Company Information and Financial Highlights [Company Overview](index=1&type=section&id=Company%20Overview) Shouhui Group Limited, incorporated in the Cayman Islands, listed on HKEX in May 2025, presents its unaudited interim results for H1 2025 - The company was incorporated in the Cayman Islands on **August 3, 2023**, and listed on the Main Board of the Hong Kong Stock Exchange on **May 30, 2025**[2](index=2&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) H1 2025 revenue and gross profit declined, but profit surged due to financial instrument fair value changes, while adjusted net profit decreased Key Financial Data for H1 2025 | Metric | H1 2025 (RMB Million) | H1 2024 (RMB Million) | YoY Change | |---|---|---|---| | Adjusted Net Profit* | 65.7 | 129.0 | -49.0% | - The significant increase in profit for the period was primarily driven by gains from changes in the fair value of financial instruments issued to investors[4](index=4&type=chunk)[41](index=41&type=chunk) Business Review [Business Model and Strategy](index=2&type=section&id=Business%20Model%20and%20Strategy) The company operates as a leading Chinese life insurance intermediary, focusing on digital transformation to build a comprehensive transaction and service platform - The company is positioned as a leading Chinese life insurance intermediary service provider, with digital transformation as its core strategy[5](index=5&type=chunk) - Core revenue is derived from premium distribution commissions, synergistically served by three major platforms: Xiaoyusan (2C), Kacha Bao (2A), and Niubao 100 (2B)[5](index=5&type=chunk) - The distributed product matrix covers diverse categories including long-term life insurance, long-term critical illness insurance, long-term medical insurance, and short-term insurance[5](index=5&type=chunk) [Operating Performance](index=2&type=section&id=Operating%20Performance) Despite macroeconomic uncertainties and commission rate adjustments, the company achieved RMB 4.9 billion in total premiums for H1 2025, a 25.7% increase, though first-year premiums and revenue declined - In H1 2025, the company's total premiums were approximately **RMB 4.9 billion**, representing a **25.7%** year-on-year increase[6](index=6&type=chunk) - Affected by macroeconomic conditions, slowing financial consumption, and the "reporting and execution alignment" policy, H1 2025 first-year premiums decreased by **0.6%**, revenue by **21.2%**, and adjusted net profit by **49.0%** year-on-year[8](index=8&type=chunk) - First-year premiums and revenue in Q1 and Q2 2025 both maintained double-digit quarter-on-quarter growth, indicating a positive business growth trend after the adjustment of pre-set interest rates[6](index=6&type=chunk) [Product Structure and Asset Status](index=3&type=section&id=Product%20Structure%20and%20Asset%20Status) Long-term critical illness first-year premiums grew by 30.7%, and participating products surged by 147.7%; total assets increased by 18.5% to RMB 2.2 billion, with net assets turning positive to RMB 1.2 billion due to IPO reclassification H1 2025 Product Structure Performance | Product Category | First-Year Premiums (RMB Billion) | YoY Growth | Growth Category | |---|---|---|---| | Participating Products | 2.41 | +147.7% | >+100% | - As of June 30, 2025, the company's total assets amounted to approximately **RMB 2.2 billion**, an **18.5%** increase from the end of 2024[7](index=7&type=chunk) - As of June 30, 2025, the company's net assets totaled approximately **RMB 1.2 billion**, a significant improvement from net liabilities of **RMB 0.7 billion** at the end of 2024, primarily due to the reclassification of financial instruments issued to investors from liabilities to equity after the IPO[7](index=7&type=chunk) Business Updates [Market-Oriented Product Customization and IP Management](index=3&type=section&id=Market-Oriented%20Product%20Customization%20and%20IP%20Management) The company continues to develop customer-centric customized insurance products, collaborating with over 100 insurers to distribute more than 2,200 products, with customized products accounting for over 51% of first-year premiums - As of June 30, 2025, the company has established deep cooperation with over **100** insurance companies, cumulatively distributing over **2,200** insurance products[9](index=9&type=chunk) - During the reporting period, customized product first-year premiums totaled approximately **RMB 799.4 million**, accounting for over **51%** of the company's total first-year premiums[9](index=9&type=chunk) - Over **14** IPs have been incubated, covering various insurance products, with continuous iteration and optimization of Super Mary adult critical illness and Bumblebee child critical illness series driving a **30.7%** year-on-year increase in long-term critical illness first-year premiums[10](index=10&type=chunk) [Digitally-Driven Omnichannel Strategic Layout](index=4&type=section&id=Digitally-Driven%20Omnichannel%20Strategic%20Layout) The company deepens its "2C+2A+2B" omnichannel strategy through Xiaoyusan, Kacha Bao, and Niubao 100 platforms, serving over 3.8 million policyholders and expanding its agent network - The company deepens its "2C+2A+2B" omnichannel strategic layout through its three major platforms: Xiaoyusan (2C), Kacha Bao (2A), and Niubao 100 (2B)[11](index=11&type=chunk) - As of June 30, 2025, the company has cumulatively served over **3.8 million** policyholders, aggregated over **1,300** business partners, signed over **29,000** agents, and its service footprint covers **15** provincial administrative regions nationwide[11](index=11&type=chunk) - The company is building a comprehensive self-media matrix across platforms like Douyin, Xiaohongshu, Bilibili, Baidu, WeChat ecosystem, and Weibo, establishing a full-link marketing system[12](index=12&type=chunk) [R&D Capabilities Closely Integrated with Industry Practices](index=5&type=section&id=R%26D%20Capabilities%20Closely%20Integrated%20with%20Industry%20Practices) The company continuously invests in online transaction capabilities and AI technology, launching a unified product configuration platform and self-developed AI systems that significantly improve efficiency and drive a 46.7% increase in insurance technology service revenue - In H1 2025, the unified product configuration platform was fully launched, supporting efficient listing of over **200** products and shortening the average delivery cycle by over **50%**[13](index=13&type=chunk) - Self-developed AI multi-modal quality inspection system and AI Eagle Eye verification system improved efficiency by **56%** and **63%** respectively, ensuring compliance and efficiency[13](index=13&type=chunk) - Nearly **30** AI services have been launched, including AI policy management, private domain customer AI management, and AI outbound calling robots, empowering various business scenarios[13](index=13&type=chunk) - Insurance technology service revenue was approximately **RMB 5.1 million**, a **46.7%** year-on-year increase, with the AI intelligent risk control system contributing over half of this revenue[14](index=14&type=chunk) [Efficient and Convenient Insurance Customer Service](index=6&type=section&id=Efficient%20and%20Convenient%20Insurance%20Customer%20Service) The company provides 24/7 consultation and claims reporting services, processing over 15,000 flash claims totaling over RMB 11 million in H1 2025 with an average processing time of 0.27 days and 99% customer satisfaction - The company provides **24/7** consultation and claims reporting services, covering comprehensive policy management[15](index=15&type=chunk) - In H1 2025, over **15,000** flash claims were processed, totaling over **RMB 11 million**, with an average claims processing time as low as **0.27 days** and customer satisfaction reaching **99%**[15](index=15&type=chunk) - As of June 30, 2025, the company has over **3.8 million** policyholders, with those aged **30-45** contributing **62.1%** of total premiums[16](index=16&type=chunk) Business Outlook and Future Plans [Market Outlook and Strategic Direction](index=7&type=section&id=Market%20Outlook%20and%20Strategic%20Direction) The company anticipates further declines in China's life insurance pre-set interest rates in H2 2025 and plans to strengthen its business foundation to consolidate market position and increase market share - China's life insurance industry is expected to see further declines in pre-set interest rates in H2 2025, presenting both opportunities and challenges[17](index=17&type=chunk) - The company will further strengthen its business foundation, actively consolidate its market position, and increase market share[17](index=17&type=chunk) [Product and Brand Development](index=7&type=section&id=Product%20and%20Brand%20Development) The company plans to continuously iterate existing IP products, enrich its distribution portfolio, and actively develop customized participating insurance series to increase their sales proportion, while also expanding enterprise insurance products - The company will continuously iterate existing IP products, such as Super Mary adult critical illness and Bumblebee child critical illness, and actively develop customized participating insurance series[17](index=17&type=chunk) - It plans to expand its enterprise insurance product series (e.g., aviation, legal, travel, employee benefits) to build a comprehensive insurance product ecosystem covering both individual and enterprise clients[17](index=17&type=chunk) [Channel and Partnership Expansion](index=7&type=section&id=Channel%20and%20Partnership%20Expansion) The company will deepen its online-offline integrated marketing strategy, strengthen product IP and brand promotion, and expand its offline branch network while recruiting and empowering professional agents - The company will deepen its online-offline integrated marketing strategy, strengthen product IP creation and brand promotion, and enhance user coverage and conversion[18](index=18&type=chunk) - It plans to deepen the layout of its offline branch network, continuously recruit and cultivate a professional agent team, and empower agents through technological innovation[19](index=19&type=chunk) - The company will strengthen existing business partnerships, deepen cooperation with media advertising companies, and explore property and casualty insurance business scenarios to achieve diversified development[19](index=19&type=chunk) [R&D and Technological Innovation](index=8&type=section&id=R%26D%20and%20Technological%20Innovation) The company will continue to deepen the application of technology across the entire insurance value chain, upgrading core transaction systems and intelligent marketing tools, while focusing on AI applications like underwriting and advisory to achieve full-process intelligent upgrades - The company will continue to deepen the application of technology across the entire insurance business chain, iterating and upgrading its online core transaction system, intelligent marketing tools, and quality management system[20](index=20&type=chunk) - It will focus on key areas such as AI underwriting, AI insurance advisors, and AI insurance document precise analysis to achieve full-process intelligent upgrades and enhance AI technology penetration[20](index=20&type=chunk) [Overseas Business Exploration](index=8&type=section&id=Overseas%20Business%20Exploration) The company will actively explore overseas insurance business expansion to inject new momentum for long-term sustainable development - The company will actively explore overseas insurance business expansion to inject new momentum for its long-term sustainable development[21](index=21&type=chunk) Financial Analysis [Revenue Analysis](index=9&type=section&id=Revenue%20Analysis) In H1 2025, total group revenue decreased by 21.2% to RMB 554.5 million, primarily due to macroeconomic uncertainties, slowing financial consumption, and reduced commission rates, with insurance transaction services declining and technology services growing [Revenue Overview](index=9&type=section&id=Revenue%20Overview) Group revenue decreased by 21.2% to RMB 554.5 million in H1 2025 from RMB 703.6 million in H1 2024, mainly due to reduced insurance transaction service revenue - Revenue decreased by **21.2%** year-on-year to **RMB 554.5 million**, primarily due to a combination of macroeconomic uncertainties, slowing financial consumption demand, and reduced commission rates under the "reporting and execution alignment" policy[22](index=22&type=chunk) [Revenue by Business Segment](index=9&type=section&id=Revenue%20by%20Business%20Segment) Insurance transaction service revenue decreased by 21.5% to RMB 549.5 million, accounting for 99.1% of total revenue, while insurance technology service revenue increased by 46.7% to RMB 5.1 million Revenue by Business Segment (RMB Thousand) | Business Segment | H1 2025 | % of Total | H1 2024 | % of Total | |---|---|---|---|---| | **Total** | **554,548** | **100.0%** | **703,560** | **100.0%** | - The decrease in insurance transaction service revenue was mainly due to reduced demand for long-term life insurance products, lower commission rates, and lower-than-expected sales of customized product Jinyibao[25](index=25&type=chunk) - The increase in insurance technology service revenue was primarily due to growth in risk assessment assistance and other technology services[25](index=25&type=chunk) [Revenue by Insurance Product](index=10&type=section&id=Revenue%20by%20Insurance%20Product) Long-term life insurance revenue significantly decreased year-on-year, while critical illness insurance revenue increased by 24.0%, partially offsetting declines in life and medical insurance Revenue by Insurance Product (RMB Thousand) | Insurance Product | H1 2025 | % of Total | H1 2024 | % of Total | |---|---|---|---|---| | **Total** | **549,488** | **100.0%** | **700,111** | **100.0%** | - Long-term life insurance revenue decreased year-on-year, while critical illness insurance revenue increased year-on-year, partially offsetting the decline in life and medical insurance[25](index=25&type=chunk) [Cost and Gross Profit Analysis](index=11&type=section&id=Cost%20and%20Gross%20Profit%20Analysis) In H1 2025, operating costs decreased by 16.4% to RMB 357.9 million due to lower revenue, leading to a 28.6% decline in overall gross profit to RMB 196.6 million and a drop in gross margin to 35.5% [Operating Costs](index=11&type=section&id=Operating%20Costs) Operating costs, primarily comprising commissions to agents, channel promotion fees, and staff salaries, decreased by 16.4% to RMB 357.9 million in H1 2025, mainly due to reduced revenue - Operating costs decreased by **16.4%** year-on-year to **RMB 357.9 million**, primarily due to a year-on-year reduction in commission expenses and channel promotion fees resulting from lower revenue[28](index=28&type=chunk) [Gross Profit and Gross Margin](index=11&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Overall gross profit decreased by 28.6% to RMB 196.6 million, with gross margin falling from 39.2% to 35.5%, mainly due to a decline in insurance transaction service gross margin, while insurance technology service gross margin increased Gross Profit and Gross Margin by Business Segment (RMB Thousand) | Business Segment | H1 2025 Gross Profit | H1 2025 Gross Margin | H1 2024 Gross Profit | H1 2024 Gross Margin | |---|---|---|---|---| | **Total** | **196,605** | **35.5%** | **275,485** | **39.2%** | - The gross margin for insurance transaction services decreased, primarily due to a reduced contribution from high-margin long-term medical and other insurance products, and increased commission expenses and promotion fees to gain market share in long-term critical illness insurance[31](index=31&type=chunk) - The gross margin for insurance technology services increased, mainly due to enhanced cost control measures for risk control and assessment technology services[31](index=31&type=chunk) [Expenses and Other Gains/Losses](index=12&type=section&id=Expenses%20and%20Other%20Gains%2FLosses) Other net income decreased by 46.7% to RMB 2.7 million, sales and marketing expenses decreased by 9.4%, while general and administrative expenses increased by 13.4% due to listing expenses and depreciation; R&D expenses decreased by 16.9%, and profit for the period surged 977.3% to RMB 664.6 million, driven by fair value changes of financial instruments [Other Net Income](index=12&type=section&id=Other%20Net%20Income) Other net income decreased by 46.7% to RMB 2.7 million, primarily due to reduced realized gains from financial assets measured at fair value and diluted gains from associates Other Net Income Details (RMB Thousand) | Item | H1 2025 | % of Total | H1 2024 | % of Total | |---|---|---|---|---| | **Total** | **2,668** | **100.0%** | **5,010** | **100.0%** | - The decrease in other net income was mainly due to reduced diluted gains from associates and lower realized gains and losses from financial assets measured at fair value[35](index=35&type=chunk) [Sales and Marketing Expenses](index=13&type=section&id=Sales%20and%20Marketing%20Expenses) Sales and marketing expenses decreased by 9.4% to RMB 61.1 million, primarily due to enhanced cost control and optimized marketing processes, leading to reduced advertising and marketing expenses and controlled personnel costs - Sales and marketing expenses decreased by **9.4%** to **RMB 61.1 million**, primarily due to reduced advertising and marketing expenses and lower salaries and other benefits[36](index=36&type=chunk) [General and Administrative Expenses](index=13&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased by 13.4% to RMB 53.3 million, mainly due to increased listing expenses and higher depreciation of right-of-use assets from new leased office premises - General and administrative expenses increased by **13.4%** to **RMB 53.3 million**, primarily due to increased listing expenses and higher depreciation expenses for right-of-use assets from newly leased office premises[37](index=37&type=chunk) [Research and Development Expenses](index=13&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses decreased by 16.9% to RMB 22.9 million, primarily due to improved internal organizational efficiency, controlled personnel costs, and a reduction in the average number of R&D personnel - Research and development expenses decreased by **16.9%** to **RMB 22.9 million**, primarily due to reduced salaries and other benefits[38](index=38&type=chunk) [Impairment Loss Provision](index=13&type=section&id=Impairment%20Loss%20Provision) Impairment loss provision decreased by 22.4% to RMB 0.3 million, mainly due to a year-on-year reduction in the increase of trade receivables and contract assets - Impairment loss provision decreased by **22.4%** to **RMB 0.3 million**, primarily due to a year-on-year reduction in the increase of trade receivables and contract assets[39](index=39&type=chunk) [Finance Costs](index=14&type=section&id=Finance%20Costs) Finance costs, primarily interest expenses on lease liabilities, remained relatively stable at RMB 0.2 million for the six months ended June 30, 2025 - Finance costs remained relatively stable at **RMB 0.2 million**[40](index=40&type=chunk) [Changes in Fair Value of Financial Instruments Issued to Investors](index=14&type=section&id=Changes%20in%20Fair%20Value%20of%20Financial%20Instruments%20Issued%20to%20Investors) For the six months ended June 30, 2025, the company recorded a gain of RMB 619.0 million from changes in the fair value of financial instruments issued to investors, compared to a loss of RMB 190.2 million in the prior period, mainly due to changes in the company's valuation - A gain of **RMB 619.0 million** was recognized from changes in the fair value of financial instruments issued to investors (H1 2024: loss of **RMB 190.2 million**), primarily due to changes in the company's valuation[41](index=41&type=chunk) [Share of Loss of Associates](index=14&type=section&id=Share%20of%20Loss%20of%20Associates) Share of loss of associates increased from RMB 1.0 million in H1 2024 to RMB 2.5 million in H1 2025 - Share of loss of associates increased from **RMB 1.0 million** to **RMB 2.5 million**[42](index=42&type=chunk) [Income Tax](index=14&type=section&id=Income%20Tax) Income tax decreased by 40.6% to RMB 13.4 million, primarily due to a reduction in taxable income compared to the prior period - Income tax decreased by **40.6%** to **RMB 13.4 million**, primarily due to reduced taxable income[43](index=43&type=chunk) [Profit Overview](index=15&type=section&id=Profit%20Overview) In H1 2025, the Group's profit for the period was RMB 664.6 million, a significant increase of 977.3% from a loss of RMB 75.8 million in the prior year, while adjusted net profit (non-HKFRS) decreased by 49.0% to RMB 65.7 million [Profit/(Loss) for the Period](index=15&type=section&id=Profit%2F%28Loss%29%20for%20the%20Period) The Group recorded a profit of RMB 664.6 million in H1 2025, a 977.3% increase from a loss of RMB 75.8 million in H1 2024 - Profit for the period was **RMB 664.6 million**, a **977.3%** year-on-year increase (H1 2024: loss of **RMB 75.8 million**)[44](index=44&type=chunk) [Adjusted Net Profit](index=15&type=section&id=Adjusted%20Net%20Profit) Adjusted net profit (non-HKFRS measure) was RMB 65.7 million, a 49.0% year-on-year decrease, excluding the impact of fair value changes of financial instruments issued to investors, share-based payment expenses, and listing expenses Reconciliation of Profit/(Loss) for the Period to Adjusted Net Profit (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | **Adjusted Profit for the Period** | **65,738** | **129,003** | - Adjusted net profit (non-HKFRS measure) decreased by **49.0%** year-on-year to **RMB 65.7 million**[46](index=46&type=chunk) [Balance Sheet Items Analysis](index=16&type=section&id=Balance%20Sheet%20Items%20Analysis) As of June 30, 2025, intangible assets remained stable, equity in associates decreased, while prepayments, other receivables, other assets, trade receivables, contract assets, trade payables, other payables, accrued expenses, and lease liabilities all increased [Intangible Assets](index=16&type=section&id=Intangible%20Assets) As of June 30, 2025, the carrying value of intangible assets remained stable at RMB 40.6 million, primarily comprising software, copyrights, trademarks, and licenses - The carrying value of intangible assets remained stable at **RMB 40.6 million**[47](index=47&type=chunk) [Equity in Associates](index=16&type=section&id=Equity%20in%20Associates) Equity in associates decreased from RMB 5.1 million at the end of 2024 to RMB 2.6 million as of June 30, 2025 - Equity in associates decreased from **RMB 5.1 million** to **RMB 2.6 million**[48](index=48&type=chunk) [Prepayments, Other Receivables and Other Assets](index=16&type=section&id=Prepayments%2C%20Other%20Receivables%20and%20Other%20Assets) Prepayments, other receivables, and other assets increased significantly from RMB 29.5 million at the end of 2024 to RMB 118.1 million as of June 30, 2025, mainly due to subscriptions to time deposits exceeding three months - Prepayments, other receivables, and other assets increased from **RMB 29.5 million** to **RMB 118.1 million**, primarily due to subscriptions to time deposits with maturities exceeding three months[49](index=49&type=chunk) [Trade Receivables](index=16&type=section&id=Trade%20Receivables) Trade receivables increased from RMB 96.1 million at the end of 2024 to RMB 134.9 million as of June 30, 2025, mainly due to increased unsettled amounts from business growth in Q2 2025 - Trade receivables increased from **RMB 96.1 million** to **RMB 134.9 million**, primarily due to business growth in Q2 2025[50](index=50&type=chunk) [Contract Assets](index=16&type=section&id=Contract%20Assets) Contract assets increased from RMB 849.6 million at the end of 2024 to RMB 913.0 million as of June 30, 2025 - Contract assets increased from **RMB 849.6 million** to **RMB 913.0 million**[51](index=51&type=chunk) [Trade Payables](index=17&type=section&id=Trade%20Payables) Trade payables increased from RMB 463.6 million at the end of 2024 to RMB 512.0 million as of June 30, 2025, primarily due to increased operating costs related to renewal income - Trade payables increased from **RMB 463.6 million** to **RMB 512.0 million**, primarily due to increased operating costs related to renewal income[52](index=52&type=chunk) [Other Payables, Accrued Expenses and Other Liabilities](index=17&type=section&id=Other%20Payables%2C%20Accrued%20Expenses%20and%20Other%20Liabilities) Other payables, accrued expenses, and other liabilities increased from RMB 126.8 million at the end of 2024 to RMB 162.9 million as of June 30, 2025, mainly due to increased premium collection business - Other payables, accrued expenses, and other liabilities increased from **RMB 126.8 million** to **RMB 162.9 million**, primarily due to increased premium collection business[53](index=53&type=chunk) [Lease Liabilities](index=17&type=section&id=Lease%20Liabilities) Lease liabilities increased from RMB 5.7 million at the end of 2024 to RMB 18.2 million as of June 30, 2025, mainly due to multiple office lease agreements entered into during the period - Lease liabilities increased from **RMB 5.7 million** to **RMB 18.2 million**, primarily due to multiple office lease agreements entered into during the period[54](index=54&type=chunk) [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[55](index=55&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) The Group primarily funds its operations through net cash generated from operations and net proceeds from the global offering, with bank balances and cash at RMB 249.1 million as of June 30, 2025, and no asset pledges or significant foreign currency risks - The Group primarily funds its operations through net cash generated from operations and net proceeds from the global offering[56](index=56&type=chunk) - As of June 30, 2025, bank balances and cash amounted to **RMB 249.1 million**[56](index=56&type=chunk) - Capital expenditure was **RMB 17.7 million**, primarily for right-of-use assets related to leased offices[57](index=57&type=chunk) - As of June 30, 2025, the Group had no pledged assets, the gearing ratio was not applicable, and it was not exposed to significant foreign currency risk[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=19&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the unaudited consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, detailing financial performance including revenue, costs, expenses, profit/loss, and earnings/loss per share Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 | H1 2024 | |---|---|---| | Diluted Earnings/(Loss) Per Share | RMB 0.22 | RMB (0.94) | [Consolidated Statement of Financial Position](index=21&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This section presents the unaudited consolidated statement of financial position as of June 30, 2025, detailing asset and liability structure including non-current assets, current assets, current liabilities, non-current liabilities, and capital and reserves Summary of Consolidated Statement of Financial Position (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | Total Equity/(Deficiency) | 1,182,294 | (739,803) | Notes to the Financial Report [Basis of Preparation and General Information](index=23&type=section&id=Basis%20of%20Preparation%20and%20General%20Information) This interim financial report is prepared in accordance with HKAS 34 "Interim Financial Reporting" and has been reviewed by KPMG - This interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and has been reviewed by KPMG[69](index=69&type=chunk)[70](index=70&type=chunk) [Changes in Accounting Policies](index=23&type=section&id=Changes%20in%20Accounting%20Policies) The Group has applied HKAS 21 (Amendment) "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," which has no material impact on the interim financial report, and no other new standards or interpretations not yet effective have been adopted - Hong Kong Accounting Standard 21 (Amendment) has been applied, but it has no material impact on the interim financial report[71](index=71&type=chunk) - No new standards or interpretations not yet effective have been adopted in the current accounting period[72](index=72&type=chunk) [Revenue and Segment Reporting](index=23&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's revenue primarily derives from two segments: insurance transaction services and insurance technology services, with the former accounting for the majority but declining, and the latter showing growth; all revenue and operating profit originate from China Revenue Breakdown (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | **Total** | **554,548** | **703,560** | - The Group reports by two business lines: insurance transaction services and insurance technology services, with all revenue and operating profit originating from China[74](index=74&type=chunk)[75](index=75&type=chunk)[78](index=78&type=chunk) [Profit/(Loss) Before Tax](index=26&type=section&id=Profit%2F%28Loss%29%20Before%20Tax) This section details finance costs, staff costs, and other items affecting profit/loss before tax, noting stable finance costs, reduced staff costs, and increased depreciation, amortization, professional service fees, and listing expenses Finance Costs (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | Interest expense on lease liabilities | 222 | 154 | Staff Costs (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | **Total** | **70,878** | **78,382** | Other Items (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | Listing expenses | 14,247 | 9,656 | [Income Tax in the Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=27&type=section&id=Income%20Tax%20in%20the%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group is exempt from income tax in the Cayman Islands and Hong Kong, while its PRC subsidiaries are subject to a 25% tax rate, with Shenzhen Shouhui Technology Group Co., Ltd. enjoying a preferential 15% rate as a high-tech enterprise; income tax expense decreased by 40.6% to RMB 13.4 million - Shenzhen Shouhui Technology Group Co., Ltd., as a high-tech enterprise, enjoys a preferential income tax rate of **15%**[82](index=82&type=chunk) Income Tax in the Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | **Total** | **13,393** | **22,550** | [Earnings/(Loss) Per Share](index=29&type=section&id=Earnings%2F%28Loss%29%20Per%20Share) In H1 2025, basic earnings per share were RMB 5.93 and diluted earnings per share were RMB 0.22, a significant improvement from basic and diluted losses per share of RMB (0.94) in the prior period, driven by a substantial increase in profit for the period Earnings/(Loss) Per Share | Metric | H1 2025 | H1 2024 | |---|---|---| | Diluted Earnings/(Loss) Per Share | RMB 0.22 | RMB (0.94) | - Basic earnings per share are calculated based on profit attributable to ordinary equity shareholders of the Company of **RMB 664.26 million** and a weighted average of **111.94 million** shares[84](index=84&type=chunk) - Diluted earnings per share are calculated based on profit attributable to ordinary equity shareholders of the Company of **RMB 45.245 million** and a weighted average of **204.82 million** shares[85](index=85&type=chunk) [Trade Receivables and Contract Assets](index=29&type=section&id=Trade%20Receivables%20and%20Contract%20Assets) As of June 30, 2025, net trade receivables were RMB 134.9 million and net contract assets were RMB 913.0 million, both increasing from the end of 2024, reflecting business growth Trade Receivables and Contract Assets (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | Net contract assets | 912,990 | 849,584 | Ageing Analysis of Trade Receivables (RMB Thousand) | Ageing | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | No invoice | 105,716 | 92,351 | [Cash and Cash Equivalents and Restricted Cash](index=30&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Restricted%20Cash) As of June 30, 2025, cash and cash equivalents significantly increased to RMB 249.1 million from RMB 113.4 million at the end of 2024, with restricted cash totaling RMB 92.3 million, primarily for regulatory reserves and premiums collected on behalf of insurers Cash and Cash Equivalents (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | **Total** | **249,143** | **113,368** | Restricted Cash (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | **Total** | **92,294** | **49,806** | - Restricted cash primarily includes reserves required by regulations and premiums collected on behalf of insurance companies[91](index=91&type=chunk) [Trade Payables](index=31&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables were RMB 512.0 million, an increase from RMB 463.6 million at the end of 2024, mainly comprising amounts due to suppliers Trade Payables (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | **Total** | **511,957** | **463,616** | [Financial Instruments Issued to Investors](index=32&type=section&id=Financial%20Instruments%20Issued%20to%20Investors) As of June 30, 2025, the carrying value of financial instruments issued to investors was zero, as all preference shares were converted to ordinary shares upon IPO completion, and the carrying value of financial liabilities was reclassified to equity Changes in Financial Instruments Issued to Investors (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | **At period/year-end** | **—** | **1,702,171** | - Upon completion of the initial public offering, all preference shares were converted to ordinary shares, and the carrying value of financial liabilities was reclassified to equity[93](index=93&type=chunk) [Capital and Reserves](index=32&type=section&id=Capital%20and%20Reserves) As of June 30, 2025, share capital was RMB 0.016 million and share premium was RMB 183.528 million, with changes primarily driven by the IPO, preference share conversion, and capitalization issue; no dividends were paid during the period Share Capital and Share Premium (RMB Thousand) | Item | Number of Shares | Share Capital | Share Premium | |---|---|---|---| | **As of June 30, 2025** | **226,379** | **16** | **183,528** | - Preference shares were reclassified to equity upon completion of the initial public offering on May 30, 2025, resulting in a capital reserve of approximately **RMB 1,083.156 million**[95](index=95&type=chunk) - No dividends were paid by the Company for the six months ended June 30, 2025[99](index=99&type=chunk) Other Information [Material Investments, Acquisitions and Disposals](index=34&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals) During the reporting period, the Group held no material investments and made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group held no material investments and made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[101](index=101&type=chunk) [Future Plans for Material Investments or Capital Assets](index=34&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The Group intends to utilize the net proceeds from the global offering as planned in the prospectus, with no other material investment or capital asset plans disclosed - The Group intends to utilize the net proceeds from the global offering as planned in the prospectus[102](index=102&type=chunk) [Employees and Remuneration Policy](index=34&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 704 full-time employees, all located in China, offering competitive remuneration, continuous training, and an IPO pre-share award scheme to incentivize staff - As of June 30, 2025, the Group had **704** full-time employees, all located in China[103](index=103&type=chunk) - The company provides competitive remuneration, continuous education and training programs, and has adopted a pre-IPO share award scheme[103](index=103&type=chunk) [Use of Listing Proceeds](index=35&type=section&id=Use%20of%20Listing%20Proceeds) The company listed on May 30, 2025, with net proceeds from the global offering of approximately HKD 134.2 million; as of June 30, 2025, HKD 0.9 million was utilized for expanding sales teams, marketing, and server purchases, with the remaining HKD 133.3 million to be used as planned - Net proceeds from the global offering were approximately **HKD 134.2 million**[104](index=104&type=chunk) Use of Listing Proceeds (HKD Million) | Item | Planned Amount | % of Total | Amount Used | Remaining Amount | |---|---|---|---|---| | **Total** | **134.2** | **100.0%** | **0.9** | **133.3** | [Interim Dividend](index=36&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[105](index=105&type=chunk) [Corporate Governance and Compliance](index=36&type=section&id=Corporate%20Governance%20and%20Compliance) The Group maintains high corporate governance standards, complying with all applicable principles and code provisions of the Corporate Governance Code, except for the combined roles of Chairman and CEO, which the Board believes benefits management and is continuously reviewed; directors and employees have complied with the Model Code for Securities Transactions, and the Audit Committee has reviewed the interim results [Compliance with Corporate Governance Practices](index=36&type=section&id=Compliance%20with%20Corporate%20Governance%20Practices) The Company has complied with all applicable principles and code provisions of the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer, which the Board believes benefits management and is continuously reviewed - The company has complied with all applicable principles and code provisions of the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer[106](index=106&type=chunk) - The Board believes that combining the roles of Chairman and Chief Executive Officer benefits the Group's management and will continue to review its effectiveness[106](index=106&type=chunk) [Compliance with Model Code for Securities Transactions](index=36&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) All Directors have confirmed compliance with the Model Code for Securities Transactions from the listing date up to June 30, 2025 - All Directors have confirmed compliance with the Model Code for Securities Transactions from the listing date up to June 30, 2025[108](index=108&type=chunk) [Audit Committee](index=37&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive Directors, has reviewed the Group's unaudited condensed consolidated interim results for the reporting period and found them to be in compliance with applicable accounting standards and Listing Rules - The Audit Committee, composed of three independent non-executive Directors, has reviewed the Group's interim results and found them to be in compliance with applicable accounting standards and Listing Rules[109](index=109&type=chunk) [Purchase, Sale or Redemption of the Company's Securities](index=37&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Securities) From the listing date up to June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - From the listing date up to June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[110](index=110&type=chunk) [Events After the Reporting Period](index=37&type=section&id=Events%20After%20the%20Reporting%20Period) No significant post-reporting period events have occurred that would materially affect the Group - No significant post-reporting period events have occurred that would materially affect the Group[111](index=111&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=38&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEX and Company websites, and the interim report will be dispatched to shareholders who elected to receive printed copies and published on the aforementioned websites in due course - This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and published on the aforementioned websites in due course[112](index=112&type=chunk) Definitions [Definitions](index=38&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in the report to ensure accurate understanding of its content - This section provides definitions for key terms and abbreviations used in the report[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，且表明不會就本公告全部或任何部分內容所導致或因倚賴該 等內容而產生的任何損失承擔任何責任。 中國外運股份有限公司 Sinotrans Limited 股票代碼：00598HK 601598SH 創造價值 成就客戶 中 期 報 告 2 0 2 5 2025 中期報告 2025年中期報告 1 重要提示 經董事會批准，本公司將以實施權益分派股權登記日登記的總股本（扣除公司回購專用賬戶中的股份） 為基數派發2025年中期股息，每股派發現金紅利0.145元（含稅）。截至本報告披露之日，公司總股本為 7,272,197,875股，扣除公司回購專用賬戶中的94,714,181股，預計派發中期現金紅利1,040,735,135.63 元（含稅）。 （於中華人民共和國註冊成立的股份有限公司） （股份代號：00598） 截至二零二五年六月三十日止六個月之本集團業績公告 中國外運股份有限公司（「本公司」）董事會（「董事會」）在此欣然宣佈本公司及附屬公司（統稱「本 集團」）根據中國企業會計準則編製的截至二零二五年六月三十日止 ...

[Company Information](index=4&type=section&id=Company%20Information) This section provides corporate details, including the board of directors, management, and other basic company information [Board of Directors and Management](index=4&type=section&id=Board%20of%20Directors%20and%20Management) This section lists the members of the Board and its main committees, including their respective roles and chairmanships - The Board of Directors includes Executive Directors Wong King Shiu (Chairman and CEO), Chu Kiu Wah, So Han Meng Julian; Non-executive Directors Li Sai Wing, Leung Ka Ming; and Independent Non-executive Directors Wong Hoi Kuen, Chan Shing Yung, and Chu Woon Chiu[10](index=10&type=chunk) - Mr Wong Hoi Kuen chairs the Nomination Committee, Remuneration Committee, and Audit Committee[10](index=10&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides basic operational details such as the company's auditor, legal advisors, principal bankers, and stock code - The company's auditor is BDO Limited[10](index=10&type=chunk) - The company's principal bankers include The Hongkong and Shanghai Banking Corporation Limited, Public Bank (Hong Kong) Limited, DBS Bank (Hong Kong) Limited, and Bank of China (Hong Kong) Limited[10](index=10&type=chunk) - The GEM stock code is 8178, and the company website is www.citd.com.hk[11](index=11&type=chunk) [Summary](index=6&type=section&id=Summary) The Group's revenue slightly increased, but a significant loss attributable to owners was recorded due to a fair value loss on investment properties | Metric | H1 2025 (HK$'000) | H1 2024 (HK$'000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 20,846 | 20,068 | +3.9% | | Loss attributable to owners of the Company | (55,625) | (7,686) | Loss widened | | Loss per share | (75.92) HK cents | (12.44) HK cents | Loss widened | - The increased loss was mainly attributable to a fair value decrease in investment properties of approximately **HK$51,571,000**[14](index=14&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended 30 June 2025[14](index=14&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews business development, financial performance, and future strategies, focusing on cloud computing, Web 3.0, and AI initiatives [Business Review](index=6&type=section&id=Business%20Review) The Group focused on technological innovation in AI, Web 3.0, and cloud computing, with updates on major events like a share subscription and property disposal - The company strategically focuses on technological advancements in cloud computing, Web 3.0, and AI to meet evolving digital transformation needs[13](index=13&type=chunk) - The Group prudently navigates geopolitical and macroeconomic uncertainties while expanding its AI and IT businesses with cautious risk management[13](index=13&type=chunk) - The company will continue to explore the United Arab Emirates (UAE) market to diversify its revenue streams and mitigate risks from domestic market volatility[29](index=29&type=chunk) [Overall Business Strategy and Challenges](index=6&type=section&id=Overall%20Business%20Strategy%20and%20Challenges) The company strategically focuses on cloud computing, Web 3.0, and AI, while prudently managing risks amid macroeconomic uncertainty - In response to rapid digital transformation across industries, the company strategically focuses on technological advancements in cloud computing, Web 3.0, and AI to meet evolving customer needs[13](index=13&type=chunk) - The Group prudently navigates geopolitical instability and macroeconomic fluctuations, seizing opportunities to strengthen and expand its AI and other IT businesses while adopting cautious risk management[13](index=13&type=chunk) [Subscription of New Shares under General Mandate](index=7&type=section&id=Subscription%20of%20New%20Shares%20under%20General%20Mandate) A planned share subscription with AMKM INVESTMENTS L.L.C. was terminated due to the subscriber's failure to fulfill obligations - The company had entered into a subscription agreement with AMKM INVESTMENTS L.L.C. to allot and issue **12,353,000 subscription shares** at a price of **HK$6.31 per share**[15](index=15&type=chunk) - Net proceeds of approximately **HK$77,750,000** were intended for general working capital, with **70% for the UAE** and **30% for Hong Kong**[17](index=17&type=chunk) - Due to the subscriber's non-compliance, the company will not proceed with the subscription and is seeking legal advice to protect its interests[18](index=18&type=chunk) [Proposed Disposal of the Property](index=8&type=section&id=Proposed%20Disposal%20of%20the%20Property) The planned disposal of an investment property in Guangzhou for RMB 150 million was terminated by the purchaser - The company planned to sell an investment property in Guangzhou for **RMB 150,000,000** (approximately HK$163,800,000) to realize its value and reallocate financial resources[19](index=19&type=chunk) - The purchaser decided not to proceed with the disposal and agreed to compensate the vendor **RMB 1,000,000**[20](index=20&type=chunk) - The Group believes the termination will not have a material adverse impact and will continue to seek potential buyers for the property[21](index=21&type=chunk) [Megasoft Limited](index=9&type=section&id=%E8%90%AC%E9%AB%98%E8%A8%8A%E7%A7%91) Megasoft Limited maintained stable business with a 2.7% revenue increase, driven by its digital transformation solutions and top-tier partnerships - Megasoft drives digital transformation in the Hong Kong enterprise market and showcases smart office solutions at its Tsim Sha Tsui experience center[22](index=22&type=chunk)[23](index=23&type=chunk) - Megasoft achieved Nutanix "Master Partner" status and continues to be a Sangfor Technology "Gold Partner," IBM "Silver Partner," and VMware "Advanced Partner"[22](index=22&type=chunk) - Megasoft recorded revenue of approximately **HK$11,783,000**, a **2.7% increase** from the same period in 2024, maintaining stable business operations[24](index=24&type=chunk) [DataCube](index=10&type=section&id=%E6%95%B8%E7%AB%8B%E6%96%B9) DataCube applied its AI algorithms for predictive maintenance with public transport companies and developed solutions for SMEs, with a slight revenue decrease - DataCube utilizes AI to develop sophisticated algorithms for collecting real-time vibration frequency data from train bogies, collaborating with public transport companies to enhance monitoring and maintenance efficiency[25](index=25&type=chunk) - Its AI Book and BI Canvas are serving clients in China, and it has developed smart logistics and CRM systems as part of its AI Booster solution for SMEs without AI experts[25](index=25&type=chunk)[26](index=26&type=chunk) - DataCube contributed revenue of approximately **HK$2,214,000**, a slight decrease of **0.8%** from the same period in 2024, primarily focusing on collaborations with mass transit companies[26](index=26&type=chunk) [Popsible](index=11&type=section&id=Popsible) Popsible Limited, a cloud technology and digital marketing service provider, contributed revenue of approximately HK$574,000 during the period - Popsible Limited is a service provider specializing in cloud technology and digital marketing, offering IT services for cloud-based solutions in customer loyalty management and data analytics[27](index=27&type=chunk) - During the period, Popsible contributed revenue of approximately **HK$574,000**[28](index=28&type=chunk) [Future Prospects](index=11&type=section&id=%E6%9C%AA%E4%BE%86%E5%89%8D%E6%99%AF) The Group will prudently explore the UAE market and leverage its AI capabilities to expand into new sectors like transportation and agriculture - The company will maintain a cautious approach while diversifying its revenue streams by exploring the United Arab Emirates (UAE) market to mitigate risks associated with domestic market volatility[29](index=29&type=chunk) - The company will leverage DataCube's experience in AI predictive maintenance to engage with business partners in regions like the UAE and Egypt for projects in air traffic management, airport train safety, and vessel traffic management systems[29](index=29&type=chunk) - The Group will also utilize data analytics to monitor crop scale and health, aiming to improve efficiency, productivity, and reduce operational costs for potential clients[29](index=29&type=chunk) [Events After the Reporting Period](index=12&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The company plans a rights issue to raise approximately HK$35.44 million to HK$38.04 million, fully underwritten by RaffAello Securities (HK) Limited - The company proposes to raise not less than approximately **HK$35,440,000** (before expenses) through a rights issue of up to **27,474,463 rights shares**[30](index=30&type=chunk) - The basis of the rights issue is three (3) rights shares for every eight (8) existing shares held by qualifying shareholders on the record date[30](index=30&type=chunk) - The rights issue will be fully underwritten by RaffAello Securities (HK) Limited[31](index=31&type=chunk) [Employees](index=13&type=section&id=%E5%83%B1%E5%93%A1) The Group's total number of full-time employees increased to 61, with total employee benefit expenses amounting to approximately HK$10,704,000 - As of 30 June 2025, the Group employed a total of **61 full-time employees** (2024: 58)[33](index=33&type=chunk) - Total employee benefit expenses for the six months ended 30 June 2025 were approximately **HK$10,704,000** (2024: approximately HK$10,391,000)[33](index=33&type=chunk) [Financial Review](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Revenue grew 3.9% and gross profit increased 10.6%, but a significant fair value loss on investment properties led to a widened net loss - The Group's revenue increased by **3.9%** year-on-year to approximately **HK$20,846,000**, mainly due to a slight increase in the trading of computer hardware and software[34](index=34&type=chunk) - Cost of sales and services decreased by **3.7%** to **HK$9,079,000**, resulting in a **10.6%** increase in gross profit to **HK$11,767,000**[34](index=34&type=chunk) - A fair value decrease in investment properties of approximately **HK$51,571,000** led to a loss attributable to owners of the Company of approximately **HK$55,625,000**[36](index=36&type=chunk) - Administrative expenses decreased by **13.1%** to **HK$15,117,000**, primarily due to a reduction in legal and professional fees[35](index=35&type=chunk) [Financial Position](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) The Group's cash and bank balances decreased significantly, while total borrowings and the gearing ratio increased - As of 30 June 2025, the Group's cash and bank balances were approximately **HK$1,553,000** (31 December 2024: approximately HK$5,371,000)[37](index=37&type=chunk) - The Group's total borrowings were approximately **HK$64,137,000** (31 December 2024: approximately HK$60,740,000), with the gearing ratio increasing to **0.34** (31 December 2024: 0.25)[37](index=37&type=chunk) - The Group has minimal foreign exchange risk and therefore did not engage in any hedging activities[37](index=37&type=chunk) [Capital Expenditure](index=14&type=section&id=%E8%B3%87%E6%9C%AC%E6%94%AF%E5%87%BA) The Group's capital expenditure on property, plant, and equipment amounted to HK$16,000 during the reporting period - The Group incurred capital expenditure of **HK$16,000** for the acquisition of property, plant, and equipment (31 December 2024: approximately HK$39,000)[38](index=38&type=chunk) [Contingent Liabilities](index=14&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5‚„) The Group had no significant contingent liabilities as of 30 June 2025 and 31 December 2024 - As at 30 June 2025 and 31 December 2024, the Group did not have any significant contingent liabilities[39](index=39&type=chunk) [Capital Commitments](index=14&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) The Group had no significant capital commitments as of 30 June 2025 and 31 December 2024 - As at 30 June 2025 and 31 December 2024, the Group did not have any significant capital commitments[40](index=40&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=15&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) This statement shows a slight revenue increase but a significantly wider loss for the period due to fair value changes in investment properties | Metric (HK$'000) | H1 2025 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 20,846 | 20,068 | | Cost of sales and services | (9,079) | (9,426) | | Gross profit | 11,767 | 10,642 | | Other income and gains | 490 | 793 | | Selling and distribution expenses | (368) | (360) | | Administrative expenses | (15,117) | (17,392) | | Change in fair value of investment properties | (51,571) | – | | Fair value loss on investments at FVTPL | (102) | (189) | | Finance costs | (1,108) | (1,347) | | Loss before tax | (56,009) | (7,853) | | Income tax credit | 67 | 3 | | Loss for the period | (55,942) | (7,850) | | Loss attributable to owners of the Company | (55,625) | (7,686) | | Non-controlling interests | (317) | (164) | | Basic and diluted loss per share | (75.92) HK cents | (12.44) HK cents | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=16&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement shows the total comprehensive loss for the period, widened by exchange differences and fair value changes in equity investments | Metric (HK$'000) | H1 2025 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Loss for the period | (55,942) | (7,850) | | Other comprehensive loss for the period, net of tax | | | | －Exchange differences on translation of foreign operations | 3,527 | (4,131) | | －Fair value change of equity investments at FVTOCI | (2,496) | (997) | | Total comprehensive loss for the period | (54,911) | (12,978) | | Attributable to owners of the Company | (54,552) | (12,839) | | Non-controlling interests | (359) | (139) | [Condensed Consolidated Statement of Financial Position](index=17&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement shows a decrease in total non-current assets, net current assets, and total equity, primarily due to a decline in investment property value | Metric (HK$'000) | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | **Non-current assets** | | | | Investment properties | 169,850 | 216,035 | | Total non-current assets | 220,695 | 267,142 | | **Current assets** | | | | Bank and cash balances | 1,553 | 5,371 | | Total current assets | 58,168 | 60,762 | | **Current liabilities** | | | | Bank and other loans | 33,422 | 35,651 | | Total current liabilities | 55,809 | 57,313 | | Net current assets | 2,359 | 3,449 | | Total assets less current liabilities | 223,054 | 270,591 | | **Non-current liabilities** | | | | Bank and other loans | 25,757 | 20,273 | | Total non-current liabilities | 32,965 | 25,591 | | Net assets | 190,089 | 245,000 | | Total equity | 190,089 | 245,000 | [Condensed Consolidated Statement of Changes in Equity](index=19&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement shows a significant reduction in equity attributable to owners, driven by the loss for the period and other comprehensive losses | Metric (HK$'000) | 30 June 2025 (Unaudited) | 1 January 2024 (Unaudited) | | :--- | :--- | :--- | | Share capital | 7,327 | 6,177 | | Share premium account | 192,707 | 178,462 | | Retained earnings/(Accumulated losses) | (2,245) | 97,806 | | Total attributable to owners of the Company | 200,979 | 270,759 | | Non-controlling interests | (10,890) | (9,819) | | Total equity | 190,089 | 260,940 | | Loss for the period (attributable to owners) | (55,625) | (7,686) | | Total comprehensive loss for the period (attributable to owners) | (54,552) | (12,839) | [Condensed Consolidated Statement of Cash Flows](index=20&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement shows net cash outflows from operating, investing, and financing activities, leading to a significant decrease in cash and cash equivalents | Metric (HK$'000) | H1 2025 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Net cash (used in)/from operating activities | (3,430) | 553 | | Net cash (used in)/from investing activities | (13) | 9 | | Net cash used in financing activities | (4,969) | (1,039) | | Net decrease in cash and cash equivalents | (8,412) | (477) | | Cash and cash equivalents at beginning of period | 5,371 | 11,595 | | Net effect of exchange rate changes | 4,594 | 318 | | Cash and cash equivalents at end of period | 1,553 | 11,436 | [Notes to the Condensed Consolidated Interim Financial Statements](index=21&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes on accounting policies, segment information, revenue, expenses, assets, liabilities, and equity movements [Accounting Policies](index=21&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The financial statements are prepared in accordance with HKAS 34 and the GEM Listing Rules, consistent with the prior annual financial statements - The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of the GEM Listing Rules[47](index=47&type=chunk) - The accounting policies and methods of computation used in preparing these unaudited condensed interim financial statements are consistent with those used in the annual consolidated financial statements for the year ended 31 December 2024[47](index=47&type=chunk) [Adoption of New and Revised Hong Kong Financial Reporting Standards](index=21&type=section&id=%E6%8E%A1%E7%B4%8D%E6%96%B0%E8%A8%82%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E7%9A%84%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87) The Group adopted all new and revised HKFRSs effective 1 January 2025, with no material impact on its accounting policies or reported amounts - During the current period, the Group has adopted all new and revised Hong Kong Financial Reporting Standards (HKFRSs) issued by the HKICPA that are relevant to its operations and effective for the annual period beginning on 1 January 2025[48](index=48&type=chunk) - The adoption of these new and revised HKFRSs has not resulted in any substantial changes to the Group's accounting policies, the presentation of the Group's financial statements, or the amounts reported for the current and prior periods[48](index=48&type=chunk) [Operating Segment Information](index=22&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates in three segments: IT solutions, securities investment, and property leasing, with the latter reporting a significant loss - The Group has three reportable segments: provision of IT infrastructure solutions and maintenance services, trading of securities, and property leasing[52](index=52&type=chunk) | Segment (HK$'000) | H1 2025 Revenue | H1 2024 Revenue | H1 2025 (Loss)/Profit | H1 2024 (Loss)/Profit | | :--- | :--- | :--- | :--- | :--- | | IT solutions and maintenance | 15,071 | 14,499 | (3,256) | (3,173) | | Securities investment | – | – | (123) | (222) | | Property leasing | 5,775 | 5,569 | (46,203) | 4,593 | | **Total** | **20,846** | **20,068** | **(49,582)** | **1,198** | | Region | H1 2025 Revenue (HK$'000) | H1 2024 Revenue (HK$'000) | | :--- | :--- | :--- | | Hong Kong | 14,972 | 14,202 | | The PRC (excluding Hong Kong) | 5,874 | 5,866 | | **Consolidated Total** | **20,846** | **20,068** | [Revenue, Other Income and Gains](index=24&type=section&id=%E6%94%B6%E7%9B%8A%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) The Group's revenue is primarily derived from sales of computer hardware and software, technical support services, and rental income | Revenue Stream (HK$'000) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales of computer hardware and software | 7,567 | 6,835 | | Provision of technical support and maintenance services | 7,504 | 7,664 | | Rental income | 5,775 | 5,569 | | **Total Revenue** | **20,846** | **20,068** | | Timing of Revenue Recognition (HK$'000) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | At a point in time | 7,567 | 6,835 | | Over time | 7,504 | 7,664 | | **Total** | **15,071** | **14,499** | | Other Income and Gains (HK$'000) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Other interest income | 3 | 9 | | Others | 487 | 784 | | **Total** | **490** | **793** | [Finance Costs](index=25&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) The Group's finance costs, comprising interest on various loans and leases, decreased compared to the prior period | Finance Costs (HK$'000) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest on bank loans | 582 | 774 | | Interest on other loans | 368 | 372 | | Interest on bonds | 142 | 134 | | Interest on leases | 16 | 67 | | **Total** | **1,108** | **1,347** | [Loss Before Tax](index=25&type=section&id=%E7%A8%85%E5%89%8D%E8%99%A7%E6%90%8D) The Group's loss before tax widened significantly to HK$56,009,000, mainly due to the fair value loss on investment properties - For the six months ended 30 June 2025, the loss before tax was **HK$56,009,000** (2024: HK$7,853,000)[41](index=41&type=chunk) | Deductions (HK$'000) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Amortisation of other intangible assets | 432 | 432 | | Depreciation of property, plant and equipment | 93 | 295 | | Depreciation of right-of-use assets | 1,112 | 1,171 | | Directors' remuneration | 1,190 | 1,224 | [Income Tax Credit](index=26&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D) The Group recorded an income tax credit of HK$67,000, with no provision for Hong Kong or PRC profits tax due to accumulated tax losses - For the six months ended 30 June 2025, the income tax credit was **HK$67,000** (2024: HK$3,000)[41](index=41&type=chunk) - No provision for Hong Kong Profits Tax has been made for the six months ended 30 June 2025 as the Group has accumulated tax losses brought forward from previous years[58](index=58&type=chunk) - No provision for PRC Enterprise Income Tax has been made for the period as the Group did not generate any assessable profits arising from the PRC[58](index=58&type=chunk) [Loss Per Share](index=26&type=section&id=%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) Basic and diluted loss per share attributable to owners widened to 75.92 HK cents, with no dilutive effect from share options - The loss per share attributable to owners of the Company for the six months ended 30 June 2025 was approximately **75.92 HK cents** (2024: approximately 12.44 HK cents)[59](index=59&type=chunk) | Metric | H1 2025 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (HK$'000) | (55,625) | (7,686) | | Weighted average number of ordinary shares for basic and diluted loss per share | 73,265,237 | 61,765,237 | - The diluted loss per share is the same as the basic loss per share as the exercise of the Company's share options would have an anti-dilutive effect on the loss per share[60](index=60&type=chunk) [Interim Dividend](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of any interim dividend for the six months ended 30 June 2025 - The Board does not recommend the payment of any interim dividend for the six months ended 30 June 2025 (2024: Nil)[61](index=61&type=chunk) [Investment Properties](index=27&type=section&id=%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) The carrying amount of investment properties decreased significantly to HK$169,850,000 due to a fair value loss of HK$51,571,000 | Metric (HK$'000) | Amount (Unaudited) | | :--- | :--- | | At 1 January 2025 | 216,035 | | Fair value loss | (51,571) | | Exchange difference | 5,386 | | **At 30 June 2025** | **169,850** | - As at 30 June 2025, investment properties with a carrying amount of approximately **HK$33,422,000** (31 December 2024: approximately HK$35,651,000) were pledged as security for the Group's bank loans[62](index=62&type=chunk) [Additions to Property, Plant and Equipment](index=27&type=section&id=%E6%B7%BB%E7%BD%AE%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) The Group's capital expenditure on additions to property, plant, and equipment was HK$16,000 for the period - During the six months ended 30 June 2025, the Group spent approximately **HK$16,000** (30 June 2024: HK$Nil) on additions to property, plant and equipment[63](index=63&type=chunk) [Prepayments, Deposits and Other Receivables](index=28&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Total prepayments, deposits, and other receivables stood at HK$33,293,000, primarily comprising consideration receivable from the disposal of a subsidiary | Metric (HK$'000) | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Prepayments | 46 | 146 | | Consideration receivable from disposal of a subsidiary | 31,152 | 34,300 | | Deposits and other receivables | 2,321 | 2,249 | | **Subtotal** | **33,519** | **36,695** | | Less: Provision for credit losses | (226) | (226) | | **Adjusted Total** | **33,293** | **36,469** | - As of 30 June 2025, the provision for credit losses was **HK$226,000**[64](index=64&type=chunk) [Trade Receivables](index=29&type=section&id=%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE) Trade receivables totaled HK$23,410,000, with the largest portion aged over 3 months, and credit terms range from 30 to 90 days | Ageing | 30 June 2025 (HK$'000) | 31 December 2024 (HK$'000) | | :--- | :--- | :--- | | Within 1 month | 2,143 | 12,779 | | 1 to 2 months | 1,074 | 1,694 | | 2 to 3 months | 972 | 1,553 | | Over 3 months | 19,221 | 2,912 | | **Total** | **23,410** | **18,938** | - The Group grants credit terms ranging from 30 to 90 days to its customers and does not hold any collateral or other credit enhancements over its trade receivable balances[65](index=65&type=chunk) [Trade Payables](index=29&type=section&id=%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE) Trade payables decreased to HK$2,153,000 as of 30 June 2025 | Ageing | 30 June 2025 (HK$'000) | 31 December 2024 (HK$'000) | | :--- | :--- | :--- | | Within 1 month | 427 | 581 | | 1 to 2 months | 557 | 1,320 | | 2 to 3 months | 1,133 | 905 | | Over 3 months | 36 | 181 | | **Total** | **2,153** | **2,987** | [Other Payables and Accrued Charges](index=30&type=section&id=%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E8%A8%88%E9%96%8B%E6%94%AF) Other payables and accrued charges totaled HK$16,722,000, mainly consisting of accrued charges and other payables | Metric (HK$'000) | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Accrued charges | 8,201 | 5,401 | | Other payables | 8,521 | 7,261 | | Deposits received | – | 1,682 | | Value-added tax payable | – | 646 | | **Total** | **16,722** | **14,990** | [Bank and Other Loans](index=30&type=section&id=%E9%8A%80%E8%A1%8C%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B2%B8%E6%AC%BE) Total bank and other loans amounted to HK$59,179,000, comprising secured mortgage loans and various other unsecured loans | Loan Type (HK$'000) | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) | | :--- | :--- | :--- | | Bank loans: Mortgage loans | 33,422 | 35,651 | | Other loans: Loans from independent third parties | 25,757 | 20,273 | | **Total** | **59,179** | **55,924** | - The mortgage loan of approximately **HK$33,422,000** has a term of 8 years until March 2030, carries an average interest rate of **3.75%**, and is secured by the Group's investment properties and a corporate guarantee from the Company[70](index=70&type=chunk) - Loans from independent third parties include unsecured loans bearing interest at **13.8%** per annum (approx. HK$493k, HK$274k, HK$1,096k) and interest-free unsecured loans (approx. HK$10,290k, HK$6,860k, HK$3,457k), with repayment terms extending to 2027-2028[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) [Bonds](index=32&type=section&id=%E5‚‚%E5%88%B8) The Group issued zero-coupon bonds with a principal amount of HK$100 million, with a portion sold at a discount to a third party - The Group completed the issuance of zero-coupon bonds with an aggregate principal amount of **HK$100,000,000** on 12 July 2023[71](index=71&type=chunk) - Bonds with a principal amount of **HK$24,750,000** were purchased by a third party at a discount of approximately **66.66%** to the face value, with an effective yield to maturity of **3.73%** per annum[71](index=71&type=chunk) - The bonds will mature on 27 June 2053[71](index=71&type=chunk) [Share Capital](index=33&type=section&id=%E8%82%A1%E6%9C%AC) The Company's issued and fully paid share capital was HK$7,327,000, comprising 73,265,237 ordinary shares of HK$0.1 each - As of 30 June 2025, the authorised share capital was **12,000,000,000** ordinary shares of HK$0.1 each, totaling **HK$1,200,000,000**[74](index=74&type=chunk) - As of 30 June 2025, the issued and fully paid share capital was **73,265,237** ordinary shares of HK$0.1 each, totaling **HK$7,327,000**[74](index=74&type=chunk) [Fair Value Measurement](index=33&type=section&id=%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F) This section details the fair value measurement of the Group's assets, including investments and investment properties valued using the direct income method - Fair value measurement inputs are categorized into three levels: Level 1 for quoted prices in active markets, Level 2 for directly or indirectly observable inputs, and Level 3 for unobservable inputs[75](index=75&type=chunk)[76](index=76&type=chunk) | Description | Total at 30 June 2025 (HK$'000) | Total at 31 December 2024 (HK$'000) | | :--- | :--- | :--- | | Investments at FVTPL (Equity securities) | 218 | 320 | | Equity investments at FVTOCI (Equity securities) | 19,094 | 21,590 | | Investment properties (Commercial - The PRC) | 169,850 | 216,035 | | **Total recurring fair value measurements** | **189,162** | **237,945** | - Investment properties are valued using the direct income method, with a fair value of **HK$169,850,000** as of 30 June 2025, after recognizing a fair value loss of **HK$51,571,000** during the period[78](index=78&type=chunk)[80](index=80&type=chunk) [Share Option Schemes](index=37&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Group operates two share option schemes (2012 and 2023) to incentivize eligible participants, with 5,373,213 options outstanding - The Company adopted a share option scheme on 2 August 2012 and a new scheme on 15 May 2023 to provide incentives and rewards to eligible participants who contribute to the Group's success[82](index=82&type=chunk) | Metric | 30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | | :--- | :--- | :--- | | Number of share options (outstanding) | 5,373,213 | 5,440,775 | | Weighted average exercise price (HK$) | 2.33 | 2.32 | - The estimated fair value of the share options is calculated using the Binomial option pricing model, with inputs including share price, exercise price, expected volatility, expected term, risk-free rate, expected dividend yield, and expected early exercise multiple[87](index=87&type=chunk) [Contingent Liabilities](index=40&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5‚„) The Group had no significant contingent liabilities as of 30 June 2025 - As at 30 June 2025, the Group did not have any significant contingent liabilities (31 December 2024: Nil)[88](index=88&type=chunk) [Approval of the Condensed Consolidated Interim Financial Statements](index=40&type=section&id=%E6%89%B9%E5%87%86%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The condensed consolidated interim financial statements were approved and authorized for issue by the Board of Directors on 26 August 2025 - These condensed consolidated interim financial statements were approved and authorised for issue by the Board of Directors on 26 August 2025[89](index=89&type=chunk) [General Information](index=41&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) This section provides details on directors' interests, share option schemes, and major shareholdings [Directors' Service Contracts](index=41&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%8D%E5%8B%99%E5%90%88%E7%B4%84) No director has a service contract with the Company that is not terminable within one year without payment of compensation - As at 30 June 2025, none of the Directors had entered into or proposed to enter into a service contract with the Company which is not determinable by the Company within one year without payment of compensation (other than statutory compensation)[90](index=90&type=chunk) [Directors' Interests in Contracts](index=41&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E5%90%88%E7%B4%84%E7%9A%84%E6%AC%8A%E7%9B%8A) No director had a material interest in any significant contract to which the Group was a party during the period - For the six months ended 30 June 2025, no Director had a material interest, either directly or indirectly, in any contract of significance to the business of the Group to which the Company, any of its subsidiaries or fellow subsidiaries was a party[91](index=91&type=chunk) [Directors' Interests and Short Positions in Shares and Underlying Shares](index=41&type=section&id=Directors'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) Several directors held long positions in the Company's ordinary shares and share options as of 30 June 2025 | Director's Name | Capacity | Registered Shareholder (Shares) | Associated Interest (Shares) | Approx. % of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Wong King Shiu | Beneficial owner | 665,550 | 615,000 (Share Options) | 0.91% (Registered) / 0.84% (Associated) | | Li Sai Wing, MH, JP | Beneficial owner | – | 200,000 | 0.27% | | Wong Hoi Kuen | Beneficial owner | – | 34,000 | 0.05% | | Chan Shing Yung | Beneficial owner | – | 34,000 | 0.05% | | Cheung Kei Sum (Former Executive Director) | Beneficial owner | – | 614,374 | 0.84% | - Save as disclosed above and in the "Share Options" section, as at 30 June 2025, none of the Directors or chief executive had any interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations that were required to be recorded in the register[93](index=93&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=43&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) No rights were granted to any director or their families to acquire shares or debentures of the Company during the period - Save as disclosed under the sections "Directors' Interests and Short Positions in Shares and Underlying Shares" and "Share Options", at no time during the six months ended 30 June 2025 were rights to acquire benefits by means of the acquisition of shares in or debentures of the Company granted to any Director or their respective spouse or children under 18 years of age, nor were any such rights exercised by them[95](index=95&type=chunk) [Share Option Schemes](index=43&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) This section details the Company's 2012 and 2023 share option schemes, including their purpose, limits, and terms - The Company has adopted the 2012 Share Option Scheme and the 2023 Share Option Scheme to grant options to selected eligible participants as a reward or return for their contributions or potential contributions to the Group[96](index=96&type=chunk)[97](index=97&type=chunk)[112](index=112&type=chunk) - The schemes aim to attract and retain the best available personnel and provide additional incentives to employees, directors, consultants, professional advisers, customers, business partners, and suppliers of the Group[98](index=98&type=chunk)[112](index=112&type=chunk) - The total number of shares which may be issued upon exercise of all options to be granted to each participant in any 12-month period is limited to **1%** of the shares of the Company in issue as at the date of grant[100](index=100&type=chunk)[115](index=115&type=chunk) [2012 Share Option Scheme](index=43&type=section&id=%E4%BA%8C%E9%9B%B6%E4%B8%80%E4%BA%8C%E5%B9%B4%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The 2012 scheme expired in 2022, but 3,835,213 previously granted options remain outstanding and exercisable - The 2012 Share Option Scheme expired on 1 August 2022, but the outstanding options granted thereunder shall continue to be exercisable[99](index=99&type=chunk)[105](index=105&type=chunk) - During the period and as at the date of this report, **3,835,213 share options** were outstanding, representing **5.23%** of the issued shares as at the date of this report[99](index=99&type=chunk) - The exercise period for each granted option is 10 years from the date of grant, from 13 May 2021 to 12 May 2031 and from 16 June 2022 to 15 June 2032, with no vesting period[101](index=101&type=chunk)[102](index=102&type=chunk)[109](index=109&type=chunk) | Category | Balance at 1 Jan 2025 (No. of Options) | Outstanding at 30 June 2025 (No. of Options) | | :--- | :--- | :--- | | Substantial Shareholders | 25,730 | 25,730 | | Directors | 411,000 | 411,000 | | Former Directors | 751,374 | 751,374 | | Employees | 2,483,773 | 2,483,773 | | Consultants | 574,336 | 574,336 | | **Total** | **3,835,213** | **3,835,213** | [2023 Share Option Scheme](index=48&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%B8%89%E5%B9%B4%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The 2023 scheme, effective since May 2023, has 1,538,000 options outstanding, representing 2.10% of issued shares - The 2023 Share Option Scheme became effective on 15 May 2023, authorising the Company to grant options for up to **6,176,523 shares**[111](index=111&type=chunk)[113](index=113&type=chunk) - As at the date of this report, **1,538,000 share options** were outstanding, representing approximately **2.10%** of the issued shares[114](index=114&type=chunk) - Options granted under the 2023 Share Option Scheme are exercisable within 10 years from the date of grant, with a minimum vesting period of not less than 12 months[116](index=116&type=chunk)[117](index=117&type=chunk) | Category | Balance at 1 Jan 2025 (No. of Options) | Outstanding at 30 June 2025 (No. of Options) | | :--- | :--- | :--- | | Directors | 472,000 | 472,000 | | Former Directors | 274,000 | 274,000 | | Employees | 822,000 | 792,000 | | **Total** | **1,538,000** | **1,538,000** | [Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares](index=51&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A) This section discloses the interests of substantial shareholders, including Mr. Zhang Rong, JStage Technology Limited, and Mr. Lam Shu Song | Name | Capacity & Nature of Interest | Number of Ordinary Shares Held | Approx. % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Zhang Rong | Beneficial owner (Registered Shareholder) | 15,949,499 | 21.77% | | | Beneficial owner (Associated Interest) | 25,730 | 0.04% | | | Interest through a controlled corporation | 3,134,800 | 4.28% | | JStage Technology Limited | Beneficial owner (Registered Shareholder) | 11,500,000 | 15.70% | | Mr. Lam Shu Song | Beneficial owner (Registered Shareholder) | 3,801,300 | 5.19% | | Ms. Choi Hing Lin | Interest of spouse | 3,801,300 | 5.19% | - Save as disclosed above, as at 30 June 2025, no other person had an interest or short position in the shares or underlying shares of the Company which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO[123](index=123&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=52&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) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - Neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company's listed securities (including the sale of treasury shares) during the six months ended 30 June 2025[124](index=124&type=chunk) [Competing Interests of Directors and Controlling Shareholders](index=52&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%8E%A7%E8%82%A1%E8%82%A1%E6%9D%B1%E7%9A%84%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A) No director or controlling shareholder had any interest in a business that competes or is likely to compete with the Group's business - During the six months ended 30 June 2025 and up to the date of this report, none of the Directors or the controlling shareholders of the Company was considered to have an interest in a business which competes or is likely to compete, either directly or indirectly, with the business of the Group[125](index=125&type=chunk) [Corporate Governance](index=52&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) This section outlines the Company's corporate governance practices, compliance with the GEM Listing Rules, and internal control systems [Corporate Governance Practices](index=52&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Company complied with the Corporate Governance Code with two deviations regarding director attendance and the combined role of Chairman and CEO - For the six months ended 30 June 2025, the Company has complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 to the GEM Listing Rules, except for the deviations described below[126](index=126&type=chunk) - Code provision C.1.5 requires non-executive directors to attend general meetings, but Ms. Leung Ka Ming and Mr. Chu Woon Chiu were unable to attend the AGM on 24 June 2025 due to other business engagements[126](index=126&type=chunk) - Code provision C.2.1 stipulates that the roles of chairman and chief executive should be separate, but Mr. Wong King Shiu currently holds both positions, which the Board believes is beneficial for policy continuity and business stability[127](index=127&type=chunk)[129](index=129&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=53&type=section&id=%E6%9C%89%E9%97%9C%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%93%8D%E5%AE%88%E5%AE%88%E5%89%87) The Company has adopted a code of conduct for directors' securities transactions, and all directors have complied with it - The Company has adopted a code of conduct regarding securities transactions by Directors on terms no less exacting than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[130](index=130&type=chunk) - Having made specific enquiry of all Directors, the Directors have complied with the required standard of dealings and the code of conduct throughout the six months ended 30 June 2025[130](index=130&type=chunk) [Audit Committee](index=53&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, oversees financial reporting, risk management, and internal controls - The Company has established an audit committee with written terms of reference in compliance with Rules 5.28 and 5.29 of the GEM Listing Rules[131](index=131&type=chunk) - The Audit Committee consists of three independent non-executive Directors, namely Mr. Wong Hoi Kuen (Chairman), Dr. Chan Shing Yung, and Mr. Chu Woon Chiu[131](index=131&type=chunk) - The role and function of the Audit Committee include overseeing the Group's financial reporting process, reviewing the consolidated financial statements, and monitoring the Company's financial reporting system, risk management, and internal control systems[131](index=131&type=chunk) [Change of Information of Directors](index=53&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E5%8B%95) This section notes the updated roles of Executive Director Mr. Chu Kiu Wah - Mr. Chu Kiu Wah is an Executive Director of the Company, the current Co-Chairman of the Hong Kong Web3 Association, Legal Advisor of Hong Kong Web3 Women, and a Director of the Hong Kong Corporate Counsel Association[132](index=132&type=chunk) [Continuing Disclosure Obligations under the GEM Listing Rules](index=54&type=section&id=%E6%A0%B9%E6%93%9AGEM%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E6%89%BF%E6%93%94%E7%9A%84%E6%8C%81%E7%BA%8C%E6%8A%AB%E9%9C%B2%E8%B2%AC%E4%BB%BB) The Company confirms it has no other disclosure obligations under GEM Listing Rules 17.22, 17.23, and 17.24 - The Company does not have any other disclosure obligations under Rules 17.22, 17.23 and 17.24 of the GEM Listing Rules[133](index=133&type=chunk) [Internal Control and Risk Management](index=54&type=section&id=%E5%85%A7%E9%83%A8%E7%9B%A3%E6%8E%A7%E5%8F%8A%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Board is responsible for maintaining effective internal control and risk management systems, which are reviewed at least annually - The Board has the ultimate responsibility for ensuring that the Group maintains sound and effective internal control and risk management systems to safeguard shareholders' investments and the Group's assets[134](index=134&type=chunk) - The Group has established a risk management organisational framework, which consists of the Board, the Audit Committee and the senior management of the Group[134](index=134&type=chunk) - The Board, through the Audit Committee, reviews the effectiveness of these systems at least annually, covering all material control areas[134](index=134&type=chunk) [Interim Dividend](index=54&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of any interim dividend for the six months ended 30 June 2025 - The Board does not recommend the payment of any interim dividend for the six months ended 30 June 2025 (2024: Nil)[135](index=135&type=chunk) [Events After the Reporting Period](index=54&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No other significant events occurred after the reporting period other than those already disclosed in this report - Save as disclosed in this report, there are no other significant events after the reporting period[136](index=136&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 KAISA CAPITAL INVESTMENT HOLDINGS LIMITED 佳兆業資本投資集團有限公司 （ 於開曼群島註冊成立之有限公司 ） （股份代號：936） 截至二零二五年六月三十日止六個月之中期業績公布 佳兆業資本投資集團有限公司（「本公司」，連同其附屬公司，統稱「本集團」）董事 會（分別簡稱「董事」及「董事會」）宣布本集團截至二零二五年六月三十日止六個 月（「本期間」）之未經審核簡明綜合業績連同截至二零二四年六月三十日止六個月 的未經審核比較數字如下： 簡明綜合損益及其他全面收益表 截至二零二五年六月三十日止六個月 截至六月三十日止六個月 | | | 二零二五年 | 二零二四年 | | --- | --- | --- | --- | | | 附註 | 千港元 | 千港元 | | | | （未經審核） | （未經審核） | | | | | （經重列） | | 持續經營業務 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 China Conch Environment Protection Holdings Limited 中國海螺環保控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：587） 合 併 損 益 表 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 — 未 經 審 核 （以 人 民 幣 元 列 示） | | | | | | | | | | | | | | | | | | 截 | 二 | 至 零 | 六 二 | 月 五 | 三 十 年 | 日 二 | 止 零 | 六 個 二 四 | 月 年 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | ...

[Summary](index=1&type=section&id=Summary) The Group's total turnover for the first half of 2025 slightly decreased by 0.84% to RMB 142.73 million, while profit attributable to shareholders significantly dropped by 81.43% to RMB 0.42 million, with no interim dividend recommended Summary Financial Performance | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Turnover | 142,730,025.78 | 143,945,328.65 | -0.84 | | Sales of Copper Cable, Optical Cable, Optical Fiber & Related Products | 121,457,675.18 | - | -0.74 | | Optical Fiber Sales (Chengdu Zhongzhu) | 78,879,068.35 | - | +7.77 | | Profit Attributable to Company Shareholders | 420,906.88 | 2,264,382.85 | -81.43 | | Profit Attributable to Minority Shareholders | 590,116.63 | -1,784,416.22 | Turned loss into profit | - The Board recommends no interim dividend for the six months ended June 30, 2025[4](index=4&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the unaudited consolidated financial statements for the six months ended June 30, 2025, including the consolidated balance sheet, income statement, cash flow statement, and statement of changes in equity, providing a comprehensive overview of the Group's financial position, operating results, and cash flows [Consolidated Balance Sheet](index=2&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the Group's total assets were RMB 1,028.56 million, a 2.37% increase from the end of the previous year, with current assets accounting for 76.70% and total liabilities rising to 15.56% of total assets Consolidated Balance Sheet Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,028,563,487.81 | 1,004,717,519.26 | +2.37 | | Total Current Assets | 788,912,072.25 | 762,450,955.52 | +3.47 | | Total Non-current Assets | 239,651,415.56 | 242,266,563.74 | -1.08 | | Total Liabilities | 160,021,947.74 | 137,858,801.05 | +16.08 | | Liabilities to Total Assets Ratio | 15.56% | 13.72% | +1.84pp | | Total Equity Attributable to Parent Company Owners | 779,315,128.23 | 778,336,316.29 | +0.13 | | Minority Interests | 89,226,411.84 | 88,522,401.92 | +0.80 | [Consolidated Income Statement](index=6&type=section&id=Consolidated%20Income%20Statement) The Group's total operating revenue for the period was RMB 142.73 million, a slight decrease of 0.84% year-on-year, while net profit attributable to parent company owners significantly declined by 81.43% to RMB 0.42 million, and minority shareholder profit turned from loss to gain Consolidated Income Statement Highlights | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 142,730,025.78 | 143,945,328.65 | -0.84 | | Total Operating Cost | 142,661,447.04 | 145,903,814.15 | -2.22 | | Operating Profit | 425,888.37 | 475,365.22 | -10.41 | | Total Profit | 1,012,556.83 | 479,966.63 | +110.95 | | Net Profit | 1,011,023.51 | 479,966.63 | +110.64 | | Net Profit Attributable to Parent Company Owners | 420,906.88 | 2,264,382.85 | -81.43 | | Minority Shareholder Profit/Loss | 590,116.63 | -1,784,416.22 | Turned loss into profit | | Basic Earnings Per Share | 0.0011 | 0.0057 | -80.70 | [Consolidated Cash Flow Statement](index=10&type=section&id=Consolidated%20Cash%20Flow%20Statement) Net cash flow from operating activities for the period significantly decreased by 95.94% to RMB 4.18 million, with net cash outflow from investing activities at RMB 3.49 million and from financing activities at RMB 4.07 million, resulting in a period-end cash and cash equivalents balance of RMB 431.80 million, down 8.67% year-on-year Consolidated Cash Flow Statement Highlights | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 4,178,674.72 | 103,007,492.33 | -95.94 | | Net Cash Flow from Investing Activities | -3,493,304.26 | -9,099,257.81 | Improved | | Net Cash Flow from Financing Activities | -4,074,284.00 | -270,513.96 | Increased outflow | | Net Increase in Cash and Cash Equivalents | -8,994,867.09 | 99,243,674.11 | Significant decrease | | Period-end Cash and Cash Equivalents Balance | 431,796,032.36 | 472,771,617.31 | -8.67 | [Consolidated Statement of Changes in Equity](index=15&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) The total equity attributable to parent company owners slightly increased to RMB 779.32 million from the end of the previous year, with minority interests also rising, reflecting the overall stability of the Group's equity Consolidated Statement of Changes in Equity Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Parent Company Owners | 779,315,128.23 | 778,336,316.29 | +0.13 | | Minority Interests | 89,226,411.84 | 88,522,401.92 | +0.80 | | Total Equity | 868,541,540.07 | 866,858,718.21 | +0.19 | [Notes to Financial Statements](index=17&type=section&id=Notes%20to%20Financial%20Statements) This section details key items in the Group's financial statements, including notes receivable, accounts receivable, financing for receivables, accounts payable, operating revenue and cost, taxes and surcharges, and financial expenses, providing insights into asset quality, operating efficiency, and cost structure [Notes Receivable](index=17&type=section&id=Notes%20Receivable) Period-end notes receivable totaled RMB 0.86 million, a significant decrease of 98.54% from the previous year-end, with the provision for bad debts rising to 10.29% due to increased provisions for commercial acceptance bills Notes Receivable Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Notes Receivable | 859,682.56 | 58,717,569.49 | -98.54 | | Provision for Bad Debts | 98,567.28 | 284,208.76 | -65.25 | | Provision for Bad Debts Ratio | 10.29% | 0.48% | +9.81pp | [Accounts Receivable](index=19&type=section&id=Accounts%20Receivable) Period-end accounts receivable balance was RMB 193.69 million, a 25.43% increase from the previous year-end, with total bad debt provision at RMB 35.17 million (18.16% of the total), and the top five accounts receivable accounting for 61.12% Accounts Receivable Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Accounts Receivable Book Balance | 193,687,840.50 | 154,422,197.72 | +25.43 | | Total Provision for Bad Debts | 35,167,510.70 | 34,265,049.71 | +2.63 | | Provision for Bad Debts Ratio | 18.16% | 22.19% | -4.03pp | Top Five Accounts Receivable by Entity | Entity Name | Period-end Book Balance (RMB) | Share of Total Accounts Receivable (%) | Provision for Bad Debts (RMB) | | :--- | :--- | :--- | :--- | | Chengdu Siwei High-tech Industrial Park Co., Ltd. | 98,340,121.13 | 50.77 | 491,700.61 | | Zhongtian Technology Optical Fiber Co., Ltd. | 8,445,931.30 | 4.36 | 42,229.66 | | Zhuzhou CRRC Times Electric Co., Ltd. | 4,696,017.78 | 2.42 | 239,966.51 | | Maanshan Xindi Youwei Optical Fiber & Cable Co., Ltd. | 3,675,760.00 | 1.90 | 18,378.80 | | Chengdu Guoguang Electric Co., Ltd. | 3,243,312.00 | 1.67 | 202,724.96 | | **Subtotal** | **118,401,142.21** | **61.12** | **995,000.54** | [Financing for Receivables](index=23&type=section&id=Financing%20for%20Receivables) Period-end financing for receivables totaled RMB 58.21 million, primarily bank acceptance bills, representing a 21.96% increase from the previous year-end, with RMB 8.39 million in endorsed or discounted but unexpired bank acceptance bills derecognized due to high creditworthiness of acceptors Financing for Receivables Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Financing for Receivables | 58,207,632.93 | 47,730,010.46 | +21.96 | | Period-end Endorsed or Discounted Unexpired Bank Acceptance Bills | 8,391,552.16 | - | - | [Accounts Payable](index=24&type=section&id=Accounts%20Payable) Period-end accounts payable totaled RMB 77.31 million, a significant increase of 74.99% from the previous year-end, with major accounts payable over one year old, including Beijing Zhongpuda Technology Co., Ltd. and Deyang Xinfangyuan Nonferrous Metals Co., Ltd., remaining unsettled Accounts Payable Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Accounts Payable | 77,307,915.81 | 44,177,929.28 | +74.99 | Significant Accounts Payable Over One Year Old | Entity Name | Period-end (RMB) | Reason for Unsettled Balance | | :--- | :--- | :--- | | Beijing Zhongpuda Technology Co., Ltd. | 1,407,100.00 | Unsettled | | Deyang Xinfangyuan Nonferrous Metals Co., Ltd. | 270,961.37 | Unsettled | | **Subtotal** | **1,678,061.37** | - | [Operating Revenue and Operating Cost](index=24&type=section&id=Operating%20Revenue%20and%20Operating%20Cost) Total operating revenue for the period was RMB 142.73 million, with operating cost at RMB 114.64 million; main business revenue decreased by 2.47% year-on-year, while other business revenue increased by 8.54%, and optical fiber product revenue grew by 6.53% Operating Revenue and Cost Breakdown | Item | Current Period Revenue (RMB) | Current Period Cost (RMB) | Prior Period Revenue (RMB) | Prior Period Cost (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 119,700,667.17 | 106,727,752.71 | 122,727,160.01 | 108,571,653.72 | | Other Business | 23,029,358.61 | 7,916,722.37 | 21,218,168.64 | 7,012,779.20 | | **Total** | **142,730,025.78** | **114,644,475.08** | **143,945,328.65** | **115,584,432.92** | Revenue by Product/Service Type | Product/Service Type | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Optical Fiber Products | 77,384,671.41 | 72,640,496.52 | +6.53 | | Railway Cables | 9,021,280.57 | 15,479,817.76 | -41.72 | | Optical Cable Components | 29,163,235.01 | 31,398,250.27 | -7.12 | [Taxes and Surcharges](index=25&type=section&id=Taxes%20and%20Surcharges) Total taxes and surcharges for the period amounted to RMB 3.83 million, a slight decrease of 0.66% year-on-year, primarily comprising property tax, land use tax, stamp duty, urban maintenance and construction tax, and education surcharges Taxes and Surcharges Breakdown | Item | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Property Tax | 2,426,981.05 | 2,352,043.96 | +3.19 | | Land Use Tax | 1,198,082.30 | 1,198,082.30 | 0.00 | | Stamp Duty | 94,691.06 | 86,858.95 | +9.02 | | Urban Maintenance and Construction Tax | 64,628.94 | 127,872.78 | -49.46 | | Education Surcharge | 27,698.14 | 54,802.63 | -49.45 | | **Total** | **3,834,143.40** | **3,859,764.57** | **-0.66** | [Financial Expenses](index=25&type=section&id=Financial%20Expenses) Financial expenses for the period were negative RMB 3.64 million, primarily due to interest income of RMB 3.76 million, which increased by RMB 0.27 million year-on-year, effectively offsetting interest expenses and exchange losses Financial Expenses Breakdown | Item | Current Period (RMB) | Prior Period (RMB) | YoY Change (RMB) | | :--- | :--- | :--- | :--- | | Interest Expense | 22,068.83 | 34,368.28 | -12,299.45 | | Interest Income | 3,761,203.06 | 3,493,378.70 | +267,824.36 | | Exchange Gains/Losses | 79,431.65 | -100,275.25 | Turned loss into profit | | Bank Charges | 20,013.40 | 12,210.61 | +7,802.79 | | **Total** | **-3,639,689.18** | **-3,547,075.06** | **-92,614.12** | [Interests in Other Entities](index=26&type=section&id=Interests%20in%20Other%20Entities) This section discloses the Group's main subsidiaries and associates, including their composition and key financial information, highlighting Chengdu Zhongzhu Optical Fiber Co., Ltd. as a significant non-wholly owned subsidiary with improved assets, liabilities, net profit, and comprehensive income [Composition of the Enterprise Group](index=26&type=section&id=Composition%20of%20the%20Enterprise%20Group) The Group's main subsidiaries include Chengdu Zhongzhu Optical Fiber Co., Ltd. (60% stake) and Chengdu Putian New Material Co., Ltd. (100% stake), both engaged in manufacturing and acquired through business combinations not under common control Key Subsidiaries | Subsidiary Name | Registered Capital | Nature of Business | Shareholding (%) | | :--- | :--- | :--- | :--- | | Chengdu Zhongzhu Optical Fiber Co., Ltd. | US$17 million | Manufacturing | 60.00 | | Chengdu Putian New Material Co., Ltd. | RMB 59.82 million | Manufacturing | 100.00 | - The company includes Chengdu Zhongzhu Optical Fiber Co., Ltd. and 2 other subsidiaries in its consolidated financial statements[49](index=49&type=chunk) [Significant Non-Wholly Owned Subsidiaries](index=26&type=section&id=Significant%20Non-Wholly%20Owned%20Subsidiaries) Chengdu Zhongzhu Optical Fiber Co., Ltd. is a significant non-wholly owned subsidiary with a 40% minority interest, reporting RMB 0.59 million in profit attributable to minority shareholders for the period and a period-end minority interest balance of RMB 89.23 million, with significant improvements in operating revenue, net profit, and operating cash flow Chengdu Zhongzhu Optical Fiber Co., Ltd. - Minority Interests | Subsidiary Name | Minority Shareholding (%) | Current Period Profit Attributable to Minority Shareholders (RMB) | Period-end Minority Interests Balance (RMB) | | :--- | :--- | :--- | :--- | | Chengdu Zhongzhu Optical Fiber Co., Ltd. | 40.00 | 590,116.63 | 89,226,411.84 | Chengdu Zhongzhu Optical Fiber Co., Ltd. - Financial Performance | Indicator | Current Period (RMB) | Prior Period (RMB) | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 79,143,826.67 | 73,188,849.36 | Growth | | Net Profit | 1,475,291.57 | -4,461,040.56 | Turned loss into profit | | Total Comprehensive Income | 1,475,291.57 | -4,461,040.56 | Turned loss into profit | | Operating Cash Flow | 8,893,851.94 | 29,145,939.65 | Decrease | [Significant Associates](index=28&type=section&id=Significant%20Associates) Putian Farsun Optical Communication Co., Ltd. is a significant associate with a 10.00% stake, accounted for using the equity method, reporting operating revenue of RMB 92.45 million for the period and a net loss of RMB 1.85 million, a significant reduction in loss from the prior period Putian Farsun Optical Communication Co., Ltd. - Overview | Associate Name | Nature of Business | Shareholding (%) | Accounting Method | | :--- | :--- | :--- | :--- | | Putian Farsun Optical Communication Co., Ltd. | Manufacturing | 10.00 | Equity method | Putian Farsun Optical Communication Co., Ltd. - Financial Performance | Indicator | Current Period (RMB) | Prior Period (RMB) | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 92,449,174.18 | 69,348,778.47 | Growth | | Net Profit | -1,852,040.88 | -11,711,330.66 | Loss narrowed | | Total Comprehensive Income | -1,852,040.88 | -11,711,330.66 | Loss narrowed | [Other Significant Matters and Supplementary Information](index=29&type=section&id=Other%20Significant%20Matters%20and%20Supplementary%20Information) This section covers the Group's segment information, leases, non-recurring gains and losses, and detailed calculations of return on net assets and earnings per share, indicating that non-recurring gains and losses had a negative impact on net profit attributable to parent company shareholders, and both EPS and ROE declined [Segment Information](index=29&type=section&id=Segment%20Information) The Group identifies reporting segments based on copper cable, cable assembly related products, optical communication products, and park operations businesses, with optical communication products contributing the highest operating revenue and copper cable, cable assembly related products having the highest total assets - The company determines reporting segments based on internal organizational structure, management requirements, and internal reporting systems, evaluating performance for copper cable, cable assembly related products, optical communication products, and park operations businesses[55](index=55&type=chunk) Segment Financial Data | Business Segment | Operating Revenue (RMB) | Operating Cost (RMB) | Total Assets (RMB) | Total Liabilities (RMB) | | :--- | :--- | :--- | :--- | :--- | | Copper Cable, Cable Assembly Related Products | 60,082,664.63 | 42,990,462.43 | 804,617,788.43 | 101,007,893.90 | | Optical Communication Products | 79,143,826.67 | 70,519,424.19 | 250,058,908.40 | 26,980,368.42 | | Park Operations | 4,855,502.12 | 2,065,252.12 | 88,274,676.47 | 42,662,250.29 | | **Total** | **142,730,025.78** | **114,644,475.08** | **1,028,563,487.81** | **160,021,947.74** | [Leases](index=29&type=section&id=Leases) The company's lease income as a lessor for the period was RMB 14.42 million, a slight decrease of 2.05% from the prior period Lease Income | Item | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Lease Income | 14,424,234.66 | 14,726,388.94 | -2.05 | [Non-Recurring Gains and Losses](index=30&type=section&id=Non-Recurring%20Gains%20and%20Losses) Net non-recurring gains and losses for the period amounted to RMB 1.97 million, primarily from government subsidies and other non-operating income, with net non-recurring gains and losses attributable to parent company owners being RMB 1.90 million after tax and minority interest impacts Non-Recurring Gains and Losses Breakdown | Item | Amount (RMB) | | :--- | :--- | | Government Subsidies Included in Current Profit/Loss | 1,396,789.60 | | Debt Restructuring Gains/Losses | -11,613.00 | | Other Non-operating Income and Expenses | 586,668.46 | | **Subtotal** | **1,971,845.06** | | Less: Income Tax Impact | - | | Less: Minority Interests Impact | 69,310.55 | | **Net Non-Recurring Gains and Losses Attributable to Parent Company Owners** | **1,902,534.51** | [Return on Net Assets and Earnings Per Share](index=30&type=section&id=Return%20on%20Net%20Assets%20and%20Earnings%20Per%20Share) The weighted average return on net assets attributable to ordinary shareholders for the period was 0.05%, with basic earnings per share at RMB 0.0011/share; after deducting non-recurring gains and losses, these figures were -0.19% and -RMB 0.0037/share, respectively, indicating a significant positive impact of non-recurring gains and losses on profitability Return on Net Assets and Earnings Per Share | Indicator | Return on Net Assets (%) | Basic EPS (RMB/share) | Diluted EPS (RMB/share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders | 0.05 | 0.0011 | 0.0011 | | Net Profit Attributable to Ordinary Shareholders After Deducting Non-Recurring Gains and Losses | -0.19 | -0.0037 | -0.0037 | - The calculation process for diluted earnings per share is the same as for basic earnings per share[62](index=62&type=chunk) [Management Discussion and Analysis](index=33&type=section&id=Management%20Discussion%20and%20Analysis) Management discusses the Group's operating performance, key business progress, internal management, and financial position for the first half of 2025, noting a slight decrease in turnover but growth in optical fiber sales, active strategic adjustments, and increased total assets and liabilities despite a significant drop in operating cash flow [Performance Analysis](index=33&type=section&id=Performance%20Analysis) The Group's total turnover for the period was RMB 142.73 million, a 0.84% decrease year-on-year, with cable business revenue down 27.1% and cable assembly business revenue down 6.41% due to market decline and delayed tenders, while optical fiber sales by Chengdu Zhongzhu increased by 7.77% Revenue by Business Type | Business Type | Operating Revenue (RMB) | YoY Change (%) | | :--- | :--- | :--- | | Group Total Turnover | 142,730,025.78 | -0.84 | | Cable Business | 13,521,422.71 | -27.1 | | Cable Assembly Business | 29,516,295.21 | -6.41 | | Optical Fiber Sales (Chengdu Zhongzhu) | 78,879,068.35 | +7.77 | - The primary reason for the decrease in main business revenue is the market downturn in the cable business and delayed tenders from major customers[64](index=64&type=chunk) [Key Business Review](index=34&type=section&id=Key%20Business%20Review) The Group actively adjusted its production and operation strategies to adapt to market changes, focusing on new product development, digital transformation, business expansion, and cost reduction across its cable, cable assembly, optoelectronic, and optical fiber businesses [Cable Business](index=34&type=section&id=Cable%20Business) Facing a significant decline in railway transportation market demand, the company actively developed new products such as silicone rubber cables, photovoltaic cables, and air conditioning wires, and advanced sample verification for fluoroplastic cables and tether cables to enter the market - Accelerated new product development, adding new products such as silicone rubber cables, photovoltaic cables, and air conditioning wires, which have entered the bidding and quotation stage[65](index=65&type=chunk) - Continuously tracked customer demand, with samples of fluoroplastic cables and tether cables provided to customers for verification, awaiting market sales and production delivery stages[65](index=65&type=chunk) [Cable Assembly Business](index=34&type=section&id=Cable%20Assembly%20Business) Through digital workshop construction and management improvements, the cable assembly business achieved a 32% year-on-year increase in man-hour output and sales exceeding RMB 60 million, securing market orders for micro-fine cable assemblies, 67GHz semi-rigid cable assemblies, and chassis assembly, while also developing phase-stable and polarization-maintaining optical cable assemblies - Through digital workshop construction and management improvements, the cable assembly business's man-hour output increased by **32%** year-on-year compared to 2024, with sales exceeding **RMB 60 million**[66](index=66&type=chunk) - Multiple assembly businesses achieved breakthroughs, with the micro-fine cable assembly R&D project results, 67GHz semi-rigid cable assemblies, and chassis assembly businesses all securing market orders[66](index=66&type=chunk) [Optoelectronic Business](index=34&type=section&id=Optoelectronic%20Business) The optoelectronic business, driven by market demand, actively promoted delay rings, hydrophone rings, and polarization-maintaining rings, establishing long-term partnerships with multiple military research institutes and enterprises for mass production, and successfully incubating and selling new products like wavelength division multiplexers and optical modules - Actively promoted delay rings, hydrophone rings, and polarization-maintaining rings, establishing long-term partnerships with multiple military research institutes and enterprises for mass production[67](index=67&type=chunk) - New products such as wavelength division multiplexers and optical modules have completed incubation and achieved order sales in the market[67](index=67&type=chunk) [Optical Fiber Business](index=35&type=section&id=Optical%20Fiber%20Business) Facing structural overcapacity and low prices in the optical fiber market, the company maintained a market-oriented approach, accelerated new optical fiber R&D, increased the sales proportion of small-diameter and high-margin optical fibers, and continuously reduced costs and enhanced efficiency through production process innovation and refined management - Adhered to market demand, accelerating new optical fiber R&D to enhance product competitiveness and improve the product matrix[68](index=68&type=chunk) - Focused on niche markets, increasing the sales proportion of small-diameter and high-margin optical fibers to expand revenue and optimize profit structure[68](index=68&type=chunk) - Continuously promoted cost reduction and efficiency improvement, driven by production process innovation and refined management, to continuously enhance production efficiency and reduce overall costs[68](index=68&type=chunk) [Internal Management Initiatives](index=35&type=section&id=Internal%20Management%20Initiatives) The Group undertook various initiatives in Party, labor union, and youth league building, human resources, finance, asset, supply chain, quality, information technology, safety management, and risk control, including deepening Party building integration, strengthening talent development, enhancing cost control, optimizing asset allocation, improving supply chain resilience, refining quality management, upgrading ERP systems, implementing safety production responsibilities, and strengthening risk screening and internal control [Party, Labor Union, and Youth League Building](index=35&type=section&id=Party%2C%20Labor%20Union%2C%20and%20Youth%20League%20Building) The company's Party Committee deepened the integration of Party building with core work, conducting learning education, democratic life meetings, and integrity education to ensure the implementation of ideological responsibility, while the labor union strengthened information disclosure, organized cultural and sports activities, and provided care to enhance employee well-being and promote democratic management - Promoted deep integration of Party building with core work, diligently carrying out learning education and organizing democratic life meetings for the leadership team and comprehensive strict Party governance work meetings[69](index=69&type=chunk) - Strengthened information disclosure, publishing hot issues of concern to employees through WeChat official accounts and factory affairs public bulletin boards, guiding employees to participate in democratic management and supervision[70](index=70&type=chunk) [Human Resources Management](index=36&type=section&id=Human%20Resources%20Management) The company advanced talent pipeline construction, conducted talent inventory and identification, established a core backbone talent pool, strengthened sales and R&D capabilities, adjusted cadre teams, and focused on employee professional knowledge training and position level adjustments - Promoted talent pipeline construction, conducting talent inventory and identification to establish core and backbone talent pools for various categories within the company, ensuring talent reserves[71](index=71&type=chunk) - Strengthened sales and R&D capabilities, selecting and adjusting corresponding cadre team configurations, with a focus on enhancing employee professional knowledge training[71](index=71&type=chunk) [Financial Management](index=36&type=section&id=Financial%20Management) The company strengthened fundamental financial management, formulated cost planning schemes, provided cost control suggestions by delving into business operations, conducted cost data analysis, completed business budget decomposition, tracking, and fluctuation warnings, and advanced the construction of an integrated cost system - Formulated cost planning schemes, delving into business operations to provide reasonable cost control suggestions, and conducting cost data analysis and disclosure[72](index=72&type=chunk) - Enhanced integrated and penetrative cost control methods, accelerated the construction of an integrated cost system, and completed the initial information data cleanup[72](index=72&type=chunk) [Asset Management](index=37&type=section&id=Asset%20Management) The company carried out annual fixed asset investment work, prioritizing support for optoelectronic device capability building, cable assembly digital capability enhancement, and cable production capacity supplementation, while also conducting disposal of fixed assets without use value to reduce management costs and risks - Conducted annual fixed asset investment work based on prioritizing support for optoelectronic device capability building, enhancing the digital capabilities of assemblies, and appropriately supplementing cable production capacity[73](index=73&type=chunk) - Carried out asset write-off and disposal work for fixed assets without use value, effectively reducing the company's asset management costs and risks[73](index=73&type=chunk) [Supply Chain Management](index=37&type=section&id=Supply%20Chain%20Management) The company strengthened supply chain management to enhance resilience in responding to market changes, collaborated on penetrative task management, promoted refined warehouse management and batch management, strengthened project plan management, formulated and monitored the execution of annual R&D project plans, and improved the accuracy of plan execution - Strengthened supply chain management to enhance resilience in responding to market changes, coordinating penetrative task management according to business development plans[74](index=74&type=chunk) - Promoted refined warehouse management, strengthened batch management principles, implemented material card management, and reinforced project plan management by formulating annual R&D project plans[74](index=74&type=chunk) [Quality Management](index=37&type=section&id=Quality%20Management) The company continuously improved its quality management system, revised the "QEOHS Management Manual" and procedural documents, strengthened management system operation inspections, enhanced qualification management, and obtained energy management system and dual-carbon certifications for the first time, resulting in a 48.23% year-on-year reduction in low-level quality issues for cable assembly products and nearly 20% improvement in inspection efficiency through special rectification - Continuously improved the quality management system, completing the revision and review of the "QEOHS Management Manual" and procedural documents, and management methods[75](index=75&type=chunk) - Obtained energy management system and dual-carbon certification for the first time, clarifying energy benchmarks, greenhouse gas emissions, and product carbon footprint baselines[75](index=75&type=chunk) - Low-level quality issues for cable assembly products decreased by **48.23%** year-on-year, with inspection capacity reaching over **600,000 man-hours/year** and inspection efficiency improving by nearly **20%**[75](index=75&type=chunk) [Information Technology Development](index=38&type=section&id=Information%20Technology%20Development) The company initiated ERP system re-upgrade work to strengthen the financial management system with the goal of business-finance integration, streamlined internal R&D processes to blueprint the R&D management information system, and established an operational dashboard to provide visual support for business decisions - Initiated ERP system re-upgrade work, aiming for business-finance integration to strengthen the company's financial management system[76](index=76&type=chunk) - Established an operational dashboard to display key operational data, providing visual support for the company's business decisions[76](index=76&type=chunk) [Safety Management](index=38&type=section&id=Safety%20Management) The company strengthened safety production management objectives and indicators control, launched the "Foundation Strengthening Year" implementation plan, revised safety management system regulations and operating procedures, reinforced "penetrative" management to implement safety production responsibilities, and reported no safety, environmental, fire, or security incidents during the period - Strengthened safety production management objectives and indicators control, launching the "Foundation Strengthening Year" phase implementation plan[77](index=77&type=chunk) - The Group experienced no safety, environmental, fire, or security incidents, with the company's overall safety production situation remaining under control[77](index=77&type=chunk) [Risk Control](index=38&type=section&id=Risk%20Control) The company strengthened risk management and control, conducted full-level risk screening, identified 10 key enterprise risks for 2025, and tracked and warned through 38 monitoring thresholds, while continuously enhancing internal control management and completing the rectification of 8 internal control deficiencies identified in the 2024 self-assessment - Conducted full-level risk screening, identifying **10 key enterprise risks** for 2025 and tracking and warning through **38 monitoring thresholds**[78](index=78&type=chunk) - Continuously enhanced internal control management and supervision, completing the rectification of **8 internal control deficiencies** identified in the 2024 internal control self-assessment[78](index=78&type=chunk) [Financial Analysis](index=39&type=section&id=Financial%20Analysis) The Group's total assets increased by 2.37% for the period, with current assets accounting for 76.70%; net cash flow from operating activities significantly decreased by 95.94%, and bank balances and cash decreased by 2.04%; total liabilities increased by 16.08%, raising the liabilities to total assets ratio by 1.84 percentage points; sales expenses increased by 27.25%, while administrative and R&D expenses decreased, and financial expenses improved due to increased interest income, with the average gross profit margin slightly down by 0.02 percentage points Key Financial Indicators | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,028,563,487.81 | 1,004,717,519.26 | +2.37 | | Net Cash Flow from Operating Activities | 4,178,674.72 | 103,007,492.33 | -95.94 | | Bank Balances and Cash | 431,796,032.36 | 440,790,899.45 | -2.04 | | Total Liabilities | 160,021,947.74 | 137,858,801.05 | +16.08 | | Liabilities to Total Assets Ratio | 15.56% | 13.72% | +1.84pp | | Selling Expenses | 3,319,061.96 | 2,608,259.24 | +27.25 | | Administrative Expenses | 18,106,519.45 | 20,601,215.58 | -12.11 | | R&D Expenses | 6,396,936.33 | 6,797,216.90 | -5.89 | | Financial Expenses | -3,639,689.18 | -3,547,075.06 | Interest income increased by RMB 267,824.36 | | Average Gross Profit Margin | 19.68% | 19.70% | -0.02pp | [Liquidity Analysis](index=40&type=section&id=Liquidity%20Analysis) As of June 30, 2025, the Group's current ratio was approximately 7.29 and quick ratio was approximately 6.02, demonstrating strong short-term solvency Liquidity Ratios | Indicator | Value | | :--- | :--- | | Current Ratio | 7.29 | | Quick Ratio | 6.02 | [Financial Resources Analysis](index=40&type=section&id=Financial%20Resources%20Analysis) As of June 30, 2025, the Group had no long-term borrowings and bank deposits and cash amounted to RMB 431.80 million, indicating a low short-term debt risk - The Group has no long-term borrowings, and bank deposits and cash amounted to **RMB 431,796,032.36**, indicating a low short-term debt risk[84](index=84&type=chunk) [Group Capital Structure](index=40&type=section&id=Group%20Capital%20Structure) The Group's funding sources include bank loans and proceeds from share issuance, managed under strict financial management policies, with no improper conduct such as overdue debts or unfulfilled obligations during the period, and the Group will enhance fund allocation and management to maximize fund utilization - The Group's funding sources are bank loans and proceeds from the company's share issuance[85](index=85&type=chunk) - During the period, there were no improper acts such as overdue debt repayment or unfulfilled obligations[85](index=85&type=chunk) [Contingent Liabilities](index=40&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities (December 31, 2024: Nil)[86](index=86&type=chunk) [Business Outlook](index=40&type=section&id=Business%20Outlook) Looking ahead to the second half of 2025, the company will focus on industrial development, continuous cost reduction and efficiency improvement, and internal control optimization to achieve annual operating targets, including strengthening market expansion, new product R&D, digital workshop construction, high-value-added market penetration, and overall enhancement of internal management [Operating Environment and Measures Taken](index=40&type=section&id=Operating%20Environment%20and%20Measures%20Taken) The company will strengthen market expansion and new product R&D for its cable business, accelerate the implementation of digital workshops and expand product lines for cable assembly, enhance market promotion and production capacity for optoelectronic business, and focus on niche areas, new product R&D, and overseas market expansion for optical fiber business [Cable Business](index=40&type=section&id=Cable%20Business) In the second half, the cable business will strengthen market expansion, identify new orders and customers, accelerate new product R&D, optimize production processes, reduce production costs, and enhance core product competitiveness - Strengthened market development efforts, identifying new orders from existing customers and actively developing new customers, participating in bidding and quotations on major platforms[88](index=88&type=chunk) - Accelerated new product R&D progress, optimized production processes, reduced production costs, enhanced core product competitiveness, and aimed to secure market orders as soon as possible[88](index=88&type=chunk) [Cable Assembly Business](index=41&type=section&id=Cable%20Assembly%20Business) The cable assembly business will accelerate the implementation of digital workshops and plan for a second phase, optimizing production processes through automation equipment to reduce manufacturing costs, while expanding harness business through chassis business, developing new products and customers to gain market competitive advantages - Accelerated the implementation of digital workshops and promoted the planning of a second phase, ensuring simultaneous improvement in business capacity and quality, continuously optimizing production processes, and reducing manufacturing costs[89](index=89&type=chunk) - Expanded internal harness business through chassis business, developed new products to expand product lines, and developed new customers while tapping the potential of existing customers[89](index=89&type=chunk) [Optoelectronic Business](index=41&type=section&id=Optoelectronic%20Business) The optoelectronic business will strengthen market expansion, promote mature products such as optical fiber rings and wavelength division multiplexers, increase production capacity, and focus on accelerating R&D for products like optical modules to gain market share - Strengthened market development efforts, promoting mature products such as optical fiber rings and wavelength division multiplexers, and increasing related production capacity construction[90](index=90&type=chunk) - Focused on accelerating R&D for products like optical modules, conducting product trials and testing, and submitting them to users for trial as quickly as possible to compete for market share[90](index=90&type=chunk) [Optical Fiber Business](index=41&type=section&id=Optical%20Fiber%20Business) Facing structural overcapacity in the optical fiber market, the optical fiber business will focus on niche areas, deeply cultivate high-value-added markets, continuously advance new product R&D, ensure production management and equipment maintenance, and actively explore overseas markets - Focused on niche areas, avoiding fierce competition, and continuously cultivating high-value-added optical fiber markets[91](index=91&type=chunk) - Continuously advanced new product R&D, explored new optical fiber markets, and actively expanded into overseas markets[91](index=91&type=chunk) [Management Enhancement](index=42&type=section&id=Management%20Enhancement) The company will comprehensively enhance the Group's operational and management levels by strengthening Party, labor union, and youth league building, optimizing human resource management, deepening financial cost control, improving asset management efficiency, perfecting supply chain assurance, reinforcing quality management systems, advancing information technology development, implementing safety production responsibilities, and deepening risk control [Party, Labor Union, and Youth League Building](index=42&type=section&id=Party%2C%20Labor%20Union%2C%20and%20Youth%20League%20Building) Continuously deepened the integration of Party building with business, optimized grassroots Party building mechanisms, and implemented "one post, dual responsibilities"; strengthened labor union construction, organized condolences, innovative activities, and skill competitions to enhance employee comprehensive quality and welfare - Persistently used Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era to inspire and educate, effectively organizing ideological and theoretical learning for all employees at different levels[92](index=92&type=chunk) - Continuously strengthened labor union construction, actively mobilizing and organizing applications for Chengdu Craftsman and innovation studios, and regularly carrying out various condolence activities to improve employee welfare and well-being[92](index=92&type=chunk) [Human Resources Management](index=42&type=section&id=Human%20Resources%20Management) Guided by "attracting talent, strengthening training, and serving well," the company will develop annual recruitment plans, strengthen talent pipeline construction and core backbone cultivation, optimize remuneration and welfare schemes, and enhance the application of performance appraisals to stimulate employee enthusiasm - Diligently carried out human resources management services guided by "attracting talent, strengthening training, and serving well," developing the company's annual recruitment plan and completing various personnel recruitment tasks[92](index=92&type=chunk) - Increased efforts in cultivating middle-level cadres and core backbones, further optimizing and adjusting the configuration of middle-level management personnel, and enhancing sales and market capabilities[92](index=92&type=chunk) [Financial Management](index=43&type=section&id=Financial%20Management) Strengthened internal management, continuously advanced the construction of an "integrated penetrative" cost management system to achieve business-finance data convergence, followed up on strict cost control, monitored expense execution, effectively controlled expense amounts, and continued to promote "two funds" reduction to improve asset quality - Continuously advanced the construction of an "integrated penetrative" cost management system, achieving the convergence of sales, procurement, production, and cost full-process business and financial data[93](index=93&type=chunk) - Followed up on strict cost control, monitored expense execution, effectively controlled expense amounts, and continued to promote the reduction of "two funds" (accounts receivable and inventory) to improve asset quality[93](index=93&type=chunk) [Asset Management](index=43&type=section&id=Asset%20Management) Systematically advanced the inventory and management enhancement of "3 major categories and 7 sub-categories" of physical assets, achieving "clear responsibilities, consistent accounts and physicals, and controlled recovery" in physical asset management; strengthened fixed asset management, strictly implemented investment plans as scheduled, and carried out annual inventory and application for asset write-off plans - Systematically advanced the inventory and management enhancement of "3 major categories and 7 sub-categories" of physical assets, achieving "clear responsibilities, consistent accounts and physicals, and controlled recovery" in physical asset management[94](index=94&type=chunk) - Strengthened fixed asset management, strictly implemented fixed asset investment plans as scheduled, and carried out annual fixed asset inventory and application for asset write-off plans[94](index=94&type=chunk) [Supply Chain Management](index=43&type=section&id=Supply%20Chain%20Management) Continuously improved the supply chain management system to enhance integrated supply chain assurance capabilities, strengthened planning rigidity around core business output to fully ensure the completion of scientific research and production tasks, and enhanced comprehensive supply chain coordination, monitoring, and support to ensure smooth order delivery - Continuously improved the supply chain management system to enhance integrated supply chain assurance capabilities[95](index=95&type=chunk) - Focused on core business output, strengthened planning rigidity, and fully ensured the completion of scientific research and production tasks[95](index=95&type=chunk) [Quality Management](index=43&type=section&id=Quality%20Management) Based on the annual quality work plan, promoted the implementation of optical communication product quality improvement plans and special rectification of low-level quality issues, enhancing execution driven by problems, development, and results to support and ensure industrial and scientific research work - Based on the annual quality work plan, promoted the implementation of optical communication product quality improvement plans, special rectification of low-level quality issues, quality issue tracking and resolution, and quality issue review and summary activities[96](index=96&type=chunk) [Information Technology Development](index=44&type=section&id=Information%20Technology%20Development) Further enhanced enterprise informatization, completed the core functional upgrade of the ERP system to achieve preliminary business-finance integration, promoted the launch of the R&D management information system to boost R&D system capabilities, and improved the operational dashboard functions to enable automatic data capture and dynamic updates - Completed the core functional upgrade of the ERP system to achieve preliminary business-finance integration, and promoted the launch of the R&D management information system to boost the company's R&D system capabilities[97](index=97&type=chunk) - Improved the operational dashboard functions to enable automatic data capture and dynamic updates[97](index=97&type=chunk) [Safety Management](index=44&type=section&id=Safety%20Management) Continuously advanced the three-level standardization construction of safety production, completed the "Foundation Strengthening Year" objectives, established "one post, one checklist" and implemented "penetrative" management to reinforce safety production responsibilities at all levels, strengthened basic management and safety training, enhanced supervision and inspection, and ensured closed-loop management of dynamic hidden hazard databases - Continuously advanced the three-level standardization construction of safety production, completing the "Foundation Strengthening Year" objectives of the three-year action plan for safety production fundamental improvement[98](index=98&type=chunk) - Established "one post, one checklist" and implemented "penetrative" management to reinforce safety production responsibilities at all levels, strengthened basic management, and improved safety management system regulations and safety operating procedures[98](index=98&type=chunk) [Risk Control](index=44&type=section&id=Risk%20Control) Deepened the construction of a comprehensive supervision and risk control system, promoted coordinated supervision across various types, improved information, resources, capabilities, and means sharing mechanisms, strengthened risk policy dissemination, and cultivated cadres and employees' risk prevention and compliance awareness to ensure early prevention, detection, and disposal of major risks - Deepened the requirements for comprehensive supervision and risk control, promoting coordinated supervision across various types, and improving mechanisms for sharing information, resources, capabilities, and means to enhance supervision effectiveness and control capabilities[99](index=99&type=chunk) - Strengthened risk policy dissemination, cultivating cadres and employees' awareness of risk prevention and compliance, and management capabilities to ensure early prevention, early detection, and early disposal of major risks[99](index=99&type=chunk) [Other Important Information](index=45&type=section&id=Other%20Important%20Information) This section provides detailed information on the Group's overdue time deposits, income tax incentives, asset pledges, employee and remuneration plans, and risk management, noting no overdue time deposits or asset pledges, slight changes in employee numbers and remuneration, and identified strategies for managing "two funds," quality, market, technology, and human resources risks [Overdue Time Deposits](index=45&type=section&id=Overdue%20Time%20Deposits) As of June 30, 2025, the Group had no overdue time deposits or other time deposits that could not be recovered upon maturity - As of June 30, 2025, the Group had no other deposits placed with non-bank financial institutions or entrusted deposits, nor any other time deposits that could not be recovered upon maturity[100](index=100&type=chunk) [Income Tax](index=45&type=section&id=Income%20Tax) Subsidiary Chengdu Zhongzhu Optical Fiber Co., Ltd. obtained a High-tech Enterprise Certificate in 2023, valid until 2025, entitling it to a preferential corporate income tax rate of 15% - Subsidiary Chengdu Zhongzhu Optical Fiber Co., Ltd. obtained a High-tech Enterprise Certificate on October 16, 2023, valid for three years from 2023 to 2025, enjoying a preferential corporate income tax rate of **15%**[101](index=101&type=chunk) [Asset Pledges](index=45&type=section&id=Asset%20Pledges) As of June 30, 2025, the Group had not pledged any assets for bank loans - As of June 30, 2025, the Group had not pledged any assets for bank loans (December 31, 2024: Nil)[102](index=102&type=chunk) [Group Employees and Remuneration Plan](index=45&type=section&id=Group%20Employees%20and%20Remuneration%20Plan) As of June 30, 2025, the Group's employee count increased to 463 from 436 at the previous year-end, with employee remuneration for the period at RMB 29.17 million, slightly lower than the prior period, and the Group determines remuneration based on performance, experience, and industry practice, offering retirement, medical, and housing provident fund benefits, as well as technical training opportunities Employee Statistics and Remuneration | Indicator | 2025年6月30日 | 2024年12月31日 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | 463人 | 436人 | +27人 | | Employee Remuneration (Current Period) | 29,169,959.48元 | 30,607,471.88元 (Prior Period) | -4.69% | - Other benefits provided to employees include retirement benefit plans, medical benefit plans, and housing provident fund plans, and the Group also provides technical training opportunities to employees[103](index=103&type=chunk) [Risk Management](index=45&type=section&id=Risk%20Management) The Group adheres to the philosophy that risk management serves its strategy, strengthening risk classification and daily management to balance risk and return, minimizing impact on operating performance, and has identified and formulated strategies for "two funds" management, quality, market, technology, and human resources risks - The Group adheres to the philosophy that risk management must be subordinate to and serve the Group's strategy, strengthening risk classification and daily management to make risk management a routine practice[104](index=104&type=chunk) - The objective of risk management is to achieve a balance between risk and return, minimizing the impact of risks on the Group's operating performance and maximizing the interests of shareholders and other equity investors[104](index=104&type=chunk) ["Two Funds" Management Risk](index=46&type=section&id=%22Two%20Funds%22%20Management%20Risk) The Group faces the risk of high proportions of accounts receivable and inventory in current assets and will manage this through clearing long-aged accounts receivable, legal collection, regular reconciliation, reasonable safety stock settings, and liquidating long-aged inventory - The "two funds" management risk faced by the Group refers to the risk of accounts receivable and inventory accounting for an excessively high proportion of current assets[105](index=105&type=chunk) - Will continue to clear long-aged accounts receivable; collect accounts receivable through various means, resorting to legal action if necessary; reasonably set safety stock levels, closely monitor actual inventory quantities and production plans to avoid excessive inventory; and continuously promote the liquidation of long-aged inventory[105](index=105&type=chunk) [Quality Risk](index=46&type=section&id=Quality%20Risk) The Group faces risks of non-conforming products being delivered without risk assessment or user permission, severe quality issues, and major quality incidents, which will be managed by strengthening training, clarifying quality control requirements, strict process execution, timely reporting and disposal of quality issues, experience summation, and quality responsibility accountability and incentives - The quality risks faced by the Group include the risk of non-conforming products being delivered without risk assessment and corresponding disposal or user permission; the risk of severe product quality issues leading to zero tolerance; and the risk of major quality incidents[106](index=106&type=chunk) - Will strengthen job-specific business knowledge and operational skills training to improve employee professional quality and capabilities; clarify quality control requirements for the entire product realization process and product quality issue disposal requirements in policies; and strictly pursue quality responsibilities and dishonest behaviors in accordance with the "Quality Responsibility Accountability and Incentive Management Measures"[106](index=106&type=chunk) [Market Risk](index=47&type=section&id=Market%20Risk) The Group faces market risks such as low market share, low on-time payment rates for customer accounts payable, and collection risks from delayed customer payments, which will be addressed by maintaining close ties with existing customers, developing new products, acquiring new customers, and strengthening market development to increase market share - The market risks faced by the Group refer to the risks of low product market share leading to weak bargaining power, low on-time payment rates for customer accounts payable affecting fund recovery, and collection risks arising from delayed customer payments[107](index=107&type=chunk) - Will actively and effectively maintain close ties with existing customers to secure orders for old products as much as possible, follow customer trends to develop new products for existing customers, develop new customers based on existing products, and strengthen market development to continuously increase market share[107](index=107&type=chunk) [Technology Risk](index=47&type=section&id=Technology%20Risk) The Group faces the risk of outdated product technology or inability to meet customer needs, which will be mitigated by strengthening demand research, timely responding to customer needs, executing and managing R&D projects according to plans, confirming key new product R&D plans, and increasing self-funded investment to enhance technical capabilities - The technology risks faced by the Group refer to the risk of outdated product technology or inability to meet customer needs[108](index=108&type=chunk) - Will strengthen demand research, timely respond to customer needs, execute and manage R&D projects according to R&D project plans; confirm key new product R&D plans annually based on business planning, increasing new product categories; and increase self-funded investment to steadily boost R&D expenditure[108](index=108&type=chunk) [Human Resources Risk](index=47&type=section&id=Human%20Resources%20Risk) The Group faces human resources risks including a portion of idle personnel and a weak R&D technical team, which will be addressed by controlling the increase in idle personnel, timely processing retirements, promoting re-employment, and formulating annual recruitment plans to fill personnel gaps - The human resources risks faced by the Group refer to the company having a portion of idle personnel, while the R&D technical team is weak, and R&D technical capabilities lag behind market expectations to some extent[109](index=109&type=chunk) - Will control the increase in idle personnel, timely process retirements for eligible idle personnel, actively promote re-employment for qualified individuals; and formulate annual recruitment plans to supplement missing personnel through campus recruitment and social recruitment channels[109](index=109&type=chunk) [Shareholders and Corporate Governance](index=48&type=section&id=Shareholders%20and%20Corporate%20Governance) This section details the Group's shareholding, equity structure changes, directors' and supervisors' shareholdings, public float, listed securities transactions, convertible securities, interim dividend policy, Audit Committee composition and responsibilities, compliance with corporate governance code, and post-reporting period events, confirming stable share capital, concentrated major shareholdings, no interim dividend recommendation, and compliance with governance codes [Shareholding and Changes in Equity Structure](index=48&type=section&id=Shareholding%20and%20Changes%20in%20Equity%20Structure) During the period, the company did not arrange any bonus issues, rights issues, capital increases, or new share offerings, maintaining a stable total share capital and equity structure of RMB 400 million, with domestic state-owned legal person shares accounting for 60% and H-shares for 40%, and major shareholders including Chengdu Siwei High-tech Industrial Park Co., Ltd. (34%) and Chengdu Siwei Electronics Co., Ltd. (26%) - The company did not arrange any bonus issues, rights issues, or capital increases, nor did it issue any new shares during the period, with no changes in the company's total share capital and equity structure[110](index=110&type=chunk) Shareholding Structure | Shareholder Type | Number of Shares | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | | Domestic State-owned Legal Person Shares | 240,000,000 | 60 | | Overseas Issued Shares (H-shares) | 160,000,000 | 40 | | **Total** | **400,000,000** | **100** | Major Shareholders | Major Shareholder | Number of Shares Held | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | | Chengdu Siwei High-tech Industrial Park Co., Ltd. | 136,000,000 | 34 | | Chengdu Siwei Electronics Co., Ltd. | 104,000,000 | 26 | | HKSCC Nominees Limited (H-shares) | 158,176,999 | 39.54 | [Shareholdings of Directors and Supervisors](index=49&type=section&id=Shareholdings%20of%20Directors%20and%20Supervisors) As of June 30, 2025, none of the company's directors, supervisors, or chief executive had any disclosable interests or short positions in the shares, underlying shares, and debentures of the company or its associated corporations - As of June 30, 2025, none of the company's directors, supervisors, or chief executive had any interests or short positions in the shares, underlying shares, and debentures of the company or its associated corporations that are required to be recorded in the register under Section 352 of the Securities and Futures Ordinance[115](index=115&type=chunk) [Sufficient Public Float](index=49&type=section&id=Sufficient%20Public%20Float) Based on publicly available information and the best knowledge of the Board, the company confirms that its public float was sufficient during the period and up to the date of this announcement - Based on publicly available information and to the best knowledge of the directors, the company confirms that its public float was sufficient during the period and up to the date of this announcement[116](index=116&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=50&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[118](index=118&type=chunk) [Convertible Securities, Share Options, Warrants or Related Rights](index=50&type=section&id=Convertible%20Securities%2C%20Share%20Options%2C%20Warrants%20or%20Related%20Rights) During the period, the company did not issue any convertible securities, share options, warrants, or related rights - The company did not issue any convertible securities, share options, warrants, or related rights during the period[119](index=119&type=chunk) [Interim Dividend](index=50&type=section&id=Interim%20Dividend) The Board recommends no interim dividend for the six months ended June 30, 2025 - The Board recommends no interim dividend for the six months ended June 30, 2025 (no interim dividend was declared for the six months ended June 30, 2024)[120](index=120&type=chunk) [Audit Committee](index=50&type=section&id=Audit%20Committee) The company's Audit Committee comprises Ms. Fu Wenjie (Chairperson), Mr. Kang Yiguo, and Mr. Li Shaorong, all independent non-executive directors, responsible for internal control, financial reporting, and reporting matters, and has reviewed the unaudited interim consolidated financial statements and interim results for the period, deeming them compliant with applicable accounting standards and legal requirements - The Audit Committee members are Ms. Fu Wenjie (Chairperson), Mr. Kang Yiguo, and Mr. Li Shaorong, all of whom are independent non-executive directors of the company[121](index=121&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim consolidated financial statements and interim results for the six months ended June 30, 2025, deeming them compliant with applicable accounting standards and legal requirements, with appropriate disclosures made[121](index=121&type=chunk) [Corporate Governance Code](index=50&type=section&id=Corporate%20Governance%20Code) The company believes that good corporate governance improves corporate performance and accountability and confirms its continuous compliance with the code provisions of the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules during the period from January 1, 2025, to June 30, 2025 - The Board believes that the company has continuously complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules during the period from January 1, 2025, to June 30, 2025[122](index=122&type=chunk) [Compliance with Model Code](index=51&type=section&id=Compliance%20with%20Model%20Code) The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors and supervisors in securities transactions and confirms that all directors and supervisors have fully complied with the code during the period - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for the company's directors and supervisors in securities transactions[123](index=123&type=chunk) - The Board is pleased to confirm that all directors and supervisors have confirmed their full compliance with the Model Code during the period[123](index=123&type=chunk) [Post-Reporting Period Events](index=51&type=section&id=Post-Reporting%20Period%20Events) After the reporting period, Tianjian Certified Public Accountants was appointed as the company's auditor for 2025 on August 12, 2025, with no other matters likely to significantly impact the company's operations and financial performance up to the date of this announcement - Tianjian Certified Public Accountants was appointed as the company's auditor for 2025 at the first extraordinary general meeting held on August 12, 2025[124](index=124&type=chunk) - Other than the above, no other matters that could significantly impact the company's operations and financial performance have occurred after June 30, 2025, and up to the date of this announcement, requiring disclosure[124](index=124&type=chunk) [Publication of Interim Results Announcement an

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 Meta Media Holdings Limited 超媒體控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：72） 截 至 二零二五 年六月三十日止六個月 中期業績公告 財務摘要 截 至 二零二五年 六月三十日 止六個月 截 至 二零二四年 六月三十日 止六個月 人民幣千元 人民幣千元 （未 經 審 核） （未 經 審 核） 收 益 168,949 160,616 期內虧損 (15,752) (13,985) 每 股 虧 損－基 本 及 攤 薄 人民幣(0.0362)元 人民幣(0.0346)元 董事會不建議就截至 二零二五 年 六 月 三 十 日 止 六 個 月 派 付 中 期 股 息（二 零 二 四 年：無）。 – 1 – 超 媒 體 控 股 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）欣 然 宣 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Jiangsu Innovative Ecological New Materials Limited 江蘇創新環保新材料有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2116） 截至二零二五年六月三十日止六個月中期業績公告 江 蘇 創 新 環 保 新 材 料 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）欣 然 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」、「我 們」或「我們的」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月（「報告期」）的 未 經 審 核 中 期 業 績（「中期業績」），連 同 二 零 二 四 年 同 期 的 比 較 數 字。中 期 業 績 已 由 本 公 司 董 事 會 及 審 核 委 員 會（「審核委員會」）審 閱 及 確 認。 – 1 – 綜合損益表 截至二零二五年六月三十日止六個月－未經審核 （以人民幣元列示） | ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company's financial performance for the first half of 2025 shows significant growth in revenue, gross profit, and net profit, alongside an improved net asset value per share Key Financial Data for H1 2025 (RMB Million): | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Revenue | 7,463 | 7,261 | | Gross Profit | 2,172 | 1,440 | | Gross Margin | 29.10% | 19.83% | | Profit Before Tax | 1,422 | 673 | | Profit for the Period | 1,057 | 395 | | Profit for the Period Attributable to Owners of the Company | 779 | 308 | | Earnings Per Share—Basic and Diluted (RMB) | 0.47 | 0.17 | Key Financial Position for H1 2025 (RMB Million): | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Equity | 18,617 | 17,472 | | Net Asset Value Per Share (RMB) | 11.23 | 10.00 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The condensed consolidated statement details the company's revenue, costs, and profits for the six months ended June 30, 2025, showing significant year-on-year growth in profitability Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, RMB Thousand): | Metric | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 7,463,394 | 7,261,012 | | Cost of Sales | (5,290,973) | (5,821,118) | | Gross Profit | 2,172,421 | 1,439,894 | | Other Income and Other Net Gains or Losses | 146,952 | 97,519 | | Distribution and Selling Expenses | (212,644) | (230,157) | | Administrative and Other Expenses | (326,574) | (344,365) | | Research and Development Costs | (369,226) | (321,439) | | Gain on Disposal of Partial Interest in an Associate | – | 139,049 | | Gain/(Loss) on Disposal of Subsidiaries | 7,435 | (100,216) | | Finance Costs | (1,562) | (2,159) | | Share of Results of Associates | 5,681 | (5,248) | | Profit Before Tax | 1,422,483 | 672,878 | | Income Tax Expense | (365,595) | (277,670) | | Profit for the Period | 1,056,888 | 395,208 | | Total Comprehensive Income for the Period | 1,151,185 | 382,768 | | Profit for the Period Attributable to Owners of the Company | 779,202 | 307,649 | | Profit for the Period Attributable to Non-controlling Interests | 277,686 | 87,559 | | Total Comprehensive Income for the Period Attributable to Owners of the Company | 869,148 | 295,209 | | Total Comprehensive Income for the Period Attributable to Non-controlling Interests | 282,037 | 87,559 | | Earnings Per Share—Basic and Diluted (RMB) | 0.47 | 0.17 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) The condensed consolidated statement presents the company's financial position as of June 30, 2025, detailing assets, liabilities, and equity, reflecting a stable and growing financial base Condensed Consolidated Statement of Financial Position (As at June 30, 2025, RMB Thousand): | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | **Non-current Assets** | | | | Property, Plant and Equipment | 11,980,153 | 12,279,823 | | Right-of-use Assets | 973,014 | 889,852 | | Deposits Paid for Acquisition of Property, Plant and Equipment | 236,188 | 217,378 | | Interests in Associates | 150,186 | 97,809 | | Intangible Assets | 15,741 | 18,769 | | Equity Instruments at Fair Value Through Other Comprehensive Income | 410,676 | 129,629 | | Deferred Tax Assets | 81,656 | 85,667 | | Goodwill | 440,107 | 440,767 | | **Total Non-current Assets** | **14,287,721** | **14,159,694** | | **Current Assets** | | | | Inventories | 1,428,350 | 1,429,752 | | Properties Held for Sale | 8,061 | 10,820 | | Trade and Other Receivables | 2,821,697 | 2,777,363 | | Pledged Bank Deposits | 43,320 | 88,745 | | Bank Balances and Cash | 3,540,515 | 2,470,496 | | **Total Current Assets** | **7,841,943** | **6,777,176** | | **Total Assets** | **22,129,664** | **20,936,870** | | **Current Liabilities** | | | | Trade and Other Payables | 2,533,151 | 2,822,668 | | Tax Liabilities | 191,916 | 71,934 | | Lease Liabilities | 7,266 | 5,138 | | Deferred Income | 27,775 | 39,938 | | Dividends Payable | 160,456 | – | | **Total Current Liabilities** | **2,920,564** | **2,939,678** | | **Net Current Assets** | **4,921,379** | **3,837,498** | | **Total Assets Less Current Liabilities** | **19,209,100** | **17,997,192** | | **Equity** | | | | Equity Attributable to Owners of the Company | | | | Share Capital | 163,506 | 163,506 | | Reserves | 12,812,392 | 11,943,554 | | **Equity Attributable to Owners of the Company** | **12,975,898** | **12,107,060** | | Non-controlling Interests | 5,641,475 | 5,364,777 | | **Total Equity** | **18,617,373** | **17,471,837** | | **Non-current Liabilities** | | | | Bank Borrowings | 35,822 | – | | Deferred Tax Liabilities | 219,378 | 198,809 | | Lease Liabilities | 27,468 | 21,304 | | Deferred Income | 309,059 | 305,242 | | **Total Non-current Liabilities** | **591,727** | **525,355** | | **Total Equity and Non-current Liabilities** | **19,209,100** | **17,997,192** | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential details and explanations supporting the condensed consolidated financial statements, covering accounting policies, segment information, and other financial disclosures [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and applicable HKEX Listing Rules disclosure requirements - The statements are prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules[8](index=8&type=chunk) [2. Significant Accounting Policies](index=5&type=section&id=2.%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value through other comprehensive income, and current accounting policies are consistent with the 2024 annual financial statements - The condensed consolidated financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value through other comprehensive income[9](index=9&type=chunk) - Current accounting policies are consistent with the 2024 annual financial statements, with no early adoption of un-effective standards[9](index=9&type=chunk)[10](index=10&type=chunk) - The application of new and revised International Financial Reporting Standards has no significant impact on the condensed consolidated financial statements[11](index=11&type=chunk) [Application of Amendments to International Financial Reporting Standards](index=5&type=section&id=Application%20of%20Amendments%20to%20International%20Financial%20Reporting%20Standards) The Group has applied all new and revised IFRS accounting standards effective from January 1, 2025, or thereafter, with no significant impact on the condensed consolidated financial statements - The Group has applied all new and revised International Financial Reporting Standards effective from January 1, 2025, or thereafter, but their application has no significant impact on the condensed consolidated financial statements[11](index=11&type=chunk) [Standards Issued But Not Yet Effective](index=5&type=section&id=Standards%20Issued%20But%20Not%20Yet%20Effective) The Group has not yet adopted new IFRS accounting standards issued but not yet effective and is currently assessing their potential impact, which cannot be determined as significant at this time - The Group has not yet adopted new International Financial Reporting Standards issued but not yet effective and is assessing their potential impact, which cannot be determined as significant at this time[12](index=12&type=chunk) [3. Segment Information](index=6&type=section&id=3.%20Segment%20Information) The Group's business is segmented by product type into fluoropolymer materials, organosilicon, refrigerants, dichloromethane and caustic soda, and other businesses, with segment results forming the basis for resource allocation and performance evaluation - The Group's business is segmented by product type into fluoropolymer materials, organosilicon, refrigerants, dichloromethane and caustic soda, and other businesses[13](index=13&type=chunk)[15](index=15&type=chunk) Segment Revenue and Results (For the six months ended June 30, RMB Thousand): | Segment | 2025 Revenue | 2025 Results | 2024 Revenue | 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Fluoropolymer Materials | 1,939,795 | 259,195 | 2,032,921 | 303,391 | | Organosilicon | 2,319,120 | 8,750 | 2,759,094 | 53,681 | | Refrigerants | 3,499,673 | 1,029,831 | 2,812,654 | 332,455 | | Dichloromethane and Caustic Soda | 649,636 | 213,693 | 527,740 | 132,756 | | Other Businesses | 981,772 | (87,219) | 1,025,643 | (171,232) | | Eliminations | (1,926,602) | – | (1,897,040) | – | | **Total** | **7,463,394** | **1,424,250** | **7,261,012** | **651,051** | - Segment results refer to the performance of each segment before unallocated expenses, central administrative costs, directors' emoluments, share of results of associates, gain/(loss) on disposal of subsidiaries, gain on disposal of partial interest in an associate, and finance costs[16](index=16&type=chunk) [Segment Revenue and Results](index=6&type=section&id=Segment%20Revenue%20and%20Results) The refrigerants segment experienced significant growth in external sales and performance in the first half of 2025, while fluoropolymer materials and organosilicon segments saw a decline Segment External Sales (For the six months ended June 30, RMB Thousand): | Segment | 2025 External Sales | 2024 External Sales | | :--- | :--- | :--- | | Fluoropolymer Materials | 1,939,795 | 2,032,921 | | Organosilicon | 2,319,120 | 2,759,094 | | Refrigerants | 2,292,067 | 1,551,984 | | Dichloromethane and Caustic Soda | 636,444 | 515,594 | | Other Businesses | 275,968 | 401,419 | | **Total** | **7,463,394** | **7,261,012** | - The refrigerants segment's external sales and performance significantly increased in the first half of 2025, while the fluoropolymer materials and organosilicon segments experienced a decrease[14](index=14&type=chunk)[16](index=16&type=chunk) [4. Other Income and Other Gains or Losses](index=8&type=section&id=4.%20Other%20Income%20and%20Other%20Gains%20or%20Losses) Total other income and other gains or losses for the period amounted to RMB 146,952,000, primarily driven by a substantial increase in government grants used for R&D and production equipment acquisition Other Income and Other Gains or Losses (For the six months ended June 30, RMB Thousand): | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Government Grants | 93,974 | 36,007 | | Interest Income from Bank Deposits | 13,629 | 14,598 | | Interest Income from Associates | 731 | 954 | | Miscellaneous Income | 30,749 | 26,357 | | Net Exchange Differences | 7,869 | 19,603 | | **Total** | **146,952** | **97,519** | - Government grants significantly increased, with **RMB 48,483,000** recognized as current expenses and **RMB 45,491,000** recognized as deferred income for the acquisition of production equipment[18](index=18&type=chunk) [5. Gain on Disposal of Partial Interest in an Associate](index=9&type=section&id=5.%20Gain%20on%20Disposal%20of%20Partial%20Interest%20in%20an%20Associate) The Group completed the disposal of a 2.32% interest in its associate, Dongyue Future Hydrogen Energy, in March 2024, recognizing a gain of RMB 139,049,000 - Dongyue Fluorosilicon Technology agreed in October 2023 to dispose of a **2.32% interest** in its associate, Dongyue Future Hydrogen Energy, to Xinhua Lian Holdings for a consideration of **RMB 165,000,000**[19](index=19&type=chunk) - The transaction was completed in March 2024, recognizing a disposal gain of **RMB 139,049,000**[19](index=19&type=chunk) [6. Income Tax Expense](index=9&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense for the period was RMB 365,595,000, primarily comprising PRC Enterprise Income Tax and Land Appreciation Tax, with certain high-tech enterprises enjoying a preferential tax rate Income Tax Expense (For the six months ended June 30, RMB Thousand): | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Current Tax - PRC Enterprise Income Tax (Current Year) | 313,057 | 131,962 | | Current Tax - PRC Enterprise Income Tax (Under-provision in Prior Years) | 27,938 | 5,808 | | Current Tax - Land Appreciation Tax | 20 | 105,413 | | **Total Current Tax** | **341,015** | **243,183** | | Deferred Tax - Withholding Tax on Distributable Profits of PRC Subsidiaries | 35,000 | 14,000 | | Deferred Tax - Others | (10,420) | 20,487 | | **Total Deferred Tax** | **24,580** | **34,487** | | **Total Income Tax Expense** | **365,595** | **277,670** | - PRC subsidiaries are subject to a **25%** Enterprise Income Tax rate, with certain high-tech enterprises enjoying a preferential tax rate of **15%**[20](index=20&type=chunk) - Deferred tax liabilities of **RMB 35,000,000** (2024: **RMB 14,000,000**) have been recognized in profit or loss, primarily for withholding tax on dividends distributed by PRC entities[22](index=22&type=chunk) [7. Profit for the Period](index=10&type=section&id=7.%20Profit%20for%20the%20Period) Profit for the period reflects the specific impacts of operating activities, including depreciation of property, plant and equipment, right-of-use assets, government grants, and losses on disposal of property, plant and equipment Items Deducted From/(Credited To) Profit for the Period (For the six months ended June 30, RMB Thousand): | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Amortisation of Intangible Assets | 1,890 | 2,766 | | Depreciation of Property, Plant and Equipment | 661,228 | 577,621 | | Depreciation of Right-of-use Assets | 17,582 | 16,059 | | Government Grants | (93,974) | (36,007) | | Loss on Disposal of Property, Plant and Equipment | 61,284 | 20,544 | | Impairment of Property, Plant and Equipment | 85,571 | – | | Impairment of Intangible Assets | 2,273 | – | | Impairment of Trade and Other Receivables | 12,108 | 52,504 | | Write-down of Inventories | 12,144 | 17,388 | | Equity-settled Share-based Payments | 17,210 | – | | Impairment of Properties Held for Sale | – | 90,976 | [8. Dividends](index=10&type=section&id=8.%20Dividends) For the six months ended June 30, 2025, a final dividend of HKD 0.10 per share for 2024 was declared and paid, totaling RMB 160,456,029 - For the six months ended June 30, 2025, a final dividend of **HKD 0.10** per share for 2024 was declared and paid, totaling **RMB 160,456,029**[25](index=25&type=chunk) - In the same period last year (H1 2024), a final dividend of **HKD 0.10** per share for 2023 was declared and paid, totaling **RMB 155,608,768**[25](index=25&type=chunk) [9. Earnings Per Share](index=11&type=section&id=9.%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners of the Company significantly increased to RMB 0.47, up from RMB 0.17 in the prior year, primarily due to a reduction in the weighted average number of ordinary shares Basic Earnings Per Share (For the six months ended June 30): | Metric | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (RMB) | 779,202,000 | 307,649,000 | | Weighted Average Number of Ordinary Shares for Basic Earnings Per Share | 1,657,350,167 | 1,839,206,000 | | Basic Earnings Per Share (RMB Per Share) | 0.47 | 0.17 | Diluted Earnings Per Share (For the six months ended June 30): | Metric | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit for the Period for Diluted Earnings Per Share (RMB) | 779,135,000 | 307,649,000 | | Weighted Average Number of Ordinary Shares for Diluted Earnings Per Share | 1,657,350,167 | 1,839,206,000 | | Diluted Earnings Per Share (RMB Per Share) | 0.47 | 0.17 | - In the first half of 2024, the Company repurchased and cancelled **520,978,000** shares, leading to a decrease in the weighted average number of ordinary shares[29](index=29&type=chunk) [Basic Earnings Per Share](index=11&type=section&id=Basic%20Earnings%20Per%20Share) Basic earnings per share attributable to owners of the Company significantly increased to RMB 0.47, up from RMB 0.17 in the prior year - Basic earnings per share attributable to owners of the Company was **RMB 0.47**, a significant increase from **RMB 0.17** in the prior year[27](index=27&type=chunk) [Diluted Earnings Per Share](index=11&type=section&id=Diluted%20Earnings%20Per%20Share) Diluted earnings per share attributable to owners of the Company was RMB 0.47, consistent with basic earnings per share, as there were no share options to purchase ordinary shares during the period - Diluted earnings per share attributable to owners of the Company was **RMB 0.47**, consistent with basic earnings per share, as there were no share options to purchase ordinary shares during the period[28](index=28&type=chunk) [10. Trade and Other Receivables](index=12&type=section&id=10.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables amounted to RMB 2,821,697,000, with trade receivables of RMB 2,293,320,000, typically having credit terms of 30 to 90 days Trade and Other Receivables (As at June 30, 2025, RMB Thousand): | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade Receivables | 2,293,320 | 1,962,821 | | Less: Provision for Doubtful Debts | (13,578) | (12,876) | | Prepayments for Raw Materials | 75,756 | 28,920 | | Recoverable Taxes | 108,796 | 165,093 | | Unwithdrawn Deposit Balances Receivable | 123,138 | 309,888 | | Loans | – | 45,100 | | Deposits and Other Receivables | 234,265 | 278,417 | | **Total** | **2,821,697** | **2,777,363** | Ageing Analysis of Trade Receivables (As at June 30, 2025, RMB Thousand): | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 90 days | 1,053,059 | 769,139 | | 91 to 180 days | 965,767 | 1,062,942 | | 181 to 365 days | 260,916 | 117,864 | | Over 1 year | 13,578 | 12,876 | | **Total** | **2,293,320** | **1,962,821** | - Dongyue Fluoropolymer Materials acquired a **5.96%** equity interest in Hualian Porcelain Industry through legal proceedings to offset part of the unrefunded deposit of **RMB 186,750,000**[32](index=32&type=chunk) [11. Trade and Other Payables](index=13&type=section&id=11.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to RMB 2,533,151,000, a decrease from the end of 2024, with the majority of trade payables due within 30 days Trade and Other Payables (As at June 30, 2025, RMB Thousand): | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade Payables | 1,597,971 | 1,988,169 | | Contract Liabilities—Sales of Chemical Products | 176,824 | 137,585 | | Contract Liabilities—Sales of Properties | 14,223 | 17,334 | | Accrued Staff Costs | 180,547 | 216,294 | | Payables for Property, Plant and Equipment | 382,209 | 292,045 | | Other Taxes Payable | 65,149 | 48,720 | | Construction Costs Payable for Properties Held for Sale | – | 4,729 | | Other Payables and Accruals | 116,228 | 117,792 | | **Total** | **2,533,151** | **2,822,668** | Ageing Analysis of Trade Payables (As at June 30, 2025, RMB Thousand): | Ageing | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 30 days | 751,707 | 671,760 | | 31 to 90 days | 372,275 | 579,692 | | 91 to 180 days | 125,421 | 107,374 | | 181 to 365 days | 191,766 | 475,940 | | 1 to 2 years | 99,842 | 119,004 | | Over 2 years | 56,960 | 34,399 | | **Total** | **1,597,971** | **1,988,169** | - Trade payables include bills payable of **RMB 278,629,000** (December 31, 2024: **RMB 53,691,000**), secured by pledged bank deposits[33](index=33&type=chunk) [12. Disposal of Subsidiaries](index=14&type=section&id=12.%20Disposal%20of%20Subsidiaries) The Group completed three subsidiary disposals during the reporting period, including Zhangjiajie Xinyie, Shandong Boda Real Estate, and Huantai Kehui, resulting in a loss of RMB 100,216,000 from Zhangjiajie Xinyie and a gain of RMB 7,435,000 from Huantai Kehui - The Group disposed of a **52%** interest in Zhangjiajie Xinyie Real Estate Development Co., Ltd. on May 31, 2024, resulting in a loss of **RMB 100,216,000**[35](index=35&type=chunk)[36](index=36&type=chunk) - The Group disposed of a **100%** interest in Shandong Boda Real Estate Development Co., Ltd. on June 16, 2024, with no gain or loss recognized[37](index=37&type=chunk)[38](index=38&type=chunk) - The Group completed the disposal of its entire interest in Huantai Kehui Environmental New Building Materials Co., Ltd. in January 2025, resulting in a gain of **RMB 7,435,000**[39](index=39&type=chunk)[40](index=40&type=chunk) [Disposal of Zhangjiajie Xinyie Real Estate Development Co., Ltd.](index=14&type=section&id=Disposal%20of%20Zhangjiajie%20Xinyie%20Real%20Estate%20Development%20Co.,%20Ltd.) Federal Real Estate disposed of a 52% interest in Zhangjiajie Xinyie on May 31, 2024, for RMB 26,000,000, resulting in a loss of RMB 100,216,000 - Federal Real Estate disposed of a **52%** interest in Zhangjiajie Xinyie on May 31, 2024, for a total consideration of **RMB 26,000,000**, resulting in a loss of **RMB 100,216,000**[35](index=35&type=chunk)[36](index=36&type=chunk) [Disposal of Shandong Boda Real Estate Development Co., Ltd.](index=15&type=section&id=Disposal%20of%20Shandong%20Boda%20Real%20Estate%20Development%20Co.,%20Ltd.) Federal Real Estate disposed of a 100% interest in Shandong Boda Real Estate Development Co., Ltd. on June 16, 2024, for zero consideration, with no gain or loss recognized - Federal Real Estate disposed of a **100%** interest in Shandong Boda Real Estate Development Co., Ltd. on June 16, 2024, for a total consideration of zero, with no gain or loss recognized[37](index=37&type=chunk)[38](index=38&type=chunk) [Disposal of Huantai Kehui Environmental New Building Materials Co., Ltd.](index=16&type=section&id=Disposal%20of%20Huantai%20Kehui%20Environmental%20New%20Building%20Materials%20Co.,%20Ltd.) Dongyue Fluorosilicon agreed to dispose of its entire interest in Huantai Kehui in December 2024, completing the transaction in January 2025 for RMB 28,000,000, resulting in a gain of RMB 7,435,000 - Dongyue Fluorosilicon agreed in December 2024 to dispose of its entire interest in Huantai Kehui, completing the transaction in January 2025 for a total consideration of **RMB 28,000,000**, resulting in a gain of **RMB 7,435,000**[39](index=39&type=chunk)[40](index=40&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's operational performance, strategic initiatives, and future outlook, highlighting key achievements and challenges in the reporting period [Performance Review](index=17&type=section&id=Performance%20Review) In the first half of 2025, the Group achieved significant operating performance growth, driven by its advantages in the refrigerants industry and quota factors, while maintaining production stability and increasing R&D investment - In the first half of 2025, the Group capitalized on the significant price increase in the refrigerants business segment due to quota factors, achieving substantial growth in operating performance[41](index=41&type=chunk)[42](index=42&type=chunk) - Profit attributable to owners of the Company increased by **153.28%** year-on-year[42](index=42&type=chunk) - The Group strictly implemented safety and environmental protection plans, ensuring production stability with no major accidents affecting production and **100%** compliance with various emissions standards[43](index=43&type=chunk) [I. Significant Growth in Operating Performance](index=17&type=section&id=I.%20Significant%20Growth%20in%20Operating%20Performance) The Group's refrigerants business segment experienced significant price increases due to quota factors, becoming a key driver for the substantial growth in operating performance and profit attributable to owners of the Company - Due to quota factors, prices of several products in the Group's refrigerants business segment significantly increased, becoming a key support for performance[42](index=42&type=chunk) - Profit attributable to owners of the Company increased by **153.28%** year-on-year[42](index=42&type=chunk) [II. Ensuring Production Stability](index=17&type=section&id=II.%20Ensuring%20Production%20Stability) The Group strictly implemented safety and environmental protection plans, ensuring production stability with no major accidents and 100% compliance with emissions standards, while improving production efficiency and reducing resource consumption - The Group strictly implemented safety and environmental protection plans, ensuring production stability with no major accidents affecting production, and **100%** compliance with various emissions standards[43](index=43&type=chunk) - Indicators such as raw material consumption, comprehensive energy consumption, hazardous waste per ton of product, and by-product per ton of product all decreased to varying degrees, improving production plant operating efficiency[43](index=43&type=chunk) [III. Continuous Innovation through Scientific Research and Development](index=18&type=section&id=III.%20Continuous%20Innovation%20through%20Scientific%20Research%20and%20Development) The Group's R&D costs increased by 14.87% to RMB 369,226,000, representing 4.95% of total revenue, with a strong R&D team and significant achievements in patent acquisition and standard setting - The Group's R&D costs were approximately **RMB 369,226,000**, a year-on-year increase of **14.87%**, accounting for **4.95%** of total revenue[44](index=44&type=chunk) - The R&D team comprised **679** people, with doctors and masters accounting for **48.90%**; **25** patents were obtained, bringing the total number of patents to **595** at period-end[44](index=44&type=chunk) - **Two** national standards and **one** group standard were released, promoting industry development[44](index=44&type=chunk) [IV. Significant Results in Cost Reduction and Efficiency Improvement](index=18&type=section&id=IV.%20Significant%20Results%20in%20Cost%20Reduction%20and%20Efficiency%20Improvement) The Group achieved significant cost reduction and efficiency improvement, with distribution and selling expenses decreasing by 7.61% and administrative expenses by 5.17% year-on-year, enhancing market competitiveness and driving performance growth - The Group's distribution and selling expenses decreased by **7.61%** year-on-year, and administrative expenses decreased by **5.17%** year-on-year[45](index=45&type=chunk) - Excellent cost and expense control enhanced market competitiveness and drove performance growth[45](index=45&type=chunk) [Outlook](index=19&type=section&id=Outlook) In the second half of the year, the Group will adopt a cautious operating strategy, focusing on market share expansion, internal management for cost reduction, re-evaluating R&D directions, and enhancing production efficiency to maintain competitive advantages - The Group will adopt a market-oriented approach, covering target customers in segmented markets, and enhancing market responsiveness[46](index=46&type=chunk) - The Group will continue to focus on cost reduction and efficiency improvement, strengthening strategic cooperation with excellent suppliers, and reducing unnecessary outsourcing, redundant processes, and material waste[47](index=47&type=chunk) - The R&D department will become a profit growth and re-creation center, allocating R&D resources to market-oriented directions and increasing investment in technological transformation to revitalize older products[48](index=48&type=chunk) - By improving systematic, standardized, and refined management systems, the Group will prevent safety and environmental risks and comprehensively enhance production efficiency through new product development, new technology application, and energy conservation[49](index=49&type=chunk) [1. Market-Centric Approach to Increase Market Share](index=19&type=section&id=1.%20Market-Centric%20Approach%20to%20Increase%20Market%20Share) In the second half, the Group will adopt a market-oriented approach to cover segmented market target customers, enhance market responsiveness, and balance domestic and international sales - In the second half, the Group will be market-oriented, covering target customers in segmented markets, and enhancing market responsiveness[46](index=46&type=chunk) - Market services will transform into a "technology + sales" composite team, building a "technology-sales-customer" triangular closed-loop operating model[46](index=46&type=chunk) - Balancing domestic and international markets, both internal and external sales will drive overall sales[46](index=46&type=chunk) [2. Strengthening Internal Capabilities to Drive Group Performance Growth](index=19&type=section&id=2.%20Strengthening%20Internal%20Capabilities%20to%20Drive%20Group%20Performance%20Growth) The Group will continue to prioritize cost reduction and efficiency improvement, strengthening strategic cooperation with suppliers and minimizing resource waste to drive performance growth - The Group will continue to adhere to cost reduction and efficiency improvement, further controlling costs and expenses[47](index=47&type=chunk) - Strengthening strategic cooperation with excellent suppliers will reduce unnecessary outsourcing, redundant processes, and material waste[47](index=47&type=chunk) [3. Re-evaluating R&D Efforts and Concentrating Resources on Key Research](index=19&type=section&id=3.%20Re-evaluating%20R%26D%20Efforts%20and%20Concentrating%20Resources%20on%20Key%20Research) The R&D department will be re-evaluated to become a profit growth center, with resources concentrated on market-oriented directions and increased investment in technological transformation to revitalize existing products - The R&D department will become a profit growth and re-creation center, with R&D resources allocated to more market-oriented directions[48](index=48&type=chunk) - Investment in R&D resources for technological transformation will increase, revitalizing the competitiveness of older products through technological iteration[48](index=48&type=chunk) [4. Enhancing Production Efficiency to Maintain Supply Chain Competitive Advantage](index=20&type=section&id=4.%20Enhancing%20Production%20Efficiency%20to%20Maintain%20Supply%20Chain%20Competitive%20Advantage) The Group aims to maintain its supply chain and production scale competitive advantages by enhancing production efficiency, refining management systems, and implementing new product development and energy-saving initiatives - The Group will continue to maintain its supply chain and production scale competitive advantages by enhancing production efficiency[49](index=49&type=chunk) - Further improving systematic, standardized, and refined management systems will prevent safety and environmental risks[49](index=49&type=chunk) - Overall production efficiency will be enhanced through new product development, new technology application, energy conservation and emission reduction, improved comprehensive utilization, and quality and efficiency improvements[49](index=49&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) This section provides a detailed analysis of the Group's financial performance and position, including revenue, profitability, segment results, and liquidity, for the reporting period [Performance Summary](index=20&type=section&id=Performance%20Summary) For the six months ended June 30, 2025, the Group's revenue increased by 2.79% to RMB 7,463,394,000, with a significant improvement in gross margin to 29.11%, and substantial growth in profit before tax and net profit - Revenue was approximately **RMB 7,463,394,000**, a year-on-year increase of **2.79%** (H1 2024: **RMB 7,261,012,000**)[51](index=51&type=chunk) - Gross margin increased to **29.11%** (H1 2024: **19.83%**)[51](index=51&type=chunk) - Profit before tax was approximately **RMB 1,422,483,000** (H1 2024: **RMB 672,878,000**), and net profit was approximately **RMB 1,056,888,000** (H1 2024: **RMB 395,208,000**)[51](index=51&type=chunk) [Segment Revenue and Operating Results](index=21&type=section&id=Segment%20Revenue%20and%20Operating%20Results) The Group's segment revenue and performance varied, with the refrigerants segment experiencing significant growth due to quota factors, while fluoropolymer materials and organosilicon segments faced market demand weakness and competitive pressures Segment Revenue and Performance Comparison (For the six months ended June 30, RMB Thousand): | Reporting and Operating Segment | 2025 Revenue | 2025 Results | 2025 Segment Profit Margin | 2024 Revenue | 2024 Results | 2024 Segment Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Fluoropolymer Materials | 1,939,795 | 259,195 | 13.36% | 2,032,921 | 303,391 | 14.92% | | Organosilicon | 2,319,120 | 8,750 | 0.38% | 2,759,094 | 53,681 | 1.95% | | Refrigerants | 2,292,067 | 1,029,831 | 44.93% | 1,551,984 | 332,455 | 21.42% | | Dichloromethane and Caustic Soda | 636,444 | 213,693 | 33.58% | 515,594 | 132,756 | 25.75% | | Others | 275,968 | (87,219) | (31.60%) | 401,419 | (171,232) | (42.66%) | | **Total** | **7,463,394** | **1,424,250** | **19.08%** | **7,261,012** | **651,051** | **8.97%** | - The refrigerants segment's revenue increased by **47.69%** year-on-year, and its performance increased by **209.77%** year-on-year, primarily due to price increases in products like R32 and R410a[53](index=53&type=chunk)[58](index=58&type=chunk) - The fluoropolymer materials and organosilicon segments experienced declines in both revenue and performance, mainly due to weak market demand and intense competition[53](index=53&type=chunk)[55](index=55&type=chunk)[60](index=60&type=chunk) [Revenue and Operating Results Analysis](index=21&type=section&id=Revenue%20and%20Operating%20Results%20Analysis) This period saw diversified performance across business segments, with strong growth in refrigerants due to quota restrictions, while fluoropolymer materials and organosilicon experienced declines from supply-demand imbalance, and dichloromethane and caustic soda saw a recovery - The fluoropolymer materials segment faced weak market demand, intense supply competition, and lower product prices, yet maintained a certain profit level[56](index=56&type=chunk) - Significant price increases in key refrigerants products like R32 and R410a, linked to quota restrictions, were the primary drivers of performance growth for the refrigerants segment[58](index=58&type=chunk) - The organosilicon segment's external sales revenue and segment performance decreased due to severe market supply-demand imbalance and product price declines, influenced by concentrated new capacity releases, weak downstream demand, and the international trade environment[60](index=60&type=chunk) - The dichloromethane and caustic soda segment's product prices slightly recovered, leading to an increase in its segment performance[62](index=62&type=chunk) [Fluoropolymer Materials](index=21&type=section&id=Fluoropolymer%20Materials) External sales of fluoropolymer materials decreased by 4.58% to RMB 1,939,795,000, with segment profit declining by 14.57% to RMB 259,195,000, due to weak market demand and intense competition - External sales were approximately **RMB 1,939,795,000**, a year-on-year decrease of **4.58%**; segment profit was **RMB 259,195,000**, a year-on-year decrease of **14.57%**[55](index=55&type=chunk) - Market demand was weak, supply competition was intense, and product prices were low, but the Group maintained a competitive advantage through product quality, customer recognition, and lower costs[56](index=56&type=chunk) - The Group utilizes R22 to produce TFE, which is then used to produce fluoropolymer materials such as PTFE and HFP[57](index=57&type=chunk) [Refrigerants](index=22&type=section&id=Refrigerants) External sales of refrigerants increased by 47.69% to RMB 2,292,067,000, with segment profit surging by 209.77% to RMB 1,029,831,000, primarily driven by significant price increases in key products due to quota restrictions - External sales were **RMB 2,292,067,000**, a year-on-year increase of **47.69%**; segment profit was **RMB 1,029,831,000**, a year-on-year increase of **209.77%**[58](index=58&type=chunk) - Prices of major products such as R32 and R410a significantly increased, primarily related to quota restrictions[58](index=58&type=chunk) - The Group has the highest R22 production capacity globally, and R22 is a key refrigerant and primary raw material for fluoropolymer materials (e.g., PTFE, HFP) and R125[59](index=59&type=chunk) [Organosilicon](index=23&type=section&id=Organosilicon) External sales of organosilicon decreased by 15.95% to RMB 2,319,120,000, with segment profit declining by 83.70% to RMB 8,750,000, due to severe market supply-demand imbalance and product price declines - External sales were **RMB 2,319,120,000**, a year-on-year decrease of **15.95%**; segment profit was **RMB 8,750,000**, a year-on-year decrease of **83.70%**[60](index=60&type=chunk) - The market experienced severe supply-demand imbalance and product price declines due to concentrated new capacity releases, weak downstream demand, and the international trade environment[60](index=60&type=chunk) - Major products include DMC, 107 silicone rubber, raw rubber, and compounded rubber, widely used in military, aerospace, automotive, electronics, and construction industries[61](index=61&type=chunk) [Dichloromethane and Caustic Soda](index=24&type=section&id=Dichloromethane%20and%20Caustic%20Soda) External sales of dichloromethane and caustic soda increased by 23.44% to RMB 636,444,000, with segment profit growing by 60.97% to RMB 213,693,000, driven by a slight recovery in product prices - External sales were **RMB 636,444,000**, a year-on-year increase of **23.44%**; segment profit was **RMB 213,693,000**, a year-on-year increase of **60.97%**[62](index=62&type=chunk) - Product prices slightly recovered, leading to an increase in this segment's performance[62](index=62&type=chunk) - Major products are dichloromethane and caustic soda, essential chemicals for the production of refrigerants and organosilicon products[63](index=63&type=chunk) [Others](index=24&type=section&id=Others) External sales in the "Others" segment decreased by 31.25% to RMB 275,968,000, with the segment loss narrowing to RMB 87,219,000 - External sales were **RMB 275,968,000**, a year-on-year decrease of **31.25%**; segment loss was **RMB 87,219,000**, a year-on-year narrowing of loss[64](index=64&type=chunk) - This segment includes the production and sale of other by-products from the Group's operating segments, such as ammonium bifluoride, hydrofluoric acid, and bromine[64](index=64&type=chunk) [Distribution and Selling Expenses](index=24&type=section&id=Distribution%20and%20Selling%20Expenses) Distribution and selling expenses decreased by 7.61% year-on-year to RMB 212,644,000, primarily due to lower freight unit prices and reduced transportation and miscellaneous expenses - Distribution and selling expenses decreased by **7.61%** from **RMB 230,157,000** in the prior year to **RMB 212,644,000**[65](index=65&type=chunk) - The decrease was primarily due to lower freight unit prices and reduced transportation and miscellaneous expenses during the period[65](index=65&type=chunk) [Administrative and Other Expenses](index=25&type=section&id=Administrative%20and%20Other%20Expenses) Administrative expenses decreased by 5.17% year-on-year to RMB 326,574,000, mainly attributable to a reduced impact from inventory impairment in the real estate business - Administrative expenses decreased by **5.17%** from **RMB 344,365,000** in the prior year to **RMB 326,574,000**[66](index=66&type=chunk) - The decrease was primarily due to a reduced impact from inventory impairment in the real estate business compared to the prior year[66](index=66&type=chunk) [Finance Costs](index=25&type=section&id=Finance%20Costs) Finance costs decreased by 27.65% year-on-year to RMB 1,562,000, primarily due to a reduction in bill discount interest expenses - Finance costs decreased by **27.65%** from **RMB 2,159,000** in the prior year to **RMB 1,562,000**[67](index=67&type=chunk) - The decrease was primarily due to reduced bill discount interest expenses[67](index=67&type=chunk) [Capital Expenditure](index=25&type=section&id=Capital%20Expenditure) For the six months ended June 30, 2025, the Group's capital expenditure was approximately RMB 688,779,000, a significant increase from the prior year, primarily for new project construction, land, and equipment - Capital expenditure was approximately **RMB 688,779,000** (H1 2024: **RMB 443,503,000**)[68](index=68&type=chunk) - It was primarily used for new project construction, land, and equipment expenditures[68](index=68&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains a robust financial position with increased total equity and bank balances, significantly improved net cash inflow from operating activities, and a healthy current ratio, indicating ample resources for debt repayment and operations - Total equity reached **RMB 18,617,373,000**, an increase of **6.56%** compared to December 31, 2024[69](index=69&type=chunk) - Bank balances and cash amounted to **RMB 3,540,515,000** (December 31, 2024: **RMB 2,470,496,000**)[69](index=69&type=chunk) - Net cash inflow from operating activities totaled **RMB 1,505,486,000** (H1 2024: **RMB 409,516,000**)[69](index=69&type=chunk) - The current ratio was **2.69** (December 31, 2024: **2.31**), indicating good liquidity[69](index=69&type=chunk) [Share Capital Structure](index=26&type=section&id=Share%20Capital%20Structure) As of June 30, 2025, the Company had 1,732,711,637 shares in issue, with total borrowings of RMB 35,822,000 and a negative gearing ratio, indicating a net cash position - The number of shares in issue was **1,732,711,637**[71](index=71&type=chunk) - Total borrowings amounted to **RMB 35,822,000** (December 31, 2024: nil)[71](index=71&type=chunk) - The gearing ratio was **–18.82%** (2024: **–14.14%**), indicating the Group was in a net cash positive position[71](index=71&type=chunk) [Pledged Assets](index=26&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group pledged bank deposits of RMB 43,320,000 as security for bills payable and regulatory deposits for pre-sold properties - As of June 30, 2025, the Group pledged bank deposits of **RMB 43,320,000** (December 31, 2024: **RMB 88,745,000**) as security for bills payable and regulatory deposits for pre-sold properties[73](index=73&type=chunk) - Bank deposits related to regulatory deposits for pre-sold properties amounted to **RMB 471,000**[73](index=73&type=chunk) [Exchange Rate Fluctuation Risk and Related Hedging Activities](index=27&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Related%20Hedging%20Activities) The Group's functional currency is RMB, but it engages in foreign currency transactions, primarily in USD, and typically converts foreign currency to RMB upon receipt to mitigate exchange rate risk - The Group's functional currency is RMB, but overseas transactions involve foreign currencies, primarily USD[75](index=75&type=chunk) - To mitigate foreign currency risk, the Group typically converts foreign currency to RMB upon receipt of payments[75](index=75&type=chunk) [Employees](index=27&type=section&id=Employees) As of June 30, 2025, the Group employed 6,050 staff, implementing performance-based remuneration and providing competitive benefits such as medical insurance and pension schemes - As of June 30, 2025, the Group employed **6,050** staff (December 31, 2024: **6,922** staff)[76](index=76&type=chunk) - The Group implements a remuneration policy and bonuses based on performance and employee contributions, and provides benefits such as medical insurance and pension schemes to remain competitive[76](index=76&type=chunk) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors did not declare an interim dividend for the six months ended June 30, 2025 (H1 2024: nil)[77](index=77&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Except for disclosures related to the employee share option scheme, 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 - Except for disclosures related to the employee share option scheme, 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[78](index=78&type=chunk) [Standard Code for Securities Transactions by Directors](index=27&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix 10 of the HKEX Listing Rules, and all directors confirmed full compliance during the period - The Company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix 10 of the Hong Kong Stock Exchange Listing Rules[79](index=79&type=chunk) - All directors confirmed full compliance with the relevant provisions of the Standard Code during the period[79](index=79&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising Mr. Ding Lianghui (Chairman), Mr. Yang Xiaoyong, and Mr. Ma Zhizhong, all independent non-executive directors, reviewed the Group's interim results for the six months ended June 30, 2025 - The Audit Committee comprises Mr. Ding Lianghui (Chairman), Mr. Yang Xiaoyong, and Mr. Ma Zhizhong, all independent non-executive directors[80](index=80&type=chunk) - The Committee reviewed the Group's interim results for the six months ended June 30, 2025, on August 20, 2025[80](index=80&type=chunk) [Remuneration Committee](index=28&type=section&id=Remuneration%20Committee) The Company's Remuneration Committee is responsible for considering the remuneration and related matters of directors and senior management, with members including independent non-executive directors Mr. Yang Xiaoyong (Chairman) and Mr. Ding Lianghui, and executive director Mr. Zhang Jianhong - The Remuneration Committee is responsible for considering the remuneration and other related matters of the Company's directors and senior management[81](index=81&type=chunk) - Members include independent non-executive directors Mr. Yang Xiaoyong (Chairman) and Mr. Ding Lianghui, and executive director Mr. Zhang Jianhong[81](index=81&type=chunk) [Nomination Committee](index=28&type=section&id=Nomination%20Committee) The Company's Nomination Committee is responsible for the appointment of new directors and related matters, chaired by Mr. Zhang Jianhong, with Mr. Ding Lianghui and Mr. Yang Xiaoyong as members - The Nomination Committee is responsible for the appointment of new directors and other related matters of the Company[82](index=82&type=chunk) - Mr. Zhang Jianhong was appointed as Chairman of the Nomination Committee, with Mr. Ding Lianghui and Mr. Yang Xiaoyong appointed as members[82](index=82&type=chunk) [Corporate Governance Committee](index=28&type=section&id=Corporate%20Governance%20Committee) The Company's Corporate Governance Committee is responsible for corporate governance and related matters, chaired by Mr. Zhang Jianhong, with Mr. Wang Weidong and Mr. Zhang Zefeng as members - The Corporate Governance Committee is responsible for the Company's corporate governance and other related matters[83](index=83&type=chunk) - Mr. Zhang Jianhong was appointed as Chairman of the Corporate Governance Committee, with Mr. Wang Weidong and Mr. Zhang Zefeng appointed as members[83](index=83&type=chunk) [Risk Management Committee](index=29&type=section&id=Risk%20Management%20Committee) The Company's Risk Management Committee is responsible for risk management and related matters, chaired by Mr. Ding Lianghui, with Mr. Yang Xiaoyong and Mr. Ma Zhizhong as members - The Risk Management Committee is responsible for the Company's risk management and other related matters[84](index=84&type=chunk) - Mr. Ding Lianghui was appointed as Chairman of the Risk Management Committee, with Mr. Yang Xiaoyong and Mr. Ma Zhizhong appointed as members[84](index=84&type=chunk) [Risk Management and Internal Control](index=29&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board is responsible for assessing and determining the Group's risk appetite and ensuring the establishment and maintenance of appropriate risk management and internal control systems, reviewed at least annually - The Board is responsible for assessing and determining the nature and extent of risks the Group is willing to accept in achieving its strategic objectives[85](index=85&type=chunk) - The Board ensures the Group establishes and maintains appropriate and effective risk management and internal control systems, reviewing their effectiveness at least annually[85](index=85&type=chunk) [Compliance with Corporate Governance Code](index=29&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules for the six months ended June 30, 2025, except for code provision A.2.1 - The Company complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules for the six months ended June 30, 2025, except for code provision A.2.1[86](index=86&type=chunk) [Code Provision A.2.1](index=29&type=section&id=Code%20Provision%20A.2.1) The Company deviates from Code Provision A.2.1, with Mr. Zhang Jianhong serving as both Chairman and Chief Executive Officer, an arrangement the Board believes provides strong leadership and efficient business planning - The Company deviates from Code Provision A.2.1, as the roles of Chairman and Chief Executive Officer are combined and held by Mr. Zhang Jianhong[87](index=87&type=chunk) - The Board believes this arrangement provides strong and consistent leadership, more efficient business planning, and does not undermine the balance of power under close Board supervision[87](index=87&type=chunk) [Employee Share Option Scheme](index=30&type=section&id=Employee%20Share%20Option%20Scheme) The Company terminated its employee share option scheme on September 27, 2024, to restructure its remuneration policy; as of June 30, 2025, 16,862,000 shares had been sold for HKD 167,120,000, with 59,845,000 shares remaining unsold - The Company resolved to early terminate the employee share option scheme on September 27, 2024, to restructure its remuneration policy and provide effective incentives[88](index=88&type=chunk) - For the six months ended June 30, 2025, a cumulative total of **16,862,000** shares were sold, amounting to **HKD 167,120,000**[88](index=88&type=chunk) - As of June 30, 2025, **59,845,000** shares under the scheme remained unsold[89](index=89&type=chunk) [Announcement of Interim Results and Publication of Interim Report](index=30&type=section&id=Announcement%20of%20Interim%20Results%20and%20Publication%20of%20Interim%20Report) This interim results announcement has been published on the Company's and HKEX websites, and the interim report will be dispatched to shareholders by the end of September 2025 - This interim results announcement is published on the Company's website www.dongyuechem.com and the Hong Kong Stock Exchange website www.hkexnews.hk[91](index=91&type=chunk) - The interim report will be dispatched to the Company's shareholders by the end of September 2025[91](index=91&type=chunk)

[Company Information and Forward-Looking Statements](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%89%8D%E7%9E%BB%E6%80%A7%E5%A3%B0%E6%98%8E) This section provides company identification and outlines forward-looking statements, highlighting inherent risks and the company's non-obligation to update projections - This announcement contains forward-looking statements, involving known and unknown risks, where actual results may differ materially from expectations, and the company assumes no obligation to update them[1](index=1&type=chunk) - The company name is **Acotec Scientific Holdings Limited**, stock code: **6669**[2](index=2&type=chunk) [Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) This section presents key financial performance indicators for the six months ended June 30, 2025, demonstrating significant profit growth Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Period-on-Period Change | | :--- | :--- | :--- | :--- | | Revenue | 351,204 | 292,339 | 20.1% | | Gross Profit | 260,501 | 217,210 | 19.9% | | Profit Before Tax | 89,493 | 39,939 | 124.1% | | Profit for the Period | 88,577 | 39,957 | 121.7% | [Consolidated Financial Statements](index=2&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section includes the unaudited consolidated statement of profit or loss, statement of profit or loss and other comprehensive income, and consolidated statement of financial position for the six months ended June 30, 2025, reflecting the company's financial performance and position during the reporting period [Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue increased by 20.1% to RMB 351,204 thousand, with profit for the period significantly growing by 121.7% to RMB 88,577 thousand, and basic and diluted earnings per share at RMB 0.29 Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 351,204 | 292,339 | | Cost of Sales | (90,703) | (75,129) | | Gross Profit | 260,501 | 217,210 | | Other Income | 26,989 | 19,335 | | Other Gains/(Losses) – Net | 3,528 | (6,053) | | Selling and Distribution Costs | (55,790) | (49,999) | | Administrative Expenses | (37,803) | (33,786) | | Research and Development Expenses | (102,390) | (100,459) | | Profit from Operations | 95,035 | 46,248 | | Finance Costs | (4,715) | (6,562) | | Share of (Losses)/Profits of Associates | (827) | 253 | | Profit Before Tax | 89,493 | 39,939 | | Income Tax (Expense)/Credit | (916) | 18 | | Profit for the Period | 88,577 | 39,957 | | Basic Earnings Per Share (RMB) | 0.29 | 0.13 | | Diluted Earnings Per Share (RMB) | 0.29 | 0.13 | - Profit for the period increased by **121.7%** to **RMB 88,577 thousand** year-on-year[4](index=4&type=chunk) - Basic and diluted earnings per share were **RMB 0.29**, compared to RMB 0.13 in the prior period[4](index=4&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%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 six months ended June 30, 2025, total comprehensive income was RMB 88,260 thousand, a significant increase from RMB 40,329 thousand in the prior year, primarily driven by the substantial rise in profit for the period, with a minor negative impact from exchange differences Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the Period | 88,577 | 39,957 | | Exchange differences on translation of financial statements of entities whose functional currency is not RMB | (317) | 372 | | Total Comprehensive Income for the Period | 88,260 | 40,329 | - Total comprehensive income for the period was **RMB 88,260 thousand**, representing a **118.9%** year-on-year increase (from RMB 40,329 thousand to RMB 88,260 thousand)[5](index=5&type=chunk) [Consolidated Statement of Financial Position](index=4&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the company's total assets and net assets both increased, with significant growth in intangible assets and financial assets at fair value through profit or loss within non-current assets, and substantial increases in financial assets at amortized cost and time deposits within current assets, reflecting changes in R&D investment and capital management Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property, Plant and Equipment | 153,798 | 149,890 | | Right-of-Use Assets | 165,504 | 177,976 | | Intangible Assets | 76,329 | 47,489 | | Interests in Associates | 19,734 | 20,561 | | Financial Assets at Fair Value Through Profit or Loss | 49,780 | 30,804 | | **Current Assets** | | | | Inventories | 135,079 | 155,989 | | Trade Receivables | 188,098 | 161,099 | | Financial Assets at Amortized Cost | 229,400 | 54,621 | | Time Deposits | 109,279 | 58,181 | | Cash and Cash Equivalents | 654,696 | 751,388 | | **Current Liabilities** | | | | Trade and Other Payables | 125,120 | 93,392 | | Bank Borrowings | 49,000 | 10,000 | | Lease Liabilities | 28,622 | 23,654 | | **Non-Current Liabilities** | | | | Lease Liabilities | 158,513 | 169,262 | | **Net Assets** | 1,443,531 | 1,349,816 | - Intangible assets increased from **RMB 47,489 thousand** as of December 31, 2024, to **RMB 76,329 thousand** as of June 30, 2025[6](index=6&type=chunk) - Financial assets at amortized cost increased from **RMB 54,621 thousand** to **RMB 229,400 thousand**[6](index=6&type=chunk) - Bank borrowings increased from **RMB 10,000 thousand** to **RMB 49,000 thousand**[7](index=7&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) This section elaborates on the basis of financial statement preparation, changes in accounting policies, composition of various incomes and expenses, and details of key balance sheet items, providing supplementary information for understanding the company's financial data [General Information and Basis of Preparation](index=6&type=section&id=%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99%E4%B8%8E%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86) The company was incorporated in the Cayman Islands on December 3, 2020, listed on the Hong Kong Stock Exchange on August 24, 2021, and primarily focuses on developing vascular disease treatment solutions; its interim financial report is prepared in accordance with IAS 34 and reviewed by KPMG - The company was incorporated in the Cayman Islands on **December 3, 2020**, and listed on the Main Board of the Hong Kong Stock Exchange on **August 24, 2021**[8](index=8&type=chunk) - The Group primarily engages in the research and development of vascular disease treatment solutions[8](index=8&type=chunk) - The interim financial report is prepared in accordance with **International Accounting Standard 34** and has been reviewed by **KPMG**[9](index=9&type=chunk)[10](index=10&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%98%E5%8A%A8) During this accounting period, the Group applied the amendments to IAS 21, "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," but these amendments had no material impact on the interim report due to the absence of relevant foreign currency transactions - The Group has applied the amendments to **IAS 21**, but they had no material impact on the interim report due to the absence of foreign currency non-exchangeable transactions[11](index=11&type=chunk) [Revenue and Segment Reporting](index=7&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E6%8A%A5%E5%91%8A) The Group's primary business is the research and development of vascular disease treatment solutions, with total revenue of RMB 351,204 thousand for the reporting period, comprising RMB 175,603 thousand from core products, RMB 172,907 thousand from venous intervention, vascular access, and other products, and RMB 2,694 thousand from service income; the company operates as a single operating segment, with most revenue derived from mainland China Revenue by Product Type | Product Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | – Core Products* | 175,603 | 174,634 | | – Venous Intervention, Vascular Access and Other Products | 172,907 | 117,705 | | – Service Income | 2,694 | – | | **Total Revenue** | **351,204** | **292,339** | Revenue by Customer Type | Customer Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | – Domestic Distributors | 335,855 | 276,660 | | – Domestic Hospitals | 4,315 | 3,746 | | – Overseas Customers | 11,034 | 11,933 | | **Total Revenue** | **351,204** | **292,339** | Revenue from External Customers (by Region) | Region | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Mainland China | 340,170 | 280,406 | | Other Countries and Regions | 11,034 | 11,933 | | **Total Revenue** | **351,204** | **292,339** | - The Group has only a single operating segment, and management reviews overall performance[21](index=21&type=chunk) [Other Income](index=9&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, other income increased to RMB 26,989 thousand, primarily due to a significant rise in government grants, while interest income slightly decreased Other Income (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government Grants | 11,600 | 2,982 | | Interest Income | 14,110 | 15,554 | | Others | 1,279 | 799 | | **Total** | **26,989** | **19,335** | - Government grants increased from **RMB 2,982 thousand** to **RMB 11,600 thousand**, being the primary driver of other income growth[22](index=22&type=chunk) [Other Net Gains/(Losses)](index=9&type=section&id=%E5%85%B6%E4%BB%96%E5%87%80%E6%94%B6%E7%9B%8A%2F%EF%BC%88%E4%BA%8F%E6%8D%9F%EF%BC%89) During the reporting period, other net gains turned from a loss in the prior year to a gain of RMB 3,528 thousand, primarily driven by a significant increase in unrealized and realized net gains from financial assets at fair value through profit or loss, while net foreign exchange losses also increased Other Net Gains/(Losses) (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Foreign Exchange (Losses)/Gains | (5,539) | 285 | | Net Loss on Disposal of Property, Plant and Equipment and Termination of Lease Contracts | (22) | (6,452) | | Unrealized and Realized Net Gains from Financial Assets at Fair Value Through Profit or Loss | 9,998 | 2,476 | | Unrealized and Realized Net Losses from Foreign Currency Forward Contracts | (953) | – | | Others | 44 | (2,362) | | **Total** | **3,528** | **(6,053)** | - Unrealized and realized net gains from financial assets at fair value through profit or loss increased from **RMB 2,476 thousand** to **RMB 9,998 thousand**[24](index=24&type=chunk) - Net foreign exchange (losses) turned from **RMB 285 thousand** to **(RMB 5,539) thousand**[24](index=24&type=chunk) [Profit Before Tax](index=10&type=section&id=%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9) Profit before tax was RMB 89,493 thousand, a significant increase from RMB 39,939 thousand in the prior period, primarily due to reduced finance costs and changes in depreciation, amortization, inventory costs, and R&D expenses Finance Costs (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | 378 | 488 | | Interest Expense on Lease Liabilities | 4,018 | 4,979 | | Others | 319 | 1,095 | | **Total** | **4,715** | **6,562** | Other Items (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Depreciation and Amortization – Property, Plant and Equipment | 12,011 | 9,168 | | Depreciation and Amortization – Right-of-Use Assets | 14,524 | 15,305 | | Depreciation and Amortization – Intangible Assets | 573 | 359 | | Cost of Inventories Recognized as Expense | 77,969 | 64,205 | | Royalty Fees | 12,734 | 10,924 | | Provision for Inventory Write-Down | 14,486 | 1,633 | | Research and Development Expenses | 102,390 | 100,459 | - Finance costs decreased from **RMB 6,562 thousand** to **RMB 4,715 thousand**, primarily due to a reduction in interest expense on lease liabilities[25](index=25&type=chunk) - Research and development expenses (net of capitalized portion) increased from **RMB 100,459 thousand** to **RMB 102,390 thousand**[25](index=25&type=chunk) [Income Tax](index=11&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E) During the reporting period, the company recorded an income tax expense of RMB 916 thousand, compared to an income tax credit of RMB 18 thousand in the prior period, primarily due to the recognition of withholding income tax Income Tax (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current Tax – Withholding Income Tax | (934) | – | | Deferred Tax – Reversal of Temporary Differences | 18 | 18 | | **Total** | **(916)** | **18** | - Income tax turned from a credit of **RMB 18 thousand** in the prior period to an expense of **RMB 916 thousand**, primarily due to withholding income tax[26](index=26&type=chunk) [Earnings Per Share](index=12&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, both basic and diluted earnings per share increased to RMB 0.29, a significant improvement from RMB 0.13 in the prior period, reflecting enhanced profitability - Basic earnings per share increased from **RMB 0.13** to **RMB 0.29**[29](index=29&type=chunk) - Diluted earnings per share increased from **RMB 0.13** to **RMB 0.29**, affected by unvested shares under the restricted share unit scheme[30](index=30&type=chunk)[31](index=31&type=chunk) [Property, Plant and Equipment, Right-of-Use Assets and Intangible Assets](index=12&type=section&id=%E7%89%A9%E4%B8%9A%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87%E3%80%81%E4%BD%BF%E7%94%A8%E6%9D%83%E8%B5%84%E4%BA%A7%E5%8F%8A%E6%97%A0%E5%BD%A2%E8%B5%84%E4%BA%A7) During the reporting period, the company invested RMB 16,780 thousand in property, plant and equipment and recognized additions to right-of-use assets of RMB 3,123 thousand; intangible assets significantly increased due to capitalized development costs of RMB 26,772 thousand for the BTK DCB product's clinical trials in the US - Additions to right-of-use assets amounted to **RMB 3,123 thousand**[32](index=32&type=chunk) - Purchases of property, plant and equipment amounted to **RMB 16,780 thousand**[33](index=33&type=chunk) - The increase in intangible assets primarily refers to capitalized development costs of **RMB 26,772 thousand** for the BTK DCB product's clinical trials in the US[34](index=34&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=13&type=section&id=%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%AE%A1%E5%85%A5%E6%8D%9F%E7%9B%8A%E8%AE%A1%E9%87%8F%E7%9A%84%E9%87%91%E8%9E%8D%E8%B5%84%E4%BA%A7) As of June 30, 2025, non-current financial assets at fair value through profit or loss increased to RMB 49,780 thousand, mainly due to additional contributions to unlisted units of investment funds, and new current structured deposits of RMB 2,000 thousand were added Financial Assets at Fair Value Through Profit or Loss (As of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Non-Current** | | | | – Unlisted Units of Investment Funds | 37,780 | 18,804 | | – Unlisted Equity Securities | 12,000 | 12,000 | | **Current** | | | | – Structured Deposits | 2,000 | – | - Additional contribution of **USD 1,250,000** (equivalent to **RMB 8,978 thousand**) to Trumed Health Innovation Fund LP[36](index=36&type=chunk) - New current structured deposits of **RMB 2,000 thousand** were added[37](index=37&type=chunk) [Trade Receivables](index=14&type=section&id=%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of June 30, 2025, trade receivables increased to RMB 188,098 thousand, an approximate 16.8% increase from December 31, 2024, with a significant rise in receivables aged within 3 months, reflecting sales growth and changes in collection cycles Trade Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables | 188,227 | 161,228 | | Less: Loss Allowance | (129) | (129) | | **Total** | **188,098** | **161,099** | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 Months | 186,828 | 115,052 | | 3 to 6 Months | 1,270 | 45,988 | | 6 to 12 Months | – | 59 | | **Total** | **188,098** | **161,099** | - Trade receivables within 3 months increased from **RMB 115,052 thousand** to **RMB 186,828 thousand**[39](index=39&type=chunk) [Trade and Other Payables](index=15&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other payables increased to RMB 125,120 thousand, an approximate 33.9% increase from December 31, 2024, primarily due to increases in trade payables, accrued R&D expenses, selling and distribution expenses, salaries and bonuses, and VAT and other taxes payable Trade and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Payables | 46,248 | 39,041 | | Accrued Research and Development Expenses | 850 | 327 | | Accrued Selling and Distribution Expenses | 7,215 | 3,015 | | Accrued Salaries and Bonuses | 42,194 | 36,589 | | VAT and Other Taxes Payable | 20,951 | 6,510 | | Other Payables | 6,216 | 6,203 | | **Total** | **125,120** | **93,392** | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 Months | 28,553 | 30,616 | | 3 to 6 Months | 7,513 | 5,345 | | 6 to 12 Months | 8,529 | 1,962 | | Over 12 Months | 1,653 | 1,118 | | **Total** | **46,248** | **39,041** | - VAT and other taxes payable increased from **RMB 6,510 thousand** to **RMB 20,951 thousand**[40](index=40&type=chunk) - Accrued salaries and bonuses increased from **RMB 36,589 thousand** to **RMB 42,194 thousand**[40](index=40&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section comprehensively reviews the company's business development, product pipeline progress, R&D investment, market strategy, internationalization, and collaboration with Boston Scientific during the reporting period, outlining future directions and emphasizing the importance of technological innovation and market expansion for growth [Business Review](index=16&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5) As a leading Chinese medical device technology platform company, Acotec Scientific focuses on endovascular interventional treatment solutions, leveraging its four major technology platforms; during the reporting period, the company achieved significant progress in product R&D, hospital admissions, revenue growth, and internationalization, while continuously strengthening clinical promotion and talent acquisition - The company leverages four major technology platforms: drug-coating, radiofrequency ablation, polymer materials, and aspiration, to provide endovascular interventional treatment solutions[42](index=42&type=chunk) - During the reporting period, three products underwent clinical trials, four submitted registration applications, six received marketing approval, two patents were registered, and four new patent applications were filed[43](index=43&type=chunk) - Both DCB products and venous intervention products achieved admission to over **2,500 hospitals**[43](index=43&type=chunk) - Revenue was approximately **RMB 351.2 million**, representing a year-on-year increase of approximately **20.1%**[43](index=43&type=chunk) - Six products received marketing approval, including DCB for peripheral, coronary, and vertebral arteries[44](index=44&type=chunk) - International business accelerated, with ATK DCB and BTK DCB expected to launch in multiple countries in 2025, and a framework agreement signed with Boston Scientific Group plc[46](index=46&type=chunk) - As of June 30, 2025, the total number of employees was **645**, with **141** in the R&D team, and continuous recruitment of technical personnel in biomedical engineering and other fields[51](index=51&type=chunk) [Products and Pipeline](index=19&type=section&id=%E4%BA%A7%E5%93%81%E5%8F%8A%E7%AE%A1%E7%BA%BF) The company boasts a comprehensive and diversified product pipeline, encompassing over 30 commercialized and in-development products across four major therapeutic areas: vascular surgery, cardiology, nephrology, and neurology; during the reporting period, multiple new products received registration approval, further enriching the product portfolio and expanding market coverage - The product portfolio covers vascular surgery, cardiology, nephrology, and neurology, with over **30 products** in total[47](index=47&type=chunk)[53](index=53&type=chunk) - The vertebral artery paclitaxel-coated balloon dilatation catheter (AcoArt Verbena®) received NMPA approval, with clinical trial results showing significantly superior target lesion restenosis rates compared to the control group[48](index=48&type=chunk) - AcoArt Litos® received FDA IDE approval, and clinical trial centers in the US and Europe have been initiated with patient enrollment underway[48](index=48&type=chunk) [Core Products](index=21&type=section&id=%E6%A0%B8%E5%BF%83%E4%BA%A7%E5%93%81) Core products AcoArt Orchid® & Dhalia® (for SFA/PPA) and AcoArt Tulip® & Litos® (for BTK) are the company's main revenue drivers; AcoArt Orchid® & Dhalia® is China's first peripheral DCB product, AcoArt Tulip® & Litos® received FDA "Breakthrough Device" designation, and both products are actively promoted in overseas markets with BSC collaboration for distribution - AcoArt Orchid® & Dhalia® is the **first peripheral DCB product** launched in China, approved by the NMPA in **2016**[56](index=56&type=chunk) - AcoArt Tulip® & Litos® received **FDA "Breakthrough Device" designation** in **2019** and NMPA marketing approval in **December 2020**[58](index=58&type=chunk) - Both core products are expected to launch in the **UK, Belgium, Ireland, Norway, Denmark, Hungary, Colombia, and Singapore in 2025**, and will be sold by BSC in overseas markets[56](index=56&type=chunk)[58](index=58&type=chunk) [Devices for Vascular Surgery](index=22&type=section&id=%E6%8B%9F%E7%94%A8%E4%BA%8E%E8%A1%80%E7%AE%A1%E5%A4%96%E7%A7%91%E6%89%8B%E6%9C%AF%E7%9A%84%E5%99%A8%E6%A2%B0) Beyond core products, the company has 15 commercialized products and 1 in-development product in vascular surgery, including PTA balloons, aspiration systems, and radiofrequency ablation systems; multiple products have received NMPA and international regulatory approvals, with new product clinical trials and registrations continuously advancing - Possesses **15 commercialized products** and **1 in-development product**, such as AcoArt Iris® & Jasmin®, AcoStream®, and AcoArt Cedar®[61](index=61&type=chunk) - Peripheral support catheter (Vericor®) has received approval from **NMPA, Brazil ANVISA, FDA, and Japan's MHLW**[63](index=63&type=chunk) - Products such as pressure control connecting tube, peripheral scoring balloon dilatation catheter (E-Peridge®), embolectomy device for peripheral thrombus aspiration catheter, and peripheral high-pressure balloon dilatation catheter (Armoni-HP®) received NMPA or Beijing Medical Products Administration approval in **2025**[63](index=63&type=chunk)[64](index=64&type=chunk) - Lower limb sirolimus DCB is undergoing clinical trials, with NMPA approval expected in **2026**[65](index=65&type=chunk) [Devices for Cardiology](index=25&type=section&id=%E6%8B%9F%E7%94%A8%E4%BA%8E%E5%BF%83%E8%87%9F%E7%A7%91%E7%9A%84%E5%99%A8%E6%A2%B0) The company has 9 commercialized products and 1 in-development product in cardiology, including various PTCA balloons, microcatheters, and valvuloplasty balloon dilatation catheters; clinical trial results for both paclitaxel-eluting coronary balloon dilatation catheter (AcoArt Camellia®) and sirolimus-coated coronary balloon dilatation catheter (AcoArt Canna®) have shown good efficacy and safety - Possesses **9 commercialized products** and **1 in-development product**, such as semi-compliant PTCA balloon (Yan), coronary CTO recanalization balloon (RT-Zero®), and coronary microcatheter (Vericor-S2®)[66](index=66&type=chunk) - Clinical trials for the paclitaxel-eluting coronary balloon dilatation catheter (AcoArt Camellia®) showed a significantly lower in-segment diameter stenosis rate at 9 months post-procedure compared to the control group[68](index=68&type=chunk) - Clinical trials for the sirolimus-coated coronary balloon dilatation catheter (AcoArt Canna®) showed no statistically significant difference in target lesion branch vessel diameter stenosis rate at 9 months post-procedure compared to the control group[69](index=69&type=chunk) - The coronary IVL system is an in-development product, with NMPA approval expected in **2027**[69](index=69&type=chunk) [Devices for Nephrology](index=27&type=section&id=%E6%8B%9F%E7%94%A8%E4%BA%8E%E8%82%BE%E8%84%8F%E7%A7%91%E7%9A%84%E5%99%A8%E6%A2%B0) The company has 2 commercialized products in nephrology, namely the paclitaxel-coated high-pressure balloon (ACOART AVENS®) and AV scoring balloon (Peridge®), used for treating arteriovenous fistula stenosis in hemodialysis patients, both of which have received NMPA approval - The indication for AcoArt Orchid® & Dhalia® has been expanded to treat AVF stenosis[70](index=70&type=chunk) - The paclitaxel-coated high-pressure balloon (ACOART AVENS®) received NMPA approval in **April 2023**[71](index=71&type=chunk) - The AV scoring balloon (Peridge®) received NMPA approval in **January 2024**[72](index=72&type=chunk) [Devices for Neurology](index=28&type=section&id=%E6%8B%9F%E7%94%A8%E4%BA%8E%E7%A5%9E%E7%BB%8F%E7%A7%91%E7%9A%84%E5%99%A8%E6%A2%B0) The company has 2 commercialized products in neurology, the intracranial PTA balloon (NEO-Skater®) and the vertebral artery paclitaxel-coated balloon dilatation catheter (AcoArt Verbena®), used for treating intracranial vascular stenosis and vertebral artery ostial stenosis, with clinical trial results for AcoArt Verbena® showing significant efficacy - The intracranial PTA balloon (NEO-Skater®) received NMPA approval in **December 2022**[76](index=76&type=chunk) - The vertebral artery paclitaxel-coated balloon dilatation catheter (AcoArt Verbena®) received NMPA approval in **May 2025**, with clinical trials showing significantly lower target lesion restenosis rates compared to the control group[76](index=76&type=chunk) [Research and Development](index=28&type=section&id=%E7%A0%94%E5%8F%91) The company boasts a strong in-house R&D team primarily employing a self-development model, holding 66 registered patents and 30 pending patent applications; during the reporting period, the R&D team expanded its technical personnel in biomedical engineering and other fields, further strengthening its talent pool - Possesses a strong in-house R&D team, primarily employing a self-development model[75](index=75&type=chunk) - As of June 30, 2025, holds **66 registered patents** and **30 pending patent applications**[75](index=75&type=chunk) - During the reporting period, the R&D team expanded its technical personnel in biomedical engineering, mechanical engineering, materials science and engineering, and mechatronics engineering[77](index=77&type=chunk) [Production](index=29&type=section&id=%E7%94%9F%E4%BA%A7) The company operates production facilities in Beijing and Shenzhen, with total building areas of approximately 30,800 square meters and 8,126 square meters respectively, primarily for manufacturing balloon catheter products, active devices, and in-development products - Leased a new facility in Beijing for the research, development, testing, and production of medical devices[78](index=78&type=chunk) - As of June 30, 2025, the Beijing production facility has a total building area of approximately **30,800 square meters**, and Shenzhen approximately **8,126 square meters**[78](index=78&type=chunk) [Sales and Marketing](index=29&type=section&id=%E9%94%80%E5%94%AE%E5%8F%8A%E8%90%A5%E9%94%80) The company primarily sells its core products and venous intervention, vascular access, and other products in China through its internal sales team, hospital collaborations, and independent distributor network; during the reporting period, core product revenue was approximately RMB 175.6 million (0.6% year-on-year increase), and venous intervention, vascular access, and other product revenue was approximately RMB 172.9 million (46.9% year-on-year increase), with most revenue originating from China - Core product revenue was approximately **RMB 175.6 million**, representing a year-on-year increase of approximately **0.6%**[79](index=79&type=chunk) - Venous intervention, vascular access, and other product revenue was approximately **RMB 172.9 million**, representing a year-on-year increase of approximately **46.9%**[79](index=79&type=chunk) - Most revenue originates from China, with anticipated increases in overseas market sales[79](index=79&type=chunk) - Employs a strategic marketing model through academic marketing, establishing research and clinical collaborations, training relationships, and KOL networks with hospitals[80](index=80&type=chunk) [Intellectual Property](index=30&type=section&id=%E7%9F%A5%E8%AF%86%E4%BA%A7%E6%9D%83) As of June 30, 2025, the company holds 66 registered patents, 180 registered trademarks, and 30 pending patent applications and 15 pending trademark applications, establishing a comprehensive intellectual property portfolio to protect its technology and know-how - As of June 30, 2025, holds **66 registered patents** and **180 registered trademarks**[81](index=81&type=chunk) - Possesses **30 pending patent applications** and **15 pending trademark applications**[81](index=81&type=chunk) [Continuing Connected Transactions](index=30&type=section&id=%E6%8C%81%E7%BB%AD%E5%85%B3%E8%BF%9E%E4%BA%A4%E6%98%93) The company has entered into a master cooperation agreement and a master service agreement with its controlling shareholder, Boston Scientific Group plc (BSG), covering product commercialization, manufacturing services, and product development; agreements have been established for product distribution in overseas and mainland China markets, as well as R&D collaboration, with BSG holding commercialization rights for jointly developed products - Signed a master cooperation agreement and a master service agreement with controlling shareholder **BSG**, governing product commercialization, manufacturing services, and product development collaboration[82](index=82&type=chunk) - Distribution agreements have been established for peripheral DCB products in overseas markets and various products in Hong Kong, Taiwan, and mainland China markets[83](index=83&type=chunk) - Entered into R&D service agreements with BSG, where the Group is responsible for R&D and regulatory approvals, and BSC holds commercialization rights[83](index=83&type=chunk) [Future Outlook and Strategy](index=31&type=section&id=%E6%9C%AA%E6%9D%A5%E5%B1%95%E6%9C%9B%E4%B8%8E%E6%88%98%E7%95%A5) The company aims to become a global leader in interventional solutions for vascular diseases, planning to achieve long-term growth by expanding product offerings, increasing investment in technological innovation, diversifying marketing strategies, and accelerating internationalization; it will continue to promote DCB training and patient education, and expand the coverage of venous interventional products in lower-tier city hospitals - The goal is to become a global leader providing a full suite of interventional solutions for vascular diseases[84](index=84&type=chunk) - Plans to increase investment in technological innovation, enhance R&D capabilities, and expand product offerings to include ancillary devices[84](index=84&type=chunk) - Will continue to increase core product sales, implement DCB training programs, and conduct patient education activities[85](index=85&type=chunk) - Will expand the coverage of venous interventional products in lower-tier city hospitals and provide comprehensive training for physicians[85](index=85&type=chunk) - The framework agreement with BSG will facilitate global sales expansion and penetration rate improvement[85](index=85&type=chunk) [Financial Review](index=32&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B1) This section provides a detailed analysis of the reporting period's financial indicators, including revenue, costs, profits, expenses, capital management, and liquidity, revealing the drivers and trends of the company's financial performance [Revenue](index=32&type=section&id=%E6%94%B6%E7%9B%8A) During the reporting period, revenue was approximately RMB 351.2 million, a 20.1% year-on-year increase, primarily driven by increased sales of venous intervention, vascular access, and other products, which grew by 46.9% to RMB 172.9 million, accounting for 49.2% of total revenue; core products remained the main revenue source, but their proportion decreased - Total revenue was approximately **RMB 351.2 million**, representing a year-on-year increase of **20.1%**[88](index=88&type=chunk) - Sales revenue from venous intervention, vascular access, and other products increased by **46.9%** to **RMB 172.9 million**, accounting for **49.2%** of total revenue (compared to 40.3% in the prior period)[88](index=88&type=chunk) Revenue Details (Six Months Ended June 30) | Revenue Category | 2025 (RMB '000) | % of Total | 2024 (RMB '000) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Core Products | 175,603 | 50.0% | 174,634 | 59.7% | | Venous Intervention, Vascular Access and Other Products | 172,907 | 49.2% | 117,705 | 40.3% | | Service Income | 2,694 | 0.8% | – | – | | **Total** | **351,204** | **100.0%** | **292,339** | **100.0%** | [Cost of Sales](index=33&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales was approximately RMB 90.7 million, a 20.7% year-on-year increase, consistent with the overall sales revenue growth - Cost of sales was approximately **RMB 90.7 million**, representing a year-on-year increase of **20.7%**, consistent with sales revenue growth[90](index=90&type=chunk) [Gross Profit](index=33&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit was approximately RMB 260.5 million, a 19.9% year-on-year increase, primarily driven by increased sales revenue, with the gross profit margin remaining stable at approximately 74.2% - Gross profit was approximately **RMB 260.5 million**, representing a year-on-year increase of **19.9%**[91](index=91&type=chunk) - Gross profit margin was approximately **74.2%**, similar to **74.3%** in the prior period[91](index=91&type=chunk) [Other Income](index=33&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income was approximately RMB 27.0 million, a 39.6% year-on-year increase, primarily due to increased government grants - Other income was approximately **RMB 27.0 million**, representing a year-on-year increase of **39.6%**, primarily due to increased government grants[92](index=92&type=chunk) [Other Gains/(Losses) – Net](index=33&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%EF%BC%8F%EF%BC%88%E4%BA%8F%E6%8D%9F%EF%BC%89%E5%87%80%E9%A2%9D) Other net gains turned from a loss of RMB 6.1 million in the prior period to a gain of RMB 3.5 million, primarily attributable to increased net gains from financial assets at fair value through profit or loss - Other net gains turned from a loss of **RMB 6.1 million** in the prior period to a gain of **RMB 3.5 million**[93](index=93&type=chunk) - Primarily attributable to increased net gains from financial assets at fair value through profit or loss[93](index=93&type=chunk) [Selling and Distribution Costs](index=33&type=section&id=%E9%94%80%E5%94%AE%E5%8F%8A%E5%88%86%E9%94%80%E6%88%90%E6%9C%AC) Selling and distribution costs were approximately RMB 55.8 million, an 11.6% year-on-year increase, primarily due to increased market investment to address intensifying competition - Selling and distribution costs were approximately **RMB 55.8 million**, representing an **11.6%** year-on-year increase, primarily due to increased market investment[94](index=94&type=chunk) [Research and Development Expenses](index=34&type=section&id=%E7%A0%94%E5%8F%91%E5%BC%80%E6%94%AF) R&D costs were approximately RMB 102.4 million, a 1.9% year-on-year increase, primarily due to higher employee costs from increased share-based payments and greater consumption of materials for R&D projects; capitalized development costs for the BTK DCB product's clinical trials in the US amounted to RMB 26.8 million - Research and development costs were approximately **RMB 102.4 million**, representing a year-on-year increase of **1.9%**[95](index=95&type=chunk) - The increase was primarily due to higher employee costs from increased share-based payments and greater consumption of materials[95](index=95&type=chunk) - Capitalized development costs for the BTK DCB product's clinical trials in the US amounted to **RMB 26.8 million**[95](index=95&type=chunk) R&D Expense Composition (Six Months Ended June 30) | Item | 2025 (RMB '000) | % of Total | 2024 (RMB '000) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Employee Benefit Expenses | 42,707 | 41.7% | 41,544 | 41.4% | | Third-Party Contracting and Consulting Expenses | 24,155 | 23.6% | 28,688 | 28.6% | | Depreciation and Amortization | 6,294 | 6.1% | 6,391 | 6.4% | | Consumables | 26,781 | 26.2% | 20,594 | 20.5% | | Others | 2,453 | 2.4% | 3,242 | 3.1% | | **Total** | **102,390** | **100.0%** | **100,459** | **100.0%** | [Administrative Expenses](index=34&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) Administrative expenses were approximately RMB 37.8 million, an 11.9% year-on-year increase, primarily due to consulting fees for renewing the framework agreement with BSG - Administrative expenses were approximately **RMB 37.8 million**, representing an **11.9%** year-on-year increase, primarily due to consulting fees for renewing the framework agreement with BSG[98](index=98&type=chunk) [Finance Costs](index=34&type=section&id=%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC) Finance costs were approximately RMB 4.7 million, a 28.1% year-on-year decrease, primarily due to reduced interest expense on lease liabilities - Finance costs were approximately **RMB 4.7 million**, representing a **28.1%** year-on-year decrease, primarily due to reduced interest expense on lease liabilities[99](index=99&type=chunk) [Income Tax](index=35&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E) During the reporting period, income tax expense was approximately RMB 916 thousand, compared to an income tax credit of RMB 18 thousand in the prior period - Income tax expense was approximately **RMB 916 thousand**, compared to an income tax credit of **RMB 18 thousand** in the prior period[100](index=100&type=chunk) [Capital Management](index=35&type=section&id=%E8%B5%84%E6%9C%AC%E7%AE%A1%E7%90%86) The company's capital management objective is to maintain stability and growth, safeguard normal operations, and maximize shareholder value, achieved by regularly reviewing the capital structure and making timely adjustments, potentially raising capital through bank loans or equity issuance - Capital management objectives are to maintain stability and growth, safeguard normal operations, and maximize shareholder value[101](index=101&type=chunk) - Capital may be raised through bank loans or equity issuance[101](index=101&type=chunk) [Liquidity and Financial Resources](index=35&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) As of June 30, 2025, total available financial resources were approximately RMB 999.7 million, an increase of 15.7% from December 31, 2024, primarily attributable to cash generated from operating and financing activities; the company adopts a conservative treasury policy and expects to generate more operating cash flow through product sales and new product launches - Total available financial resources were approximately **RMB 999.7 million**, representing a **15.7%** increase from December 31, 2024[102](index=102&type=chunk) - The increase is primarily attributable to cash generated from operating and financing activities[102](index=102&type=chunk) - Adopts a conservative treasury policy, with cash primarily denominated in USD, HKD, and RMB[102](index=102&type=chunk) [Borrowings and Gearing Ratio](index=35&type=section&id=%E5%80%9F%E6%AC%BE%E5%8F%8A%E8%B5%84%E6%9C%AC%E8%B4%9F%E5%80%BA%E6%AF%94%E7%8E%87) As of June 30, 2025, total borrowings increased to RMB 49.0 million, and the gearing ratio rose from 23.2% to 26.6%, primarily due to increased bank borrowings - Total borrowings increased to **RMB 49.0 million** (December 31, 2024: RMB 10.0 million)[103](index=103&type=chunk) - The gearing ratio increased from **23.2%** to **26.6%**, primarily due to increased bank borrowings[103](index=103&type=chunk) [Net Current Assets](index=35&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E4%BA%A7%E5%87%80%E5%80%BC) As of June 30, 2025, net current assets were approximately RMB 1,128.0 million, an increase of 4.9% from December 31, 2024 - Net current assets were approximately **RMB 1,128.0 million**, representing a **4.9%** increase from December 31, 2024[104](index=104&type=chunk) [Foreign Exchange Risk](index=36&type=section&id=%E5%A4%96%E6%B1%87%E9%A3%8E%E9%99%A9) The company faces transactional exchange rate risk, with some bank balances, receivables, and payables denominated in foreign currencies; to mitigate this risk, the company entered into foreign exchange forward contracts with a carrying amount of RMB 0.8 million at the end of the reporting period - The company faces transactional exchange rate risk, with some bank balances, receivables, and payables denominated in foreign currencies[105](index=105&type=chunk) - As of June 30, 2025, foreign exchange forward contracts with a carrying amount of **RMB 0.8 million** were entered into, not for hedging purposes[105](index=105&type=chunk) [Material Investments, Significant Acquisitions and Disposals](index=36&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A1%B9) As of June 30, 2025, the company held no material investments and had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - As of June 30, 2025, no material investments were held, nor were there any significant acquisitions or disposals[106](index=106&type=chunk) [Capital Expenditure](index=36&type=section&id=%E8%B5%84%E6%9C%AC%E5%BC%80%E6%94%AF) Total capital expenditure for the reporting period was approximately RMB 37.6 million, primarily for the purchase of plant and equipment and the development of intangible assets - Total capital expenditure was approximately **RMB 37.6 million**, used for purchasing plant and equipment and developing intangible assets[107](index=107&type=chunk) [Pledge of Assets](index=36&type=section&id=%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) As of June 30, 2025, none of the company's assets were pledged - As of June 30, 2025, none of the company's assets were pledged[108](index=108&type=chunk) [Contingent Liabilities](index=36&type=section&id=%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) As of June 30, 2025, the company had no contingent liabilities - As of June 30, 2025, the company had no contingent liabilities[109](index=109&type=chunk) [Employees and Remuneration Policy](index=36&type=section&id=%E9%9B%87%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the company had 645 employees, predominantly based in China, offering competitive remuneration, incentive programs, and continuous education and training to attract and retain talent - As of June 30, 2025, there were **645 employees**, mostly based in China[110](index=110&type=chunk) - Offers competitive remuneration, project and equity incentive plans, and invests in continuous education and training[110](index=110&type=chunk) [Future Investment Plans and Expected Funding](index=36&type=section&id=%E6%9C%AA%E6%9D%A5%E6%8A%95%E8%B5%84%E8%AE%A1%E5%88%92%E5%8F%8A%E9%A2%84%E6%9C%9F%E8%B5%84%E9%87%91) The company will continue to expand in China and global markets, drive product development, and grow through organic development, mergers, and acquisitions; it will utilize various financing channels, including internal funds and bank loans, to support capital expenditures, with sufficient bank credit lines currently available - Will continue to expand in China and global markets, drive product development, and grow through organic development, mergers, and acquisitions[111](index=111&type=chunk) - Will utilize various financing channels, including internal funds and bank loans, to support capital expenditures, with sufficient bank credit lines currently available[111](index=111&type=chunk) [Events After the Reporting Period](index=37&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E9%97%B4%E5%90%8E%E4%BA%8B%E9%A1%B9) No significant events requiring additional disclosure or adjustment occurred after the reporting period - No significant events requiring additional disclosure or adjustment occurred after the reporting period[112](index=112&type=chunk) [Use of Net Proceeds from Listing](index=37&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A1%B9%E5%87%80%E9%A2%9D%E7%94%A8%E9%80%94) The net proceeds from the global offering, approximately RMB 1,294.0 million, have been utilized as disclosed in the prospectus, primarily for core product development, R&D of other products, expanding production capacity, and product portfolio, with the Board finding no material changes to the planned use - Net proceeds from the global offering were approximately **RMB 1,294.0 million**[113](index=113&type=chunk) Use of Net Proceeds from Global Offering (As of June 30, 2025) | Intended Use of Proceeds as per Prospectus | Percentage of Total (%) | Net Proceeds from IPO (RMB '000) | Amount Utilized for Six Months Ended June 30, 2025 (RMB '000) | Amount Utilized as of June 30, 2025 (RMB '000) | Unutilized Amount as of June 30, 2025 (RMB '000) | Expected Timeline for Utilizing Unutilized Amount | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Development and Commercialization of Our Core Products | 32 | 414,067 | 57,156 | 395,087 | 18,980 | 2027 | | Research and Development and Commercialization of Our Remaining 24 Products | 23 | 297,611 | – | 297,611 | – | 2024 | | Expanding Production Capacity and Strengthening Manufacturing Capabilities | 7 | 90,577 | – | 90,577 | – | 2024 | | Expanding Our Product Portfolio through In-house R&D, Collaborations, Mergers, etc. | 24 | 310,550 | 38,092 | 239,518 | 71,032 | 2027 | | Working Capital and Other General Corporate Purposes | 8 | 103,517 | 5,925 | 103,517 | – | 2025 | | Repayment of Loans | 6 | 77,638 | – | 77,638 | – | Not Applicable | | **Total** | **100** | **1,293,960** | **101,173** | **1,203,948** | **90,012** | | - The Board is not aware of any material changes to the planned use of net proceeds[114](index=114&type=chunk) [Interim Dividend](index=37&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[115](index=115&type=chunk) [Corporate Governance and Other Information](index=38&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section outlines the company's corporate governance practices, including the arrangement of Chairman and CEO responsibilities, compliance with the Model Code for securities transactions by directors, audit committee review work, and publication information for interim results [Corporate Governance](index=38&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code; while the Chairman and CEO roles are held by the same person, the Board believes this structure does not undermine the balance of power due to sufficient checks and balances and an experienced Board; the company currently has no dividend policy and will review it periodically in the future - The company complies with the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are held by the same person (Ms. Li Jing)[116](index=116&type=chunk) - The Board believes this structure does not undermine the balance of power due to independent non-executive directors and an experienced Board[117](index=117&type=chunk) - The company currently has no dividend policy and expects to retain future earnings for business operations and expansion[117](index=117&type=chunk) [Model Code for Securities Transactions](index=38&type=section&id=%E8%BF%9B%E8%A1%8C%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A0%87%E5%87%86%E5%AE%88%E5%88%99) The company has adopted the Model Code as its code of conduct for directors' securities transactions, and all directors have confirmed compliance during the reporting period; employees with unpublished inside information are also subject to this code - The company has adopted the Model Code as its code of conduct for directors' securities transactions, and all directors have confirmed compliance[118](index=118&type=chunk) - Employees with unpublished inside information are also subject to the Model Code[119](index=119&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=39&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities or sold any treasury shares, and as of June 30, 2025, the company held no treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities or sold any treasury shares[120](index=120&type=chunk) - As of June 30, 2025, the company held no treasury shares[120](index=120&type=chunk) [Audit Committee](index=39&type=section&id=%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee, in conjunction with the Board, has reviewed the accounting standards and practices adopted by the Group, as well as the interim results for the reporting period - The Audit Committee, in conjunction with the Board, has reviewed the accounting standards and practices adopted by the Group, as well as the interim results for the reporting period[121](index=121&type=chunk) [Independent Review by Auditor](index=39&type=section&id=%E6%A0%B8%E6%95%B0%E5%B8%88%E7%9A%84%E7%8B%AC%E7%AB%8B%E5%AE%A1%E9%98%85) The interim financial report for the six months ended June 30, 2025, is unaudited but has undergone an independent review by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, resulting in a review report without modification - The interim financial report is unaudited but has undergone an independent review by **KPMG** in accordance with **Hong Kong Standard on Review Engagements 2410**[122](index=122&type=chunk) - The review report is without modification[122](index=122&type=chunk) [Publication of Interim Results and Interim Report](index=39&type=section&id=%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This interim results announcement has been published on the HKEX and company websites, and the 2025 interim report containing all required information will be dispatched to shareholders and published in due course - This interim results announcement has been published on the **HKEX website (www.hkexnews.hk)** and the **company website (www.acotec.cn)**[123](index=123&type=chunk) - The **2025 interim report** will be dispatched to shareholders and published in due course[123](index=123&type=chunk) [Definitions and Technical Terms](index=39&type=section&id=%E9%87%8A%E4%B9%89%E5%8F%8A%E6%8A%80%E6%9C%AF%E8%AF%8D%E6%B1%87) This section provides definitions for key terms and technical vocabulary used in the interim results announcement, ensuring readers' accurate understanding of the report content - This section provides definitions for key terms and technical vocabulary used in the report, such as **BSC Group, DCB, LEAD**, etc[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)