirmed first-level development and urban renewal projects reached 5,811,000 square meters, with 51.6% located in Shenzhen[15]. - The group plans to continue investing in property development projects and acquiring suitable land parcels in selected cities, relying on internal resources and bank loans to meet funding needs[54]. - The group anticipates that urban renewal projects will generate cash flow and become new profit growth points in the second half of 2025[15]. - The group plans to sell part of its investment properties to improve financial conditions and cash flow[88]. Strategic Focus - The group aims to transition towards the health industry, focusing on developing wellness communities and online health services[17]. - The group plans to enhance its product quality and service models in the health sector[17]. - The group aims to enhance its competitiveness by improving service levels, operational management, and product quality in response to the challenging market environment[20]. - The group plans to focus on the health industry as part of its strategic transformation to explore broader market opportunities[21]. Market Conditions - The real estate industry is expected to continue facing a bottom adjustment phase, with investment confidence at a low point and market scale shrinking[18]. - The financing environment for real estate companies needs improvement to restore normal cash flow cycles in the industry[18]. - The "Good House" policy is intended to improve housing quality to attract buyers, although its immediate impact on stabilizing the market is limited[19]. Employee and Administrative Expenses - The company's distribution and selling expenses decreased from RMB 62.4 million to RMB 43.3 million, primarily due to a reduction in sales revenue[41]. - Administrative expenses were reduced from RMB 140.2 million to RMB 86.5 million, attributed to organizational restructuring and optimization[42]. - The total employee costs for the six months ended June 30, 2025, were RMB 47,564,000, a decrease of 38.1% from RMB 76,812,000 in 2024[105]. - The short-term employee benefits for key management personnel were RMB 3,403,000 for the six months ended June 30, 2025, down from RMB 6,815,000 in the same period of 2024[166]. Shareholder and Governance - The board has decided not to declare an interim dividend for shareholders[56]. - Major shareholder Zhang Zhangsun holds a controlled interest of 3,409,431,570 shares, representing approximately 76.71% of the company's equity[62]. - The company is actively seeking suitable candidates to fulfill the requirements for independent non-executive directors to comply with listing rules[66]. - The audit committee has been established and is currently composed of two independent non-executive directors following the resignation of a previous member[72]. Legal and Compliance - The group is currently a defendant in several non-material lawsuits, but the board believes that any potential legal liabilities will not significantly impact the group's financial performance[147]. - The company is subject to international financial reporting standards, ensuring compliance and transparency in financial reporting practices[84]. Financial Instruments and Fair Value - The fair value of investment properties as of June 30, 2025, was RMB 15,531,486,000, a decrease from RMB 16,784,166,000 at the beginning of the year[110]. - The fair value measurement of the group's non-listed investments is classified as Level 3[168]. - The fair value of non-listed equity instruments is determined based on the net asset value of the investee multiplied by the market-to-book ratio, adjusted for lack of marketability[168].